<PAGE>
THE MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT YIELD TO
(IN MATURITY/
THOUSANDS) SECURITY DESCRIPTION MATURITY DATES RATE VALUE
- ----------- ---------------------------------------- ---------------------- ------------ ---------------
<C> <S> <C> <C> <C>
CERTIFICATES OF DEPOSIT -- DOMESTIC (5.0%)
$ 33,500 Bank of America, Chicago................ 11/07/97 5.570% $ 33,484,726
25,000 Bank of America Nationale Trust &
Savings Association.................... 02/12/97 4.900 24,997,587
15,000 Bank of New York........................ 04/01/97 5.550 14,996,536
25,000 Chase Manhattan......................... 12/30/96 5.750 25,000,000
42,825 First Union Bank of North Carolina...... 02/18/97 5.360 42,825,000
50,000 National Bank of Detroit................ 01/03/97 5.200 49,995,615
---------------
TOTAL CERTIFICATES OF DEPOSIT --
DOMESTIC............................... 191,299,464
---------------
CERTIFICATES OF DEPOSIT -- FOREIGN (34.5%)
32,000 Bank of Montreal, Chicago............... 01/10/97 5.360 32,000,000
158,500 Banque Nationale de Paris Ltd., New
York................................... 12/03/96-04/11/97 5.330-5.750 158,496,834
30,300 Bayerische Landesbank, New York......... 12/09/96-11/21/97 5.310-5.500 30,286,461
51,150 Bayerische Vereinsbank AG, New York..... 10/28/97 5.680 51,127,776
88,500 Canadian Imperial Bank of Commerce...... 12/19/96 5.270 88,500,000
50,000 Commerzbank U.S. Finance, Inc........... 12/13/96 5.290 50,000,166
38,500 Credit Agricole, Chicago................ 12/30/96 5.420 38,500,182
11,500 Deutsche Bank........................... 11/10/97 5.550 11,494,350
175,000 Landesbank Hessen Thuringen............. 07/18/97 6.010 175,331,454
35,000 Rabobank Nederland N. V................. 12/27/96 5.540 35,000,249
59,000 Royal Bank of Canada, New York.......... 05/13/97-05/15/97 5.745-5.810 59,005,348
150,000 Sanwa Bank Ltd. Yankee CD............... 12/09/96-01/15/97 5.360-5.500 150,000,186
196,000 Societe Generale, New York.............. 12/05/96-10/06/97 5.280-5.840 195,982,211
130,000 Sumitomo Bank Yankee CD................. 12/03/96-01/21/97 5.500-5.520 130,000,000
48,400 Swiss Bank Corp., New York.............. 12/18/96 5.530 48,400,226
50,000 Union Bank of Switzerland............... 12/13/96 5.500 50,000,000
25,000 Westpac Banking Corp. Yankee CD......... 12/27/96 5.570 25,000,356
---------------
TOTAL CERTIFICATES OF DEPOSIT --
FOREIGN................................ 1,329,125,799
---------------
COMMERCIAL PAPER -- DOMESTIC (17.1%)
20,976 AI Credit Corp.......................... 12/03/96-12/17/96 5.240 20,961,791
40,000 American Express Co..................... 12/16/96 5.260 39,912,333
73,000 American Express Credit Corp............ 01/02/97 5.250 72,659,334
25,000 Bank of New York........................ 12/12/96 5.270 24,959,743
25,000 Bankers Trust........................... 12/27/96 5.600 24,898,889
7,000 Bellsouth Capital Funding Corp.......... 12/02/96 5.300 6,998,969
22,458 Campbell Soup Co........................ 12/20/96 5.270 22,395,536
