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.
CASH RESOURCE TRUST
901 East Byrd Street
Richmond, VA 23219
(800) 382-0016
CASH RESOURCE TRUST
----------------------
ANNUAL REPORT
----------------------
July 31, 1997
[LOGO]
<PAGE>
CASH RESOURCE TRUST
ANNUAL REPORT
JULY 31, 1997
- --------------------------------------------------------------------------------
MESSAGE FROM THE CHAIRMAN AND PRESIDENT
It is our privilege to send you the Cash Resource Trust Annual Report for the
period ended July 31, 1997.* The Cash Resource Trust ("CRT") is part of a
diversified family of funds offered by Mentor Investment Group, LLC,** an
investment advisory firm with more than $11 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 ("the Funds") are invested to seek as
high a rate of current income -- or, in the case of the Cash Resource tax-exempt
money market funds, as high a rate of current income exempt from federal income
tax and/or state income tax -- as the investment advisor believes to be
consistent with preservation of capital and maintenance of 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. 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 the Funds
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 PROSPECTUSES FOR THE CASH RESOURCE TRUST, PLEASE CALL
US, (800)382-0016, OR CONTACT YOUR CONSULTANT. A PROSPECTUS CONTAINS COMPLETE
INFORMATION ABOUT FEES, SALES CHARGES, AND EXPENSES. PLEASE READ IT CAREFULLY
BEFORE INVESTING OR SENDING MONEY.
**MENTOR INVESTMENT ADVISORS, LLC/DBA MENTOR INVESTMENT GROUP, LLC
1
<PAGE>
CASH RESOURCE TRUST ANNUAL REPORT
MANAGERS' OVERVIEW
JULY 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.
For well over a year now, we have walked what could be described as almost the
perfect economic tightrope -- steady growth, low inflation and neutral Fed
policy. The only exception came in the first quarter of this year when a spurt
in activity sent GDP up a strong 4.9%, prompting the Fed to make a "pre-emptive
strike" against inflation by raising rates 0.25%. It was widely anticipated that
inflation would soon appear and that additional moves would be forthcoming.
That, however, has been the Fed's only move in the past 18 months.
As April progressed into May and then June, data became more benign. The GDP
slowed to the 3.6% area and inflation, as measured by the CPI and PPI, remained
almost nonexistent.+ This raised the possibility that the strong first quarter
may have resulted from the mild winter experienced by most of the country, and
that this strength was simply borrowed from the second quarter, resulting in
off-setting weakness. The mild numbers prompted the Fed, rather than to raise
rates further, to vote "no change" at both its May and July meetings. Bond
markets rallied and the yield curve became very flat, as is almost always the
case when there is little prospect of Fed action in the near future. The spread
between three-month and one-year bills dropped to 0.20%, the smallest we have
seen in quite a long time.
But it now appears that we may be poised to go full cycle. Beginning in late
July, data began to appear which
2
<PAGE>
CASH RESOURCE TRUST ANNUAL REPORT
MANAGERS' OVERVIEW (CONTINUED)
JULY 31, 1997
- --------------------------------------------------------------------------------
suggest another pickup in growth, perhaps to a more normal rate after the
above-trend first quarter and neutral second quarter. Retail sales, consumer
confidence, payroll gains and personal income were among the indicators that
were coming in above expectations.
The result was that the market closed the period on a weak note. This weakness
would have been greater except for the fact that inflation indications remain
good. It is our feeling, however, that if this emerging pattern of faster growth
is confirmed by additional data, speculation of an eventual Fed increase will
gradually creep back into the market and we will see further weakness. But no
matter the course of the market, we pledge continued emphasis on safety and
liquidity through high credit standards and conservative investment policies.++
/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 GROSS DOMESTIC PRODUCT (GDP) IS A MEASURE OF THE MARKET VALUE OF GOODS AND
SERVICES PRODUCED BY LABOR AND PROPERTY IN THE U.S. THE CONSUMER PRICE INDEX
(CPI) IS CALCULATED BY THE BUREAU OF LABOR STATISTICS BY ESTABLISHING THE PRICE
OF A FIXED BASKET OF GOODS AND SERVICES, WHICH ARE SELECTED BECAUSE OF THEIR
DIRECT IMPACT ON AVERAGE CITIZENS. INCREASES IN THE COSTS OF SUCH ITEMS INDICATE
A RISE IN THE INFLATION RATE. THE PRODUCER PRICE INDEX IS A MEASURE OF CHANGE IN
WHOLESALE PRICES (FORMERLY CALLED THE WHOLESALE PRICE INDEX), AS RELEASED
MONTHLY BY THE U.S. BUREAU OF LABOR STATISTICS.
++ WHILE THE MANAGERS SEEK TO INVEST THE FUNDS IN ACCORDANCE WITH THESE HIGH
STANDARDS, THERE IS NO GUARANTEE OF INVESTMENT SUCCESS. AN INVESTMENT IN THE
FUNDS IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE CAN BE
NO ASSURANCE THAT THE FUNDS WILL MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE.
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
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- ------------------------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 0.08%
Capital Equipment Receiving Trust, 5.60%, 10/15/97 $ 2,477 $ 2,477
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES 2,477
- ------------------------------------------------------------------------------------------------------------------
BANK NOTES 12.07%
Bank of America, 5.52%, 8/01/97 50,000 50,000
Bank of America, 5.97%, 3/20/98 30,000 29,993
Bank of America, 6.30%, 4/29/98 20,000 19,996
Greenwood Trust Company, 5.69%, 8/26/97 50,000 50,000
Harris Trust, 5.55%, 8/07/97 100,000 100,000
Mellon Bank, 5.60%, 10/06/97 30,000 30,000
Nations Bank, 5.66%, 9/03/97 50,000 50,000
Nations Bank, 5.63%, 9/19/97 25,000 25,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES 354,989
- ------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 7.65%
Bank of Montreal, 5.52%, 8/18/97 50,000 50,000
Mellon Bank, 5.86%, 11/10/97 50,000 50,000
Regions Bank, 5.50%, 8/04/97 25,000 25,000
Societe Generale, Inc., 5.92%, 9/17/97 80,000 80,031
Societe Generale, Inc., 6.00%, 3/23/98 20,000 19,997
- ------------------------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 225,028
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 60.94%
ASSET-BACKED SECURITIES 3.39%
Greenwich Funding Corporation, 5.55%, 8/15/97(a) 100,000 99,784
- ------------------------------------------------------------------------------------------------------------------
AUTO RENT & LEASE 0.73%
Vehicle Services of America Ltd., 5.62%, 8/05/97 21,500 21,487
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS 24.61%
ABN-Amro North America Finance, Inc.,
5.52%, 11/10/97 50,000 49,226
</TABLE>
4
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
COMMERCIAL PAPER (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
ABN-Amro North America Finance, Inc.,
5.50%, 12/08/97 $ 30,000 $ 29,409
Abbey National, North America, 5.28%, 8/21/97 50,000 49,853
Abbey National, North America, 5.52%, 10/08/97 50,000 49,479
Banc One, 5.50%, 8/08/97 50,000 49,947
Bank of Montreal, 5.50%, 8/27/97 50,000 49,802
