As filed with the Securities and Exchange Commission on
September 27, 1994
Securities Act File No. 33-55034
Investment Company Act File No. 811-7364
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. ____ /_/
Post-Effective Amendment No. 7 /X/
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 12 /X/
Lehman Brothers Institutional Funds Group Trust
(Exact Name of Registrant as Specified in Charter)
One Exchange Place
Boston, Massachusetts 02109
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 248-3490
Patricia L. Bickimer, Esq.
The Shareholder Services Group, Inc.
One Exchange Place
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
Copies to:
Burton M. Leibert, Esq.
Willkie Farr & Gallagher
One Citicorp Center
153 East 53rd Street
New York, New York 10022
It is proposed that this filing will become effective
(check appropriate box):
X immediately upon filing pursuant to paragraph (b), or
_____on_________pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a), or
_____on_________pursuant to paragraph (a) of Rule 485
The Registrant has previously filed a declaration of indefinite registration
of its shares pursuant to Rule 24f-2 under the Investment Company Act of 1940,
as amended. Registrant's Rule 24f-2 Notice for the fiscal year ended January
31, 1994 was filed on March 29, 1994
Page 1 of____Pages
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FORM N-1A
CROSS REFERENCE SHEET
PURSUANT TO RULE 495(a)
Part A
Item No. Prospectus Heading
1. Cover Page Cover Page
2. Synopsis Background and Expense
Information; Yields
3. Condensed Financial
Information............................... Financial Highlights
4. General Description of
Registrant Cover Page; Investment
Objective and Policies;
Description of Shares
5. Management of the Fund Management of the Fund;
Dividends
6. Capital Stock and Other
Securities Cover Page; Dividends;
Taxes; Description of
Shares
7. Purchase of Securities Purchase and Redemption
of Shares; Management
of the Fund
8. Redemption or Repurchase Purchase and Redemption
of Shares
9. Legal Proceedings Not Applicable
Part B Heading in Statement
Item No. of Additional Information
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and
History The Trust; Management of
the Fund;
13. Investment Objectives and
Policies Investment Objective and
Policies
14. Management of the Fund Management of the Fund
15. Control Persons and Principal
Holders of Securities Management of the Fund
16. Investment Advisory and
Other Services Management of the Fund
17. Brokerage Allocation Investment Objective and
Policies
18. Capital Stock and Other Additional Description
Securities Concerning Shares;
Dividends
19. Purchase, Redemption and Additional Purchase and
Pricing of Securities Redemption Information
Being Offered
20. Tax Status Additional Information
Concerning Taxes
21. Underwriters Management of the Funds
22. Calculation of Performance Additional Yield
Information
23. Financial Statements Financial Statements
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Short Duration U.S. Government Fund
SUPPLEMENT TO FEBRUARY 21, 1994 PROSPECTUS
The following information supplements the Prospectus of the Short
Duration U.S. Government Fund (Premier Shares) (the "Fund") an investment
portfolio of the Lehman Brothers Institutional Funds Group Trust (the "Trust")
to reflect the financial highlights for the Fund for the fiscal period ended
July 31, 1994.
FINANCIAL HIGHLIGHTS
The following financial highlights for the fiscal period ended July
31, 1994 are derived from the Fund's unaudited Financial Statements which
appear in the Trust's Semi-Annual Report dated July 31, 1994. This
information should be read in conjunction with the financial statements and
notes thereto that appear in the Trust's Semi-Annual Report, which are
incorporated by reference into the Statement of Additional Information, and is
available upon request. Financial information is not provided in connection
with Retail Shares because they were not offered during the Trust's fiscal
period ended July 31, 1994.
Ernst & Young serves as independent auditor to the Trust for its fiscal
year beginning February 1, 1994.
Period
Ended
7/31/94*
(unaudited)
Premier
Shares
Net asset value, beginning of period $ 10.00
Net investment income 0.17
Net realized and unrealized loss on investments (0.05)
Net increase in net assets resulting from investment operations
0.12
Dividends from net investment income (0.17)
Net asset value, end of period $ 9.95
Total return 1.21%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $31,372
Ratio of net investment income to average net assets
4.82%
Ratio of operating expenses to average net assets**
0.09%
Portfolio turnover rate 116%
_______________________
* The Premier Shares commenced operations on March 28, 1994.
** Annualized expense ratio before waiver of fees by the Investment
Adviser and Administrator and expenses reimbursed by the Investment Adviser
for Premier Shares for the period ended July 31, 1994 was 0.68%.
Annualized.
Total return represents aggregate total return for the period
indicated.
Net investment income before waiver of fees by the Investment
Adviser and Administrator and expenses reimbursed by the Investment Adviser
for Premier Shares for the period ended July 31, 1994 was $0.14.
Dated: September 26, 1994
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Short Duration U.S. Government Fund
SUPPLEMENT TO FEBRUARY 21, 1994 PROSPECTUS
The following information supplements the Prospectus of the Short
Duration U.S. Government Fund (Select Shares) (the "Fund") an investment
portfolio of the Lehman Brothers Institutional Funds Group Trust (the "Trust")
to reflect the financial highlights for the Fund for the fiscal period ended
July 31, 1994.
FINANCIAL HIGHLIGHTS
The following financial highlights for the fiscal period ended July
31, 1994 are derived from the Fund's unaudited Financial Statements which
appear in the Trust's Semi-Annual Report dated July 31, 1994. This
information should be read in conjunction with the financial statements and
notes thereto that appear in the Trust's Semi-Annual Report, which are
incorporated by reference into the Statement of Additional Information, and is
available upon request. Financial information is not provided in connection
with Retail Shares because they were not offered during the Trust's fiscal
period ended July 31, 1994.
Ernst & Young serves as independent auditor to the Trust for its fiscal
year beginning February 1, 1994.
Period
Ended
7/31/94*
(unaudited)
Select
Shares
Net asset value, beginning of period $ 10.00
Net investment income 0.16
Net realized and unrealized loss on investments (0.05)
Net increase in net assets resulting from investment operations
0.11
Dividends from net investment income (0.16)
Net asset value, end of period $ 9.95
Total return 0.92%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 1,902
Ratio of net investment income to average net assets
4.69%
Ratio of operating expenses to average net assets**
0.22%
Portfolio turnover rate 116%
_______________________
* The Select Shares commenced operations on March 28, 1994.
** Annualized expense ratio before waiver of fees by the Investment
Adviser and Administrator and expenses reimbursed by the Investment Adviser
for Select Shares for the period ended July 31, 1994 was 0.81%.
Annualized.
Total return represents aggregate total return for the period
indicated.
Net investment income before waiver of fees by the Investment
Adviser and Administrator and expenses reimbursed by the Investment Adviser
for Select Shares for the period ended July 31, 1994 was $0.14.
Dated: September 26, 1994
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Short Duration U.S. Government Fund
SUPPLEMENT TO PROSPECTUS
The following information supplements the Prospectus of the Short
Duration U.S. Government Fund (Retail Shares) (the "Fund") an investment
portfolio of the Lehman Brothers Institutional Funds Group Trust (the "Trust")
in order to comply with the Trust's undertaking to provide certain financial
information for the Fund within four to six months of the Fund's commencement.
FINANCIAL HIGHLIGHTS
Financial information is not provided in connection with Retail
Shares of the Fund because they were not offered during the Trust's fiscal
period ended July 31, 1994. Financial information in connection with Premier
Shares and Select Shares of the Fund is included in its prospectus and the
Trust's Semi-Annual Report dated July 31, 1994, which are available upon
request.
Ernst & Young serves as independent auditor to the Trust for its fiscal
year beginning February 1, 1994.
Dated: September 26, 1994
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Floating Rate U.S. Government Fund
SUPPLEMENT TO FEBRUARY 21, 1994 PROSPECTUS
The following information supplements the Prospectus of the Floating
Rate U.S. Government Fund (Premier Shares) (the "Fund") an investment
portfolio of the Lehman Brothers Institutional Funds Group Trust (the "Trust")
to reflect the financial highlights for the Fund for the fiscal period ended
July 31, 1994.
FINANCIAL HIGHLIGHTS
The following financial highlights for the fiscal period ended July
31, 1994 are derived from the Fund's unaudited Financial Statements which
appear in the Trust's Semi-Annual Report dated July 31, 1994. This
information should be read in conjunction with the financial statements and
notes thereto that appear in the Trust's Semi-Annual Report, which are
incorporated by reference into the Statement of Additional Information, and is
available upon request. Financial information is not provided in connection
with Select Shares and Retail Shares because they were not offered during the
Trust's fiscal period ended July 31, 1994.
Ernst & Young serves as independent auditor to the Trust for its fiscal
year beginning February 1, 1994.
Period
Ended
7/31/94*
(unaudited)
Premier
Shares
Net asset value, beginning of period $ 10.00
Net investment income 0.17
Net realized and unrealized loss on investments (0.07)
Net increase in net assets resulting from investment operations
0.10
Dividends from net investment income (0.16)
Net asset value, end of period $ 9.94
Total return 1.03%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $48,773
Ratio of net investment income to average net assets
5.00%
Ratio of operating expenses to average net assets**
0.09%
Portfolio turnover rate 166%
_______________________
* The Premier Shares commenced operations on March 28, 1994.
** Annualized expense ratio before waiver of fees by the Investment
Adviser and Administrator and expenses reimbursed by the Investment Adviser
for Premier Shares for the period ended July 31, 1994 was 0.70%.
Annualized.
Total return represents aggregate total return for the period
indicated.
Net investment income before waiver of fees by the Investment
Adviser and Administrator and expenses reimbursed by the Investment Adviser
for Premier Shares for the period ended July 31, 1994 was $0.15.
Dated: September 26, 1994
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Floating Rate U.S. Government Fund
SUPPLEMENT TO FEBRUARY 21, 1994 PROSPECTUS
The following information supplements the Prospectus of the Floating
Rate U.S. Government Fund (Select Shares) (the "Fund") an investment portfolio
of the Lehman Brothers Institutional Funds Group Trust (the "Trust") in order
to comply with the Trust's undertaking to provide certain financial
information for the Fund within four to six months of the Fund's commencement.
FINANCIAL HIGHLIGHTS
Financial information is not provided in connection with Select
Shares of the Fund because no Select Shares were sold to the public during the
Trust's fiscal period ended July 31, 1994. Financial information in
connection with Premier Shares of the Fund is included in its prospectus and
the Trust's Semi-Annual Report dated July 31, 1994, which are available upon
request. Financial information is not provided in connection with Retail
Shares of the Fund because they were not offered during the Trust's fiscal
period ended July 31, 1994.
Ernst & Young serves as independent auditor to the Trust for its fiscal
year beginning February 1, 1994.
Dated: September 26, 1994
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Floating Rate U.S. Government Fund
SUPPLEMENT TO PROSPECTUS
The following information supplements the Prospectus of the Floating
Rate U.S. Government Fund (Retail Shares) (the "Fund") an investment portfolio
of the Lehman Brothers Institutional Funds Group Trust (the "Trust") in order
to comply with the Trust's undertaking to provide certain financial
information for the Fund within four to six months of the Fund's commencement.
FINANCIAL HIGHLIGHTS
Financial information is not provided in connection with Retail
Shares of the Fund because they were not offered during the Trust's fiscal
period ended July 31, 1994. Financial information in connection with Premier
Shares of the Fund is included in its prospectus and the Trust's Semi-Annual
Report dated July 31, 1994, which are available upon request. Financial
information is not provided in connection with Select Shares of the Fund
because no Select Shares were sold to the public during the Trust's fiscal
period ended July 31, 1994.
Ernst & Young serves as independent auditor to the Trust for its fiscal
year beginning February 1, 1994.
Dated: September 26, 1994
Lehman Brothers Institutional Funds Group Trust
The purpose of this filing is to fulfill the undertaking with respect to the
Floating Rate U.S. Government Fund and the Short Duration U.S. Government Fund
(the "Funds") contained in Post-Effective Amendment No. 3 (effective February
19, 1994) to file a post-effective amendment which includes financial
statements that are not required to be audited within four to six months from
the commencement of operations of the Funds (March 28, 1994). The
Prospectuses (dated February 21, 1994) and Statement of Additional Information
(dated February 21, 1994 except for the Financial Statements incorporated by
reference therein) for the Funds are incorporated herein by reference to the
Registrant's filing of definitive copies of the Prospectuses and Statements of
Additional Information pursuant to Rule 497(c). The Prospectuses and
Statements of Additional Information dated May 31, 1994 for the Prime Money
Market Fund, Prime Value Money Market Fund, Government Obligations Money
Market Fund, 100% Government Obligations Money Market Fund, Treasury
Instruments Money Market Fund II, 100% Treasury-Instruments Money Market Fund,
Municipal Money Market Fund, Tax-Free Money Market Fund, New York Municipal
Money Market Fund and California Municipal Money Market Fund and the
Prospectus and Statement of Additional Information for the Short Duration
Municipal Fund (which were included in Post-Effective Amendment No. 6 to the
Trust's Registration Statement) are not included in this filing.
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FORM N-1A
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
(1) Included in Part A:
Financial Highlights as of July 31, 1994 with respect to the Floating Rate
U.S. Government Fund
and the Short Duration U.S. Government Fund are included herein.
(2) Included in Part B:
Financial Statements for the period ended July 31, 1994 for the
Prime Money Market Fund, Prime Value Money Market Fund, Government
Obligations Money Market Fund 100% Government Money market Fund,
Treasury Instruments Money Market Fund, 100% Treasury Instruments Money
Market Fund, Tax-Free Money Market Fund, Municipal Money Market Fund,
California Municipal Money Market Fund, Floating Rate U.S. Government
Fund and Floating Rate U.S. Government Fund are incorporated in Part B
by reference to the filing herein.
Financial Statements for the fiscal year ended January 31, 1994
for the Prime Money Market Fund, Prime Value Money Market Fund,
Government Obligations Money Market Fund, 100% Government Obligations
Money Market Fund, Treasury Instruments Money Market Fund, Treasury
Instruments Money Market Fund II, 100% Treasury Instruments Money Market
Fund, Tax-Free Money Market Fund, Municipal Money Market Fund and
California Municipal Money Market Fund are incorporated in Part B by
reference to the Annual Report dated January 31, 1994.
(b) Exhibits:
(1) (a) Declaration of Trust of Registrant dated November 16, 1992
is incorporated herein by reference to Exhibit (1) to the
Registrant's Initial Registration Statement on Form N-1A filed
with the Securities and Exchange Commission on December 28, 1992.
(b) Amendment No. 1 to Declaration of Trust of Registrant
is incorporated herein by reference to Exhibit (1)(b) to Pre-
Effective Amendment No. 3 to the Registrant's Registration
Statement on Form N-1A filed with the Commission on January 19, 1993.
(c) Designation and Establishment of Series is incorporated
herein by reference to Exhibit (1)(c) to Pre-Effective Amendment
No. 5 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on February 5, 1993.
(d) Form of Certificate pertaining to Classification
of Shares dated February 18, 1994 is
incorporated herein by reference to Exhibit (1)(d)
to Post-Effective Amendment No. 4 to the Registrant's
Registration Statement on Form
N-1A filed with the Commission on February 18,
1994.
(e) Certificate pertaining to Designation and Establishment of
Series and Classification of Shared with respect to the Short Duration
Municipal Fund will be filed by Amendment.
(2) (a) By-Laws of Registrant dated November 16, 1992 are
incorporated herein by reference to Exhibit (2) to the Registrant's
Initial Registration Statement on Form N-1A filed with the Securities
and Exchange Commission on December 28, 1992.
(b) Amended By-Laws of Registrant are incorporated herein by
reference to Exhibit (2)(b) to Pre- Effective Amendment No. 3 to the
Registrant's Registration Statement on Form N-1A filed with the
Commission on January 19, 1993.
(c) Amended and Restated By-Laws of Registrant are incorporated
herein by reference to Exhibit (2)(c) to Pre-Effective Amendment
No. 5 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on February 5, 1993.
(3) Not Applicable
(4) Specimen Share Certificate is incorporated herein by
reference to Exhibit (4) to Pre- Effective Amendment No. 5 to the
Registrant's Registration Statement on Form N-1A filed with the
Commission on February 5, 1993.
(5) (a) Investment Advisory Agreement between Registrant and
Lehman Brothers Global Asset Management Inc. ("LBGAM"), relating to
each investment portfolio (collectively, the "Funds") of Registrant
is incorporated herein by reference to Exhibit (5)(a) to Post-
Effective Amendment No. 1 to the Registrant's Registration Statement
on Form N-1A filed with the Commission on June 21, 1993.
(b) Investment Advisory Agreement between Registrant and
Lehman Brothers Global Asset Management Inc. ("LBGAM"), relating to the
Floating Rate U.S. Government Fund is incorporated herein by
reference to Exhibit (5)(b) to Post-Effective Amendment No. 4 to the
Registrant's Registration Statement on Form N-1A filed with
the Commission on February 18, 1994.
(c) Investment Advisory Agreement between Registrant and
Lehman Brothers Global Asset Management Inc. ("LBGAM"), relating to the
Short Duration U.S. Government Fund is incorporated herein by
reference to Exhibit (5)(c) to Post-Effective Amendment No. 4 to the
Registrant's Registration Statement on Form N-1A filed with
the Commission on February 18, 1994.
(d) Investment Advisory Agreement between Registrant and Lehman
Brothers Global Asset Management Inc. relating to the Short Duration
Municipal Fund will be filed by Amendment.
(6) (a) Distribution Agreement between Registrant and Lehman
Brothers, a division of Shearson Lehman Brothers Inc. is incorporated
herein by reference to Exhibit (6)(a) to Post-Effective Amendment
No. 1 to the Registrant's Registration Statement on Form N-1A filed
with the Commission on June 21, 1993.
(b) Distribution Agreement between Registrant and Funds
Distributor Inc. is incorporated herein by reference to Exhibit
(6)(b) to Post-Effective Amendment No. 1 to the Registrant's
Registration Statement on Form N-1A filed with the Commission
on June 21, 1993.
(7) Not Applicable.
(8) (a) Custody Agreement between Registrant and Boston Safe
Deposit and Trust Company is incorporated herein by reference to
Exhibit (8) to Post- Effective Amendment No. 1 to the Registrant's
Registration Statement on Form N-1A filed with the Commission on
June 21, 1993.
(b) Form of Amendment No. 1 to the Custody Agreement dated November
10, 1993 between Registrant and Boston Safe Deposit and Trust Company is
incorporated herein by reference to Exhibit 8(b) of Post-Effective
Amendment No. 6 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on August 8, 1994.
(c) Form of Amendment No. 2 to the Custody Agreement dated January
27, 1994 between Registrant and Boston Safe Deposit and Trust Company is
incorporated herein by reference to Exhibit 8(c) of Post-Effective
Amendment No. 6 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on August 8, 1994.
(9)(a) Administration Agreement between Registrant and The Boston
Company Advisors, Inc. is incorporated herein by reference to Exhibit
(9)(a) to Post-Effective Amendment No. 1 to the Registrant's
Registration Statement on Form N-1A filed with the Commission on June
21, 1993.
(b) Assignment of Administration Agreement dated April 21, 1994
between Registrant and The Boston Company Advisors, Inc. to The
Shareholder Services Group, Inc. is incorporated by reference to Exhibit
9(b) to Post-Effective Amendment No. 5 to the Registrant Registration
Statement on Form N-1A filed with the Commission on June 1,1994.
(c) Form of Transfer Agency Agreement and Registrar Agreement dated
February 1, 1993 between Registrant and The Shareholder Services Group,
Inc. is incorporated herein by reference to Exhibit (9)(c) to Pre-
Effective Amendment No. 5 to the Registrant's Registration Statement on
Form N-1A filed with the Commission on February 5, 1993.
(d) Form of Amendment No. 1 to the Transfer Agency Agreement dated
November 10, 1993 between Registrant and The Shareholder Services Group,
Inc. is incorporated herein by reference to Exhibit 9(d) of Post-
Effective Amendment No. 6 to the Registrant's Registration Statement on
Form N-1A filed with the Commission on August 8, 1994.
(e) Form of Amendment No. 2 to the Transfer Agency Agreement dated
January 27, 1994 between the Registrant and The Shareholder Services
Group, Inc. is incorporated herein by reference to Exhibit 9(e) of Post-
Effective Amendment No. 6 to the Registrant's Registration Statement on
Form N-1A filed with the Commission on August 8, 1994.
(10)(a) Opinion and Consent of Counsel with respect to the Short
Duration Municipal Fund will be filed by amendment
(b) Opinion and Consent of Massachusetts Counsel with respect to
the Short Duration Municipal Fund will be filed by amendment.
(11)(a) Consent of Independent Accountants with respect to the Short
Duration Municipal Fund will be filed by amendment.
(b) Power of Attorney is included herein.
(c) Consent of Counsel with respect to the Short Duration Municipal
Fund will be filed by amendment.
(12) Not Applicable.
(13)(a) Purchase Agreement between Registrant and Shearson Lehman
Brothers Inc. is incorporated herein by reference to Exhibit (13) to
Post-Effective Amendment No. 1 to the Registrant's Registration
Statement on Form N-1A filed with the Commission on June 21, 1993.
(b) Purchase Agreement dated March 2, 1994 between Registrant and
Lehman Brothers Inc., relating to the Floating Rate U.S. Government Fund
is incorporated by reference to exhibit 13(b) to Post-Effective
Amendment No. 5 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on June 1, 1994.
(c) Purchase Agreement dated March 2, 1994 between Registrant and
Lehman Brothers, Inc., relating to the Short Duration U.S. Government
Fund is incorporated by reference to exhibit 13(c) to Post-Effective
Amendment No. 5 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on June 1, 1994.
(d) Purchase Agreement dated , 1994 between Registrant
and Lehman Brothers, Inc. relating to the Short Duration Municipal
Fund will be filed by Amendment.
(14) Not Applicable.
(15) (a) Form of Shareholder Services Plan pursuant to Rule 12b-1
is incorporated herein by reference to Exhibit (15)(a) to Pre-
Effective Amendment No. 5 to the Registrant's Registration Statement on
Form N- 1A filed with the Commission on February 5, 1993.
(b) Form of Shareholder Services Plan pursuant to Rule 12b-1
for Class D Shares is incorporated herein by reference to Exhibit
(15)(b) to Post- Effective Amendment No. 1 to the Registrant's
Registration Statement on Form N-1A filed with the Commission
on June 21, 1993.
(c) Form of Shareholder Servicing Agreement for Class B
Shares is incorporated herein by reference to Exhibit (15)(b) to
Pre-Effective Amendment No. 5 to the Registrant's Registration
Statement on Form N-1A filed with the Commission on February 5,
1993.
(d) Form of Shareholder Servicing Agreement for Class C
Shares is incorporated herein by reference to Exhibit (15)(c) to
Pre-Effective Amendment No. 5 to the Registrant's Registration
Statement on Form N-1A filed with the Commission on February 5,
1993.
(e) Form of Shareholder Servicing Agreement for Class D
Shares is incorporated herein by reference to Exhibit (15)(e) to
Post-Effective Amendment No. 1 to the Registrant's Registration
Statement on Form N-1A filed with the Commission on June 21,
1993.
(f) Form of Plan of Distribution for Premier Shares, Select
Shares and Retail Shares for the Floating Rate U.S. Government
Fund is incorporated herein by reference to Exhibit (15)(f) to Post-
Effective Amendment No.3 to the Registrant's Registration
Statement on Form N-1A filed with the Commission on December 21,
1993.*
(g) Form of Plan of Distribution for Premier Shares, Select Shares and
Retail Shares for the Short Duration U.S. Government Fund is
incorporated herein by reference to Exhibit (15)(g) to Post-Effective
Amendment No.3 to the Registrant's Registration Statement on Form N-1A
filed with the Commission on December 21, 1993.*
(h) Form of Shareholder Servicing Agreement for Select Shares of the
non-money market portfolios is incorporated herein by reference to
Exhibit (15)(h) to Post-Effective Amendment No. 4 to the Registrant's
Registration Statement on Form N-1A filed with the Commission on
February 18, 1994.*
(i) Form of Plan of Distribution for Premier, Select and Retail
Shares for the Short Duration Municipal Fund will be filed by
Amendment.
(j) Form of Plan of Distribution for Retail Shares for the Short
Duration U.S. Government Fund is included herein.
*As of March 1994, Class A Shares are referred to as "Premier
Shares" and Class B Shares are referred to as "Select Shares"with
respect to the Short Duration U.S. Government Fund and the
Floating Rate U.S. Government Fund
(16)(a) Not Applicable.
Item 25. Persons Controlled by or under Common Control with
Registrant
Registrant is controlled by its Board of Trustees.
Item 26. Number of Holders of Securities
The following information is as of September 19, 1994:
Title of
Class
Number of
Record
Holders
(Class A
Shares
Number of
Record
Holders
(Class B
Shares)
Number of
Record
Holders
(Class C
Shares)
Number of
Record
Holders
(Class E
Shares)
Prime Money
Market Fund
255
8
2
1
Prime Value
Money Market
Fund
134
3
1
1
Government
Obligations
Money Market
Fund
18
3
1
1
Cash
Management
Fund
4
1
1
1
Treasury
Instruments
Money Market
Fund II
26
11
1
1
100% Treasury
Instruments
Money Market
Fund
13
1
1
1
Tax-Free
Money Market
Fund
13
1
1
1
Municipal
Money Market
Fund
33
1
1
1
California
Municipal
Money Market
Fund
5
1
1
1
Premier
Shares
Select
Shares
Floating Rate
U.S. Government
Fund
3
1
Short Duration
U.S. Government
Fund
3
2
Item 27. Indemnification
Under Section 4.3 of Registrant's Declaration of Trust, as
amended, any past or present Trustee or officer of Registrant (including
persons who serve at Registrant's request as directors, officers or
trustees of another organization in which Registrant has any interest as
a shareholder, creditor or otherwise [hereinafter referred to as a
"Covered Person"]) is indemnified to the fullest extent permitted by law
against liability and all expenses reasonably incurred by him in
connection with any action, suit or proceeding to which he may be a
party or otherwise involved by reason of his being or having been a
Covered Person. This provision does not authorize indemnification when
it is determined, in the manner specified in the Declaration of Trust,
that such Covered Person has not acted in good faith in the reasonable
belief that his actions were in or not opposed to the best interests of
Registrant. Moreover, this provision does not authorize indemnification
when it is determined, in the manner specified in the Declaration of
Trust, that such Covered Person would otherwise be liable to Registrant
or its shareholders by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of his duties. Expenses may be paid to
Registrant in advance of the final disposition of any action, suit or
proceedings upon receipt of an undertaking by such Covered Person to
repay such expenses to Registrant in the event that it is ultimately
determined that indemnification of such expenses is not authorized under
the Declaration of Trust and the Covered Person either provides security
for such undertaking or insures Registrant against losses from such
advances or the disinterested Trustees or independent legal counsel
determines, in the manner specified in the Declaration of Trust, that
there is reason to believe the Covered Person will be found to be
entitled to indemnification.