24,024 CIT Group Holdings Inc.................. 12/19/96 5.250 23,960,937
25,000 Deere & Co.............................. 01/24/97 5.330 24,800,125
116,000 Ford Motor Credit Corp.................. 12/05/96-12/20/96 5.250 115,780,083
5,600 General Electric Capital Corp........... 12/04/96 5.250 5,597,550
25,000 H.J. Heinz Co........................... 12/09/96 5.230 24,970,944
45,300 J.C. Penny Funding Corp................. 12/11/96-12/16/96 5.250-5.270 45,230,987
51,000 Koch Industries Inc..................... 12/02/96 5.350 50,992,421
10,000 PACCAR Financial Corp................... 12/06/96 5.300 9,992,639
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT YIELD TO
(IN MATURITY/
THOUSANDS) SECURITY DESCRIPTION MATURITY DATES RATE VALUE
- ----------- ---------------------------------------- ---------------------- ------------ ---------------
COMMERCIAL PAPER -- DOMESTIC (CONTINUED)
<C> <S> <C> <C> <C>
$ 2,732 PepsiCo Inc............................. 12/13/96 5.270% $ 2,727,201
65,000 Raytheon Co............................. 12/20/96 5.270 64,819,210
26,000 Republic Bank of New York............... 12/10/96 5.250 25,965,875
7,000 Southern Co............................. 12/09/96 5.250 6,991,833
20,800 Unilever Capital Corp................... 12/13/96 5.250 20,763,600
18,930 Warner Lambert Co....................... 12/02/96 5.230 18,927,250
3,365 Xerox Credit Corp....................... 12/09/96-12/18/96 5.240-5.270 3,358,434
---------------
TOTAL COMMERCIAL PAPER -- DOMESTIC...... 657,665,684
---------------
COMMERCIAL PAPER -- FOREIGN (15.2%)
57,165 Bayerische Vereinsbank.................. 12/04/96-12/17/96 5.250-5.430 57,069,542
90,000 Caisse D'Amortissement.................. 06/06/97 5.290 87,526,925
40,000 Canadian Imperial Holding Inc........... 12/10/96 5.444 39,945,560
37,000 Commonwealth Bank of Australia.......... 12/30/96 5.320 36,841,434
78,561 Creditanstalt Finance Inc............... 12/04/96-12/12/96 5.250 78,482,808
21,900 Deutsche Bank Finance Inc............... 12/03/96 5.270 21,893,588
22,020 Dresdner Bank U.S. Finance Inc.......... 12/05/96 5.250 22,007,155
18,000 Glaxo Wellcome PLC...................... 12/09/96 5.420 17,978,320
50,000 National Australia Funding.............. 12/02/96 5.290 49,992,653
55,000 Ontario Hydro........................... 12/04/96-12/30/96 5.240-5.370 54,862,179
26,300 Seagram, Joseph E. & Sons Inc........... 12/11/96 5.250 26,261,646
24,000 Swiss Bank Corp., New York.............. 12/27/96 5.300 23,905,013
69,000 UBS Finance Delaware Inc................ 12/04/96 5.340 68,969,295
---------------
TOTAL COMMERCIAL PAPER -- FOREIGN....... 585,736,118
---------------
CORPORATE OBLIGATIONS (3.2%)
75,000 Abbey National Treasury Services, PLC... 11/03/97-11/21/97 5.500-5.640 74,953,304
15,000 General Electric Capital Corp........... 01/31/97 5.080 14,999,699
25,000 John Deere Capital Corp................. 07/03/97 5.850 24,989,740
9,000 Old Kent Bank & Trust Co................ 01/15/97 5.125 9,000,000
---------------
