CASH RESOURCE TRUST
SEMI-ANNUAL REPORT
JANUARY 31, 1997
- --------------------------------------------------------------------------------
MESSAGE FROM THE CHAIRMAN AND PRESIDENT
It is our privilege to send you the Cash Resource Trust Semi-Annual Report for
the period ended January 31, 1997.* The Cash Resource Trust is part of a
diversified family of funds offered by Mentor Investment Group, LLC,** an
investment advisory firm with more than $10 billion under management. Mentor
provides investment management in seven different styles to a broad spectrum of
investors.
As you know, the CRT money market funds are invested to seek as high a rate of
current income -- or, in the case of the Cash Resource Tax-Exempt Money Market
Fund, as high a rate of current income exempt from federal income tax -- as the
investment advisor believes to be consistent with preservation of capital and
maintenance of liquidity. Since our last report to you, for the year ended July
31, 1996, two portfolios have been added to the Cash Resource Trust: The
California Tax-Exempt Money Market Fund, and the New York Tax-Exempt Money
Market Fund.
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. While the managers seek to invest
the Funds in accordance with this process, there is no guarantee that it will
result in investment success. An investment in the Funds is neither insured nor
guaranteed by the U.S. Government, and there can be no assurance that they will
maintain a stable net asset value of $1.00 per share.
In the pages that follow you will find financial statements for the five CRT
Funds, in addition to commentary from members of the management team regarding
their investment strategy and outlook.
Thank you for your continuing investment in the Funds.
Sincerely,
/s/ Daniel J. Ludeman /s/ Paul F. Costello
- ------------------------- ----------------------
Daniel J. Ludeman Paul F. Costello
CHAIRMAN PRESIDENT
*FOR MORE INFORMATION AND A PROSPECTUS FOR THE CASH RESOURCE TRUST, PLEASE CALL
US, (800)382-0016, OR CONTACT YOUR FINANCIAL CONSULTANT. THE PROSPECTUS CONTAINS
COMPLETE INFORMATION ABOUT FEES, SALES CHARGES, AND EXPENSES. PLEASE READ THEM
CAREFULLY BEFORE INVESTING OR SENDING MONEY.
**MENTOR INVESTMENT ADVISORS, LLC/DBA MENTOR INVESTMENT GROUP, LLC
1
<PAGE>
CASH RESOURCE TRUST SEMI-ANNUAL REPORT
MANAGERS' OVERVIEW
JANUARY 31, 1997
- --------------------------------------------------------------------------------
The five portfolios of the Cash Resource Trust (CRT), managed by Mentor
Investment Group, are invested in accordance with conservative standards which
place primary emphasis on liquidity and safety of principal.
* The CRT Money Market Fund is a diversified portfolio of fixed income
securities, including commercial paper, bank obligations, and other
short-term investments.
* 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.
* The CRT Tax-Exempt Money Market Fund is structured to generate income exempt
from federal income tax.
* The CRT California Tax-Exempt Money Market Fund is structured to generate
income exempt from both federal and California State income tax.
* The CRT New York Tax-Exempt Money Market Fund is structured to generate
income exempt from both federal and New York State income tax.
The six-month period ended January 31, 1997 was an unusual one for the short-
term fixed-income markets. It was a period in which Federal Reserve policy
remained unchanged, yet it was a period in which the markets nonetheless saw
considerable volatility, buffeted by speculation over future Fed policy.
During the second half of the period, economic statistics settled into a
remarkable pattern of fair to moderate growth, coupled with low inflation. In
short, the economy seemed to be moving ahead at just the right speed, requiring
the application of neither the accelerator nor the brake. For that reason, as it
had all year, the Federal Reserve opted for no change throughout the period.
As the period progressed, the yield curve tended to flatten as expectations of a
Fed increase faded. The spread between 90-day and one-year treasury bills, for
example, as wide as 0.65% earlier in the year, narrowed to about 0.35%. Our
activity centered on the middle portion of the curve, where analyses indicated
that buying opportunities existed. Late in the period, however, normal year-end
pressures developed and tended to steepen the short end of the curve, and our
activity shifted to this area.
2
<PAGE>
CASH RESOURCE TRUST SEMI-ANNUAL REPORT
MANAGERS' OVERVIEW (CONTINUED)
JANUARY 31, 1997
- --------------------------------------------------------------------------------
It is simply unlikely that we can continue to walk this most perfect of all
tightropes for very long. Either growth will accelerate and lead to inflationary
pressures, or we will slip into recession. Evidence seems to favor the former,
but whatever lies ahead, our pledge to you is to continue our emphasis on safety
and liquidity through high credit standards and conservative investment
policies.
We thank you for your confidence.
/s/ R. Preston Nuttall
- -----------------------------
R. Preston Nuttall
DIRECTOR OF CASH MANAGEMENT
/s/ Hubert R. White
- -----------------------------
Hubert R. White
PORTFOLIO MANAGER
/s/ Kathryn T. Allen
- -----------------------------
Kathryn T. Allen
PORTFOLIO MANAGER
THE MENTOR
MISSION STATEMENT
Our mission is to provide
professional investment
management services through
a firm that is second to
none in the quality of its
investment process, the
skill and training of its
professionals, and the
commitment, shared by all
its associates, to deliver
the highest level of service
and ethical behavior to
clients.
