[PICTURE OF MONEY]
MENTOR
CASH RESOURCE TRUST
ANNUAL REPORT
JULY 31, 1998
<PAGE>
TO OUR SHAREHOLDERS:
On behalf of Mentor Investment Advisors and our associates, we would
like to take this opportunity to thank you for your investment in Cash
Resource Trust (CRT). This Annual Report reaffirms our commitment to our
shareholders and details the financial performance of CRT for the period
ended July 31, 1998.(1)
Founded in 1970, Mentor Investment Group is an investment advisory firm
with more than $13 billion under management. We pride ourselves on a strong
heritage of providing quality service and a variety of investment choices that
help meet our shareholders' financial objectives.
CRT is a part of the diversified family of funds offered by Mentor
Investment Group, LLC,(2) and its successful performance is attributable to a
proven investment formula used extensively by our investment managers. This
formula includes:
Focus--in most money management companies, each investment manager has
multiple responsibilities. At Mentor, our investment managers are singularly
focused on enhancing the value of their portfolios. This means that you can
be assured of a consistent, proven approach to developing a winning financial
strategy.
Opportunities--by offering five separate investment styles in CRT--
Money Market Fund, U.S. Government Money Market Fund, Tax-Exempt Money Market
Fund, California Tax-Exempt Money Market Fund, and New York Tax-Exempt Money
Market Fund--Mentor gives investors the tools for long-term success through
diversification and accommodation of changing investment needs.
CASH RESOURCE TRUST (CRT) AT A GLANCE:
CRT MONEY MARKET FUNDS (FUNDS) ARE INVESTED TO SEEK AS HIGH A RATE OF CURRENT
INCOME CONSISTENT WITH PRESERVATION OF CAPITAL AND MAINTENANCE OF LIQUIDITY.
THE FUNDS ARE MANAGED ACCORDING TO A CONSERVATIVE POLICY THAT PLACES EMPHASIS
ON CREDIT RESEARCH. THE FUNDS' INVESTMENT MANAGERS CAREFULLY REVIEW EACH
INVESTMENT AND WILL NOT SACRIFICE QUALITY TO ATTAIN A HIGHER YIELD. WHILE THE
INVESTMENT 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.
(1) For more information and prospectuses for Cash Resource Trust, please
call us at (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.
(2) Mentor Investment Advisors, LLC is a wholly-owned subsidiary of
Mentor Investment Group, LLC.
<PAGE>
Service--to help serve our shareholders, Mentor has a fully dedicated
Investor Relations Center. Our Investor Relations Coordinators are
professionally trained and licensed to service clients' needs.
Technology--being at the forefront of the most advanced technology
and using the latest analytical tools, our investment managers have the
ability to survey the financial markets and make informed decisions about
where the best place is to invest.
We at Mentor are honored to be a partner in the management of your
money market funds. Mentor Investment Group provides diversified investment
styles and services to over one million shareholders, individuals,
corporations, endowments, foundations, public funds, and municipalities.
To learn more about Mentor, please contact your consultant or us at
(800) 382-0016.
We look forward to making the Mentor formula work for you and to a
mutually beneficial relationship.
Sincerely,
Mentor Investment Advisors, LLC
MANAGERS' OVERVIEW:
The five portfolios of 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.
o CRT Money Market Fund is a diversified portfolio of fixed-income
securities, including commercial paper, bank obligations, and
other short-term investments.
o CRT U.S. Government Money Market Fund is invested exclusively in
securities issued and guaranteed as to principal or interest by the
U.S. Government, its agencies or instrumentalities, and related
repurchase agreements.
o CRT Tax-Exempt Money Market Fund is structured to emphasize income
exempt from federal income tax.
o CRT California Tax-Exempt Money Market Fund is structured to
emphasize income exempt from both federal and California State
income tax.
o CRT New York Tax-Exempt Money Market Fund is structured to
emphasize income exempt from both federal and New York State
income tax.
The year ended July 31, 1998, witnessed remarkable economic and
financial stability in the U.S. The economy remained in a growth pattern
that was just strong enough to keep us moving ahead, yet not so strong
<PAGE>
as to raise the risk of inflation. Consequently, despite record levels of
employment and capacity utilization, the Federal Reserve maintained rates
at levels which have persisted since February 1997.
But around the world, seeds of future turmoil were being sown and as
we enter the new fiscal year, those seeds seem ready to bear a bitter fruit.
It began in Hong Kong in December, when currency problems gave rise to an
economic crisis which quickly spread throughout the region. Amid tumbling
stock markets and near-defaults on debt, Asian economies appeared to be
slowing, raising immediate concerns that weakened demand for U.S. products
in those countries would harm U.S. production and slow U.S. growth.
The initial impact was slight, most notably a decline in interest
rates as it became increasingly unlikely that the Fed would have to raise
rates. Indeed, Fed Chairman Greenspan himself stated that the Fed would remain
"on hold" until the situation clarified. But gradually the impact became more
noticeable, as the trade deficit widened and companies involved in the Asian
trade reported softness. In effect, the Asian crisis did the Fed's job for
them, taking steam out of the economy at a time when an increase in rates
might otherwise have been necessary.
By mid-summer, the Asian situation continued to worsen and concerns
were mounting regarding other world economies such as Russia, Europe and Latin
America. Concrete evidence also began to surface of a slowing U.S. growth rate.
Russia defaulted on its international debt amid growing economic and political
instability. Most major stock markets suffered severe losses and currencies
vacillated. Interest rates in the U.S. declined as our fixed-income markets
were inundated by investment funds from abroad seeking safety. As of this
writing, the world seems in a state of financial turmoil with no one sure of
what the ultimate result will be.
Mentor eliminated its exposure to Japanese issuers a full two years
ago, and has restricted its use of other U.S. dollar-denominated foreign
obligations to a few select, high-quality issuers in such countries as
Canada, Great Britain, Germany and Switzerland. Also, as early as
February of this year, we recognized that the events developing around the
world were likely to prevent the Federal Reserve from raising rates and could
eventually require the Fed to lower rates. Accordingly, we extended our
portfolios to an average maturity of 55-60 days, the outer limit of our normal
range of 30-60 days, and have maintained that position through the balance of
the fiscal year. Through this time of turmoil, we pledge continued emphasis on
safety and liquidity through high credit standards and conservative
investment policies.
