CASH
RESOURCE
TRUST
ANNUAL REPORT
JULY 31, 1995
SHAREHOLDER INFORMATION
TRUSTEES
Daniel J. Ludeman, TRUSTEE & CHAIRMAN
Chairman and Chief Executive Officer
Mentor Investment Group, Inc.
Arnold H. Dreyfuss, TRUSTEE
former Chairman and
Chief Executive Officer
Hamilton Beach/Proctor-Silex, Inc.
Thomas F. Keller, TRUSTEE
Dean, Fuqua School of Business
Duke University
Louis W. Moelchert, Jr., TRUSTEE
Vice President of Business & Finance
University of Richmond
Stanley F. Pauley, Jr., TRUSTEE
Chairman and Chief Executive Officer
E. R. Carpenter Company, Inc.
Troy A. Peery, Jr., TRUSTEE
President
Heilig-Meyers Company
Peter J. Quinn, Jr., TRUSTEE
Managing Director
Mentor Investment Group, Inc.
OFFICERS
Paul F. Costello, PRESIDENT
Managing Director
Mentor Investment Group, Inc.
Terry L. Perkins, TREASURER
Vice President
Mentor Investment Group, Inc.
John M. Ivan, SECRETARY
Managing Director, Assistant General Counsel
Wheat First Butcher Singer, Inc.
Michael A. Wade, ASSISTANT TREASURER
Associate Vice President
Mentor Investment Group, Inc.
This report is authorized for distribution to prospective
investors only when preceded or accompanied by a
prospectus, which contains facts concerning the objective,
policies, management fees, and expenses of the Trust and
further information.
CASH RESOURCE TRUST
901 East Byrd Street
Richmond, VA 23219
<PAGE>
MESSAGE FROM THE PRESIDENT
AND CHAIRMAN
DEAR SHAREHOLDERS:
WE ARE PLEASED TO PROVIDE YOU WITH THE CASH RESOURCE TRUST ANNUAL REPORT
FOR THE PERIOD ENDED JULY 31, 1995. THE CASH RESOURCE TRUST IS PART OF A
DIVERSIFIED FAMILY OF FUNDS OFFERED BY MENTOR INVESTMENT GROUP, AN INVESTMENT
ADVISORY FIRM WITH MORE THAN $4.8 BILLION UNDER MANAGEMENT.
AS YOU KNOW, THE CRT MONEY-MARKET FUNDS ARE INVESTED TO MEET THE OBJECTIVES
OF PROVIDING CURRENT INCOME, WHILE PRESERVING SAFETY AND LIQUIDITY. THE FUNDS
ARE MANAGED ACCORDING TO A CONSERVATIVE POLICY THAT PLACES STRONG EMPHASIS ON
CREDIT RESEARCH. WE CAREFULLY REVIEW EACH INVESTMENT AND DO NOT SACRIFICE
QUALITY TO ATTAIN A HIGHER YIELD.
IN THE PAGES THAT FOLLOW YOU WILL FIND FINANCIAL STATEMENTS FOR THE CASH
RESOURCE MONEY-MARKET FUND, THE CASH RESOURCE U.S. GOVERNMENT MONEY-MARKET FUND,
AND THE CASH RESOURCE TAX-EXEMPT MONEY-MARKET FUND, IN ADDITION TO COMMENTARY
FROM MEMBERS OF THE MANAGEMENT TEAM REGARDING THEIR INVESTMENT STRATEGY AND
OUTLOOK.
WE THANK YOU FOR YOUR CONTINUING INVESTMENT IN OUR FUNDS. WE APPRECIATE
YOUR CONFIDENCE IN OUR COMMITMENT TO PROVIDING CURRENT INCOME CONSISTENT WITH
PRESERVATION OF CAPITAL AND MAINTENANCE OF LIQUIDITY.
SINCERELY,
PAUL F. COSTELLO DANIEL J. LUDEMAN
PRESIDENT CHAIRMAN
<PAGE>
CASH RESOURCE TRUST ANNUAL REPORT
JULY 31, 1995
MANAGERS' OVERVIEW
The three portfolios of the Cash Resource Trust (CRT), managed by
Commonwealth Investment Counsel, are invested according to conservative
standards that place primary emphasis on liquidity and safety of principal:
(bullet) The CRT Money-Market Fund is a diversified portfolio of fixed-income
securities, including commercial paper, bank obligations, and other
short-term investments.
(bullet) The CRT U.S. Government Money-Market Fund is invested entirely in
securities backed by the U.S. government or its agencies, and related
repurchase agreements.
(bullet) The CRT Tax-Exempt Money-Market Fund is structured to generate income
exempt from federal income tax.
The six months ended July 31, 1995 was a challenging period for money-
market managers, as the Federal Reserve completely reversed policy. The period
began February 1, 1995 when the Federal Reserve Board raised the key Fed Funds
rate to a level of 6.00% to combat the threat of inflation in a strengthened
economy. It was the seventh increase in twelve months. But the economy began to
show signs of slowing as consumers appeared to have taken an unscheduled
holiday. Federal Reserve Board sentiment gradually shifted and on July 5, 1995,
rates were lowered to 5.75%.
