CASH RESOURCE TRUST
SEMI-ANNUAL REPORT
JANUARY 31, 1999
- --------------------------------------------------------------------------------
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, 1999.* 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 $15.5 billion under management. Mentor
provides investment management in six 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 CRT 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 IS A WHOLLY OWNED SUBSIDIARY OF MENTOR
INVESTMENT GROUP, LLC.
1
<PAGE>
CASH RESOURCE TRUST SEMI-ANNUAL REPORT
MANAGERS' OVERVIEW
JANUARY 31, 1999
- --------------------------------------------------------------------------------
MARKET REVIEW
Given the nature and extent of the negative influences coming to bear, the
performance of the U.S. economy and financial markets over the past six months
can only be considered remarkable. We have witnessed the collapse or near-
collapse of several major world economies, including Japan and Russia. Indeed,
Russia defaulted on its debt and only a rescue by the International Monetary
Fund prevented defaults by other sovereign debt issuers. The world's financial
system clearly was placed under severe strain. We have also witnessed an
ongoing military confrontation between the U.S. and Iraq, and have suffered
through a major governmental scandal in this country culminating in the
impeachment of our President.
Despite these hostile factors, and despite an expansion which was already
setting longevity records, our economy remained on a remarkably even keel
throughout the period. Activity continued to forge ahead at a pace adequate to
keep employment and capacity utilization at very high levels, yet not so rapid
as to give rise to inflation. Early in 1998, the Federal Reserve stood poised
to raise rates as a preventive measure against an outbreak of inflation, but as
the year progressed and the threat from weak overseas economies grew, the Fed's
position shifted to one of ease. During the fall months the Fed lowered rates
three times by 0.25%, or a total of 0.75%. As of this writing, the medicine
seems to be having the desired effect, for current indicators show continued
strength with little or no evidence of the "Asian flu."
Like the other U.S. financial markets, the money markets turned in a strong
performance for the six months, led by U.S. Treasuries. Early on, this strength
was primarily a function of a flight to quality as investors sought the safety
of short maturities, especially short U.S. Governments. During this time,
spreads between Treasuries and other instruments widened significantly. Adding
to the strength was a growing feeling that the Fed would eventually have to
ease rates in response to the international crisis. Later, when the Fed did
indeed assume a policy of ease, rates on all money market instruments dropped
accordingly. Perhaps
2
<PAGE>
CASH RESOURCE TRUST SEMI-ANNUAL REPORT
MANAGERS' OVERVIEW (CONTINUED)
JANUARY 31, 1999
- --------------------------------------------------------------------------------
reflecting a slowdown in the flight to quality, Treasuries did not drop as
much, so that their spread over other instruments narrowed somewhat. We ended
the period about 0.75% lower than where we began, with about half that
occurring in the past three months.
MANAGEMENT STRATEGY
It is our normal policy to manage the money market funds to an average maturity
range between 30 and 60 days. Early in the period, we recognized that it was
unlikely that the Fed would raise rates given what was then occurring around
the world. Indeed, we could see a scenario developing in which the Fed would
have to reduce rates to preserve an acceptable rate of growth in this country.
Accordingly, we adopted a strategy of managing the funds to an average maturity
of 55-60 days, the outer end of our normal range. Commensurate with this was a
decision to tighten our already high quality standards even further,
particularly regarding overseas exposure and specifically exposure to troubled
areas of the world.
PERFORMANCE DISCUSSION AND EXPLANATION
Our money market funds generally performed in the second quartile or high third
quartile among their peer groups as measured in the IBC Donoghue Universe. Our
better relative performers tended to be the government funds, where quality is
more or less a neutral factor among all funds in the universe, and hence our
high quality standards did not penalize us. The poorer performers were the
tax-exempt funds, where the reverse was true. Here, our insistence on high
quality eliminated many issues backed by letters of credit from foreign banks
that were unacceptable to us.
Performance was especially good early in the period, due to our prompt decision
to extend maturities. Around the mid-point, this advantage tended to level out
as other funds also extended maturities. Later, performance once again picked
up as many foreign banks, especially Japanese banks, were downgraded below Tier
I standards, forcing other funds to eliminate them from usage and thus placing
us on a level playing field.
3
<PAGE>
CASH RESOURCE TRUST SEMI-ANNUAL REPORT
MANAGERS' OVERVIEW (CONTINUED)
JANUARY 31, 1999
- --------------------------------------------------------------------------------
Our performance objective is and always has been to provide a competitive
return while maintaining well above-average quality and safety standards. While
we feel we accomplished this goal in 1998, we hope to achieve above average
returns on all our funds during 1999.
MARKET OUTLOOK
We enter the new year at a crossroads. After cutting rates three times during
1998's fourth quarter, the Fed is likely to adopt a wait and see attitude for
at least a while before taking additional steps. Based on recent indications,
the economy appears to be shaking off what at first appeared to be some minor
effects of the world slowdown, and as of now seems to be moving ahead at a
reasonable pace. Also, world economies and markets in general seem to be
entering 1999 on a more stable note. If these factors continue, then the Fed
may well move to a position of neutrality that could continue until
inflationary pressures appear.
In other words, from an outlook for "stable to down" rates, we seem to have
moved a step closer to an outlook for "stable to up" rates. Accordingly, we
have shortened our target average maturity range from 55-60 days to 50-55 days,
and may shorten further if these trends continue.
The Cash Management Team
March 1999
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.
4
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
----------------------- ----------- -------------
<S> <C> <C> <C>
BANK NOTES 9.82%
Banc One Wisconsin, North America, 5.55%,
2/26/99 (e) $ 29,000 $ 28,997
Banc One Wisconsin, North America, 5.74%,
5/11/99 (e) 50,000 49,989
Bank of New York, 5.66%, 6/17/99 (e) 30,000 29,992
FCC National Bank, 5.74%, 5/07/99 (e) 50,000 49,993
First Tennessee Bank, North America, 5.65%,
7/09/99 (e) 50,000 49,990
Harris Trust, 5.00%, 1/27/00 100,000 100,000
Mellon Bank, 4.95%, 7/12/99 50,000 50,000
NationsBank, 4.94%, 7/06/99 100,000 100,000
- ----------------------------------------------------------------------------------------------
TOTAL BANK NOTES 458,961
- ----------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 17.42%
Bank of Montreal, 4.92%, 4/12/99 10,000 10,000
Bank of Montreal, 4.85%, 4/29/99 150,000 150,000
Bankers Trust Company, 5.69%, 7/27/99 (e) 50,000 49,986
Canandian Imperial Bank, 4.89%, 3/12/99 60,000 60,000
Canandian Imperial Bank, 5.70%, 4/13/99 (e) 50,000 49,995
Credit Suisse, 5.78%, 4/26/99 (e) 50,000 50,000
Deutsche Bank Finance, 4.92%, 4/12/99 60,000 60,000
