Cash Resource Trust
Semi-Annual Report
January 31, 1998
- --------------------------------------------------------------------------------
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, 1998.* 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 $12 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 Semi-Annual Report
Managers' Overview
January 31, 1998
- --------------------------------------------------------------------------------
The five portfolios of the Cash Resource Trust (CRT), managed by Mentor
Investment Group, are invested in accordance with conservative standards that
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 the six months ended January 31, 1998, the U.S. economy followed a pattern
which has become familiar over the past two years. That is to say, activity was
just strong enough to keep us moving ahead, but not so strong as to raise the
risk of inflation and cause the Federal Reserve to take action.
In December and January, however, events unfolded which have given rise to
caution regarding the months ahead. Prompted by currency problems in Hong Kong,
an economic crisis developed and spread throughout most of the Asian area.
Highlights included an IMF rescue package for South Korea which barely averted
a Korean debt default, similar aid for Indonesia, failure of a number of major
financial institutions, and unprecedented moves by the Japanese Government to
bolster its banking system. Economies throughout the region appeared to be
slowing. The concern is that this crisis will weaken demand for U.S. products
in those regions, while making foreign goods cheaper in this country due to
rising exchange rates. Both factors would work to weaken U.S. production and
slow U.S. growth.
2
<PAGE>
Cash Resource Trust Semi-Annual Report
Managers' Overview (continued)
January 31, 1998
- --------------------------------------------------------------------------------
The initial effect of the Asian crisis on our money markets was a decline in
interest rates. It was brought on both by overseas funds flowing to this
country in search of a safer haven, and growing concern over slower growth in
1998, which would make it unlikely that the Fed will have to raise rates. While
it is too early to tell the extent to which we will be affected, early 1998
data suggest some slowing from the fourth-quarter pace. Fed Chairman,
Greenspan, has stated that the Fed is "on hold" until the situation is
clarified, and that we can expect "some effect" by spring.
With the U.S. economic expansion already growing old, and with the problems in
Asia likely to have at least "some effect" on our 1998 growth, we believe that
the greater challenge for the Federal Reserve in the new year will not be
inflation, but rather maintaining adequate growth. We see little prospect of a
Fed increase in rates except perhaps late in the year. Conversely, we could see
a reduction if sufficient economic weakness develops. Therefore, we are
managing the portfolios to an average maturity of 55-60 days the outer end of
our normal range of 30-60 days. We intend to maintain that position at least
through the early months of 1998. As always, 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 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, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset-Backed Securities 3.56%
Asset-Backed Securities Investment $ 50,000 $ 50,000
Trust Series 1997, 5.59%, 10/15/98 (a)(b)
Triangle Funding Ltd., 5.59%, 11/15/98 (b)(e) 60,000 60,000
- ----------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 110,000
- ----------------------------------------------------------------------------------------------------------
Bank Notes 10.48%
Abbey National, North America, 5.88%, 12/22/98 24,000 24,063
Banc One Milwaukee, North America, 5.55%, 1/29/99 50,000 49,976
Bank of America, 5.97%, 3/20/98 30,000 29,999
Bank of America, 6.30%, 4/29/98 20,000 19,998
Fifth Third Bank, 5.51%, 3/20/98 50,000 50,001
First Tennessee Bank, North America, 5.53%, 2/06/98 50,000 50,000
Greenwood Trust Company, 5.76%, 2/27/98 50,000 50,000
Morgan Guaranty Trust, 5.71%, 1/08/99 50,000 49,982
- ----------------------------------------------------------------------------------------------------------
Total Bank Notes 324,019
- ----------------------------------------------------------------------------------------------------------
Commercial Paper 67.47%
Asset-Backed Securities 15.35%
Alpine Securitization Corporation, 5.50%, 2/17/98 (e) 50,000 49,885
Ciesco Limited Partnership, 5.55%, 3/06/98 50,000 49,753
Citibank Capital Markets Assets LLC, 5.75%, 3/23/98 (a) 50,000 49,609
Corporate Receivables Corporation, 5.53%, 3/23/98 (a) 44,000 43,790
Delaware Funding Corporation, 5.73%, 2/20/98 25,000 24,928
Greenwich Funding Corporation, 5.47%, 2/10/98 (e) 50,000 49,939
Monte Rosa Capital Corporation, 5.79%, 2/13/98 (a) 50,000 49,911
Repeat Offering Securitization Entity, Inc., 5.74%,
2/06/98 - 2/13/98 (a) 107,231 107,099
Special Purpose Accounts Receivable Cooperative
Corporation, 5.75%, 2/26/98 (a) 50,000 49,808
- ----------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 474,722
- ----------------------------------------------------------------------------------------------------------
Auto Rent & Lease 0.70%
Vehicle Services of America, Ltd., 5.63%, 2/03/98 21,500 21,497
- ----------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
Cash Resource Trust
Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial Paper (continued)
Commercial Banks 23.47%
Abbey National, North America, 5.55%, 2/25/98 $ 50,000 $ 49,823
Abbey National, North America, 5.57%, 4/27/98 50,000 49,350
Bank of America, 5.43%, 4/20/98 50,000 49,419
Bank of Montreal, 5.50%, 2/20/98 - 2/25/98 100,000 100,000
Bank of New York, 5.74%, 2/12/98 50,000 49,920
Bankers Trust Company, 5.71%, 6/05/98 10,000 9,805
Bankers Trust Company, 5.40%, 10/02/98 23,500 22,647
Bankers Trust Company, 5.65%, 1/07/99 50,000 49,978
Canadian Imperial Bank, 5.72%, 3/04/98 46,000 46,000
NationsBank Corporation, 5.56%, 2/13/98 25,000 24,957
NationsBank Corporation, 5.48%, 2/20/98 50,000 49,863
Regions Bank, 5.71%, 3/16/98 50,000 50,000
Societe Generale, Inc., 6.00%, 3/23/98 20,000 19,999
Societe Generale, Inc., 5.81%, 6/08/98 50,000 50,002
Societe Generale, Inc., 5.67%, 6/12/98 30,000 29,386
Svenska Handelsbanken, 5.54%, 2/17/98 25,000 24,942
Svenska Handelsbanken, 5.72%, 3/06/98 50,000 49,746
- --------------------------------------------------------------------------------------------------------
Total Commercial Banks 725,837
- --------------------------------------------------------------------------------------------------------
Computer and Office Equipment 0.65%
IBM Credit Corporation, 5.56%, 7/06/98 20,000 19,993
- --------------------------------------------------------------------------------------------------------
Electric Services 2.36%
National Rural Utilities, 5.68%, 4/28/98 50,000 49,329
Rincon Securities, Inc., 5.49%, 3/09/98 13,800 13,726
Rincon Securities, Inc., 5.51%, 3/19/98 10,000 9,931
- --------------------------------------------------------------------------------------------------------
Total Electric Services 72,986
- --------------------------------------------------------------------------------------------------------
