<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
ALABAMA (4.7%)
$ 9,100 Anniston, (Industrial Development Board, PCR,
Monsanto Co. Project, Series 1992)..............
VRDN (A) 3.550% $ 9,100,000
2,230 Anniston Solid Waste Disposal Authority (PCR,
Monsanto Co. Project, Series 1992)..............
VRDN (A) 3.550 2,230,000
1,925 Birmingham (Medical Clinic Board Baptist Medical
Center, Clinic Revenue Series 1990-A, Western
Medical Systems, Inc. Project) LOC Fuji Bank
Ltd.............................................
VRDN (A) 3.800 1,925,000
4,200 Birmingham, (Medical Clinic Board St.
Martins'-in-the-Pines Medical Clinic Revenue
Refunding, St Martins' Project, Series 1989) LOC
Fuji Bank Ltd...................................
VRDN (A) 3.800 4,200,000
3,635 Birmingham, (Medical Clinic Board St.
Martins'-in-the-Pines Medical Clinic Revenue
Refunding, St Martins' Project, Series 1989) LOC
First Alabama Bank..............................
VRDN (A) 3.675 3,635,000
5,925 Decatur County, (Industrial Development Board,
PCR, Refunding Monsanto Co. Project, Series
1990)...........................................
VRDN (A) 3.550 5,925,000
9,500 Evergreen, (Industrial Development Board, IDR,
Polyfelt U.S. Inc. Project, Series 1985) LOC
Creditanstalt-Bankverein........................
VRDN (A) 4.220 9,500,000
2,250 Jefferson County (Public Improvement Revenue
Warrant, Briarwood Presbyterian Church Project,
Series 1988) LOC Amsouth Bank...................
VRDN (A) 5.687 2,250,000
900 Mobile, (Industrial Development Board, Solid Waste
Disposal, IDR, Scott Paper Co., Series 1984 E)
LOC Swiss Bank, NY..............................
VRDN (A) 3.550 900,000
5,700 North Alabama, Environmental Improvement
Authority, (PCR, Reynolds Metals Inc. Project,
Series 1985) LOC Bank of Nova Scotia............
VRDN (A) 3.500 5,700,000
5,300 Red Bay County, (Industrial Development Board,
IDR, Refunding, Gates Rubber Co. Project, Series
1987) LOC National Bank of Detroit..............
VRDN (A) 3.675 5,300,000
200 Stevenson, (Industrial Development Board, Mead
Project) LOC Credit Suisse......................
VRDN (A) 3.500 200,000
-------------
Total Alabama..................................... 50,865,000
-------------
ALASKA (6.8%)
4,745 Alaska (Industrial Development and Export
Authority, IDR, American President Lines Ltd.,
Series 1991) LOC Industrial Bank of Japan LTD...
VRDN (A) 3.850 4,745,000
1,460 Alaska (Industrial Development Authority, IDR,
Providence Medical Office Building Associates
Project, Series 1985) LOC Barclays Bank
International...................................
VRDN (A) 3.600 1,460,000
40,100 Alaska (State Housing Finance Corp., Series 1991
C)..............................................
VRDN (A) 3.600 40,100,000
27,500 Anchorage Alaska (Series 1994)....................
TAN 12/07/95 5.000 27,525,796
-------------
Total Alaska...................................... 73,830,796
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
16
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
ARIZONA (1.3%)
$ 1,000 Casa Grande, (Industrial Development Authority,
IDR, Abbott Labs Project, Series 1983)..........
VRDN (A) 5.687% $ 1,000,000
800 Casa Grande, (Industrial Development Authority,
PCR, Abbott Labs Project, Series 1984)..........
VRDN (A) 5.687 800,000
6,600 Maricopa County, (Pollution Control Corporation,
PCR, Public Service Co. of New Mexico, Palo
Verde Project, Series 1992A) LOC Canadian
Imperial Bank...................................
VRDN (A) 3.600 6,600,000
2,000 Salt River, (Arizona Agriculture Import & Power
District Project, Series 1986C, Maturity
1/01/07) Prerefunded............................
RB 01/01/96(B) 7.125 2,052,308
3,200 Tucson, (Industrial Development Authority,
Reliance Group Inc., Parking Garage Revenue) LOC
Societe Generale................................
VRDN (A) 3.800 3,200,000
-------------
Total Arizona..................................... 13,652,308
-------------
ARKANSAS (0.5%)
750 North Little Rock, (IDR, Refunding, Noland Co.
Project, Series 1989) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 3.460 750,000
5,175 Texarkana, (Industrial Development Board, Cooper
Tire and Rubber Co. Project, Series 1991).......
VRDN (A) 4.300 5,175,000
-------------
Total Arkansas.................................... 5,925,000
-------------
CALIFORNIA (3.0%)
16,400 California Higher Education Loan Authority, Inc.
(Student Loan Revenue Bond Refunding, Series
1992 D-1, Maturity 4/01/00), LOC Dresdner Bank
N.Y.............................................
VRDN (A) 3.550 16,400,000
2,000 Fresno, (IDR, Fresno MSA Limited Partnership
Project) LOC Bank of Nova Scotia................
VRDN (A) 5.687 2,000,000
10,000 Golden Empire, (California Schools Financing
Authority, Kern High School District, Series
1995 A), LOC Canadian Imperial Bank of
Commerce........................................