Bank of New York, 5.50%, 9/02/97 50,000 49,756
Bankers Trust Company, 5.57%, 1/09/98-1/16/98 100,495 97,942
Credit Suisse, 5.50%, 11/20/97 15,000 14,746
CS First Boston, 5.54%, 10/09/97 50,000 49,469
CS First Boston, 5.68%, 10/16/97 35,000 34,580
First Union Bank, 5.58%, 8/20/97 50,000 49,853
Kredietbank N.A. Finance Corporation, 5.57%, 8/04/97 80,000 79,963
Mellon Financial Company, 5.59%, 8/04/97 20,000 19,991
JP Morgan, 5.50%, 8/18/97 50,000 49,870
- ------------------------------------------------------------------------------------------------------------------
Total Commercial Banks 723,886
- ------------------------------------------------------------------------------------------------------------------
COMPUTER AND OFFICE EQUIPMENT 2.37%
IBM Credit Corporation, 5.48%, 8/22/97 50,000 49,840
IBM Credit Corporation, 5.68%, 7/06/98 20,000 19,984
- ------------------------------------------------------------------------------------------------------------------
Total Computer and Office Equipment 69,824
- ------------------------------------------------------------------------------------------------------------------
ELECTRIC SERVICES 0.62%
Rincon Securities, Inc., 5.50%, 8/25/97 8,100 8,070
Rincon Securities, Inc., 5.52%, 10/27/97 10,250 10,113
- ------------------------------------------------------------------------------------------------------------------
Total Electric Services 18,183
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES 6.10%
American Express, 5.54%, 8/04/97 50,000 49,977
American Express, 5.50%, 8/08/97 50,000 49,946
Glencore Finance Ltd., 5.45%, 8/29/97 30,000 29,873
</TABLE>
5
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
COMMERCIAL PAPER (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
Glencore Finance Ltd., 5.51%, 9/19/97 $ 50,000 $ 49,625
- ------------------------------------------------------------------------------------------------------------------
Total Financial Services 179,421
- ------------------------------------------------------------------------------------------------------------------
HEALTH CARE 1.24%
Carolina Medi-Plan, Inc., 5.61%, 6/01/22 (b) 30,000 30,000
Tax Adjustable DMD Health Care, 5.70%, 11/15/13 (b) 6,550 6,550
- ------------------------------------------------------------------------------------------------------------------
Total Health Care 36,550
- ------------------------------------------------------------------------------------------------------------------
MOTOR VEHICLES AND CAR BODIES 1.68%
Ford Motor Credit, 5.57%, 10/06/97 50,000 49,489
- ------------------------------------------------------------------------------------------------------------------
RENTAL & LEASING 3.38%
General Electric Capital Corporation, 5.49%, 8/18/97 50,000 49,870
General Electric Capital Corporation, 5.38%, 9/25/97 50,000 49,589
- ------------------------------------------------------------------------------------------------------------------
Total Rental & Leasing 99,459
- ------------------------------------------------------------------------------------------------------------------
SECURITY BROKERS & DEALERS 16.82%
Bear Stearns Companies, Inc., 5.70%, 11/12/97 100,000 98,369
Goldman Sachs Group, 5.57%, 9/12/97 25,000 24,838
Goldman Sachs Group, 5.62%, 9/12/97 75,000 74,508
International Nederlanden, 5.51%, 8/11/97-11/12/97 77,900 77,383
International Nederlanden, 5.58%, 8/19/97 22,100 22,038
Merrill Lynch & Company, Inc., 5.57%,
9/30/97-4/14/98 100,000 97,556
Smith Barney, 5.55%, 8/01/97-8/18/97 100,000 99,869
- ------------------------------------------------------------------------------------------------------------------
Total Security Brokers & Dealers 494,561
- ------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 1,792,644
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
CORPORATE OBLIGATIONS 0.47%
Evans Street Properties, 5.57%, 1/01/08 (b) $ 3,700 $ 3,700
Walker & Associates, 5.57%, 7/01/11 (b) 10,000 10,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS 13,700
- ------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 4.25%
Federal Home Loan Bank,
5.45%, 12/10/97 (b) 100,000 99,986
Student Loan Marketing Association,
5.43%-5.46%, 11/24/97-2/22/99 (b) 25,000 24,999
- ------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 124,985
- ------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 14.21%
Goldman, Sachs & Company
Dated 7/31/97, 5.82%, due 8/01/97, collateralized by various
U.S. Government Agency Securities with total original face
value of $489,310, 8/01/98-7/01/27,
5.50%-9.75%; market value $324,350 317,990 317,990
Lehman Brothers, Inc.
Dated 7/31/97, 5.81%, due 8/01/97, collateralized by
$45,809 Federal Home Loan Mortgage Corporation,
6.50%-7.50%, 11/01/25-6/01/27; $55,324
Federal National Mortgage Association
7.50%-9.00%, 1/01/08-6/01/27;
market value $102,773 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 417,990
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $2,931,813) (C) 99.67% 2,931,813
- ------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.33% 9,792
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $2,941,605
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
7
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- ---------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 53.93%
Federal Home Loan Bank
5.25%-5.46%, 8/21/97-5/28/98 $ 178,550 $ 177,445
5.45%-5.46%, 12/10/97-5/28/97 (b) 200,000 199,841
Federal Home Loan Mortgage Corporation
5.43%-5.50%, 8/04/97-9/26/97 472,109 469,527
Federal National Mortgage Association
5.30%-5.71%, 9/08/97-5/22/98 392,285 390,256
5.54%-5.62%, 1/15/98-5/21/98 (b) 165,000 164,947
Student Loan Marketing Association
5.23%-5.47%, 10/14/97-2/08/99 (b) 172,000 171,992
- ---------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 1,574,008
- ---------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 46.18%
Dean Witter
Dated 7/31/97, 5.82%, due 8/01/97,
collateralized by various Government
National Mortgage Association Securities with total original
face value of $228,439, 5.00%-10.50%,
1/01/00-7/20/27; market value $145,212 140,000 140,000
First Boston
Dated 7/31/97, 5.81%, due 8/01/97,
collateralized by $102,065 Federal Home Loan
Mortgage Corporation, 7.00%, 7/01/27; market
value $102,002 100,000 100,000
First Boston (d)
Dated 7/21/97, 5.51%, due 8/21/97,
collateralized by $257,171 Federal Home Loan
Mortgage Corporation, 7.00%, 11/01/26;
market value $255,001 250,000 250,000
</TABLE>
8
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- ---------------------------------------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
First Union Corporation
Dated 7/31/97, 5.82%, due 8/01/97,
collateralized by $3,816 U.S. Treasury Note, 6.13%,
3/31/98; $39,547 Federal Home Loan Mortgage
Corporation, 6.50%-7.00%, 12/1/09-1/01/27;
$59,740 Federal National Mortgage Association,
5.50%-7.00%, 1/1/00-12/01/09;
market value $102,082 $ 100,000 $ 100,000
Goldman, Sachs & Company
Dated 7/31/97, 5.82%, due 8/01/97, collateralized by various
U.S. Government Agency Securities with total original face
value $1,583,855, 9/29/99-6/01/27, 5.50%-16.25%; market value
$487,616 478,054 478,054
Lehman Brothers, Inc.