TOTAL CORPORATE OBLIGATIONS............. 123,942,743
---------------
FLOATING RATE NOTES (7.3%) (a)
53,000 Abbey National Treasury Services, PLC,
(resets monthly to one month LIBOR
-12.5 basis points, due 05/16/97)...... 12/18/96(b) 5.250 52,982,004
72,500 Asset Backed Securities Investment
Trust, Series 1996-M, (resets monthly
to one month LIBOR, due 10/15/97)
(144A)................................. 12/15/96(b) 5.375 72,500,000
20,000 Federal National Mortgage Association,
(resets weekly to six month Treasury
Bill rate +10 basis points, due
06/11/97).............................. 12/10/96(b) 5.370 19,991,850
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT YIELD TO
(IN MATURITY/
THOUSANDS) SECURITY DESCRIPTION MATURITY DATES RATE VALUE
- ----------- ---------------------------------------- ---------------------- ------------ ---------------
FLOATING RATE NOTES (CONTINUED)
<C> <S> <C> <C> <C>
$ 94,622 Natwest Asset Trust Securities, Series
R-13/14A, (resets monthly to one month
LIBOR +2 basis points, due 09/15/03)
(144A)................................. 12/15/96(b) 5.395% $ 94,622,000
40,000 Society National Bank of Cleveland,
(resets daily to the Fed Funds rate +8
basis points, due 07/08/97)............ 12/4/96(b) 5.500 39,983,656
---------------
TOTAL FLOATING RATE NOTES............... 280,079,510
---------------
TIME DEPOSITS -- FOREIGN (0.3%)
13,203 Banque Nationale de Paris, Grand
Cayman................................. 12/02/96 5.375 13,203,000
---------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (4.8%)
30,000 Federal Farm Credit Bank................ 12/02/96 5.400 29,999,868
1,060 Federal Home Loan Banks................. 06/27/97 5.875 1,059,245
73,430 Federal Home Loan Mortgage Corp......... 12/02/96 5.330-5.700 73,418,679
79,500 Federal National Mortgage Association... 12/04/96-12/18/96 5.370-5.410 79,497,955
---------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS............................ 183,975,747
---------------
U.S. TREASURY OBLIGATIONS (2.6%)
97,500 United States Treasury Notes............ 01/31/97 7.500 97,874,271
---------------
REPURCHASE AGREEMENTS (9.3%)
357,587 Goldman Sachs Repurchase Agreements,
dated 11/29/96, proceeds $357,827,145
(collateralized by $263,308,000 U.S.
Treasury Notes 6.250%-7.500%, due
02/28/97-11/15/01 valued at
$270,636,657; $95,642,000 U.S. Treasury
Bills 0.000%, due 03/06/97-04/24/97
valued at $94,102,422) (cost
$357,587,000).......................... 12/02/96 5.350-5.660 357,587,000
---------------
TOTAL INVESTMENTS AT AMORTIZED COST AND VALUE (99.3%) 3,820,489,336
OTHER ASSETS IN EXCESS OF LIABILITIES (0.7%) 27,760,581
---------------
NET ASSETS (100.0%) $ 3,848,249,917
---------------
---------------
</TABLE>
(a) The Coupon rate shown on floating or adjustable rate securities represents
the rate at the end of the reporting period. The due date in the security
description reflects the final maturity date.
(b) Reflects the next interest rate reset date.
144A -- Securities restricted for resale to Qualified Institutional Buyers.