Financial Services 1.61%
Associates Corporation, North America, 5.50%, 3/09/98 50,000 49,733
- --------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
Cash Resource Trust
Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial Paper (continued)
Food and Kindred Products 0.16%
Mississippi Business Financial Corporation
(Taxable Variable Rate Demand), 5.75%, 1/01/23 (b) $ 5,000 $ 5,000
- ---------------------------------------------------------------------------------------------------
Health Care 1.60%
Carolina Medi-Plan, Inc., 5.61%, 6/01/22 (b) 43,000 43,000
Tax Adjustable DMD Health Care, 5.65%,
11/15/13 (b) 6,350 6,350
- ---------------------------------------------------------------------------------------------------
Total Health Care 49,350
- ----------------------------------------------------------------------------------------------------
Motor Vehicles and Car Bodies 3.17%
Ford Motor Credit, 5.50%, 6/04/98 100,000 98,136
- ---------------------------------------------------------------------------------------------------
Rental & Leasing 1.56%
General Electric Capital Corporation, 5.60%, 9/04/98 50,000 48,336
- ---------------------------------------------------------------------------------------------------
Security Brokers & Dealers 16.84%
Bear Stearns Companies, Inc., 5.70%, 2/27/98 100,000 99,604
Credit Suisse First Boston, 5.43%, 4/22/98 50,000 49,404
International Nederlanden, 5.67%, 2/12/98 45,000 44,929
International Nederlanden, 5.60%, 2/18/98 50,000 49,876
International Nederlanden, 5.68%, 6/09/98 30,000 29,399
Merrill Lynch, 5.47%, 3/18/98 50,000 49,666
Merrill Lynch, 5.57%, 4/14/98 50,000 49,451
Morgan Stanley Dean Witter, 5.46%, 2/20/98 50,000 49,864
Salomon Smith Barney, 5.47%, 4/14/98 50,000 49,461
Salomon Smith Barney, 5.46%, 6/09/98 50,000 49,037
- ---------------------------------------------------------------------------------------------------
Total Security Brokers & Dealers 520,691
- ---------------------------------------------------------------------------------------------------
Total Commercial Paper 2,086,281
- ---------------------------------------------------------------------------------------------------
Corporate Obligations 0.44%
Evans Street Properties, 5.61%, 1/01/08 (b) 3,700 3,700
Walker & Associates, 5.61%, 7/01/11 (b) 10,000 10,000
- ---------------------------------------------------------------------------------------------------
Total Corporate Obligations 13,700
- ---------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Cash Resource Trust
Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Agencies 3.72%
Federal National Mortgage Association, 5.71%,
11/09/98 (b) $100,000 $ 99,978
Student Loan Marketing Association, 5.40%, 8/20/98 (b) 10,000 10,000
Student Loan Marketing Association, 5.41%, 2/22/99 (b) 5,000 5,000
- -------------------------------------------------------------------------------------------------------
Total U.S. Government Agencies 114,978
- -------------------------------------------------------------------------------------------------------
Repurchase Agreements 14.19%
Goldman, Sachs & Company
Dated 1/30/98, 5.62%, due 2/02/98,
collateralized by $319,497 Federal National
Mortgage Association, 6.50% - 8.50%,
11/01/10 - 11/01/25; market value $264,166 258,986 258,986
Lehman Brothers, Inc.
Dated 1/30/98, 5.62%, due 2/02/98, collateralized by
various U.S. Government Agency Securities with
total original face value of $168,110, 6.00%-8.63%,
5/26/00 - 9/26/19; market value $153,002 150,000 150,000
Dean Witter
Dated 1/30/98, 5.62%, due 2/02/98, collateralized by
various U.S. Government Agency Securities with total
original face value of $31,349, 5.00%-10.00%,
2/06/98 - 1/20/28; market value $30,664 30,000 30,000
- -------------------------------------------------------------------------------------------------------
Total Repurchase Agreements 438,986
- -------------------------------------------------------------------------------------------------------
Total Investments (cost $3,087,964) (c) 99.86% 3,087,964
- -------------------------------------------------------------------------------------------------------
Other Assets less Liabilities 0.14% 4,382
- -------------------------------------------------------------------------------------------------------
Net Assets 100.00% $3,092,346
=======================================================================================================
</TABLE>
See notes to portfolios of investments.
7
<PAGE>
Cash Resource Trust
U.S. Government Money Market Fund
Portfolio of Investments
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Agencies 65.34%
Federal Farm Credit Bank, 5.70%, 11/03/98 $ 30,000 $ 30,043
Federal Home Loan Bank
5.40% - 5.70%, 2/06/98 - 1/15/99 272,660 271,927
5.42% - 5.68%, 5/28/98 - 10/20/98 (b) 205,000 204,922
Federal Home Loan Mortgage Corporation
5.48% - 5.66%, 2/12/98 - 6/05/98 600,000 596,590
5.40%, 1/26/99 (b) 85,000 84,942
Federal National Mortgage Association
5.58% - 5.71%, 3/04/98 - 8/14/98 486,940 484,126
5.56% - 5.71%, 5/21/98 - 1/21/99 (b) 265,000 264,939
Student Loan Marketing Association
5.79%, 9/16/98 20,000 19,992
5.41% - 5.42%, 2/05/98 - 2/08/99 (b) 72,000 72,000
- --------------------------------------------------------------------------------------------------------
Total U.S. Government Agencies 2,029,481
- --------------------------------------------------------------------------------------------------------
Repurchase Agreements 34.60%
Dean Witter
Dated 1/30/98, 5.62%, due 2/02/98, collateralized by
various U.S. Government Agency Securities with total
original face value of $218,167, 5.50%-10.50%,
2/23/98 - 5/01/35; market value $155,142 150,000 150,000
First Boston (d)
Dated 1/20/98, 5.50%, due 4/21/98, collateralized by
$254,302 Federal Home Loan Mortgage Corporation,
7.00%, 12/01/27; market value $257,539 250,000 250,000
Goldman, Sachs & Company
Dated 1/30/98, 5.62%, due 2/02/98
collateralized by various U.S. Government Agency
Securities with total original face value of
$856,965, 5.50%-10.50%, 2/01/03-9/01/27;
market value $535,140 524,647 524,647
</TABLE>
8
<PAGE>
Cash Resource Trust
U.S. Government Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreements (continued)
Lehman Brothers, Inc.
Dated 1/30/98, 5.62%, due 2/02/98, collateralized by
various U.S. Government Agency Securities with total
original face value of $214,673, 5.50%-9.50%,
3/01/99 - 12/01/27; market value $153,001 $150,000 $ 150,000
- -----------------------------------------------------------------------------------------------------
Total Repurchase Agreements 1,074,647
- -----------------------------------------------------------------------------------------------------
Total Investments (cost $3,104,128) (c) 99.94% 3,104,128
- -----------------------------------------------------------------------------------------------------
Other Assets less Liabilities 0.06% 1,997
- -----------------------------------------------------------------------------------------------------
Net Assets 100.00% $3,106,125
=====================================================================================================
</TABLE>
See notes to portfolios of investments.
