LIQUID ASSETS PORTFOLIO 9
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1994
<TABLE>
<S> <C>
Assets
Investments, at Value (including Repurchase Agreement amounting to $291,399) $13,407,750
Interest Receivable 3,478
Deferred Organizational Expenses 12,355
Prepaid Expenses 2,180
Due from Bankers Trust 15,782
-----------
Total Assets 13,441,545
-----------
Liabilities
Accrued Expenses and Accounts Payable 37,397
-----------
Total Liabilities 37,397
-----------
Net Assets $13,404,148
===========
Composition of Net Assets
Paid-in Capital $13,404,148
-----------
Net Assets, December 31, 1994 $13,404,148
===========
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
LIQUID ASSETS PORTFOLIO 10
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the year ended December 31, 1994
<TABLE>
<S> <C> <C>
Investment Income
Interest $652,419
Expenses
Advisory Fee $ 22,347
Administration and Services Fee 7,449
Professional Fees 21,018
Insurance 3,113
Trustees Fees 1,130
Amortization of Organizational Expenses 3,599
Miscellaneous 1,150
-----------
Total Expenses 59,806
Less: Expenses Absorbed by Bankers Trust (44,908) 14,898
----------- ---------
Net Investment Income 637,521
Net Realized (Loss) from Securities Transactions (27,641)
---------
Net Increase in Net Assets from Operations $609,880
=========
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
LIQUID ASSETS PORTFOLIO 11
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the period
June 7, 1993
(Commencement
For the year ended of Operations) to
December 31, 1994 December 31, 1993
------------------ -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets
From Operations
Net Investment Income $ 637,521 $ 152,487
Net Realized Gain (Loss) from Securities Transactions (27,641) 3
------------ ------------
Net Increase in Net Assets from Operations 609,880 152,490
------------ ------------
From Capital Transactions
Proceeds from Capital Invested 61,272,350 19,210,472
Value of Capital Withdrawn (56,615,492) (11,225,552)
------------ ------------
Net Increase in Net Assets from Capital Transactions 4,656,858 7,984,920
------------ ------------
Total Increase in Net Assets 5,266,738 8,137,410
============ ============
Net Assets
Beginning of Period 8,137,410 -
End of Period $ 13,404,148 $ 8,137,410
============ ============
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
LIQUID ASSETS PORTFOLIO 12
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below are selected ratios and supplemental data for each of the
periods indicated for the Liquid Assets Portfolio.
<TABLE>
<CAPTION>
For the period
June 7, 1993
(Commencement
For the year ended of Operations) to
December 31, 1994 December 31, 1993
------------------ -----------------
<S> <C> <C>
Ratios and Supplemental Data
Ratio of Net Investment Income to Average Net Assets 4.28% 3.12%*
Ratio of Expenses to Average Net Assets 0.10% 0.10%*
Decrease Reflected in Above Ratio of Expenses to Average
Net Assets Due to Absorption of Expenses by Bankers Trust 0.30% 0.57%*
Net Assets, End of Period (000s omitted) $13,404 $ 8,137
</TABLE>
* Annualized
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
LIQUID ASSETS PORTFOLIO 13
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1994
<TABLE>
<CAPTION>
Principal
Amount Description Value
--------- ----------- -----
<C> <S> <C>
Certificate of Deposit - 5.60%
$ 750,000 Industrial Bank of Japan, 6.07%, 1/10/95 (Amortized Cost $750,002) $ 750,002
============
Commercial Paper - 62.88%
$ 750,000 B A T Capital, 6.03%, 1/6/95 $ 749,372
500,000 Canadian Wheat Board, 6.00%, 2/1/95 497,417
500,000 Daimler-Benz, 5.89%, 2/1/95 497,464
750,000 General Electric Capital Corp., 5.90%, 1/12/95 748,648
750,000 Goldman Sachs, 6.05%, 1/4/95 749,622
750,000 Internationale Nederlanden U.S. Funding, 5.87%, 1/20/95 747,676
750,000 J.C. Penney Funding, 6.00%, 1/17/95 748,000
750,000 National Rural Utilities, 6.00%, 1/17/95 748,000
700,000 Panasonic Finance, 5.90%, 1/5/95 699,541
750,000 Philip Morris, 5.88%, 1/17/95 748,040
1,000,000 Swedish Export Credit, 5.45%, 1/26/95 996,215
500,000 Xerox, 5.98%, 1/26/95 497,924
------------
Total Commercial Paper (Amortized Cost $8,427,919) $ 8,427,919
============
Time Deposits - 7.46%
$ 500,000 Mitsubishi, 6.125%, 1/3/95 $ 500,000
500,000 Royal Bank of Canada, 6.125%, 1/3/95 500,000
------------
Total Time Deposits (Amortized Cost $1,000,000) $ 1,000,000
============
United States Government Agency - 7.46%
$ 1,000,000 Federal Home Loan Bank, 5.61%, 1/3/95 (Amortized Cost $999,688) $ 999,688
============
United States Treasury Bill -14.46%
$ 2,000,000 United States Treasury Bill, 6.16%, 6/29/95 (Amortized Cost $1,938,742) $ 1,938,742
============
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
LIQUID ASSETS PORTFOLIO 14
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
December 31, 1994
<TABLE>
<CAPTION>
Principal
Amount Description Value
--------- ----------- -----
<C> <S> <C>
Repurchase Agreement - 2.17%
$ 291,399 Repurchase Agreement with Swiss Bank, Dated 12/30/94,
6.05%, Principal and Interest in the Amount of $291,497,
(Amortized Cost $291,399), due 1/3/95, (Collateralized by
U.S. Treasury Bill, Value of $299,866, due 1/5/95) $ 291,399