Insofar as indemnification for liability arising under the
Securities Act of 1933, as amended (the "Securities Act"), may be
permitted to Trustees, officers and controlling persons of Registrant
pursuant to the foregoing provisions, or otherwise, Registrant has been
advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the
payment by Registrant of expenses incurred or paid by a Trustee, officer
or controlling person of Registrant in the successful defense of any
action, suit or proceeding) is asserted by such Trustee, officer or
controlling person in connection with the securities being registered,
Registrant will, unless in the opinion of its counsel the matter has
been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by
the final adjudication of such issue.
Item 28. Business and Other Connections of Investment Adviser
(a) Investment Adviser
Lehman Brothers Global Asset Management Inc. ("LBGAM"), which
serves as investment adviser to the Registrant's portfolios, is a wholly
owned subsidiary of Lehman Brothers Holdings Inc. ("Holdings"). All of
the issued and outstanding common stock of Holdings (representing 92% of
the voting stock) is held by American Express Company. LBGAM is an
investment adviser registered under the Investment Advisers Act of 1940
(the "Advisers Act") and serves as investment counsel for individuals
with substantial capital, executors, trustees and institutions. It also
serves as investment adviser, sub-investment adviser, administrator or
sub-administrator to numerous investment companies.
The list required by this Item 28 of officers and directors of
LBGAM, together with information as to any other business profession,
vocation or employment of a substantial nature engaged in by such
officers and directors during the past two years, is incorporated by
reference to Schedules A and D of Form ADV filed by LBGAM pursuant to
the Advisers Act (SEC File No. 801-42006).
Item 29. Principal Underwriters
(a) Lehman Brothers, acts as distributor for the shares of
Registrant's portfolios. Lehman Brothers currently acts as distributor
for Lehman Brothers Funds, Inc., The USA High Yield Fund N.V., The Latin
American Bond Fund N.V., Mexican Short-Term Investment Portfolio N.V.,
Garzarelli Sector Analysis Portfolio N.V., The Mexican Appreciation Fund
N.V., The Mexico Premium Income Portfolio N.V., Offshore Portfolios,
International Currency Portfolios, Lehman Brothers Series I Mortgage-
Related Securities Portfolio N.V., TBC Enhanced Tactical Asset
Allocation Portfolio N.V., U.S. Tactical Asset Allocation Portfolio
N.V., Short-Term World Income Portfolio (Cayman), TBC Portfolio of
Fixed-Income Securities, U.S. Tactical Asset Allocation Portfolio
(Cayman), Offshore Daily Dividend Fund N.V. and the Global Advisors
Portfolio N.V. and various series of unit investment trusts.
(b) Lehman Brothers is a wholly-owned subsidiary of Lehman
Brothers Holdings Inc. The information required by this Item 29 with
respect to each director, officer and partner of Lehman Brothers is
incorporated by reference to Schedule A of Form BD filed by Lehman
Brothers pursuant to the Securities Exchange Act of 1934 (SEC File No.
8-12324).
(c) Not Applicable.
Item 30. Location of Accounts and Records
(1) Lehman Brothers Institutional Funds Group Trust
260 Franklin Street
Boston, Massachusetts 02110
(2) Lehman Brothers Global Asset Management Inc.
American Express Tower
World Financial Center
New York, New York 10285
(3) The Shareholder Services Group, Inc.
One Exchange Place
Boston, Massachusetts 02109
(4) Boston Safe Deposit and Trust Company
One Boston Place
Boston, Massachusetts 02108
Item 31. Management Services
Not Applicable
Item 32. Undertakings
Registrant hereby undertakes as follows:
(1) Registrant hereby undertakes to call a meeting of its
shareholders for the purpose of voting upon the question of removal of a
trustee or trustees of Registrant when requested in writing to do so by
the holders of at least 10% of Registrant's outstanding shares.
Registrant undertakes further, in connection with the meeting, to comply
with the provisions of Section 16(c) of the Investment Company Act of
1940, as amended, relating to communications with the shareholders of
certain common-law trusts.
(2) Registrant hereby undertakes to file a Post-Effective
Amendment, using financial statements which may not be certified, for
the Short Duration Municipal Fund within four to six months from the
effective date of Post-Effective Amendment No. 6.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as
amended, and the Investment Company Act of 1940, as amended, Registrant
certifies that this Post-Effective Amendment No. 7 to the Registration
Statement meets the requirements for effectiveness pursuant to Rule
485(b) of the Securities Act of 1933, as amended, and the Registrant has
duly caused this Post-Effective Amendment No. 7 to the Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Boston, Commonwealth of Massachusetts on the
26th day of September, 1994.
LEHMAN BROTHERS
INSTITUTIONAL
FUNDS GROUP TRUST
By: /s/ Peter Meenan
Peter Meenan
President
Pursuant to the requirements of the Securities Act of 1933,
this Post-Effective Amendment No. 7 to the Registration Statement of
Lehman Brothers Institutional Funds Group Trust has been signed below by
the following persons in the capacities and on the dates indicated.
Signature
Title
Date
*
Clinton J. Kendrick
Chairman of the
Board and Trustee
September 26, 1994
*
Trustee
September 26, 1994
Charles F. Barber
*
Trustee
September 26, 1994
Burt N. Dorsett
*
Trustee
September 26, 1994
Edward J. Kaier
*
Trustee
September 26, 1994
S. Donald Wiley
*
Michael C. Kardok
Treasurer (Chief
Financial and
Accounting Officer)
September 26, 1994
*By: /s/ Peter Meenan
Peter Meenan
Attorney-In-Fact
lehman\institut\filings\pea#6.doc\4
C-11
lehman/institut/filings/pea#6.doc
Exhibit 11(b)
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
POWER OF ATTORNEY
The undersigned, Clinton J. Kendrick, whose signature
appears below, does hereby constitute and appoint Peter
Meenan his true and lawful attorney and agent to execute in
his name, place and stead, in his capacity as trustee or
officer, or both, of Lehman Brothers Institutional Funds
Group Trust (the "Company"), the Registration Statement of
the Company on Form N-1A, any amendments thereto, and all
instruments necessary or incidental in connection therewith,
and to file the same with the Securities and Exchange
Commission; and said attorney shall have full power of
substitution and re-substitution; and said attorney shall
have full power and authority to do and perform in the name
and on the behalf of the undersigned trustee and/or officer
of the Company, in any and all capacities, every act
whatsoever requisite or necessary to be done in the
premises, as fully and to all intents and purposes as the
undersigned trustee and/or officer of the Company might or
could do in person, said acts of said attorney being hereby
ratified and approved.
/s/Clinton J. Kendrick
Clinton J. Kendrick
Dated: August 3, 1994
Exhibit 15(i)
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
DISTRIBUTION PLAN
This Distribution Plan (the "Plan") is adopted in accordance with Rule
12b-1 (the " Rule") under the Investment Company Act of 1940, as amended (the
"1940 Act"), by Lehman Brothers Institutional Funds Group Trust, a business
trust organized under the laws of the Commonwealth of Massachusetts (the
"Trust"), with respect to those classes (each a Class) of its investment
portfolios (each, a "Fund") listed in Appendix A, as amended from time to
time, subject to the following terms and conditions:
Section 1. Annual Fee.
(a) Distribution Fee. Each Fund will pay to the distributor of its
shares, Lehman Brothers Incorporated, a corporation organized under the laws
of the State of Delaware ( the "Distributor"), on behalf of each Class of such
Fund, a distribution fee in connection with the distribution of shares of each
such Class under the Plan at the annual rate of up to 0.50% of the average
daily net assets of such Fund attributable to each such Class (the
"Distribution Fee").
(b) Payment of Fees. The Distribution Fee will be calculated daily and
paid monthly by each Fund with respect to each Class at the annual rates
indicated above.
Section 2. Expenses Covered by the Plan.
The annual Distribution Fee paid by a Fund to the Distributor under
Section 1 of the Plan may be used by the Distributor to cover advertising,
marketing and distribution expenses intended to result in the sale of the
Fund's shares, including without limitation, payments to Distributor's
financial consultants or introducing brokers.
Section 3. Approval of Shareholders.
The Plan will not take effect with respect to a particular Class of a
Fund, and no fee will be payable in accordance with Section 1 of the Plan,
until the Plan has been approved by a vote of at least a majority of the
outstanding voting securities of such Class.
Section 4. Approval of Trustees.
Neither the Plan nor any related agreements will take effect with
respect to a Class of a Fund until approved by a majority vote of both (a) the
full Board of Trustees of the Trust and (b) those Trustees who are not
interested persons of the Trust and who have no direct or indirect financial
interest in the operation of the Plan or in any agreements related to it (the
"Independent Trustees"), cast in person at a meeting called for the purpose of
voting on the Plan and the related agreements.
Section 5. Continuance of the Plan.
The Plan will continue in effect from year to year with respect to each
Class of a Fund, so long as its continuance is specifically approved annually
by vote of the Trust's Board of Trustees in the manner described in Section 4
above.
Section 6. Termination
The Plan may be terminated with respect to a Class of a Fund at any
time, without the payment of any penalty, by the vote of majority of the
outstanding voting securities (as so defined) of such Class of such Fund or by
a vote of a majority of the Independent Trustees, in any such event on sixty
days' written notice to the Distributor. The Plan will remain in effect with
respect to a particular Class of a Fund even if the Plan has been terminated
in accordance with this Section 6 with respect to any other Class of the Fund
or of any other Fund.
Section 7. Amendments
The Plan may not be amended with respect to a Class of a Fund to
increase materially the amounts of the fees described in Section 1 above,
unless the amendment is approved by a vote of the holders of at least a
majority of the outstanding voting securities of such Class of such Fund. No
material amendment to the Plan may be made unless approved by the Trust's
Board of Trustees in the manner described in Section 4 above.
Section 8. Selection of Certain Trustees.
While the Plan is in effect, the selection and nomination of the Trust's
Trustees who are not interested persons of the Trust will be committed to the
discretion of the Trustees then in office who are not interested persons of
the Trust.
Section 9. Written Reports
In each year during which the Plan remains in effect, any person
authorized to direct the disposition of monies paid or payable by a Fund with
respect to a Class pursuant to the Plan or any related agreement will prepare
and furnish to the Trust's Board of Trustees and the Board will review, at
least quarterly, written reports, complying with the requirements of the Rule,
which set out the amounts expended under the Plan and the purposes for which
those expenditures were made.
Section 10. Preservation of Materials.
The Trust will preserve copies of the Plan, any agreement relating to
the Plan and any report made pursuant to Section 9 above, for a period of not
less than six years (the first two years in an easily accessible place) from
the date of the Plan, agreement or report.
Section 11. Meanings of Certain Terms.
As used in the Plan, the terms "interested person" and "majority of the
outstanding voting securities" will be deemed to have the same meaning that
those terms have under the 1940 Act and the rules and regulations under the
1940 Act, subject to any exemption that may be granted to the Trust under the
1940 Act by the Securities and Exchange Commission.
Section 12. Filing of Declaration of Trust.
The Trust represents that a copy of its Declaration of Trust as amended
from time to time (the "Declaration of Trust"), is on file with the Secretary
of the Commonwealth of Massachusetts.
Section 13. Limitation of Liability.
The obligations of the Trust under this Plan will not be binding upon
any of the Trustees of the Trust, shareholders of the Funds, nominees,
officers, employees or agents, whether past, present or future, of the Trust,
individually, but are binding only upon the assets and property of the Funds,
as provided in the Declaration of Trust. The execution and delivery of this
Plan have been authorized by the Trustees of the Trust, and signed by an
authorized officer of the Trust, acting as such, and neither the authorization
by the Trustees nor the execution and delivery by the officer will be deemed
to have been made by any of them individually or to impose any liability on
any of them personally, but will bind only the property of the Funds as
provided in the Declaration of Trust. No Fund or Class will be liable for any
claims against any other Fund or Class.
Section 14. Dates.
The Plan has been executed by the Trust with respect to each Fund as of
September ___, 1994 and will become effective with respect to each Class of a
Fund upon the date such Fund first commences its investment operations.
Section 15. Governing Law.
This Plan shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York.
LEHMAN BROTHERS INSTITUTIONAL
FUNDS GROUP TRUST
By:
Name:
Title:
APPENDIX A
Name of Fund Name of Class
Short Duration Municipal Fund Retail Shares
Short Duration U.S. Government Fund Retail Shares
California Municipal Money Market Fund Retail Shares
Global Clearing Class
New York Municipal Money Market Fund Retail Shares
Global Clearing Class
Government Obligations Money Market Fund Retail Shares
Global Clearing Class
Exhibit 15(j)
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
DISTRIBUTION AGREEMENT
_______ ___, 1994
Lehman Brothers Inc.
3 World Financial Center
New York, New York 10285
Ladies and Gentlemen:
This is to confirm that, in consideration of the agreements
hereinafter contained, the undersigned, Lehman Brothers
Institutional Funds Group Trust (the "Trust"), a business
Trust organized under the laws of the Commonwealth of
Massachusetts, has agreed that Lehman Brothers Inc. ("Lehman
Brothers") will be, for the period of this Agreement, a
distributor of those classes of shares of beneficial
interest (the "Shares") of its investment portfolios
(individually, a "Fund" and collectively, the "Funds")
listed in Appendix A, as amended from time to time, subject
to the following terms and conditions:
1. Services as Distributor.
1.1 Lehman Brothers will act as agent for the distribution
of Shares covered by the Trust's registration statement,
prospectuses and statements of additional information then
in effect (the "Registration Statement") under the
Securities Act of 1933, as amended (the "1933 Act"), and the
Investment Company Act of 1940, as amended (the "1940 Act").
1.2 Lehman Brothers agrees to use its best efforts to
solicit orders for the sale of Shares at the public offering
price, as determined in accordance with the Registration
Statement, and will undertake such advertising and promotion
as it believes is reasonable in connection with such
solicitation. Lehman Brothers shall not be obligated to
sell any certain number of Shares.
1.3 All activities by Lehman Brothers as distributor of the
Shares will comply with all applicable laws, rules and
regulations, including, without limitation, all rules and
regulations made or adopted by the Securities and Exchange
Commission (the "SEC") or by any securities association
registered under the Securities Exchange Act of 1934, as
amended.
1.4 Lehman Brothers will provide one or more persons during
normal business hours to respond to telephone questions
concerning the Shares.
1.5 Lehman Brothers will transmit any orders received by it
for purchase or redemption of Shares to The Shareholder
Services Group, Inc. ("TSSG"), the Trust's transfer agent,
or any successor to TSSG of which the Trust has notified
Lehman Brothers in writing.
1.6 Whenever in their judgment such action is warranted for
any reason, including, without limitation, market, economic
or political conditions, the Trust's officers may decline to
accept any orders for, or make any sales of, the Shares
until such time as those officers deem it advisable to
accept such orders and to make such sales.
1.7 Lehman Brothers will act only on its own behalf as
principal should it choose to enter into selling agreements
with selected dealers or others.
2. Duties of the Trust.
2.1 The Trust agrees at its own expense to execute any and
all documents, to furnish any and all information and to
take any other actions that may be reasonably necessary in
connection with the qualification of the Shares for sale in
those states that Lehman Brothers may designate.
2.2 The Trust shall furnish from time to time, for use in
connection with the sale of the Shares, such information
reports with respect to the Funds and the Shares as Lehman
Brothers may reasonably request, all of which shall be
signed by one or more of the Trust's duly authorized
officers; and the Trust warrants that the statements
contained in any such reports, when so signed by the Trust's
officers, will be true and correct. The Trust will also
furnish Lehman Brothers upon request with (a) annual audits
of the books and accounts of the Funds made by independent
certified public accountants regularly retained by the
Trust; (b) semi-annual unaudited financial statements
pertaining to each Fund; (c) quarterly earnings statements
prepared by the Trust with respect to each Fund; (d) a
monthly itemized list of the securities in the portfolio of
each Fund; (e) monthly balance sheets with respect to each
Fund as soon as practicable after the end of each month; and
(f) from time to time such additional information regarding
the financial condition of each Fund as Lehman Brothers may
reasonably request.
3. Representations and Warranties.
The Trust represents to Lehman Brothers that all
registration statements, prospectuses and statements of
additional information filed by the Trust with the SEC under
the 1933 Act and the 1940 Act with respect to the Shares
have been carefully prepared in conformity with the
requirements of the 1933 Act, the 1940 Act and the rules and
regulations of the SEC thereunder. As used in this
Agreement, the terms "registration statement," "prospectus"
and "statement of additional information" mean any
registration statement, prospectus and statement of
additional information filed by the Trust with the SEC and
any amendments and supplements to the registration
statement, prospectus and statement of additional
information that at any time has been filed with the SEC.
The Trust represents and warrants to Lehman Brothers that
any registration statement, prospectus and statement of
additional information, when the registration statement
becomes effective, will include all statements required to
be contained in it in conformity with the 1933 Act, the 1940
Act and the rules and regulations of the SEC; that all
statements of fact contained in any registration statement,
prospectus or statement of additional information will be
true and correct when the registration statement becomes
effective; and that the registration statement, the
prospectus and the statement of additional information, when
the registration statement becomes effective, will include
no untrue statement of a material fact and will not omit to
state a material fact required to be stated therein or
necessary to make the statements therein not misleading to a
purchaser of the Shares. Lehman Brothers may, but is not be
obligated to, propose from time to time such amendment or
amendments to any registration statement and such supplement
or supplements to any prospectus or statement of additional
information as, in the light of future developments, may, in
the opinion of Lehman Brothers' counsel, be necessary or
advisable. If the Trust does not propose such amendment or
amendments and/or supplement or supplements within fifteen
days after receipt by the Trust of a written request from
Lehman Brothers to do so, Lehman Brothers may, at its
option, terminate this Agreement. The Trust will not file
any amendment to any registration statement or supplement to
any prospectus or statement of additional information
without giving Lehman Brothers reasonable advance notice
except that nothing contained in this Agreement will in any
way limit the Trust's right to file at any time such
amendments to any registration statement and/or supplements
to any prospectus or statement of additional information, of
whatever character, as the Trust may deem advisable, such
right being in all respects absolute and unconditional.
4. Indemnification.
4.1 The Trust authorizes Lehman Brothers and any dealers
with whom Lehman Brothers has entered into dealer agreements
to use any prospectus or statement of additional information
furnished by the Trust from time to time, in connection with
the sale of the Shares. The Trust agrees to indemnify,
defend and hold Lehman Brothers, its several officers and
directors, and any person who controls Lehman Brothers
within the meaning of Section 15 of the 1933 Act, free and
harmless from and against any and all claims, demands,
liabilities and expenses (including the cost of
investigating or defending those claims, demands or
liabilities and any related counsel fees) that Lehman
Brothers, its officers and directors, or any such
controlling person, may incur under the 1933 Act, the 1940
Act or common law or otherwise, arising out of or on the
basis of any untrue statement, or alleged untrue statement,
of a material fact contained in any registration statement,
any prospectus or any statement of additional information or
arising out of or based upon any omission, or alleged
omission, to state a material fact required to be stated in
any registration statement, any prospectus or any statement
of additional information or necessary to make the
statements in any of them not misleading, except that the
Trust's agreement to indemnify Lehman Brothers, its officers
or directors, and any such controlling person will not be
deemed to cover any claims, demands, liabilities or expenses
arising out of or based upon any statements or
representations made by Lehman Brothers or its
representatives or agents other than those statements and
representations as are contained in any registration
statement, prospectus or statement of additional information
and in the financial and other statements as are furnished
to Lehman Brothers pursuant to paragraph 2.2 of this
Agreement; and except that the Trust's agreement to
indemnify Lehman Brothers and the Trust's representations
and warranties set out in paragraph 3 of this Agreement will
not be deemed to cover any liability to the Funds or their
shareholders to which Lehman Brothers would otherwise be
subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of its duties, or by reason of
Lehman Brothers' reckless disregard of its obligations and
duties under this Agreement. The Trust's agreement to
indemnify Lehman Brothers, its officers and directors, and
any such controlling person, as described above, is
expressly conditioned upon the Trust's being notified of any
action brought against Lehman Brothers, its officers or
directors, or any such controlling person, the notification
to be given by letter, via facsimile or by telegram
addressed to the Trust at its principal office in New York,
New York and sent to the Trust by the person against whom
the action is brought, within ten days after the summons or
other first legal process has been served. The failure so to
notify the Trust of any such action will not relieve the
Trust from any liability that the Trust may have to the
person against whom the action is brought by reason of any
such untrue, or alleged untrue, statement or omission, or
alleged omission, otherwise than on account of the Trust's
indemnity agreement contained in this paragraph 4.1. The
Trust will be entitled to assume the defense of any suit
brought to enforce any such claim, demand or liability, but,
in such case, the defense will be conducted by counsel of
good standing chosen by the Trust and approved by Lehman
Brothers. In the event the Trust elects to assume the
defense of any such suit and retains counsel of good
standing approved by Lehman Brothers, the defendant or
defendants in the suit will bear the fees and expenses of
any additional counsel retained by any of them; but if the
Trust does not elect to assume the defense of any such suit,
or if Lehman Brothers does not approve of counsel chosen by
the Trust, the Trust will reimburse Lehman Brothers, its
officers and directors, or the controlling person or persons
named as defendant or defendants in the suit, for the fees
and expenses of any counsel retained by Lehman Brothers or
them. The Trust's indemnification agreement contained in
this paragraph 4.1 and the Trust's representations and
warranties in this Agreement will remain operative and in
full force and effect regardless of any investigation made
by or on behalf of Lehman Brothers, its officers and
directors, or any controlling person, and will survive the
delivery of any of the Shares. This agreement of indemnity
will inure exclusively to Lehman Brothers' benefit, to the
benefit of its several officers and directors, and their
respective estates, and to the benefit of the controlling
persons and their successors. The Trust agrees to notify
Lehman Brothers promptly of the commencement of any
litigation or proceedings against the Trust or any of its
officers or directors in connection with the issuance and
sale of any of the Shares.
4.2 Lehman Brothers agrees to indemnify, defend and hold
the Trust, its several officers and directors, and any
person who controls the Trust within the meaning of Section
15 of the 1933 Act, free and harmless from and against any
and all claims, demands, liabilities and expenses (including
the costs of investigating or defending those claims,
demands or liabilities and any related counsel) that the
Trust, its officers or directors or any such controlling
person may incur under the 1933 Act, the 1940 Act or common
law or otherwise, but only to the extent that the liability
or expense incurred by the Trust, its officers or directors
or such controlling person resulting from the claims or
demands arise out of or are based upon (a) any unauthorized
sales literature, advertisements, information, statements or
representations or (b) any untrue, or alleged untrue,
statement of a material fact contained in information
furnished in writing by Lehman Brothers to the Trust and
used in the answers to any of the items of the registration
statement or in the corresponding statements made in the
prospectus or statement of additional information, or arise
out of or are based upon any omission, or alleged omission,
to state a material fact in connection with the information
furnished in writing by Lehman Brothers to the Trust and
required to be stated in such answers or necessary to make
such information not misleading. Lehman Brothers' agreement
to indemnify the Trust, its officers and directors, and any
such controlling person, as described above, is expressly
conditioned upon Lehman Brothers' being notified of any
action brought against the Trust, its officers or directors,
or any such controlling person, the notification to be given
by letter via facsimile or telegram addressed to Lehman
Brothers at its principal office in New York, New York, and
sent to Lehman Brothers by the person against whom such
action is brought, within ten days after the summons or
other first legal process has been served. Lehman Brothers
will have the right to control the defense of such action,
with counsel of its own choosing, satisfactory to the Trust,
if the action is based solely upon such alleged misstatement
or omission on Lehman Brothers' part, and in any other event
the Trust, its officers or directors or such controlling
person each will have the right to participate in the
defense or preparation of the defense of any such action.
The failure so to notify Lehman Brothers of any such action
will not relieve Lehman Brothers from any liability that
Lehman Brothers may have to the Trust, its officers or
directors, or to such controlling person by reason of the
untrue, or alleged untrue, statement or omission, or alleged
omission, otherwise than on account of Lehman Brothers'
indemnity agreement contained in this paragraph 4.2. Lehman
Brothers agrees to notify the Trust promptly of the
commencement of any litigation or proceedings against Lehman
Brothers or any of its officers or directors in connection
with the issuance and sale of any of the Trust's shares.
5. Effectiveness of Registration.
None of the Shares may be offered by either Lehman Brothers
or the Trust under any of the provisions of this Agreement
and no orders for the purchase or sale of the Shares under
this Agreement may be accepted by the Trust if and so long
as the effectiveness of the registration statement then in
effect or any necessary amendments to the registration
statement is suspended under any of the provisions of the
1933 Act or if and so long as a current prospectus as
required by Section 5(b)(2) of the 1933 Act is not on file
with the SEC; except that nothing contained in this
paragraph 5 will in any way restrict or have an application
to or bearing upon the Trust's obligation to repurchase
Shares from any shareholder in accordance with the
provisions of the prospectuses or statement of additional
information relating to the Trust's Declaration of Trust
dated November 16, 1992, as amended from time to time (the
"Declaration of Trust").