3
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- ------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITY 0.63%
Capital Equipment Receiving Trust, 5.60%, 10/15/97 $ 16,581 $ 16,581
- ------------------------------------------------------------------------------------------------------------------
BANKERS ACCEPTANCE 0.57%
Nationsbank Corporation, 5.35%, 2/03/97 15,000 15,000
- ------------------------------------------------------------------------------------------------------------------
BANK NOTES 3.41%
Bank of America, 5.48%, 4/16/97 30,000 30,000
First Tennessee Bank, 5.40%, 4/17/97 15,000 15,000
First Tennessee Bank, 5.40%, 4/17/97 25,000 25,000
Mellon Bank, 5.50%, 4/07/97 20,000 20,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES 90,000
- ------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 10.58%
Bank of Montreal, 5.32%, 2/24/97 50,000 50,000
Bank of Montreal, 5.40%, 4/25/97 50,000 50,000
Deutsche Bank Financial, Inc., 5.41%, 4/21/97 49,000 49,000
Regions Bank, 5.37%, 3/10/97 30,000 30,000
Regions Bank, 5.43%, 5/06/97 20,000 20,000
Societe Generale, Inc., 5.92%, 9/17/97 80,000 80,147
- ------------------------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 279,147
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 48.15%
ASSET-BACKED SECURITIES 5.81%
Greenwich Funding Corporation, 5.33%, 2/07/97 (a) 52,811 52,780
Greenwich Funding Corporation, 5.30%, 2/19/97 (a) 27,000 26,936
Monte Rosa Capital Corporation, 5.31%, 2/14/97 32,400 32,347
Monte Rosa Capital Corporation, 5.32%, 2/21/97 41,387 41,277
- ------------------------------------------------------------------------------------------------------------------
Total Asset Backed Securities 153,340
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS 12.77%
ABN-Amro North America Finance, Inc., 5.28%, 5/15/97 70,000 68,963
Nationsbank Corporation, 5.28%, 3/03/97 50,406 50,199
</TABLE>
4
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
COMMERCIAL PAPER (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
Societe Generale Inc., 5.37%, 2/07/97 $ 20,000 $ 19,988
Svenska Handelsbanken, 5.35%, 4/16/97 50,000 49,465
Svenska Handelsbanken, 5.37%, 7/30/97 50,000 48,680
UBS Union Bank Switzerland, 5.33%, 2/13/97 100,000 99,852
- ------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 337,147
- ------------------------------------------------------------------------------------------------------------------
ELECTRIC SERVICES 0.46%
Rincon Securities, Inc., 5.31%, 2/20/97 4,000 3,990
Rincon Securities, Inc., 5.33%, 3/17/97 8,100 8,050
- ------------------------------------------------------------------------------------------------------------------
Total Electric Services 12,040
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES 0.68%
Fletcher Challenge Finance USA, Inc., 5.42%, 3/19/97 12,500 12,417
Fletcher Challenge Finance UK, 5.42%. 3/19/97 5,500 5,464
- ------------------------------------------------------------------------------------------------------------------
Total Financial Services 17,881
- ------------------------------------------------------------------------------------------------------------------
HEALTH CARE 2.22%
Holy Cross Health Systems Corporation, 5.39%, 2/04/97 58,500 58,491
- ------------------------------------------------------------------------------------------------------------------
MOTOR VEHICLES AND CAR BODIES 3.77%
Ford Motor Credit Company, 5.34%, 2/05/97 50,000 49,985
Ford Motor Credit Company, 5.31%, 4/07/97 50,000 49,535
- ------------------------------------------------------------------------------------------------------------------
Total Vehicles and Car Bodies 99,520
- ------------------------------------------------------------------------------------------------------------------
RENTAL & LEASING 3.69%
General Electric Capital, 5.27%, 5/19/97 50,000 49,231
General Electric Capital, 5.38%, 9/25/97 50,000 48,252
- ------------------------------------------------------------------------------------------------------------------
Total Rental & Leasing 97,483
- ------------------------------------------------------------------------------------------------------------------
SECURITY BROKERS & DEALERS 18.75%
Bear Stearns Companies, Inc., 5.36%, 4/02/97 100,000 99,136
</TABLE>
5
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
COMMERCIAL PAPER (CONTINUED)
SECURITY BROKERS & DEALERS (CONTINUED)
CS First Boston, 5.33%, 4/09/97 $ 50,000 $ 49,520
Dean Witter Discover, 5.31%, 3/24/97 25,000 24,819
Dean Witter Discover, 5.32%, 2/14/97 25,000 24,959
Goldman Sachs Group, 5.30%, 5/16/97 50,000 49,249
Goldman Sachs Group, 5.30%, 6/13/97 25,000 24,522
Goldman Sachs Group, 5.32%, 4/25/97 25,000 24,701
Merrill Lynch & Company, Inc., 5.35%, 4/03/97 50,000 49,562
Merrill Lynch & Company, Inc., 5.38%, 6/23/97 50,000 48,954
Morgan Stanley Group, 5.32%, 2/07/97 50,000 49,971
Morgan Stanley Group, 5.34%, 4/25/97 50,000 49,399
- ------------------------------------------------------------------------------------------------------------------
Total Security Brokers & Dealers 494,792
- ------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 1,270,694
- ------------------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS 0.48%
Evans Street Properties, 5.45%, 1/01/08 3,700 3,700
Walker & Associates, 5.45%, 7/01/11 9,000 9,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS 12,700
- ------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES AND AGENCIES 7.20%
Federal Home Loan Bank, 5.35%-5.39%, 2/14/97-12/10/97 (b) 105,000 104,967
Student Loan Marketing Association, 5.37%-5.42%, 6/12/97-2/22/99
(b) 85,000 84,998
- ------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES AND AGENCIES 189,965
- ------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 29.04%
Dean Witter
Dated 1/31/97, 5.58%, due 2/03/97 (e) 100,000 100,000
</TABLE>
6
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
First Boston
Dated 1/31/97, 5.58%, due 2/03/97, collateralized by
$312,550 Federal Home Loan Mortgage Corporation,
7.00%, 11/01/26, (Market Value $306,006) $ 300,000 $ 300,000
Goldman, Sachs & Company
Dated 1/31/97, 5.49%, due 2/03/97, collateralized by
$256,446 Federal Home Loan Mortgage Corporation,
7.00%, 12/01/25-11/01/26, (Market Value $251,477) 246,447 246,447
Merrill Lynch & Company, Inc.
Dated 1/31/97, 5.60%, due 2/03/97, collateralized by
$40,662,072 Federal National Mortgage Association,
8.00%, 12/01/25, (Market Value $41,463); $84,300 Federal Home
Loan Mortgage Corporation,
7.00%, 1/01/27, (Market Value $82,640) 120,000 120,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 766,447
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $2,640,534) (D) 100.06% 2,640,534
- ------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES (0.06%) (1,596)
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $2,638,938
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
7
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- ---------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES AND AGENCIES 54.61%
Federal Home Loan Bank
5.23%-5.29%, 3/26/97-9/05/97 $ 258,135 $ 254,988
5.35%-5.39%, 2/14/97-12/10/97 (b) 115,000 114,967
Federal Home Loan Mortgage Corporation
5.21%-5.25%, 2/18/97-4/30/97 281,577 279,348
Federal National Mortgage Association
5.21%-5.30%, 2/03/97-10/15/97 454,995 449,924
5.07%, 1/15/98 (b) 100,000 99,954
Student Loan Marketing Association
5.35%-5.42%, 5/08/97-2/08/99 (b) 270,000 269,999
- ---------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES AND AGENCIES 1,469,180
- ---------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 45.48%
Dean Witter
Dated 1/31/97, 5.58%, due 2/03/97 (f) 100,000 100,000
First Boston
Dated 1/31/97, 5.58%, due 2/03/97,
collateralized by $125,020 Federal Home Loan
Mortgage Corporation, 7.00%, 11/01/26,
(Market Value $122,402) 120,000 120,000
Goldman, Sachs & Company
Dated 1/31/97, 5.49%, due 2/03/97, collateralized by $399,164
Federal Home Loan Mortgage Corporation, 7.00%,
6/02/26-11/01/26, (Market Value $391,430) 383,602 383,602
Lehman Brothers, Inc.
Dated 1/31/97, 5.50%, due 2/03/97,
collateralized by $57,386 Federal Home
Loan Mortgage Corporation, 7.00%-9.50%
4/01/25-1/01/27, (Market Value $58,537);
$63,633 Federal National
Mortgage Association, 7.00%-9.50%,
3/01/25-4/01/25, (Market Value $65,001) 120,000 120,000
</TABLE>
8
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ---------------------------------------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Merril Lynch & Company, Inc.