Money-market rates adjusted accordingly-first up, then down, testing the
mettle of portfolio managers everywhere. Other storms encountered during the
period included a weak dollar and the deterioration of fundamentals in the
Japanese financial markets. Both were major influences on the money-market
environment. The CRT Funds continued to maintain high credit standards and
conservative investment policies and experienced no difficulties while
performing, comparable to the industry averages.
The remainder of 1995 is likely to be a period significantly different from
the past several years, because rates are not likely to change significantly.
The challenge for managers will lie in the areas of market analysis and
selectivity. Our pledge to you is that we will continue to place primary
emphasis on safety and liquidity. Our philosophy continues to be that the
primary purpose of a money-market fund is to preserve investors' principal and
to make funds available when needed.
We thank you for your confidence.
R. Preston Nuttall
DIRECTOR OF CASH MANAGEMENT
Hubert R. White
PORTFOLIO MANAGER
Kathryn T. Allen
PORTFOLIO MANAGER
<PAGE>
Cash Resource Trust
MONEY-MARKET FUND
Portfolio of Investments
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
CORPORATE OBLIGATIONS 3.08%
(a) Abbey National Treasury Service, 5.74%, 11/16/95 $ 8,000 $ 7,999
(a) Boatmen's Bank of Southern Missouri, 6.06%, 8/04/95 5,000 5,000
TOTAL CORPORATE OBLIGATIONS 12,999
BANKERS ACCEPTANCES 5.42%
Nations Bank, 6.00%, 8/28/95 5,000 4,978
Swiss Bank, 5.85%, 10/20/95 3,000 2,961
Sanwa, 5.85%, 8/14/95 15,000 15,000
TOTAL BANKERS ACCEPTANCES 22,939
BANK OBLIGATIONS 13.72%
Banc One Milwaukee, 5.96%, 9/11/95 15,000 15,000
Bank Of America, 5.75%, 8/21/95 18,000 18,000
First of America, 6.00%, 8/10/95 15,000 15,000
Nations Bank, 6.06%, 10/12/95 10,000 10,000
TOTAL BANK OBLIGATIONS 58,000
COMMERCIAL PAPER 60.75%
ASSET BACKED SECURITIES 3.51%
CIESCO Limited Partnership, 5.68%, 10/13/95 15,000 14,827
CHEMICALS & ALLIED PRODUCTS 7.06%
DIC Americas, Inc., 5.97%, 8/14/95 15,000 14,968
Dupont E I De Nemours, 5.92%, 9/22/95 15,000 14,871
Total Chemicals & Allied Products 29,839
COMMERCIAL BANKS 7.01%
First Union Corporation, 5.68%, 10/31/95 15,000 14,785
Internationale Nederland, 5.95%, 8/28/95 5,000 4,978
Internationale Nederland, 5.68%, 10/20/95 10,000 9,874
Total Commercial Banks 29,637
COMPUTER PROCESSING, DATA PREPARATION SERVICES 3.52%
Electronic Data Systems Corporation,
5.70%, 9/15/95 15,000 14,893
ELECTRIC SERVICES 4.30%
National Rural Utilities, 5.72%, 8/29/95 10,000 9,956
Rincon Securities, Inc., 6.02%, 8/01/95 1,245 1,245
Rincon Securities, Inc., 5.95%, 8/11/95 2,170 2,166
Rincon Securities, Inc., 5.97%, 8/17/95 2,000 1,995
Rincon Securities, Inc., 5.73%, 9/26/95 2,845 2,820
Total Electric Services 18,182
</TABLE>
<PAGE>
<TABLE>
Cash Resource Trust
MONEY-MARKET FUND
Portfolio of Investments (continued)
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
FARM MACHINERY & EQUIPMENT 3.53%
Kubota Finance USA, 5.77%, 8/31/95 $ 15,000 $ 14,928
OIL AND GAS FIELD EXPLORATION SERVICES 3.54%
Statoil, 5.73%, 8/18/95 15,000 14,959
PERSONAL CREDIT INSTITUTIONS 10.61%
American Express Credit Corporation, 5.93%, 8/15/95 15,000 14,965
Associate Corporation of North America, 5.73%, 8/22/95 15,000 14,950
Ford Motor Credit Company , 5.74%, 8/25/95 15,000 14,943
Total Personal Credit Institutions 44,858
PRIMARY PRODUCTION OF ALUMINUM 2.61%
Queensland Alumina Ltd., 5.73%, 8/29/95 11,072 11,023
RENTAL & LEASING 2.35%