VRDN (A) 3.500 10,000,000
4,700 Los Angeles, (California Regional Airports, Import
Corp. Leasing, American Airlines, Series 1984
F), LOC Wachovia Bank, Atlanta..................
VRDN (A) 3.500 4,700,000
-------------
Total California.................................. 33,100,000
-------------
COLORADO (2.8%)
2,550 Cherry Creek County, (Southern Metropolitan
District #1, Series 1986) LOC Dresdner Bank.....
VRDN (A) 3.750 2,550,000
25,000 Colorado State (Series 1995A).....................
TRAN 06/27/96 4.500 25,167,563
2,450 Colorado, (Student Obligation Bond Authority,
Student Loan Revenue, Series 1990C) LOC Fuji
Bank Ltd........................................
VRDN (A) 3.550 2,450,000
-------------
Total Colorado.................................... 30,167,563
-------------
CONNECTICUT (0.9%)
10,000 Connecticut, (Development Authority, PCR,
Connecticut Lighting & Power Project, Series
1993A, Maturity 9/01/28), LOC Deutsche Bank
AG..............................................
VRDN (A) 3.550 10,000,000
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
DELAWARE (0.4%)
$ 4,100 Wilmington Delaware, (Franciscan Health Systems,
Series 1986, Maturity 7/01/11), LOC Toronto
Dominion Bank...................................
VRDN (A) 3.500% $ 4,100,000
-------------
DISTRICT OF COLUMBIA (6.2%)
2,800 District of Columbia, (Columbia Hospital for Women
Issue, 1988 Series A) LOC Mitsubishi Bank LTD...
VRDN (A) 3.700 2,800,000
3,200 District of Columbia, (Series 1992 A-1) LOC
National Westminster Bank PLC...................
VRDN (A) 3.700 3,200,000
15,900 District of Columbia, (Series 1992 A-2) LOC Bank
of Nova Scotia..................................
VRDN (A) 3.700 15,900,000
5,000 District of Columbia, (Series 1992 A-3) LOC
Toronto Dominion................................
VRDN (A) 3.700 5,000,000
4,500 District of Columbia, (Series 1992 A-4) LOC
Toronto Dominion................................
VRDN (A) 3.700 4,500,000
7,700 District of Columbia, (Series 1992 A-6) LOC
National Westminster Bank PLC...................
VRDN (A) 3.700 7,700,000
20,000 District of Columbia, (Series 1995A Sub A2) LOC
Toronto Dominion................................
TRAN 09/30/95 6.250 20,021,475
8,840 Washington DC, (Metropolitan Transportation
Authority, Series PA-4L) FGIC Insured...........
TPP (A) 3.700 8,840,000
-------------
Total District of Columbia........................ 67,961,475
-------------
FLORIDA (4.6%)
575 County of Orange, (Industrial Development
Authority, IDR, Refunding, Noland Co. Project,
Series 1989) LOC Wachovia Bank and Trust........
VRDN (A) 3.460 575,000
4,500 County of Orange, (Florida Health Facilities
Authority, P-Floats-PA-95)......................
TTP (A) 4.200 4,500,000
5,000 Dade County, Water & Sewer System.................
VRDN (A) 3.450 5,000,000
10,050 Florida, (First Municipal Loan Council, Florida
League of Cities, Series 1985), LOC Sumitomo
Bank, LTD.......................................
CP 09/05/95 3.700 10,050,000
2,000 Florida, (Housing Finance Agency, Carlton Arms II
Project, Multi Family Housing Revenue Series
1985-EEE) LOC Sumitomo Bank Ltd.................
VRDN (A) 3.850 2,000,000
5,750 Hernando County, (IDR, Refunding, Moore McCormack
Resource Inc. Project Series 1988) LOC Societe
Generale........................................
VRDN (A) 3.675 5,750,000
18,900 Hillsborough County, (Industrial Development
Authority, PCR, Refunding, Series 1992).........
VRDN (A) 3.350 18,900,000
3,570 Jacksonville, (Florida Electric Authority, St.
John's River Power Park System Project, Series
1986, Maturity 10/1/12).........................
RB 10/1/95(B) 7.250 3,631,016
-------------
Total Florida..................................... 50,406,016
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
GEORGIA (5.2%)
$ 6,600 Burke County, (Development Authority, PCR,
Oglethorpe Power Corp., Series 1993 A, Vogtle
Project) FGIC Insured...........................
VRDN (A) 3.450% $ 6,600,000
13,450 Burke County, (Development Authority, PCR, Georgia
Power Co., 1994, 5th Series, Vogtle Project)....
VRDN (A) 3.400 13,450,000
7,500 Burke County, (Development Authority, PCR,
Oglethorpe Project), FGIC Insured...............
VRDN (A) 3.400 7,500,000
690 Cobb County, (Development Authority, IDR,
Refunding, Noland Co. Project, Series 1989) LOC
Wachovia Bank and Trust.........................
VRDN (A) 3.675 690,000
1,500 County of DeKalb, (Development Authority, IDR,
Refunding Noland Co. Project, Series 1989) LOC
Wachovia Bank and Trust.........................
VRDN (A) 3.460 1,500,000
4,800 Georgia, (Atlanta Water & Sewer System, P-Floats
PA-22)..........................................
VRDN (A) 3.700 4,800,000
4,240 Georgia, (Floats PA-31A)..........................