Deutsche Bank Finance, 5.73%, 4/15/99 (e) 50,000 49,995
Deutsche Bank Finance, 5.73%, 4/16/99 (e) 40,000 39,996
First Tennessee Bank, North America, 4.90%,
3/12/99 50,000 50,000
Mellon Bank, 5.25%, 2/03/99 100,000 100,000
Rabobank Nederland, 5.71%, 4/16/99 (e) 49,000 48,998
Rabobank Nederland, 5.70%, 4/20/99 70,000 70,019
Societe Generale Inc., 5.75%, 4/15/99 (e) 25,000 24,998
- ----------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 813,987
- ----------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER 42.58%
AGRICULTURE PRODUCTION 2.14%
Glencore Finance Limited, 5.40%, 2/12/99 (e) $ 50,000 $ 49,918
Glencore Finance Limited, 5.43%, 2/12/99 (e) 50,000 49,917
- -------------------------------------------------------------------------------------------------
Total Agriculture Production 99,835
- -------------------------------------------------------------------------------------------------
ASSET-BACKED SECURITIES 22.30%
Centric Capital Corporation, 5.45%, 2/01/99 (a) 50,000 50,000
Corporate Receivables Corporation, 5.27%,
2/05/99 (e) 80,000 79,952
Delaware Funding Corporation, 4.88%,
2/16/99 (a)(e) 100,000 99,797
General Electric Company, 4.82%, 2/26/99 (e) 50,000 49,833
International Securitization Corporation,
4.92%, 2/04/99 (e) 50,000 49,980
International Securitization Corporation,
4.89%, 2/16/99 (e) 100,000 99,796
Monte Rosa Capital Corporation, 4.85%,
3/01/99 (a)(e) 25,000 24,906
Monte Rosa Capital Corporation, 4.87%,
3/11/99 (a)(e) 70,000 69,640
Monte Rosa Capital Corporation, 4.89%,
3/12/99 (a)(e) 55,000 54,709
Special Purpose Accounts Receivable
Cooperative Corporation, 5.50%, 2/12/99 (e) 50,000 49,916
Special Purpose Accounts Receivable
Cooperative Corporation, 4.87%, 3/08/99 (e) 108,000 107,489
Trident Capital Finance, 4.85%, 3/05/99 (e) 100,000 99,569
Trident Capital Finance, 4.90%, 3/12/99 (e) 57,100 56,797
Windmill Funding Corporation, 4.90%,
2/12/99 (a)(e) 50,000 49,925
</TABLE>
6
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
ASSET-BACKED SECURITIES (CONTINUED)
Windmill Funding Corporation, 4.88%,
2/16/99 (a)(e) $ 50,000 $ 49,898
Windmill Funding Corporation, 4.85%,
3/03/99 (a)(e) 50,000 49,798
- -------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 1,042,005
- -------------------------------------------------------------------------------------------------
COMMERCIAL BANKS 4.09%
Bayerishe Vereinsbank, 4.85%, 4/07/99 (e) 43,000 42,623
J.P. Morgan & Company, Inc., 4.85%, 4/08/99 (e) 50,000 49,555
J.P. Morgan & Company, Inc., 4.87%, 4/12/99 (e) 100,000 99,053
- -------------------------------------------------------------------------------------------------
Total Commercial Banks 191,231
- -------------------------------------------------------------------------------------------------
ELECTRIC SERVICES 0.19%
Rincon Securities, Inc., 4.82%, 4/27/99 (e) 9,000 8,898
- -------------------------------------------------------------------------------------------------
MOTOR VEHICLES AND CAR BODIES 6.39%
Ford Motor Credit Company, 5.11%, 3/01/99 (e) 50,000 49,801
Ford Motor Credit Company, 4.80%, 4/09/99 (e) 100,000 99,107
General Motors Acceptance Corporation,
5.24%, 2/08/99 (e) 50,000 49,949
General Motors Acceptance Corporation,
5.10%, 3/01/99 (e) 100,000 99,603
- -------------------------------------------------------------------------------------------------
Total Motor Vehicles and Car Bodies 298,460
- -------------------------------------------------------------------------------------------------
RENTAL AND LEASING 2.14%
General Electric Capital Corporation,
5.20%, 2/04/99 (e) 100,000 99,957
- -------------------------------------------------------------------------------------------------
SECURITY BROKERS & DEALERS 5.33%
Goldman Sachs Group, 5.10%, 3/09/99 (b)(e) 50,000 49,745
</TABLE>
7
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
SECURITY BROKERS & DEALERS (CONTINUED)
Merrill Lynch, 5.03%, 2/12/99 (e) $100,000 $ 99,846
Morgan Stanley Dean Witter, 4.98%, 2/25/99 (e) 50,000 49,834
Salomon Smith Barney, 5.30%, 2/12/99 (e) 50,000 49,919
- -------------------------------------------------------------------------------------------------
Total Security Brokers & Dealers 249,344
- -------------------------------------------------------------------------------------------------
TOTAL COMMERICAL PAPER 1,989,730
- -------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES 7.57%
Federal Home Loan Mortgage Corporation,
5.05%, 2/10/99 (e) 100,000 99,874
Federal Home Loan Mortgage Corporation,
4.99%, 3/05/99 (e) 100,000 99,564
Federal Home Loan Mortgage Corporation,
4.96%, 3/26/99 (e) 100,000 99,270
Federal National Mortgage Association,
5.07%, 2/19/99 (e) 50,000 49,873
Student Loan Market Association,
4.61%, 2/22/99 (b) 5,000 5,000
- -------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 353,581
- -------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES 10.21%
Abbey National, North America, 4.84%,
6/15/99 (b)(e) 29,000 28,988
Abbey National, North America, 5.25%,
8/17/99 (b)(e) 76,000 75,966
Barton Health Care LLC, 5.00%, 2/15/25 (b) 4,320 4,320
Carolina Medi-Plan, Inc., 4.92%, 6/01/22 (b) 50,000 50,000
Evans Street Properties, 4.92%, 1/01/08 (b) 3,500 3,500
Goldman Sachs Group, 5.03%, 2/14/00 (b) 100,000 100,000
Harrison Foundation Series A, 5.00%, 1/01/29 (b) 27,000 27,000
Hilander Finance LLC, 5.00%, 12/01/25 (b) 750 750
</TABLE>
8
<PAGE>
CASH RESOURCE TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (CONTINUED)
Massachusetts Nursing Home Tax Adjustable
Health Care, 5.00%, 11/15/13 (b) $ 6,155 $ 6,155
Morganite Industries Inc., 4.94%, 7/01/18 (b) 20,000 20,000
Mississippi Business Financial Corporation
(Taxable Variable Rate Demand), 5.05%,
1/01/23 (b) 5,000 5,000
National Rural Utilities, 5.17%, 9/21/99 (b) 45,000 45,000
National Rural Utilities, 4.98%, 11/23/99 (b) 25,000 25,000
Virginia State Housing Development Authority,
4.90%, 1/01/47 (b) 75,390 75,390
Walker & Associates, 4.92%, 7/01/11 (b) 10,000 10,000
- ----------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND NOTES 477,069
- ----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 11.95%
Goldman, Sachs & Company
Dated 1/29/99, 4.78%, due 2/01/99, collateralized
by Federal National Mortgage Association with
total original face value of $678,368,
5.50% - 8.00%, 8/01/02 - 1/01/29; market value
$569,552 558,385 558,385
- ----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $4,651,713) (c) 99.55% 4,651,713
- ----------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.45% 21,080
- ----------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $4,672,793
- ----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
9
<PAGE>
CASH RESOURCE TRUST
U.S. GOVERNMENT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES 89.21%
Federal Home Loan Bank
4.75% - 5.65%, 2/02/99 - 7/15/99 (e) $ 248,925 $ 248,770
4.73% - 4.80%, 3/25/99 - 11/16/99 (b)(e) 281,000 280,916
Federal Home Loan Mortgage Corporation
4.67% - 5.60%, 2/10/99 - 4/26/99 (e) 1,545,000 1,537,352
5.18%, 8/17/99 (b)(e) 100,000 99,963
Federal National Mortgage Association
5.33% - 5.63%, 2/12/99 - 5/06/99 (e) 888,839 885,580
4.74% - 4.81%, 3/16/99 - 5/28/99 (b)(e) 196,500 196,470
Student Loan Marketing Association
4.62%, 2/08/99 (b) 20,000 20,000
- --------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 3,269,051
- --------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 10.60%
Goldman, Sachs & Company
Dated 1/29/99, 4.78%, due 2/01/99 collateralized
by Federal National Mortgage Association with
total original face value of $29,268, 5.50%,
2/01/14; market value $29,009 28,440 28,440
J.P. Morgan & Company, Inc.