General Electric Capital Corporation, 6.09%, 8/21/95 3,000 2,990
General Electric Capital Corporation, 6.03%, 9/18/95 7,000 6,944
Total Rental & Leasing 9,934
SECURITY BROKERS & DEALERS 9.42%
Bears Stearns Company , 5.95%, 8/23/95 10,000 9,964
CS First Boston, 5.75%, 8/18/95 8,000 7,978
CS First Boston, 6.04%, 8/28/95 5,000 4,977
CS First Boston, 6.11%, 8/31/95 2,000 1,990
Merrill Lynch, 5.72%, 8/25/95 7,000 6,973
Merrill Lynch, 6.12%, 9/11/95 8,000 7,944
Total Security Brokers & Dealers 39,826
TELECOMMUNICATIONS 3.27%
AT&T Capital Corporation, 5.68%, 10/30/95 4,000 3,943
Bellsouth Capital Funding, 6.09%, 10/02/95 10,000 9,895
Total Telecommunications 13,838
TOTAL COMMERCIAL PAPER 256,744
U.S. GOVERNMENT AND AGENCIES 10.65%
Federal Home Loan Bank,
6.20%, 5/24/96 5,000 5,000
(a) 6.04% - 6.17%, 12/23/96 - 2/14/97 15,000 15,000
</TABLE>
<PAGE>
Cash Resource Trust
MONEY-MARKET FUND
Portfolio of Investments (continued)
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCIES (CONTINUED)
(a) Student Loan Market Association,
5.81% - 5.84%, 11/24/97 - 2/22/99 $ 25,000 $ 24,996
TOTAL U.S. GOVERNMENT AND AGENCIES 44,996
REPURCHASE AGREEMENTS 6.18%
Goldman, Sachs & Company
Dated 7/31/95, 5.83%, due 8/01/95, collateralized by
$6,512 Federal National Mortgage Association,
6.00%, 10/01/08 6,134 6,134
United Bank of Switzerland
Dated 7/31/95, 5.86%, due 8/01/95, collateralized by
$5,119 Federal Home Loan Mortgage Corporation,
6.00% - 6.50%, 11/15/08 - 2/15/23 and
$23,415 Federal National Mortgage Association,
6.00%, 12/15/08 20,000 20,000
TOTAL REPURCHASE AGREEMENTS 26,134
TOTAL INVESTMENTS (COST $421,812) 99.80% 421,812
OTHER ASSETS LESS LIABILITIES 0.20% 845
NET ASSETS 100.00% $422,657
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
<PAGE>
Cash Resource Trust
U.S. GOVERNMENT MONEY-MARKET FUND
Portfolio of Investments
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCIES 57.40%
Federal Farm Credit Bank
6.02%, 8/01/95 $ 35,000 $ 35,000
Federal Home Loan Bank
5.63% - 6.27%, 8/07/95 - 5/24/96 265,090 262,143
(a) 5.71% - 6.04%, 3/08/96 - 2/16/99 62,000 62,000
Federal Home Loan Mortgage Corporation
5.55% - 5.94%, 8/10/95 - 11/09/95 118,235 117,012
Federal National Mortgage Association
5.68% - 5.91%, 8/09/95 - 9/11/95 110,000 109,719
(a) Student Loan Market Association
5.81% - 6.08%, 7/01/96 - 02/08/99 112,500 112,498
TOTAL U.S. GOVERNMENT AND AGENCIES 698,372
REPURCHASE AGREEMENTS 42.77%
Chase Securities, Inc.
Dated 7/31/95, 5.82%, due 8/01/95, collateralized by
$54,383 Federal National Mortgage Association,
6.50% - 7.52%, 7/01/99 - 10/01/24 and
$11,196 Federal Home Loan Mortgage Corporation,
6.00% - 7.50%, 10/01/00 - 11/01/09 60,000 60,000
Goldman, Sachs & Company
Dated 7/31/95, 5.83%, due 8/01/95, collateralized by
$94,398 Federal National Mortgage Association,
6.00% - 6.50%, 10/01/08 - 4/01/09 and
$132,030 Federal Home Loan Mortgage Corporation,
7.00%, 2/01/00 220,430 220,430
Merrill Lynch, Pierce, Fenner & Smith, Inc.
Dated 7/31/95, 5.79%, due 8/01/95, collateralized by
$37,425 Federal National Mortgage Association,
7.00% - 8.50%, 7/01/17 - 8/01/25 and
$24,786 Federal Home Loan Mortgage Corporation,
6.50%, 3/01/09 60,000 60,000
</TABLE>
<PAGE>
<TABLE>
Cash Resource Trust
U.S. GOVERNMENT MONEY-MARKET FUND
Portfolio of Investments (continued)
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Nationsbank Corporation
Dated 7/31/95, 5.80%, due 8/01/95, collateralized by
$57,600 U.S. T reasury Notes, 6.88% - 7.50%,
8/31/99 - 10/31/99 $ 60,000 $ 60,000
Paine Webber, Inc.