The Cash Management Team
September 1998
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED SECURITIES - 2.88%
Asset-Backed Securities Investment Trust
Series 1997, 5.66%, 10/15/98 (b) (a) $50,000 $ 50,000
Triangle Funding Ltd., 5.66%, 11/15/98 (b) (a) (d) 60,000 60,000
- ----------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES 110,000
- ----------------------------------------------------------------------------------
BANK NOTES - 13.96%
Abbey National, North America, 5.88%, 12/22/98 24,000 24,028
Banc One Milwaukee, North America, 5.55%, 1/29/99 50,000 49,988
Banc One Wisconsin, North America, 5.55%, 2/26/99 29,000 28,979
Banc One Wisconsin, North America, 5.74%, 5/11/99 50,000 49,970
Bank of America, 5.55%, 8/21/98 50,000 50,000
Bank of New York, 5.66%, 6/17/99 30,000 29,982
FCC National Bank, 5.74%, 5/07/99 50,000 49,978
First Tennessee Bank, North America, 5.65%, 7/09/99 50,000 49,978
Greenwood Trust Company, 5.56%, 8/25/98 50,000 50,000
Greenwood Trust Company, 5.59%, 9/16/98 50,000 50,000
Harris Trust, 5.53%, 8/12/98 50,000 50,000
Morgan Guaranty Trust, 5.71%, 1/08/99 50,000 49,992
- ----------------------------------------------------------------------------------
TOTAL BANK NOTES 532,895
- ----------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 14.77%
Bankers Trust Company, 5.65%, 1/07/99 50,000 49,990
Bankers Trust Company, 5.69%, 7/27/99 50,000 49,972
Bank of Montreal, 5.57%, 10/16/98 50,000 50,000
Canadian Imperial Bank, 5.54%, 8/14/98 50,000 50,000
Canadian Imperial Bank, 5.70%, 4/13/99 50,000 49,983
Credit Suisse, 5.78%, 4/26/99 50,000 50,000
Deutsche Bank Finance, 5.73%, 4/15/99 50,000 49,983
Deutsche Bank Finance, 5.73%, 4/16/99 40,000 39,986
</TABLE>
3
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT (CONTINUED)
Mellon Bank, 5.57%, 8/03/98 $100,000 $ 100,000
Rabobank Nederland, 5.71%, 4/16/99 49,000 48,994
Societe Generale Inc., 5.75%, 4/15/99 25,000 24,992
- --------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 563,900
- --------------------------------------------------------------------------------------
COMMERCIAL PAPER - 53.49%
AGRICULTURE PRODUCTION - 1.57%
Glencore Finance Ltd., 5.60%, 8/10/98 10,000 9,986
Glencore Finance Ltd., 5.54%, 8/14/98 50,000 49,900
- --------------------------------------------------------------------------------------
Total Agriculture Production 59,886
- --------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 19.75%
Alpine Securitization Corporation, 5.55%, 9/08/98 (a) (d) 7,030 6,989
Alpine Securitization Corporation, 5.54%, 9/10/98 (a) (d) 50,000 49,692
Centric Capital Corporation, 5.55%, 8/18/98 (a) 50,000 49,869
Corporate Receivables Corporation, 5.54%, 8/26/98 50,000 49,807
CXC Inc., 5.54%, 8/11/98 (a) 50,000 49,923
Delaware Funding Corporation, 5.54%, 8/17/98 (a) 50,000 49,877
Greenwich Funding Corporation, 5.55%, 8/17/98 (a) (d) 50,000 49,877
Greenwich Funding Corporation, 5.52%, 8/31/98 (a) (d) 50,000 49,770
International Securitization Corporation, 5.55%, 8/13/98 75,000 74,861
Mont Blanc Capital Corporation, 5.57%, 8/20/98 (a) 50,000 49,853
Mont Blanc Capital Corporation, 5.58%, 8/28/98 (a) 50,000 49,791
Monte Rosa Capital Corporation, 5.59%, 8/28/98 (a) 50,000 49,790
Monte Rosa Capital Corporation, 5.53%, 9/10/98 (a) 75,000 74,539
Windmill Funding Corporation, 5.55%, 8/20/98 (a) 100,000 99,707
- --------------------------------------------------------------------------------------
Total Asset-Backed Securities 754,345
- --------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
COMMERCIAL BANKS - 9.76%
Bankers Trust Company, 5.40%, 10/02/98 $23,500 $ 23,281
Dresdner Bank, 5.51%, 8/04/98 50,000 49,977
Dresdner U.S. Finance, Inc., 5.55%, 8/07/98 50,000 49,954
JP Morgan, 5.51%, 8/19/98 50,000 49,862
Rabobank Nederland, 5.54%, 8/14/98 50,000 49,900
Svenska Handelsbanken, 5.53%, 8/12/98 50,000 49,916
Svenska Handelsbanken, 5.51%, 8/26/98 50,000 49,809
UBS Finance Inc., 5.51%, 8/04/98 50,000 49,977
- ----------------------------------------------------------------------------------
Total Commercial Banks 372,676
- ----------------------------------------------------------------------------------
COMPUTER AND OFFICE EQUIPMENT - 1.31%
IBM Credit Corporation, 5.58%, 8/10/98 50,000 49,930
- ----------------------------------------------------------------------------------
ELECTRIC SERVICES - 0.24%
Rincon Securities, Inc., 5.53%, 8/21/98 9,000 8,972
- ----------------------------------------------------------------------------------
MOTOR VEHICLES AND CAR BODIES - 5.22%
Ford Motor Credit Company, 5.52%, 8/20/98 50,000 49,854
Ford Motor Credit Company, 5.52%, 8/21/98 100,000 99,693
General Motors Acceptance Corporation, 5.53%, 8/19/98 50,000 49,862
- ----------------------------------------------------------------------------------
Total Motor Vehicles and Car Bodies 199,409
- ----------------------------------------------------------------------------------
RENTAL AND LEASING - 3.91%
General Electric Capital Corporation, 5.50%, 9/02/98 50,000 49,755
General Electric Capital Corporation, 5.60%, 9/04/98 50,000 49,735
General Electric Capital Corporation, 5.52%, 9/11/98 50,000 49,686
- ----------------------------------------------------------------------------------
Total Rental and Leasing 149,176
- ----------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
SECURITY BROKERS & DEALERS - 11.73%
Bear Stearns Companies, Inc., 5.54%, 8/27/98 $100,000 $ 99,600
Goldman Sachs Group, 5.69%, 7/13/99 (b) 100,000 100,000
Merrill Lynch, 5.53%, 9/18/98 100,000 99,262
Merrill Lynch, 5.52%, 9/23/98 50,000 49,594
Salomon Smith Barney, 5.54%, 8/07/98 50,000 49,954
Salomon Smith Barney, 5.52%, 10/23/98 50,000 49,364
- -----------------------------------------------------------------------------------
Total Security Brokers & Dealers 447,774
- -----------------------------------------------------------------------------------
TOTAL COMMERICAL PAPER 2,042,168
- -----------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 3.01%
Federal National Mortgage Association,
5.55%, 11/09/98 (b) 100,000 99,992
Student Loan Marketing Association, 5.24%, 8/20/98 (b) 10,000 10,000
Student Loan Marketing Association, 5.25%, 2/22/99 (b) 5,000 5,000
- -----------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 114,992
- -----------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES - 2.06%
Allegheny County Industrial Development,
5.90%, 7/01/27 (b) 6,000 6,000
Barton Health Care, 5.70%, 2/15/25 (b) 4,455 4,455
Carolina Medi-Plan, Inc., 5.64%, 6/01/22 (b) 43,000 43,000
Evans Street Properties, 5.64%, 1/01/08 (b) 3,700 3,700
Massachusetts Nursing Home Tax Adjustable DMD
Health Care, 5.70%, 11/15/13 (b) 6,350 6,350
Mississippi Business Financial Corporation,
5.75%, 1/01/23 (b) 5,000 5,000
Walker & Associates, 5.64%, 7/01/11 (b) 10,000 10,000
- -----------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES 78,505
- -----------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS - 9.59%
Goldman, Sachs & Company
Dated 7/31/98, 5.68%, due 8/03/98, collateralized by various U.S. Government
Agency Securities with total original face value of $238,456, 5.50%-8.00%,
10/01/01- 7/01/28; market value $220,215 $215,897 $ 215,897
Dean Witter
Dated 7/31/98, 5.68%, due 8/03/98, collateralized by various U.S. Government
Agency Securities with total original face value of $249,045, 5.63%-9.25%,
8/03/98-9/15/34; market value $156,051 150,000 150,000
- ----------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 365,897
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $3,808,357) (C)-99.76% 3,808,357
- ----------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.24% 9,348
- ----------------------------------------------------------------------------------
NET ASSETS - 100.00% $3,817,705
- ----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
7
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 59.30%
Federal Farm Credit Bank, 5.70%, 11/03/98 $30,000 $ 30,015
Federal Home Loan Bank
5.40%-5.70%, 9/10/98-7/15/99 307,425 307,349
5.44%-5.52%, 10/20/98-3/25/99 (b) 170,000 169,972
Federal Home Loan Mortgage Corporation
5.42%-5.60%, 8/07/98-4/21/99 275,000 274,124
5.46%, 1/26/99 (b) 85,000 84,971
Federal National Mortgage Association
5.33%-5.63%, 8/14/98-5/06/99 704,340 702,646
5.44%-5.55%, 11/09/98-5/28/99 (b) 246,500 246,421
Student Loan Marketing Association
5.79%, 9/16/98 20,000 19,998
5.26%, 1/13/99-2/08/99 (b) 40,000 40,000
- ----------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 1,875,496
- ----------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 40.33%
Dean Witter
Dated 7/31/98, 5.68%, due 8/03/98, collateralized by
various U.S. Government Agency Securities with total
original face value of $252,336, 5.42%-8.95%,
8/12/98-8/01/37; market value $156,035 150,000 150,000
Goldman, Sachs & Company
Dated 7/31/98, 5.68%, due 8/03/98, collateralized by
various U.S. Government Agency Securities with total
original face value of $666,997, 5.50%-10.50%,
12/01/99-8/01/28; market value $474,549 465,244 465,244
</TABLE>
8
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
J.P. Morgan & Company, Inc.
