<PAGE>
- --------------------------------------------------------------------------------
A Letter To Our Shareholders
Dear Shareholder:
Money market securities produced competitive returns commensurate with low
levels of risk during the six-month period ended February 28, 1997. When the
period began, the economic environment was one of subdued growth, unchanged
monetary policy, relatively low interest rates and low inflation, albeit with a
moderately upward bias. These conditions soon changed: the fourth quarter of
1996 saw more robust economic growth than most economists had expected. Yet, the
absence of accompanying inflationary pressures has enabled the Federal Reserve
Board to hold monetary policy steady and keep interest rates low. Excelsior
Institutional Money Fund's annualized current 7-day yield for the period ended
February 28, 1997 was 5.31% and for the same period the Fund's annualized
effective 7-day yield was 5.45% after taking into account the effect of
compounding.*
Throughout the period, the Portfolio was managed in a manner consistent
with providing liquidity and as high a level of current income as is consistent
with the preservation of capital. Through its investment in the Portfolio,
Excelsior Institutional Money Fund seeks to offer an attractive yield and a
competitive expense ratio by investing in a high-quality portfolio of short-
term domestic and foreign dollar denominated money market instruments.
This Semi-Annual Report reviews the Fund and Portfolio's investment
activities and performance over the past six months. On behalf of the Board of
Trustees and staff of Excelsior Funds, I want to extend our sincere appreciation
to all of our shareholders. We thank you for your confidence and participation
and we look forward to continuing to help you achieve your financial goals.
/s/ Frederick S. Wonham
- ------------------------------
Frederick S. Wonham
Chairman of the Board and President
April 21, 1997
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
The shares of the Fund are neither insured nor guaranteed by the U.S.
Government. While the Fund seeks to maintain a stable net asset value of $1.00
per share, there can be no assurance that it will be able to do so on a
continuing basis.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY OR GUARANTEED BY,
OBLIGATIONS OF OR OTHERWISE SUPPORTED BY THE U.S. GOVERNMENT, THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE BANK INSURANCE FUND, THE FEDERAL RESERVE
BOARD, OR ANY OTHER GOVERNMENTAL AGENCY. AN INVESTMENT IN THE FUND IS SUBJECT TO
INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
<PAGE>
Excelsior Institutional Money Fund
- --------------------------------------------------------------------------------
Statement Of Assets And Liabilities February 28, 1997 (unaudited)
<TABLE>
<S> <C>
Assets:
Investment in Cash Reserves Portfolio (the "Portfolio"), at value
Note 1) ..............................................................
$278,737,708
Deferred organization expenses (Note 1) ..............................
71,732
-------------
Total assets ........................................................
278,809,440
-------------
Liabilities:
Dividends payable ....................................................
731,047
Shareholder servicing fees payable (Note 2) ..........................
299,508
Organization expenses payable (Note 1) ..............................
36,540
Administration fees payable (Note 2) ................................
7,957
Sub-transfer agent fees payable (Note 2) ............................
9,067
Other accrued expenses ..............................................
25,283
-------------
Total liabilities ..................................................
1,109,402
-------------
Net Assets for 277,700,038 shares of beneficial interest outstanding
$277,700,038
=============
Represented by:
Paid - in capital ....................................................
$277,700,038
=============
Net Asset Value, Offering Price and Redemption Price Per Share ......