Dated 1/31/97, 5.60%, due 2/03/97, collateralized by
$305,354 Federal National Mortgage Association,
5.50%-9.50%, 1/01/09-12/01/25
(Market Value $299,335); $115,944
Federal Home Loan Mortgage Corporation, 7.00%,
12/01/08-1/01/27, (Market Value $113,846) $ 400,000 $ 400,000
United Bank of Switzerland
Dated 1/31/97, 5.57%, due 2/03/97 (g) 100,000 100,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 1,223,602
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $2,692,782) (D) 100.09% 2,692,782
- ---------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES (0.09%) (2,602)
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $2,690,180
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
9
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- -------------------------------------------------------------------------------------------------------
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) 53.04%
ALABAMA 2.18%
Montgomery Baptist Medical Center, Series B
3.55%, 12/01/30 $ 4,500 $ 4,500
University of Alabama Board of Trustees,
3.60%, 10/01/13 11,400 11,400
- -------------------------------------------------------------------------------------------------------
15,900
- -------------------------------------------------------------------------------------------------------
ARIZONA 4.40%
Apache County IDA Tucson Electric Power
Company Project, 3.55%, 6/15/20 10,000 10,000
Arizona Health Facility Authority Pooled
Loan Program, 3.55%, 10/01/15 5,000 5,000
Coconino City Tuscon Gas & Electric
Service PCRB, Series A, 3.65%, 5/01/31 8,800 8,800
County of Pima Arizona IDA Tucson
Retirement Center, 3.55%, 1/01/09 8,300 8,300
- -------------------------------------------------------------------------------------------------------
32,100
- -------------------------------------------------------------------------------------------------------
CALIFORNIA 1.33%
Anaheim C.O.P., Series 1993, 3.40%, 8/01/19 2,200 2,200
Chula Vista IDRB San Diego Gas & Electric,
3.80%, 12/01/21 3,500 3,500
Pasadena California C.O.P. Rose Bowl
Improvements, 3.50%, 12/01/16 4,000 4,000
- -------------------------------------------------------------------------------------------------------
9,700
- -------------------------------------------------------------------------------------------------------
COLORADO 0.93%
Colorado Student Obligation Bond
Authority Series A, 3.55%, 3/01/24 1,200 1,200
Denver City MFHB Seasons Apartments
Project, 3.60%, 10/01/06 5,600 5,600
- -------------------------------------------------------------------------------------------------------
6,800
- -------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA 1.10%
District of Columbia Health Facility Army
Distaff Foundation, 3.55%, 2/01/21 8,047 8,047
- -------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
GEORGIA 0.69%
Burke County PCRB Ogelthorpe Corporation,
Series A, 3.50%, 1/01/19 $ 5,000 $ 5,000
- -------------------------------------------------------------------------------------------------------
IOWA 0.69%
Student Loan Revenue Bond Series B,
3.55%, 12/01/13 5,000 5,000
- -------------------------------------------------------------------------------------------------------
ILLINOIS 5.15%
Chicago O'Hare International Airport (American
Airlines), Series 1983C, 3.60%, 1/01/18 7,700 7,700
City of Chicago-O'Hare International Airport
Revenue Bond, Series B, 3.66%, 1/01/18 2,000 2,000
Illinois DFA (Grayhill, Inc. Project)
IDRB, 3.75%, 2/01/05 3,150 3,150
Illinois DFA PCRB, 3.50%, 12/01/05 1,700 1,700
Illinois DFA (Flinn Scientific Project), 3.75%, 10/01/15 4,760 4,760
Illinois HFA (West Suburban Hospital), 3.50%, 7/01/05 3,200 3,200
Illinois Student Assistance Loan Revenue Bond,
Series A, 3.60%, 3/01/06 15,000 15,000
- -------------------------------------------------------------------------------------------------------
37,510
- -------------------------------------------------------------------------------------------------------
INDIANA 2.59%
Fort Wayne Hospital Authority (Parkview Memorial
Hospital), Series B, 3.55%, 1/01/16 8,750 8,750
Indiana Health Facility Financial Authority (Deaconess
Hospital), 3.55%, 1/01/22 10,100 10,100
- -------------------------------------------------------------------------------------------------------
18,850
- -------------------------------------------------------------------------------------------------------
KENTUCKY 0.34%
Kentucky Higher Education Student Loan,
3.65%, 6/01/26 2,500 2,500
- -------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
LOUISIANNA 5.50%
Louisiana PFA Hospital Revenue (Willis-Knighton
Medical Project), 3.45%, 9/01/23 $13,400 $ 13,400
Louisiana State Offshore Loop Inc., Series A,
3.55%, 9/01/08 85,300 5,300
New Orleans Aviation Revenue Refund, Series A
3.40%, 8/05/15 9,900 9,900
St. James Parish PCRB (Occidental Petroleum),
3.50%, 10/01/18 11,500 11,500
- -------------------------------------------------------------------------------------------------------
40,100
- -------------------------------------------------------------------------------------------------------
MASSACHUSETTS 0.63%
Massachusetts State Independent Financial Agency,
(Whitehead Institutional Biomedical), 3.45%, 7/01/26 4,600 4,600
- -------------------------------------------------------------------------------------------------------
MARYLAND 1.77%
Anne Arundel County (Oakland Hills Project),
3.55%, 5/15/15 2,052 2,052
Howard County Revenue Bond, (Harmony Hall, Inc. Project),
3.55%, 10/01/10 2,868 2,868
Maryland State Health & Higher Education,
Series B, Pooled Loan Program, 3.45%, 4/01/35 8,000 8,000
- -------------------------------------------------------------------------------------------------------
12,920
- -------------------------------------------------------------------------------------------------------
MONTANA 0.96%
Forsyth PCRB (Pacific Corporation
Project), 3.65%, 1/01/18 7,000 7,000
- -------------------------------------------------------------------------------------------------------
NORTH CAROLINA 1.99%
Durham County Water & Sewer, 3.45%, 12/01/15 4,800 4,800
Lincoln County Industrial Facility PCRB
Series 1994, 3.70%, 8/01/09 5,500 5,500
North Carolina Education Facilities, (Bowman
Grey School Medical), 3.50%, 9/01/20 4,200 4,200
- -------------------------------------------------------------------------------------------------------
14,500
- -------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
NEW HAMPSHIRE 1.67%
New Hampshire Health and Higher Education,
(VHA) Series B, 3.55%, 12/01/25 $12,125 $ 12,125
- -------------------------------------------------------------------------------------------------------
NEW MEXICO 0.28%
Albuquerque Gross Receipts Lodgers Tax,
Series A, 3.55%, 7/01/22 2,050 2,050
- -------------------------------------------------------------------------------------------------------
NEW YORK 1.99%