Dated 7/31/98, 5.68%, due 8/03/98, collateralized by various U.S. Government
Agency Securities with total original face value of $242,756, 6.00%-10.00%,
3/01/13-7/01/28; market value $234,600 $230,000 $ 230,000
J.P. Morgan & Company, Inc. (d)
Dated 7/16/98, 5.56%, due 10/19/98, collateralized by various U.S. Government
Agency Securities with total original face value of $677,175, 8.50%, 5/15/16-
02/15/28; market value $277,482 272,000 272,000
Merrill Lynch (d)
Dated 7/13/98, 5.54%, due 10/13/98, collateralized by various U.S. Government
Agency Securities with total original face value of $302,745, 6.00%-8.00%,
4/01/13- 07/01/28; market value $161,165 158,000 158,000
- -----------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 1,275,244
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $3,150,740) (C)-99.63% 3,150,740
- -----------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.37% 11,637
- -----------------------------------------------------------------------------------
NET ASSETS - 100.00% $3,162,377
- -----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
9
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) - 51.28%
ALABAMA - 2.25%
Montgomery Baptist Medical Center (VHA Alabama, Inc.)
Series B, 3.55%, 12/01/30 $ 5,400 $ 5,400
Stevenson IDRB 3.75%, 6/01/32 3,300 3,300
University of Alabama Board of Trustees Hospital Revenue
Series A, 3.50%, 10/01/07 9,600 9,600
- ------------------------------------------------------------------------------------
18,300
- ------------------------------------------------------------------------------------
CALIFORNIA - 0.86%
Anaheim C.O.P., Series 1993, 2.90%, 8/01/19 3,000 3,000
Chula Vista IDRB (San Diego Gas & Electric),
3.95%, 12/01/21 4,000 4,000
- ------------------------------------------------------------------------------------
7,000
- ------------------------------------------------------------------------------------
COLORADO - 0.67%
Denver City and County MFHB (Seasons Apartments
Project), 3.50%, 10/01/06 5,500 5,500
- ------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.97%
District of Columbia Health Facility (Army Distaff
Foundation), 3.55%, 2/01/21 7,875 7,875
- ------------------------------------------------------------------------------------
GEORGIA - 1.61%
Burke County PCRB (Oglethorpe Power Corporation)
Series A, 3.40%, 1/01/16- 1/01/19 8,100 8,100
Summerville Development Authority (Image Industries),
3.65%, 9/01/17 5,000 5,000
- ------------------------------------------------------------------------------------
13,100
- ------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
IDAHO - 0.77%
Nez Perce County PCRB (Potlatch) Series 1984,
3.50%, 12/01/14 $6,300 $ 6,300
- -------------------------------------------------------------------------------------
ILLINOIS - 4.51%
Chicago (O'Hare International Airport) Series 1988 B,
3.60%, 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 2,450 2,450
Illinois DFA (Flinn Scientific Project) 3.70%, 10/01/15 4,395 4,395
Illinois Student Assistance Loan Revenue Bond Series A,
3.55%, 3/01/06 14,700 14,700
Village of Gurnee Series 1998, 3.70%, 3/01/18 5,600 5,600
- -------------------------------------------------------------------------------------
36,745
- -------------------------------------------------------------------------------------
INDIANA - 2.29%
Fort Wayne Hospital Authority (Parkview Memorial
Hospital) Series B, 3.50%, 1/01/16 8,750 8,750
Indiana Health Facility Finance Authority (Deaconess
Hospital), 3.50%, 1/01/22 9,900 9,900
- -------------------------------------------------------------------------------------
18,650
- -------------------------------------------------------------------------------------
IOWA - 0.61%
Iowa Student Loan Revenue Bond Series B,
3.50%, 12/01/13 5,000 5,000
- -------------------------------------------------------------------------------------
KENTUCKY - 0.31%
Kentucky Higher Education Student Loan Series 1996 A,
3.55%, 6/01/26 2,500 2,500
- -------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- --------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
LOUISIANA - 4.00%
Desoto Parish PCRB (Central Louisiana Electric) Series B,
3.50%, 7/01/18 $7,900 $ 7,900
Louisiana PFA Hospital Revenue (Willis-Knighton Medical
Project), 3.70%, 9/01/23 13,200 13,200
St. James Parish PCRB (Occidental Petroleum),
3.55%, 10/01/18 11,500 11,500
- -----------------------------------------------------------------------------------
32,600
- -----------------------------------------------------------------------------------
MARYLAND - 5.16%
Community Development & Administration (Avalon Lea
Apartments Project), 3.45%, 6/15/26 4,335 4,335
Community Development & Administration (Avalon
Ridge) Series 1997, 3.45%, 6/15/26 11,815 11,815
Maryland State Health & Higher Education, (Helix Health
Hospital) Series A, 3.50%, 7/01/26 7,900 7,900
Maryland State Health & Higher Education, Pooled Loan
Program Series B, 3.55%, 4/01/35 8,000 8,000
Maryland State Health & Higher Education, (Catholic
Health Initiatives) 3.55%, 12/01/15 10,000 10,000
- -----------------------------------------------------------------------------------
42,050
- -----------------------------------------------------------------------------------
MICHIGAN - 1.66%
Michigan State Strategic Fund, 3.60%, 11/01/27 13,500 13,500
- -----------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
NEW HAMPSHIRE - 1.56%
New Hampshire Health and Higher Education (VHA
New England) Series B, D, & G, 3.60%, 12/01/25 $12,725 $12,725
- ---------------------------------------------------------------------------------
NEW MEXICO - 0.25%
Albuquerque Gross Receipts Lodgers Tax Series A,
3.50%, 7/01/22 2,050 2,050
- ---------------------------------------------------------------------------------
NEW YORK - 0.10%
New York State Housing Finance Agency (Normandie
C&I Project), 3.45%, 5/15/15 300 300
Onondaga County IDRB (Southern Container), Series B,
3.50%, 12/01/07 515 515
- ---------------------------------------------------------------------------------
815
- ---------------------------------------------------------------------------------
NORTH CAROLINA - 5.61%
Durham Water & Sewer Utility System Revenue,
3.55%, 12/01/15 4,800 4,800
North Carolina Education Facilities (Duke University
Program) Series A, 3.45%, 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 Community Hospital Baptist
Hospitals, Series B, 3.55%, 6/01/22 32,200 32,200
North Carolina Medical Care Community Hospital Duke
University Hospital, Series A, 3.45%, 6/01/23 1,500 1,500
- ---------------------------------------------------------------------------------
45,700
- ---------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
OHIO - 2.16%
Cuyahoga County Hospital (University of Cleveland
Hospital), 3.55%, 1/01/24 $11,600 $11,600
Ohio State Air Quality Authority (JMG Funding Limited
Partnership) Series A, 3.60%, 4/01/28 6,000 6,000
- ----------------------------------------------------------------------------------
17,600
- ----------------------------------------------------------------------------------
SOUTH CAROLINA - 2.57%
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 - 1.40%
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,
3.40%, 7/02/11 6,800 6,800
- ----------------------------------------------------------------------------------
11,415
- ----------------------------------------------------------------------------------
TEXAS - 4.48%
Calhoun County IDRB (Formosa Plastics Corporation
Project), 3.55%, 11/01/15 28,500 28,500
</TABLE>
14
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- --------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
TEXAS (CONTINUED)
Harris County Health Facility 3.75%, 2/15/27 $3,000 $3,000