$ 1.00
=============
</TABLE>
Excelsior Institutional Money Fund
- --------------------------------------------------------------------------------
Statement Of Operations
Six Months Ended February 28, 1997 (unaudited)
<TABLE>
<S> <C> <C>
Investment Income from Portfolio (Note 1):
Interest Income (includes $17,862 of net realized gains)...... $ 9,232,054
Allocated expenses .......................................... (165,796)
------------
Net investment income from Portfolio ..................... 9,066,258
Expenses (Note 1):
Shareholder servicing fees (Note 2) .......................... $ 411,275
Administration fees (Note 2) ................................ 16,451
Professional fees .......................................... 68,001
Registration fees .......................................... 27,832
Amortization of organization expenses (Note 1) .............. 21,159
Insurance expense .......................................... 15,000
Sub-transfer agent fees (Note 2) ............................ 12,903
Trustees' fees and expenses (Note 2) ........................ 10,750
Prospectus and shareholders' reports ........................ 9,927
Miscellaneous expenses ...................................... 2,195
-----------
Total expenses ........................................... 595,493
Less: Waiver of shareholder servicing fees (Note 2) ..... (346,191)
-----------
Net expenses ............................................. 249,302
------------
Net investment income from operations ........................ $ 8,816,956
============
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Money Fund
- --------------------------------------------------------------------------------
Statement Of Changes In Net Assets
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1997 Year Ended
(unaudited) August 31, 1996
-------------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Net investment income from operations .................... $ 8,816,956 $ 24,959,689
---------------- ----------------
Dividends to shareholders from net investment income ...... (8,816,956) (24,959,689)
---------------- ----------------
Transactions in Shares of Beneficial Interest
($1.00 Per Share)
Net proceeds from shares sold ............................ 2,034,551,281 7,575,712,521
Reinvestment of dividends ................................ 3,903,723 10,759,256
Cost of shares redeemed .................................. (2,054,044,484) (7,931,293,122)
---------------- ----------------
Net decrease in net assets resulting from
transactions in shares of beneficial interest .......... (15,589,480) (344,821,345)
---------------- ----------------
Total decrease in net assets ............................ (15,589,480) (344,821,345)
Net Assets:
Beginning of period ...................................... 293,289,516 638,110,861
---------------- ----------------
End of period ............................................ $ 277,700,036 $ 293,289,516
================ ================
</TABLE>
Excelsior Institutional Money Fund
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
For the Period
Six November 8, 1993
Months Ended (Commencement of
February 28, 1997 Year Ended August 31, Operations) to
(unaudited) 1996 1995 August 31, 1994
-------------------- ------------- ------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income from operations ................ 0.0263 0.0547 0.0579 0.0308
Dividends from net investment income ................ (0.0263) (0.0547) (0.0579) (0.0308)
------------ ---------- ---------- ------------
Net Asset Value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ========== ========== ============
Total Return ........................................ 5.39%(2) 5.61% 5.95% 3.87%(2)
Ratios:
Net investment income to average net assets(1) ...... 5.31%(2) 5.55% 5.59% 4.39%(2)
Expenses to average net assets(1) .................. 0.25%(2) 0.25% 0.25% 0.19%(2)
Total net assets, end of period (000's omitted) ...... $ 277,700 $ 293,290 $ 638,111 $ 770,658
- ------------
(1) Reflects the Fund's proportionate share of the Portfolio's expenses as well as voluntary fee waivers by agents of the Port-
folio and the Trust. If the voluntary fee waivers had not been in place, the ratios of net investment income and expenses to
average net assets would have been as follows:
Net investment income to average net assets ........ 5.10%(2) 5.11% 5.16% 4.28%(2)
Expenses to average net assets ...................... 0.46%(2) 0.69% 0.68% 0.31%(2)
(2) Annualized.
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Money Fund
- --------------------------------------------------------------------------------
Notes To Financial Statements (unaudited)
(1) Significant Accounting Policies
Excelsior Institutional Money Fund (the "Fund") is a series of Excelsior Funds
(the "Trust") and is registered under the Investment Company Act of 1940 as an
open-end diversified management investment company. Signature Broker-Dealer
Services, Inc., ("Signature") serves as administrator and distributor to the
Fund.
It is the Fund's policy, to the extent possible, to maintain a continuous net
asset value per share of $1.00; the Fund has adopted certain investment,
valuation, dividend and distribution policies to enable it to do so.
The Fund invests all of its investable assets in Cash Reserves Portfolio (the
"Portfolio"), an open-end diversified management investment company for which
Citibank, N.A. serves as Investment Adviser. The value of such investment
reflects the Fund's proportionate interest in the net assets of the Portfolio
(5.01% at February 28, 1997).
The financial statements of the Portfolio, including the Portfolio of
Investments, are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements and are based,
in part, on the following accounting policies. Actual results could differ from
those estimates.
A. Investment Valuation -- Valuation of securities by the Portfolio is discussed
in Note 1A of the Portfolio's Notes to Financial Statements, which are included
elsewhere in this report.
B. Investment Income -- The Fund earns interest income, net of Portfolio
expenses, daily on its investment in the Portfolio. Realized gain and loss from
securities transactions are recorded by the Portfolio on the identified cost
basis, when recognized, and allocated to the Fund, along with net investment
income, based on its investment in the Portfolio.
C. Dividends to Shareholders -- Dividends from net investment income are
declared daily and paid monthly. Distributions from net realized gains or
losses, if any, are declared daily as income and paid monthly.