Dated 7/31/97, 5.81%, due 8/01/97,
collateralized by $18,776 Federal Home
Loan Mortgage Corporation, 7.50%,
7/01/27; $121,227 Federal National
Mortgage Association, 7.00%-9.50%,
5/01/12-7/01/27; market value $143,615 140,000 140,000
Merrill Lynch & Company, Inc.
Dated 7/31/97, 5.82%, due 8/01/97,
collateralized by $144,016 Government
National Mortgage Association, 7.00%,
11/15/26; market value $142,800 140,000 140,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 1,348,054
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $2,922,062) (c) 100.11% 2,922,062
- ---------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES (0.11%) (3,351)
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $2,918,711
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
9
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- -------------------------------------------------------------------------------------------------------
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) 55.03%
ALABAMA 2.74%
Montgomery Baptist Medical Center (VHA
Alabama, Inc.) Series B, 3.60%, 12/01/30 $ 5,400 $ 5,400
University of Alabama Board of Trustees
Hospital Revenue, 3.65%, 10/01/07 3,600 3,600
University of Alabama Board of Trustees Hospital
Revenue Series 1993B, 3.70%, 10/01/13 11,400 11,400
- -------------------------------------------------------------------------------------------------------
20,400
- -------------------------------------------------------------------------------------------------------
ARIZONA 3.46%
Apache County IDA Tucson Electric Power
Company Project Series A, 3.65%, 6/15/20 10,000 10,000
Arizona Health Facility Authority Pooled
Loan Program, 3.65%, 10/01/15 5,000 5,000
Pima Arizona IDA (Tucson Retirement Center),
3.60%, 1/01/09 8,300 8,300
Pinal County Arizona IDA (Newmont),
3.70%, 12/01/09 2,400 2,400
- -------------------------------------------------------------------------------------------------------
25,700
- -------------------------------------------------------------------------------------------------------
CALIFORNIA 0.13%
Chula Vista IDRB San Diego Gas &
Electric, 3.60%, 12/01/21 1,000 1,000
- -------------------------------------------------------------------------------------------------------
COLORADO 0.75%
Denver City and County MFHB Seasons
Apartments Project, 3.70%, 10/01/06 5,600 5,600
- -------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA 1.07%
District of Columbia Health Facility (Army
Distaff Foundation), 3.70%, 2/01/21 7,965 7,965
- -------------------------------------------------------------------------------------------------------
GEORGIA 1.09%
Burke County PCRB (Oglethorpe Power
Corporation) Series A, 3.60%, 1/01/19 5,000 5,000
Burke County PCRB (Oglethorpe Power
Corporation) Series A, 3.60%, 1/01/16 3,100 3,100
- -------------------------------------------------------------------------------------------------------
8,100
- -------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) (CONTINUED)
IOWA 0.67%
Iowa Student Loan Revenue Bond Series B,
3.70%, 12/01/13 $ 5,000 $ 5,000
- -------------------------------------------------------------------------------------------------------
IDAHO 0.85%
Nez Perce County PCRB, (Potlatch)
Series 1984, 3.60%, 12/01/14 6,300 6,300
- -------------------------------------------------------------------------------------------------------
ILLINOIS 4.30%
Chicago (O'Hare International Airport)
Series 1988B, 3.70%, 1/01/18 7,700 7,700
Chicago (O'Hare International Airport)
Series 1994B, 3.75%, 1/01/18 2,000 2,000
Illinois DFA (Grayhill, Inc. Project)
IDRB, 3.80%, 2/01/05 2,800 2,800
Illinois DFA (Flinn Scientific Project), 3.80%, 10/01/15 4,760 4,760
Illinois Student Assistance Loan Revenue Bond Series A,
3.75%, 3/01/06 14,700 14,700
- -------------------------------------------------------------------------------------------------------
31,960
- -------------------------------------------------------------------------------------------------------
INDIANA 2.53%
Fort Wayne Hospital Authority (Parkview Memorial Hospital)
Series B, 3.65%, 1/01/16 3,600 3,600
Fort Wayne Hospital Authority (Parkview Memorial Hospital)
Series D, 3.65%, 1/01/16 5,150 5,150
Indiana Health Facility Finance Authority
(Deaconess Hospital), 3.65%, 1/01/22 10,100 10,100
- -------------------------------------------------------------------------------------------------------
18,850
- -------------------------------------------------------------------------------------------------------
KENTUCKY 0.33%
Kentucky Higher Education Student Loan
Series 1996 A, 3.70%, 6/01/26 2,500 2,500
- -------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) (CONTINUED)
LOUISIANA 4.68%
Louisiana PFA Hospital Revenue (Willis- Knighton
Medical Project), 3.60%, 9/01/23 $13,400 $ 13,400
New Orleans Aviation Revenue Refund
Series A, 3.55%, 8/05/15 9,900 9,900
St. James Parish PCRB (Occidental Petroleum),
3.65%, 10/01/18 11,500 11,500
- -------------------------------------------------------------------------------------------------------
34,800
- -------------------------------------------------------------------------------------------------------
MASSACHUSETTS 0.62%
Massachusetts State Independent Financial Agency
(Whitehead Institutional Biomedical Research),
3.55%, 7/01/26 4,600 4,600
- -------------------------------------------------------------------------------------------------------
MARYLAND 1.74%
Anne Arundel County (Oakland Hills Project),
3.70%, 5/15/15 2,052 2,052
Howard County Revenue Bond (Harmony Hall, Inc. Project),
3.70%, 10/01/10 2,868 2,868
Maryland State Health & Higher Education,
Pooled Loan Program Series B, 3.60%, 4/01/35 8,000 8,000
- -------------------------------------------------------------------------------------------------------
12,920
- -------------------------------------------------------------------------------------------------------
NORTH CAROLINA 2.56%
Durham Water & Sewer Utility System
Revenue, 3.60%, 12/01/15 4,800 4,800
Lincoln County Industrial Facility PCRB (Barre-
National, Inc.) Series 1994, 3.85%, 8/01/09 5,500 5,500
North Carolina Education Facilities (Duke
University Program) Series A, 3.55%, 12/01/17 3,000 3,000
North Carolina Education Facilities (Bowman
Grey School Medical), 3.65%, 9/01/20 4,200 4,200
North Carolina Medical Care, (Duke University
Hospital) Series A, 3.55%, 6/01/23 1,500 1,500
- -------------------------------------------------------------------------------------------------------
19,000
- -------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(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 1.71%
New Hampshire Health and Higher Education
(VHA New England) Series B, D, & G,
3.65%, 12/01/25 $12,725 $ 12,725
- -------------------------------------------------------------------------------------------------------
NEW MEXICO 0.28%
Albuquerque Gross Receipts Lodgers Tax
Series A, 3.65%, 7/01/22 2,050 2,050
- -------------------------------------------------------------------------------------------------------