-----------
Total Investments (Amortized Cost $13,407,750) 100.03% $13,407,750
Liabilities in Excess of Other Assets (0.03)% (3,602)
-----------
Net Assets 100.00% $13,404,148
===========
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
LIQUID ASSETS PORTFOLIO 18
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Note 1 - Organization and Significant Accounting Policies
A. Organization
The Liquid Assets Portfolio (the "Portfolio") is registered under the Investment
Company Act of 1940 (the "Act"), as amended, as an open-end management
investment company. The Portfolio commenced operations on June 7, 1993, as an
unincorporated trust under the laws of New York. The Declaration of Trust
permits the Board of Trustees (the "Trustees") to issue beneficial interests in
the Portfolio.
B. Security Valuation
Investments are stated at value, as that term is defined in the Act and the
published rules and regulations thereunder. Pursuant to Rule 2a-7 of the Act,
the Portfolio utilizes the amortized cost method to determine value. The
amortized cost method involves valuing a security at its cost on the date of
purchase, and thereafter assuming a constant amortization to maturity of the
difference between the principal amount due at maturity and cost. In the event
that a deviation of 1/2 of 1% or more exists between the Portfolio's net asset
value on the basis of amortized cost and the net asset value calculated by using
available market quotations or an appropriate substitute, the Trustees will
promptly consider what action, if any, should be initiated, and where the
Trustees believe the extent of deviation may result in material dilution or
other unfair results to investors or shareholders, the Trustees shall take such
action to eliminate or reduce, to the extent reasonably practicable, such
dilution or unfair results.
C. Security Transactions and Interest Income
Security transactions are accounted for on a trade date basis (date the order to
buy or sell is executed). Interest income is recorded on the accrual basis and
includes amortization of premium and discount on investments. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Adviser, subject to the
seller's agreement to repurchase and the Portfolio's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Portfolio's custodian, and pursuant
to the terms of the repurchase agreements must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Portfolio will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Portfolio maintains the right to sell the underlying securities
at market value and may claim any resulting loss against the seller.
D. Organizational Expenses
Costs incurred by the Portfolio in connection with its organization and initial
registration are being amortized over a five year period on a straight-line
basis.
<PAGE>
LIQUID ASSETS PORTFOLIO 19
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
E. Investment Income
The Portfolio determines its net investment income (i.e., income other than net
realized long-term and short-term capital gains) on each valuation day and
allocates all such income as well as any realized gains and losses from security
transactions pro rata among the investors in the Portfolio at the time of such
determination.
F. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to it. Therefore, no federal income tax provision is
required. The cost of securities in the Portfolio for federal income tax
purposes is the same as for financial reporting purposes.
Note 2 - Fees and Transactions with Affiliates
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.05 of 1% of the Portfolio's average daily
net assets. For the year ended December 31, 1994, this fee aggregated $7,449.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at an annual rate of 0.15 of 1% of the
Portfolio's average daily net assets. For the year ended December 31, 1994, this
fee aggregated $22,347.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Portfolio, to the extent necessary, to limit all expenses to 0.10 of 1% of the
average daily net assets of the Portfolio. For the year ended December 31, 1994,
expenses of the Portfolio have been reduced $44,908.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
<PAGE>
LIQUID ASSETS PORTFOLIO 20
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Holders of Beneficial
Interest of the Liquid Assets Portfolio:
We have audited the accompanying statement of assets and liabilities of the
Liquid Assets Portfolio, including the schedule of portfolio investments, as of
December 31, 1994, and the related statement of operations for the year then
ended, the statement of changes in net assets, and the financial highlights for
the year then ended and for the period June 7, 1993 (commencement of operations)
to December 31, 1993. These financial statements and financial highlights are
the responsibility of the Portfolio's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Liquid Assets Portfolio as of December 31, 1994, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
referred to above, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Kansas City, Missouri
February 14, 1995
<PAGE>