D. Federal Income Taxes -- It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is in the best interest of
the shareholders, by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies, and by distributing
substantially all of its taxable earnings to its shareholders.
E. Expenses -- The Fund bears all costs of its operations other than expenses
specifically assumed by Signature.
F. Deferred Organization Expenses -- Organization expenses have been deferred
and are being amortized on a straight-line basis over a period not to exceed
five years beginning with the commencement of operations of the Fund. The amount
paid by the Fund on any redemption of the Fund's Initial Shares, will be reduced
by the pro rata portion of any unamortized organization expenses which the
number of Initial Shares redeemed bears to the total number of Initial Shares
outstanding immediately prior to such redemption.
G. Other -- All the net income of the Portfolio is allocated pro rata among the
Fund and the other investors in the Portfolio at the time of such determination.
(2) Administration Fee And Other Transactions With Affiliates
A. Pursuant to an Administrative Services Agreement ("the Agreement"), Signature
provides management and administrative services necessary for the operations of
the Trust and furnishes office facilities required for conducting the business
of the Trust. Certain officers of Signature serve as officers of the Trust and
are compensated by Signature. For its services under the Agreement, Signature
receives a fee, payable monthly, at an annual rate of 0.01% of the average daily
net assets of the Fund, subject to an annual minimum payment of $20,000. For the
six months ended February 28, 1997, the Fund accrued administration fees
totaling $16,451. Signature receives no compensation from the Fund in its
capacity as distributor of the Fund's shares.
<PAGE>
Excelsior Institutional Money Fund
- --------------------------------------------------------------------------------
Notes To Financial Statements (unaudited) continued
For the six months ended February 28, 1997, Chase Global Funds Services Company
("CGFSC"), received fees amounting to $12,903, for providing sub-transfer agency
services to the Fund. CGFSC may from time to time perform certain sub-
administrative duties for the Fund and is entitled to receive compensation for
its services. All such compensation will be paid by Signature. For the six
months ended February 28, 1997, CGFSC received no compensation from Signature
for sub-administrative services.
B. The Trust, on behalf of the Fund, has entered into administrative
servicing agreements with U.S. Trust, BISYS and Mid Atlantic Capital Group Inc.
(the "Shareholder Organizations") pursuant to which each Shareholder
Organization, as agent for its customers, provides administrative support
services. For its services, each Shareholder Organization may receive a fee from
the Fund, which may not exceed, on an annualized basis, an amount equal to 0.40%
of the average daily net assets of Fund shares owned by customers of the
Shareholder Organization. For the six months ended February 28, 1997, the
Shareholder Organizations received fees amounting to $65,084, net of $346,191
which was voluntarily waived, for providing shareholder servicing to the Fund.
C. Independent Trustees receive an annual retainer of $4,000 and an
additional $250 for each meeting of the Board of Trustees attended. In addition,
the Trust reimburses independent Trustees for reasonable expenses incurred when
acting in their capacity as Trustees.
(3) Investment Transactions
Additions and reductions in the Fund's investment in the Portfolio aggregated
$2,034,551,281, and $2,050,163,009, respectively.
(4) Subsequent Event
Effective April 1, 1997, United States Trust Company of New York, CGFSC and
Federated Administrative Services provide administrative services to the Fund
and Edgewood Services, Inc., a wholly-owned subsidiary of Federated Investors,
serves as distributor of the Fund.
<PAGE>
Cash Reserves Portfolio
- ------------------------------------------------------
Portfolio Of Investments February 28, 1997 (unaudited)
Principal
Amount
Issuer (000's omitted) Value
- --------------------------------------------------------------------------------
BANK NOTES--8.3%
Australia & New Zealand Bank
5.90%, due 09/23/97 ....................... $ 75,000 $ 74,990,702
5.645%, due 02/19/98 ...................... 115,000 114,951,064
Bayerische Landesbank
5.85%, due 09/29/97 ....................... 100,000 99,972,487
Comerica Bank, Detroit
5.77%, due 08/13/97 ....................... 100,000 99,982,584
Morgan Guaranty Trust Co. ..................