Red River Authority Texas PCRB (Southwestern Public
Service), 3.60%, 7/01/16 5,000 5,000
- -----------------------------------------------------------------------------------
36,500
- -----------------------------------------------------------------------------------
VIRGINIA - 4.74%
Arlington County (Ballston Public Parking),
3.60%, 8/01/17 3,300 3,300
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 1995 C,
3.55%, 7/01/23 4,000 4,000
Fairfax County EDA (Kinder Care Learning Centers),
3.70%, 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 1,100 1,100
Lynchburg IDA (VHA Mid-Atlantic) Series G,
3.60%, 12/01/25 500 500
Newport News MFHB (Newport-Oxford Project),
3.60%, 11/01/06 9,700 9,700
Spotsylvania City IDA Residential Care Facilities
(Chancellor Village Project), 3.55%, 10/01/20 4,684 4,684
Tazewell County IDRB (Coal Fillers, Inc.), 3.75%, 1/01/03 800 800
- -----------------------------------------------------------------------------------
38,659
- -----------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- --------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) (CONTINUED)
WASHINGTON - 0.67%
Port of Seattle Washington Sub-Lien Revenue Bonds Series
1997, 3.60%, 9/01/22 $5,500 $ 5,500
- -----------------------------------------------------------------------------------
WEST VIRGINIA - 0.66%
West Virginia State Hospital (VHA Mid-Atlantic) Series G,
3.60%, 12/01/25 5,400 5,400
- -----------------------------------------------------------------------------------
WYOMING - 1.41%
Lincoln County PCRB, 3.65%, 8/01/09 5,000 5,000
Lincoln County PCRB (Exxon), Series 1987 C,
3.70%, 7/01/17 2,500 2,500
Sweetwater County PCRB (Pacific Corporation Project)
Series A, 3.55%, 7/01/15 4,000 4,000
- -----------------------------------------------------------------------------------
11,500
- -----------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 417,934
- -----------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES - 45.48%
ALABAMA - 0.61%
Montgomery Solid Waste 3.65%, 8/05/98 (e) 5,000 5,000
- -----------------------------------------------------------------------------------
ARKANSAS - 0.40%
Arkansas State Development Finance Authority Series D,
4.05%, 3/01/99 3,225 3,225
- -----------------------------------------------------------------------------------
CALIFORNIA - 0.37%
Kern County Board of Education 4.25%, 6/30/99 3,000 3,018
- -----------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- -----------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
FLORIDA - 1.59%
City of Jacksonville TECP Series A, 3.55%, 10/09/98 $3,000 $ 3,000
Orange County Health Facility (Pool Hospital Loan),
3.50%, 9/10/98 10,000 10,000
- --------------------------------------------------------------------------------
13,000
- --------------------------------------------------------------------------------
IDAHO - 1.24%
State of Idaho Series 1998, 4.50%, 6/30/99 10,000 10,079
- --------------------------------------------------------------------------------
ILLINOIS - 3.55%
City of Chicago GO, Equipment Notes, 3.80%,
12/03/98 (e) 4,200 4,200
City of Chicago GO, 3.55%, 2/04/99 (e) 18,000 18,000
Illinois HFA (Rush Presbyterian) Series 1989 A,
3.70%, 9/11/98 (e) 4,600 4,600
Illinois HFA (Alexian Brothers Medical Center), 3.60%,
10/21/98 2,100 2,100
- --------------------------------------------------------------------------------
28,900
- --------------------------------------------------------------------------------
INDIANA - 1.23%
Jasper County PCRB (Northern Indiana Public Services)
Series D, 3.60%, 10/15/98 (e) 5,000 5,000
Jasper County PCRB (Northern Indiana Public Services)
Series D, 3.65%, 11/16/98 (e) 5,000 5,000
- --------------------------------------------------------------------------------
10,000
- --------------------------------------------------------------------------------
KENTUCKY - 1.23%
Kentucky Asset Liability TRANS Series 1998 A,
4.50%, 6/25/99 10,000 10,081
- --------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- --------------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
LOUISIANA - 1.83%
Parish of West Baton Rouge Industrial District No. 3
(Dow Chemical) Series 1985, 3.65%, 9/09/98 (e) $7,000 $ 7,000
Parish of West Baton Rouge Industrial District No. 3
(Dow Chemical) Series 1987, 3.75%, 8/11/98 (e) 7,950 7,950
- -----------------------------------------------------------------------------------
14,950
- -----------------------------------------------------------------------------------
MICHIGAN - 0.99%
Michigan State Strategic Fund (Dow Chemical)
Series 1987, 3.65%, 8/17/98 (e) 8,070 8,070
- -----------------------------------------------------------------------------------
MISSISSIPPI - 0.91%
Jackson County (Chevron) Series 1994, 3.55%, 2/01/99 3,300 3,300
Jackson County (Chevron) Series 1994, 3.55%, 8/03/98 (e) 4,100 4,100
- -----------------------------------------------------------------------------------
7,400
- -----------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.23%
New Hampshire State Series 1998, 3.65%, 9/09/98 10,000 10,000
- -----------------------------------------------------------------------------------
NEW YORK - 1.50%
New York City Water Finance Authority Series 1995 B,
3.50%, 2/16/99 5,000 5,000
New York State Dorm Authority (Sloan Kettering
Memorial), Series 1996 B, 3.60%, 8/11/98 700 700
Westchester County New York TRANS, 3.59%, 12/29/98 6,500 6,500
- -----------------------------------------------------------------------------------
12,200
- -----------------------------------------------------------------------------------
NORTH CAROLINA - 1.23%
North Carolina Eastern Municipal Power Agency Series B,
3.50%, 10/22/98 (e) 10,000 10,000
- -----------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
OHIO - 1.01%
State of Ohio Higher Education Facilities Series 1998 B,
4.50%, 6/01/99 $8,200 $ 8,263
- ----------------------------------------------------------------------------------
OKLAHOMA - 2.61%
Oklahoma City Industrial & Cultural Facility
3.70%, 8/25/98 (e) 15,000 15,000
Oklahoma Water Resources Board 1997 Revenue Bonds,
3.55%, 9/01/98 (e) 6,300 6,300
- ----------------------------------------------------------------------------------
21,300
- ----------------------------------------------------------------------------------
PENNSYLVANIA - 0.61%
Pennsylvania GO TECP Series 1997 A, 3.47%, 8/17/98 5,000 5,000
- ----------------------------------------------------------------------------------
SOUTH CAROLINA - 2.18%
York County PCRB (Duke Power) Series 1990,
3.50%, 9/10/98 1,500 1,500
York County PCRB (Duke Power) Series 1990,
3.50%, 9/10/98 2,200 2,200
York County PCRB (North Carolina Electric Project)
Series 1984 N-6, 3.50%, 9/15/98 (e) 14,045 14,045
- ----------------------------------------------------------------------------------
17,745
- ----------------------------------------------------------------------------------
TEXAS - 11.21%
Brazos Harbor IDB (Dow Chemical Company Project)
Series 1987 B, 3.75%, 8/13/98 (e) 5,000 5,000
Austin Texas TECP Series A, 3.70%, 8/10/98 10,000 10,000
Austin Texas TECP Series A, 3.75%, 8/25/98 9,600 9,600
Houston Texas TECP Series B, 3.55%, 8/25/98 7,000 7,000
Houston Texas TECP Series A, 3.55%, 10/22/98 5,500 5,500
</TABLE>
19
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
TEXAS (CONTINUED)
San Antonio Electric & Gas Systems TECP Series A,
3.45%, 8/13/98 $10,000 $10,000
San Antonio Electric & Gas Systems TECP Series A,
3.45%, 8/28/98 10,000 10,000
Lower Neches Valley Authority (Chevron USA Project),
3.45%, 8/17/98 (e) 4,700 4,700
Texas Public Finance Authority Series B, 3.70%, 9/11/98 5,000 5,000
Texas TRANS Series A, 4.75%, 8/31/98 24,545 24,566