Dated 1/29/99, 4.80%, due 2/01/99, collateralized
by various U.S. Government Agency Securities
with total original face value of $369,841, 6.00%,
1/01/29; market value $367,200 360,000 360,000
- --------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 388,440
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $3,657,491) (c) 99.81% 3,657,491
- --------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.19% 6,790
- --------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $ 3,664,281
- --------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
10
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1999 (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) 47.17%
ALABAMA 0.59%
Montgomery Baptist Medical Center (VHA
Alabama, Inc.) Series B, 2.85%, 12/01/30 $ 5,400 $ 5,400
- --------------------------------------------------------------------------------------------------------
GEORGIA 1.42%
Burke County PCRB Development Authority
(Oglethorpe Power Corporation), 2.65%, 1/01/16 3,060 3,060
Burke County PCRB (Oglethorpe Power
Corporation) Series A, 2.65%, 1/01/19 5,000 5,000
Summerville Development Authority (Image
Industries), 2.80%, 9/01/17 5,000 5,000
- --------------------------------------------------------------------------------------------------------
13,060
- --------------------------------------------------------------------------------------------------------
IDAHO 0.69%
Nez Perce County PCRB (Potlatch) Series 1984,
2.70%, 12/01/14 6,300 6,300
- --------------------------------------------------------------------------------------------------------
ILLINOIS 6.12%
Chicago (O'Hare International Airport) Series
1988 B, 2.90%, 1/01/18 7,400 7,400
Chicago (O'Hare International Airport) Series
1994 B, 2.80%, 1/01/18 1,946 1,946
Illinois State Toll Highway Authority Revenue
Series 1993 B, 2.65%, 1/01/10 10,240 10,240
Illinois State Toll Highway Authority Revenue
Series 1998 B, 2.65%, 1/01/17 10,000 10,000
Illinois DFA IDRB (Grayhill, Inc. Project), 2.80%,
2/01/05 2,450 2,450
Illinois DFA Finance Authority (Flinn Scientific
Project) 2.80%, 10/01/15 4,030 4,030
</TABLE>
11
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
ILLINOIS (CONTINUED)
Illinois Student Assistance Loan Revenue Series A,
2.80%, 3/01/06 $ 14,700 $ 14,700
Village of Gurnee Series 1998, 2.80%, 3/01/18 5,600 5,600
- --------------------------------------------------------------------------------------------------------
56,366
- --------------------------------------------------------------------------------------------------------
INDIANA 2.00%
Fort Wayne Hospital Authority (Parkview Memorial
Hospital) Series B, 2.70%, 1/01/16 8,750 8,750
Indiana Health Facility Finance Authority
(Deaconess Hospital), 2.70%, 1/01/22 9,700 9,700
- --------------------------------------------------------------------------------------------------------
18,450
- --------------------------------------------------------------------------------------------------------
IOWA 0.54%
Iowa Student Loan Revenue Series B, 2.75%,
12/01/13 5,000 5,000
- --------------------------------------------------------------------------------------------------------
KENTUCKY 0.79%
Kentucky EDA (Baptist Health Systems) Series 1997,
2.85%, 8/15/31 4,800 4,800
Kentucky Higher Education Student Loan Series
1996 A, 2.75%, 6/01/26 2,500 2,500
- --------------------------------------------------------------------------------------------------------
7,300
- --------------------------------------------------------------------------------------------------------
LOUISIANA 3.39%
Desoto Parish PCRB (Central Louisiana Electric)
Series B, 2.65%, 7/01/18 6,700 6,700
Louisiana PFA Hospital Revenue (Willis-Knighton
Medical Project), 2.85%, 9/01/23 13,000 13,000
</TABLE>
12
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
LOUISIANA (CONTINUED)
St. James Parish PCRB (Occidental Petroleum),
2.65%, 10/01/18 $ 11,500 $ 11,500
- -----------------------------------------------------------------------------------------------------------
31,200
- -----------------------------------------------------------------------------------------------------------
MARYLAND 3.54%
Community Development & Administration (Avalon
Lea Apartments Project), 2.65%, 6/15/26 4,335 4,335
Community Development & Administration (Avalon
Ridge) Series 1997, 2.65%, 6/15/26 10,615 10,615
Maryland State Health & Higher Education, Pooled
Loan Program Series B, 2.80%, 4/01/35 8,000 8,000
Maryland State Health & Higher Education
(Catholic Health Initiatives) Series 1997 B, 2.70%,
12/01/15 9,600 9,600
- -----------------------------------------------------------------------------------------------------------
32,550
- -----------------------------------------------------------------------------------------------------------
MICHIGAN 2.77%
City of Detroit Sewage Disposal Revenue Refunding
Series 1998 A, 2.75%, 7/01/23 12,000 12,000
Michigan State Strategic Fund (Van Andel Research
Institute), 2.75%, 11/01/27 13,500 13,500
- -----------------------------------------------------------------------------------------------------------
25,500
- -----------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE 1.38%
New Hampshire Health and Higher Education
(VHA New England) Series B, D, & G, 2.85%,
12/01/25 12,725 12,725
- -----------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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 MEXICO 1.49%
Albuquerque Gross Receipts Lodgers Tax Series A,
2.70%, 7/01/22 $ 2,050 $ 2,050
City of Albuquerque Series 1995, 2.65%, 7/01/14 11,700 11,700
- --------------------------------------------------------------------------------------------------------
13,750
- --------------------------------------------------------------------------------------------------------
NORTH CAROLINA 4.97%
Durham Water & Sewer Utility System Revenue,
2.80%, 12/01/15 4,800 4,800
North Carolina Education Facilities (Duke
University Program) Series A, 2.65%, 12/01/17 3,000 3,000
North Carolina Education Facilities (Bowman Grey
School Medical), 2.75%, 9/01/20 4,200 4,200
North Carolina Medical Care Community Hospital
(Baptist Hospitals) Series B, 2.65%, 6/01/22 32,200 32,200
North Carolina Medical Care Community Hospital
(Duke University Hospital) Series A, 2.65%,
6/01/23 1,500 1,500
- --------------------------------------------------------------------------------------------------------
45,700
- --------------------------------------------------------------------------------------------------------
OHIO 1.91%
Cuyahoga County Hospital (University of Cleveland
Hospital) Series A, 2.70%, 1/01/24 11,600 11,600
Ohio State Air Quality Development Authority
(IMG Funding Limited Partnership) Series A,
2.85%, 4/01/28 6,000 6,000
- --------------------------------------------------------------------------------------------------------
17,600
- --------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
SOUTH CAROLINA 3.41%
Piedmont Municipal Power Agency Electric Revenue
Series C, 2.65%, 1/01/22 $ 4,000 $ 4,000
Piedmont Municipal Power Agency Electric Revenue
Series B, 2.65%, 1/01/19 10,400 10,400
South Carolina Jobs EDA (Presbyterian Home of
South Carolina Foothills) Series 1996, 2.75%,
12/01/21 9,250 9,250
South Carolina Jobs EDA Hospital Revenue
(Tuomay Regional Medical Center) Series B,
2.65%, 11/01/25 7,700 7,700
- --------------------------------------------------------------------------------------------------------
31,350
- --------------------------------------------------------------------------------------------------------
TENNESSEE 0.72%
Metropolitan Government of Nashville and
Davidson County Health and Education Facility
(D. Lipscomb University), 2.85%, 5/01/20 4,615 4,615
State of Tennessee BANS Series C, 2.65%, 7/02/01 2,000 2,000
- --------------------------------------------------------------------------------------------------------
6,615
- --------------------------------------------------------------------------------------------------------
TEXAS 5.36%
Brazos River Harbor Navigational District
(Hoffman-La Roche, Inc., Project), 2.83%,
4/01/02 (f) 2,750 2,750
Calhoun County IDRB (Formosa Plastics
Corporation Project), 2.80%, 11/01/15 28,500 28,500
Coastal Bend Health Facilities (Incarnate Health
Systems), 2.85%, 8/15/28 1,000 1,000
Harris County Toll Road Series 1994 E, 2.65%,
8/01/15 12,100 12,100
</TABLE>
15
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
Red River Authority PCRB (Southwestern Public
Service), 2.75%, 7/01/16 $ 5,000 $ 5,000
- --------------------------------------------------------------------------------------------------------
49,350
- --------------------------------------------------------------------------------------------------------
VIRGINIA 3.97%
Arlington County Revenue (Ballston Public Parking),
2.80%, 8/01/17 3,300 3,300
Botetourt County IDRB (Emkay Holdings LLC
Project), 2.85%, 10/01/05 2,290 2,290
Capital Regional Airport Commission (Richmond
International Airport Project) Series 1995 C,
2.80%, 7/01/23 4,000 4,000
Fairfax County EDA (Kinder Care Learning Centers)
Series E, 2.90%, 10/01/99 4,875 4,875
Hampton Roads Regional Jail Authority (Regional
Jail Facility) Series 1996 B, 2.80%, 7/01/16 5,300 5,300
Louisa County IDA Pooled Financing Virginia