NEW YORK 0.67%
New York City Health & Hospital, Health
System Bonds Series 1997 A, 3.50%, 2/15/26 5,000 5,000
- -------------------------------------------------------------------------------------------------------
OHIO 0.81%
Ohio State Air Quality Authority (IMG Funding
Limited Partnership) Series A, 3.65%, 4/01/28 6,000 6,000
- -------------------------------------------------------------------------------------------------------
PENNSYLVANIA 1.33%
Sayre Health Care Facility (VHA Capital
Finance Project) Series I, 3.60%, 12/01/20 9,900 9,900
- -------------------------------------------------------------------------------------------------------
SOUTH CAROLINA 2.82%
Piedmont Municipal Power Agency Electric Revenue Series C,
3.60%, 1/01/22 4,000 4,000
South Carolina Jobs (Presbyterian Home of South Carolina
Foothills) Series 1996, 3.65%, 12/01/21 9,250 9,250
South Carolina Jobs EDA Hospital Revenue (Tuomay Regional
Medical Center) Series B, 3.65%, 11/01/25 7,700 7,700
- -------------------------------------------------------------------------------------------------------
20,950
- -------------------------------------------------------------------------------------------------------
TENNESSEE 1.70%
Metropolitan Government of Nashville and Davidson County
Health
and Education Facility, (D. Lipscomb
University), 3.70%, 5/01/20 4,615 4,615
State of Tennessee GO BANS Series 1997A,
3.60%, 7/02/11 8,000 8,000
- -------------------------------------------------------------------------------------------------------
12,615
- -------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) (CONTINUED)
TEXAS 9.33%
Brazos River Harbor Navigation District (Dow Chemical
Company Project) Series 1996, 3.95%,
4/01/26 $ 5,500 $ 5,500
Calhoun County IDRB (Formosa Plastics Corporation
Project), 3.70%, 11/01/15 28,500 28,500
Gulf Coast Waste Disposal (Amoco Oil Company),
3.80%, 5/01/24 7,400 7,400
Matagorda County Navigation District No. 1
Revenue (Houston Light & Power Company),
3.75%, 11/01/28 12,700 12,700
Red River Authority Texas PCRB (Southwestern
Public Service), 3.65%, 7/01/16 5,000 5,000
Texas HFA (North Texas Pooled Health)
Series 1985B, 3.70%, 8/01/25 10,300 10,300
- -------------------------------------------------------------------------------------------------------
69,400
- -------------------------------------------------------------------------------------------------------
VIRGINIA 6.85%
Arlington County (Ballston Public
Parking), 3.70%, 8/01/17 3,450 3,450
Botetourt County IDRB (Emkay Holdings LLC
Project), 3.65%, 10/01/05 2,700 2,700
Capital Regional Airport Commission (Richmond
International Airport Project) Series 1995C,
3.65%, 7/01/23 4,000 4,000
Hampton Roads Regional Jail Authority Regional Jail
Facility Series 1996B, 3.60%, 7/01/16 6,500 6,500
Hanover County IDRB (Carter Machinery),
3.70%, 11/01/98 500 500
Louisa County IDRB Pooled Financing Virginia
Municipal Bond Fund, 3.70%, 1/01/20 7,500 7,500
Lynchburg IDA (VHA Mid-Atlantic) Series G,
3.65%, 12/01/25 500 500
Newport News MFHB (Newport- Oxford Project), 3.75%,
11/01/06 9,700 9,700
Peninsula Port Authority Port Facility (Shell), 3.75%,
12/01/05 5,500 5,500
Richmond Public Utilities, Revenue Notes Series A,
3.75%, 6/30/01 5,000 5,000
</TABLE>
14
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(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)
Spotsylvania City IDA Residential Care Facilities
(Chancellor Village Project), 3.70%, 10/01/20 $ 4,684 $ 4,684
Tazewell County IDRB (Coal Fillers, Inc.),
3.85%, 1/01/03 900 900
- -------------------------------------------------------------------------------------------------------
50,934
- -------------------------------------------------------------------------------------------------------
WASHINGTON 0.74%
Port of Seattle Washington Sub-Lien
Revenue Bonds Series 1997, 3.65%, 9/01/22 5,500 5,500
- -------------------------------------------------------------------------------------------------------
WEST VIRGINIA 0.73%
West Virginia State Hospital (VHA Midatlantic)
Series G, 3.70%, 12/01/25 5,400 5,400
- -------------------------------------------------------------------------------------------------------
WYOMING 0.54%
Sweetwater County PCRB (Pacific Corporation
Project) Series A, 3.65%, 7/01/15 4,000 4,000
- -------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 409,169
- -------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES 42.88%
CALIFORNIA 2.98%
Butte County Office of Education TRANS,
4.50%, 7/31/98 10,000 10,060
Los Angeles County TRANS Series A,
4.50%, 6/30/98 12,000 12,069
- -------------------------------------------------------------------------------------------------------
22,129
- -------------------------------------------------------------------------------------------------------
FLORIDA 0.94%
Putnam County Development Authority
(Seminole Electric) Series 1984, 3.60%, 12/15/97 7,000 7,000
- -------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
ILLINOIS 2.56%
Chicago Illinois GO Tender Note,
3.55%, 10/31/97 $19,000 $ 19,000
- -------------------------------------------------------------------------------------------------------
INDIANA 1.08%
Jasper County PCRB (Northern Indiana
Public Services) Series D, 3.70%, 8/11/97 8,000 8,000
- -------------------------------------------------------------------------------------------------------
KANSAS 0.13%
Burlington PCRB (Kansas City Power & Light)
Series 1987A, 3.65%, 8/11/97 1,000 1,000
- -------------------------------------------------------------------------------------------------------
KENTUCKY 1.06%
Pulaski County Solid Waste Disposal Project
(East Kentucky Power) Series B, 3.55%, 8/15/97 7,900 7,900
- -------------------------------------------------------------------------------------------------------
LOUISIANA 1.68%
Plaquemines Port Harbor and Terminal (Electro
Coal Transfer) Series C, 3.80%, 8/01/97 6,500 6,500
Parish of West Baton Rouge Industrial District No. 3 (Dow
Chemical) Series 1985, 3.75%,
10/22/97 6,000 6,000
- -------------------------------------------------------------------------------------------------------
12,500
- -------------------------------------------------------------------------------------------------------
MASSACHUSETTS 0.67%
Massachusetts Port Authority TECP
Series 1996, 3.80%, 10/10/97 5,000 5,000
- -------------------------------------------------------------------------------------------------------
MARYLAND 0.54%
Baltimore County Metropolitan District TECP
Series 1995, 3.50%, 8/06/97 4,000 4,000
- -------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
MICHIGAN 1.76%
Michigan Municipal Bond Authority
Series 1996D, 4.50%, 9/19/97 $ 3,000 $ 3,002
Michigan Municipal Bond Authority
Series 1997B, 4.50%, 7/02/98 10,000 10,062
- -------------------------------------------------------------------------------------------------------
13,064
- -------------------------------------------------------------------------------------------------------