5.95%, due 06/06/97 ....................... 75,000 74,990,630
------------
464,887,467
------------
CERTIFICATES OF DEPOSIT
(EURODOLLARS)--4.5%
Abbey National PLC
6.02%, due 07/29/97 ....................... 75,000 75,000,000
Deutsche Bank
6.00%, due 07/30/97 ....................... 100,000 100,000,000
Sumitomo Bank
5.50%, due 03/27/97 ....................... 75,000 75,000,491
------------
250,000,491
------------
CERTIFICATES OF DEPOSIT
(YANKEE)--35.5%
ABN Amro Bank
5.68%, due 12/19/97 ....................... 100,000 99,968,745
Australia & New Zealand Bank
5.40%, due 03/25/97 ....................... 100,000 100,001,819
5.37%, due 03/31/97 ....................... 100,000 100,000,000
Bank of Nova Scotia
5.37%, due 03/10/97 ....................... 50,000 50,000,000
Bank of Tokyo Mitsubishi New York
5.52%, due 04/30/97 ....................... 75,000 75,000,000
Banque Nationale de Paris
5.37%, due 05/14/97 ....................... 100,000 100,005,922
Bayerische Vereinsbank
5.65%, due 02/10/98 ....................... 100,000 99,981,928
Canadian Imperial Bank
5.32%, due 03/07/97 ....................... 250,000 250,000,000
Dai Ichi Kangyo Bank
5.49%. due 03/03/97 ....................... 95,000 95,000,000
5.50%, due 03/14/97 ....................... 100,000 100,000,000
5.48%, due 05/19/97 ....................... 50,000 49,999,736
<PAGE>
Principal
Amount
Issuer (000's omitted) Value
- --------------------------------------------------------------------------------
Deutsche Bank
5.69%, due 10/28/97 ..................... $100,000 $ 99,968,631
Morgan Guaranty Trust Co. ................
5.91%, due 09/18/97 ..................... 50,000 49,997,393
5.71%, due 01/06/98 ..................... 100,000 99,967,558
Royal Bank of Canada
5.29%, due 07/09/97 ..................... 25,000 24,994,032
5.72%, due 10/29/97 ..................... 52,000 51,983,588
5.58%, due 12/11/97 ..................... 130,000 129,901,640
Sanwa Bank
5.44%, due 03/27/97 ..................... 200,000 200,000,000
5.51%, due 05/21/97 ..................... 100,000 100,004,330
Societe Generale Bank
5.75%, due 05/22/97 ..................... 100,000 99,989,506
--------------
1,976,764,828
--------------
ASSET BACKED--2.8%
Asset Backed Trust 1996
5.43%, due 01/15/98 ..................... 157,000 156,986,322
--------------
COMMERCIAL PAPER--9.9%
Associate Corp. of North America
5.43%, due 03/03/97 ..................... 275,000 275,000,000
General Electric Capital Corp. ...........
5.44%, due 03/03/97 ..................... 125,000 125,000,000
5.31%, due 03/31/97 ..................... 150,000 149,380,500
--------------
549,380,500
--------------
FLOATING RATE NOTES--20.6%
Abbey National Treasury Services
5.29%, due 07/15/97 ..................... 130,000 129,965,650
Banc One, Indianapolis
5.29%, due 02/05/98 ..................... 150,000 149,917,185
Banc One, Texas
5.27%, due 09/04/97 ..................... 100,000 99,960,973
C.I.T. Group Holding
5.25%, due 03/05/97 ..................... 200,000 199,998,718
Merrill Lynch & Co., Inc. ................
5.41%, due 11/12/97 ..................... 100,000 99,982,603
5.40%, due 01/09/98 ..................... 150,000 149,962,688
<PAGE>
Cash Reserves Portfolio
- ----------------------------------------------------------------
Portfolio Of Investments February 28, 1997 (unaudited) continued
Principal
Amount
Issuer (000's omitted) Value
- --------------------------------------------------------------------------------
Societe Generale North America, Inc. ....