6. Notice to Lehman Brothers.
The Trust agrees to advise Lehman Brothers immediately in
writing:
(a) of any request by the SEC for amendments to the
registration statement, prospectus or statement of
additional information then in effect or for additional
information;
(b) in the event of the issuance by the SEC of any stop
order suspending the effectiveness of the registration
statement, prospectus or statement of additional information
then in effect or the initiation of any proceeding for that
purpose;
(c) of the happening of any event that makes untrue any
statement of a material fact made in the registration
statement, prospectus or statement of additional information
then in effect or that requires the making of a change in
the registration statement, prospectus or statement of
additional information in order to make the statements in
those documents not misleading; and
(d) of all actions of the SEC with respect to any amendment
to any registration statement, prospectus or statement of
additional information that may from time to time be filed
with the SEC.
7. Term of the Agreement.
7.1 This Agreement will become effective with respect to
the Shares as of the date first written above and will
continue for an initial two-year term and will continue
thereafter so long as such continuance is specifically
approved at least annually by the Trust's Board of Trustees
(all Trustees voting) and by a majority of the Trustees of
the Trust who are not "interested persons" (as defined in
the 1940 Act) of the Trust and have no direct or indirect
financial interest in the operation of this Agreement or in
any agreements related hereto by vote cast in person at a
meeting called for the purpose of voting on the approval.
7.2 This Agreement is terminable with respect to a Fund,
without penalty, on 60 days' written notice, by a majority
of the Trustees of the Trust who are not "interested
persons" of the Trust and have no direct or indirect
financial interest in the operation of this Agreement or in
any agreements related hereto or by vote of holders of a
majority of the Fund's outstanding voting securities, or
upon 60 days' written notice, by Lehman Brothers.
7.3 This Agreement will terminate automatically in the
event of its "assignment" (as defined in the 1940 Act).
8. Miscellaneous.
The Trust recognizes that directors, officers and employees
of Lehman Brothers, may from time to time serve as
directors, trustees, officers and employees of corporations
and business trusts (including other investment companies)
and that such other corporations and trusts may include the
name "Lehman Brothers" or any variant, including initials,
as part of their names, and that Lehman Brothers or its
affiliates may enter into distribution or other agreements
with such other corporations and trusts. If Lehman Brothers
ceases to act as a distributor of the Trust's shares, the
Trust agrees that, at Lehman Brothers' request, the Trust's
license to use the words "Lehman Brothers" will terminate
and that the Trust will take all necessary action to change
the name of the Trust to a name not including the words
"Lehman Brothers" or any other name referring to Lehman
Brothers.
9. Representation by the Trust.
The Trust represents that a copy of its Declaration of Trust
is on file with the Secretary of the Commonwealth of
Massachusetts.
10. Limitation of Liability.
The Trust and Lehman Brothers agree that the obligations of
the Trust under this Agreement will not be binding upon any
of the Trustees of the Trust, shareholders of the Funds,
nominees, officers, employees or agents, whether past,
present or future, of the Trust, individually, but are
binding only upon the assets and property of the Funds, as
provided in the Declaration of Trust. The execution and
delivery of this Agreement have been authorized by the
Trustees of the Trust, and signed by an authorized officer
of the Trust, acting as such, and neither the authorization
by the Trustees nor the execution and delivery by the
officer will be deemed to have been made by any of them
individually or to impose any liability on any of them or
any shareholder of the Trust personally, but will bind only
the property of the Trust as provided in its Declaration of
Trust. No Fund will be liable for any claims against any
other Fund.
11. Governing Law.
This agreement shall be governed by, and construed and
interpreted in accordance with, the law of the State of New
York.
If the foregoing is in accordance with your understanding,
kindly indicate your acceptance of this Agreement by signing
and returning to us the enclosed copy of this Agreement.
Very truly yours,
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
By:_____________________________
Name:
Title:
Accepted:
LEHMAN BROTHERS INC.
By:________________________________
Name:
Title:
APPENDIX A
Name of Fund Name of Class
Short Duration Municipal Fund Retail Shares
Short Duration U.S. Government Fund Retail Shares
California Municipal Money Retail Shares
Market Fund Global Clearing Class
New York Municipal Money Retail Shares
Market Fund Global Clearing Class
Government Obligations Money Retail Shares
Market Fund Global Clearing Class
<PAGE>
S E M I - A N N U A L R E P O R T
--------------------------------------------------------
- ---------------
J U L Y 3 1, 1 9 9 4
LEHMAN BROTHERS
INSTITUTIONAL FUNDS
GROUP TRUST
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
President's Letter.......................1
Portfolio of Investments:
Prime Money Market Fund.....................3
Prime Value Money Market Fund.....6
Government Obligations Money Market
Fund........................9
100% Government Obligations Money Market Fund...........10
Treasury Instruments MOney market Fund 11
100% Treasury Instruments Money Market
Fund................. 12
Tax-Free Money Market Fund.............13
Municipal Money Market
Fund.....................................17
California Municipal Money Market
Fund........................26
Floating Rate U.S. Government Fund.........29
Short Duration U.S. Government
Fund..............................30
Statements of Assets and Liabilities.......32
Statements of Operations......................38
Statements of Changes in Net Assets............ 40
Financial Highlights:
Prime Money Market Fun............. 46
Prime Value Money Market Fund................. 47
Government Obligations Money Market Fund...... 48
100% Government Obligations Money Market Fund..49
Treasury Instruments Money Market Fund II....... 50
100% Treasury Instruments Money Market
Fund........................... 51
Tax-Free Money Market Fund................. 52
Municipal Money Market Fund.................. 53
California Municipal Money Market
Fund................................ 54
Floating Rate U.S. Government Fund.......... 55
Short Duration U.S. Government
Fund................................... 56
Notes to Financial Statements........... 57
</TABLE>
<PAGE>
Dear Shareholders:
We are pleased to present the Semi-Annual Report for
the Lehman Brothers
Institutional Funds Group Trust (the "Trust") for the six-
month period ending
July 31, 1994. This Report includes the portfolio holdings
for each of the Money
Market and Fixed Income Funds that comprise the Trust,
namely:
MONEY MARKET FUNDS
- PRIME MONEY MARKET FUNDS
Prime Money Market Fund
Prime Value Money Market Fund
- GOVERNMENT MONEY MARKET FUNDS
Government Obligations Money Market Fund
100% Government Obligations Money Market Fund (now
"Cash
Management Fund")
Treasury Instruments Money Market Fund II
100% Treasury Instruments Money Market Fund
- TAX-EXEMPT MONEY MARKET FUNDS
Tax-Free Money Market Fund
Municipal Money Market Fund
California Municipal Money Market Fund
FIXED INCOME FUNDS
- GOVERNMENT FIXED INCOME FUNDS
Floating Rate U.S. Government Fund
Short Duration U.S. Government Fund
RESPONDING TO A CHANGING RATE ENVIRONMENT
The new fiscal year for the Lehman Brothers
Institutional Funds began in
February amidst indications of strong economic growth and
concerns over rising
inflation. In an effort to moderate the growth rate and
dampen inflationary
fears, the Federal Reserve Board tightened its monetary
policy by increasing the
federal funds rate five times during the past six months.
Indeed, as this letter
is being written, the Federal Reserve Board announced
its fifth increase,
another 50 basis point tightening, bringing aggregate
federal funds increases
for the year to 175 basis points. Considering that interest
rates had generally
declined over the past five years, the speed and magnitude
of this upward move
caused investors to alter strategies and corporate issuers
to scale back new
issuance activity.
In managing the Funds in this environment, our
primary focus has been on
positioning the portfolios to anticipate and to take
advantage of the higher
short-term interest rates, while, with respect to the
Money Market Funds,
continuing to maintain a stable $1.00 per share net asset
value. Fortunately, we
have met this challenge successfully as several of the
Money Market Funds
continue to be among the performance leaders in their
respective categories as
reported in IBC/Donoghue's MONEY FUND REPORT.
We take special pride in the fact that the Money Market
Funds achieved these
results without using high risk derivative instruments
which have so captured
the attention of the financial press and securities
regulators. We have
maintained an investment strategy of not using the high risk
derivatives because
we have viewed them as being beyond the spirit of Rule 2a-7,
the SEC regulation
governing a money market fund's ability to maintain a stable
net asset value.
We are also pleased to report that the Lehman
Brothers Floating Rate U.S.
Government Fund and the Lehman Brothers Short Duration U.S.
Government Fund have
produced solid investment results since they were
introduced at the end of
March. The total return for the three-month period ended
July 31, 1994, for
Floating Rate U.S. Government Fund (Premier Class) and
Short Duration U.S.
Government Fund (Premier and Select Class) was 1.03%,
1.21% and 0.92%,
respectively. While we acknowledge that these
performance records
1
<PAGE>
cover a period of only a few months (and are not
necessarily indicative of
future performance), as with our Money Market Funds,
these results were
accomplished without using high risk mortgage-backed
derivative instruments.
COMBINING INVESTORS' NEEDS WITH OUR EXPERTISE -- SHORT
DURATION MUNICIPAL FUND
Matching our resources with our investors' needs
is central to our
philosophy. Since many clients have expressed an
interest in tax-exempt
investment products that seek to provide higher after-tax
yields than fixed-
price money markets funds and with minimal net asset value
fluctuation, we are
pleased to announce that the Short Duration Municipal Fund
will be available in
October, 1994. The Fund will be managed by our talented
team of portfolio
managers and supported by Lehman Brothers' Fixed Income
Research which placed
first in INSTITUTIONAL INVESTOR magazine's annual "All-
American Fixed Income
Research Team" poll for four years from 1991 to 1994.
When the Fund is
effective, your Investor Representative can provide you
with more complete
information and a Prospectus which will contain management
fees and expenses.
AN ENHANCEMENT TO OUR SERVICE DELIVERY . . . EXPRESSNET
(LEX-SM-)
In our continuing effort to deliver the highest
quality service to you, we
enthusiastically announce the introduction of our new
Windows-TM--based order
entry system, EXPRESSNet (LEX-SM-), that allows you to trade
directly on your PC
with the Lehman Brothers Institutional Funds. With LEX-
SM-, shareholders can
also access account information easily, customize
reports and retrieve
historical yield and dividend information. Your Investor
Representative can
provide you with the information you will need to take
advantage of LEX-SM- and
trade directly on-line.
* * * * * * * *
All of us at Lehman Brothers trust that we will be able
to continue to earn
your support and loyalty by providing you with superior
investment products and
services . . . with a focus on quality in the prudent way
we manage your assets
and in the reliable way we deliver our services. Thank you
for investing in the
Lehman Brothers Institutional Funds.
Sincerely,
Clinton J. Kendrick Peter
Meenan
CHAIRMAN OF THE BOARD OF TRUSTEES PRESIDENT
2
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
- ----------- -
- ---------- ----------- -------------
<C> <S>
<C> <C> <C>
BANK/CORPORATE NOTES -- 39.6%
$50,000,000 AT & T Capital Corporation, Variable Rate...
4.750% 11/1/94 $ 49,996,216
25,000,000 AT & T Capital Corporation, Variable Rate...
4.750 11/15/94 24,992,020
40,000,000 AT & T Capital Corporation, Variable Rate...
4.750 1/26/95 40,000,000
50,000,000 Bear Stearns Companies Inc., Variable
Rate.......................................
5.000 10/5/94 50,000,000
7,000,000 Bear Stearns Companies Inc., Variable
Rate.......................................
4.800 10/21/94 7,000,000
25,000,000 Bear Stearns Companies Inc., Variable
Rate.......................................
4.675 12/16/94 25,000,000
10,000,000 Bear Stearns Companies Inc., Variable
Rate.......................................
4.928 1/10/95 10,000,000
20,000,000 Bear Stearns Companies Inc., Variable
Rate.......................................
4.900 1/11/95 20,000,000
17,005,000 Commercial Credit Group Inc.................
6.250 1/15/95 17,194,529
75,000,000 FCC National Bank, Delaware, Variable
Rate.......................................
5.080 1/11/95 75,000,000
9,400,000 Ford Motor Credit Company...................
8.750 1/15/95 9,607,635
50,000,000 General Electric Capital Corporation........
3.550 1/19/95 49,984,774
100,000,000 General Electric Capital Corporation,
Variable Rate..............................
4.688 10/21/94 100,000,000
15,000,000 Goldman Sachs Group, L.P., Variable
Rate**.....................................
4.820 10/12/94 15,000,000
22,000,000 Goldman Sachs Group, L.P., Variable
Rate**.....................................
4.890 12/21/94 22,000,000
6,000,000 Goldman Sachs Group, L.P., Variable
Rate**.....................................
4.820 1/18/95 6,000,000
12,000,000 Household Finance Corporation, Variable
Rate.......................................
4.800 11/1/94 11,998,457
45,000,000 Household Finance Corporation, Variable
Rate.......................................
4.800 1/13/95 45,000,000
30,000,000 Morgan Stanley Group Inc., Variable Rate....
4.562 11/8/94 30,000,000
50,000,000 Northern Trust Corporation..................
3.625 12/30/94 49,987,099
10,000,000 Old Kent Bank & Trust, Variable Rate........
4.650 8/16/94 9,998,895
25,000,000 Paccar Financial Corporation, Variable
Rate.......................................
4.750 11/15/94 24,992,020
50,000,000 PHH Corporation, Inc., Variable Rate........
4.800 1/4/95 49,997,862
50,000,000 SMM Trust 1993-D, Variable Rate **..........
4.912 10/28/94 50,000,000
33,000,000 SMM Trust 1993-F, Variable Rate **..........
4.925 11/15/94 33,000,000
30,000,000 Xerox Credit Corporation, Variable Rate.....
3.280 8/1/94 30,000,000
- -------------
TOTAL BANK/CORPORATE NOTES (COST
$856,749,507)........................ 856,749,507
- -------------
COMMERCIAL PAPER -- 10.9%
50,000,000 Bankers Trust New York Corporation..........
3.542 10/3/94 49,698,126
35,000,000 C.I.T. Group Holdings, Inc..................
4.278 8/12/94 34,954,335
27,276,000 Exxon Imperial U.S. Inc.....................
4.340 8/17/94 27,223,509
35,000,000 Miles, Inc..................................
4.414 8/23/94 34,905,889
35,000,000 PHH Corporation, Inc........................
4.393 8/23/94 34,906,317
15,000,000 Xerox Credit Corporation....................
4.361 8/18/94 14,969,187
34,295,000 Xerox Credit Corporation....................
4.393 8/22/94 34,207,376
4,520,000 Younkers Funding Corporation................
4.437 8/29/94 4,504,461
- -------------
TOTAL COMMERCIAL PAPER (COST
$235,369,200)............................ 235,369,200
- -------------
U.S. GOVERNMENT AGENCY NOTES -- 5.5%
35,000,000 Federal Farm Credit Bank, Variable Rate.....
4.450 9/7/94 34,996,199
45,000,000 Federal National Mortgage Association,
Variable Rate..............................
4.650 12/20/95 45,000,000
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
- ----------- -
- ---------- ----------- -------------
<C> <S>
<C> <C> <C>
U.S. GOVERNMENT AGENCY NOTES (CONTINUED)
$40,000,000 Federal National Mortgage Association,
Variable Rate..............................
4.850% 10/7/96 $ 40,000,000
- -------------
TOTAL U.S. GOVERNMENT AGENCY NOTES (COST
$119,996,199)................ 119,996,199
- -------------
TAXABLE MUNICIPALS -- 1.9%
17,000,000 Cuyahoga County, Ohio.......................
4.170 12/30/94 17,014,903
5,000,000 The City of New York........................
4.550 8/9/94 5,000,000
20,000,000 The City of New York........................
4.550 8/9/94 20,000,000
- -------------
TOTAL TAXABLE MUNICIPALS (COST
$42,014,903)........................... 42,014,903
- -------------
ASSET-BACKED SECURITIES -- 0.8%
16,000,000 Capital Auto Receivables Asset Trust, Trust
93-3, Class A-1............................
3.300 11/15/94 15,998,640
384,511 John Deere Owner Trust 93-B, Class A-1......
4.563 10/15/94 384,510
- -------------
TOTAL ASSET-BACKED SECURITIES (COST
$16,383,150)...................... 16,383,150
- -------------
REPURCHASE AGREEMENTS -- 41.3%
Agreement with First Boston Corporation dated
7/29/94 bearing 4.320%
to be repurchased at $100,036,000 on 8/1/94,
collateralized by
$146,602,874 various mortgage-backed
securities, with various
100,000,000 maturities and interest rates (market value --
$109,100,384).........
100,000,000
Agreement with Goldman Sachs and Company, Inc.
dated 7/29/94 bearing
4.200% to be repurchased at $60,021,000 on
8/1/94, collateralized by
60,000,000 $65,300,000 FNMA mortgage-backed security,
5.300% due 12/10/98
(market value --
$61,203,327)........................................
60,000,000
Agreement with Kidder Peabody & Company dated
7/29/94 bearing 4.462%
to be repurchased at $200,074,367 on 8/1/94,
collateralized by
200,000,000 $393,122,586 FNMA/FHLMC mortgage-backed
securities, with various
maturities and interest rates (market value --
$205,527,508)......... 200,000,000
Agreement with Merrill Lynch & Company dated
7/29/94 bearing 4.270% to
be repurchased at $258,264,866 on 8/1/94,
collateralized by
$316,997,100 various mortgage-backed
securities, with various
258,173,000 maturities and interest rates (market value --
$263,339,244).........
258,173,000
Agreement with J.P. Morgan Securities, Inc.
dated 7/29/94 bearing
4.300% to be repurchased at $75,026,875 on
8/1/94, collateralized by
75,000,000 $268,820,196 FNMA/FHLMC mortgage-backed
securities, with various
maturities and interest rates (market value --
$76,500,000).......... 75,000,000
Agreement with UBS Securities Inc. dated
7/29/94 bearing 4.310% to be
repurchased at $200,071,833 on 8/1/94,
collateralized by $264,878,772
various mortgage-backed securities, with
various maturities and
200,000,000 interest rates (market value --
$204,000,492)........................
200,000,000
- -------------
TOTAL REPURCHASE AGREEMENTS (COST
$893,173,000)....................... 893,173,000
- -------------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
- --------------
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$2,163,685,959*)............................. 100.0%
$2,163,685,959
OTHER ASSETS AND LIABILITIES
(NET)................................... 0.0
814,423
- ------ --------------
NET
ASSETS......................................................
..... 100.0% $2,164,500,382
- ------ --------------
- ------ --------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
** Securities exempt from registration under Rule 144A of
the Securities Act of
1933. These securities may be resold in transactions
exempt from registration
to qualified institutional buyers.
+ For Commercial Paper, the interest rate represents
annualized yield at date
of purchase.
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
PRIME VALUE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE+ DATE (NOTE 1)
- ---------- -----
- ---------- ----------- -------------
<C> <S> <C>
<C> <C>
BANK/CORPORATE NOTES -- 36.1%
$25,000,000 Abbey National Treasury Services,
Variable Rate...........................
4.750% 10/28/94 $ 24,990,948
20,000,000 AT & T Capital Corporation, Variable
Rate....................................
4.750 11/1/94 19,998,486
50,000,000 Bear Stearns Companies, Inc., Variable
Rate....................................
5.000 10/5/94 50,000,000
25,000,000 Bear Stearns Companies, Inc., Variable
Rate....................................
4.938 11/17/94 25,000,000
20,000,000 Bear Stearns Companies, Inc., Variable
Rate....................................
5.000 12/1/94 20,000,000
15,000,000 Bear Stearns Companies, Inc., Variable
Rate....................................
4.928 1/10/95 15,000,000
5,000,000 Chemical Banking Corporation, Variable
Rate....................................
5.225 1/3/95 5,006,524
6,000,000 FCC National Bank, Delaware, Variable
Rate....................................
5.080 1/11/95 6,000,000
1,000,000 General Motors Acceptance Corporation....
8.100 8/8/94 1,000,787
1,000,000 General Motors Acceptance Corporation....
8.150 9/15/94 1,004,967
4,500,000 General Motors Acceptance Corporation....
8.700 10/20/94 4,547,497
2,100,000 General Motors Acceptance Corporation....
5.900 11/4/94 2,110,158
3,000,000 General Motors Acceptance Corporation....
8.600 12/8/94 3,048,357
11,300,000 General Motors Acceptance Corporation....
6.350 1/17/95 11,412,003
3,000,000 General Motors Acceptance Corporation....
9.000 1/23/95 3,067,613
9,000,000 General Motors Acceptance Corporation....
6.000 1/25/95 9,078,723
6,000,000 General Motors Acceptance Corporation....
8.950 1/25/95 6,135,701
20,000,000 General Motors Acceptance Corporation....
5.950 1/27/95 20,182,600
50,000,000 Goldman Sachs Group, L.P., Variable
Rate....................................
4.820 10/12/94 50,000,000
50,000,000 Goldman Sachs Group, L.P., Variable
Rate....................................
4.563 12/14/94 50,000,000
10,000,000 Goldman Sachs Group, L.P., Variable
Rate....................................
4.890 12/21/94 10,000,000
19,000,000 Goldman Sachs Group, L.P., Variable
Rate....................................
4.820 1/18/95 19,000,000
28,000,000 Heller Financial, Inc., Variable Rate....
5.013 9/21/94 28,015,660
15,000,000 Household Finance Corporation,
Variable Rate...........................
4.650 8/18/94 14,998,608
30,000,000 Household Finance Corporation,
Variable Rate...........................
4.770 1/18/95 30,000,000
50,000,000 Morgan Stanley Group Inc., Variable
Rate....................................
4.563 11/8/94 50,000,000
- -------------
TOTAL BANK/CORPORATE NOTES (COST
$479,598,632)......................... 479,598,632
- -------------
COMMERCIAL PAPER -- 15.6%
45,000,000 Broadway Capital Corporation.............
4.385 8/16/94 44,917,969
23,175,000 Cortez Capital Corporation...............
4.434 8/23/94 23,112,402
25,000,000 Countrywide Funding Corporation..........
4.389 8/15/94 24,957,417
15,000,000 Countrywide Funding Corporation..........
4.445 8/22/94 14,961,237
16,500,000 CSC Enterprises..........................
4.445 8/23/94 16,455,331
23,648,000 Nationwide Building Society..............
4.435 8/25/94 23,578,317
20,000,000 Postipankki U.S. Inc.....................
4.426 8/26/94 19,938,750
40,000,000 Xerox Credit Corporation.................
4.361 8/18/94 39,917,833
- -------------
TOTAL COMMERCIAL PAPER (COST
$207,839,256)............................. 207,839,256
- -------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
PRIME VALUE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE+ DATE (NOTE 1)
- ---------- -----
- ---------- ----------- -------------
<C> <S> <C>
<C> <C>
INSURANCE CONTRACT -- 5.6% (COST $75,000,000)
$75,000,000 Security Life of Denver Insurance
Company, Variable Rate..................
4.970% 12/31/94 $ 75,000,000
- -------------
U.S. GOVERNMENT AGENCY NOTES -- 4.9%
35,000,000 Federal Farm Credit Bank, Variable
Rate....................................
4.450 9/7/94 34,996,199
30,000,000 Federal National Mortgage Association,
Variable Rate...........................
4.850 10/7/96 30,000,000
- -------------
TOTAL U.S. GOVERNMENT AGENCY NOTES (COST
$64,996,199).................. 64,996,199
- -------------
CERTIFICATE OF DEPOSIT -- 3.8% (COST
$50,000,000)
YANKEE
50,000,000 Mitsubishi Bank..........................
3.600 10/11/94 50,000,000
- -------------
TAXABLE MUNICIPAL -- 1.3% (COST $17,014,904)
17,000,000 Cuyahoga County, Ohio....................
4.170 12/30/94 17,014,904
- -------------
ASSET-BACKED SECURITIES -- 0.3% (COST
$3,999,660)
4,000,000 Capital Auto Receivables Asset Trust,
Trust 93-3, Class A-1...................
3.300 11/15/94 3,999,660
- -------------
REPURCHASE AGREEMENTS -- 32.1%
Agreement with BZW Securities Inc., New York
dated 7/29/94 bearing
4.250% to be repurchased at $70,024,792 on
8/1/94, collateralized by
70,000,000 $130,535,569 FNMA/FHLMC mortgage-backed
securities, with various
maturities and interest rates (market value --
$71,400,000)........... 70,000,000
Agreement with First Boston Corporation dated
7/29/94 bearing 4.320% to
be repurchased at $60,021,600 on 8/1/94,
collateralized by $69,823,000
various mortgage-backed securities, with
various maturities and
60,000,000 interest rates (market value --
$69,912,965)..........................
60,000,000
Agreement with Greenwich Capital Markets Inc.
dated 7/29/94 bearing
4.310% to be repurchased at $100,035,917 on
8/1/94, collateralized by
$364,601,601 various mortgage-backed
securities, with various
100,000,000 maturities and interest rates (market value --
$102,000,836)..........
100,000,000
Agreement with Kidder Peabody & Company dated
7/29/94 bearing 4.462% to
be repurchased at $100,037,183 on 8/1/94,
collateralized by
100,000,000 $181,800,353 FNMA/FHLMC mortgage-backed
securities, with various
maturities and interest rates (market value --
$102,000,000).......... 100,000,000
Agreement with Merrill Lynch & Company dated
7/29/94 bearing 4.270% to
be repurchased at $46,652,595 on 8/1/94,
collateralized by $62,668,848
various mortgage-backed securities, with
various maturities and
46,636,000 interest rates (market value --
$47,573,161)..........................