VRDN (A) 3.650 4,240,000
10,000 Georgia, (Series 1993 C, BT #149).................
TPP (A) 3.800 10,000,000
7,720 Georgia, (Series 1995 C)..........................
GO 07/01/96 7.250 7,938,094
-------------
Total Georgia..................................... 56,718,094
-------------
HAWAII (1.1%)
4,800 Hawaii, (Housing Finance and Development
Corporation, Affordable Rental Housing Program,
Housing Program Revenue, Kauhole Kakoaka Project
Series 1993-A) LOC Barclays Bank, PLC...........
VRDN (A) 3.750 4,800,000
7,000 Hawaii, (Housing Finance and Development
Corporation, Rental Housing Program, Housing
Program Revenue, Series 1989-A) LOC Banque
National De Paris...............................
VRDN (A) 3.650 7,000,000
-------------
Total Hawaii...................................... 11,800,000
-------------
IDAHO (1.4%)
15,000 Idaho State (Series 1995).........................
TAN 06/27/96 4.500 15,082,941
-------------
ILLINOIS (3.1%)
1,090 Charleston Illinois, (Servistar Corp. Project,
Series 1988) LOC ABN Amro Bank NV...............
VRDN (A) 3.675 1,090,000
6,000 Chicago, (O'Hare International Airport, General
Airport Second Lien, Series 1994 C), LOC Societe
Generale........................................
VRDN (A) 3.550 6,000,000
9,900 Counties of Jackson and Union, (Regional Port
Distributors, Enron Transportation Services LLP,
Refunding, Series 1994), LOC Mitsubishi Bank,
Houston.........................................
VRDN (A) 3.650 9,900,000
1,300 Illinois, (Development Finance Authority, Limited
Obligation Revenue Bond, Dart Container Corp. of
Illinois Project, Series 1984) LOC National Bank
of Detroit......................................
VRDN (A) 3.675 1,300,000
2,490 Illinois, (Development Finance Authority, Olin
Corp. Project 1993 D) LOC Credit Suisse.........
VRDN (A) 3.400 2,490,000
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
ILLINOIS (3.1%) (CONTINUED)
$ 2,500 Illinois, (Development Finance Authority, Olin
Corp. Project, Refunding, Series 1993 A), LOC
Credit Suisse, N.Y..............................
VRDN (A) 3.400% $ 2,500,000
5,000 Illinois, (Education Facilities Authority,
Cultural Pooled Finance Authority Project,
Series 1985) LOC Commonwealth Bank of
Australia.......................................
VRDN (A) 3.450 5,000,000
2,000 Illinois, (Health Facilities Authority, University
of Chicago Hospital Project Series 1985 C) LOC
First National Bank, Chicago....................
VRDN (A) 3.700 2,000,000
2,800 Joliet, (Regional Port Distributors, Exxon Corp.
Project, Refunding, Series 1989)................
VRDN (A) 3.350 2,800,000
1,000 North Chicago, (Lake County, IDR, Abbott Labs
Project, Series 1983)...........................
VRDN (A) 4.812 1,000,000
-------------
Total Illinois.................................... 34,080,000
-------------
INDIANA (0.5%)
4,050 City of Rockport, (Indiana Pollution Control, PCR,
Indiana and Michigan Electric Co. Project,
Series 1985A), LOC Swiss Bank Corp..............
VRDN (A) 3.600 4,050,000
1,500 Jasper County, (Indiana Pollution Control, PCR,
Northern Indiana Public Service Co., Series
1994C), LOC Union Bank of Switzerland...........
VRDN (A) 3.450 1,500,000
-------------
Total Indiana..................................... 5,550,000
-------------
KANSAS (1.6%)
2,000 Garden City, (IDR Refunding, Inland Container
Corp. Project, Series 1983) LOC Credit Suisse...
VRDN (A) 3.700 2,000,000
10,000 Kansas, (Department of Transportation & Highways,
Series 1994B)...................................
VRDN (A) 3.450 10,000,000
1,650 Wichita, (Airport Authority Adjustable Mode
Facility Revenue, Refunding, Flight Safety
International Inc. Project, Series 1990) LOC
Wachovia Bank and Trust.........................
VRDN (A) 3.800 1,650,000
3,300 Wichita, (CSJ Health System of Wichita, Inc.
Revenue, Series 25 1985) LOC Sumitomo Bank
Ltd.............................................
VRDN (A) 3.800 3,300,000
-------------
Total Kansas...................................... 16,950,000
-------------
LOUISANA (3.6%)
4,500 Ascension Parish, (Borden Inc. Project, Refunding,
Series 1992), LOC Credit Suisse.................
VRDN (A) 3.550 4,500,000
24,600 Calcasieu Parish, (Recovery District Sales Tax,
Road Improvement) LOC National Westminster
Bank............................................
VRDN (A) 3.600 24,600,000
2,700 Louisiana, (Offshore Terminal Authority Deepwater
Port, First Stage A - LOOP Inc. Project, Series
1992A), LOC Union Bank Of Switzerland...........
VRDN (A) 3.450 2,700,000
7,100 New Orleans, (Louisiana Aviation Board, Series
1993B) MBIA Insured.............................
VRDN (A) 3.550 7,100,000
-------------
Total Louisiana................................... 38,900,000
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
MARYLAND (1.6%)
$ 10,000 Anne Arundel, (PCR, Baltimore Gas and Electric Co.
Project, Series 1989, Maturity 07/01/14)........