Municipal Bond Fund, 2.70%, 1/01/20 1,100 1,100
Lynchburg IDA (VHA Mid-Atlantic) Series 1985 D,
F, G, 2.85%, 12/01/25 5,300 5,300
Newport News MFHB (Newport-Oxford Project),
3.00%, 11/01/06 9,700 9,700
Tazewell County IDRB (Coal Fillers, Inc.), 3.00%,
1/01/03 700 700
- --------------------------------------------------------------------------------------------------------
36,565
- --------------------------------------------------------------------------------------------------------
WASHINGTON 0.60%
Port of Seattle Washington Sub-Lien Revenue Bonds
Series 1997, 2.70%, 9/01/22 5,500 5,500
- --------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
WEST VIRGINIA 0.59%
West Virginia State Hospital Finance Authority
Revenue (VHA Mid-Atlantic) Series G, 2.85%,
12/01/25 $ 5,400 $ 5,400
- --------------------------------------------------------------------------------------------------------
WYOMING 0.92%
Lincoln County Industrial Facilities PCRB Financial
Authority Revenue (Barre National, Inc. Project),
2.80%, 8/01/09 4,500 4,500
Sweetwater County PCRB (Pacific Corporation
Project) Series A, 2.65%, 7/01/15 4,000 4,000
- --------------------------------------------------------------------------------------------------------
8,500
- --------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 434,181
- --------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES 50.97%
ALABAMA 0.54%
Port City Medical Clinic Board (Infirmary Health
Systems), 2.90%, 6/10/99 5,000 5,000
- --------------------------------------------------------------------------------------------------------
ARKANSAS 0.35%
Arkansas State Development Finance Authority
(Single Family Mortgage Revenue) Series D-B,
4.05%, 3/01/99 3,225 3,225
- --------------------------------------------------------------------------------------------------------
CALIFORNIA 0.33%
Kern County Board of Education TRANS
Series 1998-1999, 4.25%, 6/30/99 3,000 3,008
- --------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
FLORIDA 1.59%
Hillsborough County School Board, 5.00%,
10/01/99 $ 4,000 $ 4,056
Jacksonville Electric Authority Series 16, 4.00%,
10/01/99 1,000 1,004
Orange County Health Facility Revenue Series 1985,
3.05%, 3/16/99 6,300 6,300
Pinellas County Educational Facilities Authority
Revenue Bonds, 3.00%, 3/18/99 3,300 3,300
- --------------------------------------------------------------------------------------------------------
14,660
- --------------------------------------------------------------------------------------------------------
GEORGIA 0.54%
Burke County PCRB (Oglethorpe Power
Corporation) Series 1998 A, 2.95%, 2/24/99 5,000 5,000
- --------------------------------------------------------------------------------------------------------
HAWAII 0.55%
Hawaii State GO Series BU, 5.70%, 11/01/99 5,000 5,098
- --------------------------------------------------------------------------------------------------------
IDAHO 1.13%
State of Idaho TANS Series 1998, 4.50%, 6/30/99 10,400 10,438
- --------------------------------------------------------------------------------------------------------
ILLINOIS 5.39%
Chicago Park District (Tax Anticipation Warrants)
Series 1998, 4.30%, 9/17/99 2,500 2,511
City of Chicago GO Series 1997, 3.05%,
11/04/99 (f) 15,000 15,000
City of Chicago GO Tender Notes Series 1998,
3.55%, 2/04/99 (f) 18,000 18,000
Illinois HFA (Rush Presbyterian) Series 1989 A,
3.05%, 3/10/99 (f) 7,200 7,200
Illinois HFA (Rush Presbyterian) Series D, 3.05%,
2/12/99 2,100 2,100
</TABLE>
18
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
ILLINOIS (CONTINUED)
Illinois HFA (Alexian Brothers Medical Center)
Series 1985 D, 2.90%, 3/10/99 $ 4,835 $ 4,835
- --------------------------------------------------------------------------------------------------------
49,646
- --------------------------------------------------------------------------------------------------------
INDIANA 1.25%
Jasper County PCRB Series 1988 D, 3.15%,
3/09/99 (f) 5,000 5,000
Jasper County PCRB (Northern Indiana Public
Services) Series A, 2.95%, 3/24/99 (f) 5,000 5,000
Purdue University Revenue Series N, 3.75%, 7/01/99 1,500 1,505
- --------------------------------------------------------------------------------------------------------
11,505
- --------------------------------------------------------------------------------------------------------
KANSAS 0.40%
Wyandotte County Government Refunding,
3.80%, 9/01/99 3,705 3,718
- --------------------------------------------------------------------------------------------------------
KENTUCKY 1.09%
Kentucky Asset Liability Commission Series 1998 A,
4.50%, 6/25/99 10,000 10,035
- --------------------------------------------------------------------------------------------------------
LOUISIANA 0.86%
Parish of West Baton Rouge Industrial District No. 3
(Dow Chemical) Series 1987, 3.00%, 3/11/99 (f) 7,950 7,950
- --------------------------------------------------------------------------------------------------------
MAINE 0.19%
State of Maine GO, 4.60%, 7/01/99 1,750 1,757
- --------------------------------------------------------------------------------------------------------
MARYLAND 1.90%
Anne Arundel County GO BANS TECP Series A,
2.85%, 5/14/99 10,000 10,000
</TABLE>
19
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
MARYLAND (CONTINUED)
Baltimore County PCRB (G & E), 2.90%, 8/18/99 $ 3,000 $ 3,000
Baltimore County PCRB (BG & E) Series 1985,
2.90%, 8/11/99 3,500 3,500
Montgomery County Commercial Papaer BANS
Series 1995, 3.20%, 3/12/99 1,000 1,000
- -------------------------------------------------------------------------------------------------------
17,500
- -------------------------------------------------------------------------------------------------------
MASSACHUSSETTS 1.63%
Sudbury BANS, 4.00%, 8/11/99 15,000 15,030
- -------------------------------------------------------------------------------------------------------
MINNESOTA 0.86%
Minnesota State GO, 6.00%, 8/01/99 4,815 4,885
Minnesota State Refunding, 5.00%, 8/01/99 3,000 3,031
- -------------------------------------------------------------------------------------------------------
7,916
- -------------------------------------------------------------------------------------------------------
MISSISSIPPI 0.36%
Jackson County (Chevron) Series 1994, 3.55%,
2/01/99 (f) 3,300 3,300
- -------------------------------------------------------------------------------------------------------
NEBRASKA 0.20%
Omaha Refunding, 4.20%, 12/15/99 1,795 1,813
- -------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE 0.54%
New Hampshire TECP Series 1998, 3.10%, 2/09/99 5,000 5,000
- -------------------------------------------------------------------------------------------------------
NEW ORLEANS 0.24%
New Orleans GO Refunding Series 1998, 4.00%,
12/01/99 2,155 2,171
- -------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
NEW YORK 0.65%
New York City Water Finance Authority Series
1995 B, 3.50%, 2/16/99 $ 5,000 $ 5,000
New York State Dorm Authority Series 1996,
2.95%, 6/10/99 1,000 1,000
- -------------------------------------------------------------------------------------------------------
6,000
- -------------------------------------------------------------------------------------------------------
NORTH CAROLINA 4.40%
Charlotte Water & Sewer Refunding, 6.75%,
6/01/99 1,000 1,018
Charlotte Water & Sewer Refunding, 5.00%,
2/01/00 5,895 6,011
North Carolina Municipal Power Agency Revenue,
2.85%, 4/07/99 9,500 9,500
North Carolina Municipal Power Agency Revenue,
2.95%, 2/09/99 (f) 10,000 10,000
Wake County Industrial Facilities (P & L) Series
1990 A, 3.00%, 2/12/99 9,000 9,000
Wake County Industrial Facilities Series 1990 A,
3.00%, 2/23/99 5,000 5,000
- -------------------------------------------------------------------------------------------------------
40,529
- -------------------------------------------------------------------------------------------------------
OHIO 1.06%
Ohio State Infrastructure Improvement Series A,
4.25%, 8/01/99 1,500 1,505
State of Ohio Higher Education Facilities Series
1998 B, 4.50%, 6/01/99 8,200 8,225
- -------------------------------------------------------------------------------------------------------
9,730
- -------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
OKLAHOMA 1.63%
Oklahoma City Industrial & Cultural Facility
Series 1998 B, 3.55%, 2/10/99 (f) $ 15,000 $ 15,000
- -----------------------------------------------------------------------------------------------------
PENNSYLVANIA 1.09%
City of Philadelphia Gas Works Revenue Notes
Series C, 3.10%, 3/05/99 10,000 10,000
- -----------------------------------------------------------------------------------------------------
SOUTH CAROLINA 1.93%
York County PCRB (Duke Power) Series 1990,
2.85%, 6/08/99 3,700 3,700
York County PCRB (North Carolina Electric
Project), 3.30%, 3/15/99 (f) 14,045 14,045
- -----------------------------------------------------------------------------------------------------
17,745
- -----------------------------------------------------------------------------------------------------
TENNESSEE 2.20%
Tennessee State School Board Series 1997A,
2.85%, 3/09/99 7,200 7,200
Tennessee State School Board Series 1997A,
3.10%, 3/16/99 5,500 5,500
Shelby County Series 1998 A, 2.90%, 4/06/99 5,000 5,000