Dated 7/31/95, 5.80%, due 8/01/95, collateralized by
$63,613 Government National Mortgage Association,
7.50% - 8.00%, 11/15/23 - 6/15/25 60,000 60,000
United Bank of Switzerland
Dated 7/31/95, 5.88%, due 8/01/95, collateralized
by $5,300 Federal Home Loan Mortgage Corporation
6.50%, 2/15/23 and $147,552 Federal National
Mortgage Association - Strips, 5.92% - 13.08%,
4/01/23 - 10/01/24 60,000 60,000
TOTAL REPURCHASE AGREEMENTS 520,430
TOTAL INVESTMENTS (COST $1,218,802) 100.17% 1,218,802
OTHER ASSETS LESS LIABILITIES (0.17%) (2,112)
NET ASSETS 100.00% $1,216,690
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
<PAGE>
<PAGE>
Cash Resource Trust
TAX-EXEMPT MONEY-MARKET FUND
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
(a) VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES 48.23%
ALABAMA 3.29%
BNC Special Care Facility, Finance Authority
Series B, 3.75%, 12/01/30 $ 2,070 $ 2,070
University of Alabama, Board of Trustees,
3.80%, 10/01/13 6,700 6,700
8,770
ARIZONA 3.75%
Apache County IDA, Tucson Electric Power
Company Project, 3.85%, 6/15/20 10,000 10,000
CALIFORNIA 0.37%
Corona IDA, 4.05%, 12/01/04 1,000 1,000
COLORADO 5.32%
Colorado Housing Finance Authority MFH,
Series 1985, 3.85%, 5/01/97 7,200 7,200
Moffatt County, PCRB, Series 1984, 3.90%, 7/01/10 7,000 7,000
14,200
CONNECTICUT 0.56%
State of Connecticut Economic Recovery,
Series B, 3.75%, 6/01/96 1,500 1,500
IOWA 1.12%
Polk County, Iowa Hospital, 3.85%, 12/01/05 3,000 3,000
ILLINOIS 5.92%
Chicago O'Hare International Airport, American
Airlines, Series 1983C, 4.00%, 1/01/18 2,000 2,000
Illinois DFA Grayhill, Grayhill Inc. Project
IDR, 3.90%, 2/01/05 3,500 3,500
Illinois HFA Condell Medical Center,
3.90%, 11/01/05 5,800 5,800
Illinois HFA West Suburban Hospital, 3.85%, 7/01/05 3,200 3,200
Southwestern Illinois Development Authority,
4.00%, 4/01/22 1,300 1,300
15,800
</TABLE>
<PAGE>
Cash Resource Trust
TAX-EXEMPT MONEY-MARKET FUND
Portfolio of Investments (continued)
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
(a) VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (CONTINUED)
MARYLAND 1.82%
Anne Arundel County, Oakland Hills Project
3.85%, 5/15/15 $ 2,052 $ 2,052
Howard County Revenue Bond, Harmony Hall
Inc. Project, 3.85%, 10/01/10 2,800 2,800
4,852
MISSOURI 0.64%
Missouri Health & Education, Series B,
3.70%, 12/01/19 1,700 1,700
MISSISSIPPI 0.60%
Jackson County, PCRB, 3.80%, 12/01/16 1,600 1,600
NORTH CAROLINA 6.71%
Durham County Public Improvement, 3.80%, 5/01/06 200 200
Durham County Water & Sewer, 3.80%, 12/01/15 2,800 2,800
Lincoln County Industrial Facility, PCRB
Series 1994, 4.05%, 8/01/09 6,000 6,000
North Carolina Educational Facilities,
Bowman Grey School, 3.85%, 9/01/20 4,200 4,200
North Carolina Medical Care, Moses
Cone Hospital, Series 1995, 3.80%, 9/01/02 4,700 4,700
17,900
NEBRASKA 0.75%
Nebraska IDA, Freemont Beef Project,
4.05%, 12/01/04 2,000 2,000
NEW HAMPSHIRE 3.75%
New Hampshire Health & Higher Education,
Series E, 3.75%, 12/01/25 10,000 10,000
NEW MEXICO 1.87%
City of Albuquerque, Airport Revenue Bond
Series 1995, 3.75%, 7/01/14 5,000 5,000
TENNESSEE 0.80%
Nashville and Davidson County Health
and Education Facility, 3.90%, 5/01/20 2,144 2,144
</TABLE>
<PAGE>
Cash Resource Trust
TAX-EXEMPT MONEY-MARKET FUND
Portfolio of Investments (continued)
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
(a) VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (CONTINUED)
TEXAS 3.86%
North Texas Higher Education, Student Loan
Revenue Refund, Series 1991F, 3.90%, 4/01/20 $ 4,000 $ 4,000
Panhandle Plains, Student Loan Revenue,
Series A, 3.90%, 6/01/21 1,300 1,300
Red River Authority, PCRB, 3.70%, 7/01/11 5,000 5,000
10,300
VIRGINIA 6.35%
Chesterfield County IDR, Midlothian Hotel
Partnership, 3.85%, 12/01/14 6,424 6,424
IDA of Henrico County, Hermitage Project,
4.05%, 5/01/24 1,600 1,600
Lynchburg IDA, Mid-Atlantic, Series G,
3.75%, 12/01/25 500 500
Richmond IDR, Commonwealth Park,
3.90%, 11/01/07 1,432 1,432
Roanoke IDR, Quibell Corporate Project,
3.85%, 9/01/15 292 292
Spotsylvania City , IDA, Residential Care