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Amortized Cost and Value $3,820,489,336
Cash 2,198
Interest Receivable 28,466,958
Prepaid Trustees' Fees 6,237
Prepaid Expenses and Other Assets 13,201
--------------
Total Assets 3,848,977,930
--------------
LIABILITIES
Advisory Fee Payable 409,662
Custody Fee Payable 119,011
Administrative Services Fee Payable 102,973
Administration Fee Payable 56,064
Fund Services Fee Payable 5,425
Accrued Expenses 34,878
--------------
Total Liabilities 728,013
--------------
NET ASSETS
Applicable to Investors' Beneficial Interests $3,848,249,917
--------------
--------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest Income $191,789,557
EXPENSES
Advisory Fee $4,503,793
Administrative Services Fee 891,730
Custodian Fees and Expenses 588,354
Administration Fee 306,001
Fund Services Fee 157,428
Trustees' Fees and Expenses 63,351
Professional Fees and Expenses 48,407
Miscellaneous 30,508
----------
Total Expenses 6,589,572
Less: Reimbursement of Expenses (9,993)
----------
NET EXPENSES 6,579,579
------------
NET INVESTMENT INCOME 185,209,978
NET REALIZED GAIN ON INVESTMENTS 267,432
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $185,477,410
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FISCAL FOR THE FISCAL
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1995
----------------- -----------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 185,209,978 $ 168,180,713
Net Realized Gain on Investments 267,432 1,573,477
----------------- -----------------
Net Increase in Net Assets Resulting from
Operations 185,477,410 169,754,190
----------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 18,847,392,256 17,654,676,133
Withdrawals (18,519,575,165) (17,137,148,786)
----------------- -----------------
Net Increase from Investors' Transactions 327,817,091 517,527,347
----------------- -----------------
Total Increase in Net Assets 513,294,501 687,281,537
NET ASSETS
Beginning of Fiscal Year 3,334,955,416 2,647,673,879
----------------- -----------------
End of Fiscal Year $ 3,848,249,917 $ 3,334,955,416
----------------- -----------------
----------------- -----------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FISCAL FOR THE PERIOD
YEAR ENDED JULY 12, 1993
NOVEMBER 30, (COMMENCEMENT
------------------ OF OPERATIONS) TO
1996 1995 1994 NOVEMBER 30, 1993
---- ---- ---- -----------------
<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.19% 0.19% 0.20% 0.19%(a)
Net Investment Income 5.29% 5.77% 3.90% 2.98%(a)
Decrease Reflected in Expense Ratio due to
Expense Reimbursement 0.00%(b) -- 0.00%(b) --
</TABLE>
- ------------------------
(a) Annualized
(b) Less than 0.01%
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The 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's investment objective is to maximize
current income and maintain a high level of liquidity. The Portfolio commenced
operations on July 12, 1993. The Declaration of Trust permits the Trustees to
issue an unlimited number of beneficial interests in the Portfolio.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual amounts could differ from
those estimates. 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.
The Portfolio's custodian or designated subcustodians, as the case may be
under tri-party repurchase agreements, take possession of the collateral
pledged for investments in repurchase agreements on behalf of the
Portfolio. It is the policy of the Portfolio to value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to the repurchase price plus
accrued interest. In the event of default of the obligation to repurchase,
the Portfolio has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances,
in the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral or proceeds may be subject
to legal proceedings.
b)Securities transactions are recorded on a trade date basis. Investment
income consists of interest income, which includes the amortization of
premiums and discounts, is recorded on an accrual basis. For financial and
tax reporting purposes, realized gains and losses are determined on the
basis of specific lot identification.
c)The Portfolio intends to 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 the same for book and tax purposes.
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 November 30, 1996,
this fee amounted to $4,503,793.
25
<PAGE>
THE MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
b)The Portfolio had retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and exclusive placement agent.
Under an Administration Agreement, Signature provided administrative
services necessary for the operations of the Portfolio, furnished office
space and facilities required for conducting the business of the Portfolio
and paid the compensation of the Portfolio's officers affiliated with
Signature. Until December 28, 1995, the agreement provided 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 agreement,
0.008% of the next $2 billion of such net assets, 0.006% of the 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 was applied each day to the
net assets of the Portfolio. For the period from December 1, 1995 through
December 28, 1995, Signature's fee for these services amounted to $14,797.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged was equal to the Portfolio's proportionate share of a
complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios (the "Master Portfolios") in which The
JPM Pierpont Funds, The JPM Institutional Funds or The JPM Advisor Funds
invest and 0.01% on the aggregate average daily net assets of the Master
Portfolios in excess of $7 billion. The portion of this charge paid by the
Portfolio was determined by the proportionate share its net assets bore to
the total net assets of The JPM Pierpont Funds, The JPM Institutional
Funds, The JPM Advisor Funds and the Master Portfolios. For the period
from December 29, 1995 through July 31, 1996, such fees for these services
amounted to $258,192. The Administration Agreement with Signature was
terminated July 31, 1996.