Shelby County Series 1998, 2.95%, 6/03/99 2,500 2,500
- -----------------------------------------------------------------------------------------------------
20,200
- -----------------------------------------------------------------------------------------------------
TEXAS 6.67%
Austin Texas TECP Series A, 3.15% - 3.55%,
2/04/99 - 2/17/99 24,600 24,600
Houston Texas TECP Series B, 3.00%, 4/01/99 7,000 7,000
Lower Neches Valley Authority (Chevron USA
Project), 3.45%, 2/17/99 (f) 4,700 4,700
</TABLE>
22
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
TEXAS (CONTINUED)
San Antonio Electric & Gas Systems TECP Series A,
3.55%, 2/08/99 $ 10,000 $ 10,000
Texas Public Finance Authority Series B, 2.95%,
6/09/99 5,000 5,000
Texas TRANS Series A, 4.50%, 8/31/99 10,000 10,087
- -------------------------------------------------------------------------------------------------------
61,387
- -------------------------------------------------------------------------------------------------------
UTAH 2.66%
Davis County School District, 4.00%, 6/30/99 15,000 15,022
Intermountain Power Agency Commercial Paper
Series B, 3.05%, 3/04/99 2,000 2,000
Intermountain Power Agency Series 1997 B,
2.95%, 6/10/99 1,000 1,000
Utah County Environmental Pollution Control
(USX Corporation Refunding Project), 3.00%,
6/01/99 (f) 1,500 1,500
State of Utah GO Series 1998 B, 3.05%, 3/10/99 5,000 5,000
- -------------------------------------------------------------------------------------------------------
24,522
- -------------------------------------------------------------------------------------------------------
VERMONT 0.49%
Vermont EDA TECP Series B, 3.10%, 3/10/99 4,490 4,490
- -------------------------------------------------------------------------------------------------------
VIRGINIA 3.72%
Henrico County Refunding (Public Improvement),
4.50%, 1/15/00 3,000 3,041
City of Norfolk GO Series 1998, 4.25%, 7/01/99 1,715 1,719
Roanoke Refunding Series B, 5.80%, 8/01/99 1,000 1,011
Fairfax County (Public Improvement) Series A,
5.00%, 6/01/99 1,000 1,004
Fairfax County Series A, 4.70%, 6/01/99 4,100 4,118
</TABLE>
23
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
VIRGINIA (CONTINUED)
Richmond Redevelopment & Housing Authority
Series 1997, 4.00%, 2/25/99 (f) $ 15,650 $ 15,650
Peninsula Port Authority Series 1987 A, 3.05%,
3/16/99 1,200 1,200
Peninsula Port Authority (CSX Transportation
Services), 2.95%, 2/09/99 1,500 1,500
York County IDA PCRB (VEPCO), 3.45%,
2/24/99 (f) 5,000 5,000
- -----------------------------------------------------------------------------------------------------
34,243
- -----------------------------------------------------------------------------------------------------
WASHINGTON 0.14%
Washington State Refunding Series 1992 A,
6.00%, 9/01/99 1,250 1,267
- -----------------------------------------------------------------------------------------------------
WEST VIRGINIA 3.81%
West Virginia HDA Interim Financing Notes
(Private Placement), 3.25%, 2/26/99 (d) 4,030 4,030
West Virginia HDA Interim Financing Notes
(Private Placement), 3.30%, 2/26/99 (d) 15,355 15,355
West Virginia HDA Interim Financing Notes
(Private Placement), 3.25%, 3/01/99 (d) 10,615 10,615
West Virginia HDA Interim Financing Notes
(Private Placement), 3.30%, 2/26/99 (d) 4,065 4,065
West Virginia HDA GO Notes Series 1997 A,
3.75%, 6/18/99 (f) 1,000 1,000
- -----------------------------------------------------------------------------------------------------
35,065
- -----------------------------------------------------------------------------------------------------
WISCONSIN 0.58%
State of Wisconsin Clean Water Revenue Series
1998, 4.00%, 6/01/99 1,800 1,803
</TABLE>
24
<PAGE>
CASH RESOURCE TRUST
TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
WISCONSIN (CONTINUED)
Wisconsin GO Commercial Paper Notes, 2.85%,
3/10/99 $ 1,475 $ 1,475
Wisconsin State Operating Notes, 4.50%, 6/15/99 2,000 2,007
- ------------------------------------------------------------------------------------------------------
5,285
- ------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 469,233
- ------------------------------------------------------------------------------------------------------
OTHER 1.71%
AIM - TFIC Institutional, 2.72%, 2/01/99 1,000 1,000
PNC MuniCash, 2.83%, 2/01/99 14,718 14,718
- ------------------------------------------------------------------------------------------------------
15,718
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $919,132) (c) 99.85% 919,132
- ------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.15% 1,387
- ------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $920,519
- ------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
25
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1999 (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) 43.92%
Anaheim C.O.P. 1993 Refunding Project, 2.20%,
8/01/19 $ 3,400 $ 3,400
CA HFA Revenue Bond (Adventist Health)
Series A, 2.25%, 8/01/21 3,500 3,500
CA HFA Revenue Bond (Health Facilities)
Series A, 2.35%, 10/01/22 1,500 1,500
CA PCRB (Contra Costa Waste Service) Series A,
2.35%, 12/01/10 1,750 1,750
CA PCRB (Sanger Project) Series A, 2.30%, 9/01/20 3,000 3,000
CA Transit Finance Authority, 2.55%, 10/01/27 4,500 4,500
Corona MFHB (Country Hills Project) Series B,
2.30%, 2/01/20 3,000 3,000
Fremont MFHB (Creekside Village Apartments)
Series D, 2.25%, 9/01/07 4,700 4,700
Irvine Public Facilities Capital Improvement,
2.25%, 11/01/10 3,160 3,160
Los Angeles CA Regional Airport Improvement
Corporate Lease Revenue Series B, 3.25%,
12/01/24 2,800 2,800
Los Angeles CA Regional Airport Improvement
Corporate Lease Revenue Series D, 3.25%,
12/01/24 500 500
Los Angeles CA Regional Airport Improvement
Corporate Lease Revenue Series F, 3.25%,
12/01/24 700 700
Los Angeles CA Regional Airport Improvement
Corporate Lease Revenue Series 1984 A, 3.25%,
12/01/24 400 400
Los Angeles County Pension Obligation Series C,
2.20%, 6/30/07 3,900 3,900
Puerto Rico Commonwealth Highway &
Transportation Authority Transportation Revenue
Series A, 2.35%, 7/01/28 1,800 1,800
</TABLE>
26
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
Rancho CA Water Distribution Finance Authority
Series 1998 A, 2.30%, 8/15/29 $ 2,000 $ 2,000
Redlands CA C.O.P. (Sewer Facilities), 2.30%,
9/01/17 1,050 1,050
San Francisco City & County MFHB (Rincon Center
Project) Series B, 2.40%, 12/01/06 960 960
Southern California Public Power Authority Power
Project Revenue Bonds Series 1996 C, 2.20%,
7/01/17 2,200 2,200
- -------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 44,820
- -------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES 53.29%
CA PCRB (Pacific Gas & Electric) Series 1996 E,
3.00%, 2/16/99 (f) 6,500 6,500
CA PCRB (Pacific Gas & Electric) Series 1996 D,
2.60%, 2/18/99 (f) 3,000 3,000
CA State Revenue Anticipation Notes, 4.00%,
6/30/99 2,000 2,008
City of San Diego IDRB (San Diego Gas & Electric)
Series 1995 A, 3.00%, 3/9/99 (f) 2,000 2,000
Kern County Board of Education, 4.25%, 6/30/99 4,000 4,011
Oakland Unified School District TRANS Series
1998-1999, 3.25%, 11/09/99 1,000 1,003
Los Angeles County Metropolitan Transit Authority
TECP, 3.00%, 2/11/99 2,000 2,000
Los Angeles County Metropolitan Transit Authority
TECP Series A, 2.65%, 2/16/99 600 600
Los Angeles County Metropolitan Transit Authority
TECP Series A, 2.70%, 5/11/99 1,800 1,800
Los Angeles TRANS Series A, 4.00%, 6/30/99 4,000 4,007
Los Angeles UFSD TRANS Series A, 4.50%, 7/01/99 2,000 2,008
Los Angeles City Department of Water & Power,
3.00%, 2/04/99 1,100 1,100
Los Angeles City Department of Water & Power,
2.75%, 2/10/99 3,000 3,000
</TABLE>
27
<PAGE>
CASH RESOURCE TRUST
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
Sacramento County Office of Education Series
1998-1999, 3.50%, 1/21/00 $ 2,000 $ 2,011
Sacramento Municipal Utilities District Series I,
2.80%, 4/06/99 3,000 3,000
San Bernardino County TRANS, 4.50%, 9/30/99 600 605
San Diego CA Unified School District TRANS
Series A, 4.50%, 10/01/99 1,000 1,011
San Diego Unified Port Series B, 2.90%, 2/10/99 2,000 2,000
San Diego Unified Port Series B, 2.65%, 2/23/99 1,500 1,500
San Diego California Unified School District,
4.50%, 9/30/99 1,200 1,213
San Francisco Bay Area Transit Series A, 2.60%,
2/24/99 1,500 1,500
San Francisco Bay Area Transit Series A, 2.75%,
4/06/99 1,500 1,500
San Joaquin County Transit Authority, 2.75%,
8/11/99 3,000 3,000
Santa Clara Insurance Funding, 4.50%, 4/01/99 (f) 1,000 1,002
Sonoma County CA TRANS, 4.50%, 2/01/99 2,000 2,000
Turlock CA Irrigation District Revenue Refunding
Project Series A, 4.25%, 1/01/00 500 505
West Sacramento Redevelopement Agency Series
1998, 4.00%, 9/01/99 500 502
- --------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 54,386
- --------------------------------------------------------------------------------------------------------
OTHER 2.17%
California Money Fund, 2.40%, 2/01/99 2,215 2,215
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $101,421) (c) 99.38% 101,421
- --------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.62% 635
- --------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $102,056
- --------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO PORTFOLIOS OF INVESTMENTS.