9
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) 57.87%
Alabama 2.49%
Montgomery Baptist Medical Center (VHA Alabama,
Inc.) Series B, 3.55%, 12/01/30 $ 5,400 $ 5,400
University of Alabama Board of Trustees Hospital
Revenue Series A, 3.50%, 10/01/07 3,600 3,600
University of Alabama Board of Trustees Hospital
Revenue Series 1993 B, 3.45%, 10/01/13 10,800 10,800
- --------------------------------------------------------------------------------------------------------
19,800
- --------------------------------------------------------------------------------------------------------
Arizona 2.92%
Apache County IDA (Tucson Electric Power Company
Project) Series A, 3.60%, 6/15/20 10,000 10,000
Arizona Health Facility Authority Pooled Loan
Program, 3.55%, 10/01/15 5,000 5,000
Pima Arizona IDA (Tucson Retirement Center), 3.45%,
1/01/09 8,300 8,300
- --------------------------------------------------------------------------------------------------------
23,300
- --------------------------------------------------------------------------------------------------------
California 0.84%
Anaheim C.O.P., Series 1993 3.15%, 8/01/19 600 600
Chula Vista IDRB (San Diego Gas & Electric), 3.80%,
12/01/21 6,100 6,100
- --------------------------------------------------------------------------------------------------------
6,700
- --------------------------------------------------------------------------------------------------------
Colorado 0.69%
Denver City and County MFHB (Seasons Apartments
Project), 3.55%, 10/01/06 5,500 5,500
- --------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
District of Columbia 1.00%
District of Columbia Health Facility (Army Distaff
Foundation), 3.55%, 2/01/21 $ 7,965 $ 7,965
- ------------------------------------------------------------------------------------------------------------
Georgia 1.64%
Burke County PCRB (Oglethorpe Power Corporation)
Series A, 3.50%, 1/01/16 3,100 3,100
Burke County PCRB (Oglethorpe Power Corporation)
Series A, 3.50%, 1/01/19 5,000 5,000
Summerville Development Authority (Image Industries),
3.70%, 9/01/17 5,000 5,000
- ------------------------------------------------------------------------------------------------------------
13,100
- ------------------------------------------------------------------------------------------------------------
Idaho 0.79%
Nez Perce County PCRB, (Potlatch) Series 1984,
3.50%, 12/01/14 6,300 6,300
- ------------------------------------------------------------------------------------------------------------
Illinois 3.95%
Chicago (O'Hare International Airport) Series 1988 B,
3.70%, 1/01/18 7,600 7,600
Chicago (O'Hare International Airport) Series 1994 B,
3.65%, 1/01/18 2,000 2,000
Illinois DFA (Grayhill, Inc. Project) IDRB, 3.70%,
2/01/05 2,800 2,800
Illinois DFA (Flinn Scientific Project) 3.70%, 10/01/15 4,395 4,395
Illinois Student Assistance Loan Revenue Bond Series
A, 3.65%, 3/01/06 14,700 14,700
- ------------------------------------------------------------------------------------------------------------
31,495
- ------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
Indiana 2.34%
Fort Wayne Hospital Authority (Parkview Memorial
Hospital) Series B, 3.55%, 1/01/16 $ 8,750 $ 8,750
Indiana Health Facility Finance Authority (Deaconess
Hospital), 3.55%, 1/01/22 9,900 9,900
- ----------------------------------------------------------------------------------------------------------
18,650
- ----------------------------------------------------------------------------------------------------------
Iowa 0.63%
Iowa Student Loan Revenue Bond Series B, 3.60%,
12/01/13 5,000 5,000
- ----------------------------------------------------------------------------------------------------------
Kentucky 0.31%
Kentucky Higher Education Student Loan Series 1996
A, 3.60%, 6/01/26 2,500 2,500
- ----------------------------------------------------------------------------------------------------------
Louisiana 5.97%
Desoto Parish PCRB (Central Louisiana Electric) Series
B, 3.50%, 7/01/18 7,900 7,900
Louisiana Offshore Terminal Authority, 3.50%,
9/01/17 5,300 5,300
Louisiana PFA Hospital Revenue (Willis-Knighton
Medical Project), 3.60%, 9/01/23 13,200 13,200
New Orleans Aviation Revenue Refund Series A,
3.55%, 8/05/15 9,700 9,700
St. James Parish PCRB (Occidental Petroleum), 3.50%,
10/01/18 11,500 11,500
- ----------------------------------------------------------------------------------------------------------
47,600
- ----------------------------------------------------------------------------------------------------------
Maryland 5.55%
Anne Arundel County (Oakland Hills Project), 3.55%,
5/15/15 2,052 2,052
</TABLE>
12
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
Maryland (continued)
Community Development & Administration (Avalon
Lea Apartments Project), 3.50%, 6/15/26 $ 4,335 $ 4,335
Community Development & Administration (Avalon
Ridge) Series 1997, 3.50%, 6/15/26 11,815 11,815
Maryland State Health & Higher Education, (Catholic
Health Initiatives), 3.55%, 12/01/25 10,000 10,000
Maryland State Health & Higher Education, (Helix
Health Hospital) Series A, 3.55%, 7/01/26 8,000 8,000
Maryland State Health & Higher Education, Pooled
Loan Program Series B, 3.45%, 4/01/35 8,000 8,000
- -------------------------------------------------------------------------------------------------------
44,202
- -------------------------------------------------------------------------------------------------------
Massachusetts 0.58%
Massachusetts State Independent Financial Agency
(Whitehead Institutional Biomedical Research),
3.30%, 7/01/26 4,600 4,600
- -------------------------------------------------------------------------------------------------------
Michigan 2.22%
Grand Rapids Water Supply Refunding, 3.50%,
1/01/20 4,200 4,200
Michigan State Strategic Fund, 3.55%, 11/01/27 13,500 13,500
- -------------------------------------------------------------------------------------------------------
17,700
- -------------------------------------------------------------------------------------------------------
New Hampshire 1.60%
New Hampshire Health and Higher Education (VHA
New England) Series B, D, & G, 3.55%, 12/01/25 12,725 12,725
- -------------------------------------------------------------------------------------------------------
New Mexico 0.26%
Albuquerque Gross Receipts Lodgers Tax Series A,
3.55%, 7/01/22 2,050 2,050
- -------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
New York 2.75%
New York City Health & Hospital, Health System
Bonds Series 1997 A, 3.30%, 2/15/26 $ 5,000 $ 5,000
New York City Housing Development (17th Street
Properties) Series 1993 A, 3.65%, 1/01/23 400 400
New York City Housing Development (Columbus
Gardens) Series 1993 A, 3.40%, 2/01/07 200 200
New York City Housing Development (Tribeca
Towers), 3.45%, 11/15/19 15,000 15,000
New York State Energy Electric Facility LILCO Series
B, 3.55%, 11/01/23 400 400
New York State Housing Finance Agency (Normandie
C&I Project), 3.40%, 5/15/15 500 500
Port Authority of New York and New Jersey Series 3,
3.60%, 6/01/20 400 400
- --------------------------------------------------------------------------------------------------------
21,900
- --------------------------------------------------------------------------------------------------------
North Carolina 2.32%
Durham Water & Sewer Utility System Revenue,
3.50%, 12/01/15 4,800 4,800
Lincoln County Industrial Facility PCRB (Barre-
National, Inc.) Series 1994, 3.70%, 8/01/09 5,000 5,000
North Carolina Education Facilities (Duke University
Program) Series A, 3.40%, 12/01/17 3,000 3,000
North Carolina Education Facilities (Bowman Grey
School Medical), 3.50%, 9/01/20 4,200 4,200
North Carolina Medical Care, (Duke University
Hospital) Series A, 3.40%, 6/01/23 1,500 1,500
- --------------------------------------------------------------------------------------------------------
18,500
- --------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