- ----------------------------------------------------------------------------------
91,366
- ----------------------------------------------------------------------------------
UTAH - 3.07%
Davis County School District, 4.00%, 6/30/99 15,000 15,050
State of Utah GO Series 1997 A, 3.75%, 9/30/98 10,000 10,000
- ----------------------------------------------------------------------------------
25,050
- ----------------------------------------------------------------------------------
VERMONT - 0.34%
Vermont EDA TECP Series B, 3.70%, 9/01/98 2,750 2,750
- ----------------------------------------------------------------------------------
VIRGINIA - 3.88%
Chesterfield County IDA Series 1987 B (VEPCO),
3.80%, 9/15/98 (e) 6,000 6,000
City of Norfolk GO Series 1998, 4.25%, 7/01/99 1,715 1,725
Richmond Redevelopment Housing Authority Series 1997
A & B, 4.63%, 8/27/98 (e) 5,000 5,000
Salem Refunding Board 3.60%, 8/01/98 405 405
</TABLE>
20
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
VIRGINIA (CONTINUED)
Virginia GO BANS Series 1997, 3.50%, 8/25/98 $10,000 $10,000
Virginia State PSA School Series I, 4.25%, 8/01/98 500 500
York County IDA PCRB (VEPCO) 3.60%, 8/14/98 (e) 3,000 3,000
York County IDA PCRB (VEPCO) 3.70%, 9/10/98 (e) 5,000 5,000
- ----------------------------------------------------------------------------------
31,630
- ----------------------------------------------------------------------------------
WEST VIRGINIA - 1.97%
West Virginia HDF Interim Financing Notes Series 1997 B,
3.60%, 10/01/98 (d) 1,495 1,495
West Virginia HDF Interim Financing Notes Series 1997 B,
3.65%, 10/01/98 (d) 13,560 13,560
West Virginia HDF GO Notes Series 1997 A,
3.75%, 6/18/99 (e) 1,000 1,000
- ----------------------------------------------------------------------------------
16,055
- ----------------------------------------------------------------------------------
WISCONSIN - 0.25%
Wisconsin State Operating Notes 4.50%, 6/15/99 2,000 2,016
- ----------------------------------------------------------------------------------
WYOMING - 0.44%
Lincoln County Pollution Control 3.60%, 8/20/98 (e) 3,550 3,550
- ----------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 370,648
- ----------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Value (Note 2)
- -------------------------------------------------------------------------
<S> <C> <C>
OTHER - 3.14%
AIM - TFIC Institutional, 3.37%, 8/03/98 $1,951 $ 1,951
PNC Municash, 3.58%, 8/03/98 23,683 23,683
- ----------------------------------------------------------------------
25,634
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (COST $814,216) (C)-99.90% 814,216
- ----------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.10% 841
- ----------------------------------------------------------------------
NET ASSETS - 100.00% $815,057
- ----------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
22
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) - 41.14%
Anaheim C.O.P. 1993 Refunding Project, 2.90%, 8/01/19 $ 600 $ 600
CA HFA Revenue Bond (Adventist Health) Series A,
2.95%, 8/01/21 3,500 3,500
CA HFA Revenue Bond (Health Facilities), Series B,
3.45%, 7/01/09 4,200 4,200
CA PCRB (OMS Equity Stanislaus Project)
3.25%, 12/01/17 1,000 1,000
CA PCRB (Contra Costa Waste Service) Series A,
3.05%, 12/01/10 1,900 1,900
CA PCRB (Sanger Project) Series A, 3.00%, 9/01/20 3,000 3,000
CA PCRB (Southern California Pollution Control)
Series 1986 D 3.90%, 2/28/08 2,000 2,000
CA PCRB Solid Waste Disposal (Western Waste) Series A,
3.43%, 12/01/00 2,200 2,200
Corona MFHB (Country Hills Project) Series B,
3.10%, 2/01/20 3,000 3,000
Fremont MFHB (Creekside Village Apartments) Series D,
2.95%, 9/01/07 4,700 4,700
Irvine Public Facilities Capital Improvement,
3.00%, 11/01/10 3,300 3,300
Los Angeles County Pension Obligation Series C,
2.90%, 6/30/07 3,900 3,900
Puerto Rico Highway, 3.15%, 7/01/28 1,800 1,800
Redlands C.O.P. (Sewer Facilities), 2.95%, 9/01/17 1,080 1,080
San Francisco City & County MFHB (Rincon Center
Project) Series B, 3.10%, 12/01/06 990 990
Southern California Public Power Authority Power Project
Revenue Bonds 1996 Series C, 2.90%, 7/01/17 2,200 2,200
- -----------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 39,370
- -----------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES - 43.95%
CA PCRB (Pacific Gas & Electric)
Series 1996 D, 3.60%, 9/08/98 (e) $6,500 $ 6,500
CA PCRB (Pacific Gas & Electric)
Series 1996 Series E, 3.40%, 10/09/98 (e) 2,000 2,000
CA PCRB (Pacific Gas & Electric)
Series 1996 D, 3.30%, 10/13/98 (e) 3,000 3,000
City of San Diego IDRB (San Diego Gas & Electric) Series
1995 A, 3.35%, 10/13/98 (e) 2,000 2,000
Kern County Board of Education 4.25%, 6/30/99 4,000 4,024
Los Angeles County Metropolitan, 3.35%, 8/14/98 2,000 2,000
Los Angeles County Metropolitan Transportation
Authority TECP, 3.30%, 9/04/98 2,000 2,000
Los Angeles City Department of Water & Power TECP,
3.60%, 8/11/98 1,100 1,100
Los Angeles City TRANS, 4.00%, 6/30/99 4,000 4,016
Los Angeles USD TRANS Series A, 4.50%, 7/01/99 2,000 2,017
Sacramento City Financing Authority BANS Series A,
3.55%, 12/15/98 3,500 3,500
Sacramento Municipal Utilities TECP, 3.35%, 9/09/98 3,000 3,000
San Diego Unified Port Series B, 3.40%, 10/21/98 4,000 4,000
State of California, 3.40%, 9/01/98 2,900 2,900
- ----------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 42,057
- ----------------------------------------------------------------------------------
OTHER - 14.65%
California Money Fund, 3.14%, 08/03/98 14,023 14,023
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $95,450) (C)-99.74% 95,450
- ----------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.26% 248
- ----------------------------------------------------------------------------------
NET ASSETS - 100.00% $95,698
- ----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
24
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE TAX-EXEMPT
DEMAND SECURITIES (B) - 33.16%
NY City GO Bonds 1995 Series B-7, 3.70%, 8/15/18 $ 200 $ 200
NY City Health & Hospital (Health Systems) Series A,
3.60%, 2/15/26 400 400
NY City Housing Development MFHB (Columbus
Apartments) Series A, 3.45%, 3/15/25 300 300
NY City Housing Development (East 17th Street Property)
Series 1993 A, 3.70%, 1/01/23 400 400
NY City Housing Development (Tribeca Towers)
Columbus Gardens 1993 A, 3.35%, 2/01/07 200 200
NY City Cultural Resource Revenue, 3.60%, 12/01/10 200 200
NY State Dorm Authority Metropolitan Museum Series A,
3.40%, 7/01/15 290 290
NY State Energy R & D Authority PCRB Series B,
3.70%, 12/01/25 300 300
NY State Energy R & D Electric Facility Series B,
3.45%, 11/01/23 400 400
NY State (LGAC) Series C, 3.45%, 4/01/25 400 400
NY State Medical Care (Pooled Equipment Loan
Program II) Series A, 3.45%, 11/01/03 280 280
NY State Medical Care (Pooled Equity Loan Program I)
3.45%, 11/01/15 200 200
Niagara County NY IDA Solid Waste Disposal, 1996 D
(American Refueling Company) 3.65%, 11/15/26 400 400
Niagara Falls Toll Revenue Series A, 3.35%, 10/01/19 300 300
St. Lawrence County NY IDA (Reynolds Metals)
Series 1985, 3.70%, 12/01/07 200 200
Suffolk County Water Authority BANS, 3.45%, 2/08/01 300 300
Triborough Bridge and Tunnel Authority Special
Obligation, 3.35%, 1/01/24 300 300
- ----------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 5,070
- ----------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------
<S> <C> <C>
OTHER TAX-EXEMPT SECURITIES - 53.37%
Half Hollow Hills CSD, 3.90%, 6/25/99 $ 400 $ 401
Monroe County NY GO 1997, 3.70%, 9/10/98 (e) 500 501
Muni Assistance Corporation
Series F, 3.70%, 8/12/98 (e) 500 500
Muni Assistance Corporation, 3.50%, 9/08/98 300 300
Nassau County BANS Series A, 4.25%, 8/17/98 500 500