46,636,000
Agreement with Paine Webber Group Inc. dated
7/29/94 bearing 4.250% to
be repurchased at $50,017,708 on 8/1/94,
collateralized by $53,314,000
U.S. Treasury Notes, with various maturities
and interest rates
50,000,000 (market value --
$53,803,200).........................................
50,000,000
- -------------
TOTAL REPURCHASE AGREEMENTS (COST
$426,636,000)........................ 426,636,000
- -------------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
PRIME VALUE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
-----------
- --------------
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$1,325,084,651*)............................. 99.7 %
$1,325,084,651
OTHER ASSETS AND LIABILITIES
(NET)................................... 0.3
3,743,460
- ------- --------------
NET
ASSETS......................................................
..... 100.0 % $1,328,828,111
- ------- --------------
- ------- --------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
+ For Certificate of Deposit and Commercial Paper, the
interest rate represents
annualized yield at date of purchase.
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
GOVERNMENT OBLIGATIONS MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
- ----------
- ----------- --------- -----------
<C> <S>
<C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 57.4%
FEDERAL FARM CREDIT BANK (FFCB):
$5,000,000 FFCB, Discount Note............................
4.220% 8/9/94 $ 4,995,311
3,000,000 FFCB, Variable Rate Note.......................
4.450 9/7/94 2,999,674
- -----------
7,994,985
- -----------
FEDERAL HOME LOAN BANK (FHLB):
5,000,000 FHLB, Discount Note............................
4.280 8/26/94 4,985,139
5,000,000 FHLB, Variable Rate Note.......................
4.650 9/18/95 5,000,000
5,000,000 FHLB, Variable Rate Note.......................
4.780 2/3/97 5,000,000
- -----------
14,985,139
- -----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC):
5,000,000 FHLMC, Discount Note...........................
4.280 8/23/94 4,986,921
5,000,000 FHLMC, Discount Note...........................
4.270 8/23/94 4,986,953
5,000,000 FHLMC, Discount Note...........................
4.310 8/31/94 4,982,042
- -----------
14,955,916
- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA):
5,000,000 FNMA, Discount Note............................
3.420 9/30/94 4,971,500
5,000,000 FNMA, Discount Note............................
3.290 10/25/94 4,961,159
5,000,000 FNMA, Variable Rate Note.......................
4.650 12/20/95 5,000,000
5,000,000 FNMA, Variable Rate Note.......................
4.850 10/7/96 5,000,000
- -----------
19,932,659
- -----------
STUDENT LOAN MARKETING ASSOCIATION (SLMA):
5,200,000 SLMA, Discount Note............................
4.270 8/22/94 5,187,048
- -----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST
$63,055,747)................................................
.... 63,055,747
- -----------
REPURCHASE AGREEMENTS -- 42.7%
Agreement with Goldman Sachs and Company dated
7/29/94 bearing 4.200%
23,910,000 to be repurchased at $23,918,369 on 8/1/94
collateralized by
$24,580,000
FNMA discount notes due 9/29/94 (market value -
- - $24,388,399).........
23,910,000
23,000,000 Agreement with Paine Webber Group dated 7/29/94
bearing 4.250% to be
repurchased at $23,008,146 on 8/1/94
collateralized by $23,725,000
various mortgage-backed securities, with
various maturities and
interest rates (market value --
$23,462,566).......................... 23,000,000
- -----------
TOTAL REPURCHASE AGREEMENTS (COST
$46,910,000)......................... 46,910,000
- -----------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$109,965,747*)............................... 100.1%
109,965,747
OTHER ASSETS AND LIABILITIES
(NET)................................... (0.1)
(151,715)
- ------ --------------
NET
ASSETS......................................................
..... 100.0% $ 109,814,032
- ------ --------------
- ------ --------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
100% GOVERNMENT OBLIGATIONS MONEY MARKET
FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
- ---------
- ----------- --------- ----------
<C> <S>
<C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 99.0%
FEDERAL FARM CREDIT BANK (FFCB):
$1,000,000 FFCB, Discount Note..............................
3.280% 9/19/94 $ 995,536
5,000,000 FFCB, Medium Term Note, Variable Rate............
4.450 9/7/94 4,999,457
- ----------
5,994,993
- ----------
FEDERAL HOME LOAN BANK (FHLB):
775,000 FHLB, Discount Note..............................
4.220 8/17/94 773,546
1,000,000 FHLB, Variable Rate Note.........................
4.780 2/3/97 1,000,000
- ----------
1,773,546
- ----------
TOTAL INVESTMENTS (COST
$7,768,539*)................................. 99.0%
7,768,539
OTHER ASSETS AND LIABILITIES
(NET)................................... 1.0
81,876
- ------ --------------
NET
ASSETS......................................................
..... 100.0% $ 7,850,415
- ------ --------------
- ------ --------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
TREASURY INSTRUMENTS MONEY MARKET FUND II
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
- -----------
- -------- ---------------------
<C> <S>
<C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 53.7%
$10,000,000 U.S. Treasury Bills..........................
3.962 % 8/4/94 $ 9,996,733
10,000,000 U.S. Treasury Bills..........................
3.753 8/11/94 9,989,722
5,000,000 U.S. Treasury Bills..........................
4.160 8/18/94 4,990,296
10,000,000 U.S. Treasury Bills..........................
4.189 8/25/94 9,972,367
10,000,000 U.S. Treasury Bills..........................
4.169 9/1/94 9,964,479
10,000,000 U.S. Treasury Bills..........................
4.232 9/29/94 9,931,494
10,000,000 U.S. Treasury Bills..........................
4.272 10/6/94 9,922,633
10,000,000 U.S. Treasury Bills..........................
4.460 10/13/94 9,910,575
10,000,000 U.S. Treasury Bills..........................
4.350 10/20/94 9,904,444
10,000,000 U.S. Treasury Bills..........................
4.462 10/20/94 9,901,889
10,000,000 U.S. Treasury Bills..........................
4.408 10/27/94 9,894,996
15,000,000 U.S. Treasury Bills..........................
4.501 10/27/94 14,838,688
25,000,000 U.S. Treasury Bills..........................
4.330 11/3/94 24,720,611
25,000,000 U.S. Treasury Bills..........................
4.595 11/17/94 24,660,250
- -------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST
$168,599,177)..............................................
168,599,177
- -------------
REPURCHASE AGREEMENTS -- 46.5%
73,000,000 Agreement with Goldman Sachs and Company dated
7/29/94 bearing
4.200% to be repurchased at $73,025,550 on
8/1/94, collateralized
by $249,466,000 U.S. Treasury Notes, with
various maturities and
zero coupon rates (market value --
$74,460,450).................. 73,000,000
73,225,000 Agreement with Kidder Peabody & Company dated
7/29/94 bearing
4.220% to be repurchased at $73,250,751 on
8/1/94, collateralized
by $71,208,000 U.S. Treasury Obligations, with
various maturities
and interest rates (market value --
$74,689,778)................. 73,225,000
- -------------
TOTAL REPURCHASE AGREEMENTS (COST
$146,225,000)................... 146,225,000
- -------------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$314,824,177*)............................... 100.2%
314,824,177
OTHER ASSETS AND LIABILITIES
(NET)................................... (0.2)
(722,934)
- ------ --------------
NET
ASSETS......................................................
..... 100.0% $ 314,101,243
- ------ --------------
- ------ --------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
+ For U.S. Treasury Obligations, the interest rate
represents annualized yield
at date of purchase.
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
100% TREASURY INSTRUMENTS MONEY MARKET
FUND
<TABLE>
<CAPTION>
FACE
MATURITY VALUE
VALUE
INTEREST RATE DATE (NOTE 1)
- ---------- ---
- ------------ --------- ----------
<C> <S> <C>
<C> <C>
U.S. TREASURY OBLIGATIONS -- 100.3%
$1,080,000 U.S. Treasury Bills........................
3.993% 8/4/94 $1,079,645
270,000 U.S. Treasury Bills........................
3.753 8/11/94 269,723
3,415,000 U.S. Treasury Bills........................
4.116 8/11/94 3,411,139
6,075,000 U.S. Treasury Bills........................
4.169 8/25/94 6,058,293
745,000 U.S. Treasury Bills........................
4.236 8/25/94 742,919
3,000,000 U.S. Treasury Bills........................
4.169 9/1/94 2,989,344
1,350,000 U.S. Treasury Bills........................
4.124 9/8/94 1,344,179
5,000,000 U.S. Treasury Bills........................
4.118 9/15/94 4,974,406
2,685,000 U.S. Treasury Bills........................
4.201 9/22/94 2,668,905
4,500,000 U.S. Treasury Bills........................
4.204 9/22/94 4,472,960
4,531,000 U.S. Treasury Bills........................
4.297 9/22/94 4,503,250
1,948,000 U.S. Treasury Bills........................
4.222 9/29/94 1,934,687
160,000 U.S. Treasury Bills........................
4.235 9/29/94 158,904
2,500,000 U.S. Treasury Bills........................
4.240 9/29/94 2,482,853
3,920,000 U.S. Treasury Bills........................
4.262 10/6/94 3,889,744
7,000,000 U.S. Treasury Bills........................
4.276 10/6/94 6,945,715
820,000 U.S. Treasury Bills........................
4.243 10/13/94 813,016
1,340,000 U.S. Treasury Bills........................
4.285 10/13/94 1,328,479
300,000 U.S. Treasury Bills........................
4.289 10/13/94 297,418
910,000 U.S. Treasury Bills........................
4.293 10/13/94 902,157
365,000 U.S. Treasury Bills........................
4.417 10/13/94 361,762
3,000,000 U.S. Treasury Bills........................
4.345 10/20/94 2,971,467
205,000 U.S. Treasury Bills........................
4.353 10/20/94 203,046
1,420,000 U.S. Treasury Bills........................
4.412 10/20/94 1,406,242
4,020,000 U.S. Treasury Bills........................
4.372 10/27/94 3,978,128
5,000,000 U.S. Treasury Bills........................
4.408 10/27/94 4,947,498
100,000 U.S. Treasury Bills........................
4.451 10/27/94 98,936
1,000,000 U.S. Treasury Bills........................
4.501 10/27/94 989,246
5,565,000 U.S. Treasury Bills........................
4.585 11/17/94 5,489,539
2,375,000 U.S. Treasury Bills........................
4.647 11/17/94 2,342,653
- ----------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$74,056,253*)................................ 100.3%
74,056,253
OTHER ASSETS AND LIABILITIES
(NET)................................... (0.3)
(186,376)
- ------ --------------
NET
ASSETS......................................................
..... 100.0% $ 73,869,877
- ------ --------------
- ------ --------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
+ For U.S. Treasury Obligations, the interest rate
represents annualized yield
at date of purchase.
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES -- 99.4%
ALABAMA -- 4.0%
$1,100,000 Alabama Private College and University,
Equipment and Capital Facilities Revenue,
Series A,
(FGIC Insured), (Southtrust Bank),
3.000% due
7/1/05+++............................... $ 1,100,000
100,000 Alabama Special Care Facilities Financing
Authority
Revenue,
(Montgomery), (FGIC Insured), (Barclays Bank),
2.900% due
4/1/15+++............................... 100,000
- -----------
1,200,000
- -----------
ARIZONA -- 7.3%
1,100,000 Maricopa County, Arizona, Pollution Control
Corporation,
2.850% due
5/1/29+................................. 1,100,000
1,100,000 Phoenix, Arizona, General Obligation Bonds,
Series
1, (Morgan Guaranty, BPA),
2.850% due
6/1/18+................................. 1,100,000
- -----------
2,200,000
- -----------
CALIFORNIA -- 2.3%
200,000 California Health Facilities Financing
Authority
Revenue, (MBIA Insured), (Swiss Bank, BPA),
2.750% due
10/1/21+++.............................. 200,000
500,000 Los Angeles County, California, Unified School
District,
4.500% due
7/10/95................................. 504,079
- -----------
704,079
- -----------
COLORADO -- 4.8%
580,000 Denver, Colorado, City and County Revenue Bond,
2.700% due
12/1/94................................. 580,000
850,000 Mesa County, Colorado, Sisters Charity of
Leavenworth,
2.700% due
12/1/94................................. 850,000
- -----------
1,430,000
- -----------
FLORIDA -- 6.2%
500,000 Orlando, Florida, Community Redevelopment
Agency Tax
Revenue, (FGIC Insured),
3.350% due
10/1/94................................. 500,573
1,380,000 University Athletic Association Inc., Florida,
Capital Improvement Revenue Bond, (Sun Bank,
LOC),
2.900% due
2/1/20+++............................... 1,380,000
- -----------
1,880,573
- -----------
HAWAII -- 2.2%
650,000 Hawaii, General Obligation Bonds, Pre-refunded
11/1/94,
6.300% due
11/1/98++............................... 665,117
- -----------
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
IOWA -- 2.0%
$ 600,000 Louisa County, Iowa, Pollution Control Revenue,
(Iowa Power and Light Company Project),
(MidWest
Power Systems, GTC),
3.000% due
12/1/15+++.............................. $ 600,000
- -----------
KANSAS -- 3.8%
1,140,000 La Cygne, Kansas, Environmental Improvement
Revenue,
(Kansas Power and Light Company Project),
(Kansas
City Power and Light, GTC),
3.100% due
3/1/18+++............................... 1,140,000
- -----------
LOUISIANA -- 5.2%
100,000 East Baton Rouge Parish, Louisiana, Pollution
Control Revenue, (Toronto Dominion, LOC),
2.800% due
10/1/99+++.............................. 100,000
1,460,000 New Orleans, Louisiana, Aviation Board, (MBIA
Insured), (Industrial Bank of Japan, BPA),
2.800% due
8/1/11+++............................... 1,460,000
- -----------
1,560,000
- -----------
MAINE -- 1.0%
310,000 Hermon, Maine, General Obligation Bonds, (MBIA
Insured),
5.300% due
11/1/94................................. 311,910
- -----------
MICHIGAN -- 2.3%
Dearborn, Michigan, Economic Development
Corporation, (Mellon Bank, LOC):
500,000 3.150% due
3/1/23+++................................ 500,000
200,000 3.150% due
3/2/25+++................................ 200,000
- -----------
700,000
- -----------
MINNESOTA -- 0.3%
100,000 Golden Valley, Minnesota, Industrial Control
Development Revenue, (Banque Paribas, LOC),
3.050% due
9/1/14+++............................... 100,000
- -----------
MISSOURI -- 6.6%
1,000,000 Missouri Environmental Impact & Energy
Resources,
(Swiss Bank, LOC),
3.750% due
6/1/14++................................ 1,000,000
1,000,000 Ossage Beach, Missouri, Industrial Development
Authority, (NationsBank, LOC),
2.800% due
1/1/11++++.............................. 1,000,000
- -----------
2,000,000
- -----------
NEW MEXICO -- 2.0%
600,000 Albuquerque, New Mexico, Revenue Project,
(Bankers
Trust, LOC),
2.850% due
3/1/14+++............................... 600,000
- -----------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
NORTH CAROLINA -- 10.4%
$1,000,000 North Carolina Eastern Municipal Power
Authority
Revenue, Pre-refunded 1/1/95,
10.625% due
1/1/15++............................... $ 1,062,668
1,000,000 North Carolina Municipal Power Authority,
Pre-refunded 1/1/95,
9.375% due
1/1/05++................................ 1,057,295
1,000,000 Wake County, North Carolina, Industrial
Facilities
and Pollution
Control Financing Authority Revenue,
Carolina Power and Light Company, (Credit
Suisse,
LOC),
2.900% due
5/1/15+++............................... 1,000,000
- -----------
3,119,963
- -----------
OHIO -- 8.3%
2,500,000 Ohio State Air Quality Development Authority,
(Deutsche Bank, LOC),
2.800% due
5/1/07+................................. 2,500,000
- -----------
PENNSYLVANIA -- 5.7%
100,000 Delaware Valley, Pennsylvania, Regional Finance
Authority, (Marine Midland/ HK Shanghai, LOC),
2.900% due
8/1/16+++............................... 100,000
500,000 Philadelphia, Pennsylvania, Transportation
Bond,
Series E, (PNC Bank, N.A., LOC),
4.750% due
6/15/95................................. 503,569
1,100,000 Washington County, Pennsylvania, Lease
Authority,
(Sanwa Bank, LOC),
3.000% due
11/1/05+++.............................. 1,100,000
- -----------
1,703,569
- -----------
RHODE ISLAND -- 1.8%
530,000 Central Falls, Rhode Island, General Obligation
Bonds, (MBIA Insured),
2.700% due
11/15/94................................ 530,000
- -----------
TENNESSEE -- 0.3%
100,000 Metropolitan Nashville and Davidson County,
Tennessee,
Health and Education Authority Revenue,
(Barclays
Bank, BPA),
2.900% due
6/1/15+++............................... 100,000
- -----------
TEXAS -- 10.0%
3,000,000 Texas General Obligation Commercial Paper,
2.500% due
10/4/94................................. 3,000,000
- -----------
UTAH -- 1.5%
460,000 Utah State Building Ownership Authority
Revenue,
4.500% due
1/1/95.................................. 462,060
- -----------
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
VIRGINIA -- 5.3%
$ 100,000 Fairfax County, Virginia, Industrial Control
Revenue, (Dai Ichi Kangyo, LOC),
3.000% due
1/15/22+++.............................. $ 100,000
1,500,000 Virginia State Housing Development Authority
Revenue,
2.500% due
7/1/17++................................ 1,500,000
- -----------
1,600,000
- -----------
WEST VIRGINIA -- 1.1%
320,000 Clarksburg, West Virginia, Water Revenue,
Pre-refunded,
7.875% due
11/15/19++.............................. 330,545
- -----------
WISCONSIN -- 5.0%
1,490,000 Wisconsin Housing and Economic Development
Authority,
3.000% due
9/1/15++................................ 1,490,000
- -----------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST $29,927,816*)...................
99.4 % 29,927,816
OTHER ASSETS AND LIABILITIES (NET)......................
0.6 191,365
-
- ----- -----------
NET ASSETS..............................................
100.0 % $30,119,181
-
- ----- -----------
-
- ----- -----------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more
than one business
day's notice.
The interest rate shown reflects the rate currently in
effect.
++ Put bonds and notes have demand features which mature
within one year. The
interest rate shown reflects the rate currently in
effect.
+++ Variable rate demand notes are payable upon not more
than seven business
days' notice.
The interest rate shown reflects the rate currently in
effect.
++++ Variable rate demand notes are payable upon not more
than thirty business
days' notice.
The interest rate shown reflects the rate currently in
effect.
BPA -- Instruments supported by bond purchase agreement.
FGIC -- Federal Guaranty Insurance Corporation.
GTC -- Instruments guaranteed by corporation.
LOC -- Instruments supported by bank letter of credit.
MBIA -- Municipal Bond Investors Assurance.
</TABLE>
SUMMARY OF MUNICIPAL BONDS BY COMBINED
RATINGS#
<TABLE>
<CAPTION>
PERCENT
MOODY'S STANDARD &
POOR'S OF VALUE
<S> <C>
<C>
Aaa AAA
12.7%
Aa, Aa2, Aa3 AA
19.2
MIG1/VMIG1/P1 A-1/A-
1+/SP1/SP1+ 68.1
- --------
100.0%
- --------
- --------
#Bonds are not necessarily rated the same by
both services.
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES -- 99.4%
ARIZONA -- 6.7%
$2,500,000 Apache County, Arizona, Industrial Development
Authority Revenue,
(Chemical Bank, LOC),
3.100% due
6/15/20+++............................................ $
2,500,000
Maricopa County, Arizona, Pollution Control
Corporation:
2,200,000 (Bank of America, LOC),
2.750% due
5/1/24+...............................................
2,200,000
1,800,000 (Bank of America, LOC),
2.850% due
5/1/29+...............................................
1,800,000
1,600,000 (Toronto Dominion, LOC),
2.850% due
5/1/29+...............................................
1,600,000
3,000,000 Phoenix, Arizona, General Obligation Bonds,
(Morgan Guaranty,
BPA),
3.100% due
6/1/16+...............................................
3,000,000
500,000 Yuma, Arizona, Industrial Development Authority,
(Harris Trust,
LOC),
3.050% due
7/1/03+++.............................................
500,000
- -----------
11,600,000
- -----------
CALIFORNIA -- 4.5%
300,000 California Health Facilities Financing, Series
B, (Toronto
Dominion, LOC),
2.750% due
8/1/12+++.............................................
300,000
2,000,000 Long Beach, California, Harbor Department A-2,
(IBC, IBJ, BNP, Natwest, Calstrs, BPA),
3.000% due
8/15/94++.............................................
2,000,000
2,000,000 Los Angeles, California, Regional Airports
Revenue,
Series E, (Societe Generale, LOC),
2.850% due
12/1/24+..............................................
2,000,000
2,300,000 Rim of the World, California, Unified School
District,
Certificates of Participation, (AMBAC Insured),
4.100% due
9/1/94................................................
2,302,121
550,000 Riverside County, California, Industrial
Development,
(Sumitomo Trust, LOC),
4.050% due
7/5/19+++.............................................
550,000
640,000 Riverside County, California, Series A, (Union
Bank of California,
LOC),
3.050% due
12/1/15+++............................................
640,000
- -----------
7,792,121
- -----------
COLORADO -- 3.2%
3,300,000 Arapahoe County, Colorado, Capital Improvement
Revenue,
2.090% due
8/31/26++.............................................
3,300,000
1,000,000 Arapahoe County, Colorado, School District #5,
Series D,
Pre-refunded,
9.750% due
12/15/01++............................................
1,035,564
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
COLORADO (CONTINUED)
Colorado Student Loan Obligations Authority
Revenue, Series A:
$ 600,000 (Student Loan Marketing Association, LOC),
3.000% due
3/1/24+++............................................. $
600,000
555,000 (Sumitomo Bank, LOC),
3.000% due
9/1/24+++.............................................
555,000
- -----------
5,490,564
- -----------
CONNECTICUT -- 1.8%
2,100,000 Connecticut State Economic Recovery Notes,
Series B,
(IBJ/Can, Imp/Natwest, BPA),
3.000% due
6/1/96+++.............................................
2,100,000
1,000,000 Connecticut State Housing Finance Authority
Revenue,
2.900% due
11/15/94++............................................
1,000,000
- -----------
3,100,000
- -----------
DELAWARE -- 1.2%
2,000,000 Delaware State Economic Development Authority,
(Sumitomo Trust,
LOC),
3.250% due
11/1/99+++............................................
2,000,000
- -----------
FLORIDA -- 1.4%
300,000 Dade County, Florida, Industrial Development
Authority,
(Bank of Tokyo, LOC),
3.100% due
12/1/11+++............................................
300,000
540,000 Dade County, Florida, Solid Waste Industrial
Development Authority
Revenue, Series A, (Banque Paribas, LOC),
3.050% due
12/1/10+++............................................
540,000
1,400,000 Florida Housing Finance Agency, Multifamily
Housing Revenue,
(PNC Bank, N.A., LOC),
3.050% due
12/1/11+++............................................
1,400,000
100,000 Marion County, Florida, Industrial Development
Authority Revenue,
(Bankers Trust, LOC),
2.950% due
7/1/04++..............................................
100,000
- -----------
2,340,000
- -----------
GEORGIA -- 4.7%
850,000 Cobb County, Georgia, General Obligation Bonds,
3.600% due
1/1/95................................................
852,253
355,000 Colquitt County, Georgia, Development Authority
Revenue,
(Fleet National Bank, LOC),
3.050% due
4/1/98+++.............................................
355,000
1,000,000 Georgia Municipal Electric Power Authority,
Series A, Pre-refunded
1/1/95,
10.500% due
1/1/20++.............................................
1,051,723
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
GEORGIA (CONTINUED)
$5,800,000 Gwinnett County, Georgia, Development Authority,
(Union Bank of Switzerland, LOC),
3.100% due
11/1/06+.............................................. $
5,800,000
- -----------
8,058,976
- -----------
ILLINOIS -- 1.8%
2,000,000 Chicago, Illinois, Public Building Commission
Revenue, (MBIA
Insured),
6.800% due
1/1/95................................................
2,032,306
1,000,000 Illinois Development Financing Authority
Revenue,
(Industrial Bank of Japan, LOC),
3.275% due
1/1/09+++.............................................
1,000,000
- -----------
3,032,306
- -----------
INDIANA -- 3.1%
750,000 Indiana State Employment Development Commission
Revenue,
(Credit Commerciale, LOC),
3.250% due
1/1/13+++.............................................
750,000
Indiana State Development Financing Authority:
1,500,000 3.250% due
1/1/14+++..............................................
1,500,000
150,000 (Credit Commerciale, LOC),
3.250% due
1/1/14+++.............................................
150,000
1,000,000 (Harris Trust, LOC),
2.850% due
6/1/09+++.............................................
1,000,000
1,000,000 Indiana Student Loan Revenue, (AMBAC Insured),
(Mitsubishi Bank,
BPA),
2.850% due
12/1/13+++............................................
1,000,000
1,000,000 Indianapolis, Indiana, Industrial Economic
Development Revenue,
(Asahi Bank, LOC),
3.900% due
9/1/95+++.............................................
1,000,000
- -----------
5,400,000
- -----------
KENTUCKY -- 2.4%
1,000,000 Kentucky Pollution Abatement and Water Resources
Finance Authority Revenue, (Bank of
Tokyo/Sakura/Sanwa/Tokai,
BPA),
3.100% due
8/13/06+..............................................
1,000,000
3,200,000 Lexington-Fayette Urban County Airport
Corporation, Kentucky,
Revenue, (Credit Locale, LOC),
3.100% due
4/1/24+...............................................
3,200,000
- -----------
4,200,000
- -----------
LOUISIANA -- 3.4%
3,000,000 Ascension Parish, Louisiana, Pollution Control
Revenue,
(Shell Oil Company Project),
2.750% due
9/1/23+...............................................