Effective August 1, 1996, certain administrative functions formerly
provided by Signature are provided by Funds Distributor, Inc. ("FDI"), a
registered broker-dealer, and by Morgan. FDI also serves as the
Portfolio's exclusive placement agent. Under a Co-Administration Agreement
between FDI and the Portfolio, the Portfolio has agreed to pay FDI fees
equal to its allocable share of annual complex-wide charge of $425,000
plus FDI's out-of-pocket expenses. The amount allocable to the Portfolio
is based on the ratio of the Portfolio's net assets to the aggregate net
assets of The JPM Pierpont Funds, The JPM Institutional Funds, The JPM
Advisor Funds and the Master Portfolios. For the period from August 1,
1996 through November 30, 1996, the fee for these services amounted to
$33,012.
c)Until August 31, 1995, the Portfolio had a Financial and Fund Accounting
Services Agreement with Morgan which provided that Morgan would receive a
fee, based on the percentages described below, for overseeing certain
aspects of the administration and operation of the Portfolio and that 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 and fund services fee at 0.03% of the Portfolio's average daily
net assets. From September 1, 1995 until December 28, 1995, an interim
agreement between the Portfolio and Morgan provided for the continuation
of the oversight functions that were outlined under the prior agreement
and that Morgan should bear all of its expenses incurred in connection
with these services.
Effective December 29, 1995, the Portfolio entered into an Administrative
Services Agreement (the "Services Agreement") with Morgan under which
Morgan is responsible for overseeing certain aspects
26
<PAGE>
THE MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
of the administration and operation of the Portfolio. Under the Services
Agreement, the Portfolio had agreed to pay Morgan a fee equal to its
proportionate share of an annual complex-wide charge. Until July 31, 1996,
this charge was calculated daily based on the aggregate net assets of the
Master Portfolios in accordance with the following annual schedule: 0.06%
on the first $7 billion of the Master Portfolios' aggregate average daily
net assets and 0.03% of the Master Portfolios' aggregate average daily net
assets in excess of $7 billion. The portion of this charge paid by the
Portfolio was determined by the proportionate share its net assets bore to
the net assets of the Master Portfolios and other investors in the Master
Portfolios for which Morgan provided similar services. For the period from
December 29, 1995 through July 31, 1996, the fee for these services
amounted to $493,282.
Effective August 1, 1996, the Services Agreement was amended such that the
annual complex-wide charge is calculated daily based on the aggregate net
assets of the Master Portfolios in accordance with the following annual
schedule: 0.09% on the first $7 billion of the Master Portfolios'
aggregate average daily net assets and 0.04% of the Master Portfolios'
aggregate average daily net assets in excess of $7 billion less the
complex-wide fees payable to FDI. The allocation of the Portfolio's
portion of this charge is described above. For the period from August 1,
1996 through November 30, 1996, the fee for these services amounted to
$398,448.
In addition, Morgan has agreed to reimburse the Portfolio to the extent
necessary to maintain the total operating expenses of the Portfolio at no
more than 0.20% of the average daily net assets of the Portfolio through
March 31, 1997. For the fiscal year ended November 30, 1996, Morgan
reimbursed the Portfolio $9,993 for expenses under this agreement.
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 $157,428 for the fiscal year ended November 30, 1996.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of The JPM Pierpont Funds, The JPM Institutional Funds and the
Master Portfolios. The Trustees' Fees and Expenses shown in the financial
statements represents the Portfolio's allocated portion of the total fees
and expenses. The Portfolio's Chairman and Chief Executive Officer 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 $20,200.
27
<PAGE>
Report of Independent Accountants
To the Trustees and Investors of
The 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 Money Market Portfolio (the "Portfolio")
at November 30, 1996, 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 the supplementary data for each of the three years in the period then ended,
and for the period July 12, 1993 (commencement of operations) through November
30, 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
November 30, 1996 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
New York, New York
January 16, 1997
28