Monroe County NY GO Series A, 4.90%, 6/01/99 300 303
NY Dormitory Authority (Sloan Kettering Cancer Center)
1989 B, TECP, 3.65%, 9/15/98 (e) 400 400
NY Dormitory Authority (Sloan Kettering Cancer Center)
Series 1996, TECP, 3.60%, 8/11/98 800 800
NY Dormitory Authority (Columbia University),
4.25%, 7/01/99 250 251
NY State Environmental Solid Waste Disposal,
(GE Project) Series 1992A, 3.55%, 8/10/98 (e) 300 300
NY State Thruway Authority Series A, 4.40%, 3/01/99 500 502
NY City GO TECP Series J, J-2, 3.50%, 8/20/98 300 300
NY State Power Authority TECP, 3.65%, 8/03/98 500 500
Puerto Rico GDB TECP, 3.50%, 8/19/98 400 400
Puerto Rico GDB TECP, 3.70%, 8/26/98 400 400
Sachem CSD (Holbrook) Series 1997-98 TANS,
3.80%, 6/25/99 300 301
South Huntington NY UFSD, 3.90%, 6/30/99 500 501
Westchester County Health TECP, 3.50%, 11/12/98 500 500
Westchester County TANS, 3.59%, 12/29/98 500 500
- ---------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 8,160
- ---------------------------------------------------------------------------------
OTHER - 13.03%
PNC NYCash, 3.32%, 8/03/98 $1,993 $ 1,993
- ---------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $15,223) (C)-99.56% 15,223
- ---------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.44% 67
- ---------------------------------------------------------------------------------
NET ASSETS - 100.00% $15,290
- ---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
26
<PAGE>
CASH RESOURCE TRUST
NOTES TO PORTFOLIOS OF INVESTMENTS
JULY 31, 1998
- --------------------------------------------------------------------------------
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 unless otherwise noted.
(b) Floating Rate Securities - The rates shown are the effective rates at July
31, 1998.
(c) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are approximately the same.
(d) These securities are deemed illiquid because they can not be resold within
seven business days from July 31, 1998.
(e) These bonds have put features which provide the right to sell the bond at
specific tender dates prior to final maturity. The put features shortens the
effective maturity to the next tender date.
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
HDF - Housing Development Fund
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
PSA - Public School Authority
R&D - Research and Development
TANS - Tax Anticipation Notes
TECP - Tax-Exempt Commercial Paper
TRANS - Tax and Revenue Anticipation Notes
UFSD - Unified Free School District
VEPCO - Virginia Electric Power Company
VHA - Veteran Housing Authority
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1998
(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> <C> <C> <C> <C>
ASSETS
Investments, at amortized
cost (Note 2)
Investment securities $ 3,442,460 $ 1,875,496 $ 814,216 $ 95,450 $ 15,223
Repurchase agreements 365,897 1,275,244 - - -
- -------------------------------------------------------------------------------------------------------
Total investments 3,808,357 3,150,740 814,216 95,450 15,223
Receivables
Dividends and interest 16,953 18,473 5,203 305 86
Fund shares sold 808 119 134 12 -
Organizational costs,
net (Note 2) 11 46 1 5 2
Other 348 497 - 92 10
- -------------------------------------------------------------------------------------------------------
Total assets 3,826,477 3,169,875 819,554 95,864 15,321
- -------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Investments purchased - - 3,300 - -
Fund shares redeemed - - 152 - -
Dividends 8,072 6,625 1,027 104 19
Accrued expenses and other
liabilities 700 873 18 62 12
- -------------------------------------------------------------------------------------------------------
Total liabilities 8,772 7,498 4,497 166 31
- -------------------------------------------------------------------------------------------------------
NET ASSETS $ 3,817,705 $ 3,162,377 $ 815,057 $ 95,698 $ 15,290
- -------------------------------------------------------------------------------------------------------
Net Asset Value per Share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Shares Outstanding 3,817,735 3,162,377 815,060 95,698 15,290
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED JULY 31, 1998
(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> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 185,696 $ 174,186 $ 28,575 $ 3,342 $ 445
- -----------------------------------------------------------------------------------------------------
EXPENSES
Distribution fee (Note 3) 12,419 11,802 2,598 319 63
Management fee (Note 3) 5,852 5,608 1,675 213 28
Transfer agent fee (Note 3) 5,486 4,437 499 76 4
Registration expenses 1,896 1,536 442 65 9
Custodian and accounting
fees (Note 3) 727 759 199 33 8
Shareholder reports and
postage expenses 356 296 66 8 1
Administrative service
fees (Note 3) 242 214 54 6 1
Directors' fees and expenses 75 68 19 2 -
Legal fees 72 66 18 2 1
Audit fees 73 66 18 2 -
Organizational expenses 27 128 34 2 -
Miscellaneous 89 80 22 3 1
- -----------------------------------------------------------------------------------------------------
Total expenses 27,314 25,060 5,644 731 116
- -----------------------------------------------------------------------------------------------------
Deduct
Waiver of distribution fee - - - - 15
- -----------------------------------------------------------------------------------------------------
Net expenses 27,314 25,060 5,644 731 101
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 158,382 149,126 22,931 2,611 344
- -----------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $ 158,382 $ 149,126 $ 22,931 $ 2,611 $ 344
- -----------------------------------------------------------------------------------------------------
</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
------------------------------- ----------------------------------
Year Ended Year Ended Year Ended Year Ended
7/31/98 7/31/97 7/31/98 7/31/97
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INCREASE IN NET ASSETS
OPERATIONS
Net investment income $ 158,382 $ 101,298 $ 149,126 $ 111,580
Net realized gain (loss) on
investments sold - (30) - 60
- -----------------------------------------------------------------------------------------------------
Increase in net assets
resulting from
operations 158,382 101,268 149,126 111,640
- -----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (158,382) (101,298) (149,126) (111,580)
Net realized gain on
investments - - (7) -
- -----------------------------------------------------------------------------------------------------
Net decrease from
distributions (158,382) (101,298) (149,133) (111,580)
- -----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
(AT $1.00 PER SHARE)
Proceeds from sale of shares 16,482,466 11,609,162 13,879,934 11,304,514
Reinvested distributions 156,446 96,439 148,626 108,221
Shares redeemed (15,762,812) (9,410,466) (13,784,887) (9,896,481)
- -----------------------------------------------------------------------------------------------------
Net change in net assets
resulting from capital
share transactions 876,100 2,295,135 243,673 1,516,254
- -----------------------------------------------------------------------------------------------------
Total increase in net assets 876,100 2,295,105 243,666 1,516,314
NET ASSETS
Beginning of period 2,941,605 646,500 2,918,711 1,402,397
- -----------------------------------------------------------------------------------------------------
End of period $ 3,817,705 $ 2,941,605 $ 3,162,377 $ 2,918,711
- -----------------------------------------------------------------------------------------------------
</TABLE>
* For the period from December 9, 1996 (commencement of operations) to July 31,
1997.