Ohio 0.75%
Ohio State Air Quality Authority (IMG Funding
Limited Partnership) Series A, 3.70%, 4/01/28 $ 6,000 $ 6,000
- ---------------------------------------------------------------------------------------------------------
South Carolina 2.63%
Piedmont Municipal Power Agency Electric Revenue
Series C, 3.50%, 1/01/22 4,000 4,000
South Carolina Jobs (Presbyterian Home of South
Carolina Foothills) Series 1996, 3.55%, 12/01/21 9,250 9,250
South Carolina Jobs EDA Hospital Revenue (Tuomay
Regional Medical Center) Series B, 3.55%, 11/01/25 7,700 7,700
- ---------------------------------------------------------------------------------------------------------
20,950
- ---------------------------------------------------------------------------------------------------------
Tennessee 1.58%
Metropolitan Government of Nashville and Davidson
County Health and Education Facility, (D. Lipscomb
University), 3.55%, 5/01/20 4,615 4,615
State of Tennessee GO BANS Series 1997 A, 3.45%,
7/02/11 8,000 8,000
- ---------------------------------------------------------------------------------------------------------
12,615
- ---------------------------------------------------------------------------------------------------------
Texas 6.68%
Calhoun County IDRB (Formosa Plastics Corporation
Project), 3.65%, 11/01/15 28,500 28,500
Matagorda County Navigation District No. 1 Revenue
(Houston Light & Power Company), 3.70%,
11/01/28 10,000 10,000
Red River Authority Texas PCRB (Southwestern Public
Service), 3.55%, 7/01/16 5,000 5,000
</TABLE>
15
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
Texas (continued)
Texas HFA (North Texas Pooled Health) Series 1985 B,
3.75%, 8/01/25 $ 9,700 $ 9,700
- ----------------------------------------------------------------------------------------------------------
53,200
- ----------------------------------------------------------------------------------------------------------
Virginia 5.51%
Arlington County (Ballston Public Parking), 3.50%,
8/01/17 3,450 3,450
Botetourt County IDRB (Emkay Holdings LLC
Project), 3.55%, 10/01/05 2,700 2,700
Capital Regional Airport Commission (Richmond
International Airport Project) Series 1995 C, 3.50%,
7/01/23 4,000 4,000
Fairfax County EDA (Kinder Care Learning Centers),
3.65%, 10/01/99 4,875 4,875
Hampton Roads Regional Jail Authority Regional Jail
Facility Series 1996 B, 3.50%, 7/01/16 6,500 6,500
Hanover County IDRB (Carter Machinery), 3.55%,
11/01/98 500 500
Louisa County IDRB Pooled Financing Virginia
Municipal Bond Fund, 3.55%, 1/01/20 1,200 1,200
Lynchburg IDA (VHA Mid-Atlantic) Series G, 3.55%,
12/01/25 500 500
Newport News MFHB (Newport-Oxford Project),
3.40%, 11/01/06 9,700 9,700
Richmond Public Utilities Revenue Notes Series A,
3.60%, 6/30/01 5,000 5,000
Spotsylvania City IDA Residential Care Facilities
(Chancellor Village Project), 3.55%, 10/01/20 4,684 4,684
</TABLE>
16
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) (continued)
Virginia (continued)
Tazewell County IDRB (Coal Fillers, Inc.), 3.50%,
1/01/03 $ 800 $ 800
- ----------------------------------------------------------------------------------------------------------
43,909
- ----------------------------------------------------------------------------------------------------------
Washington 0.69%
Port of Seattle Washington Sub-Lien Revenue Bonds
Series 1997, 3.55%, 9/01/22 5,500 5,500
- ----------------------------------------------------------------------------------------------------------
West Virginia 0.68%
West Virginia State Hospital (VHA Mid-Atlantic) Series
G, 3.55%, 12/01/25 5,400 5,400
- ----------------------------------------------------------------------------------------------------------
Wyoming 0.50%
Sweetwater County PCRB (Pacific Corporation Project)
Series A, 3.50%, 7/01/15 4,000 4,000
- ----------------------------------------------------------------------------------------------------------
Total Variable Rate Tax-Exempt Demand Securities 461,161
- ----------------------------------------------------------------------------------------------------------
Other Tax-Exempt Securities 40.05%
California 3.40%
Butte County Office of Education TRANS, 4.50%,
7/31/98 10,000 10,030
Los Angeles County TRANS Series A, 4.50%, 6/30/98 12,000 12,030
State of California GO TECP 3.50%, 2/02/98 5,000 5,000
- ----------------------------------------------------------------------------------------------------------
27,060
- ----------------------------------------------------------------------------------------------------------
Florida 0.37%
Jacksonville Florida TECP, 3.55%, 6/15/98 3,000 3,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Tax-Exempt
Demand Securities (continued)
Illinois 0.52%
City of Chicago GO Equipment Notes, 3.80%,
12/03/98 $ 4,200 $ 4,200
- --------------------------------------------------------------------------------------------------------
Indiana 1.00%
Jasper County PCRB (Northern Indiana Public
Services) Series D, 3.75%, 2/19/98 8,000 8,000
- --------------------------------------------------------------------------------------------------------
Kentucky 1.01%
Pulaski County Solid Waste Disposal Project (East
Kentucky Power) Series B, 3.70%, 2/15/98 8,100 8,100
- --------------------------------------------------------------------------------------------------------
Louisiana 2.56%
Plaquemines Port Harbor and Terminal (Electro Coal
Transfer) Series C, 3.75%, 3/11/98 6,500 6,500
Parish of West Baton Rouge Industrial District No. 3
(Dow Chemical) Series 1985, 3.55%, 4/08/98 6,000 6,000
Parish of West Baton Rouge Industrial District No. 3
(Dow Chemical) Series 1987, 3.80%, 2/17/98 7,950 7,950
- --------------------------------------------------------------------------------------------------------
20,450
- --------------------------------------------------------------------------------------------------------
Maryland 2.26%
Baltimore County Metropolitan District TECP Series
1995, 3.60%, 5/07/98 8,000 8,000
Montgomery County BANS TECP Series 1995, 3.50%,
4/06/98 10,000 10,000
- --------------------------------------------------------------------------------------------------------
18,000
- --------------------------------------------------------------------------------------------------------
Michigan 2.06%
Michigan State Strategic Fund PCRB (Dow Chemical),
3.85%, 2/11/98 6,350 6,350
</TABLE>
18
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Tax-Exempt
Demand Securities (continued)
Michigan (continued)
Michigan Municipal Bond Authority Series 1996 D,
4.50%, 7/02/98 $10,000 $ 10,028
- ---------------------------------------------------------------------------------------------------------
16,378
- ---------------------------------------------------------------------------------------------------------
Mississippi 0.51%
Jackson County (Chevron) Series 1994, 3.55%, 8/03/98 4,100 4,100
- ---------------------------------------------------------------------------------------------------------
Nebraska 1.03%
Omaha Public Power District TECP, 3.70%, 2/19/98 8,200 8,200
- ---------------------------------------------------------------------------------------------------------
New York 0.82%
Westchester County New York TRANS, 3.59%,
12/29/98 6,500 6,501
- ---------------------------------------------------------------------------------------------------------
North Carolina 1.26%
North Carolina Eastern Municipal Power Agency Series
B, 3.85%, 2/09/98 10,000 10,000
- ---------------------------------------------------------------------------------------------------------
Ohio 0.68%
Montgomery County Ohio (Miami Valley Hospital)
Series B, 3.60%, 2/11/98 5,400 5,400
- ---------------------------------------------------------------------------------------------------------
Oregon 0.50%
Clackamas County Hospital Facility (Kaiser
Permanente), 3.75%, 4/01/98 4,000 4,000
- ---------------------------------------------------------------------------------------------------------