Facilities, 3.85%, 10/01/20 4,684 4,684
Tazewell County, IDR, 4.25%, 1/01/03 1,100 1,100
Virginia Beach, Revenue Bond, 3.90%, 9/01/09 420 420
Virginia State HDA, Series A,
3.85%, 9/01/17 500 500
16,952
WISCONSIN 0.75%
Village of Pleasant Prairie, Muskie Enterprise
Project, Series 1995, 4.00%, 5/01/15 2,000 2,000
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 128,718
OTHER TAX-EXEMPT SECURITIES 51.50%
COLORADO 1.50%
Arapahoe County, Revenue Bond, Series L,
4.45%, 8/31/95 4,000 4,000
</TABLE>
<PAGE>
Cash Resource Trust
TAX-EXEMPT MONEY-MARKET FUND
Portfolio of Investments (continued)
<TABLE>
<CAPTION>
July 31, 1995 PRINCIPAL VALUE
(in thousands) PERCENT OF NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
FLORIDA 4.53%
Jacksonville, Florida Power & Light, PCRB,
Series 1994, 4.10%, 12/15/95 $ 2,000 $ 2,000
Putnam County, Development Authority,
Seminole Electric, Series 1984, 3.40%, 12/15/95 3,100 3,100
St. Lucie City, Florida Power & Light, PCRB,
4.15%, 8/08/95 3,000 3,000
Sarasota City Public Hospital, 4.15%, 8/25/95 1,500 1,500
Sunshine State Government Finance Commission,
Series 1986, Revenue Bond, 3.70%, 10/24/95 2,500 2,500
12,100
ILLINOIS 4.01%
City of Chicago GO, Series 1994 A-2,
3.50%, 10/31/95 5,000 5,000
City of Chicago GO, Series 1995 A,
4.60%, 10/31/95 3,890 3,890
Fulton Solid Waste Facility, Revenue Bond,
Series A, 4.35%, 9/07/95 1,800 1,800
10,690
KANSAS 1.87%
Burlington Revenue Refund Bond,
3.05%, 10/20/95 5,000 5,000
LOUISIANA 1.87%
Plaquemines Port Harbor, Series C
3.10%, 8/17/95 5,000 5,000
MARYLAND 1.14%
Anne Arundel County, Baltimore Gas & Electric,
4.20%, 8/17/95 3,050 3,050
MINNESOTA 2.44%
Rochester Health Care, Series C, 3.80%, 8/23/95 500 500
Rochester Health Care, Series C, 4.10%, 8/23/95 5,000 5,000
University of Minnesota Revenue Bond,
4.15%, 8/25/95 1,000 1,000
6,500
MISSISSIPPI 1.87%
Claiborne County, PCRB, 3.70%, 09/07/95 5,000 5,000
</TABLE>
<PAGE>
Cash Resource Trust
TAX-EXEMPT MONEY-MARKET FUND
Portfolio of Investments (continued)
<TABLE>
<CAPTION>
July 31, 1995 PERCENT OF PRINCIPAL VALUE
(in thousands) NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
NORTH CAROLINA 3.67%
Wake County Industrial Facility, Series 1990,
4.15%, 8/22/95 $ 4,800 $ 4,800
Wake County Industrial Facility, Series 1990,
4.15%, 8/30/95 5,000 5,000
9,800
NEW HAMPSHIRE 0.75%
New Hampshire, New England Power
Series 1990A, 4.25%, 8/09/95 2,000 2,000
NEVADA 1.35%
Washoe County Water Facility, 4.20%, 8/16/95 3,600 3,600
SOUTH CAROLINA 2.62%
York County, PCRB, Series 1984N-3, 4.55%, 8/15/95 2,000 2,000
York County, PCRB, Series 1984N-3, 4.30%, 9/15/95 5,000 5,000
7,000
TEXAS 5.51%
Brazos Harbor Industrial Development,
Series 1986, 3.70%, 10/20/95 2,700 2,700
Brazos Harbor Industrial Development,
Series 1986, 3.75%, 10/20/95 1,000 1,000
Harris City Health Care, 4.13%, 8/28/95 4,700 4,700
San Antonio Electric & Gas, Series A,
3.10%, 10/16/95 3,000 3,000
San Antonio Electric & Gas, Series A,
3.70%, 10/16/95 300 300
Texas A&M University, Series B,
3.90%, 10/27/95 3,000 3,000
14,700
VIRGINIA 10.64%
IDA of Louisa County, Series 1984, 4.15%, 8/08/95 250 250
Peninsula Port Authority, 3.25%, 9/08/95 3,135 3,135
Virginia State Housing Development, Series A,
3.45%, 9/12/95 7,000 7,000
Virginia State Housing Development, Series F,
4.12%, 9/12/95 10,000 10,000
York County, IDA, PCRB, 4.30%, 8/24/95 8,000 8,000
28,385
</TABLE>
<PAGE>
Cash Resource Trust
TAX-EXEMPT MONEY-MARKET FUND
<TABLE>
<CAPTION> PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
WEST VIRGINIA 3.75%
West Virginia HDA, 3.85%, 9/01/95 $ 10,000 $ 10,000
OTHER 3.98%
PNC Municash, 3.77%, 8/01/95 10,619 10,619
TOTAL OTHER TAX-EXEMPT SECURITIES 137,444
TOTAL INVESTMENTS (COST $266,162) 99.73% 266,162
OTHER ASSETS LESS LIABILITIES 0.27% 733
NET ASSETS 100.00% $266,895
</TABLE>
Notes to Portfolios of Investments
NOTE (a):
Floating Rate Securities- The rates shown are the effective rates at July 31,
1995. Securities shown without a date are payable within five business days and
are backed by credit support agreements from banks or insurance institutions.