New York GO Bond, Series D, 3.45%, 2/01/22 12,400 12,400
New York City Housing Development, (East 17th Street
Properties) Series 1993A, 3.70%, 1/01/23 300 300
New York IDRB (Brooklyn Navy Yard), 3.75%, 7/01/29 800 800
New York City, Series 1995A, 3.75%, 6/15/25 300 300
New York City Cultural Resource Revenue,
(Solomon R. Guggenheim), Series B, 3.50%, 12/01/15 400 400
New York State LGAC, Series G, 3.35%, 4/01/25 300 300
- -------------------------------------------------------------------------------------------------------
14,500
- -------------------------------------------------------------------------------------------------------
OHIO 0.82%
Ohio State Air Quality Authority, Series A, 3.55%, 4/01/28 6,000 6,000
- -------------------------------------------------------------------------------------------------------
PENNSYLVANIA 1.36%
Sayre Pennsylvania Health Care Facility, (VHA
Capital Finance Project), 3.50%, 12/01/20 9,900 9,900
- -------------------------------------------------------------------------------------------------------
SOUTH CAROLINA 1.27%
South Carolina Jobs (Presbyterian Home of SC),
3.60%, 12/01/21 9,250 9,250
- -------------------------------------------------------------------------------------------------------
TENNESSEE 0.63%
Nashville and Davidson County Health
and Education Facility, 3.55%, 5/01/20 4,615 4,615
- -------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
TEXAS 7.46%
Brazos River Texas Harbor, 3.70%, 4/01/31 $ 8,600 $ 8,600
Brazos Texas Higher Education, Series B-1, 3.55%, 6/01/23 2,000 2,000
Calhoun County Texas IDRB (Formosa Plastics Corporation
Project), 3.60%, 11/01/15 28,500 28,500
Red River Authority Texas PCRB (Southwestern Public
Service), 3.50%, 7/01/16 5,000 5,000
Texas Health Facility Authority, Series 1985B,
3.50%, 8/01/25 10,300 10,300
- -------------------------------------------------------------------------------------------------------
54,400
- -------------------------------------------------------------------------------------------------------
VIRGINIA 6.02%
Arlington County (Ballston Public
Parking), 3.55%, 8/01/17 3,650 3,650
Botetourt County IDRB (Emkay Holdings
Project), 3.60%, 10/01/05 2,700 2,700
Capital Regional Airport Series 1995C,
3.50%, 7/01/23 4,000 4,000
Hampton Roads Regional Jail, Series 1996B,
3.50%, 7/01/16 6,500 6,500
Hanover County IDRB (Carter Machinery),
3.55%, 11/01/98 500 500
Henrico County IDA (Hermitage Project),
3.70%, 5/01/24 2,500 2,500
Louisa County IDA Virginia Muncipal Bond
Fund, 3.55%, 1/01/20 7,500 7,500
Lynchburg IDA (VHA Mid-Atlantic) Series G,
3.55%, 12/01/25 500 500
Newport News MFHB, (Oxford Project),
3.55%, 11/01/06 8,700 8,700
Richmond IDB (Commonwealth Park),
3.60%, 11/01/07 1,364 1,364
Roanoke IDRB (Quibell Corporate Project),
3.55%, 9/01/15 292 292
Spotsylvania City IDA Residential Care
Facilities, 3.55%, 10/01/20 4,684 4,684
</TABLE>
14
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
VIRGINIA (CONTINUED)
Tazewell County IDRB (Coal Fillers, Inc.)
3.75%, 1/01/03 $ 1,000 $ 1,000
- -------------------------------------------------------------------------------------------------------
43,890
- -------------------------------------------------------------------------------------------------------
WEST VIRGINIA 0.74%
West Virginia State Hospital, (VHA Midatlantic) Series G,
3.55%, 12/01/25 5,400 5,400
- -------------------------------------------------------------------------------------------------------
WYOMING 0.55%
Sweetwater County PCRB (Pacific Corporation Project),
Series A, 3.50%, 7/01/15 4,000 4,000
- -------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 386,657
- -------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES 49.89%
ALABAMA 0.38%
IDB of Fairfield, (USX Corporation Project), Series 1995,
3.65%, 3/03/97 2,775 2,775
- -------------------------------------------------------------------------------------------------------
ARIZONA 5.56%
Meza Municipal Development Corporation,
3.45%, 4/10/97 3,500 3,500
Salt River Project, 3.40%, 2/10/97 29,400 29,400
Spec Fund of the Industrial Committee of AZ,
Refunding C.O.P.'s, 3.40%, 2/20/97 7,600 7,600
- -------------------------------------------------------------------------------------------------------
40,500
- -------------------------------------------------------------------------------------------------------
COLORADO 0.41%
State of Colorado General Fund TRANS, Series A, 4.50%,
6/27/97 3,000 3,007
- -------------------------------------------------------------------------------------------------------
FLORIDA 0.80%
Putnam County Development Authority
(Seminole Electric) Series 1984, 3.45%, 6/15/97 5,800 5,800
- -------------------------------------------------------------------------------------------------------
GEORGIA 0.15%
Burke County PCRB, Series A, 3.60%, 2/11/97 1,100 1,100
- -------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
ILLINOIS 2.92%
Chicago Illinois GO Tender Note,
3.10%-3.55%, 2/04/97-10/31/97 $21,300 $ 21,300
- -------------------------------------------------------------------------------------------------------
INDIANA 1.10%
Jasper City PCRB, Series D, 3.40%, 5/21/97 8,000 8,000
- -------------------------------------------------------------------------------------------------------
KENTUCKY 1.40%
Clark City PCRB (Kentucky Power)
Series J-2, 3.65%, 4/15/97 6,920 6,920
Pulaski County Solid Waste Project,
Series B, 3.70%, 2/15/97 3,300 3,300
- -------------------------------------------------------------------------------------------------------
10,220
- -------------------------------------------------------------------------------------------------------
LOUISIANA 0.89%
Plaquemines Port Harbor Terminal,
Series C, 3.70%, 2/06/97 6,500 6,500
- -------------------------------------------------------------------------------------------------------
MARYLAND 0.69%
Montgomery County, BANS Series 1995
3.45%, 4/01/97 5,000 5,000
- -------------------------------------------------------------------------------------------------------
MICHIGAN 0.89%
Michigan Municipal Bond Authority,
Series 1996D, 4.50%, 9/19/97 3,000 3,010
Michigan State PCRB (Dow Chemical)
3.55%, 2/13/97 3,500 3,500
- -------------------------------------------------------------------------------------------------------
6,510
- -------------------------------------------------------------------------------------------------------
MINNESOTA 0.76%
Rochester Health Care (Mayo Foundation)
Series C, 3.40%, 2/14/97 3,550 3,550
University of Minnesota Revenue Bond,
Series 1985H, 3.35%, 3/10/97 2,000 2,000
- -------------------------------------------------------------------------------------------------------
5,550
- -------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
MISSOURI 1.27%
Missouri Water Utility, Series 1986, 3.50%, 2/14/97 $ 9,250 $ 9,250