South Carolina 1.51%
York County PCRB (North Carolina Electric Project)
Series 1984 N-6, 3.70%, 3/15/98 12,000 12,000
- ---------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Tax-Exempt
Demand Securities (continued)
Tennessee 0.38%
Tennessee HDA (Home Ownership Project) Issue I,
3.75%, 2/19/98 $ 3,000 $ 3,000
- -----------------------------------------------------------------------------------------------------
Texas 10.89%
Brazos Harbor IDB (Dow Chemical Company Project)
Series 1996, 3.70%, 3/10/98 3,700 3,700
Brazos Harbor IDB (Dow Chemical Company Project)
Series 1987 B, 3.80%, 2/09/98 7,350 7,350
Austin Texas TECP Series A, 3.70%, 2/11/98 10,000 10,000
Austin Texas TECP Series A, 3.50%, 5/14/98 8,000 8,000
Houston Texas TECP Series B, 3.80%, 2/26/98 7,000 7,000
Lower Colorado River Authority TECP Series D,
3.70%, 3/12/98 8,000 8,000
Plano Texas Health Facilities (Children's &
Presbyterian Hospital), 3.70%, 3/09/98 7,000 7,000
San Antonio Electric & Gas Systems TECP Series A,
3.75%, 3/11/98 5,600 5,600
San Antonio Electric & Gas Systems TECP Series A,
3.75%, 3/12/98 10,000 10,000
State of Texas TRANS Series A, 4.75%, 8/31/98 18,000 18,101
Texas A & M Permanent University Fund Series B,
3.70%, 3/09/98 2,000 2,000
- -----------------------------------------------------------------------------------------------------
86,751
- -----------------------------------------------------------------------------------------------------
Utah 0.63%
Intermountain Power Agency Power Supply Revenue
Bonds Series F, 3.80%, 6/15/98 5,000 5,000
- -----------------------------------------------------------------------------------------------------
Vermont 0.19%
Vermont EDA TECP Series B, 3.85%, 3/09/98 1,518 1,518
- -----------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Tax-Exempt
Demand Securities (continued)
Virginia 6.30%
Chesterfield County IDA Series 1987 B (VEPCO),
3.80%, 2/17/98 $ 6,000 $ 6,000
Fairfax County Series B, 6.10%, 4/01/98 700 707
Falls Church IDRB (Kaiser Permanente Medical
Center), 3.70%, 5/01/98 500 500
Richmond Redevelopment Housing Authority Series
1997 A & B, 4.75%, 2/26/98 4,500 4,500
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 15,001
Virginia GO BAN Series 1991, 3.75%, 2/26/98 10,000 10,000
Virginia State PSA School Series I, 4.25%, 8/01/98 500 501
York County IDA PCRB (VEPCO) 3.90%, 3/02/98 3,000 3,000
York County IDA PCRB (VEPCO) 3.85%, 3/20/98 5,000 5,000
- ---------------------------------------------------------------------------------------------------------
50,209
- ---------------------------------------------------------------------------------------------------------
West Virginia 0.91%
West Virginia HDA Interim Financing Notes Series
1997 B, 3.55%, 3/02/98 6,245 6,245
West Virginia HDA GO Notes Series 1997 A, 3.90%,
6/18/98 1,000 1,000
- ---------------------------------------------------------------------------------------------------------
7,245
- ---------------------------------------------------------------------------------------------------------
Wisconsin 1.26%
Milwaukee RANS Series A, 4.25%, 2/19/98 10,000 10,003
- ---------------------------------------------------------------------------------------------------------
Total Other Tax-Exempt Securities 319,115
- ---------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
Cash Resource Trust
Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Shares or
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other 2.07%
AIM - TFIC Institutional, 3.41%, 2/02/98 9,000 $ 9,000
PNC Municash, 3.47%, 2/02/98 7,492 7,492
- ------------------------------------------------------------------------------------------------
Total Other 16,492
- ------------------------------------------------------------------------------------------------
Total Investments (cost $796,768) (c) 99.99% 796,768
- ------------------------------------------------------------------------------------------------
Other Assets less Liabilities 0.01% 45
- ------------------------------------------------------------------------------------------------
Net Assets 100.00% $ 796,813
================================================================================================
</TABLE>
See notes to portfolios of investments.
22
<PAGE>
Cash Resource Trust
California Tax-Exempt Money Market Fund
Portfolio of Investments
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) 47.25%
ABAG Finance Authority 1993 C.O.P., (Lucile Slater
Packard Children's Hospital) 3.15%, 8/01/23 $3,300 $ 3,300
Anaheim C.O.P. 1993 Refunding Project, 3.15%, 8/01/19 3,000 3,000
CA HFA Revenue Bond (Adventist Health) Series A,
3.15%, 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, 3.25%,
12/01/10 1,900 1,900
CA PCRB (Sanger Project) Series A, 3.20%, 9/01/20 3,000 3,000
CA PCRB Solid Waste Disposal (Western Waste) Series A,
3.33%, 12/01/00 2,200 2,200
CA Statewide Community Development (Veriflo Corp.)
3.30%, 4/01/11 2,025 2,025
Corona MFHB (Country Hills Project) Series B, 3.15%,
2/01/20 3,000 3,000
Fremont MFHB (Creekside Village Apartments) Series D,
3.20%, 9/01/07 4,700 4,700
Hermosa Beach CA Parking Authority, 3.35%, 12/01/23 3,000 3,000
Irvine Public Facilities Capital Improvement, 3.10%,
11/01/10 3,300 3,300
Los Angeles County Pension Obligation Series C, 3.15%,
6/30/07 3,900 3,900
Redlands C.O.P. (Sewer Facilities), 3.20%, 9/01/17 1,080 1,080
San Francisco City & County MFHB (Rincon Center
Project) Series B, 3.25%, 12/01/06 990 990
Southern California Public Power Authority Power Project
Revenue Bonds 1996 Series C, 3.15%, 7/01/17 2,200 2,200
- -------------------------------------------------------------------------------------------------------
Total Variable Rate Tax-Exempt Demand Securities 42,095
- -------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
Cash Resource Trust
California Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Shares or
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Tax-Exempt Securities 51.58%
Butte County Office of Education TRANS, 4.50%, 7/31/98 $2,000 $ 2,006
CA PCRB (Southern California Edison) Series 1986 D,
3.70%, 2/28/08 2,000 2,000
CA PCRB (Pacific Gas & Electric) Series 1996 D, 3.50%,
2/20/98 2,000 2,000
CA PCRB (Pacific Gas & Electric) Series 1996 D, 3.60 %,
2/20/98 3,000 3,000
CA State GO TECP, 3.50%, 2/02/98 2,000 2,000
CA State GO TECP, 3.65%, 3/16/98 2,900 2,900
City of San Diego IDRB (San Diego Gas & Electric) Series
1995 A, 3.65%, 2/20/98 2,000 2,000
Los Angeles County Metropolitan Transportation
Authority TECP Series A, 3.65%, 2/19/98 4,000 4,000
Los Angeles County Metropolitian Transportation
Authority TECP Series A, 3.70%, 3/13/98 2,000 2,000
Los Angeles County TRANS Series A, 4.50%, 6/30/98 3,000 3,008
Puerto Rico GDB TECP, 4.50%, 7/30/98 2,000 2,009
Sacremento Municipal Utilities TECP, 3.70%, 2/20/98 3,000 3,000
San Francisco Airport TECP Series 1997 A, 3.60%, 2/26/98 5,000 5,000
San Mateo USD TRANS, 4.50%, 7/10/98 4,000 4,011
State of California RANS, 4.50%, 6/30/98 4,000 4,011
Ventura County TRANS 1997, 4.50%, 7/01/98 3,000 3,007
- ---------------------------------------------------------------------------------------------------------
Total Other Tax-Exempt Securities 45,952
- ---------------------------------------------------------------------------------------------------------
Other 0.49%
California Money Fund, 3.20%, 02/02/98 435 435
- ---------------------------------------------------------------------------------------------------------
Total Investments (cost $88,482)(c) 99.32% 88,482
- ---------------------------------------------------------------------------------------------------------
Other Assets less Liabilities 0.68% 604
- ---------------------------------------------------------------------------------------------------------
Net Assets 100.00% $ 89,086
=========================================================================================================
</TABLE>
See notes to portfolios of investments.