28
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1999 (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) 38.27%
Babylon NY IDA Series 1989, 3.25%, 12/01/24 $1,000 $ 1,000
Long Island Power Authority NY Sub-Series 6,
3.20%, 5/01/33 500 500
NY City Health & Hospital (Health Systems) Series
1997 A Bonds 1997, 2.50%, 2/15/26 400 400
NY City Housing Development MFHB (Columbus
Apartments) Series A, 2.45%, 3/15/25 300 300
NY City Housing Development (Tribeca Towers)
Columbus Gardens 1993 A, 2.35%, 2/01/07 200 200
NY City Cultural Resource Revenue Series 1990,
2.70%, 12/01/10 200 200
NY City Municipal Assistance Corporation Series F,
2.35%, 7/01/08 1,000 1,000
NY City Municipal Assistance Corporation Series
K-2, 2.35%, 7/01/08 500 500
NY City Municipal Assistance Corporation Series
K-3, 2.35%, 7/01/08 600 600
NY State Dormitory Authority Metropolitan
Museum Series A, 2.35%, 7/01/15 290 290
NY State Energy R & D Authority PCRB Series
1994 A, 2.35%, 10/01/14 500 500
NY State Energy R & D Electric Facility Series B,
2.75%, 11/01/23 235 235
NY State Housing Finance Authority Normandie
C&I Project, 2.35%, 5/15/15 300 300
NY State (LGAC) Series C, 2.35%, 4/01/25 400 400
NY State Medical Care (Pooled Equipment Loan
Program II) Series A, 2.45%, 11/01/03 600 600
NY State Medical Care (Pooled Equipment Loan
Program I) 2.60%, 11/01/15 200 200
Niagara County NY IDA Solid Waste Disposal
(American Refueling Company) Series 1996 D,
2.50%, 11/15/26 400 400
</TABLE>
29
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (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)
Niagara Falls Toll Revenue Series A, 2.35%,
10/01/19 $ 300 $ 300
Onondaga City NY IDRB (Southern Container
Corporation Project-B), 2.60%, 12/01/07 515 515
Suffolk County Water Authority BANS, 2.45%,
2/08/01 300 300
- --------------------------------------------------------------------------------------------------------
TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 8,740
- --------------------------------------------------------------------------------------------------------
OTHER TAX-EXEMPT SECURITIES 53.05%
Erie County NY, 5.50%, 6/01/99 500 504
Half Hollow Hills CSD, 3.90%, 6/25/99 400 401
Long Island Power Authority NY Sub-Series 3,
2.90%, 6/14/99 400 400
Manhasset NY UFSD, 4.50%, 11/15/99 500 506
Metropolitan Transportation Authority Special
Obligation Series 1998 B, 2.85%, 5/11/99 500 500
Metropolitan Transportation Authority NY City
Special Obligation Series B, 2.90%, 5/11/99 500 500
Monroe County NY GO Series 1997 A,
4.90%, 6/01/99 (e) 300 301
Nassau County BANS Series X, 5.00%, 11/01/99 700 711
Monroe County NY GO Series 1997, 2.95%,
3/01/99 500 500
Niagara Falls Toll Revenue Series A, 5.60%,
10/01/99 200 203
NY Dormitory Authority (Sloan Kettering Cancer
Center) Series 1996, 2.95%, 6/10/99 300 300
NY Dormitory Authority (Columbia University),
4.25%, 7/01/99 250 251
NY Dormitory Authority (Sloan Kettering Cancer
Center) Series 1996, 2.95%, 2/18/99 800 800
NY State Dormitory Authority Series 1989 B,
2.80%, 4/01/99 400 400
</TABLE>
30
<PAGE>
CASH RESOURCE TRUST
NEW YORK TAX-EXEMPT MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Principal Value
Percent of Net Assets Amount (Note 2)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER TAX-EXEMPT SECURITIES (CONTINUED)
NY State Environmental Solid Waste Disposal
(GE Project) Series 1992 A, 2.85%, 2/03/99 $ 500 $ 500
NY State Environmental Solid Waste Disposal
(GE Project) Series 1992 A, 2.75%, 2/02/99 500 500
NY State Environmental Quality Series 1997 A,
2.75%, 4/06/99 500 500
NY State Thruway Authority Series A, 4.40%,
3/01/99 900 900
NY City GO TECP Series J, J-2, 3.00%, 3/08/99 300 300
NY State Power Authority TECP Series H-3,
3.10%, 2/09/99 400 400
NY State Power Authority TECP Series 2, 3.05%,
3/01/99 500 500
NY State BANS TECP Series U, 2.85%, 3/04/99 500 500
Sachem CSD (Holbrook) Series 1997-98 TANS,
3.80%, 6/25/99 300 300
South Huntington NY UFSD, 3.90%, 6/30/99 500 501
Westchester County Health Series I, 2.85%, 4/07/99 500 500
Suffolk County NY (Water Authority BANS),
4.80%, 6/01/99 200 201
Suffolk County NY (Water Authority) Series B,
5.10%, 6/01/99 235 236
- -------------------------------------------------------------------------------------------------------
TOTAL OTHER TAX-EXEMPT SECURITIES 12,115
- -------------------------------------------------------------------------------------------------------
OTHER 8.29%
PNC NYCash, 2.52%, 2/01/99 1,892 1,892
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $22,747) (c) 99.61% 22,747
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES 0.39% 90
- -------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $22,837
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
CASH RESOURCE TRUST
NOTES TO PORTFOLIOS OF INVESTMENTS
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
- --------------------------------------------------------------------------------
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.
(b) Floating Rate Securities - The rates shown are the effective rates at
January 31, 1999.
(c) For each security, cost (for financial reporting and federal income tax
purposes) and carrying value are the same.
(d) These securities are deemed illiquid because they can not be resold within
seven business days from January 31, 1999.
(e) These securities are traded at a discount. The rates shown represent the
discount received at the time of purchase by the Fund.
(f) These bonds have put features which provide the right to sell the bond at
specific tender dates prior to final maturity. The put features shorten
the effective maturity to the next tender date.
INVESTMENT ABBREVIATIONS
BANS - Bond Anticipation Note
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
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.