5.38%, due 01/15/98 .................... $175,000 $ 174,906,791
Strats Trust
5.42%, due 12/15/97 .................... 139,500 139,476,523
--------------
1,144,171,131
--------------
TIME DEPOSIT--14.7%
ABN Amro Canada
5.50%, due 03/03/97 .................... 80,000 80,000,000
Chase Bank
5.43%, due 03/03/97 .................... 201,492 201,492,000
Harris Trust & Savings Bank, Chicago
5.43%, due 03/03/97 .................... 263,000 263,000,000
Nationsbank Charlotte, NC
5.43%, due 03/03/97 .................... $275,000 $ 275,000,000
--------------
819,492,000
--------------
UNITED STATES GOVERNMENT
AGENCY--2.7%
Federal Home Loan Bank
6.00%, due 09/24/97 .................... 150,000 149,879,228
--------------
Total Investments
at Amortized Cost .................... 99.0% 5,511,561,967
Other Assets, Less Liabilities .......... 1.0 54,321,654
----- --------------
Net Assets .............................. 100.0% $5,565,883,621
===== ==============
See notes to financial statements
<PAGE>
Cash Reserves Portfolio
- --------------------------------------------------------------------------------
Statement Of Assets And Liabilities February 28, 1997 (unaudited)
Assets:
Investments at value (Note 1A) .............................. $5,511,561,967
Cash ........................................................ 24
Interest receivable ......................................... 55,016,421
--------------
Total assets ............................................ 5,566,578,412
--------------
Liabilities:
Payable to affiliate--investment advisory fee (Note 2A) ..... 325,041
Accrued expenses and other liabilities ...................... 369,750
--------------
Total liabilities ....................................... 694,791
--------------
Net Assets .................................................. $5,565,883,621
==============
Represented by:
Paid-in capital for beneficial interests .................... $5,565,883,621
==============
Cash Reserves Portfolio
- --------------------------------------------------------------------------------
Statement Of Operations
For the Six Months Ended February 28, 1997 (unaudited)
Interest Income (Note 1B) ....................... $155,117,348
Expenses:
Investment advisory fees (Note 2A) .............. $ 4,125,237
Administrative fees (Note 2B) ................... 1,375,079
Custodian fees .................................. 552,581
Auditing fees ................................... 21,953
Legal fees ...................................... 15,757
Trustees' fees .................................. 13,067
Other ........................................... 103,676
------------
Total expenses ................................ 6,207,350
Less aggregate amount waived by Investment
Adviser and Administrator (Notes 2A and 2B) (3,423,585)
Less fees paid indirectly (Note 1E) ........... (242)
------------
Net expenses .................................. 2,783,523
------------
Net investment income ......................... $152,333,825
============
See notes to financial statements
<PAGE>
Cash Reserves Portfolio
- --------------------------------------------------------------------------------
Statement Of Changes In Net Assets
Six Months Ended Year Ended
February 28, 1997 August 31,
(unaudited) 1996
---------------- ---------------
Increase (Decrease) in Net Assets from
Operations:
Net investment income .................. $ 152,333,825 $ 230,781,560
---------------- ----------------
Capital Transactions:
Proceeds from contributions ............ 15,188,816,956 24,522,122,636
Value of withdrawals ................... (14,217,454,452) (25,076,123,009)
---------------- ----------------
Net increase (decrease) in net assets
from capital transactions ............ 971,362,504 (554,000,373)
---------------- ----------------
Net Increase (Decrease) in Net Assets .. 1,123,696,329 (323,218,813)
Net Assets:
Beginning of period .................... 4,442,187,292 4,765,406,105
---------------- ----------------
End of period .......................... $ 5,565,883,621 $ 4,442,187,292
================ ================
Cash Reserves Portfolio
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended August 31,
Six Months Ended --------------------------------------------------------------------------
February 28, 1997
(unaudited) 1996 1995 1994 1993 1992
--------------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Ratios/Supplemental Data:
Net assets (000 omitted) $5,565,884 $4,442,187 $4,765,406 $2,147,361 $781,470 $901,024
Ratio of expenses to average
net assets 0.10%+ 0.10% 0.10% 0.11% 0.20% 0.25%
Ratio of net investment
income to average net assets 5.54%+ 5.64% 5.88% 3.87% 3.15% 4.42%
Note: If agents of the Portfolio had not voluntarily waived a portion of their fees for the periods indicated, the ratios
would have been as follows:
Ratios:
Expenses to average net assets 0.23%+ 0.23% 0.23% 0.24% 0.25% 0.25%
Net investment income to average
net assets 5.41%+ 5.50% 5.75% 3.74% 3.10% 4.42%
</TABLE>
+ Annualized
See notes to financial statements
<PAGE>
Cash Reserves Portfolio
- --------------------------------------------------------------------------------
Notes To Financial Statements (unaudited)
(1) Significant Accounting Policies
Cash Reserves Portfolio (the "Portfolio") is registered under the U.S.
Investment Company Act of 1940, as amended, 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 Declaration of Trust permits the Trustees to issue
beneficial interests in the Portfolio. Signature Financial Group (Grand Cayman),
Ltd. ("SFG") acts as the Portfolio's Administrator and Citibank, N.A.
("Citibank") acts as the Investment Adviser.
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 in the financial statements. Actual
results could differ from those estimates.