24
<PAGE>
Cash Resource Trust
New York Tax-Exempt Money Market Fund
Portfolio of Investments
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Variable Rate Tax-Exempt
Demand Securities (b) 42.13%
NY City GO Bonds 1995 Series B, B-7, 3.65%, 8/15/18 $200 $ 200
NY City Health & Hospital (Health Systems) Series A,
3.30%, 2/15/26 400 400
NY City Housing Development MFHB (Columbus
Apartments) Series A, 3.35%, 3/15/25 300 300
NY State Dormitory Authority (Metropolitan Museum
of Art) Series A, 3.30%, 7/01/15 300 300
NY State Housing Finance Agency (Normandie Court I
Project), 3.40%, 5/15/15 300 300
NY State (LGAC) Series 1994 B, 3.30%, 4/01/23 400 400
NY State (LGAC) Series C, 3.30%, 4/01/25 400 400
NY State (LGAC) Series G, 3.45%, 4/01/25 300 300
NY State Medical Care (Pooled Equipment Loan
Program II) Series A, 3.50%, 11/01/03 300 300
NY State Medical Care (Pooled Equity Loan Program I)
3.50%, 11/01/15 200 200
Niagara County NY IDA Solid Waste Disposal (AM
Ref-Fuel Co.), 1996 D 3.65%, 11/15/26 400 400
Niagara Falls Toll Revenue Series A, 3.45%, 10/01/19 300 300
St. Lawrence County NY IDA (Reynolds Metals) Series
1985, 3.65%, 12/01/07 200 200
Suffolk County Water Authority BANS, 3.50%,
2/08/01 300 300
Triborough Bridge and Tunnel Authority Special
Obligation, 3.45%, 1/01/24 300 300
- ---------------------------------------------------------------------------------------------------------
Total Variable Rate Tax-Exempt Demand Securities 4,600
- ---------------------------------------------------------------------------------------------------------
Other Tax-Exempt Securities 52.25%
Erie County NY Refunding, Series A & B, 4.25%,
2/01/98 200 200
Great Neck NY Union Free School District TANS,
4.25%, 6/30/98 500 501
</TABLE>
25
<PAGE>
Cash Resource Trust
New York Tax-Exempt Money Market Fund
Portfolio of Investments (continued)
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Shares or
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Tax-Exempt Securities (continued)
Monroe County NY GO 1997, 3.65%, 2/11/98 $500 $ 501
Muni Assistance Corporation Series F, 3.55%, 2/10/98 500 500
Nassau County BANS Series A, 4.25%, 8/17/98 500 500
NY Dormitory Authority (Sloan Kettering Cancer
Center) 1989B, 3.55%, 2/11/98 400 400
NY State BANS TECP Series S, 3.80%, 2/02/98 300 300
NY State Environmental Solid Waste Disposal
(GE Project) Series 1992A, 3.70%, 2/19/98 300 300
NY City GO TECP Series J, J-2, 3.65%, 2/12/98 500 500
NY State Power Authority TECP, 3.65%, 3/11/98 400 400
Puerto Rico GDB TECP, 3.60%, 2/11/98 500 502
Puerto Rico TRANS Series A, 4.50%, 7/30/98 500 500
Sachem CSD (Holbrook) Series 1997-98 TANS,
4.25%, 6/25/98 300 301
Westchester County TANS, 3.59%, 12/29/98 500 500
- ---------------------------------------------------------------------------------------------------------
Total Other Tax-Exempt Securities 5,705
- ---------------------------------------------------------------------------------------------------------
Other 5.41%
PNC NYCash, 3.38%, 2/02/98 590 590
- ---------------------------------------------------------------------------------------------------------
Total Investments (cost $10,895) (c) 99.79% 10,895
- ---------------------------------------------------------------------------------------------------------
Other Assets less Liabilities 0.21% 23
- ---------------------------------------------------------------------------------------------------------
Net Assets 100.00% $10,918
=========================================================================================================
</TABLE>
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
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
26
<PAGE>
Cash Resource Trust
Notes to Portfolios of Investments
January 31, 1998 (Unaudited)
(In thousands)
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
Securities 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, 1998.
(c) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same.
(d) The repurchase agreement is deemed illiquid because it can not be resold
within seven business days from January 31, 1998.
(e) These are securities that may be resold to qualified institutional buyers
under Rule 144A or securities offered pursuant to section 4(2) of the
Securities Act of 1933, as amended. These securities have been determined
to be illiquid under guidelines that have been established by the Board of
Trustees.
See notes to financial statements.
27
<PAGE>
Cash Resource Trust
Statements of Assets and Liabilities
January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
New
California 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> <C> <C> <C> <C>
Assets
Investments, at amortized
cost (Note 2)
Investment securities $ 2,649,162 $ 2,029,524 $ 796,838 $ 88,495 $ 10,895
Repurchase agreements 438,986 1,074,647 - - -
- --------------------------------------------------------------------------------------------------------------------
Total investments 3,088,148 3,104,171 796,838 88,495 10,895
- --------------------------------------------------------------------------------------------------------------------
Receivables
Dividends and interest 10,792 9,499 5,145 732 59
Fund shares sold 56,489 2,966 10,220 1,213 -
Organizational costs, net (Note 2) 24 109 18 8 2
Other 89 - - - 3
- --------------------------------------------------------------------------------------------------------------------
Total assets 3,155,542 3,116,745 812,221 90,448 10,959
- --------------------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investments purchased - - 4,100 - -
Fund shares redeemed 56,478 3,773 10,280 1,203 -
Dividends 6,698 6,644 1,022 105 13
Accrued expenses and other liabilities 20 203 6 54 28
- --------------------------------------------------------------------------------------------------------------------
Total liabilities 63,196 10,620 15,408 1,362 41
- --------------------------------------------------------------------------------------------------------------------
Net Assets $ 3,092,346 $ 3,106,125 $ 796,813 $ 89,086 $ 10,918
====================================================================================================================
Net Asset Value per Share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Shares Outstanding 3,092,377 3,106,125 796,815 89,086 10,918
====================================================================================================================
</TABLE>
See notes to financial statements.