RB 07/01/96(B) 3.850 $ 10,000,000
1,655 Frederick County (IDR Refunding, Noland Co.
Project, Series 1989) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 3.460 1,655,000
5,730 Harford County, (Consolidated Public Improvement
Refinancing, Series PA-48)......................
TPP (A) 3.700 5,730,000
-------------
Total Maryland.................................... 17,385,000
-------------
MASSACHUSETTS (1.2%)
9,800 Massachusetts, (Health & Education Facility,
Harvard University, Series 1985)................
VRDN (A) 3.150% 9,800,000
2,900 Massachusetts, (Series E, Dedicated Income Tax,
Fiscal Recovery Loan Act - 1990) LOC ABN Amro
Bank............................................
VRDN (A) 3.200 2,900,000
-------------
Total Massachusetts............................... 12,700,000
-------------
MICHIGAN (0.1%)
1,000 Michigan, (State Housing Development Authority,
Series 1994 C) LOC Credit Suisse, N.Y...........
VRDN (A) 3.550 1,000,000
-------------
MINNESOTA (0.1%)
1,525 St. Louis Park, (Tax Increment Revenue, Series
1987B) LOC Sumitomo Bank Ltd....................
VRDN (A) 3.550 1,525,000
-------------
MISSISSIPPI (0.3%)
535 Columbus, (IDR, Refunding Noland Co. Project,
Series 1989) LOC Wachovia Bank and Trust........
VRDN (A) 3.675 535,000
2,800 Jackson County, (Mississippi Port Facility, PCR,
Chevron USA Inc. Project, Refunding, Series
1993)...........................................
VRDN (A) 3.500 2,800,000
-------------
Total Mississippi................................. 3,335,000
-------------
MISSOURI (1.0%)
11,000 Missouri, (Environmental Improvement and Energy
Resources Authority, PCR, Union Electric Co.
Project, Series 1984B, Maturity 06/01/14) LOC
Union Bank of Switzerland.......................
RB 06/01/96(B) 4.000 11,000,000
-------------
NEW HAMPSHIRE (2.2%)
1,790 New Hampshire Higher Educational and Health
Facilities Authority, Dartmouth College Issue,
Student Loan Revenue, Series 1994)..............
RB 06/01/96(B) 4.100 1,790,000
2,280 New Hampshire Higher Educational and Health
Facilities Authority, Dartmouth Educational Loan
Corp., Student Loan Revenue, Series 1982).......
RB 06/01/96 4.100 2,280,000
20,350 State of New Hampshire, (Business Finance
Authority, PCR, North East Power Company
Project, Series 1990 B).........................
VRDN (A) 3.550 20,350,000
-------------
Total New Hampshire............................... 24,420,000
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
NEW YORK (10.6%)
$ 15,880 New York City, (Series 1995 A)....................
TAN 02/15/96 4.500% $ 15,926,775
15,000 New York City, (Series 1995 A)....................
RAN 04/11/96 3.850 15,057,741
3,500 New York City, (Series 1995 A)....................
RAN 04/11/96 4.500 3,513,833
8,200 New York State (Energy Research & Development
Authority, PCR, Niagara Mohawk Power Corp.,
Series 1985A) LOC Toronto Dominion Bank.........
VRDN (A) 4.100 8,200,000
6,000 New York State, (Energy Research & Development
Authority, PCR, New York Electric & Gas,
Refunding, Series 1994 B) LOC Union Bank of
Switzerland.....................................
VRDN (A) 3.150 6,000,000
5,500 New York, (New York City Municipal Water Finance
Authority, Water and Sewer Systems, Series 1993
C), FGIC Insured................................
VRDN (A) 3.350 5,500,000
5,200 New York, (New York City Municipal Water Finance
Authority, Water and Sewer Systems, Series 1995
A), FGIC Insured................................
VRDN (A) 3.600 5,200,000
11,750 New York, (Series 1992B) FGIC Insured.............
VRDN (A) 3.600 11,750,000
2,500 New York, (Sub-Series 1993 B-3) LOC Swana Bank,
Ltd.............................................
VRDN (A) 3.650 2,500,000
11,600 New York, (Sub-Series 1993 B-4) LOC Union Bank of
Switzerland.....................................
VRDN (A) 3.600 11,600,000
20,000 Rockland County, (Series 1995)....................
RAN 05/17/96 5.000 20,112,683
10,000 Suffolk County, (New York Water Authority, Series
1994) LOC Bank of Nova Scotia...................
VRDN (A) 3.400 10,000,000
-------------
Total New York.................................... 115,361,032
-------------
NORTH CAROLINA (1.4%)
2,100 Ashe County, (Industrial Facilities and Pollution
Control Finance Authority, IDR Refunding, Gates
Rubber Co. Project, Series 1988) LOC National
Bank of Detroit.................................
VRDN (A) 3.675 2,100,000
2,140 County of Davidson, (Industrial Facilities and
Pollution Control Financing Authority, IDR
Refunding, Lowes Co., Inc. Project, Series 1990)
LOC National Westminster Bank PLC...............
VRDN (A) 3.675 2,140,000
2,000 Mecklenburg County, (Industrial Facilities and
Pollution Control Financing Authority, IDR,
Allied Corp. Project, Series 1984) LOC Algemene
Bank Nederlande N. V............................