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
<TABLE>
<CAPTION>
Tax-Exempt California Tax-Exempt New York Tax-Exempt
Money Market Fund Money Market Fund Money Market Fund
- -----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Period Ended Year Ended Period Ended
7/31/98 7/31/97 7/31/98 7/31/97* 7/31/98 7/31/97*
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 22,931 $ 17,851 $ 2,611 $ 1,480 $ 344 $ 138
- - - - - -
- -----------------------------------------------------------------------------------------------------
22,931 17,851 2,611 1,480 344 138
- -----------------------------------------------------------------------------------------------------
(22,931) (17,851) (2,611) (1,480) (344) (138)
- - - - - -
- -----------------------------------------------------------------------------------------------------
(22,931) (17,851) (2,611) (1,480) (344) (138)
- -----------------------------------------------------------------------------------------------------
3,375,194 2,957,235 412,868 336,910 68,863 40,518
22,879 17,229 2,616 1,372 340 123
(3,326,630) (2,521,741) (409,218) (248,850) (65,984) (28,570)
- -----------------------------------------------------------------------------------------------------
71,443 452,723 6,266 89,432 3,219 12,071
- -----------------------------------------------------------------------------------------------------
71,443 452,723 6,266 89,432 3,219 12,071
743,614 290,891 89,432 - 12,071 -
- -----------------------------------------------------------------------------------------------------
$ 815,057 $ 743,614 $ 95,698 $ 89,432 $ 15,290 $ 12,071
- -----------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market Fund
---------------------------------------------------------------------------------
Year Year Year Year Period
Ended Ended Ended Ended Ended
7/31/98 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 0.048 0.047** 0.050 0.050** 0.020
DISTRIBUTIONS
Net investment income (0.048) (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 4.95 % 4.77 % 4.91 % 4.97 % 1.83%(b)
- -----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $3,817,705 $2,941,605 $646,500 $ 422,657 $ 192,260
Ratio of expenses to
average net assets 0.84 % 0.86 % 0.82 % 0.82 % 0.89%(a)
Ratio of expenses to
average net assets
excluding waivers 0.84 % 0.86 % 0.82 % 0.82 % 0.93%(a)
Ratio of net investment
income to average net
assets 4.84 % 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 less than $0.001 per
share.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
- -------------------------------------------------------------------------------------------
Year Year Year Year Period
Ended Ended Ended Ended Ended
7/31/98 7/31/97 7/31/96 7/31/95 7/31/94*
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
0.048 0.046** 0.050 0.050** 0.020
(0.048)** (0.046) (0.050) (0.050) (0.020)
- --------------------------------------------------------------------------------------------
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- --------------------------------------------------------------------------------------------
4.92% 4.72 % 4.74 % 4.82 % 1.82%(b)
- --------------------------------------------------------------------------------------------
$3,162,377 $2,918,711 $1,402,397 $1,216,690 $ 907,819
0.81% 0.81 % 0.93 % 0.88 % 0.80%(a)
0.81% 0.81 % 0.93 % 0.88 % 0.83%(a)
4.80% 4.63 % 4.63 % 4.75 % 2.91%(a)
- --------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Tax-Exempt
Money Market Fund
-----------------------------------------------------------------------------------
Year Year Year Year Period
Ended Ended Ended Ended Ended
7/31/98 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 0.029 0.029 0.030 0.030** 0.010
DISTRIBUTIONS
Net investment income (0.029) (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 2.96 % 2.91 % 2.90 % 3.05 % 1.16%(b)
- ---------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $815,057 $743,614 $290,891 $266,895 $ 195,702
Ratio of expenses to average
net assets 0.71 % 0.71 % 0.76 % 0.72 % 0.65%(a)
Ratio of expenses to average
net assets excluding
waivers 0.71 % 0.71 % 0.76 % 0.74 % 0.74%(a)
Ratio of net investment
income to average net
assets 2.91 % 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 less than $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
- -------------------------------------------------------------------------
Year Period Year Period
Ended Ended Ended Ended
7/31/98 7/31/97*** 7/31/98 7/31/97***
- -------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1.000 $ 1.000 $ 1.000 $ 1.000
0.027 0.017 0.027 0.018
(0.027) (0.017) (0.027) (0.018)
- -------------------------------------------------------------------------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
- -------------------------------------------------------------------------
2.74% 1.76 %(b) 2.76 % 1.77 %(b)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
$ 95,698 $ 89,432 $ 15,290 $ 12,071
0.75% 0.75 %(a) 0.80 % 0.80 %(a)
0.75% 0.75 %(a) 0.92 % 1.04 %(a)
2.70% 2.70 %(a) 2.72 % 2.77 %(a)
- -------------------------------------------------------------------------
</TABLE>
35
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
JULY 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 July 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 the Money Market Fund and the U.S. Government Fund
is to seek current income consistent with preservation of capital and
maintenance of liquidity. The investment objective of each of the other Funds is
to seek current income exempt from federal income tax (and, in the case of the
California Tax-Exempt Fund, California personal income tax, or, in the case of
the New York Tax-Exempt Fund, New York State and City personal income taxes)
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.
36
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(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 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, if any,
should be initiated.
(b) Repurchase Agreements
It is the policy of the Trust to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book entry system, or to have
segregated within the custodian bank's vault all securities held as collateral
in support of repurchase agreement investments. Additionally, procedures have
been established by the Trust to monitor, on a daily basis, the market value of
each repurchase agreement's underlying securities to ensure the existence of a
proper level of collateral.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions such as broker/dealers which are deemed by the
Trust's adviser to be creditworthy pursuant to guidelines established by the
Board of Trustees. Risks may arise from the potential inability of
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.