NOTE (b):
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in Note (a). For each security, cost (for
financial reporting and federal income tax purposes) and carrying value are the
same.
INVESTMENT ABBREVIATIONS
DFA Development Finance Authority
GO General Obligation
HDA Housing Development Authority
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MFH Multi-family Housing
PCRB Pollution Control Revenue Board
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
Cash Resource Trust
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1995
(in thousands)
MONEY- U.S. GOVERNMENT TAX-EXEMPT
MARKET MONEY-MARKET MONEY-MARKET
FUND FUND FUND
<S> <C> <C> <C>
ASSETS
Investments, at amortized cost (Note 2)
Investment securities $395,678 $ 698,372 $266,162
Repurchase agreements 26,134 520,430 -
Total investments 421,812 1,218,802 266,162
Receivables
Interest 1,260 2,835 1,444
Shares of the portfolio sold 1,280 127 16
Deferred expenses (Note 2) 92 429 94
Other 1 199 90
Total assets 424,445 1,222,392 267,806
LIABILITIES
Payables
Dividends 839 2,320 317
Shares of the portfolio redeemed 866 3,161 542
Accrued distribution fee (Note 3) 26 76 15
Accrued expenses and other liabilities 57 145 37
Total liabilities 1,788 5,702 911
NET ASSETS $422,657 $1,216,690 $266,895
Shares outstanding 422,657 1,216,743 266,898
Net asset value per share $ 1.00 $ 1.00 $ 1.00
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
Cash Resource Trust
<TABLE>
STATEMENTS OF OPERATIONS
Year Ended July 31, 1995
(in thousands)
MONEY- U.S. GOVERNMENT TAX-EXEMPT
MARKET MONEY-MARKET MONEY-MARKET
FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $16,250 $56,663 $8,258
EXPENSES
Distribution fee (Note 3) 1,061 3,764 730
Transfer agent fee (Note 3) 468 2,235 223
Management fee (Note 3) 616 2,098 487
Custodian and accounting fees 53 425 98
Shareholder reports 41 172 39
Professional fees 9 28 7
Registration fees 35 89 38
Organizational expenses 6 30 7
Directors' fees 6 12 6
Other 6 30 7
Total expenses 2,301 8,883 1,642
Deduct
Waiver of management fee (Note 3) - - 49
Net expenses 2,301 8,883 1,593
NET INVESTMENT INCOME 13,949 47,780 6,665
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments sold 4 (53) (3)
Net increase in net assets resulting
from operations $13,953 $47,727 $6,662
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
Cash Resource Trust
STATEMENTS OF CHANGES IN NET ASSETS
(in thousands)
<TABLE>
<CAPTION>
MONEY- U.S. GOVERNMENT TAX-EXEMPT
MARKET MONEY-MARKET MONEY-MARKET
FUND FUND FUND
YEAR ENDED JULY 31, 1995 1994* 1995 1994* 1995 1994*
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS
Net investment income $ 13,949 $ 3,670 $ 47,780 $17,828 $ 6,665 $2,442
Net realized gain (loss) on
investments sold 4 - (53) - (3) -
Increase in net assets from operations 13,953 3,670 47,727 17,828 6,662 2,442
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (13,949) (3,670) (47,780) (17,828) (6,665) (2,442)
Net realized gain on investments (4) - - - - -
Net decrease from distributions (13,953) (3,670) (47,780) (17,828) (6,665) (2,442)
CAPITAL SHARE TRANSACTIONS (AT $1.00 PER SHARE)
Net proceeds from sale of shares 1,715,060 712,269 4,322,307 3,572,904 1,029,842 732,212
Reinvestment of dividends 13,420 3,289 46,908 16,053 6,528 2,194
Cost of shares redeemed (1,498,083) (523,298) (4,060,291) (2,681,138) (965,174) (538,704)
Change in net assets from
capital share transactions 230,397 192,260 308,924 907,819 71,196 195,702
Net increase in net assets 230,397 192,260 308,871 907,819 71,193 195,702
NET ASSETS
Beginning of period 192,260 - 907,819 - 195,702 -
End of period $ 422,657 $ 192,260 $ 1,216,690 $907,819 $ 266,895 $ 195,702
</TABLE>
* For the period from December 20, 1993 (commencement of operations) to July
31, 1994
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
Cash Resource Trust
<TABLE>
FINANCIAL HIGHLIGHTS
MONEY- U.S. GOVERNMENT TAX-EXEMPT
MARKET MONEY-MARKET MONEY-MARKET
FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
YEAR ENDED JULY 31, 1995 1994* 1995 1994* 1995 1994*
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income** 0.05 0.02 0.05 0.02 0.03 0.01
Distributions
Net investment income** (0.05) (0.02) (0.05) (0.02) (0.03) (0.01)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 4.97% 1.83% 4.82% 1.82% 3.05% 1.16%
RATIOS / SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $422,657 $192,260 $1,216,690 $907,819 $266,895 $195,702