- -------------------------------------------------------------------------------------------------------
MISSISSIPPI 0.97%
Claiborne County PCRB, 3.50%-3.55%,
2/03/97-4/07/97 7,100 7,100
- -------------------------------------------------------------------------------------------------------
NORTH CAROLINA 1.37%
North Carolina Power Agency Series B,
3.50%, 3/11/97 10,000 10,000
- -------------------------------------------------------------------------------------------------------
NEW JERSEY 0.80%
Parsippany-Troy Hills Township BANS, 4.25%, 10/31/97 5,770 5,792
- -------------------------------------------------------------------------------------------------------
NEW YORK 5.11%
Nassau County BANS, Series A, 4.25%, 8/15/97 5,400 5,419
New York State BANS, Series S, 3.35%, 2/06/97 10,700 10,700
New York City GO TECP, 3.45%, 2/20/97 1,700 1,700
New York City TRANS, Series A, 4.50%, 2/12/97 3,000 3,000
New York City RANS, Series A, 4.50%, 4/15/97 10,000 10,018
New York Dorm Authority, (Sloan-Kettering Cancer Center),
3.40%, 2/20/97 5,700 5,700
New York State Environment Project, Series 1992A 3.40%,
2/26/97 700 700
- -------------------------------------------------------------------------------------------------------
37,237
- -------------------------------------------------------------------------------------------------------
TEXAS 12.61%
Brazos Harbor IDB Series 1986, 3.55%, 5/22/97 3,700 3,700
Harris City Health Care Sisters of Charity,
3.45%-3.50%, 2/10/97-2/18/97 14,600 14,600
Houston TRANS, 4.50%, 6/30/97 5,000 5,014
Houston TECP Series B, 3.35%, 2/20/97 5,000 5,000
Houston Water & Sewer TECP, 3.55%, 2/20/97 5,000 5,000
Plano Health Facilities (Childrens & Presbyterian
Hospital) 3.45%, 2/10/97 7,000 7,000
San Antonio Electric & Gas TECP Series A, 3.50%-3.55%,
3/12/97 22,300 22,300
</TABLE>
17
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
SHARES OR
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- -------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
TEXAS (CONTINUED)
State of Texas TRANS, 4.75%, 8/29/97 $27,115 $ 27,278
Texas A & M University, Series B, 3.45%, 2/12/97 2,000 2,000
- -------------------------------------------------------------------------------------------------------
91,892
- -------------------------------------------------------------------------------------------------------
VIRGINIA 6.96%
Chesterfield County IDA, Series 1987B (VEPCO),
3.45%-3.60%, 2/10/97-2/28/97 10,400 10,400
Fairfax County, Series B, 6.85%, 4/01/97 700 709
Fairfax County (Inova Health Systems),
Series 1993B, 3.45%, 2/07/97 3,300 3,300
Falls Church IDRB, 3.65%, 5/01/97 500 500
Newport News GO, Series E, 7.25%, 1/01/98 1,000 1,032
Virginia HDA Commonwealth Mortgage,
Series H, 3.40%, 7/22/97 15,000 14,992
Virginia GO BANS, Series 1995, 3.40%, 4/08/97 12,820 12,820
York County IDA (VEPCO), 3.60%,
2/10/97-4/04/97 7,000 7,000
- -------------------------------------------------------------------------------------------------------
50,753
- -------------------------------------------------------------------------------------------------------
WISCONSIN 0.69%
City of Milwaukee, Short-Term School Order Notes, Series
1996B, 4.25%, 8/21/97 5,000 5,012
- -------------------------------------------------------------------------------------------------------
WEST VIRGINIA 3.32%
West Virginia HDA Interim Financing Notes, Series 1996F,
3.45%, 2/28/97 24,200 24,200
- -------------------------------------------------------------------------------------------------------
OTHER 0.86%
AIM-TFIC Institutional, 3.40%, 2/03/97 5,000 5,000
PNC Municash, 3.48%, 2/03/97 1,273 1,273
- -------------------------------------------------------------------------------------------------------
6,273
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 363,771
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $750,428) (D) 102.94% 750,428
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES (2.94%) (21,422)
- -------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $729,006
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
18
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- --------------------------------------------------------------------------------------------------------------
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) 57.32%
ABAG Finance Authority 1993 C.O.P.,
3.40%, 1/01/23 $ 3,300 $ 3,300
Anaheim C.O.P. 1993 Refunding Project,
3.4%, 8/01/19 3,800 3,800
CA HFA Revenue Bond (Adventist Health)
Series A, 3.40%, 8/01/21 3,500 3,500
CA PCRB (Contra Costa Waste) Series A,
3.55%, 12/01/10 2,000 2,000
CA PCRB (Sanger Project) Series A,
3.50%, 9/01/20 3,000 3,000
CA PCRB (Shell Martiniz Refining) Series A,
3.60%, 10/01/31 3,000 3,000
CA PCRB (Western Waste), 3.43%, 12/01/00 2,200 2,200
CA Statewide Community Development,
3.60%, 4/01/11 2,200 2,200
Chula Vista IDRB (San Diego Gas & Electric)
3.80%, 12/01/21 1,500 1,500
Corona MFHB (Country Hills Project), Series B,
3.45%, 2/01/20 3,000 3,000
Fremont MFHB (Creekside Village Apartments),
Series D, 3.42%, 9/01/07 3,000 3,000
Irvine Public Facilities Capital Improvement,
3.45%, 11/01/10 3,400 3,400
Los Angeles County Pension Obligation, Series C,
3.40%, 6/30/07 3,000 3,000
Redlands C.O.P. (Sewer Facilities), 3.50%, 9/01/17 1,110 1,110
Riverside City TRANS, Series B, 3.45%, 6/30/97 3,100 3,100
San Francisco City & County MFHB
(Rincon Center Project), Series B, 3.45%, 12/01/06 1,010 1,010
Simi Valley Public Finance Authority Lease
Revenue, 3.50%, 9/01/15 3,000 3,000
Southern California Public Power Authority Power
Project Revenue Bonds 1996, Series C, 3.40%, 7/01/17 2,000 2,000
- --------------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT SECURITIES 47,120
- --------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
SHARES OR
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES 40.68%
CA PCRB (Dow Chemical), Series 1985,
3.30%, 2/24/97 $ 2,500 $ 2,500
CA PCRB Pacific Gas & Electric,
3.25%-3.30%, 2/20/97-5/19/97 5,000 5,000
CA PCRB (Southern California), Series 1985 A,
3.30 %, 2/25/97 3,000 3,000
City of San Diego IDRB, 3.30%, 2/27/97 2,000 2,000
Commonwealth-Puerto Rico TRANS, Series A,
4.00%, 7/30/97 3,200 3,209
Los Angeles City Metropolitan,
3.40%, 3/20/97 4,000 4,000
Los Angeles USD TRANS, 4.50%, 9/30/97 4,000 4,027
Puerto Rico GDB TECP, 3.35%, 2/03/97 4,700 4,700
Sacremento Muni Utilities,
3.25%-3.30%, 2/26/97-5/21/97 5,000 5,000
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 33,436
- --------------------------------------------------------------------------------------------------------------
OTHER 1.66%
California Money Fund, 3.39%, 2/03/97 1,366 1,366
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $81,922) (D) 99.66% 81,922
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.34% 280
- --------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $ 82,202
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIO OF INVESTMENT.