NEW JERSEY 0.78%
Parsippany-Troy Hills Township
BANS, 4.25%, 10/31/97 5,770 5,778
- -------------------------------------------------------------------------------------------------------
NEW YORK 0.73%
Nassau County BANS Series A, 4.25%, 8/15/97 5,400 5,401
- -------------------------------------------------------------------------------------------------------
NORTH CAROLINA 2.21%
North Carolina Eastern Municipal Power Agency
Series B, 3.80%, 8/12/97 10,000 10,000
North Carolina Municipal Power Agency No. 1
(Catawba Project), 3.80%, 8/13/97 6,448 6,448
- -------------------------------------------------------------------------------------------------------
16,448
- -------------------------------------------------------------------------------------------------------
OHIO 0.57%
Ohio Air Quality Development (USX
Corporation Project) Series 1995, 3.45%, 8/05/97 4,230 4,230
- -------------------------------------------------------------------------------------------------------
OREGON 0.36%
Clackamas County Hospital Facility (Kaiser
Permanente), 3.55%, 10/01/97 2,700 2,700
- -------------------------------------------------------------------------------------------------------
PUERTO RICO 0.67%
Puerto Rico GDB TECP, 3.70%, 8/06/97 5,000 5,000
- -------------------------------------------------------------------------------------------------------
SOUTH CAROLINA 1.34%
York County PCRB (NC Electric Project)
Series 84N-3, 3.55%, 9/15/97 10,000 10,000
- -------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
TENNESSEE 0.40%
Tennessee HDA (Home Ownership
Project) Issue I, 3.75%, 2/19/98 $ 3,000 $ 3,000
- -------------------------------------------------------------------------------------------------------
TEXAS 11.26%
Brazes Harbor IDB (Dow Chemical Company
Project) Series 1996, 3.80%, 10/23/97 3,700 3,700
City of Houston TECP Series B, 3.80%, 8/01/97 7,000 7,000
Lower Colorado River Authority TECP
Series D, 3.60%, 8/05/97 8,000 8,000
Lower Colorado River Authority TECP
Series B, 3.65%, 10/07/97 8,000 8,000
Plano Texas Health Facilities (Children's &
Presbyterian), 3.75%, 10/21/97 7,000 7,000
San Antonio Electric & Gas Systems TECP
Series A, 3.75%, 8/11/97 6,300 6,300
San Antonio Electric & Gas Systems TECP
Series A, 3.80%, 9/10/97 4,600 4,600
San Antonio Electric & Gas Systems TECP
Series A, 3.75%, 9/18/97 10,000 10,000
State of Texas TRANS, 4.75%, 8/29/97 27,115 27,137
Texas A & M Permanent University Fund
Series B, 3.75%, 10/28/97 2,000 2,000
- -------------------------------------------------------------------------------------------------------
83,737
- -------------------------------------------------------------------------------------------------------
UTAH 2.15%
Intermountain Power Agency Power Supply
Revenue Bonds Series F, 3.80%, 6/15/98 5,000 5,000
Utah County Environmental Improvement (USX
Corporation) Refunding Series 1995, 3.45%,
8/05/97 6,000 6,000
State of Utah GO Highway TECP Series 1997B,
3.80%, 10/07/97 5,000 5,000
- -------------------------------------------------------------------------------------------------------
16,000
- -------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- -------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
VIRGINIA 6.11%
Chesterfield County IDA Series 1987B (VEPCO),
3.85%, 8/13/97 $ 1,000 $ 1,000
Chesterfield County IDA Series 1987B (VEPCO),
3.85%, 11/21/97 5,000 5,000
Fairfax County Series B, 6.10%, 4/01/98 700 715
Fairfax County (Inova Health Systems)
Series 1993B, 3.70%, 9/10/97 1,700 1,700
Falls Church IDRB (Kaiser Permanente
Medical Center), 3.80%, 11/01/97 500 500
Newport News GO Series E, 7.25%, 1/01/98 1,000 1,015
Richmond Redevelopment Housing Authority
Series 1997 A & B, 4.63%, 8/28/97 7,500 7,500
Virginia HDA Commonwealth Mortgage
Series C-C, 3.80%, 6/10/98 5,000 5,000
Virginia HDA Commonwealth Mortgage
Series H-H, 3.84%, 4/16/98 15,000 15,002
York County IDA PCRB (VEPCO),
3.75%, 8/14/97 3,000 3,000
York County IDA PCRB (VEPCO),
3.80%, 10/08/97 5,000 5,000
- -------------------------------------------------------------------------------------------------------
45,432
- -------------------------------------------------------------------------------------------------------
WISCONSIN 2.02%
City of Milwaukee, Short-Term School Order Notes
Series 1996B, 4.25%, 8/21/97 5,000 5,001
Milwaukee, RANS Series A, 4.25%, 2/19/98 10,000 10,034
- -------------------------------------------------------------------------------------------------------
15,035
- -------------------------------------------------------------------------------------------------------
WEST VIRGINIA 0.54%
West Virginia HDA Interim Financing Notes
Series 1997B, 3.80%, 10/31/97 2,995 2,995
West Virginia HDA GO Notes
Series 1997A, 3.90%, 6/18/98 1,000 1,000
- -------------------------------------------------------------------------------------------------------
3,995
- -------------------------------------------------------------------------------------------------------
WYOMING 0.34%
Lincoln City PCRB, (Pacific Corp
Project) Series 1991, 3.75%, 10/20/97 2,550 2,550
- -------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF VALUE
NET ASSETS SHARES (NOTE 2)
<S> <C>
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES $318,899
- -------------------------------------------------------------------------------------------------------
OTHER 1.63%
AIM-TFIC Institutional, 3.56%, 8/01/97 5,067 5,067
PNC Municash, 3.63%, 8/01/97 7,066 7,066
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER 12,133
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $740,201) (C) 99.54% 740,201
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.46% 3,413
- -------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $743,614
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
20
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- --------------------------------------------------------------------------------------------------------------
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) 44.33%
ABAG Finance Authority 1993 C.O.P.,
(Lucile Slater Packard Children's Hospital), 3.35%,
8/01/23 $ 3,300 $ 3,300
Anaheim C.O.P. 1993 Refunding Project,
3.35%, 8/01/19 3,800 3,800
CA HFA Revenue Bond (Adventist Health)
Series A, 3.30%, 8/01/21 3,500 3,500
CA PCRB (OMS Equity Stanislaus Project),
3.60%, 12/01/17 1,000 1,000
CA PCRB (Contra Costa Waste Service) Series A,
3.45%, 12/01/10 2,000 2,000
CA PCRB (Sanger Project) Series A,
3.40%, 9/01/20 3,000 3,000
CA PCRB Solid Waste Disposal (Western Waste)
Series A, 3.48%, 12/01/00 2,200 2,200
CA Statewide Community Development (Veriflo Corp.),
3.60%, 4/01/11 2,025 2,025
Chula Vista IDRB (San Diego Gas & Electric),
3.60%, 12/01/21 1,400 1,400
Corona MFHB (Country Hills Project) Series B,
3.30%, 2/01/20 3,000 3,000
Fremont MFHB (Creekside Village Apartments)
Series D, 3.35%, 9/01/07 3,000 3,000
Irvine Public Facilities Capital Improvement,
3.35%, 11/01/10 3,400 3,400
Los Angeles County Pension Obligation Series C,