Ratio of expenses to average net assets 0.82% 0.89%(a) 0.88% 0.80%(a) 0.72% 0.65%(a)
Ratio of expenses to average net assets
excluding waivers 0.82% 0.93%(a) 0.88% 0.83%(a) 0.74% 0.74%(a)
Ratio of net investment income to average
net assets 4.96% 2.96%(a) 4.75% 2.91%(a) 3.01% 1.87%(a)
* For the period from December 20, 1993 (commencement of operations) to July 31, 1994.
** Includes net realized capital gains (losses) which were under $0.01 per share.
(a) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
Cash Resource Trust
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
NOTE 1: ORGANIZATION
Cash Resource Trust ("Trust") was organized on June 14, 1993 and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust consists of three separate diversified funds
(hereinafter each individually referred to as a Fund or collectively as the
"Funds") at July 31, 1995 as follows:
Cash Resource Money-Market Fund ("Money-Market Fund")
Cash Resource U.S. Government Money-Market Fund ("U.S. Government Fund")
Cash Resource Tax-Exempt Money-Market Fund ("Tax-Exempt Fund")
The assets of each Fund of the Trust are segregated and a shareholder's interest
is limited to the Fund in which shares are held.
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds:
A. VALUATION OF SECURITIES
Investments are stated at amortized cost, which approximates market value. In
the event that a deviation of 1/2 of 1% or more exists between a Fund's $1.00
per share net asset value, calculated at amortized cost, and the net asset value
calculated by reference to market-based values, or if there is any other
deviation that the Board of Trustees believes would result in a material
dilution to shareholders or purchasers, the Board of Trustees will promptly
consider what action should be initiated.
B. REPURCHASE AGREEMENTS
It is the policy of the Trust to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book entry system, or to
have segregated within the custodian bank's vault all securities held as
collateral in support of repurchase agreement investments. Additionally,
procedures have been established by the Trust to monitor, on a daily basis, the
market value of each repurchase agreement's underlying securities to ensure the
existence of a proper level of collateral.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions such as broker/dealers which are deemed by the
Trust's adviser to be creditworthy pursuant to guidelines established by the
Board of Trustees. Risks may arise from the potential inability of
counterparts to honor the terms of the repurchase agreement. Accordingly, the
Trust could receive less than the repurchase price on the sale of collateral
securities.
Cash Resource Trust
C. SECURITY TRANSACTIONS AND INTEREST INCOME
Security transactions for the Funds are accounted for on a trade date basis.
Interest income is recorded on the accrual basis and includes amortization of
premium and discount on investments.
D. EXPENSES
Expenses arising in connection with a Fund are allocated to that Fund. Other
Trust expenses are allocated among the Funds in proportion to their relative net
assets.
E. FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Fund shares are sold and redeemed on a continual basis at net asset value. The
net asset value per share (NAV) of each Fund is determined daily as of 4:00 p.m.
on each day that the New York Stock Exchange is open for trading. Each Fund
determines its NAV by dividing the total value of the Fund's investments and
other assets, less liabilities, by the number of Fund shares outstanding. Each
Fund declares a daily dividend, equal to its net investment income for that day
and payable at month end. Distributions from net realized capital gains, if
any, are paid annually.
F. FEDERAL INCOME TAXES
No provision for federal income taxes has been made since it is each Fund's
policy to comply with the provisions applicable to regulated investment
companies under the Internal Revenue Code and to distribute to its shareholders
within the allowable time limit substantially all taxable income and realized
capital gains.
At July 31, 1995, Government Money-Market Fund for federal tax purposes, had a
capital loss carryforward of approximately $54,000. Pursuant to the Code,
such capital loss carryforwards expire as follows: $1,000 in 2002 and $53,000 in
2003.