20
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- --------------------------------------------------------------------------------------------------------------
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) 64.79%
NY State GO Bonds 1994, Series A A-5,
3.65%, 8/01/15-8/01/16 $ 300 $ 300
NY City Housing Development (Columbus
Apartments) MFHB Series A, 3.35%, 3/15/25 300 300
NY City Housing Development (Tribeca Towers)
MFHB Series A, 3.45%, 12/15/24 300 300
NY IDRB (Brooklyn Navy Yard), 3.75%, 7/01/29 300 300
NY City Cultural Resource Revenue (American
Museum of Natural History) Series B,
3.35%, 4/01/21 300 300
NY City Cultural Resource Revenue (Solomon R.
Guggenheim) Series B, 3.50%, 12/01/15 300 300
NY State Dormitory Authority (Metropolitan
Museum of Art) Series A, 3.40%, 7/01/15 300 300
NY State Energy Electric Facility (LILCO) Series B,
3.45%, 11/01/23 400 400
NY State Energy Resource Development PCRB,
(NY State Electric & Gas) Series C,
3.55%, 6/01/29 320 320
NY State Housing (Liberty View) Series 1985A,
3.40%, 11/01/05 100 100
NY State HFA (Normandie Court I Project),
3.45%, 5/15/15 300 300
NY State (LGAC) Series C, 3.40%, 4/01/25 400 400
NY State Medical Care (Pooled Equipment Loan
Program II) Series A, 3.35%, 11/01/03 300 300
Niagra Falls Bridge Commission Toll Revenue
Series A, 3.35%, 10/01/19 300 300
Port Authority of NY and NJ (Versatile Structure
Obligation) Series 1996, 3.65%, 8/01/24 300 300
Suffolk County Water Authority BANS,
3.45%, 2/08/01 300 300
Triborough Bridge and Tunnel Authority,
Special Obligation, 3.40%, 1/01/24 300 300
- --------------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 5,120
- --------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
SHARES OR
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES 29.77%
City of Mount Vernon, New York School District
5.40%, 2/01/97 $ 250 $ 250
Commonwealth of Puerto Rico TRANS, Series A,
4.00%, 7/30/97 301 301
Nassau County BANS, Series A, 4.25%, 8/15/97 301 301
NY Dormitory Authority (Sloan Kettering
Cancer Center) Series 1989C, 3.40%, 2/20/97 300 300
NY State BANS, 3.35%, 2/06/97 300 300
NY State Environmental Solid Waste Disposal (GE Project) Series
1992A, 2/26/97 300 300
NY State GO, 3.45%, 2/20/97 300 300
Puerto Rico GDB TECP, 3.35%, 2/03/97 300 300
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 2,352
- --------------------------------------------------------------------------------------------------------------
OTHER 3.96%
PNC Municash, 3.33%, 2/03/97 313 313
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $7,785) (D) 98.52% 7,785
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 1.48% 117
- --------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $ 7,902
- --------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTMENT ABBREVIATIONS
BANS - Bond Anticipation Notes IDB - Industrial Development Bond
CA - California IDRB - Industrial Development Revenue
C.O.P. - Certificate Of Participation Bond
DFA - Development Finance Authority MFHB - Multi-Family Housing Bond
GO - General Obligation NY - New York
HAD - Housing Development Authority NJ - New Jersey
HFA - Housing Finance Authority PCRB - Pollution Control Revenue Bond
IDA - Industrial Development Authority RANS - Revenue Anticipation Notes
TECP - Tax-Exempt Commercial Paper
TRANS - Tax and Revenue Anticipation
Notes
22
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
NOTES TO PORTFOLIOS OF INVESTMENTS
(a) These are securities that may be resold to qualified institutional buyers
under Rule 144A or securities offered pursuant to section 4(2) of the
Securites Act of 1933, as amended. These securities have been determined to
be liquid under guidelines that have been established by the Board of
Trustees.
(b) Floating Rate Securities -- The rates shown are the effective rates at
January 31, 1997.
(c) Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in (b).
(d) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same.
(e) Fully collateralized by various U.S. Treasuries and U.S. Agencies Securities
with total par value of $134,915, maturity dates of 2/01/97-10/01/32, rates
of 5.57%-12.00%, and total market value of $103,172.
(f) Fully collateralized by various U.S. Treasuries and U.S. Agencies Securities
with total par value of $117,723, maturity dates of 3/06/97-1/01/27, rates
of 5.81%-10.00%, and total market value of $102,602.
(g) Fully collateralized by various U.S. Agencies Securities with total par
value of $103,512, maturity dates of 11/15/04-2/1/27, rates of 5.50%-8.50%
and total market value of $101,943.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
California New York
U.S. Tax- Tax- Tax-
Government Exempt Exempt Exempt
Money Money Money Money Money
Market Market Market Market Market
Fund Fund Fund Fund Fund
<S> <C>
- --------------------------------------------------------------------------------------------------------
ASSETS
Investments, at amortized cost (Note 2)
Investment securities $1,874,087 $1,469,180 $750,428 $ 81,922 $7,785
Repurchase agreements 766,447 1,223,602 - - -
- --------------------------------------------------------------------------------------------------------
Total investments 2,640,534 2,692,782 750,428 81,922 7,785
Receivables
Interest receivable 5,474 4,388 4,350 386 33
Deferred expenses (Note 2) 51 236 51 6 -
Other 71 - - 19 97
- --------------------------------------------------------------------------------------------------------
Total assets 2,646,130 2,697,406 754,829 82,333 7,915
- --------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Dividends 5,989 6,124 1,021 107 10
Investments purchased - - 24,701 - -
Accrued distribution fee
(Note 3) 228 242 54 6 -
Accrued transfer agent fee 465 549 - 7 -
Accrued expenses and other
liabilities 510 311 47 11 3
- --------------------------------------------------------------------------------------------------------
Total liabilities 7,192 7,226 25,823 131 13
- --------------------------------------------------------------------------------------------------------
NET ASSETS $2,638,938 $2,690,180 $729,006 $ 82,202 $7,902
- --------------------------------------------------------------------------------------------------------
Shares outstanding 2,638,968 2,690,173 729,008 82,202 7,902
Net asset value per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
California New York
U.S. Tax- Tax- Tax-
Government Exempt Exempt Exempt
Money Money Money Money Money
Market Market Market Market Market
Fund Fund Fund Fund* Fund*
<S> <C>
- ---------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $45,497 $ 55,398 $9,145 $465 $ 38
- ---------------------------------------------------------------------------------------------------
EXPENSES
Distribution fee (Note 3) 3,141 3,889 852 46 4
Management fee (Note 3) 1,583 1,946 557 30 2
Transfer agent fee (Note 3) 1,730 1,723 226 14 2
Custodian and accounting fees
(Note 3) 324 415 99 5 1
Shareholder reports 171 184 17 1 -
Registration fees 135 124 56 5 2
Professional fees 56 65 15 1 -
Organizational expenses 6 27 5 - -
Directors' fees 6 7 2 - -
Other 16 19 4 1 -
- ---------------------------------------------------------------------------------------------------
Total expenses 7,168 8,399 1,833 103 11
- ---------------------------------------------------------------------------------------------------
Deduct
Waiver of management fee (Note 3) - - - - 2
- ---------------------------------------------------------------------------------------------------
Net expenses 7,168 8,399 1,833 103 9
- ---------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 38,329 46,999 7,312 362 29
- ---------------------------------------------------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on
investments sold (30) 60 - - -
- ---------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $38,299 $ 47,059 $7,312 $362 $ 29