3,000,000
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
LOUISIANA (CONTINUED)
Louisiana Housing Finance Authority Revenue:
(Sumitomo Trust, LOC),
$2,530,000 4.000% due
12/1/25+++............................................. $
2,530,000
300,000 4.000% due
1/1/26+++..............................................
300,000
- -----------
5,830,000
- -----------
MARYLAND -- 2.0%
1,500,000 Maryland State Health and Higher Education,
Series B,
(Mellon Bank, LOC),
2.950% due
7/1/24+++.............................................
1,500,000
2,000,000 Montgomery County, Maryland, Housing
Opportunities Authority
Revenue,
2.650% due
7/1/35++..............................................
2,000,000
- -----------
3,500,000
- -----------
MICHIGAN -- 1.5%
500,000 Dearborn, Michigan, Economic Development
Corporation,
(Mellon Bank, LOC),
3.150% due
3/1/23+++.............................................
500,000
2,100,000 Delta County, Michigan, Economic Development
Corporation,
(Bank of Nova Scotia, LOC),
2.750% due
12/1/13+..............................................
2,100,000
- -----------
2,600,000
- -----------
MINNESOTA -- 0.3%
505,000 Minnesota State Housing Finance Agency, Series
A,
(Societe Generale, LOC),
2.600% due
1/1/09++..............................................
504,773
- -----------
MISSISSIPPI -- 1.2%
2,100,000 Perry County, Mississippi, Pollution Control
Revenue,
(Leaf River Forest Project), (Credit Suisse,
LOC),
2.700% due
3/1/02+...............................................
2,100,000
- -----------
NEVADA -- 1.7%
3,000,000 Nevada State Department Commission, Industrial
Development
Revenue, Series A, (Credit Commerciale, LOC),
3.250% due
12/1/09+++............................................
3,000,000
- -----------
NEW JERSEY -- 3.2%
4,000,000 Delaware River Port Authority of Pennsylvania &
New Jersey,
Pre-refunded 1/1/95, (AMBAC Insured),
9.375% due
1/1/11++..............................................
4,227,132
Middlesex County, New Jersey, Utilities
Authority, (MBIA Insured),
(Bankers Trust, BPA):
555,000 3.000% due
8/15/02+++.............................................
555,000
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW JERSEY (CONTINUED)
$ 700,000 3.000% due
2/15/03+++............................................. $
700,000
- -----------
5,482,132
- -----------
NEW MEXICO -- 2.2%
400,000 Albuquerque, New Mexico, Revenue Project,
(Bankers Trust, LOC),
2.850% due
3/1/14+++.............................................
400,000
New Mexico Educational Assistance Foundation
Revenue:
1,450,000 3.200% due
12/1/94................................................
1,452,610
2,000,000 4.300% due
12/1/94................................................
2,010,470
- -----------
3,863,080
- -----------
NEW YORK -- 10.9%
New York, New York, General Obligation Bonds:
1,300,000 Series A, (Banque Paribas, LOC),
2.850% due
8/1/19+...............................................
1,300,000
2,300,000 Series A-8, (Sanwa Bank, BPA),
2.800% due
8/1/17+...............................................
2,300,000
2,000,000 Series A-10, (Kredie Hoank, LOC),
2.800% due
8/1/15+...............................................
2,000,000
400,000 Series E-5, (Sumitomo Bank, LOC),
2.900% due
8/1/16+...............................................
400,000
3,000,000 Subseries A-5, (Morgan Guaranty, LOC),
2.750% due
8/1/21+...............................................
3,000,000
2,000,000 Subseries A-8, (Sanwa Bank, LOC),
2.800% due
8/1/18+...............................................
2,000,000
1,800,000 Subseries A-10, (Sanwa Bank, LOC),
2.800% due
8/1/17+...............................................
1,800,000
540,000 New York State Home Mortgage Agency Revenue,
3.000% due
10/1/94...............................................
540,000
4,185,000 New York State Jobs Development Authority
Revenue, (Fuji Bank,
BPA),
3.150% due
3/1/03+...............................................
4,185,000
1,312,328 New York State Power Authority and General
Purpose,
Pre-refunded 1/1/95,
10.375% due
1/1/16++.............................................
1,312,328
- -----------
18,837,328
- -----------
NORTH CAROLINA -- 1.2%
2,000,000 North Carolina Eastern Municipal Power Authority
Revenue, Series
D,
Pre-refunded 1/1/95,
10.000% due
1/1/10++.............................................
2,120,463
- -----------
OHIO -- 0.8%
1,465,000 Summit County, Ohio, Bond Anticipation Notes,
Series A,
3.700% due
3/9/95................................................
1,466,705
- -----------
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
OREGON -- 1.1%
Oregon State Economic Development Commission
Revenue:
$1,000,000 (Kydtaru Project), (Bank of Tokyo, LOC),
3.275% due
12/1/99+++............................................ $
1,000,000
890,000 (Toshi Project), (First Interstate, LOC),
3.500% due
7/1/98+++.............................................
890,000
- -----------
1,890,000
- -----------
SOUTH CAROLINA -- 1.9%
South Carolina Jobs and Economic Development
Authority Revenue,
(Credit Commerciale, LOC):
1,590,000 3.250% due
8/1/95+++..............................................
1,590,000
200,000 3.250% due
5/1/01+++..............................................
200,000
1,420,000 3.250% due
12/1/04+++.............................................
1,420,000
- -----------
3,210,000
- -----------
TENNESSEE -- 7.7%
9,000,000 Coffee County, Tennessee, Industrial Development
Board Revenue,
(Asahi Bank, LOC),
4.150% due
12/1/01+++............................................
9,000,000
500,000 Franklin County, Tennessee, Industrial
Development Board,
(NationsBank, LOC),
3.150% due
12/1/08+++............................................
500,000
1,065,000 Memphis, Tennessee, Electric Systems Revenue,
5.900% due
1/1/95................................................
1,080,119
1,000,000 Metropolitan Nashville Airport Authority of
Tennessee,
(Societe Generale, BPA),
2.950% due
7/1/19+++.............................................
1,000,000
1,750,000 Metropolitan Nashville and Davidson County,
Utility Revenue,
Pre-refunded 1/1/95,
9.375% due
1/1/15++..............................................
1,833,225
- -----------
13,413,344
- -----------
TEXAS -- 6.7%
1,300,000 Harris County, Texas, Industrial Development,
(Yokohama Tire Corporation Project),
(Industrial Bank of Japan,
LOC),
3.100% due
11/1/95+..............................................
1,300,000
1,750,000 Harris County, Texas, Toll Road Unlimited Tax
Sub Lien Revenue,
Series F, Pre-refunded 2/1/95,
9.250% due
8/1/14++..............................................
1,858,742
3,000,000 Houston, Texas, Airports Systems Revenue,
Commercial Paper,
(J. P. Morgan CIBC, LOC),
2.900% due
11/1/94...............................................
3,000,000
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
TEXAS (CONTINUED)
$ 200,000 Lubbock, Texas, Health Facilities Authority
Revenue, (St. Joseph's
Hospital),
2.750% due
7/1/13+............................................... $
200,000
1,100,000 North Central Texas Health Facilities
Corporation, (BIGI Insured),
(Chemical Bank, BPA),
2.850% due
10/1/15+..............................................
1,100,000
4,200,000 Plano, Texas, Health Facilities Revenue,
Commercial Paper,
(Banque Paribas, LOC),
2.850% due
1/1/19++..............................................
4,200,000
- -----------
11,658,742
- -----------
UTAH -- 5.8%
700,000 Carbon County, Utah, Solid Waste Removal
Authority Revenue,
Commercial Paper, (Union Pacific, GTC),
2.850% due
7/1/08++..............................................
700,000
1,500,000 Intermountain Power Agency, Utah, Power Supply
Revenue, Series E,
(Bank of America, BPA),
3.000% due
7/1/14++..............................................
1,500,000
2,000,000 Salt Lake City, Utah, Airport Revenue, (Credite
Suisse, LOC),
3.000% due
6/1/98+++.............................................
2,000,000
Tooele County, Utah, Electric Power Authority
Revenue, (Project
A), Commercial Paper, (Union Pacific, GTC):
2,300,000 3.000% due
10/3/94................................................
2,300,000
2,600,000 2.700% due
10/6/94................................................
2,600,000
1,000,000 2.900% due
10/11/94...............................................
1,000,000
- -----------
10,100,000
- -----------
VIRGINIA -- 12.3%
Peninsula Port Authority of Virginia, Industrial
Development
Revenue Bonds:
5,600,000 (Kinyo, Virginia Inc. Project), (Industrial Bank
of Japan, LOC),
3.100% due
5/1/08+...............................................
5,600,000
Peninsula Port Authority of Virginia, Industrial
Development
Revenue Bonds (continued):
2,000,000 (Port Authority for Shell Oil Company Project),
(Shell Oil, GTC),
2.700% due
12/1/05+..............................................
2,000,000
13,750,000 Virginia State Housing Development Authority
Revenue, Series K,
2.650% due
1/1/22++..............................................
13,751,686
- -----------
21,351,686
- -----------
WASHINGTON -- 1.0%
1,663,759 King County, Washington, General Obligation
Bonds, Series A,
8.800% due
12/1/94...............................................
1,663,759
- -----------
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
WEST VIRGINIA -- 0.3%
$ 600,000 Marion County, West Virginia, County Commission
Solid
Waste Disposal Facilities Revenue (Granite Town
Project),
Project D, (National Westminster, LOC),
3.050% due
10/1/17+++............................................ $
600,000
- -----------
WYOMING -- 3.4%
3,900,000 Lincoln County, Wyoming, Pollution Control
Revenue,
(Exxon Project), Series A, (Exxon, GTC),
3.600% due
7/1/17++..............................................
3,900,000
2,000,000 Uinta County, Wyoming, Pollution Control
Revenue, (Chevron, GTC),
2.650% due
8/15/20+..............................................
2,000,000
- -----------
5,900,000
- -----------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$172,105,979*)............................ 99.4%
172,105,979
OTHER ASSETS AND LIABILITIES
(NET)................................ 0.6
980,181
- ------ ------------
NET
ASSETS......................................................
.. 100.0% $173,086,160
- ------ ------------
- ------ ------------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more
than one business day's
notice.
The interest rate shown reflects the rate currently in
effect.
++ Put bonds and notes have demand features which mature
within one year. The
interest rate shown reflects the rate currently in
effect.
+++ Variable rate demand notes are payable upon not more
than seven business
days' notice.
The interest rate shown reflects the rate currently in
effect.
AMBAC -- American Municipal Bond Assurance Corporation.
BIGI -- Bond Investors Guaranty Insurance.
BPA -- Instruments supported by bond purchase agreement.
GTC -- Instruments guaranteed by corporation.
LOC -- Instruments supported by bank letter of credit.
MBIA -- Municipal Bond Investors Assurance.
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
SUMMARY OF MUNICIPAL BONDS BY COMBINED
RATINGS#
<TABLE>
<CAPTION>
PERCENT
MOODY'S STANDARD & POOR'S
OF VALUE
<S> <C>
<C>
Aaa AAA
16.8%
Aa, Aa1, Aa2, Aa3 AA, AA+
4.4
MIG1/VMIG1/P1 A-1/A-1+/SP1/SP1+
65.8
MIG2/VMIG2/P-2 SP2/A2
8.1
NR NR
4.9
- --------
100.0%
- --------
- --------
#Bonds are not necessarily rated the same by both
services.
</TABLE>
See Notes to Financial Statements.
25
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
<C> <S>
<C>
MUNICIPAL BONDS AND NOTES -- 98.7%
CALIFORNIA -- 96.8%
California Health Facilities Financing
Authority:
$ 100,000 (Catholic Health Care), Series B, (MBIA
Insured),
(Morgan Guaranty, BPA),
2.650% due
7/1/16+................................. $ 100,000
100,000 (Sutter), Series A, (Morgan Guaranty, LOC),
2.600% due
3/1/20+++............................... 100,000
100,000 California Pollution Control Financing
Authority,
(Shell Oil, GTC),
2.600% due
11/1/00+................................ 100,000
500,000 California State Revenue Anticipation Notes,
3.750% due
12/21/94................................ 501,423
100,000 Duarte, California, Redevelopment Agency, (Bank
of
America, LOC),
2.750% due
12/1/14+++.............................. 100,000
300,000 Eastern Municipal Water District, California,
Water
and Sewer Revenue,
Series B, Certificates of Participation, (FGIC
Insured), (Industrial Bank of Japan, BPA),
2.650% due
7/1/20+++............................... 300,000
90,000 Encinitas, California, Public Financing
Authority,
(MBIA Insured),
2.550% due
10/1/94................................. 90,000
295,000 Fontana, California, Apartment Development
Revenue,
(Citrus Avenue Apartments), Series A, (Bank of
America, LOC),
2.750% due
11/1/07+++.............................. 295,000
300,000 Foothill / Eastern Transportation, Corridor
Agency,
California,
Toll Road Revenue, (Morgan Guaranty, LOC),
2.650% due
7/1/23+++............................... 300,000
Irvine Ranch, California, Water District,
(Sumitomo
Bank, LOC):
700,000 2.700% due
10/1/05+................................. 700,000
600,000 2.700% due
10/1/10+................................. 600,000
District 284:
100,000 (Sumitomo Bank, LOC),
2.700% due
11/15/13+............................... 100,000
200,000 (National Westminster, LOC),
2.700% due
8/1/16+................................. 200,000
Kern County, California, Certificates of
Participation, (Sanwa Bank, LOC):
100,000 Series C,
2.700% due
8/1/06+++............................... 100,000
200,000 Series D,
2.700% due
8/1/06+++............................... 200,000
300,000 Kern County, California, High School District,
(Rate
Financing Project),
(Swiss Bank, LOC),
2.750% due
12/1/03+++.............................. 300,000
500,000 Los Angeles County, California, Community
Redevelopment Housing, (Tokai Bank, LOC),
3.450% due
12/1/10+++.............................. 500,000
</TABLE>
See Notes to Financial Statements.
26
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
<C> <S>
<C>
CALIFORNIA (CONTINUED)
$ 300,000 Los Angeles County, California, Unified School
District,
4.500% due
7/10/95................................. $ 302,448
300,000 Marin County, California, Tax and Revenue
Anticipation Notes,
4.250% due
7/6/95.................................. 301,747
240,000 Northern California Power Agency, Series A,
Pre-refunded 7/1/95,
9.500% due
7/1/02++................................ 257,261
300,000 Orange County, California, Apartment
Development
Revenue,
(Monarch Bay Apartments), Project T,
(Mitsubishi
Bank, LOC),
3.100% due
10/1/07+++.............................. 300,000
400,000 Orange County, California, Certificates of
Participation,
(Dai Ichi, Kangyo Bank, LOC),
2.700% due
12/1/15+................................ 400,000
100,000 Orange County, California, Sanitation District,
(AMBAC Insured), (Industrial Bank of Japan,
BPA),
2.650% due
8/1/13+++............................... 100,000
315,000 Rim of the World, California, Unified School
District,
Certificates of Participation, (AMBAC
Insured),
4.100% due
9/1/94.................................. 315,291
300,000 Riverside County, California, Certificates of
Participation, (Sanwa Bank, LOC),
2.850% due
12/1/15+++.............................. 300,000
500,000 Riverside County, California, Series A, (Union
Bank
of California, LOC),
3.050% due
12/1/15+++.............................. 500,000
Sacramento County, California, Multifamily
Housing
Revenue, (Dai Ichi Kangyo, LOC):
100,000 Series A,
3.050% due
4/15/07+++.............................. 100,000
200,000 Series B,
3.050% due
4/15/07+++.............................. 200,000
300,000 San Diego, California, Industrial Development
Revenue,
(Kaiser Aerospace and Electric), Series A,
(ABN/AMRO Bank, LOC),
3.050% due
10/1/07+++.............................. 300,000
235,000 San Diego, California, Multifamily Housing
Revenue,
(Citibank, LOC),
2.800% due
12/1/08+++.............................. 235,000
300,000 San Luis, California, Coastal School District,
Certificate-86,
(Credit Suisse, LOC),
2.750% due
12/1/08+++.............................. 300,000
100,000 Santa Clara County, California, Tax and Revenue
Anticipation Notes, (National Westminster,
LOC),
2.750% due
7/1/10+++............................... 100,000
400,000 Santa Clara County, California, Hospital
District,
(National Westminster, LOC),
2.800% due
8/1/15+++............................... 400,000
Southern California Rapid Transit Revenue,
(MBIA
Insured), (Bankers Trust, BPA):
100,000 3.000% due
7/1/99+++................................ 100,000
600,000 3.000% due
7/1/00+++................................ 600,000
</TABLE>
See Notes to Financial Statements.
27
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1994 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE
VALUE
VALUE
(NOTE 1)
- ----------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
<C> <S>
<C>
CALIFORNIA (CONTINUED)
$ 200,000 Ventura County, California, Community College,
4.250% due
6/30/95................................. $ 200,614
100,000 Visalia, California, Convention Center,
(Mitsubishi
Bank, LOC),
3.000% due
12/1/15+++.............................. 100,000
- -----------
9,998,784
- -----------
PUERTO RICO -- 1.9%
200,000 Puerto Rico Health Facilities and Services
Revenue,
Pre-refunded,
9.125% due
8/15/94................................. 200,462
- -----------
TOTAL INVESTMENTS (COST $10,199,246*)...................
98.7% 10,199,246
OTHER ASSETS AND LIABILITIES (NET)......................
1.3 129,319
-
- ----- -----------
NET ASSETS..............................................
100.0% $10,328,565
-
- ----- -----------
-
- ----- -----------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more
than one business day's
notice.
The interest rate shown reflects the rate currently in
effect.
++ Put bonds and notes have demand features which mature
within one year. The
interest rate shown reflects the rate currently in
effect.
The interest rate shown reflects the rate currently in
effect.
+++Variable rate demand notes are payable upon not more than
seven business
days' notice.
The interest rate shown reflects the rate currently in
effect.
AMBAC -- American Municipal Bond Assurance Corporation.
BPA -- Instruments supported by bond purchase agreement.
FGIC -- Federal Guaranty Insurance Corporation.
GTC -- Instruments guaranteed by corporation.
LOC -- Instruments supported by bank letter of credit.
MBIA -- Municipal Bond Investors Assurance.
</TABLE>
SUMMARY OF MUNICIPAL BONDS BY COMBINED
RATINGS#
<TABLE>
<CAPTION>
PERCENT
MOODY'S STANDARD & POOR'S
OF VALUE
<S> <C>
<C>
Aaa AAA
6.5%
MIG1/VMIG1/P1 A-1/A-1+/SP1/SP1+
79.8
MIG2/VMIG2/P-2 SP2/A2
9.8
NR NR
3.9
- --------
100.0%
- --------
- --------
#Bonds are not necessarily rated the same by both
services.
</TABLE>
See Notes to Financial Statements.
28
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
FLOATING RATE U.S. GOVERNMENT FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
----------
- ------------- -------- -----------
<C> <S>
<C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 85.8%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
- -- 40.7%
$9,620,687 FHLMC..........................................
5.517% 6/1/22 $ 9,843,165
9,686,868 FHLMC**........................................
5.907 2/1/23 9,995,637
- -----------
19,838,802
- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) --
45.1%
879,545 FNMA...........................................
5.238 11/1/14 896,861
1,541,200 FNMA...........................................
5.750 4/1/15 1,554,204
1,488,707 FNMA...........................................
5.980 4/1/15 1,510,107
614,435 FNMA...........................................
5.375 7/1/18 638,532
427,930 FNMA...........................................
5.429 8/1/19 439,363
1,181,635 FNMA...........................................
5.879 8/1/20 1,226,131
2,922,215 FNMA...........................................
6.373 12/1/20 2,996,184
1,316,241 FNMA...........................................
5.450 12/1/21 1,364,366
3,664,118 FNMA...........................................
5.697 7/1/22 3,788,927
3,009,297 FNMA...........................................
5.555 1/1/23 3,077,006
4,433,779 FNMA**.........................................
5.646 2/1/23 4,521,762
- -----------
22,013,443
- -----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST
$41,939,564)................................................
...... 41,852,245
- -----------
REPURCHASE AGREEMENT -- 4.4% (COST $2,148,000)
Agreement with Merrill Lynch Tri-Party dated
7/29/94 bearing 4.270% to be
2,148,000 repurchased at $2,148,764 on 8/1/94,
collateralized by $4,032,000 FHPC
mortgage-backed security, 10.500% due 1/20/07
(market value --
$2,218,596).................................................
............ 2,148,000
- -----------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$44,087,564*)......................................
90.2% 44,000,245
OTHER ASSETS AND LIABILITIES
(NET)......................................... 9.8
4,772,938
- ------ -----------
NET
ASSETS......................................................
........... 100.0% $48,773,183
- ------ -----------
- ------ -----------
<CAPTION>
NET UNREALIZED
NUMBER OF CONTRACTS
(DEPRECIATION)
- ------------------------------------------------------------
- --------------- ---------------------
<S>
<C> <C>
FUTURES CONTRACTS -- SHORT POSITION
39 Euro Future, September
1994............................... $(11,700)
39 Euro Future, December
1994................................ (23,675)
39 Euro Future, March
1995................................... (20,475)
39 Euro Future, June
1995.................................... (20,475)
- -------
$(76,325)
- -------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
** Security pledged as collateral for futures contracts.
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994 (UNAUDITED)
SHORT DURATION U.S. GOVERNMENT FUND
<TABLE>
<CAPTION>
FACE
INTEREST MATURITY VALUE
VALUE
RATE DATE (NOTE 1)
----------
- ------------- -------- -----------
<C> <S>
<C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 81.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
- -- 70.8%
$2,195,890 FHLMC, Multiclass..............................
6.500% 12/15/98 $ 2,195,548
9,628,068 FHLMC, Multiclass**............................
5.750 5/15/05 9,607,007
9,812,411 FHLMC, Multiclass**............................
5.875 10/15/09 9,792,480
2,000,000 FHLMC, Multiclass..............................
6.000 3/15/10 1,985,000
- -----------
23,580,035
- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) --
11.1%
2,042,644 FNMA, REMIC....................................
9.000 3/25/00 2,057,644
1,618,486 FNMA, REMIC, Variable Rate.....................
5.100 1/25/21 1,625,062
- -----------
3,682,706
- -----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST
$27,330,757)................................................
....... 27,262,741
- -----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 5.2%
(COST $1,725,238)
1,721,959 Collateralized Mortgage Obligation, Trust 2....
9.650 7/25/06 1,728,416
- -----------
REPURCHASE AGREEMENT -- 12.7%
(COST $4,228,000)
Agreement with Merrill Lynch Tri-Party dated
7/29/94 bearing 4.270% to be
repurchased at $4,229,504 on 8/1/94,
collateralized by $10,518,465 FNMA
mortgage-backed securities, with various
maturities and interest rates
4,228,000 (market value --
$4,345,072)............................................
4,228,000
- -----------
</TABLE>
<TABLE>
<S>
<C> <C>
TOTAL INVESTMENTS (COST
$33,283,995*)................................ 99.8%
33,219,157
OTHER ASSETS AND LIABILITIES
(NET)................................... 0.2
54,482
- ------ -----------
NET
ASSETS......................................................
..... 100.0% $33,273,639
- ------ -----------
- ------ -----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
NET UNREALIZED
CONTRACTS
(DEPRECIATION)
- ---------- -----------------------------------------------
- -------------------
<C> <S>
<C>
FUTURES CONTRACTS -- SHORT POSITION
17 Euro Future, September
1994......................... $(5,100)
17 Euro Future, December
1994.......................... (11,950)
17 Euro Future, March
1995............................. (8,925)
17 Euro Future, June
1995.............................. (8,925)
- ------
$(34,900)
- ------
<FN>
- ------------------------
* Aggregate cost for Federal tax purposes.
** Security pledged as collateral for futures contracts.
REMIC -- Real Estate Mortgage Investment Conduit.
</TABLE>
See Notes to Financial Statements.
30
<PAGE>
This page left intentionally blank.
See Notes to Financial Statements.
31
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
100%
GOVERNMENT GOVERNMENT
PRIME PRIME VALUE OBLIGATIONS OBLIGATIONS
MONEY MONEY MARKET MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND FUND
---
- ------------ --------------- ------------- -----------
- -
ASSETS:
<S> <C>
<C> <C> <C>
Investments, at value
See accompanying schedules:
Securities......................................... $
1,270,512,959 $ 898,448,651 $ 63,055,747
$7,768,539
Repurchase agreements..............................
893,173,000 426,636,000 46,910,000 --
---
- ------------ --------------- ------------- -----------
- -
Total investments......................................
2,163,685,959 1,325,084,651 109,965,747
7,768,539
Cash...................................................
- -- -- 28,630 36,385
Receivable from Investment Adviser (Note 2)............
- -- 821,227 -- 13,383
Receivable from Administrator (Note 2).................
- -- -- -- --
Interest recievable....................................
5,345,338 5,831,192 179,978 46,787
Receivable for Fund shares sold........................
3,229,056 1,694,231 -- --
Unamortized organization costs (Note 6)................
44,902 44,902 44,902 44,902
Other assets...........................................
448 -- -- --
---
- ------------ --------------- ------------- -----------
- -
Total Assets.........................................
2,172,305,703 1,333,476,203 110,219,257
7,909,996
---
- ------------ --------------- ------------- -----------
- -
LIABILITIES:
Investment Advisory fee payable (Note 2)...............
138,926 -- 13,072 --
Administration fee payable (Note 2)....................
231,402 39,112 3,072 200
Service fee payable (Note 3)...........................
48,216 1,744 1,095 --
Transfer Agent fee payable.............................
126,845 106,013 5,500 965
Custodian fees payable (Note 2)........................
38,000 36,150 12,600 19,000
Due to custodian.......................................
141,550 110,622 -- --
Dividends payable......................................