VRDN (A) 3.700 2,000,000
1,040 North Carolina, (Eastern Municipal Power Agency,
Floats PA-34 B, Series 1993)....................
VRDN (A) 3.650 1,040,000
1,600 North Carolina, (Educational Facilities Finance
Agency, Guilford College Project, Series 1993)
LOC Wachovia Bank and Trust.....................
VRDN (A) 3.500 1,600,000
4,000 Wake County, (Industrial Facilities and Pollution
Control Financing Authority, PCR, Carolina Power
& Light Project, Series 1985A) LOC Credit
Suisse..........................................
VRDN (A) 3.500 4,000,000
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
NORTH CAROLINA (1.4%) (CONTINUED)
$ 2,600 Wake County, (Industrial Facilities and Pollution
Control Financing Authority, PCR, Carolina Power
& Light Co. Project, Series 1985 B) LOC Sumitomo
Bank Ltd........................................
VRDN (A) 3.650% $ 2,600,000
-------------
Total North Carolina.............................. 15,480,000
-------------
OHIO (0.5%)
1,400 Warren County, (IDR, Leggett & Platt Inc. Project,
Series 1984) LOC National Westminster Bank
PLC.............................................
VRDN (A) 4.000 1,400,000
4,400 Wooster, (IDR, Allen Group Inc. Project, Series
1985) LOC Union Bank of Switzerland.............
VRDN (A) 3.650 4,400,000
-------------
Total Ohio........................................ 5,800,000
-------------
OKLAHOMA (7.7%)
2,425 Oklahoma, (Industrial Development Authority, IDR,
St. Anthony Parking Garage Project) LOC
Mitsubishi Bank and Trust.......................
RB 12/01/95 4.050 2,425,000
5,665 Oklahoma, (Industrial Development Authority, St.
Anthony's Physicians Building PJ Medical
Practice, Series 1986) LOC Mitsubishi Bank and
Trust...........................................
RB 12/01/95 4.050 5,665,000
31,500 Oklahoma, (Water Resources Board, State Loan
Revenue Program, Series 1994 A) LOC Swiss Bank
Corp............................................
CP 09/01/95 4.500 31,500,000
30,200 Oklahoma, (Water Resources Board, State Loan
Revenue Program, Series 1994 A) LOC Swiss Bank
Corp............................................
CP 03/01/96 3.950 30,200,000
5,240 Tulsa, (Industrial Development Authority,
Hillcrest Medical Center Project, Series 88) LOC
Sumitomo Bank...................................
VRDN (A) 3.550 5,240,000
8,425 Washington County, (Medical Authority, Hospital
Revenue, Series 1989 B).........................
RB 11/01/95 5.550 8,425,000
-------------
Total Oklahoma.................................... 83,455,000
-------------
OREGON (1.8%)
4,795 Oregon, (Series 73 F), LOC Mitsubishi Bank LTD....
VRDN (A) 3.700 4,795,000
14,400 Port of Portland, (PCR, Revenue Bonds, Reynolds
Metal Co., Series 1985) LOC Bank of Nova
Scotia..........................................
VRDN (A) 3.500 14,400,000
-------------
Total Oregon...................................... 19,195,000
-------------
PENNSYLVANIA (9.5%)
14,010 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series
1988B-1) LOC PNC Financial......................
VRDN (A) 3.600 14,010,000
6,700 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series 1990D)
MBIA Insured....................................
VRDN (A) 3.600 6,700,000
5,530 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series
1988B-2) LOC PNC Financial......................
VRDN (A) 3.600 5,530,000
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
PENNSYLVANIA (9.5%) (CONTINUED)
$ 4,200 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital Series 1990 B)
MBIA Insured....................................
VRDN (A) 3.700% $ 4,200,000
2,525 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series
1988B-3) LOC PNC Financial......................
VRDN (A) 3.600 2,525,000
1,000 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series 1990A)
LOC Credit Suisse...............................
VRDN (A) 3.600 1,000,000
500 Allegheny County, (Hospital Development Authority,
Presbyterian University Hospital, Series 1990C)
MBIA Insured....................................
VRDN (A) 3.600 500,000
6,000 Allegheny County, (Industrial Development
Authority, IDR Refunding, Dowty Corp. Project,
Series 1986) LOC Mellon Bank....................
VRDN (A) 3.650 6,000,000
3,500 Clinton County, (Industrial Development Authority,
IDR, Mellon Bank Central National Assistance
Project, Series 1985) LOC Mellon Bank...........
VRDN (A) 3.700 3,500,000
2,800 Delaware County, (Industrial Development
Authority, Multi Family Housing, United Parcel
Service of America Project Series 1985).........
VRDN (A) 3.400 2,800,000
6,880 Delaware County, (Industrial Development
Authority, PCR, Series 1988A, Philadelphia
Electric Co.) FGIC Insured......................
CP 09/05/95 3.900 6,880,000
3,700 Delaware County, (Industrial Development
Authority, PCR, Series 1988A, Philadelphia
Electric Co.) FGIC Insured......................
CP 10/05/95 3.500 3,700,000
4,800 Delaware County, (Industrial Development
Authority, PCR, Series 1988A, Philadelphia
Electric Co.) FGIC Insured......................
CP 10/06/95 3.500 4,800,000
3,150 Lehigh County, (Industrial Development Authority,
PCR, P-Floats-PA-99)............................