- ---------------------------------------------------------------------------------------------------
</TABLE>
*For the period from December 9, 1996 (commencement of operations) to January
31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Money Market
Fund
---------------------------
Six Months
Ended Year
1/31/97 Ended
(Unaudited) 7/31/96
<S> <C>
- --------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
OPERATIONS
Net investment income $ 38,329 $ 25,677
Net realized gain (loss) on investments sold (30) -
- --------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 38,299 25,677
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (38,329) (25,677)
Net realized gain on investments - -
- --------------------------------------------------------------------------------------------------------------
Net decrease from distributions (38,329) (25,677)
- --------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (AT $1.00 PER SHARE)
Net proceeds from sale of shares 5,551,087 3,001,684
Reinvestment of dividends 33,684 25,161
Cost of shares redeemed (3,592,303) (2,803,002)
- --------------------------------------------------------------------------------------------------------------
Change in net assets from capital share transactions 1,992,468 223,843
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets 1,992,438 223,843
NET ASSETS
Beginning of period 646,500 422,657
- --------------------------------------------------------------------------------------------------------------
End of period $2,638,938 $ 646,500
- --------------------------------------------------------------------------------------------------------------
</TABLE>
*For the period from December 9, 1996 (commencement of operations) to January
31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
<TABLE>
<CAPTION>
California New York
U.S. Government Tax-Exempt Tax-Exempt Tax-Exempt
Money Market Money Market Money Money
Fund Fund Market Fund Market Fund
--------------------------- -------------------------- ------------- -------------
Six Months Six Months Period Period
Ended Year Ended Year Ended Ended
1/31/97 Ended 1/31/97 Ended 1/31/97* 1/31/97*
(Unaudited) 7/31/96 (Unaudited) 7/31/96 (Unaudited) (Unaudited)
<S> <C>
- -------------------------------------------------------------------------------------------------------
$ 46,999 $ 61,080 $ 7,312 $ 8,184 $ 362 $ 29
60 - - - - -
- -------------------------------------------------------------------------------------------------------
47,059 61,080 7,312 8,184 362 29
(46,999) (61,080) (7,312) (8,184) (362) (29)
(60) - - - - -
- -------------------------------------------------------------------------------------------------------
(47,059) (61,080) (7,312) (8,184) (362) (29)
- -------------------------------------------------------------------------------------------------------
5,378,432 5,769,658 1,500,783 1,194,000 149,654 14,154
43,700 60,634 6,646 8,146 254 19
(4,134,349) (5,644,585) (1,069,314) (1,178,150) (67,706) (6,271)
- -------------------------------------------------------------------------------------------------------
1,287,783 185,707 438,115 23,996 82,202 7,902
- -------------------------------------------------------------------------------------------------------
1,287,783 185,707 438,115 23,996 82,202 7,902
1,402,397 1,216,690 290,891 266,895 - -
- -------------------------------------------------------------------------------------------------------
$2,690,180 $ 1,402,397 $ 729,006 $ 290,891 $ 82,202 $ 7,902
- -------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market Fund
-------------------------------------------------------
Six
Months
Ended Year Year Period
1/31/97 Ended Ended Ended
(Unaudited) 7/31/96 7/31/95 7/31/94*
<S> <C>
- ----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.024** 0.050 0.050** 0.020
DISTRIBUTIONS
Net investment income (0.024) (0.050) (0.050)** (0.020)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Total Return 2.35% 4.91% 4.97% 1.83%
- ----------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 2,638,938 $646,500 $422,657 $ 192,260
Ratio of expenses to average net assets 0.88%(a) 0.82% 0.82% 0.89%(a)
Ratio of expenses to average net assets
excluding waivers 0.88%(a) 0.82% 0.82% 0.93%(a)
Ratio of net investment income to average net
assets 4.69%(a) 4.77% 4.96% 2.96%(a)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
* For the period from December 20, 1993 (commencement of operations) to July
31, 1994.
** Includes net realized capital gains (losses) which were under $0.001 per
share.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
- -------------------------------------------------------------
Six
Months
Ended Year Year Period
1/31/97 Ended Ended Ended
(Unaudited) 7/31/96 7/31/95 7/31/94*
<S> <C>
- -------------------------------------------------------------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
0.023** 0.050 0.050** 0.020
(0.023)** (0.050) (0.050) (0.020)
- -------------------------------------------------------------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
- -------------------------------------------------------------
2.32% 4.74% 4.82% 1.82%
- -------------------------------------------------------------
- -------------------------------------------------------------
$ 2,690,180 $1,402,397 $1,216,690 $ 907,819
0.83%(a) 0.93% 0.88% 0.80%(a)
0.83%(a) 0.93% 0.88% 0.83%(a)
4.64%(a) 4.63% 4.75% 2.91%(a)
- -------------------------------------------------------------
</TABLE>
29
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Tax-Exempt
Money Market Fund
-------------------------------------------------------
Six
Months
Ended Year Year Period
1/31/97 Ended Ended Ended
(Unaudited) 7/31/96 7/31/95 7/31/94*
<S> <C>
- ----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.014 0.030 0.030** 0.010
DISTRIBUTIONS
Net investment income (0.014) (0.030) (0.030) (0.010)
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Total Return 1.43% 2.90% 3.05% 1.16%
- ----------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 729,006 $290,891 $266,895 $ 195,702
Ratio of expenses to average net assets 0.72%(a) 0.76% 0.72% 0.65%(a)
Ratio of expenses to average net assets
excluding waivers 0.72%(a) 0.78% 0.74% 0.74%(a)
Ratio of net investment income to average net
assets 2.86%(a) 2.85% 3.01% 1.87%(a)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
* For the period from December 20, 1993 (commencement of operations) to July
31, 1994.
** Includes net realized capital gains (losses) which were under $0.001 per
share.
*** For the period from December 9, 1996 (commencement of operations) to January
31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
<TABLE>
<CAPTION>
California Tax-Exempt New York Tax-Exempt
Money Market Fund Money Market Fund
- --------------------- -------------------
Period Ended Period Ended
1/31/97*** 1/31/97***
(Unaudited) (Unaudited)
<S> <C>
- ----------------------------------------------------------
$ 1.000 $ 1.000
0.004 0.004
(0.004) (0.004)
- ----------------------------------------------------------
$ 1.000 $ 1.000
- ----------------------------------------------------------
0.41% 0.41%
- ----------------------------------------------------------
$82,202 $ 7,902
0.75%(a) 0.80%(a)
0.75%(a) 1.04%(a)
2.70%(a) 2.71%(a)
</TABLE>
31
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997 (UNAUDITED)
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 five separate diversified funds
(hereinafter each individually referred to as a "Fund" or collectively as the
"Funds") at January 31, 1997 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")
Cash Resource California Tax-Exempt Money Market Fund ("California Tax-
Exempt Fund")
Cash Resource New York Tax-Exempt Money Market Fund ("New York Tax-Exempt
Fund")
The investment objective of each Fund is to seek current income consistent with
preservation of capital and maintenance of liquidity.