6,957,881 4,253,726 359,840 31,020
Accrued Trustees' fees and expenses (Note 2)...........
24,455 22,374 890 215
Organization costs payable.............................
1,531 1,531 1,481 1,481
Accrued expenses and other payables....................
96,515 76,820 7,675 6,700
---
- ------------ --------------- ------------- -----------
- -
Total Liabilities....................................
7,805,321 4,648,092 405,225 59,581
---
- ------------ --------------- ------------- -----------
- -
NET ASSETS............................................. $
2,164,500,382 $ 1,328,828,111 $109,814,032
$7,850,415
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Investments, at cost (Note 1).......................... $
2,163,685,959 $ 1,325,084,651 $109,965,747
$7,768,539
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
<TABLE>
<CAPTION>
100%
TREASURY
TREASURY CALIFORNIA
INSTRUMENTS
INSTRUMENTS TAX-FREE MUNICIPAL MUNICIPAL
MONEY MARKET
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND II
FUND FUND FUND FUND
------------- --
- ---------- ------------ ------------- ------------
ASSETS:
<S> <C>
<C> <C> <C> <C>
Investments, at value
See accompanying schedules:
Securities.......................... $168,599,177
$74,056,253 $29,927,816 $172,105,979 $10,199,246
Repurchase agreements............... 146,225,000
- -- -- -- --
------------- --
- ---------- ------------ ------------- ------------
Total investments....................... 314,824,177
74,056,253 29,927,816 172,105,979 10,199,246
Cash.................................... 19,449
30,534 67,345 173,320 71,957
Receivable from Investment Adviser (Note
2).................................... 31,135
- -- 3,625 -- 9,872
Receivable from Administrator (Note
2).................................... 23,108
- -- -- -- --
Interest recievable..................... 51,301
- -- 174,586 1,041,534 50,626
Receivable for Fund shares sold......... 349,704
197 -- -- --
Unamortized organization costs (Note
6).................................... 44,902
44,902 44,902 44,902 44,902
Other assets............................ --
- -- -- -- --
------------- --
- ---------- ------------ ------------- ------------
Total Assets.......................... 315,343,776
74,131,886 30,218,274 173,365,735 10,376,603
------------- --
- ---------- ------------ ------------- ------------
LIABILITIES:
Investment Advisory fee payable (Note
2).................................... --
601 -- 22,950 --
Administration fee payable (Note 2)..... 11,453
104 1,269 7,645 345
Service fee payable (Note 3)............ 6,756
- -- -- -- --
Transfer Agent fee payable.............. 9,690
4,240 2,200 13,084 3,253
Custodian fees payable (Note 2)......... 18,000
13,000 22,600 27,186 9,300
Due to custodian........................ --
- -- -- -- --
Dividends payable....................... 1,167,368
234,332 65,324 187,895 21,034
Accrued Trustees' fees and expenses
(Note 2).............................. 2,465
770 427 2,656 95
Organization costs payable.............. 1,531
1,531 1,481 1,481 1,481
Accrued expenses and other payables..... 25,270
7,431 5,792 16,678 12,530
------------- --
- ---------- ------------ ------------- ------------
Total Liabilities..................... 1,242,533
262,009 99,093 279,575 48,038
------------- --
- ---------- ------------ ------------- ------------
NET ASSETS.............................. $314,101,243
$73,869,877 $30,119,181 $173,086,160 $10,328,565
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Investments, at cost (Note 1)........... $314,824,177
$74,056,253 $29,927,816 $172,105,979 $10,199,246
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
100%
GOVERNMENT GOVERNMENT
PRIME PRIME VALUE OBLIGATIONS OBLIGATIONS
MONEY MONEY MARKET MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND FUND
---
- ------------ --------------- ------------- -----------
- -
NET ASSETS consist of:
<S> <C>
<C> <C> <C>
Accumulated net realized gain/(loss) on investments
sold................................................. $
831 $ (305,889) $ (2,597) $ 10
Par value..............................................
2,164,500 1,329,134 109,817 7,850
Paid-in capital in excess of par value.................
2,162,335,051 1,327,804,866 109,706,812
7,842,555
---
- ------------ --------------- ------------- -----------
- -
$
2,164,500,382 $ 1,328,828,111 $109,814,032
$7,850,415
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
NET ASSETS:
Class A................................................ $
1,935,290,773 $ 1,319,787,920 $104,050,527
$7,850,115
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Class B................................................ $
209,471,386 $ 9,039,991 $ 5,763,305 $ 100
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Class C................................................ $
19,738,123 $ 100 $ 100 $ 100
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Class E................................................ $
100 $ 100 $ 100 $ 100
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
SHARES OUTSTANDING:
Class A................................................
1,935,290,116 1,320,089,484 104,051,804
7,850,105
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Class B................................................
209,471,230 9,044,316 5,764,625 100
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Class C................................................
19,738,105 100 100 100
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
Class E................................................
100 100 100 100
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
CLASS A SHARES:
Net asset value, offering and redemption price per
share................................................ $
1.00 $ 1.00 $ 1.00 $ 1.00
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
CLASS B SHARES:
Net asset value, offering and redemption price per
share................................................ $
1.00 $ 1.00 $ 1.00 $ 1.00
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
CLASS C SHARES:
Net asset value, offering and redemption price per
share................................................ $
1.00 $ 1.00 $ 1.00 $ 1.00
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
CLASS E SHARES:
Net asset value, offering and redemption price per
share................................................ $
1.00 $ 1.00 $ 1.00 $ 1.00
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
<TABLE>
<CAPTION>
100%
TREASURY
TREASURY CALIFORNIA
INSTRUMENTS
INSTRUMENTS TAX-FREE MUNICIPAL MUNICIPAL
MONEY MARKET
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND II
FUND FUND FUND FUND
------------- --
- ---------- ------------ ------------- ------------
NET ASSETS consist of:
<S> <C>
<C> <C> <C> <C>
Accumulated net realized gain/(loss) on
investments sold...................... $ (10) $
916 $ 2,478 $ 1,886 $ (374)
Par value............................... 314,101
73,869 30,117 173,084 10,329
Paid-in capital in excess of par
value................................. 313,787,152
73,795,092 30,086,586 172,911,190 10,318,610
------------- --
- ---------- ------------ ------------- ------------
$314,101,243
$73,869,877 $30,119,181 $173,086,160 $10,328,565
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
NET ASSETS:
Class A................................. $281,870,236
$73,869,577 $30,118,881 $173,085,860 $10,328,265
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Class B................................. $ 32,230,807 $
100 $ 100 $ 100 $ 100
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Class C................................. $ 100 $
100 $ 100 $ 100 $ 100
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Class E................................. $ 100 $
100 $ 100 $ 100 $ 100
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
SHARES OUTSTANDING:
Class A................................. 281,870,246
73,868,661 30,116,403 173,083,974 10,328,639
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Class B................................. 32,230,807
100 100 100 100
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Class C................................. 100
100 100 100 100
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
Class E................................. 100
100 100 100 100
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
CLASS A SHARES:
Net asset value, offering and redemption
price per share....................... $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
CLASS B SHARES:
Net asset value, offering and redemption
price per share....................... $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
CLASS C SHARES:
Net asset value, offering and redemption
price per share....................... $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
CLASS E SHARES:
Net asset value, offering and redemption
price per share....................... $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
------------- --
- ---------- ------------ ------------- ------------
------------- --
- ---------- ------------ ------------- ------------
</TABLE>
See Notes to Financial Statements.
35
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
FLOATING RATE SHORT
DURATION
U.S. U.S.
GOVERNMENT GOVERNMENT
FUND FUND
------------- ------------
- --
ASSETS:
<S> <C> <C>
Investments, at value
See accompanying schedules:
Securities................ $41,852,245
$28,991,157
Repurchase agreements..... 2,148,000
4,228,000
------------- ------------
- --
Total investments............. 44,000,245
33,219,157
Cash.......................... 74,669
34,373
Receivable from Investment
Adviser (Note 2)........... 30,377
20,709
Interest recievable........... 282,041
153,836
Unamortized organization costs
(Note 6)................... 56,000
46,667
Receivable for investment
securities sold............ 4,650,313 --
------------- ------------
- --
Total Assets................ 49,093,645
33,474,742
------------- ------------
- --
LIABILITIES:
Net unrealized depreciation of
futures contracts (Note
1)......................... 76,325
34,900
Administration fee payable
(Note 2)................... 1,866
1,154
Service fee payable (Note
3)......................... --
390
Transfer Agent fee payable.... 2,400
1,650
Custodian fees payable (Note
2)......................... 1,360
1,255
Dividends payable............. 207,008
139,378
Organization costs payable.... 4,578
5,856
Accrued Trustees' fees and
expenses (Note 2).......... 385
275
Accrued expenses and other
payables................... 26,540
16,245
------------- ------------
- --
Total Liabilities........... 320,462
201,103
------------- ------------
- --
NET ASSETS.................... $48,773,183
$33,273,639
------------- ------------
- --
------------- ------------
- --
Investments, at cost (Note
1)......................... $44,087,564
$33,283,995
------------- ------------
- --
------------- ------------
- --
</TABLE>
See Notes to Financial Statements.
36
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
FLOATING RATE SHORT
DURATION
U.S. U.S.
GOVERNMENT GOVERNMENT
FUND FUND
------------- ------------
- --
NET ASSETS consist of:
<S> <C> <C>
Undistributed net investment
income/(distributions in
excess of net investment
income).................... $ 27,628 $
(17,356)
Accumulated net realized loss
on investments sold........ (77,881)
(21,257)
Net unrealized depreciation of
investments and futures
contracts.................. (163,644)
(99,738)
Par value..................... 4,907 3,344
Paid-in capital in excess of
par value.................. 48,982,173 33,408,646
------------- ------------
- --
$48,773,183 $33,273,639
------------- ------------
- --
------------- ------------
- --
NET ASSETS:
Premier....................... $48,773,084 $31,371,537
------------- ------------
- --
------------- ------------
- --
Select........................ $ 99.40 $ 1,902,102
------------- ------------
- --
------------- ------------
- --
SHARES OUTSTANDING:
Premier....................... 4,906,717 3,152,701
------------- ------------
- --
------------- ------------
- --
Select........................ 10 191,182
------------- ------------
- --
------------- ------------
- --
PREMIER SHARES:
Net asset value, offering and
redemption price per
share...................... $ 9.94 $ 9.95
------------- ------------
- --
------------- ------------
- --
SELECT SHARES:
Net asset value, offering and
redemption price per
share...................... $ 9.94 $ 9.95
------------- ------------
- --
------------- ------------
- --
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT
PRIME VALUE OBLIGATIONS
PRIME MONEY MONEY MARKET MONEY
MARKET FUND FUND MARKET FUND
---
- --------- ------------ -----------
INVESTMENT INCOME:
<S> <C>
<C> <C>
Interest...............................................
$50,517,884 $42,249,261 $1,793,458
---
- --------- ------------ -----------
EXPENSES:
Investment Advisory fee (Note 2).......................
1,322,307 1,127,463 46,434
Administration fee (Note 2)............................
1,322,307 1,127,463 46,434
Service fee (Note 3)...................................
389,509 22,791 6,216
Transfer Agent fees (Note 2)...........................
319,085 292,099 8,149
Custodian fees (Note 2)................................
138,625 119,457 13,182
Shareholder reports expense............................
- -- -- --
Registration and filing fees...........................
- -- -- 14,425
Trustees' fees and expenses (Note 2)...................
35,463 33,307 1,266
Amortization of organization costs (Note 6)............
6,414 6,414 6,414
Rating service fees....................................
16,306 -- --
Other..................................................
149,417 129,545 2,656
Fees waived by Investment Adviser, Administrator and
Custodian and/or expenses reimbursed by Investment
Adviser (Note 2).....................................
(2,132,442) (2,108,315) (67,885)
---
- --------- ------------ -----------
Total expenses.......................................
1,566,991 750,224 77,291
---
- --------- ------------ -----------
NET INVESTMENT INCOME..................................
48,950,893 41,499,037 1,716,167
---
- --------- ------------ -----------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS (Note 1).......
(18,926) (307,465) (4,414)
---
- --------- ------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...
$48,931,967 $41,191,572 $1,711,753
---
- --------- ------------ -----------
---
- --------- ------------ -----------
</TABLE>
See Notes to Financial Statements.
38
<PAGE>
<TABLE>
<CAPTION>
100%
GOVERNMENT
100%
OBLIGATIONS
TREASURY TREASURY
CALIFORNIA
MONEY
INSTRUMENTS INSTRUMENTS TAX-FREE MUNICIPAL
MUNICIPAL
MARKET
MONEY MARKET MONEY MONEY MONEY
MONEY
FUND
FUND II MARKET FUND MARKET FUND MARKET FUND
MARKET FUND
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
INVESTMENT INCOME:
<S> <C> <C>
<C> <C> <C> <C>
Interest................................ $364,891
$5,240,648 $1,338,546 $602,476 $3,961,529
$131,827
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
EXPENSES:
Investment Advisory fee (Note 2)........ 10,399
140,955 37,683 23,206 145,418
5,182
Administration fee (Note 2)............. 10,399
140,955 37,683 23,206 145,418
5,182
Service fee (Note 3).................... --
44,569 -- -- -- --
Transfer Agent fees (Note 2)............ --
28,882 7,964 2,298 34,939
557
Custodian fees (Note 2)................. 6,249
22,314 13,085 15,344 42,195
4,625
Shareholder reports expense............. --
- -- -- -- --
7,000
Registration and filing fees............ 13,528
- -- 14,467 13,227 -- --
Trustees' fees and expenses (Note 2).... 335
3,452 1,128 636 3,954
145
Amortization of organization costs (Note
6).................................... 6,414
6,414 6,414 6,414 6,414
6,414
Rating service fees..................... --
29,000 -- -- -- --
Other................................... 5,607
32,597 4,583 332 28,494
74
Fees waived by Investment Adviser,
Administrator and Custodian and/or
expenses reimbursed by Investment
Adviser (Note 2)...................... (36,302 )
(306,152) (65,007) (47,533) (202,516)
(20,899)
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
Total expenses........................ 16,629
142,986 58,000 37,130 204,316
8,280
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
NET INVESTMENT INCOME................... 348,262
5,097,662 1,280,546 565,346 3,757,213
123,547
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
NET REALIZED GAIN/(LOSS) ON INVESTMENTS
(Note 1).............................. 102
- -- (5,433) (2,318) (16,617)
(309)
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $348,364
$5,097,662 $1,275,113 $563,028 $3,740,596
$123,238
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
---------- -----
- --------- ----------- ----------- ----------- ------
- -----
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
100%
GOVERNMENT GOVERNMENT
PRIME PRIME VALUE OBLIGATIONS OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET MONEY
MARKET
FUND FUND FUND FUND
---
- ------------ --------------- ------------- -----------
- -
<S> <C>
<C> <C> <C>
Net investment income.................................. $
48,950,893 $ 41,499,037 $ 1,716,167 $ 348,262
Net realized gain/(loss) on investments sold during the
period...............................................
(18,926) (307,465) (4,414) 102
---
- ------------ --------------- ------------- -----------
- -
Net increase in net assets resulting from operations...
48,931,967 41,191,572 1,711,753 348,364
Distributions to shareholders from net investment
income:
Class A..............................................
(43,573,980) (41,181,970) (1,627,620) (348,262)
Class B..............................................
(5,074,017) (317,067) (88,547) --
Class C..............................................
(302,896) -- -- --
Net increase/(decrease) in net assets from share
transactions (Note 5):
Class A..............................................
(931,045,104) (2,661,092,722) (17,478,723)
(33,859,265)
Class B..............................................
(141,192,932) (8,459,589) 5,764,525 --
Class C..............................................
19,738,005 -- -- --
Class D..............................................
- -- (10,123) (100) --
Class E..............................................
100 100 100 100
---
- ------------ --------------- ------------- -----------
- -
Net increase/(decrease) in net assets..................
(1,052,518,857) (2,669,869,799) (11,718,612)
(33,859,063)
NET ASSETS:
Beginning of period....................................
3,217,019,239 3,998,697,910 121,532,644
41,709,478
---
- ------------ --------------- ------------- -----------
- -
End of period.......................................... $
2,164,500,382 $ 1,328,828,111 $109,814,032 $
7,850,415
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
</TABLE>
See Notes to Financial Statements.
40
<PAGE>
<TABLE>
<CAPTION>
TREASURY
100% TREASURY CALIFORNIA
INSTRUMENTS
INSTRUMENTS TAX-FREE MUNICIPAL MUNICIPAL
MONEY MARKET
MONEY MARKET MONEY MARKET MONEY MARKET MONEY
MARKET
FUND II
FUND FUND FUND FUND
-------------- -
- ------------ ------------- -------------- ------------
<S> <C>
<C> <C> <C> <C>
Net investment income................... $ 5,097,662 $
1,280,546 $ 565,346 $ 3,757,213 $ 123,547
Net realized gain/(loss) on investments
sold during the period................ --
(5,433) (2,318) (16,617) (309)
-------------- -
- ------------ ------------- -------------- ------------
Net increase in net assets resulting
from operations....................... 5,097,662
1,275,113 563,028 3,740,596 123,238
Distributions to shareholders from net
investment income:
Class A............................... (4,499,615)
(1,280,546) (565,346) (3,757,213) (123,547)
Class B............................... (598,047)
- -- -- -- --
Class C............................... --
- -- -- -- --
Net increase/(decrease) in net assets
from share transactions (Note 5):
Class A............................... 125,088,497
(53,587,925) (29,613,387) (177,872,266) 753,284
Class B............................... (1,630,782)
- -- -- -- --
Class C............................... --
- -- -- -- --
Class D............................... --
- -- -- (100) --
Class E............................... 100
100 100 100 100
-------------- -
- ------------ ------------- -------------- ------------
Net increase/(decrease) in net assets... 123,457,815
(53,593,258) (29,615,605) (177,888,883) 753,075
NET ASSETS:
Beginning of period..................... 190,643,428
127,463,135 59,734,786 350,975,043 9,575,490
-------------- -
- ------------ ------------- -------------- ------------
End of period........................... $314,101,243 $
73,869,877 $ 30,119,181 $ 173,086,160 $10,328,565
-------------- -
- ------------ ------------- -------------- ------------
-------------- -
- ------------ ------------- -------------- ------------
</TABLE>
See Notes to Financial Statements.
41
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
FLOATING
RATE SHORT DURATION
U.S.
U.S.
GOVERNMENT GOVERNMENT
FUND* FUND*
--------
- ----- --------------
INVESTMENT INCOME:
<S> <C>
<C>
Interest.......................................... $
746,721 $ 511,272
--------
- ----- --------------
EXPENSES:
Investment Advisory fee (Note 2)..................
44,260 31,242
Administration fee (Note 2).......................
14,753 10,414
Service fees (Note 3)............................. --
417
Transfer Agent fees (Note 2)......................
3,721 2,685
Custodian fees (Note 2)...........................
6,278 4,662
Registration and filing fees......................
18,405 12,905
Trustees' fees and expenses (Note 2)..............
395 285
Amortization of organization costs (Note 6).......
4,000 3,333
Rating service fees...............................
4,583 4,583
Other.............................................
5,682 929
Fees waived by Investment Adviser, Administrator
and Custodian and expenses reimbursed by
Investment Adviser (Note 2)....................
(88,389) (61,599)
--------
- ----- --------------
Total expenses..................................
13,688 9,856
--------
- ----- --------------
NET INVESTMENT INCOME.............................
733,033 501,416
--------
- ----- --------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(Notes 1 and 4)
Net realized loss on investments sold.............
(77,881) (21,257)
--------
- ----- --------------
Net change in unrealized depreciation of:
Securities......................................
(87,319) (64,838)
Futures contracts...............................
(76,325) (34,900)
--------
- ----- --------------
Net unrealized depreciation of investments........
(163,644) (99,738)
--------
- ----- --------------
Net realized and unrealized loss on investments...
(241,525) (120,995)
--------
- ----- --------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS..................................... $
491,508 $ 380,421
--------
- ----- --------------
--------
- ----- --------------
<FN>
- ------------------------------
* The Floating Rate U.S. Government Fund and Short Duration
U.S. Government Fund
commenced operations on March 28, 1994.
</TABLE>
See Notes to Financial Statements.
42
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
FLOATING
RATE SHORT DURATION
U.S.
U.S.
GOVERNMENT GOVERNMENT
FUND* FUND*
--------
- ----- --------------
<S> <C>
<C>
Net investment income............................. $
733,033 $ 501,416
Net realized loss on investments sold during the
period.........................................
(77,881) (21,257)
Net unrealized depreciation of investments and
futures contracts during the period............
(163,644) (99,738)
--------
- ----- --------------
Net increase in net assets resulting from
operations.....................................
491,508 380,421
Distributions to shareholders from net investment
income:
Premier.........................................
(705,405) (510,571)
Select.......................................... --
(8,201)
Net increase in net assets from share transactions
(Note 5):
Premier.........................................
48,986,980 31,511,637
Select.......................................... --
1,900,253
--------
- ----- --------------
Net increase in net assets........................
48,773,083 33,273,539
NET ASSETS:
Beginning of period...............................
100 100
--------
- ----- --------------
End of period (including undistributed net
investment income/(distributions in excess of
net investment income) of $27,628 and
($17,356), respectively).......................
$48,773,183 $33,273,639
--------
- ----- --------------
--------
- ----- --------------
- ------------------------------
* The Floating Rate U.S. Government Fund and Short Duration
U.S. Government Fund
commenced operations on March 28, 1994.
</TABLE>
See Notes to Financial Statements.
43
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JANUARY 31, 1994*
<TABLE>
<CAPTION>
100%
GOVERNMENT GOVERNMENT
PRIME PRIME VALUE OBLIGATIONS OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET MONEY
MARKET
FUND FUND FUND FUND
---
- ------------ --------------- ------------- -----------
- -
<S> <C>
<C> <C> <C>
Net investment income.................................. $
36,733,367 $ 35,712,810 $ 2,280,080 $ 849,394
Net realized gain/(loss) on investments sold during the
period...............................................
19,757 1,576 1,817 (92)
---
- ------------ --------------- ------------- -----------
- -
Net increase in net assets resulting from operations...
36,753,124 35,714,386 2,281,897 849,302
Distributions to shareholders from net investment
income:
Class A..............................................
(35,241,368) (35,371,441) (2,270,996) (849,394)
Class B..............................................
(1,490,671) (341,369) (9,084) --
Class C..............................................
(1,328) -- -- --
Class D..............................................
- -- -- -- --
Net increase in net assets from share transactions
(Note 5):
Class A..............................................
2,866,238,320 3,981,182,129 121,530,427
41,709,270
Class B..............................................
350,664,162 17,503,805 -- --
Class C..............................................
- -- -- -- --
Class D..............................................
- -- 10,100 100 --
---
- ------------ --------------- ------------- -----------
- -
Net increase in net assets.............................
3,216,922,239 3,998,697,610 121,532,344
41,709,178
NET ASSETS:
Beginning of period....................................
97,000 300 300 300
---
- ------------ --------------- ------------- -----------
- -
End of period.......................................... $
3,217,019,239 $ 3,998,697,910 $121,532,644
$41,709,478
---
- ------------ --------------- ------------- -----------
- -
---
- ------------ --------------- ------------- -----------
- -
</TABLE>
- ------------------------------
* The Trust commenced operations on February 8, 1993.
See Notes to Financial Statements.
44
<PAGE>
<TABLE>
<CAPTION>
TREASURY
100% TREASURY CALIFORNIA
INSTRUMENTS
INSTRUMENTS TAX-FREE MUNICIPAL MUNICIPAL
MONEY MARKET
MONEY MARKET MONEY MARKET MONEY MARKET MONEY
FUND II
FUND FUND FUND MARKET FUND
------------- --
- ----------- ------------ ------------- -----------
<S> <C>
<C> <C> <C> <C>
Net investment income................... $ 2,986,270 $
2,124,699 $ 371,826 $ 2,619,490 $ 155,648
Net realized gain/(loss) on investments
sold during the period................ (10)
6,349 4,796 18,503 (65)
------------- --
- ----------- ------------ ------------- -----------
Net increase in net assets resulting
from operations....................... 2,986,260
2,131,048 376,622 2,637,993 155,583
Distributions to shareholders from net
investment income:
Class A............................... (2,574,727)
(2,114,345) (371,826) (2,619,490) (155,063)
Class B............................... (411,543)
(10,354) -- -- (585)
Class C............................... --
- -- -- -- --
Class D............................... --
- -- -- -- --
Net increase in net assets from share
transactions (Note 5):
Class A............................... 156,781,648
127,456,486 59,729,690 350,956,140 9,575,255
Class B............................... 33,861,490
- -- -- -- --
Class C............................... --
- -- -- -- --
Class D............................... --
- -- -- 100 --
------------- --
- ----------- ------------ ------------- -----------
Net increase in net assets.............. 190,643,128
127,462,835 59,734,486 350,974,743 9,575,190
NET ASSETS:
Beginning of period..................... 300
300 300 300 300
------------- --
- ----------- ------------ ------------- -----------
End of period........................... $190,643,428
$127,463,135 $59,734,786 $350,975,043 $9,575,490
------------- --
- ----------- ------------ ------------- -----------
------------- --
- ----------- ------------ ------------- -----------
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX MONTHS
SIX MONTHS SIX MONTHS
ENDED PERIOD
ENDED PERIOD ENDED PERIOD
7/31/94 ENDED
7/31/94 ENDED 7/31/94## ENDED
(UNAUDITED) 1/31/94*
(UNAUDITED) 1/31/94* (UNAUDITED) 1/31/94*
------------ -------------
- ---------- ---------- ----------- ------------
<S> <C> <C>
<C> <C> <C> <C>
CLASS A CLASS A
CLASS B CLASS B CLASS C CLASS C
------------ -------------
- ---------- ---------- ----------- ------------
Net asset value, beginning
of period.................. $ 1.00 $ 1.00
$ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ -------------
- ---------- ---------- ----------- ------------
Net investment income+++.... 0.0188 0.0310
0.0176 0.0110 0.0065 0.0001
Dividends from net
investment income.......... (0.0188) (0.0310)
(0.0176) (0.0110) (0.0065) (0.0001)
------------ -------------
- ---------- ---------- ----------- ------------
Net asset value, end of
period..................... $ 1.00 $ 1.00
$ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ -------------
- ---------- ---------- ----------- ------------
------------ -------------
- ---------- ---------- ----------- ------------
Total return++.............. 1.90% 3.14%
1.77% 0.99% 0.64% -- ***
------------ -------------
- ---------- ---------- ----------- ------------
------------ -------------
- ---------- ---------- ----------- ------------
Ratios to average net
assets/supplemental data:
Net assets, end of period
(in 000's)............... $1,935,291 $2,866,353
$209,471 $350,666 $ 19,738 -- #
Ratio of net investment
income to average net
assets................... 3.73%+ 3.16%+
3.48%+ 2.91%+ 3.38%+ 2.81%+
Ratio of operating
expenses to average net
assets**................. 0.09%+ 0.11%+
0.34%+ 0.36%+ 0.44%+ 0.46%+
<FN>
- ------------------------
* The Prime Money Market Fund Class A, Class B and Class C
Shares commenced
operations on February 8, 1993, September 2, 1993 and
December 27, 1993,
respectively.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A,
Class B and Class C
for the six month period ended July 31, 1994 were 0.25%,
0.50% and 0.60%,
respectively, and for the period ended January 31, 1994
were 0.33%, 0.58%
and 0.68%, respectively.