VRDN (A) 3.650 3,150,000
2,000 Pennsylvania State, (Industrial Development
Authority, Series 1990).........................
VRDN (A) 3.700 2,000,000
15,000 Pennsylvania, (Higher Education Facilities
Authority, Series A)............................
VRDN (A) 3.897 15,000,000
16,700 Pennsylvania, (Higher Education Facilities
Authority, Series B)............................
VRDN (A) 3.897 16,700,000
4,000 Temple University, (Commonwealth System of Higher
Education, Series 1995).........................
RB 05/22/96 5.000 4,019,355
-------------
Total Pennsylvania................................ 103,014,355
-------------
RHODE ISLAND (0.9%)
10,000 Rhode Island, (Series 1995).......................
TAN 06/28/96 4.500 10,063,311
-------------
SOUTH CAROLINA (2.1%)
9,250 Allendale County, (IDR, King Seeley Thermos Co
Project) LOC PNC Financial......................
VRDN (A) 3.675 9,250,000
950 Charleston County, (IDR, Asten Press Fabrics,
Inc., Project, Series 1991) LOC Wachovia Bank
and Trust.......................................
VRDN (A) 3.750 950,000
1,060 County of Spartanburg, (IDR, Refunding, Holmberg
Electronic Corp. Project, Series 1989 A) LOC
Wachovia Bank and Trust.........................
VRDN (A) 3.750 1,060,000
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
SOUTH CAROLINA (2.1%) (CONTINUED)
$ 1,700 Lauren County, (IDR, Asten Press Fabrics, Inc.
Project, Series 1991) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 3.750% $ 1,700,000
9,595 Piedmont County, (South Carolina Electric,
Municipal Power Agency, Series 1985B,
Prerefunded)....................................
RB 01/01/96 9.700 10,030,287
-------------
Total South Carolina.............................. 22,990,287
-------------
TENNESSEE (1.2%)
1,600 Bradley County, (Industrial Development Board,
IDR, Olin Corp. Project, Series C) LOC Swiss
Bank Corp.......................................
VRDN (A) 3.400 1,600,000
3,100 Collierville, (Industrial Development Board, IDR,
Imperial Clevite Inc., Series 1985) LOC National
City Bank of Cleveland..........................
VRDN (A) 5.687 3,100,000
600 County of Knox, (Industrial Development Board,
IDR, Lowes Investment Corp. Project, Series
1985) LOC Fuji Bank LTD.........................
VRDN (A) 4.000 600,000
6,500 County of Knox, (Industrial Development Board,
IDR, Moore McCormack Resources Inc. Project,
Series 1988) LOC Societe Generale...............
VRDN (A) 3.850 6,500,000
1,365 Franklin, (Industrial Development Board, IDR,
Refunding, Noland Co. Project, Series 1989) LOC
Wachovia Bank and Trust.........................
VRDN (A) 3.460 1,365,000
-------------
Total Tennessee................................... 13,165,000
-------------
TEXAS (9.4%)
15,000 City of Fort Worth, (Water & Sewage Authority),
LOC Swiss Bank Corp.............................
CP 11/09/95 3.900 15,000,000
1,500 El Paso, (Industrial Development Authority, IDR,
Contel Cellular of El Paso Inc. Project, Series
1985) LOC Bank of Nova Scotia...................
VRDN (A) 5.687 1,500,000
9,000 Grayson County, (Industrial Development Corp.,
Aluminum Co. of America)........................
VRDN (A) 3.650 9,000,000
20,000 Harris County, (Health Facilities Development
Corp., Texas Health Care System, Sisters of
Charity Incarnate, Series 1995) LOC Credit
Suisse..........................................
CP 10/17/95 3.750 20,000,000
12,200 Harris County, (Health Facilities Development
Corp., Texas Health Care System, Sisters of
Charity Incarnate, Series 1995) LOC Toronto
Dominion........................................
CP 10/11/95 3.400 12,200,000
10,000 Harris County, (Series 1995)......................
TAN 02/28/96 4.250 10,033,649
17,900 Texas (Public Finance Authority, Series P-3)......
CP 10/12/95 3.750 17,900,000
1,700 Texas, (Higher Education Authority, Education &
Equipment Revenue, Series 1985A) FGIC Insured...
VRDN (A) 3.550 1,700,000
4,000 Texas, (Sabine River Authority, PCR, Utilities
Electric Co., Refunding, Series 1995 B), LOC
Union Bank of Switzerland.......................
VRDN (A) 3.600 4,000,000
10,500 Texas, (Series 1995 A)............................
TRAN 08/31/96 4.750 10,565,310
-------------
Total Texas....................................... 101,898,959
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
25
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY
(IN THOUSANDS) SECURITY DESCRIPTION TYPE MATURITY DATE RATE VALUE
- -------------- -------------------------------------------------- --------- ------------- ------ -------------
<C> <S> <C> <C> <C> <C>
VERMONT (0.7%)
$ 7,700 Vermont, (Student Assistance Corp., Student Loan
Revenue Bond, Series 1985) LOC National
Westminster Bank................................
VRDN (A) 3.700% $ 7,700,000
-------------
VIRGINIA (1.0%)
2,945 Chesterfield County, (Improvement and Refunding
Bond, Series 1991)..............................
VRDN (A) 3.650 2,945,000
4,000 Fairfax County, (Virginia Public Improvement,
Series 1995 A)..................................