32
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
California New York
U.S. Tax- Tax- Tax-
Government Exempt Exempt Exempt
Money Money Money Money Money
Market Market Market Market Market
Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at amortized cost (Note 2)
Investment securities $ 4,093,328 $ 3,269,051 $ 919,132 $ 101,421 $ 22,747
Repurchase agreements 558,385 388,440 - - -
- -----------------------------------------------------------------------------------------------------------------------
Total investments 4,651,713 3,657,491 919,132 101,421 22,747
- -----------------------------------------------------------------------------------------------------------------------
Cash - - 8 - -
Dividends and interest receivables 30,778 15,002 6,501 731 115
Organizational costs, net (Note 2) - - - 6 2
Other 89 - - - -
- -----------------------------------------------------------------------------------------------------------------------
Total assets 4,682,580 3,672,493 925,641 102,158 22,864
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Investments purchased - - 4,122 - -
Dividends 8,959 6,920 973 90 21
Accrued expenses and other liabilities 828 1,292 27 12 6
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 9,787 8,212 5,122 102 27
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,672,793 $ 3,664,281 $ 920,519 $ 102,056 $ 22,837
- -----------------------------------------------------------------------------------------------------------------------
Net Asset Value per Share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Shares Outstanding 4,672,823 3,664,281 920,521 102,056 22,837
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
California New York
U.S. Tax- Tax- Tax-
Government Exempt Exempt Exempt
Money Money Money Money Money
Market Market Market Market Market
Fund Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 116,044 $ 95,159 $ 14,812 $ 1,504 $ 324
- -------------------------------------------------------------------------------------------------------
EXPENSES
Distribution fee (Note 3) 8,082 6,878 1,458 166 51
Transfer agent fee (Note 3) 3,796 2,655 286 41 7
Management fee (Note 3) 3,669 3,194 934 111 22
Registration expenses 1,131 828 208 28 5
Custodian and accounting fees (Note 3) 533 394 125 17 4
Administrative service fees (Note 3) 460 393 96 10 2
Shareholder reports and postage expenses 299 210 43 6 1
Legal fees 85 62 16 2 1
Audit fees 82 60 15 2 -
Directors' fees and expenses 61 45 11 1 -
Organizational expenses 11 46 1 1 -
Miscellaneous 81 77 31 2 -
- -------------------------------------------------------------------------------------------------------
Total expenses 18,290 14,842 3,224 387 93
- -------------------------------------------------------------------------------------------------------
Deduct
Waiver of distribution fee - - - - 12
- -------------------------------------------------------------------------------------------------------
Net expenses 18,290 14,842 3,224 387 81
- -------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 97,754 80,317 11,588 1,117 243
- -------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations $ 97,754 $ 80,317 $ 11,588 $ 1,117 $ 243
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<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
1/31/99 Ended 1/31/99 Ended
(Unaudited) 7/31/98 (Uuaudited) 7/31/98
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INCREASE IN NET ASSETS
OPERATIONS
Net investment income $ 97,754 $ 158,382 $ 80,317 $ 149,126
- ---------------------------------------------------------------------------------------------------------------------------
Increase in net assets resulting from
operations 97,754 158,382 80,317 149,126
- ---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (97,754) (158,382) (80,317) (149,126)
Net realized gain on investments - - - (7)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease from distributions (97,754) (158,382) (80,317) (149,133)
- ---------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (AT $1.00 PER SHARE)
Proceeds from sale of shares 9,707,272 16,482,466 9,109,467 13,879,934
Reinvested distributions 112,429 156,446 93,977 148,626
Shares redeemed (8,964,613) (15,762,812) (8,701,540) (13,784,887)
- ---------------------------------------------------------------------------------------------------------------------------
Net change in net assets resulting from
capital share transactions 855,088 876,100 501,904 243,673
- ---------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 855,088 876,100 501,904 243,666
NET ASSETS
Beginning of period 3,817,705 2,941,605 3,162,377 2,918,711
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 4,672,793 $ 3,817,705 $ 3,664,281 $ 3,162,377
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
CASH RESOURCE TRUST
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(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 Year Ended Year
1/31/99 Ended 1/31/99 Ended 1/31/99 Ended
(Unaudited) 7/31/98 (Unaudited) 7/31/98 (Unaudited) 7/31/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET INCREASE IN NET ASSETS
OPERATIONS
Net investment income $ 11,588 $ 22,931 $ 1,117 $ 2,611 $ 243 $ 344
- -----------------------------------------------------------------------------------------------------------------------
Increase in net assets
resulting from operations 11,588 22,931 1,117 2,611 243 344
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (11,588) (22,931) (1,117) (2,611) (243) (344)
Net realized gain on
investments - - - - - -
- -----------------------------------------------------------------------------------------------------------------------
Net decrease from
distributions (11,588) (22,931) (1,117) (2,611) (243) (344)
- -----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
(AT $1.00 PER SHARE)
Proceeds from sale of shares 1,992,486 3,375,194 204,668 412,868 45,863 68,863
Reinvested distributions 13,431 22,879 1,300 2,616 279 340
Shares redeemed (1,900,455) (3,326,630) (199,610) (409,218) (38,595) (65,984)
- -----------------------------------------------------------------------------------------------------------------------
Net change in net assets
resulting from capital
share transactions 105,462 71,443 6,358 6,266 7,547 3,219
- -----------------------------------------------------------------------------------------------------------------------
Total increase in net assets 105,462 71,443 6,358 6,266 7,547 3,219
NET ASSETS
Beginning of period 815,057 743,614 95,698 89,432 15,290 12,071
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 920,519 $ 815,057 $ 102,056 $ 95,698 $ 22,837 $ 15,290
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market Fund
--------------------------------------
Six
Months
Ended Year
1/31/99 Ended
(Unaudited) 7/31/98
- --------------------------------------------------------- --------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.000 $ 1.000
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.023 0.048
DISTRIBUTIONS
Net investment income (0.023) (0.048)
- -----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000
- ------------------------------------------------------------------------
TOTAL RETURN 2.34%(b) 4.95%
- ------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ------------------------------------------------------------------------
Net assets, end of period
(in thousands) $4,672,793 $3,817,705
Ratio of expenses to average
net assets 0.86%(a) 0.84%
Ratio of expenses to average net
assets excluding waivers 0.86%(a) 0.84%
Ratio of net investment income
to average net assets 4.59%(a) 4.84%
- ------------------------------------------------------------------------
<CAPTION>
Money Market Fund
------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
7/31/97 7/31/96 7/31/95 7/31/94*
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.047 ** 0.050 0.050 ** 0.020
DISTRIBUTIONS
Net investment income (0.047) (0.050) (0.050)** (0.020)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN 4.77% 4.91% 4.97% 1.83%(b)
- ----------------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 2,941,605 $646,500 $ 422,657 $ 192,260
Ratio of expenses to average
net assets 0.86% 0.82% 0.82% 0.89%(a)
Ratio of expenses to average net
assets excluding waivers 0.86% 0.82% 0.82% 0.93%(a)
Ratio of net investment income
to average net assets 4.67% 4.77% 4.96% 2.96%(a)
- ----------------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
(b) Total Return for periods less than one year are not annualized.
* For the period from December 20, 1993 (commencement of operations) to
July 31, 1994.
** Includes net realized capital gains (losses) which were less than $0.0005
per share.
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund
------------------------------------------
Six
Months
Ended Year
1/31/99 Ended
(Unaudited) 7/31/98
- ----------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.000 $ 1.000
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.022 0.048
DISTRIBUTIONS
Net investment income (0.022) (0.048)**
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000
- ----------------------------------------------------------------------------
TOTAL RETURN 2.26% (b) 4.92%
- ----------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 3,664,281 $3,162,377
Ratio of expenses to average
net assets 0.82%(a) 0.81%
Ratio of expenses to average net
assets excluding waivers 0.82%(a) 0.81%
Ratio of net investment income
to average net assets 4.43%(a) 4.80%
- ----------------------------------------------------------------------------
<CAPTION>
U.S. Government
Money Market Fund
------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
7/31/97 7/31/96 7/31/95 7/31/94*
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.046 ** 0.050 0.050 ** 0.020
DISTRIBUTIONS
Net investment income (0.046)** (0.050) (0.050) (0.020)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN 4.72% 4.74% 4.82% 1.82%(b)
- ----------------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 2,918,711 $1,402,397 $ 1,216,690 $ 907,819
Ratio of expenses to average
net assets 0.81% 0.93% 0.88% 0.80%(a)
Ratio of expenses to average net
assets excluding waivers 0.81% 0.93% 0.88% 0.83%(a)
Ratio of net investment income
to average net assets 4.63% 4.63% 4.75% 2.91%(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 $0.0005
per share.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Tax-Exempt
Money Market Fund
---------------------------------------------------
Six
Months
Ended Year Year
1/31/99 Ended Ended
(Unaudited) 7/31/98 7/31/97
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.013 0.029 0.029
DISTRIBUTIONS
Net investment income (0.013) (0.029) (0.029)
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------
TOTAL RETURN 1.40% (b) 2.96% 2.91%
- ----------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 920,519 $815,057 $ 743,614
Ratio of expenses to average net assets 0.73% (a) 0.71% 0.71%
Ratio of expenses to average net assets
excluding waivers 0.73% (a) 0.71% 0.71%
Ratio of net investment income to
average net assets 2.62% (a) 2.91% 2.88%
- ----------------------------------------------------------------------------------------------
<CAPTION>
Tax-Exempt
Money Market Fund
--------------------------------------------------
Year Year Period
Ended Ended Ended
7/31/96 7/31/95 7/31/94*
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.030 0.030 ** 0.010
DISTRIBUTIONS
Net investment income (0.030) (0.030) (0.010)
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------
TOTAL RETURN 2.90% 3.05% 1.16% (b)
- ---------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $290,891 $ 266,895 $ 195,702
Ratio of expenses to average net assets 0.76% 0.72% 0.65% (a)
Ratio of expenses to average net assets
excluding waivers 0.76% 0.74% 0.74% (a)
Ratio of net investment income to
average net assets 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 $0.0005
per share.