37
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(d) Expenses
Expenses arising in connection with a Fund are generally allocated to that Fund.
Other Trust expenses are allocated among the Funds in proportion to their
relative net assets.
(e) Fund Share Valuation and Dividends to Shareholders
Fund shares are sold and redeemed on a continual basis at net asset value. The
net asset value per share (NAV) of each Fund is determined daily as of 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. Dividends for the immediately preceding month will be paid on the fifteenth
day of each calendar month. Distributions from net realized capital gains, if
any, are paid annually.
(f) Federal Income Taxes
No provision for federal income taxes has been made since it is each Fund's
policy to comply with the provisions applicable to regulated investment
companies under the Internal Revenue Code and to distribute to its shareholders
within the allowable time limit substantially all taxable income and realized
capital gains.
At July 31, 1998, Money Market Fund for federal tax purposes, had a capital loss
carryforward of approximately $30,000. Pursuant to the Code, such capital loss
carryforwards expire in 2006.
(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.
38
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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 ("EVEREN") 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.
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 year ended July 31, 1998, Mentor Advisors earned
the following advisory fees:
<TABLE>
<CAPTION>
Management Fee
Earned
- -------------------------------------------------------------------------
<S> <C>
Money Market Fund $ 5,851,896
U.S. Government Fund 5,608,046
Tax-Exempt Fund 1,674,645
California Tax-Exempt Fund 212,584
New York Tax-Exempt Fund 27,842
- -------------------------------------------------------------------------
</TABLE>
Effective April 1, 1998, Administrative personnel and services are provided by
Mentor, under an Administration Agreement, at an annual rate of 0.02% of the
average daily net assets of each Fund. For the year ended July 31, 1998, Mentor
earned the following fees:
39
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
<TABLE>
<CAPTION>
Administrative Fee
Earned
- -------------------------------------------------------------------------
<S> <C>
Money Market Fund $ 242,526
U.S. Government Fund 213,936
Tax-Exempt Fund 53,894
California Tax-Exempt Fund 6,402
New York Tax-Exempt Fund 1,024
- -------------------------------------------------------------------------
</TABLE>
Prior to April 1, 1998, the Funds provided 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 year ended July 31, 1998, the Money Market Fund, U.S. Government Fund,
Tax-Exempt Fund, California Tax-Exempt Fund and New York Tax-Exempt Fund paid
$217,676, $214,342, $52,686, $6,479, $852, 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., acts as a 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
40
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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 and 0.33% in the case of Tax-Exempt 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 and EVEREN (from IFTC's own assets) for related services
provided by Wheat and EVEREN directly to their clients. For the year ended July
31, 1998, Wheat and EVEREN earned the following fees:
<TABLE>
<CAPTION>
EVEREN Wheat
- -------------------------------------------------------------------------
<S> <C> <C>
Money Market Fund $ 3,593,218 $1,892,611
U.S. Government Fund 2,905,991 1,530,637
Tax-Exempt Fund 326,664 172,060
California Tax-Exempt Fund 49,990 26,330
New York Tax-Exempt Fund 2,358 1,242
- -------------------------------------------------------------------------
</TABLE>
NOTE 4: CONCENTRATION OF CREDIT RISK
California Tax-Exempt Fund and New York Tax-Exempt Fund invest in obligations
issued by the States of California and New York and by their political
subdivisions and duly constituted authorities. The issuers' abilities to meet
their obligations may be affected by economic and political developments in the
States of California and New York. Certain debt obligations held by each of the
Funds in the Trust are entitled to the benefits of insurance, standby letters of
credit or other guarantees of banks or other financial institutions.
41
<PAGE>
CASH RESOURCE TRUST
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES
CASH RESOURCE TRUST
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments as of July 31, 1998, 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), the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the years or periods in the two-year period then ended
and financial highlights for CRT Money Market Fund, CRT U.S. Government Money
Market Fund and CRT Tax-Exempt Money Market Fund for the four year period then
ended and for the period from December 20, 1993 (commencement of operations) to
July 31, 1994 and for CRT California Tax-Exempt Money Market Fund and CRT New
York Tax-Exempt Money Market Fund for the year then ended and for the period
from December 9, 1996 (commencement of operations) to July 31, 1997. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements and financial highlights. Our procedures included
confirmation of securities owned as of July 31, 1998 by correspondence with the
custodian and brokers. 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 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, 1998, the results of their
operations, the changes in their net assets and financial highlights for each of
the years or periods indicated in the first paragraph above, in conformity with
generally accepted accounting principles.
[COMPANY SIGNATURE]
Boston, Massachusetts
September 11, 1998
42
<PAGE>
CASH RESOURCE TRUST
ADDITIONAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
YEAR 2000 (UNAUDITED)
The Funds receive services from a number of providers which rely on the
effective functioning of their respective systems and the systems of others to
perform those services. It is generally recognized that certain systems in use
today may not be able to perform their intended functions effectively after 1999
because of the inability of computer software to distinguish the year 2000 from
the year 1900. Mentor Advisors is taking steps that it believes are reasonably
designed to address this potential year 2000 problem and to obtain satisfactory
assurances that comparable steps are being taken by the Funds' other major
service providers. There can be no assurance, however, that these steps will be
sufficient to avoid any adverse impact on the Funds from this problem.
FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED)
100% of the dividends distributed by the CRT Tax-Exempt Money Market Fund, CRT
California Tax-Exempt Money Market Fund and CRT New York Tax-Exempt Money Market
Fund for the year ended July 31, 1998 are exempt from federal income tax, other
than alternative minimum tax.
The CRT U.S. Government Money Market Fund designates $5,629 as 28% capital gain
distributions for the fiscal year ended July 31, 1998.
43
<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
Geoffrey B. Sale, SECRETARY
Associate Vice President
Mentor Investment Group, LLC
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>
[PICTURE OF BOARD OF DIRECTORS]
MENTOR INVESTMENT ADVISORS BOARD OF DIRECTORS
from left, seated: Danny Ludeman, Paul Costello, Karen Wimbish, Peter Quinn
standing: Ted Price, John Davenport, Preston Nuttall, Michael Jones
MENTOR FAMILY OF FUNDS
The Mentor family of funds is part of Mentor Investment Group, an asset
management firm providing multiple investment styles and services to a broad
range of investors. For more information regarding Mentor investments, please
contact your consultant.
BALANCED
Mentor Balanced Portfolio
Mentor Income and Growth Portfolio
EQUITY-DOMESTIC
Mentor Capital Growth Portfolio
Mentor Growth Portfolio
EQUITY-INTERNATIONAL/GLOBAL
Mentor Perpetual Global Portfolio
Mentor Perpetual International Portfolio
FIXED INCOME
Mentor Fixed Income Portfolio
Mentor High Income Portfolio
Mentor Income Fund
Mentor Municipal Income Portfolio
Mentor Quality Income Portfolio
Mentor Short Duration Income Portfolio
TAX ADVANTAGED-VARIABLE ANNUITIES
Mentor VIP Capital Growth Portfolio
Mentor VIP Growth Portfolio
Mentor VIP International Portfolio
[MENTOR INVESTMENT GROUP LOGO]
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[MENTOR INVESTMENT GROUP LOGO]
CASH RESOURCE TRUST
901 EAST BYRD STREET
RICHMOND, VA 23219
(800) 382-0016
MK1040 9/98