G. DEFERRED EXPENSES
Costs incurred by the Trust in connection with its initial share registration
and organization costs were deferred by the Funds and are being amortized on a
straight-line basis over a five year period through December 1998.
NOTE 3: INVESTMENT MANAGEMENT AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGEMENT AGREEMENT
Commonwealth Advisors, Inc. (formerly Cambridge Investment Advisors, Inc.) the
Funds' investment adviser ("Investment Adviser") provides investment advisory
services to each of the Funds. Commonwealth Investment Counsel, Inc.
("Commonwealth"), an affiliate of the Investment Adviser, serves as sub-adviser
to each of the Funds, pursuant to a sub-advisory agreement among the Investment
Adviser, Commonwealth and the Trust. Commonwealth furnishes a continuing
investment program for each of the Funds and makes investment decisions on their
behalf.
The Investment Adviser and Commonwealth are wholly-owned subsidiaries of
Mentor Investment Group, Inc. ("Mentor") (formerly Investment Management Group,
Inc.), which is in turn a wholly-owned subsidiary of Wheat First Butcher Singer,
Inc. ("Wheat").
Each Fund pays management fees to the Investment Adviser monthly at the
following annual rates, expressed as a percentage of average daily net assets:
0.22% of the first $500 million of each Fund's average net assets; 0.20% of the
next $500 million; 0.175% of the next $1 billion; 0.16% of the next $1 billion;
and 0.15% of any amounts over $3 billion. The Investment Adviser in turn pays
fees from its own assets to Commonwealth monthly at the following annual rates
(based on the assets of each Fund taken separately): 0.17% of the first $500
million of a Fund's average net assets; 0.15% of the next $500 million; 0.125%
of the next $1 billion; 0.11% of the next $1 billion; and 0.10% of any amounts
over $3 billion. The Investment Adviser may from time to time voluntarily waive
some or all of its investment advisory fee and may terminate any such voluntary
waiver at any time at its sole discretion. For the year ended July 31, 1995,
the Investment Adviser and sub-adviser earned the following advisory fees:
ADVISER ADVISER FEE SUB-ADVISER
FEE VOLUNTARILY FEE
EARNED WAIVED EARNED
Money-Market Fund $ 616,369 $ - $ 476,285
U.S. Government Fund 2,097,838 - 1,598,353
Tax-Exempt Fund 486,638 48,886 413,642
In addition, the Funds provide direct reimbursement to Mentor for certain
accounting and operation related costs not covered under the Investment
Management Agreement. For the year ended July 31, 1995, the Money-Market Fund,
U.S. Government Fund and Tax-Exempt Fund paid $8,470, $28,453 and $6,239,
respectively to Mentor for these direct reimbursements.
DISTRIBUTION AGREEMENT
Under a Distribution Agreement, Mentor Distributors, Inc. ("Mentor
Distributors") (formerly, Cambridge Distributors, Inc.) a wholly-owned
subsidiary of Mentor, was appointed Distributor for each Fund. To compensate
Mentor Distributors for the services it provides and for the expenses it incurs
under the Distribution Agreement, the Funds have adopted a Plan of Distribution
pursuant to Rule 12b-1 under the Investment Company Act of 1940, under which
they pay a distribution fee, which is accrued daily and paid monthly at the
annual rate of 0.38% of the Fund's average daily net assets for the Money-Market
Fund and U.S. Government Fund and 0.33% of the Fund's average daily net assets
for the Tax-Exempt Fund.
TRANSFER AGENT AGREEMENT
Under a Transfer Agency Agreement, Investors Fiduciary Trust Company (IFTC)
serves as Transfer Agent and Dividend Disbursing Agent for each Fund. IFTC in
turn compensates Wheat (from IFTC's own assets) for related services provided by
Wheat directly to its clients. For the year ended July 31, 1995, Wheat earned
fees of $466,682, $2,180,323 and $215,753 respectively from the Money-Market
Fund, U.S. Government Fund and Tax-Exempt Fund.
<PAGE>
INDEPENDENT AUDITORS' REPORT
THE TRUSTEES
CASH RESOURCE TRUST
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the Money-Market Fund, U.S.
Government Money-Market Fund and Tax-Exempt Money-Market Fund, (Portfolios of
Cash Resource Trust) as of July 31, 1995 and the related statements of
operations for the year then ended, and the statements of changes in net assets
and financial highlights for the year then ended and for the period from
December 20, 1993 (commencement of operations) to July 31, 1994. These
financial statements and financial highlights are the responsibility of the
Funds' 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 also 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 July 31, 1995 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
Money-Market Fund, U.S. Government Money-Market Fund and Tax-Exempt Money-Market
Fund as of July 31, 1995, the results of their operations for the year then
ended and the changes in their net assets and their financial highlights for the
year then ended and the period from December 20, 1993 to July 31, 1994 in
conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Boston, Massachusetts
September 8, 1995
<PAGE>