*** All shares offered to the public on December 27, 1993
were redeemed on
December 28, 1993; therefore total return deemed not to
be meaningful.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A,
Class B and Class C
for the six month period ended July 31, 1994 was
$0.0181, $0.0168 and
$0.0062, respectively, and for the period ended January
31, 1994 was
$0.0289, $0.0102 and $0.0001, respectively.
# Total net assets for Class C were $100 at January 31,
1994.
## Total return represents period from June 1, 1994 to July
31, 1994.
</TABLE>
See Notes to Financial Statements.
46
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
PRIME VALUE MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED PERIOD
7/31/94 ENDED 7/31/94 ENDED
(UNAUDITED) 1/31/94* (UNAUDITED) 1/31/94*
- ------------ ------------- ---------- ----------
<S>
<C> <C> <C> <C>
CLASS A CLASS A CLASS B CLASS B
- ------------ ------------- ---------- ----------
Net asset value, beginning of period......................
$ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------ ------------- ---------- ----------
Net investment income+++..................................
0.0189 0.0315 0.0177 0.0125
Dividends from net investment income......................
(0.0189) (0.0315) (0.0177) (0.0125)
- ------------ ------------- ---------- ----------
Net asset value, end of period............................
$ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------ ------------- ---------- ----------
- ------------ ------------- ---------- ----------
Total return++............................................
1.90% 3.21% 1.78% 1.26%
- ------------ ------------- ---------- ----------
- ------------ ------------- ---------- ----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$1,319,788 $3,981,184 $ 9,040 $ 17,504
Ratio of net investment income to average net assets....
3.68%+ 3.23%+ 3.43%+ 2.98%+
Ratio of operating expenses to average net assets**.....
0.06%+ 0.07%+ 0.31%+ 0.32%+
<FN>
- ------------------------
* The Prime Value Money Market Fund Class A and Class B
Shares commenced
operations on February 8, 1993 and September 1, 1993,
respectively.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A and
Class B for the six
month period ended July 31, 1994 were 0.25% and 0.50%,
respectively, and for
the period ended January 31, 1994 were 0.36% and 0.61%,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
and Class B for the
six month period ended July 31, 1994 was $0.0179 and
$0.0167, respectively,
and for the period ended January 31, 1994 was $0.0287
and $0.0113,
respectively.
</TABLE>
See Notes to Financial Statements.
47
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
GOVERNMENT OBLIGATIONS MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED PERIOD
7/31/94 ENDED 7/31/94 ENDED
(UNAUDITED) 1/31/94* (UNAUDITED) 1/31/94*
- ----------- ----------- ----------- -----------
<S>
<C> <C> <C> <C>
CLASS A CLASS A CLASS B CLASS B
- ----------- ----------- ----------- -----------
Net asset value, beginning of period......................
$ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------- ----------- ----------- -----------
Net investment income+++..................................
0.0184 0.0309 0.0172 0.0091
Dividends from net investment income......................
(0.0184) (0.0309) (0.0172) (0.0091)
- ----------- ----------- ----------- -----------
Net asset value, end of period............................
$ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- -----------
Total return++............................................
1.85% 3.14% 1.73% 0.90%
- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- -----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$104,051 $121,532 $ 5,763 -- #
Ratio of net investment income to average net assets....
3.71%+ 3.18%+ 3.46%+ 2.93%+
Ratio of operating expenses to average net assets**.....
0.15%+ 0.03%+ 0.40%+ 0.28%+
<FN>
- ------------------------
* The Government Obligations Money Market Fund Class A and
Class B Shares
commenced operations on February 8, 1993 and August 16,
1993, respectively.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A and
Class B for the six
month period ended July 31, 1994 were 0.30% and 0.55%,
respectively, and for
the period ended January 31, 1994 were 0.53% and 0.78%,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
and Class B for the
six month period ended July 31, 1994 was $0.0177 and
$0.0165, respectively,
and for the period ended January 31, 1994 was $0.0261
and $0.0075,
respectively.
# Total net assets for Class B were $100 at January 31,
1994.
</TABLE>
See Notes to Financial Statements.
48
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
100% GOVERNMENT OBLIGATIONS MONEY MARKET
FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
7/31/94 ENDED
(UNAUDITED) 1/31/94*
- ----------- -----------
<S>
<C> <C>
CLASS A CLASS A
- ----------- -----------
Net asset value, beginning of period......................
$ 1.00 $ 1.00
- ----------- -----------
Net investment income+++..................................
0.0175 0.0304
Dividends from net investment income......................
(0.0175) (0.0304)
- ----------- -----------
Net asset value, end of period............................
$ 1.00 $ 1.00
- ----------- -----------
- ----------- -----------
Total return++............................................
1.76% 3.09%
- ----------- -----------
- ----------- -----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$ 7,850 $ 41,709
Ratio of net investment income to average net assets....
3.35%+ 3.11%+
Ratio of operating expenses to average net assets**.....
0.16%+ 0.06%+
<FN>
- ------------------------
* The 100% Government Obligations Money Market Fund Class
A Shares commenced
operations on February 8, 1993.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A for
the six month
period ended July 31, 1994 and for the period ended
January 31, 1994 were
0.51% and 0.92%, respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
for the six month
period ended July 31, 1994 was $0.0157, and for the
period ended January 31,
1994 was $0.0220.
</TABLE>
See Notes to Financial Statements.
49
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
TREASURY INSTRUMENTS MONEY MARKET FUND II
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED PERIOD
7/31/94 ENDED 7/31/94 ENDED
(UNAUDITED) 1/31/94* (UNAUDITED) 1/31/94*
- ----------- ----------- ----------- -----------
<S>
<C> <C> <C> <C>
CLASS A CLASS A CLASS B CLASS B
- ----------- ----------- ----------- -----------
Net asset value, beginning of period......................
$ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------- ----------- ----------- -----------
Net investment income+++..................................
0.0180 0.0300 0.0167 0.0198
Dividends from net investment income......................
(0.0180) (0.0300) (0.0167) (0.0198)
- ----------- ----------- ----------- -----------
Net asset value, end of period............................
$ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- -----------
Total return++............................................
1.81% 3.04% 1.68% 2.00%
- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- -----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$281,870 $156,782 $ 32,231 $ 33,862
Ratio of net investment income to average net assets....
3.65%+ 3.12%+ 3.40%+ 2.87%+
Ratio of operating expenses to average net assets**.....
0.07%+ 0.03%+ 0.32%+ 0.28%+
<FN>
- ------------------------
* The Treasury Instruments Money Market Fund II Class A
and Class B Shares
commenced operations on February 8, 1993 and May 24,
1993, respectively.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A and
Class B for the six
month period ended July 31, 1994 were 0.22% and 0.47%,
respectively, and for
the period ended January 31, 1994 were 0.49% and 0.74%,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
and Class B for the
six month period ended July 31, 1994 was $0.0169 and
$0.0157, respectively,
and for the period ended January 31, 1994 was $0.0256
and $0.0166,
respectively.
</TABLE>
See Notes to Financial Statements.
50
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
100% TREASURY INSTRUMENTS MONEY MARKET
FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD PERIOD
7/31/94 ENDED ENDED
(UNAUDITED) 1/31/94* 1/31/94*
- ----------- ----------- -----------
<S>
<C> <C> <C>
CLASS A CLASS A CLASS B
- ----------- ----------- -----------
Net asset value, beginning of period......................
$ 1.00 $ 1.00 $ 1.00
- ----------- ----------- -----------
Net investment income+++..................................
0.0170 0.0292 0.0149
Dividends from net investment income......................
(0.0170) (0.0292) (0.0149)
- ----------- ----------- -----------
Net asset value, end of period............................
$ 1.00 $ 1.00 $ 1.00
- ----------- ----------- -----------
- ----------- ----------- -----------
Total return++............................................
1.72% 2.95% 1.55%
- ----------- ----------- -----------
- ----------- ----------- -----------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$ 73,870 $127,463 -- #
Ratio of net investment income to average net assets....
3.40%+ 3.03%+ 2.78%+
Ratio of operating expenses to average net assets**.....
0.15%+ 0.05%+ 0.30%+
<FN>
- ------------------------
* The 100% Treasury Instruments Money Market Fund Class A
and Class B Shares
commenced operations on February 8, 1993 and May 2,
1993, respectively.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A for
the six month
period ended July 31, 1994 were 0.33%, and for Class A
and Class B for the
period ended January 31, 1994 were 0.51% and 0.76%,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
for the six month
period ended July 31, 1994 was $0.0168, and for Class A
and Class B for the
period ended January 31, 1994 was $0.0248 and $0.0124,
respectively.
# Total net assets for Class B were $100 at January 31,
1994.
</TABLE>
See Notes to Financial Statements.
51
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED PERIOD
7/31/94 ENDED
(UNAUDITED) 1/31/94*
- --------- ---------
<S>
<C> <C>
CLASS A CLASS A
- --------- ---------
Net asset value, beginning of period......................
$ 1.00 $ 1.00
- --------- ---------
Net investment income+++..................................
0.0122 0.0228
Dividends from net investment income......................
(0.0122) (0.0228)
- --------- ---------
Net asset value, end of period............................
$ 1.00 $ 1.00
- --------- ---------
- --------- ---------
Total return++............................................
1.23% 2.30%
- --------- ---------
- --------- ---------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$ 30,119 $ 59,735
Ratio of net investment income to average net assets....
2.44%+ 2.38%+
Ratio of operating expenses to average net assets**.....
0.16%+ 0.11%+
<FN>
- ------------------------
* The Tax-Free Money Market Fund Class A Shares commenced
operations on
February 8, 1993.
** Annualized expense ratio before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A for
the six month
period ended July 31, 1994 and for the period ended
January 31, 1994 were
0.36% and 1.52%, respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
for the six month
period ended July 31, 1994 was $0.0112, and for the
period ended January 31,
1994 was $0.0093.
</TABLE>
See Notes to Financial Statements.
52
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED PERIOD
7/31/94 ENDED
(UNAUDITED) 1/31/94*
- --------- ---------
<S>
<C> <C>
CLASS A CLASS A
- --------- ---------
Net asset value, beginning of period......................
$ 1.00 $ 1.00
- --------- ---------
Net investment income+++..................................
0.0129 0.0243
Dividends from net investment income......................
(0.0129) (0.0243)
- --------- ---------
Net asset value, end of period............................
$ 1.00 $ 1.00
- --------- ---------
- --------- ---------
Total return++............................................
1.31% 2.46%
- --------- ---------
- --------- ---------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$173,086 $ 350,975
Ratio of net investment income to average net assets....
2.58%+ 2.53%+
Ratio of operating expenses to average net assets++.....
0.14%+ 0.13%+
<FN>
- ------------------------
* The Municipal Money Market Fund Class A Shares commenced
operations on
February 8, 1993.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A for
the six month
period ended July 31, 1994 and for the period ended
January 31, 1994 were
0.28% and 0.51%, respectively.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
for the six month
period ended July 31, 1994 was $0.0122, and for the
period ended January 31,
1994 was $0.0201.
</TABLE>
See Notes to Financial Statements.
53
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
CALIFORNIA MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED PERIOD PERIOD
7/31/94 ENDED ENDED
(UNAUDITED) 1/31/94* 1/31/94*
- --------- --------- ---------
<S>
<C> <C> <C>
CLASS A CLASS A CLASS B
- --------- --------- ---------
Net asset value, beginning of period......................
$ 1.00 $ 1.00 $ 1.00
- --------- --------- ---------
Net investment income+++..................................
0.0119 0.0225 0.0003
Dividends from net investment income......................
(0.0119) (0.0225) (0.0003)
- --------- --------- ---------
Net asset value, end of period............................
$ 1.00 $ 1.00 $ 1.00
- --------- --------- ---------
- --------- --------- ---------
Total return++............................................
1.19% 2.29% --***
- --------- --------- ---------
- --------- --------- ---------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$ 10,329 $ 9,575 --#
Ratio of net investment income to average net assets....
2.39%+ 2.31%+ 2.06%+
Ratio of operating expenses to average net assets**.....
0.16%+ 0.09%+ 0.34%+
<FN>
- ------------------------
* The California Municipal Money Market Fund Class A and
Class B Shares
commenced operations on February 8, 1993 and January 6,
1993, respectively.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/or Transfer Agent and/or
expenses reimbursed by
the Investment Adviser and Administrator for Class A for
the six month
period ended July 31, 1994 were 0.56%, and for Class A
and Class B for the
period ended January 31, 1994 were 1.80% and 2.05%,
respectively.
*** All shares offered to the public on January 6, 1994 were
redeemed on January
11, 1994; therefore total return deemed not to be
meaningful.
+ Annualized.
++ Total return represents aggregate total return for the
periods indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator, Custodian and/ or Transfer Agent and/or
expenses reimbursed
by the Investment Adviser and Administrator for Class A
for the six month
period ended July 31, 1994 was $0.0099, and for Class A
and Class B for the
period ended January 31, 1994 was $0.0058 and $0.0001,
respectively.
# Total net assets for Class B were $100 at January 31,
1994.
</TABLE>
See Notes to Financial Statements.
54
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
FLOATING RATE U.S. GOVERNMENT FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
7/31/94*
(UNAUDITED)
- --------
<S>
<C>
PREMIER
- --------
Net asset value, beginning of period......................
$ 10.00
- --------
Net investment income+++..................................
0.17
Net realized and unrealized loss on investments...........
(0.07)
- --------
Net increase in net assets resulting from investment
operations...............................................
0.10
Dividends from net investment income......................
(0.16)
- --------
Net asset value, end of period............................
$ 9.94
- --------
- --------
Total return++............................................
1.03%
- --------
- --------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$48,773
Ratio of net investment income to average net assets....
5.00%+
Ratio of operating expenses to average net assets**.....
0.09%+
Portfolio turnover rate...................................
166%
<FN>
- ------------------------
* The Floating Rate U.S. Government Fund Premier Shares
commenced operations
on March 28, 1994.
** Annualized expense ratio before waiver of fees by the
Investment Adviser and
Administrator and expenses reimbursed by the Investment
Adviser for Premier
Shares for the period ended July 31, 1994 was 0.70%.
+ Annualized.
++ Total return represents aggregate total return for the
period indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser and
Administrator and expenses reimbursed by the Investment
Adviser for Premier
Shares for the period ended July 31, 1994 was $0.15.
</TABLE>
See Notes to Financial Statements.
55
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
SHORT DURATION U.S. GOVERNMENT FUND
<TABLE>
<CAPTION>
PERIOD PERIOD
ENDED ENDED
7/31/94* 7/31/94*
(UNAUDITED) (UNAUDITED)
- -------- --------
<S>
<C> <C>
PREMIER SELECT
- -------- --------
Net asset value, beginning of period......................
$ 10.00 $ 10.00
- -------- --------
Net investment income+++..................................
0.17 0.16
Net realized and unrealized loss on investments...........
(0.05) (0.05)
- -------- --------
Net increase in net assets resulting from investment
operations...............................................
0.12 0.11
Dividends from net investment income......................
(0.17) (0.16)
- -------- --------
Net asset value, end of period............................
$ 9.95 $ 9.95
- -------- --------
- -------- --------
Total return ++...........................................
1.21% 0.92%
- -------- --------
- -------- --------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)....................
$31,372 $ 1,902
Ratio of net investment income to average net assets....
4.82%+ 4.69%+
Ratio of operating expenses to average net assets**.....
0.09%+ 0.22%+
Portfolio turnover rate...................................
116% 116%
<FN>
- ------------------------
* The Short Duration U.S. Government Fund Premier and
Select Shares commenced
operations on March 28, 1994.
** Annualized expense ratios before waiver of fees by the
Investment Adviser,
Administrator and Custodian and expenses reimbursed by
Investment Adviser
for Premier and Select Shares for the period ended July
31, 1994 were 0.68%
and 0.81%, respectively.
+ Annualized.
++ Total return represents aggregate total return for the
period indicated.
+++ Net investment income before waiver of fees by the
Investment Adviser,
Administrator and Custodian and expenses reimbursed by
Investment Adviser
for Premier and Select Shares for the period ended July
31, 1994 was $0.14
and $0.14, respectively.
</TABLE>
See Notes to Financial Statements.
56
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
Notes to Financial Statements (unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Lehman Brothers Institutional Funds Group Trust
(the "Trust") was
established on November 25, 1992 as a Massachusetts
business trust. It is an
open-end management investment company, which consists of
eleven funds: Prime
Money Market Fund, Prime Value Money Market Fund,
Government Obligations Money
Market Fund, 100% Government Obligations Money Market Fund,
Treasury Instruments
Money Market Fund II, 100% Treasury Instruments Money
Market Fund, Tax-Free
Money Market Fund, Municipal Money Market Fund,
California Municipal Money
Market Fund, (collectively the "Money Market Funds"),
Floating Rate U.S.
Government Fund and Short Duration U.S. Government Fund (the
"Funds"). All Money
Market Funds currently offer four classes of shares: Class
A, Class B, Class C,
and Class E. The Prime Value Money Market Fund,
Government Obligations Money
Market Fund and Municipal Money Market Fund offered Class
D shares to certain
individual investors. As of March 28, 1994, Class D
shares were no longer
offered. The Floating Rate U.S. Government Fund and the
Short Duration U.S.
Government Fund currently offer two classes of shares:
Premier and Select
shares. Class A shares and Premier shares are sold to
institutional investors
that have not entered into servicing agreements. Class B,
Class C, Class E and
Select shares bear service fees. All classes of shares have
identical rights and
privileges except that Class B, Class C, Class E and
Select shares possess
certain exclusive voting rights on matters relating to
their respective service
fees. As of July 31, 1994, the Board of Trustees had
authorized the issuance of
a third class of shares for the Floating Rate U.S.
Government Fund and the Short
Duration U.S. Government Fund which are designated for
individual investors. As
of July 29, 1994, shares of the Treasury Instruments Money
Market Fund were no
longer sold to the public. The following is a summary of
significant accounting
policies consistently followed by the Funds in the
preparation of their
financial statements.
PORTFOLIO VALUATION: Securities of the Money Market
Funds are valued at
amortized cost, which approximates market value.
Amortized cost valuation
involves valuing a security at cost initially and,
thereafter, assuming a
constant amortization to maturity of any discount or
premium, as long as the
effect of fluctuating interest rates on the market value
of the instruments is
not significant.
For the Floating Rate U.S. Government Fund and the
Short Duration U.S.
Government Fund, portfolio securities for which market
quotations are readily
available will be valued on the basis of quotations provided
by dealers in such
securities or furnished by a pricing service. Portfolio
securities for which
market quotations are not readily available and other
assets will be valued at
fair value using methods determined in good faith by
the Investment Adviser
under the supervision of the Trustees and may include
yield equivalents or a
pricing matrix. Short-term obligations having 60 days or
less to maturity are
valued at amortized cost.
REPURCHASE AGREEMENTS: Certain Funds may engage in
repurchase agreement
transactions. The Fund values repurchase agreements at cost
and accrues interest
into interest receivable. Under the terms of a typical
repurchase agreement, the
Fund takes possession of the underlying debt obligation
subject to an obligation
of the seller to repurchase, and the Fund to resell,
the obligation at an
agreed-upon price and time, thereby determining the yield
during the Fund's
holding period. This arrangement results in a fixed rate
of return that is not
subject to market fluctuations during the Fund's holding
period. The value of
the collateral, taken as a part of the repurchase
agreement, is at least equal
at all times to the total amount of the repurchase
obligations, including
interest. In the event of counterparty default, the Fund
has the right to use
the collateral to offset losses incurred. There is potential
loss to the Fund in
the event the Fund is delayed or prevented from exercising
its rights to dispose
of the collateral securities, including the risk of a
possible decline in the
value of the underlying securities during the period
while the Fund seeks to
assert its rights. The Fund's Investment Adviser and
Administrator, acting under
the supervision of the Board of Trustees, reviews the
value of the collateral
and the creditworthiness of those banks and dealers with
which the Funds enter
into repurchase agreements to evaluate potential risks.
FUTURES CONTRACTS: The Floating Rate U.S. Government
Fund and the Short
Duration U.S. Government Fund may engage in futures
transactions. Upon entering
into a futures contract, the Fund is required to deposit
with the broker an
amount of cash or cash equivalents equal to a certain
percentage of the contract
amount. This
57
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
is known as the "initial margin." Subsequent payments
("variation margin") are
made or received by the Fund each day, depending on the
daily fluctuation of the
value of the contract. The daily changes in the
contract are recorded as
unrealized gains or losses. The Fund recognizes a realized
gain or loss when the
contract is closed.
There are several risks in connection with the use of
futures contracts as a
hedging device. The change in the value of futures
contracts primarily
corresponds with the value of their underlying
instruments, which may not
correlate with the change in the value of the hedged
instruments. In addition,
there is the risk the Fund may not be able to enter into a
closing transaction
because of an illiquid secondary market.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are
recorded as of the trade date. Realized gains and losses on
investments sold are
recorded on the basis of identified cost. Interest income
is recorded on the
accrual basis. Investment income and realized and
unrealized gains and losses
are allocated based upon the relative net assets of each
class of shares.
EXPENSES: Operating expenses directly attributable to a
class of shares are
charged to that class' operations. Expenses of the
Funds not directly
attributable to the operations of any class of shares are
prorated among the
classes to which the expense relates based on the relative
net assets of each
class of shares.
FEDERAL INCOME TAXES: The Funds intend to qualify as
regulated investment
companies by complying with the requirements of the
Internal Revenue Code of
1986, as amended and applicable to regulated
investment companies and by
distributing substantially all of their taxable income to
their shareholders.
Therefore, no Federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends
from net investment
income of each Fund are determined on a class level and are
declared daily and
paid monthly. The Money Market Funds do not expect to
realize any net long-term
capital gains and therefore do not contemplate payments of
any capital gains
dividends. Net capital gain distributions, if any, will be
made annually for the
Floating Rate U.S. Government Fund and the Short Duration
U.S. Government Fund.
Income dividends and capital gain distribution are
determined at fiscal year
end in accordance with income tax regulations which may
differ from generally
accepted accounting principles. These differences are
primarily due to differing
treatments of income and gains on various investment
securities held by the
Fund, timing differences and differing characterization of
distributions made by
the Fund as a whole.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER
RELATED PARTY
TRANSACTIONS
Lehman Brothers Global Asset Management Inc.
("LBGAM"), serves as the
Trust's Investment Adviser pursuant to Investment
Advisory Agreements dated
February 5, 1993 and January 3, 1994. LBGAM is a
wholly-owned subsidiary of
Lehman Brothers Holdings Inc. ("Holdings"). Prior to May
31, 1994, all of the
issued and outstanding common stock (representing 92% of
the voting stock) of
Holdings was held by American Express Company ("American
Express"). On May 31,
1994, American Express distributed to holders of common
stock of American
Express all outstanding shares of common stock of Holdings.
As of May 31, 1994,
Nippon Life Insurance Company owned 11.2% of the
outstanding voting securities
of Holdings. Under the Investment Advisory Agreements,
LBGAM is entitled to
receive a monthly fee at an annual rate of 0.10% of
the value of each
58
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Money Market Fund's average daily net assets and 0.30%
of the value of the
average daily net assets for the Floating Rate U.S.
Government Fund and the
Short Duration U.S. Government Fund. For the six months
ended July 31, 1994,
LBGAM voluntarily waived and reimbursed expenses as follows:
<TABLE>
<CAPTION>
FEES
WAIVED EXPENSES REIMBURSED
----
- -------- --------------------
<S> <C>
<C>
Prime Money Market Fund............................... $
939,996 -$-
Prime Value Money Market Fund.........................
1,093,295 --
Government Obligations Money Market Fund..............
19,538 --
100% Government Obligations Money Market Fund.........
10,399 13,383
Treasury Instruments Money Market Fund II.............
140,955 31,135
100% Treasury Instruments Money Market Fund...........
24,360 --
Tax-Free Money Market Fund............................
19,868 --
Municipal Money Market Fund...........................
61,116 --
California Municipal Money Market Fund................
5,182 9,872
Floating Rate U.S. Government Fund....................
44,260 30,377
Short Duration U.S. Government Fund...................