GO 06/01/96 7.000 4,090,087
1,000 Virginia Beach, (Development Authority, IDR,
Norfolk Virginia Beach, Portsmouth MSA Limited
Partnership Project) LOC Bank of Nova Scotia....
VRDN (A) 5.687 1,000,000
2,500 Virginia, (State Housing Development Authority,
AHC Service Corp., Series 1987 A) LOC Mitsubishi
Bank LTD........................................
VRDN (A) 3.750 2,500,000
-------------
Total Virginia.................................... 10,535,087
-------------
WASHINGTON (0.3%)
2,400 Port of Seattle (Industrial Development
Corporation, IDR, Douglas Management Co.
Project, 1985 Series) LOC Banque Paribas........
VRDN (A) 3.700 2,400,000
500 Port of Seattle (Industrial Development
Corporation, IDR, Alaska Airlines Inc., Series
1984) LOC Bank of N.Y...........................
VRDN (A) 4.200 500,000
-------------
Total Washington.................................. 2,900,000
-------------
WEST VIRGINIA (0.1%)
1,000 County of Mercer, (IDR, Refunding, Noland Co.
Project, Series 1989) LOC Wachovia Bank and
Trust...........................................
VRDN (A) 3.675 1,000,000
-------------
WISCONSIN (1.1%)
2,500 Marshfield, (IDR, Beatrice Cheese Inc. Project,
Series 1984) LOC Wachovia Bank and Trust........
VRDN (A) 3.675 2,500,000
1,300 Seymour, (IDR, Beatrice Cheese Inc. Project,
Series 1984) LOC Wachovia Bank and Trust........
VRDN (A) 3.675 1,300,000
8,500 Wisconsin (Custodial Receipt Certificates)........
TPP (A) 3.800 8,500,000
-------------
Total Wisconsin................................... 12,300,000
-------------
WYOMING (0.4%)
4,200 Lincoln County, (Wyoming Pollution Control, PCR,
Exxon Corp. Project, Series 1985)...............
VRDN (A) 3.500 4,200,000
-------------
TOTAL INVESTMENTS (102.9%)........................ 1,119,512,224
LIABILITIES NET OF OTHER ASSETS (-2.9%)........... (31,072,371)
-------------
NET ASSETS (100.0%)............................... $1,088,439,853
-------------
-------------
</TABLE>
(A) Variable Rate Demand Note tender dates and/or interest rates are reset at
specified intervals which coincide with their tender feature.
(B) The date listed under the heading maturity date represents an optional
tender date. The actual maturity date is indicated in the security
description.
The Accompanying Notes are an Integral Part of the Financial Statements.
26
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
Note: Abbreviations used in the schedule of investments are as
follows:
CP - Commercial Paper
FGIC - Financial Guaranty Insurance Company
GO - General Obligation
IDR - Industrial Development Revenue
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance Corp.
PCR - Pollution Control Revenue
RAN - Revenue Anticipation Note
RAW - Revenue Anticipation Warrants
RB - Revenue Bond
TAN - Tax Anticipation Note
TPP - Third Party Put
TRAN - Tax Revenue Anticipation Note
VRDN - Variable Rate Demand Note
The Accompanying Notes are an Integral Part of the Financial Statements.
27
<PAGE>
TAX EXEMPT MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Amortized Cost and Value $1,119,512,224
Cash 634,115
Interest Receivable 7,889,270
Receivable for Investments Sold 1,817,019
Prepaid Expenses 2,601
-------------
Total Assets 1,129,855,229
-------------
LIABILITIES
Payable for Investments Purchased 40,765,310
Financial and Fund Accounting Services Fee Payable 311,575
Advisory Fee Payable 178,415
Custody Fee Payable 100,329
Fund Services Fee Payable 7,325
Administration Fee Payable 5,718
Accrued Expenses 46,704
-------------
Total Liabilities 41,415,376
-------------
NET ASSETS
Applicable to Investors' Beneficial Interests $1,088,439,853
-------------
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
28
<PAGE>
TAX EXEMPT MONEY MARKET PORTFOLIO
STATEMENTS OF OPERATIONS
FOR THE FISCAL YEAR ENDED AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
$ 44,338,836
Interest
EXPENSES
Advisory Fee $2,150,291
Custodian Fees and Expenses 236,844
Financial and Fund Accounting Services Fee 169,754
Fund Services Fee 110,325
Administration Fee 72,729
Professional Fees 48,020
Trustees' Fees and Expenses 24,664
Insurance Premium Expense 15,370
Printing Expenses 12,000
Registration Fees 610
Miscellaneous 2,001
----------
(2,842,608)
Total Expenses
------------
41,496,228
NET INVESTMENT INCOME
(266,979)
NET REALIZED LOSS ON INVESTMENTS
------------
$ 41,229,249
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
29
<PAGE>
TAX EXEMPT MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FISCAL FOR THE FISCAL
YEAR ENDED YEAR ENDED
AUGUST 31, 1995 AUGUST 31, 1994
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 41,496,228 $ 24,446,505
Net Realized Loss on Investments (266,979) (13,933)
--------------- ---------------
Net Increase in Net Assets Resulting from Operations 41,229,249 24,432,572
--------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 4,119,755,028 4,178,991,353
Withdrawals (4,094,390,648) (4,226,184,823)
--------------- ---------------
Net Increase (Decrease) from Investors' Transactions 25,364,380 (47,193,470)
--------------- ---------------
Total Increase (Decrease) in Net Assets 66,593,629 (22,760,898)
NET ASSETS
Beginning of Fiscal Year 1,021,846,224 1,044,607,122
--------------- ---------------
End of Fiscal Year $ 1,088,439,853 $ 1,021,846,224
--------------- ---------------
--------------- ---------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 12, 1993
(COMMENCEMENT
FOR THE FISCAL FOR THE FISCAL OF OPERATIONS)
YEAR ENDED YEAR ENDED TO
AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993
--------------- --------------- ---------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.25% 0.25% 0.25%(a)
Net Investment Income 3.61% 2.37% 2.28%(a)
</TABLE>
- ------------------------
(a) Annualized
The Accompanying Notes are an Integral Part of the Financial Statements.