28
<PAGE>
Cash Resource Trust
Statements of Operations
Six Months Ended January 31, 1998 (Unaudited)
(In thousands)
<TABLE>
<CAPTION>
New
California 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> <C> <C> <C> <C>
Investment income
Interest $87,494 $ 85,402 $ 14,304 $ 1,736 $ 207
- -------------------------------------------------------------------------------------------------------------
Expenses
Distribution fee (Note 3) 5,832 5,767 1,278 162 29
Management fee (Note 3) 2,781 2,755 825 108 13
Transfer agent fee (Note 3) 2,213 2,135 195 15 -
Registration expenses 498 320 185 17 6
Custodian and accounting fees (Note 3) 368 384 112 12 4
Shareholder reports and postage expenses 230 218 20 - -
Administrative service fees (Note 4) 32 32 8 1 -
Audit fees 29 31 8 1 -
Legal fees 24 25 6 1 -
Organizational expenses 14 64 17 1 -
Directors' fees and expenses 6 6 2 - -
Miscellaneous 573 405 93 51 14
- -------------------------------------------------------------------------------------------------------------
Total expenses 12,600 12,142 2,749 369 66
- -------------------------------------------------------------------------------------------------------------
Deduct
Waiver of management fee (Note 4) - - - - 13
Waiver of distribution fee (Note 4) - - - - 7
- -------------------------------------------------------------------------------------------------------------
Net expenses 12,600 12,142 2,749 369 46
- -------------------------------------------------------------------------------------------------------------
Net investment income 74,894 73,260 11,555 1,367 161
- -------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations $74,894 $ 73,260 $ 11,555 $ 1,367 $ 161
=============================================================================================================
</TABLE>
See notes to financial statements.
29
<PAGE>
Cash Resource Trust
Statements of Changes in Net Assets
(In thousands)
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund Money Market Fund
- -------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended Year Ended Year
1/31/98 Ended 1/31/98 Ended
(Unaudited) 7/31/97 (Uuaudited) 7/31/97
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Increase (Decrease) in Net Assets
Operations
Net investment income $ 74,894 $ 101,298 $ 73,260 $ 111,580
Net realized gain (loss) on investments sold - (30) - 60
- ------------------------------------------------------------------------------------------------------------
Increase in net assets resulting from
operations 74,894 101,268 73,260 111,640
- ------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
Net investment income (74,894) (101,298) (73,260) (111,580)
- ------------------------------------------------------------------------------------------------------------
Net decrease from distributions (74,894) (101,298) (73,260) (111,580)
- ------------------------------------------------------------------------------------------------------------
Capital Share Transactions (Note 8)
Proceeds from sale of shares 7,289,446 11,609,162 6,816,731 11,304,514
Reinvested distributions 74,367 96,439 72,742 108,221
Shares redeemed (7,213,072) (9,410,466) (6,702,059) (9,896,481)
- ------------------------------------------------------------------------------------------------------------
Change in net assets resulting from capital
share transactions 150,741 2,295,135 187,414 1,516,314
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 150,741 2,295,105 187,414 1,516,314
Net Assets
Beginning of period 2,941,605 646,500 2,918,711 1,402,397
- ------------------------------------------------------------------------------------------------------------
End of period $ 3,092,346 $ 2,941,605 $ 3,106,125 $ 2,918,711
============================================================================================================
</TABLE>
(a) For the period from December 9, 1996 (Commencement of operations) to July
31, 1997.
See notes to financial statements.
30
<PAGE>
Cash Resource Trust
Statements of Changes in Net Assets
(In thousands)
<TABLE>
<CAPTION>
Tax Exempt California Tax-Exempt New York Tax-Exempt
Money Market Fund Money Market Fund Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Period Ended Period
1/31/98 Ended 1/31/98 Ended 1/31/98 Ended
(Unaudited) 7/31/97 (Unaudited) 7/31/97(a) (Unaudited) 7/31/97(a)
- ---------------------------------------------------------------------------------------------------------------------------------
<S>
Net Increase (Decrease) in Net Assets
Operations <S> <C> <C> <C> <C> <C>
Net investment income $ 11,555 $ 17,851 $ 1,367 $ 1,480 $ 161 $ 138
Net realized gain (loss) on investments sold - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets resulting from
operations 11,555 17,851 1,367 1,480 161 138
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
Net investment income (11,555) (17,851) (1,367) (1,480) (161) (138)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease from distributions (11,555) (17,851) (1,367) (1,480) (161) (138)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (Note 8)
Proceeds from sale of shares 1,639,743 2,957,235 205,991 336,910 34,498 40,518
Reinvested distributions 11,507 17,229 1,371 1,372 163 123
Shares redeemed (1,598,051) (2,521,741) (207,708) (248,850) (35,814) (28,570)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from capital
share transactions 53,199 452,723 (346) 89,432 (1,153) 12,071
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
Net Assets 53,199 452,723 (346) 89,432 (1,153) 12,071
Beginning of period 743,614 290,891 89,432 - 12,071 -
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 796,813 $ 743,614 $ 89,086 $ 89,432 $ 10,918 $ 12,071
=================================================================================================================================
</TABLE>
<PAGE>
Cash Resource Trust
Financial Highlights
<TABLE>
<CAPTION>
Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Period
1/31/98 Ended Ended Ended Ended
(Unaudited) 7/31/97 7/31/96 7/31/95 7/31/94*
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from investment
operations
Net investment income 0.025 0.047** 0.050 0.050** 0.020
- --------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.025) (0.047) (0.050) (0.050)** (0.020)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
====================================================================================================================
Total Return 2.47% 4.77% 4.91% 4.97% 1.83%(b)
====================================================================================================================
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 3,092,346 $ 2,941,605 $ 646,500 $ 422,657 $ 192,260
Ratio of expenses to average net
assets 0.83%(a) 0.86% 0.82% 0.82% 0.89%(a)
Ratio of expenses to average net
assets excluding waivers 0.83%(a) 0.86% 0.82% 0.82% 0.93%(a)
Ratio of net investment income to
average net assets 4.90%(a) 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.
32
<PAGE>
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Period
1/31/98 Ended Ended Ended Ended
(Unaudited) 7/31/97 7/31/96 7/31/95 7/31/94*
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <S> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from investment
operations
Net investment income 0.024 0.046** 0.050 0.050** 0.020
- -------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.024) (0.046)** (0.050) (0.050) (0.020)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
==============================================================================================================================
Total Return 2.46% 4.72% 4.74% 4.82% 1.82%(b)
===============================================================================================================================
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 3,106,125 $ 2,918,711 $ 1,402,397 $ 1,216,690 $ 907,819
Ratio of expenses to average net
assets 0.80%(a) 0.81% 0.93% 0.88% 0.80%(a)
Ratio of expenses to average net
assets excluding waivers 0.80%(a) 0.81% 0.93% 0.88% 0.83%(a)
Ratio of net investment income to
average net assets 4.85%(a) 4.63% 4.63% 4.75% 2.91%(a)
===============================================================================================================================
</TABLE>
33
<PAGE>
Cash Resource Trust
Financial Highlights
<TABLE>
<CAPTION>
Tax-Exempt
Money Market Fund
- --------------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended Year Year Year Period
1/31/98 Ended Ended Ended Ended
(Unaudited) 7/31/97 7/31/96 7/31/95 7/31/94*
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from investment operations
Net investment income 0.015 0.029 0.030 0.030** 0.010
Distributions
Net investment income (0.015) (0.029) (0.030) (0.030) (0.010)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
=========================================================================================================================
Total Return 1.52% 2.91% 2.90% 3.05% 1.16%(b)
=========================================================================================================================
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 796,813 $ 743,614 $ 290,891 $ 266,895 $ 195,702
Ratio of expenses to average net assets 0.71%(a) 0.71% 0.76% 0.72% 0.65%(a)
Ratio of expenses to average net assets
excluding waivers 0.71%(a) 0.71% 0.76% 0.74% 0.74%(a)
Ratio of net investment income to
average net assets 3.00%(a) 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.