3.35%, 6/30/07 3,900 3,900
Redlands C.O.P. (Sewer Facilities),
3.40%, 9/01/17 1,110 1,110
San Francisco City & County MFHB
(Rincon Center Project) Series B, 3.35%, 12/01/06 1,010 1,010
Southern California Public Power Authority Power Project Revenue
Bonds 1996 Series C, 3.35%, 7/01/17 2,000 2,000
- --------------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT SECURITIES 39,645
- --------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
SHARES OR
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------------------------
<S> <C>
OTHER TAX-EXEMPT SECURITIES 49.28%
Butte County Office of Education TRANS,
4.50%, 7/31/98 $ 2,000 $ 2,012
CA Department of Water TECP Series I,
3.55%, 9/30/97 2,000 2,000
CA PCRB (Dow Chemical) Series 1985,
3.65%, 8/19/97 2,500 2,500
CA PCRB (Pacific Gas & Electric)
Series 1996D, 3.75%, 8/01/97 3,000 3,000
CA PCRB (Pacific Gas & Electric)
Series 1996D, 3.60 %, 8/14/97 2,000 2,000
CA State GO TECP, 3.60%, 8/11/97 2,500 2,500
City of San Diego IDRB (San Diego Gas & Electric)
Series 1995A, 3.65%, 8/01/97 2,000 2,000
Los Angeles County Metropolitan Transportation Sales Tax Revenue
Notes, 3.75%, 10/10/97 2,000 2,000
Los Angeles County Metropolitian Transportation Authority TECP
Series A, 3.45%, 8/07/97 4,000 4,000
Los Angeles County TRANS Series A, 4.50%, 6/30/98 3,000 3,017
Los Angeles USD TRANS Series B, 4.50%, 9/30/97 4,000 4,007
Puerto Rico GDB TECP, 3.70%, 8/06/97 3,000 3,000
Sacremento Municipal Utilities,
3.55%-3.60%, 8/07/97-9/19/97 5,000 5,000
San Mateo USD TRANS, 4.50%, 7/10/98 4,000 4,023
Ventura County TRANS 1997, 4.50%, 7/01/98 3,000 3,017
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 44,076
- --------------------------------------------------------------------------------------------------------------
OTHER 3.24%
California Money Fund, 3.25%, 8/01/97 2,896 2,896
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $86,617) (C) 96.85% 86,617
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 3.15% 2,815
- --------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $89,432
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
22
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
<S> <C>
- --------------------------------------------------------------------------------------------------------------
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) 66.27%
NY City GO Bonds 1995 Series B, B-5, 3.75%, 8/15/18 $ 200 $ 200
NY City GO Series B, B-5, 3.60%, 8/15/22 300 300
NY City Health & Hospital (Health Systems) Series A, 3.50%,
2/15/26 400 400
NY City Housing Development (East 17th Street Property) Series
1993A, 3.70%, 1/01/23 400 400
NY City Municipal Water Finance Authority Series G, 3.75%,
6/15/24 200 200
NY City Housing Development MFHB (Columbus Apartments) Series A,
3.45 %, 3/15/25 300 300
NY City Housing Development (Columbus Gardens Project) Series
1993A, 3.55%, 2/01/07 200 200
NY City Housing Development MFHB (Tribeca Towers) Series A,
3.55%, 12/15/24 300 300
NY City Cultural Resource Revenue (American Museum of Natural
History) Series B, 3.60%, 4/01/21 300 300
NY State Dormitory Authority (Metropolitan Museum
of Art) Series A, 3.50%, 7/01/15 300 300
NY State Energy PCRB (Niagara Mohawk Power), 3.75%, 12/01/23 400 400
NY State Energy Electric Facility (LILCO) Series B, 3.65%,
11/01/23 400 400
NY State Energy Research & Development PCRB,
(NY State Electric & Gas) Series C, 3.45%, 6/01/29 300 300
NY State Housing (Liberty View Apartments)
Series 1985A, 3.60%, 11/01/05 100 100
NY State Housing Finance Agency (Normandie Court I Project),
3.50%, 5/15/15 300 300
NY State (LGAC) Series 1994B, 3.50%, 4/01/23 400 400
NY State (LGAC) Series C, 3.55%, 4/01/25 400 400
NY State (LGAC) Series G, 3.65%, 4/01/25 300 300
NY State Medical Care (Pooled Equipment Loan Program II) Series
A, 3.65%, 11/01/03 300 300
NY State Medical Care (Pooled Equity Loan Program 1), 3.60%,
11/01/15 200 200
NY State Thruway Authority Bonds, 3.75%, 1/01/24 500 500
Niagara Falls Toll Revenue Series A, 3.60%, 10/01/19 300 300
</TABLE>
23
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
SHARES OR
PERCENT OF PRINCIPAL VALUE
NET ASSETS AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------------------------
<S> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (b) (CONTINUED)
Port Authority of NY and NJ (Versatile Structure Obligation)
Series 1996, 3.65%, 6/01/20 $ 400 $ 400
St. Lawrence County NY IDA (Reynolds Metals)
Series 1985, 3.75%, 12/01/07 200 200
Suffolk County Water Authority BANS, 3.65%, 2/08/01 300 300
Triborough Bridge and Tunnel Authority Special Obligation,
3.60%, 1/01/24 300 300
- --------------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 8,000
- --------------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES 24.89%
Nassau County BANS Series A, 4.25%, 8/15/97 300 300
NY Dormitory Authority (Sloan Kettering Cancer Center) Series
1989B, 3.55%, 10/16/97 500 500
NY Dormitory Authority (Sloan Kettering Cancer Center) Series
1989C, 3.75%, 8/01/97 300 300
NY State BANS TECP Series S, 3.75%, 8/14/97 300 300
NY State Environmental Solid Waste Disposal
(GE Project) Series 1992A, 3.65%, 8/22/97 300 300
NY City GO TECP Series J, J-2, 3.70%, 8/13/97 300 300
Sachem CSD (Holbrook) 1997-98 TANS, 4.25%, 6/25/98 300 301
Westchester County TANS, 3.49%, 12/11/97 300 300
Williamsville CSD GO Bond, 6.50%, 12/01/97 400 404
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 3,005
- --------------------------------------------------------------------------------------------------------------
OTHER 8.86%
PNC Municash, 3.34%, 8/01/97 1,069 1,069
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $12,074) (C) 100.02% 12,074
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES (0.02%) (3)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $12,071
- --------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
CASH RESOURCE TRUST
NOTES TO PORTFOLIOS OF INVESTMENTS
JULY 31, 1997
(IN THOUSANDS)
- --------------------------------------------------------------------------------
INVESTMENT ABBREVIATIONS:
BANS - Bond Anticipation Notes
C.O.P. - Certificate Of Participation
CA - California
CSD - Consolidated School District
DFA - Development Finance Authority
EDA - Environmental Development Authority
GDB - Government Development Bank
GO - General Obligation
HDA - Housing Development Authority
HFA - Housing Finance Authority
IDA - Industrial Development Authority
IDB - Industrial Development Bond
IDRB - Industrial Development Revenue Bond
LGAC - Local Government Assistance Corporation
MFHB - Multi-Family Housing Bond
NJ - New Jersey
NY - New York
PCRB - Pollution Control Revenue Bond
PFA - Public Finance Authority
RANS - Revenue Anticipation Notes
TANS - Tax Anticipation Notes
TECP - Tax-Exempt Commercial Paper
TRANS - Tax and Revenue Anticipation Notes
USD - Unified School District
NOTES TO PORTFOLIOS OF INVESTMENTS
Interest rates disclosed represent annualized yield to date of maturity, except
for floating rate securities described in (b).