31,242 20,709
</TABLE>
The Shareholder Services Group, Inc. ("TSSG") a
wholly-owned subsidiary of
First Data Corporation ("FDC") serves as the Trust's
administrator pursuant to
an Administration Agreement. Under the Administration
Agreement TSSG is entitled
to receive a monthly fee at the annual rate of 0.10% of the
value of each Fund's
respective average daily net assets. TSSG also serves as
the Trust's Transfer
Agent and receives additional fees for such services.
Prior to the close of business on May 6, 1994, The
Boston Company Advisors,
Inc. served as the Trust's administrator and received
fees equivalent to the
current rate for its services.
For the six months ended July 31, 1994, TSSG waived
expenses as follows:
<TABLE>
<CAPTION>
FEES WAIVED
- ------------
<S>
<C>
Prime Money Market
Fund........................................................
....... $1,057,846
Prime Value Money Market
Fund........................................................
. 901,970
Government Obligations Money Market
Fund..............................................
37,147
100% Government Obligations Money Market
Fund......................................... 8,320
Treasury Instruments Money Market Fund
II............................................. 112,762
100% Treasury Instruments Money Market
Fund........................................... 30,147
Tax-Free Money Market
Fund........................................................
.... 18,565
Municipal Money Market
Fund........................................................
... 116,335
California Municipal Money Market
Fund................................................
4,145
Floating Rate U.S. Government
Fund....................................................
8,852
Short Duration U.S. Government
Fund...................................................
6,248
</TABLE>
No officer or employee of Lehman Brothers Inc.,
LBGAM, TSSG or of any
parent, subsidiary or affiliate thereof receives any
compensation from the Trust
for serving as an officer or Trustee of the Trust. The
Trust pays each Trustee
who is not an officer or employee of Lehman Brothers Inc.,
LBGAM or TSSG or any
parent subsidiary, or affiliate thereof $20,000 per
annum, plus $1,250 per
meeting attended, and reimburses each such Trustee for
travel and out-of-pocket
expenses.
59
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Boston Safe Deposit and Trust Company ("Boston
Safe"), an indirect
wholly-owned subsidiary of Mellon, serves as the Funds'
custodian. For the six
months ended July 31, 1994, Boston Safe waived fees as
follows:
<TABLE>
<CAPTION>
BOSTON SAFE
FEES WAIVED
- ------------
<S>
<C>
Prime Money Market Fund..................................
$ 134,600
Prime Value Money Market Fund............................
113,050
Government Obligations Money Market Fund.................
11,200
100% Government Obligations Money Market Fund............
4,200
Treasury Instruments Money Market Fund II................
21,300
100% Treasury Instruments Money Market Fund..............
10,500
Tax-Free Money Market Fund...............................
9,100
Municipal Money Market Fund..............................
25,065
California Municipal Money Market Fund...................
1,700
Floating Rate U.S. Government Fund.......................
4,900
Short Duration U.S. Government Fund......................
3,400
</TABLE>
3. SERVICES AGREEMENTS
Lehman Brothers Inc. acts as Distributor of the Trust's
shares.
Pursuant to Rule 12b-1 under the Investment Company
Act of 1940, the Funds
have adopted Service Agreements with institutional
investors such as banks,
savings and loan associations and other financial
institutions ("service
organizations") which may purchase Class B, Class C, Class E
and Select shares.
Under the Service Agreements each Fund compensates
service organizations for
servicing shareholder accounts and covers expenses
incurred in distributing
Class B, Class C, Class E and Select shares. Service
Agreement fees are paid by
each Fund based on the value of the average daily net assets
of each respective
class of shares at the annual rates as follows: 15% for
Class E shares; 25% for
the Class B and Select shares; and 35% for Class C shares.
4. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from
sales of securities,
excluding short-term investments, for the six months ended
July 31, 1994 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
- ------------ ------------
<S>
<C> <C>
Floating Rate U.S. Government Fund.......................
$90,103,720 $47,969,189
Short Duration U.S. Government Fund......................
51,281,233 22,160,059
</TABLE>
At July 31, 1994, aggregate gross unrealized
appreciation for all securities
in which there is an excess of value over tax cost
and aggregate gross
unrealized depreciation for all securities in which there
is an excess of tax
cost over value were as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
- ------------ ------------
<S>
<C> <C>
Floating Rate U.S. Government Fund.......................
$ 45,244 $ 132,563
Short Duration U.S. Government Fund......................
13,855 78,693
</TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Trustees have authority to issue an unlimited
number of $.001 par value
shares of beneficial interest currently divided into four
classes for each Money
Market Fund and two classes for the Floating Rate U.S.
Government Fund and the
Short Duration U.S. Government Fund. Since the Money
Market Funds have sold
shares, issued shares as reinvestments of dividends and
redeemed shares only at
a constant net asset value of $1.00 per share, the number
of shares represented
by such sales, reinvestments and redemptions is the same
of the amounts shown
below for such transactions.
60
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Table below summarizes transactions of Class A,
Class B, Class C and
Class E shares, at $1.00, for the PRIME MONEY MARKET FUND:
<TABLE>
<CAPTION>
SIX
MONTHS ENDED
7/31/94
----------------------------------
- --------------------------------------
CLASS A CLASS B
CLASS C CLASS E
--------------- ---------------
- --------------- ---------------
<S> <C> <C>
<C> <C>
Sold.................. 28,423,578,521 526,138,178
149,200,003 100
Dividend
Reinvestment......... 15,280,508 5,244
2 --
Redeemed.............. (29,369,904,133)
(667,336,354) (129,462,000) --
--------------- ---------------
- --------------- ---------------
Net
increase/(decrease)... (931,045,104)
(141,192,932) 19,738,005 100
--------------- ---------------
- --------------- ---------------
--------------- ---------------
- --------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
1/31/94*
----------------------------------
- -------------------
CLASS A CLASS B
CLASS C
--------------- ---------------
- ---------------
<S> <C> <C>
<C> <C>
Sold.................. 21,207,896,867 548,120,402
16,828,189
Dividend
Reinvestment......... 7,640,432 548
- --
Redeemed.............. (18,349,298,979)
(197,456,788) (16,828,189)
--------------- ---------------
- ---------------
Net increase.......... 2,866,238,320 350,664,162
0
--------------- ---------------
- ---------------
--------------- ---------------
- ---------------
</TABLE>
The Table below summarizes transactions of Class A,
Class B, Class D and
Class E shares, at $1.00, for the PRIME VALUE MONEY MARKET
FUND:
<TABLE>
<CAPTION>
SIX
MONTHS ENDED
7/31/94
----------------------------------
- --------------------------------------
CLASS A CLASS B
CLASS D CLASS E
--------------- ---------------
- --------------- ---------------
<S> <C> <C>
<C> <C>
Sold.................. 20,291,294,553 58,601,725
- -- 100
Dividend
Reinvestment......... 12,093,356 --
23 --
Redeemed.............. (22,964,480,631)
(67,061,314) (10,146) --
--------------- ---------------
- --------------- ---------------
Net
increase/(decrease)... (2,661,092,722)
(8,459,589) (10,123) 100
--------------- ---------------
- --------------- ---------------
--------------- ---------------
- --------------- ---------------
<CAPTION>
PERIOD ENDED
1/31/94*
----------------------------------
- -------------------
CLASS A CLASS B
CLASS D
--------------- ---------------
- ---------------
<S> <C> <C>
<C> <C>
Sold.................. 16,321,320,158 51,179,212
10,100
Dividend
Reinvestment......... 7,546,037 --
- --
Redeemed.............. (12,347,684,066)
(33,675,407) --
--------------- ---------------
- ---------------
Net increase.......... 3,981,182,129 17,503,805
10,100
--------------- ---------------
- ---------------
--------------- ---------------
- ---------------
</TABLE>
61
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Table below summarizes transactions of Class A,
Class B, Class D and
Class E shares, at $1.00, for the GOVERNMENT OBLIGATIONS
MONEY MARKET FUND:
<TABLE>
<CAPTION>
SIX
MONTHS ENDED
7/31/94*
-------------------------
- -----------------------------------
CLASS A CLASS B
CLASS D CLASS E
------------ ---------
- --- ------------ ------------
<S> <C> <C>
<C> <C>
Sold........................... 733,540,038
24,776,013 -- 100
Dividend Reinvestment.......... 283,098
2,560 -- --
Redeemed....................... (751,301,859)
(19,014,048) (100) --
------------ ---------
- --- ------------ ------------
Net increase/(decrease)........ (17,478,723 )
5,764,525 (100) 100
------------ ---------
- --- ------------ ------------
------------ ---------
- --- ------------ ------------
<CAPTION>
PERIOD
ENDED
1/31/94*
-------------------------
- -------------------
CLASS A CLASS B
CLASS D
------------ ---------
- --- ------------
<S> <C> <C>
<C> <C>
Sold........................... 691,207,998
1,002,462 100
Dividend Reinvestment.......... 579,010
8,677 --
Redeemed....................... (570,256,581)
(1,011,139) --
------------ ---------
- --- ------------
Net increase................... 121,530,427
0 100
------------ ---------
- --- ------------
------------ ---------
- --- ------------
</TABLE>
The Table below summarizes transactions of Class A and
Class E shares, at
$1.00, for the 100% GOVERNMENT OBLIGATIONS MONEY MARKET
FUND:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
7/31/94
-------------------------
- ---
CLASS A CLASS E
------------ ---------
- ---
<S> <C> <C>
<C> <C>
Sold........................... 13,489,483
100
Dividend Reinvestment.......... 1,429 --
Redeemed....................... (47,350,177 ) --
------------ ---------
- ---
Net increase/(decrease)........ (33,859,265 )
100
------------ ---------
- ---
------------ ---------
- ---
<CAPTION>
PERIOD ENDED
1/31/94*
------------
CLASS A
------------
<S> <C> <C>
<C> <C>
Sold........................... 94,083,622
Dividend Reinvestment.......... 1,889
Redeemed....................... (52,376,241 )
------------
Net increase................... 41,709,270
------------
------------
</TABLE>
62
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Table below summarizes transactions of Class A,
Class B and Class E
shares, at $1.00, for the TREASURY INSTRUMENTS MONEY MARKET
FUND II:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
7/31/94
---------------
- --------------------------------------
CLASS A
CLASS B CLASS E
---------------
- --------------- ---------------
<S> <C>
<C> <C>
Sold..................................... 1,051,006,225
82,013,435 100
Dividend Reinvestment.................... 520,027
465,945 --
Redeemed.................................
(926,437,755) (84,110,162) --
---------------
- --------------- ---------------
Net increase/(decrease).................. 125,088,497
(1,630,782) 100
---------------
- --------------- ---------------
---------------
- --------------- ---------------
<CAPTION>
PERIOD ENDED
1/31/94*
---------------
- -------------------
CLASS A
CLASS B
---------------
- ---------------
<S> <C>
<C> <C>
Sold..................................... 1,213,748,675
34,177,279
Dividend Reinvestment.................... 172,105
411,598
Redeemed.................................
(1,057,139,132) (727,387)
---------------
- ---------------
Net increase............................. 156,781,648
33,861,490
---------------
- ---------------
---------------
- ---------------
</TABLE>
The Table below summarizes transactions of Class A,
Class B and Class E
shares, at $1.00, for the 100% TREASURY INSTRUMENTS MONEY
MARKET FUND:
<TABLE>
<CAPTION>
SIX
MONTHS ENDED
7/31/94
---------------
- -------------------
CLASS A
CLASS E
---------------
- ---------------
<S> <C>
<C> <C>
Sold..................................... 105,779,794
100
Dividend Reinvestment.................... 197
- --
Redeemed.................................
(159,367,916) --
---------------
- ---------------
Net increase/(decrease)..................
(53,587,925) 100
---------------
- ---------------
---------------
- ---------------
<CAPTION>
PERIOD ENDED
1/31/94*
---------------
- -------------------
CLASS A
CLASS B
---------------
- ---------------
<S> <C>
<C> <C>
Sold..................................... 300,937,678
1,196,815
Dividend Reinvestment.................... --
8,667
Redeemed.................................
(173,481,192) (1,205,482)
---------------
- ---------------
Net increase............................. 127,456,486
0
---------------
- ---------------
---------------
- ---------------
</TABLE>
63
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Table below summarizes transactions of Class A and
Class E shares, at
$1.00, for the TAX-FREE MONEY MARKET FUND:
<TABLE>
<CAPTION>
SIX
MONTHS ENDED
7/31/94
---------------
- -------------------
CLASS A
CLASS E
---------------
- ---------------
<S> <C>
<C> <C>
Sold..................................... 210,784,532
100
Dividend Reinvestment.................... 29,174
- --
Redeemed................................. (240,427,093
) --
---------------
- ---------------
Net increase/(decrease).................. (29,613,387
) 100
---------------
- ---------------
---------------
- ---------------
<CAPTION>
PERIOD ENDED
1/31/94*
---------------
CLASS A
---------------
<S> <C>
<C> <C>
Sold..................................... 159,786,350
Dividend Reinvestment.................... 11,346
Redeemed................................. (100,068,006
)
---------------
Net increase............................. 59,729,690
---------------
---------------
</TABLE>
The Table below summarizes transactions of Class A,
Class D and Class E
shares, at $1.00, for the MUNICIPAL MONEY MARKET FUND:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
7/31/94
---------------
- --------------------------------------
CLASS A
CLASS D CLASS E
---------------
- --------------- ---------------
<S> <C>
<C> <C>
Sold..................................... 2,376,369,000
- -- 100
Dividend Reinvestment.................... 931,954
- -- --
Redeemed................................. (2,555,173,220
) (100) --
---------------
- --------------- ---------------
Net increase/(decrease).................. (177,872,266
) (100) 100
---------------
- --------------- ---------------
---------------
- --------------- ---------------
<CAPTION>
PERIOD ENDED
1/31/94*
---------------
- -------------------
CLASS A
CLASS D
---------------
- ---------------
<S> <C>
<C> <C>
Sold..................................... 1,935,295,434
100
Dividend Reinvestment.................... 300,097
- --
Redeemed................................. (1,584,639,391
) --
---------------
- ---------------
Net increase............................. 350,956,140
100
---------------
- ---------------
---------------
- ---------------
</TABLE>
64
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Table below summarizes transactions of Class A,
Class B and Class E
shares, at $1.00, for the CALIFORNIA MUNICIPAL MONEY MARKET
FUND:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
7/31/94
-------
- -------------------
CLASS
A CLASS E
-------
- ----- -----------
<S> <C>
<C>
Sold........................................
18,757,128 100
Redeemed....................................
(18,003,844) --
-------
- ----- -----------
Net increase................................
753,284 100
-------
- ----- -----------
-------
- ----- -----------
<CAPTION>
PERIOD ENDED
1/31/94*
-------
- -------------------
CLASS
A CLASS B
-------
- ----- -----------
<S> <C>
<C>
Sold........................................
21,700,100 3,949,532
Redeemed....................................
(12,124,845) (3,949,532)
-------
- ----- -----------
Net increase................................
9,575,255 0
-------
- ----- -----------
-------
- ----- -----------
</TABLE>
The Table below summarizes transactions of Premier
shares for the FLOATING
RATE U.S. GOVERNMENT FUND:
<TABLE>
<CAPTION>
PERIOD ENDED
7/31/94**
-------
- -------------------
PREMIER SHARES
-------
- -------------------
SHARES AMOUNT
-------
- ----- -----------
<S> <C>
<C>
Sold........................................
4,923,126 $49,150,877
Redeemed....................................
(16,409) (163,897)
-------
- ----- -----------
Net increase................................
4,906,717 $48,986,980
-------
- ----- -----------
-------
- ----- -----------
</TABLE>
The Table below summarizes transactions of Premier and
Select shares for the
SHORT DURATION U.S. GOVERNMENT FUND:
<TABLE>
<CAPTION>
PERIOD ENDED
7/31/94**
-------
- ------------------------------------------------
PREMIER SHARES SELECT SHARES
-------
- ------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
-------
- ----- ----------- ------------ -----------
<S> <C>
<C> <C> <C>
Sold........................................
3,150,273 $31,487,472 191,182 $ 1,900,253
Dividend Reinvestment.......................
2,428 24,165 -- --
-------
- ----- ----------- ------------ -----------
Net increase................................
3,152,701 $31,511,637 191,182 $ 1,900,253
-------
- ----- ----------- ------------ -----------
-------
- ----- ----------- ------------ -----------
<FN>
- ------------------------
* The Money Market Funds commenced operations on February
8, 1993.
** The Floating Rate U.S. Government Fund and the Short
Duration U.S. Government
Fund commenced operations on March 28, 1994.
</TABLE>
As of July 31, 1994, the 100% Government Obligations
Money Market Fund, 100%
Treasury Instruments Money Market Fund, Tax-Free Money
Market Fund, Municipal
Money Market Fund and California Municipal Money Market Fund
had each issued 100
Class B shares in the amount of $100 to Lehman Brothers
Inc. As of July 31,
1994, the Money Market Funds had each issued 100 Class C
and Class E shares in
the amount of $100 to
65
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Lehman Brothers. As of July 31, 1994, the Floating Rate U.S.
Government Fund had
issued ten Select shares in the amount of $100 to Lehman
Brothers Inc. During
the six months ended July 31, 1994, there was no income or
expenses allocated to
Class B, Class C, Class D, Class E and Select shares that
did not have activity.
6. ORGANIZATION COSTS
The Funds bear all costs in connection with their
organization including
fees and expenses of registering and qualifying their
shares for distribution
under Federal and state securities regulations. All
such costs are being
amortized on the straight-line method over a period of
five years from the
commencement of operations of the Fund. In the event that
any of the initial
shares of the Fund are redeemed during such amortization
period, the Fund will
be reimbursed for any unamortized organization costs in
the same proportion as
the number of shares redeemed bears to the number of initial
shares held at the
time of redemption.
7. CONCENTRATION OF CREDIT
The California Municipal Money Market Fund
primarily invests in debt
obligations issued by the State of California and its
political subdivisions,
agencies and public authorities to obtain funds for various
public purposes. The
Fund is more susceptible to factors adversely affecting
issuers of California
municipal securities than is a municipal money market
fund that is not
concentrated in these issuers to the same extent.
8. SUBSEQUENT EVENTS
As of August 3, 1994, the Board of Trustees
authorized the issuance of a
fifth and sixth class of shares, Select shares and
Global Clearing shares,
respectively, for the Government Obligations Money
Market Fund and the
California Municipal Money Market Fund.
As of August 26, 1994, the 100% Government Obligations
Money Market Fund
changed its name to the Cash Management Fund and
changed certain of its
investment policies and limitations.
As of October 3, 1994, the Trust will begin offering a
new Fund, the New
York Municipal Money Market Fund.
66
<PAGE>
LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP
TRUST
Prime Money Market Fund
Prime Value Money Market Fund
Government Obligations Money Market Fund
100% Government Obligations Money Market
Fund
Treasury Instruments Money Market Fund II
100% Treasury Instruments Money Market
Fund
Tax-Free Money Market Fund
Municipal Money Market Fund
California Municipal Money Market Fund
Floating Rate U.S. Government Fund
Short Duration U.S. Government Fund
THIS REPORT IS FOR THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF LEHMAN
BROTHERS INSTITUTIONAL FUNDS GROUP TRUST. ITS USE IN
CONNECTION WITH ANY
OFFERING OF THE TRUST'S SHARES IS AUTHORIZED ONLY IF
ACCOMPANIED OR PRECEDED BY
THE TRUST'S CURRENT PROSPECTUSES.
[ARTICLE] 6
[SERIES]
[NUMBER] 11
[NAME] LEH FLOAT RATE US GOV SEL CLA
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JANUARY-31-1994
[PERIOD-END] JULY-31-1994
[INVESTMENTS-AT-COST] 44,087,564
[INVESTMENTS-AT-VALUE] 44,000,245
[RECEIVABLES] 4,962,731
[ASSETS-OTHER] 56,000
[OTHER-ITEMS-ASSETS] 74,669
[TOTAL-ASSETS] 49,093,645
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 320,462
[TOTAL-LIABILITIES] 320,462
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 48,987,080
[SHARES-COMMON-STOCK] 4,906,727
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 27,628
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (77,881)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (163,644)
[NET-ASSETS] 48,773,183
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 746,721
[OTHER-INCOME] 0
[EXPENSES-NET] 13,688
[NET-INVESTMENT-INCOME] 733,033
[REALIZED-GAINS-CURRENT] (77,881)
[APPREC-INCREASE-CURRENT] (163,644)
[NET-CHANGE-FROM-OPS] 491,508
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
<DISTRIBUTION-OTHER> 0
[NUMBER-OF-SHARES-SOLD] 10
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 48,773,083
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 44,260
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 102,077
[AVERAGE-NET-ASSETS] 42,848,943
[PER-SHARE-NAV-BEGIN] 0.00
[PER-SHARE-NII] 0.00
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 0.00
[EXPENSE-RATIO] 0.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[SERIES]
[NUMBER] 11
[NAME] LEH FLOAT RATE US GOV PREM CLA
</TABLE>
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JANUARY-31-1994
[PERIOD-END] JULY-31-1994
[INVESTMENTS-AT-COST] 44,087,564
[INVESTMENTS-AT-VALUE] 44,000,245
[RECEIVABLES] 4,962,731
[ASSETS-OTHER] 56,000
[OTHER-ITEMS-ASSETS] 74,669
[TOTAL-ASSETS] 49,093,645
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 320,462
[TOTAL-LIABILITIES] 320,462
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 48,987,080
[SHARES-COMMON-STOCK] 4,906,727
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 27,628
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (77,881)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (163,644)
[NET-ASSETS] 48,773,183
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 746,721
[OTHER-INCOME] 0
[EXPENSES-NET] 13,688
[NET-INVESTMENT-INCOME] 733,033
[REALIZED-GAINS-CURRENT] (77,881)
[APPREC-INCREASE-CURRENT] (163,644)
[NET-CHANGE-FROM-OPS] 491,508
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (705,405)
[DISTRIBUTIONS-OF-GAINS] 0
<DISTRIBUTION-OTHER> 0
[NUMBER-OF-SHARES-SOLD] 4,923,126
[NUMBER-OF-SHARES-REDEEMED] (16,409)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 48,773,083
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 44,260
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 102,077
[AVERAGE-NET-ASSETS] 42,848,943
[PER-SHARE-NAV-BEGIN] 10.00
[PER-SHARE-NII] 0.17
[PER-SHARE-GAIN-APPREC] (0.07)
[PER-SHARE-DIVIDEND] (0.16)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 9.94
[EXPENSE-RATIO] 0.09
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[SERIES]
[NUMBER] 12
[NAME] LEHMAN SHORT DUR US GOVER SEL CLAS
</TABLE>
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JANUARY-31-1994
[PERIOD-END] JULY-31-1994
[INVESTMENTS-AT-COST] 33,283,995
[INVESTMENTS-AT-VALUE] 33,219,157
[RECEIVABLES] 174,545
[ASSETS-OTHER] 46,667
[OTHER-ITEMS-ASSETS] 34,373
[TOTAL-ASSETS] 33,474,742
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 201,103
[TOTAL-LIABILITIES] 201,103
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 33,411,990
[SHARES-COMMON-STOCK] 3,343,883
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (17,356)
[ACCUMULATED-NET-GAINS] (21,257)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (99,738)
[NET-ASSETS] 33,273,639
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 511,272
[OTHER-INCOME] 0
[EXPENSES-NET] 9,856
[NET-INVESTMENT-INCOME] 501,416
[REALIZED-GAINS-CURRENT] (21,257)
[APPREC-INCREASE-CURRENT] (99,738)
[NET-CHANGE-FROM-OPS] 380,421
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (8,201)
[DISTRIBUTIONS-OF-GAINS] 0
<DISTRIBUTION-OTHER> 0
[NUMBER-OF-SHARES-SOLD] 191,182
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 33,273,539
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 31,242
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 71,455
[AVERAGE-NET-ASSETS] 30,409,061
[PER-SHARE-NAV-BEGIN] 10.00
[PER-SHARE-NII] 0.16
[PER-SHARE-GAIN-APPREC] (0.05)
[PER-SHARE-DIVIDEND] (0.16)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 9.95
[EXPENSE-RATIO] 0.22
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[SERIES]
[NUMBER] 12
[NAME] LEHMAN SHORT DUR US GOVER PRE CLAS
</TABLE>
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JANUARY-31-1994
[PERIOD-END] JULY-31-1994
[INVESTMENTS-AT-COST] 33,283,995
[INVESTMENTS-AT-VALUE] 33,219,157
[RECEIVABLES] 174,545
[ASSETS-OTHER] 46,667
[OTHER-ITEMS-ASSETS] 34,373
[TOTAL-ASSETS] 33,474,742
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 201,103
[TOTAL-LIABILITIES] 201,103
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 33,411,990
[SHARES-COMMON-STOCK] 3,343,883
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (17,356)
[ACCUMULATED-NET-GAINS] (21,257)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (99,738)
[NET-ASSETS] 33,273,639
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 511,272
[OTHER-INCOME] 0
[EXPENSES-NET] 9,856
[NET-INVESTMENT-INCOME] 501,416
[REALIZED-GAINS-CURRENT] (21,257)
[APPREC-INCREASE-CURRENT] (99,738)
[NET-CHANGE-FROM-OPS] 380,421
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (510,571)
[DISTRIBUTIONS-OF-GAINS] 0
<DISTRIBUTION-OTHER> 0
[NUMBER-OF-SHARES-SOLD] 3,150,273
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 2,428
[NET-CHANGE-IN-ASSETS] 33,273,539
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 31,242
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 71,455
[AVERAGE-NET-ASSETS] 30,409,061
[PER-SHARE-NAV-BEGIN] 10.00
[PER-SHARE-NII] 0.17
[PER-SHARE-GAIN-APPREC] (0.05)
[PER-SHARE-DIVIDEND] (0.17)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 9.95
[EXPENSE-RATIO] 0.09
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