34
<PAGE>
<TABLE>
<CAPTION>
California Tax-Exempt New York Tax-Exempt
Money Market Fund Money Market Fund
- -------------------------------------------------------------------------------------------------------------------------------
Six Six
Months Months
Ended Period Ended Period
1/31/98 Ended 1/31/98 Ended
(Unaudited) 7/31/97*** (Unaudited) 7/31/97***
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period
Income from investment operations
Net investment income $ 1.000 $ 1.000 $ 1.000 $ 1.000
Distributions 0.015 0.017 0.014 0.018
Net investment income (0.015) (0.017) (0.014) (0.018)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
=========================================================================================================================
Total Return 1.41% 1.76%(b) 1.42% 1.77%(b)
=========================================================================================================================
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 89,086 $ 89,432 $ 10,918 $ 12,071
Ratio of expenses to average net assets 0.75%(a) 0.75%(a) 0.80%(a) 0.80%(a)
Ratio of expenses to average net assets
excluding waivers 0.75%(a) 0.75%(a) 1.04%(a) 1.04%(a)
Ratio of net investment income to
average net assets 2.94%(a) 2.70%(a) 2.80%(a) 2.77%(a)
=========================================================================================================================
</TABLE>
35
<PAGE>
Cash Resource Trust
Notes to Financial Statements
January 31, 1998 (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, 1998 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 as
permitted by Rule 2a-7 of the Investment Company Act of 1940. 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
36
<PAGE>
Cash Resource Trust
Notes to Financial Statements
(continued)
other deviation that the Board of Trustees believes would result in a material
dilution to shareholders or purchasers, the Board of Trustees will promptly
consider what action should be initiated.
(b) Repurchase Agreements
It is the policy of the Trust to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book entry system, or to have
segregated within the custodian bank's possession 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
37
<PAGE>
Cash Resource Trust
Notes to Financial Statements
(continued)
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.
(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
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 partially owned subsidiary of Wheat First Union
("Wheat"). EVEREN Capital Corporation owns 20% of the outstanding interest 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.
38
<PAGE>
Cash Resource Trust
Notes to Financial Statements
(continued)
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, 1998, Mentor Advisors
earned the following advisory fees:
<TABLE>
<CAPTION>
Manangement Fee
Management Fee Voluntarily
Earned Waived
- ------------------------------------------------------------------
<S> <C> <C>
Money Market Fund $2,780,644 $ -
U.S. Government Fund 2,754,904 -
Tax-Exempt Fund 824,692 -
California Tax-Exempt Fund 108,298 -
New York Tax-Exempt Fund 12,732 12,732
- ------------------------------------------------------------------
</TABLE>
In addition, the Funds provide direct reimbursement to Mentor for certain
accounting, legal and compliance administration, investor relation and
operations related costs not covered under the Investment Management Agreement.
For the six months ended January 31, 1998, the Money Market Fund, U.S.
Government Fund, Tax-Exempt Fund, California Tax-Exempt Fund and New York
Tax-Exempt Fund paid $119,505, $117,503, $29,284, $3,682 and $461, respectively
to Mentor for these direct reimbursements.
Distribution Agreement
Under a Distribution Agreement, Mentor Distributors, LLC ("Mentor
Distributors") a wholly-owned subsidiary of BISYS Fund Services, Inc., 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
39
<PAGE>
Cash Resource Trust
Notes to Financial Statements
(continued)
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 New York Tax-Exempt Fund and 0.33% in the
case of Tax-Exempt Fund and California Tax-Exempt Funds).
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 six months ended January 31, 1998,
Wheat earned fees of $2,213,193, $2,134,741, $194,892, $14,991 and $64
respectively from 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 letter of
credit or other guarantees of banks or other financial institutions.
40
<PAGE>
Cash Resource Trust
Notes to Financial Statements
(continued)
Additional Information
Shareholders of the Fund considered and acted upon the proposals listed below
at a special meeting of shareholders held Monday December 22, 1997. In
addition, below each proposal are the results of that vote.
1. To elect the following Trustees:
Affirmative Withheld
Daniel J. Ludeman 6,223,629,812 32,306,593
Troy A. Peery, Jr. 6,222,830,047 33,106,358
Arnold H. Dreyfuss 6,221,454,256 34,482,149
Thomas F. Keller 6,223,272,078 32,664,327
Peter J. Quinn, Jr. 6,224,086,641 31,849,764
Louis W. Moelchert, Jr. 6,223,369,321 32,567,084
Arch T. Allen, III 6,222,970,532 32,965,873
Weston E. Edwards 6,223,380,867 32,555,538
Jerry r. Barrentine 6,222,461,800 33,474,605
J. Garnett Nelson 6,224,390,305 31,546,100
2. To approve a new management contract between the Fund and Mentor Investment
Advisors, LLC to take effect upon the merger of Wheat First Butch Singer, Inc.,
with First Union Corporation:
Affirmative 6,151,770,212
Against 42,626,240
Abstain 61,539,953
3. To approve a new management contract between the Fund and Mentor Investment
Advisors, LLC in contemplation of the potential acquisition of an additional
interest in Mentor Investment Group, LLC by EVEREN Securities holdings, Inc.:
Affirmative 6,156,747,622
Against 40,659,019
Abstain 58,529,764
41
<PAGE>
Cash Resource Trust
Shareholder Information
Trustees
Daniel J. Ludeman, Trustee & Chairman
Arch T. Allen, III, Trustee
Jerry R. Barrentine, Trustee
Arnold H. Dreyfuss, Trustee
Weston E. Edwards, Trustee
Thomas F. Keller, Trustee
Louis W. Moelchert, Jr., Trustee
J. Garnett Nelson, Trustee
Troy A. Peery, Jr., Trustee
Peter J. Quinn, Jr., Trustee
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>
-------------------------
Cash Resource Trust
Bulk Rate
901 East Byrd Street
U.S. Postage
Richmond, VA 23219
PAID
(800) 869-6042
Richmond, Virginia
Permit No. 1209
-------------------------
[MENTOR LOGO]
Cash Resource Trust
-------------------------------------
SEMI-ANNUAL REPORT
-------------------------------------
January 31, 1998
[EVEREN LOGO]
<PAGE>
-------------------------
Cash Resource Trust
Bulk Rate
901 East Byrd Street
U.S. Postage
Richmond, VA 23219
PAID
(800) 869-6042
Charlotte, NC
Permit No. 136
-------------------------
[MENTOR LOGO]
Cash Resource Trust
-------------------------------------
SEMI-ANNUAL REPORT
-------------------------------------
January 31, 1998
[WHEAT FIRST UNION LOGO]
SECURITIES: NOT FDIC-INSURED/NOT BANK-GUARANTEED
MAY LOSE VALUE
MK1134
<PAGE>
-------------------------
Cash Resource Trust
Bulk Rate
901 East Byrd Street
U.S. Postage
Richmond, VA 23219
PAID
(800) 869-6042
Charlotte, NC
Permit No. 136
-------------------------
[MENTOR LOGO]
Cash Resource Trust
-------------------------------------
SEMI-ANNUAL REPORT
-------------------------------------
January 31, 1998
[WFS CLEARING SERVICES LOGO]
MK1137
<PAGE>
-------------------------
Cash Resource Trust
Bulk Rate
901 East Byrd Street
U.S. Postage
Richmond, VA 23219
PAID
(800) 869-6042
Richmond, Virginia
Permit No. 1209
-------------------------
Cash Resource Trust
-------------------------------------
SEMI-ANNUAL REPORT
-------------------------------------
January 31, 1998
[MENTOR LOGO]