(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 July
31, 1997.
(c) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are substantially the same.
(d) The repurchase agreement is deemed illiquid because it can not be resold
within seven business days from July 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1997
(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 $2,513,823 $1,574,008 $740,201 $ 86,617 $12,074
Repurchase agreements 417,990 1,348,054 - - -
- --------------------------------------------------------------------------------------------------------
Total investments 2,931,813 2,922,062 740,201 86,617 12,074
Receivables
Interest receivable 11,656 6,148 5,129 404 51
Shares of the portfolio sold 6,590 281 313 11 -
Investments sold - - - 2,701 -
Organizational cost (Note 2) 38 174 35 8 2
Other 106 - - - -
- --------------------------------------------------------------------------------------------------------
Total assets 2,950,203 2,928,665 745,678 89,741 12,127
- --------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Dividends 6,198 6,123 976 109 14
Shares of the portfolio redeemed 1,626 3,377 1,039 159 13
Accrued distribution fee
(Note 3) 10 37 - - -
Accrued expenses and other
liabilities 764 417 49 41 29
- --------------------------------------------------------------------------------------------------------
Total liabilities 8,598 9,954 2,064 309 56
- --------------------------------------------------------------------------------------------------------
NET ASSETS $2,941,605 $2,918,711 $743,614 $ 89,432 $12,071
- --------------------------------------------------------------------------------------------------------
Shares outstanding 2,941,635 2,918,704 743,617 89,432 12,071
Net asset value per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED JULY 31, 1997
(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 $120,023 $131,004 $22,237 $1,891 $177
- -----------------------------------------------------------------------------------------------------
EXPENSES
Distribution fee (Note 3) 8,221 9,126 2,039 181 25
Management fee (Note 3) 4,041 4,470 1,326 121 11
Transfer agent fee (Note 3) 4,509 4,126 407 43 -
Custodian and accounting fees (Note 3) 691 713 214 23 7
Shareholder reports 424 397 41 6 1
Registration fees 632 282 278 32 7
Professional fees 124 125 35 3 -
Organizational expenses 27 127 31 1 -
Directors' fees 14 15 4 - -
Other 42 43 11 1 -
- -----------------------------------------------------------------------------------------------------
Total expenses 18,725 19,424 4,386 411 51
- -----------------------------------------------------------------------------------------------------
Deduct
Waiver of management fee - - - - 6
Waiver of distribution fee - - - - 6
- -----------------------------------------------------------------------------------------------------
Net expenses 18,725 19,424 4,386 411 39
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 101,298 111,580 17,851 1,480 138
- -----------------------------------------------------------------------------------------------------
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on
investments sold (30) 60 - - -
- -----------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $101,268 $111,640 $17,851 $1,480 $138
- -----------------------------------------------------------------------------------------------------
</TABLE>
*For the period from December 9, 1996 (commencement of operations) to July 31,
1997.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Money Market
Fund
---------------------------
Year Year
Ended Ended
7/31/97 7/31/96
<S> <C>
- -------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
OPERATIONS
Net investment income $ 101,298 $ 25,677
Net realized gain (loss) on investments sold (30) -
- -------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 101,268 25,677
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (101,298) (25,677)
Net realized gain on investments - -
- -------------------------------------------------------------------------------------------------------------
Net decrease from distributions (101,298) (25,677)
- -------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (AT $1.00 PER SHARE)
Net proceeds from sale of shares 11,609,162 3,001,684
Reinvestment of distributions 96,439 25,161
Cost of shares redeemed (9,410,466) (2,803,002)
- -------------------------------------------------------------------------------------------------------------
Net change in net assets resulting from capital share transactions 2,295,135 223,843
- -------------------------------------------------------------------------------------------------------------
Net increase in net assets 2,295,105 223,843
NET ASSETS
Beginning of period 646,500 422,657
- -------------------------------------------------------------------------------------------------------------
End of period $ 2,941,605 $ 646,500
- -------------------------------------------------------------------------------------------------------------
</TABLE>
*For the period from December 9, 1996 (commencement of operations) to July 31,
1997.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
<TABLE>
<CAPTION>
California New York
Tax-Exempt Tax-Exempt
U.S. Government Tax-Exempt Money Money
Money Market Money Market Market Market
Fund Fund Fund Fund
--------------------------- ------------------------- ---------- ----------
Year Year Year Year Period Period
Ended Ended Ended Ended Ended Ended
7/31/97 7/31/96 7/31/97 7/31/96 7/31/97* 7/31/97*
<S> <C>
- ----------------------------------------------------------------------------------------
$ 111,580 $ 61,080 $ 17,851 $ 8,184 $ 1,480 $ 138
60 - - - - -
- ----------------------------------------------------------------------------------------
111,640 61,080 17,851 8,184 1,480 138
(111,580) (61,080) (17,851) (8,184) (1,480) (138)
- - - - - -
- ----------------------------------------------------------------------------------------
(111,580) (61,080) (17,851) (8,184) (1,480) (138)
- ----------------------------------------------------------------------------------------
11,304,514 5,769,658 2,957,235 1,194,000 336,910 40,518
108,221 60,634 17,229 8,146 1,372 123
(9,896,481) (5,644,585) (2,521,741) (1,178,150) (248,850) (28,570)
- ----------------------------------------------------------------------------------------
1,516,254 185,707 452,723 23,996 89,432 12,071
- ----------------------------------------------------------------------------------------
1,516,314 185,707 452,723 23,996 89,432 12,071
1,402,397 1,216,690 290,891 266,895 - -
- ----------------------------------------------------------------------------------------
$ 2,918,711 $ 1,402,397 $ 743,614 $ 290,891 $ 89,432 $ 12,071
- ----------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market Fund
------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
7/31/97 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 0.047** 0.050 0.050** 0.020
DISTRIBUTIONS
Net investment income (0.047) (0.050) (0.050)** (0.020)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Total Return 4.77% 4.91% 4.97% 1.83%(b)
- ----------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $2,941,605 $646,500 $422,657 $ 192,260
Ratio of expenses to average net assets 0.86% 0.82% 0.82% 0.89%(a)
Ratio of expenses to average net assets excluding
waivers 0.86% 0.82% 0.82% 0.93%(a)
Ratio of net investment income to average net
assets 4.67% 4.77% 4.96% 2.96%(a)
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
(b) Total Return for periods less than one year are not 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.