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
CASH RESOURCE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
California Tax-Exempt
Money Market Fund
--------------------------------------------------------
Six
Months
Ended Year Period
1/31/99 Ended Ended
(Unaudited) 7/31/98 7/31/97***
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.000 $ 1.000 $ 1.000
- -------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.011 0.027 0.017
DISTRIBUTIONS
Net investment income (0.011) (0.027) (0.017)
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
- -------------------------------------------------------------------------------------------
TOTAL RETURN 1.13% (b) 2.74% 1.76% (b)
- -------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- ----------------------------------
Net assets, end of period (in
thousands) $ 102,056 $ 95,698 $ 89,432
Ratio of expenses to average net
assets 0.77% (a) 0.75% 0.75% (a)
Ratio of expenses to average net
assets excluding waivers 0.77% (a) 0.75% 0.75% (a)
Ratio of net investment income to
average net assets 2.22% (a) 2.70% 2.70% (a)
- -------------------------------------------------------------------------------------------
<CAPTION>
New York Tax-Exempt
Money Market Fund
---------------------------------------------------------
Six
Months
Ended Year Period
1/31/99 Ended Ended
(Unaudited) 7/31/98 7/31/97***
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.000 $ 1.000 $ 1.000
- --------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.012 0.027 0.018
DISTRIBUTIONS
Net investment income (0.012) (0.027) (0.018)
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
- --------------------------------------------------------------------------------------------
TOTAL RETURN 1.28% (b) 2.76% 1.77% (b)
- --------------------------------------------------------------------------------------------
RATIOS / SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 22,837 $ 15,290 $ 12,071
Ratio of expenses to average net
assets 0.80% (a) 0.80% 0.80% (a)
Ratio of expenses to average net
assets excluding waivers 0.92% (a) 0.92% 1.04% (a)
Ratio of net investment income to
average net assets 2.39% (a) 2.72% 2.77% (a)
- --------------------------------------------------------------------------------------------
</TABLE>
(a) Annualized.
(b) Total Return for periods less than one year are not annualized.
*** For the period from December 9, 1996 (commencement of operations) to July
31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1999 (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, 1999 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.
41
<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 all
securities held as collateral in support of repurchase agreement investments.
Additionally, procedures have been established by the Trust to monitor, on a
daily basis, the market value of each repurchase agreement's underlying
securities to ensure the existence of a proper level of collateral.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions such as broker/dealers which are deemed by
the Trust's adviser to be creditworthy pursuant to guidelines established by
the Board of Trustees. Risks may arise from the potential inability of
counterparties to honor the terms of the repurchase agreement. Accordingly, the
Trust could receive less than the repurchase price on the sale of collateral
securities.
(c) Security Transactions and Interest Income
Security transactions for the Funds are accounted for on a trade date basis.
Interest income is recorded on the accrual basis and includes amortization of
premium and discount on investments.
(d) Expenses
Expenses arising in connection with a Fund are allocated to that Fund. Other
Trust expenses are allocated among the Funds in proportion to their relative
net assets.
42
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
(e) Fund Share Valuation and Dividends to Shareholders
Fund shares are sold and redeemed on a continual basis at net asset value. The
net asset value per share (NAV) of each Fund is determined daily as of 4:00
p.m. on each day that the New York Stock Exchange is open for trading. Each
Fund determines its NAV by dividing the total value of the Fund's investments
and other assets, less liabilities, by the number of Fund shares outstanding.
Each Fund declares a daily dividend, equal to its net investment income for
that day. 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.
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.
43
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Each Fund pays management fees to Mentor Advisors monthly at the following
annual rates, expressed as a percentage of average daily net assets: 0.22% of
the first $500 million of each Fund's average net assets; 0.20% of the next
$500 million; 0.175% of the next $1 billion; 0.16% of the next $1 billion; and
0.15% of any amounts over $3 billion.
Mentor Advisors may from time to time voluntarily waive some or all of its
investment advisory fee and may terminate any such voluntary waiver at any time
at its sole discretion. For the period ended January 31, 1999, Mentor Advisors
earned the following advisory fees:
<TABLE>
<CAPTION>
Management
Fee
Earned
- --------------------------------------------
<S> <C>
Money Market Fund $ 3,669,070
U.S. Government Fund 3,193,730
Tax-Exempt Fund 933,916
California Tax-Exempt Fund 110,540
New York Tax-Exempt Fund 22,308
- --------------------------------------------
</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 six months ended January 31,
1999, Mentor earned the following fees:
<TABLE>
<CAPTION>
Administrative
Fee
Earned
----------------------------------------------
<S> <C>
Money Market Fund $ 459,700
U.S. Government Fund 393,168
Tax-Exempt Fund 95,947
California Tax-Exempt Fund 10,059
New York Tax-Exempt Fund 2,043
- -----------------------------------------------
</TABLE>
The Funds provided direct reimbursement to Mentor for certain legal and
compliance, investor relation and operations related costs not covered under
the Investment Management Agreement. For the six months ended January 31, 1999,
the Money Market Fund, U.S. Government Fund, Tax-Exempt Fund, California
Tax-Exempt Fund and New York Tax-Exempt Fund paid $122,316, $100,341, $24,395,
$2,803 and $596, 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
44
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Distributors for the services it provides and for the expenses it incurs under
the Distribution Agreement, the Funds have adopted a Plan of Distribution
pursuant to Rule 12b-1 under the Investment Company Act of 1940, under which
they pay a distribution fee, which is accrued daily and paid monthly at the
annual rate of 0.38% of the Fund's average daily net assets for Money Market
Fund, U.S. Government Fund and New York Tax-Exempt Fund and 0.33% of the Fund's
average daily net assets for Tax-Exempt Fund and California Tax-Exempt Fund
(the Plan provides for payments by the New York Tax-Exempt Fund at a rate of up
to 0.50%, the Trustees have currently limited payments by this Fund to 0.38% of
the Fund's average daily net assets).
In order to compensate selected financial institutions, such as investment
dealers and banks through which shares of each Fund are sold ("Financial
Institutions") for services provided in connection with sales of shares of each
Fund and/or for administrative services and the maintenance of shareholder
accounts, Mentor Distributors may make periodic payments (from any amounts
received by it under the Plan or from its other resources) to qualifying
Financial Institutions based on the average net asset value of shares of a Fund
which are attributable to shareholders for whom the Financial Institutions are
designated as the Financial Institution of record. Mentor Distributors may make
such payments at the annual rate of up to 0.40% of the average net asset value
of such shares (0.38% in the case of New York Tax-Exempt and 0.33% in the case
of Tax-Exempt and California Tax-Exempt Funds).
TRANSFER AGENCY 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 six months
ended January 31, 1999, Wheat and EVEREN earned the following fees:
45
<PAGE>
CASH RESOURCE TRUST
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
<TABLE>
<CAPTION>
EVEREN Wheat
- ----------------------------------------------------
<S> <C> <C>
Money Market Fund $ 1,567,726 $ 738,403
U.S. Government Fund 486,347 1,335,698
Tax-Exempt Fund 73,004 82,817
California Tax-Exempt
Fund 20,758 964
New York Tax-Exempt
Fund - 1,139
- ----------------------------------------------------
</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.
NOTE 5: 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.
46
<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 & SECRETARY
Senior 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>
Bulk Rate
U.S. Postage
PAID
Mentor
CASH RESOURCE TRUST
901 East Byrd Street
Richmond, VA 23219
(800) 869-6042
Cash Resource Trust
-------------------------------------
SEMI-ANNUAL REPORT
-------------------------------------
January 31, 1999
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