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 in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect amounts
reported herein. Although actual results could differ from these estimates, any
such differences are expected to be immaterial to the net assets of 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.
32
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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
counterparties to honor the terms of the repurchase agreement. Accordingly, the
Trust could receive less than the repurchase price on the sale of collateral
securities.
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.
33
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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, 1996, U.S. Government 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.
NOTE 3: INVESTMENT MANAGEMENT AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGEMENT AGREEMENT
On November 1, 1996, Mentor Investment Advisors, LLC (formerly Commonwealth
Investment Counsel, Inc.) became the Fund's investment adviser at which time the
obligations of Commonwealth Investment Counsel, Inc., were transferred to Mentor
Investment Advisors, LLC (Mentor Advisors). Mentor Advisors is a wholly owned
subsidiary of Mentor Investment Group, LLC (formerly, Mentor Investment Group,
Inc.). Mentor Investment Group, LLC (Mentor) is a subsidiary of Wheat First
Butcher Singer, Inc. (Wheat).
Also, effective November 1, 1996, EVEREN Capital Corporation, acquired a 20%
ownership interest in Mentor Investment Group, LLC from Wheat First Butcher
Singer, Inc. As part of the acquisition agreement, EVEREN may acquire additional
ownership based principally on the amount of Mentor Investment Group, LLC's
revenues derived from clients of EVEREN Securities, Inc. and assets attributable
to its affiliates.
Each Fund pays management fees to Mentor Advisors 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.
Prior to November 1, 1996, Commonwealth Advisors, Inc. (Investment
34
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Adviser) served as the Funds' investment adviser. Commonwealth Investment
Counsel, Inc. (Commonwealth), an affiliate of the Investment Adviser served as
sub-adviser to each of the Funds, pursuant to a sub-advisory agreement among the
Investment Adviser, Commonwealth and the Trust.
Mentor Advisors 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 period ended January 31, 1997, Mentor Advisors
earned the following advisory fees:
<TABLE>
<CAPTION> Adviser
Adviser Fee
Fee Voluntarily
Earned Waived
<S> <C>
- -------------------------------------------------------
Money Market Fund $1,583,037 $ -
U.S. Government Fund 1,946,036 -
Tax-Exempt Fund 557,300 -
California Tax-Exempt
Fund 30,489 -
New York Tax-Exempt Fund 2,392 2,392
- -------------------------------------------------------
</TABLE>
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 period ended January 31, 1997, the Money Market
Fund, U.S. Government Fund and Tax-Exempt Fund paid $26,864, $61,426 and $12,888
respectively to Mentor for these direct reimbursements.
DISTRIBUTION AGREEMENT
Under a Distribution Agreement, Mentor Distributors, LLC (Mentor Distributors)
(formerly, Mentor 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, U.S. Government Fund
and New York Tax-Exempt Fund and 0.33% of the Fund's average daily net assets
for the Tax-Exempt Fund and California Tax-Exempt Fund.
35
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
In order to compensate selected financial institutions, such as investment
dealers and banks through which shares of each Fund are sold ("Financial
Institutions") for services provided in connection with sales of shares of each
Fund and/or for administrative services and the maintenance of shareholder
accounts, Mentor Distributors may make periodic payments to qualifying Financial
Institutions based on the average net asset value of shares of a Fund which are
attributable to shareholders for whom the Financial institutions are designated
as the Financial Institution of record. Mentor Distributors may make such
payments at the annual rate of up to 0.40% of the average net asset value of
such shares (0.33% in the case of Tax-Exempt Fund and California 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 period ended January 31, 1997, Wheat
earned fees of $1,729,968, $1,722,616, $225,724, $14,403 and $2,000 respectively
from the Money Market Fund, U.S. Government Fund, Tax-Exempt Fund, California
Tax-Exempt Fund and New York Tax-Exempt Fund.
NOTE 4: CONCENTRATION OF CREDIT RISK
California Tax-Exempt Fund and New York Tax-Exempt Fund invest in obligations
issued by the States of California and New York and by their political
subdivisions and duly constituted authorities. The issuers' abilities to meet
their obligations may be affected by economic and political developments in the
States of California and New York. Certain debt obligations held by each of the
Funds in the Trust are entitled to the benefits of insurance, standby letters of
credit or other guarantees of banks or other financial institutions.
36
<PAGE>
CASH RESOURCE TRUST
SHAREHOLDER INFORMATION
TRUSTEES
Daniel J. Ludeman, TRUSTEE & CHAIRMAN
Chairman and Chief Executive Officer
Mentor Investment Group, LLC
Arnold H. Dreyfuss, TRUSTEE
former Chairman and
Chief Executive Officer
Hamilton Beach/Proctor-Silex, Inc.
Thomas F. Keller, TRUSTEE
former Dean, Fuqua School of Business
Duke University
Louis W. Moelchert, Jr., TRUSTEE
Vice President for Business & Finance
University of Richmond
Stanley F. Pauley, Jr., TRUSTEE
Chairman and Chief Executive Officer
Carpenter Company
Troy A. Peery, Jr., TRUSTEE
President
Heilig-Meyers Company
Peter J. Quinn, Jr., TRUSTEE
Managing Director
Mentor Investment Group, LLC
OFFICERS
Paul F. Costello, PRESIDENT
Managing Director
Mentor Investment Group, LLC
Terry L. Perkins, TREASURER
Senior Vice President
Mentor Investment Group, LLC
John M. Ivan, SECRETARY
Managing Director/Assistant General Counsel
Wheat First Butcher Singer, Inc.
Michael A. Wade, ASSISTANT TREASURER
Vice President
Mentor Investment Group, LLC
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.
<PAGE>
(This Page Intentionally Left Blank)
<PAGE>
CASH RESOURCE TRUST BULK RATE
901 East Byrd Street U.S. POSTAGE
Richmond, VA 23219 PAID
(800) 382-0016 RICHMOND, VIRGINIA
PERMIT NO. 1225
CASH RESOURCE TRUST
---------------------------------------------------------------------
SEMI-ANNUAL REPORT
---------------------------------------------------------------------
January 31, 1997
[MENTOR INVESTMENT GROUP LOGO]
<PAGE>
CASH RESOURCE TRUST BULK RATE
901 East Byrd Street U.S. POSTAGE
Richmond, VA 23219 PAID
(800) 382-0016 RICHMOND, VIRGINIA
PERMIT NO. 1225
[MENTOR INVESTMENT GROUP LOGO]
CASH RESOURCE TRUST
---------------------------------------------------------------------
SEMI-ANNUAL REPORT
---------------------------------------------------------------------
January 31, 1997
[EVEREN SECURITIES LOGO]