30
<PAGE>
U.S. Government
Money Market Fund
----------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
7/31/97 7/31/96 7/31/95 7/31/94*
- -------------------------------------------------------------------------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
0.046** 0.050 0.050** 0.020
(0.046)** (0.050) (0.050) (0.020)
- -------------------------------------------------------------------------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
- -------------------------------------------------------------------------
4.72% 4.74% 4.82% 1.82%(b)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
$2,918,711 $1,402,397 $1,216,690 $ 907,819
0.81% 0.93% 0.88% 0.80%(a)
0.81% 0.93% 0.88% 0.83%(a)
4.63% 4.63% 4.75% 2.91%(a)
- -------------------------------------------------------------------------
31
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Tax-Exempt
Money Market Fund
----------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
7/31/97 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 0.029 0.030 0.030** 0.010
DISTRIBUTIONS
Net investment income (0.029) (0.030) (0.030) (0.010)
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- --------------------------------------------------------------------------------------------------------------
Total Return 2.91% 2.90% 3.05% 1.16%(b)
- --------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $743,614 $290,891 $266,895 $ 195,702
Ratio of expenses to average net assets 0.71% 0.76% 0.72% 0.65%(a)
Ratio of expenses to average net assets excluding
waivers 0.71% 0.76% 0.74% 0.74%(a)
Ratio of net investment income to average net
assets 2.88% 2.85% 3.01% 1.87%(a)
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
(b) Total Return for periods less than one year are not 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 July
31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
California Tax-Exempt New York Tax-Exempt
Money Market Fund Money Market Fund
--------------------- -------------------
Period Ended Period Ended
7/31/97*** 7/31/97***
- ------------------------------------------------------------------
$ 1.000 $ 1.000
0.017 0.018
(0.017) (0.018)
- ------------------------------------------------------------------
$ 1.000 $ 1.000
- ------------------------------------------------------------------
1.76%(b) 1.77%(b)
- ------------------------------------------------------------------
- ------------------------------------------------------------------
$89,432 $ 12,071
0.75%(a) 0.80%(a)
0.75%(a) 1.04%(a)
2.70%(a) 2.77%(a)
- ------------------------------------------------------------------
33
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1997
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 July 31, 1997 as follows:
Cash Resource Trust Money Market Fund ("Money Market Fund")
Cash Resource Trust U.S. Government Money Market Fund ("U.S. Government
Fund")
Cash Resource Trust Tax-Exempt Money Market Fund ("Tax-Exempt Fund")
Cash Resource Trust California Tax-Exempt Money Market Fund ("California
Tax-Exempt Fund")
Cash Resource Trust 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.
34
<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
Fund specific expenses are charged directly 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 twice each day, as of
12:00 noon and as of the close of regular trading on the New York Stock
Exchange. 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.
35
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
G. Organizational Cost
Costs incurred by the Trust in connection with its 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
Mentor Investment Advisors, LLC ("Mentor Advisors") the Funds' investment
advisor provides investment advisory services to each of the Funds. Mentor
Advisors is a wholly-owned subsidiary of Mentor Investment Group, LLC ("Mentor")
which is in turn a subsidiary of Wheat First Butcher Singer, Inc., ("Wheat").
EVEREN Capital Corporation has a 20% ownership in Mentor.
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.
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 July 31, 1997, Mentor Advisors
earned the following advisory fees:
Adviser Adviser Fee
Fee Voluntarily
Earned Waived
- -------------------------------------------------------
Money Market Fund $4,040,769 $ -
U.S. Government Fund 4,469,902 -
Tax-Exempt Fund 1,325,585 -
California Tax-Exempt Fund 120,606 -
New York Tax-Exempt Fund 10,938 6,150
- -------------------------------------------------------
In addition, the Funds provide direct reimbursement to Mentor for certain
accounting, legal and compliance administration, investor relations and
operations related costs not covered under the Investment Management Agreement.
For the period ended July 31, 1997, Money Market Fund, U.S. Government Fund,
Tax-Exempt Fund, California Tax-Exempt Fund and New York Tax-Exempt Fund paid
$166,495, $216,922, $50,912,
36
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
$3,114 and $312, respectively to Mentor for these direct reimbursements.
DISTRIBUTION AGREEMENT
Under a Distribution Agreement, Mentor Distributors, LLC ("Mentor Distributors")
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 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 Tax-Exempt Fund and California Tax-Exempt
Fund (the plan provides for payments by the New York Tax-Exempt Fund at a rate
of up to 0.50%; the Trustees have currently limited payments by this Fund to
0.38% of the Fund's average daily net assets).
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 (from any amounts
received by it under the Plan or from its other resources) 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 (0.38% in the case of each New Tax-Exempt Fund and 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 July 31, 1997, Wheat earned
fees of $2,251,535, $3,407,010, $308,427, $16,693 and $454 respectively from
Money Market Fund, U.S. Government Fund, Tax-Exempt Fund, California Tax-Exempt
Fund and New York Tax-Exempt Fund. IFTC also in turn compensates EVEREN Clearing
Corp. ("EVEREN") for transfer related services.
37
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
For the period ending July 31, 1997, EVEREN earned fees of $2,257,900, $719,160,
$99,017 and $25,994 respectively from Money Market Fund, U.S. Government Fund,
Tax-Exempt Fund and California Tax-Exempt Fund.
SUBSEQUENT EVENT
On August 20, 1997, Wheat announced that a definitive agreement was signed in
which Wheat will be acquired by a subsidiary of First Union Corp., in a
transaction expected to be consummated in December 1997. Consummation of the
acquisition, which is subject to a number of conditions, including regulatory
approvals, will result in the termination of the investment advisory agreements
between the CRT Funds and Mentor Advisors. The Trustees of CRT will meet to
consider new advisory agreements with Mentor Advisors that are substantially the
same as the current advisory agreements; will be effective upon consummation of
the acquisition; and subject to fund shareholder approval.
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, respectively, 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
letter of credit or other guarantees of banks or other financial institutions.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX STATUS--FISCAL 1997 (UNAUDITED)
During the period ended July 31, 1997, the Funds paid the following tax-exempt
distributions:
Tax-Exempt
Income Dividend
- --------------------------------------------------------------------------------
Tax-Exempt Fund $ 17,850,831
California Tax-Exempt Fund 1,480,310
New York Tax-Exempt Fund 137,535
38
<PAGE>
CASH RESOURCE TRUST
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
THE TRUSTEES
CASH RESOURCE TRUST
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments as of July 31, 1997 of the Cash Resource Trust
(CRT) Money Market Fund, CRT U.S. Government Money Market Fund, CRT Tax-Exempt
Money Market Fund, CRT California Tax-Exempt Money Market Fund and CRT New York
Tax-Exempt Money Market Fund, (portfolios of Cash Resource Trust), and the
related statements of operations for the periods presented on page 27, the
statements of changes in net assets for the periods presented on pages 28 and 29
and the financial highlights for the periods presented on pages 30, 31, 32 and
33. 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 includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of July 31, 1997 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
CRT Money Market Fund, CRT U.S. Government Money Market Fund, CRT Tax-Exempt
Money Market Fund, CRT California Tax-Exempt Money Market Fund and CRT New York
Tax-Exempt Money Market Fund as of July 31, 1997, the results of their
operations, the changes in their net assets, and the financial highlights for
each of the years or periods indicated in the first paragraph above, in
conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
Boston, Massachusetts
September 5, 1997
39