30
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Tax Exempt Money Market Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, (the "Act") as a no-load,
diversified, open-end management investment company which was organized as a
trust under the laws of the State of New York. The Portfolio commenced
operations on July 12, 1993 and received a contribution of certain assets and
liabilities, including securities, with a value of $955,814,753 on that date
from The Pierpont Tax Exempt Money Market Fund in exchange for a beneficial
interest in the Portfolio. The Declaration of Trust permits the Trustees to
issue an unlimited number of beneficial interests in the Portfolio.
The following is a summary of the significant accounting policies of the
Portfolio:
a)Investments are valued at amortized cost which approximates market value.
The amortized cost method of valuation values a security at its cost at
the time of purchase and thereafter assumes a constant amortization to
maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the market value of the instruments.
b)Securities transactions are recorded on a trade date basis. Investment
income consists of interest income, which includes the amortization of
premiums and discounts. For financial and tax reporting purposes, realized
gains and losses are determined on the basis of specific lot
identification.
c)The Portfolio will be treated as a partnership for federal income tax
purposes. As such, each investor in the Portfolio will be subject to
taxation on its share of the Portfolio's ordinary income and capital
gains. It is intended that the Portfolio's assets will be managed in such
a way that an investor in the Portfolio will be able to satisfy the
requirements of Subchapter M of the Internal Revenue Code. The cost of
securities is substantially the same for book and tax.
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 0.20%
of the Portfolio's average daily net assets up to $1 billion and 0.10% on
any excess over $1 billion. For the fiscal year ended August 31, 1995,
this fee amounted to $2,150,291.
b)The Portfolio retains Signature Broker-Dealer Services, Inc. ("Signature")
to serve as Administrator and exclusive placement agent. Signature
provides administrative services necessary for the operations of the
Portfolio, furnishes office space and facilities required for conducting
the business of the Portfolio and pays the compensation of the Portfolio's
officers affiliated with Signature. The agreement provides for a fee to be
paid to Signature at an annual fee rate determined by the following
schedule: 0.01% of the first $1 billion of the aggregate average daily net
assets of the Portfolio and the other portfolios subject to the
Administrative Services Agreement, 0.008% of the next $2 billion of such
net assets, 0.006% of the
31
<PAGE>
THE TAX EXEMPT MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
- --------------------------------------------------------------------------------
next $2 billion of such net assets, and 0.004% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied
daily to the net assets of the Portfolio. For the fiscal year ended August
31, 1995, such expenses amounted to $72,729.
c)During the fiscal year ended August 31, 1995, the Portfolio had a
Financial and Fund Accounting Services Agreement ("Services Agreement")
with Morgan Guaranty Trust Company of New York ("Morgan") under which
Morgan would receive a fee, based on the percentage described below, for
overseeing certain aspects of the administration and operation of the
Portfolio and was also designed to provide an expense limit for certain
expenses of the Portfolio. This fee was calculated exclusive of the
advisory fee, custody expenses, fund services fee and brokerage costs at
0.03% of the Portfolio's average daily net assets. For the fiscal year
ended August 31, 1995, the fee for these services amounted to $169,754.
Effective September 1, 1995, the Services Agreement was terminated and an
interim agreement was entered into between the Portfolio and Morgan, which
provides for the continuation of the oversight services that were outlined
under the prior agreement without any compensation to Morgan.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's costs in performing its services
amounted to $110,325 for the fiscal year ended August 31, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of The Pierpont Funds, The JPM Institutional Funds, their
corresponding Portfolios and The Series Portfolio. The Trustees' Fees and
Expenses shown in the financial statements represent the Fund's allocated
portion of these total fees and expenses. Prior to April 1, 1995, the
aggregate annual Trustee Fee was $55,000. The Trustee who serves as
Chairman and Chief Executive Officer of these Funds and Portfolios also
serves as Chairman of Group and received compensation and employee
benefits from Group in his role as Group's Chairman. The allocated portion
of such compensation and benefits included in the Fund Services Fee shown
in the financial statements was $12,900.
32
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Investors of
The Tax Exempt Money Market Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments and the related statements of operations and of
changes in net assets and the supplementary data present fairly, in all material
respects, the financial position of The Tax Exempt Money Market Portfolio (the
"Portfolio") at August 31, 1995, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and its supplementary data for each of the two years in the period
then ended and for the period July 12, 1993 (commencement of operations) through
August 31, 1993, in conformity with generally accepted accounting principles.
These financial statements and supplementary data (hereafter referred to as
"financial statements") are the responsibility of the Portfolio's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1995 by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
New York, New York
October 24, 1995
33