The significant accounting policies consistently followed by the Portfolio are
as follows:
A. Valuation of Investments -- Money market instruments are valued at amortized
cost, which the Trustees have determined in good faith constitutes fair value.
This method involves valuing a portfolio security at its cost and thereafter
assuming a constant amortization to maturity of any discount or premium. The
Portfolio's use of amortized cost is subject to the Portfolio's compliance with
certain conditions as specified under Rule 2a-7 of the U.S. Investment Company
Act of 1940.
B. Interest Income and Expenses -- Interest income consists of interest accrued
and discount earned (including both original issue and market discount) on the
investments of the Portfolio, accrued ratably to the date of maturity, plus or
minus net realized gain or loss, if any, on investments. Expenses of the
Portfolio are accrued daily. The Portfolio bears all costs of its operations
other than expenses specifically assumed by Citibank and SFG.
C. U.S. Federal Income Taxes -- The Portfolio is considered a partnership under
the U.S. Internal Revenue Code. Accordingly, no provision for federal income
taxes is necessary.
D. Repurchase Agreements -- It is the policy of the Portfolio to require the
custodian bank to take possession, to have legally segregated in the Federal
Reserve Book Entry System or to have segregated within the custodian bank's
vault, all securities held as collateral in support of repurchase agreement
investments. Additionally, procedures have been established by the Portfolio to
monitor, on a daily basis, the market value of the repurchase agreement's
underlying investments to ensure the existence of a proper level of collateral.
E. Fees Paid Indirectly -- The Portfolio's custodian bank calculates its fees
based on the Portfolio's average daily net assets. The fees are reduced
according to a fee arrangement, which provides for custody fees to be reduced
based on a formula developed to measure the value of cash deposited with the
custodian by the Portfolio. This amount is shown as a reduction of expenses on
the Statement of Operations.
F. Other -- Purchases, maturities and sales of money market instruments are
accounted for on the date of the transaction.
(2) Investment Advisory Fees and Administrative Fees
A. Investment Advisory Fee -- The Investment advisory fees paid to Citibank, as
compensation for overall investment management services, amounted to $4,125,237,
of which $2,048,506 was voluntarily waived for the six months ended February 28,
1997. The investment advisory fees are computed at an annual rate of 0.15% of
the Portfolio's average daily net assets.
B. Administrative Fees -- Under the terms of an Administrative Services
Agreement, the administrative fee paid to the Administrator, as compensation for
overall administrative services and general office facilities, are computed at
the annual rate of 0.05% of the Portfolio's average daily net assets. The
Administrative fees amounted to $1,375,079, all of which were voluntarily waived
for the six months ended February 28, 1997. The Portfolio pays no compensation
directly to any Trustee or to any officer who is affiliated with the
Administrator, all of whom receive remuneration for their services to the
Portfolio from the Administrator or its affiliates. Certain of the officers and
a Trustee of the Portfolio are officers and a director of the Administrator or
its affiliates.
<PAGE>
Cash Reserves Portfolio
- --------------------------------------------------------------------------------
Notes To Financial Statements (unaudited) continued (
3) Investment Transactions
Purchases, maturities and sales of money market instruments aggregated
$162,421,475,694 and $161,327,365,569, respectively, for the six months ended
February 28, 1997.
(4) Line of Credit
The Portfolio, along with other Landmark Funds, entered into an agreement with a
bank which allows the Funds collectively to borrow up to $40 million for
temporary or emergency purposes. Interest on borrowings, if any, is charged to
the specific fund executing the borrowing at the base rate of the bank. The line
of credit requires a quarterly payment of a commitment fee based on the average
daily unused portion of the line of credit. For the six months ended February
28, 1997, the commitment fee allocated to the Portfolio was $12,491. Since the
line of credit was established, there have been no borrowings.
<PAGE>
Administrators of the Fund
United States Trust Company of New York
114 West 47th Street
New York, NY 10036
Chase Global Funds Services Company
73 Tremont Street
Boston, MA 02108
(617) 557-8000
Federated Administrative Services
Federated Investment Tower
1001 Liberty Avenue
Pittsburgh, PA 15222
Investment Adviser of the Portfolio
Citibank, N.A.
153 East 53rd Street
New York, NY 10043
Transfer Agent of the Fund
United States Trust Company of New York
114 West 47th Street
New York, NY 10036
Sub-Transfer Agent of the Fund
Chase Global Funds Services Company
73 Tremont Street
Boston, MA 02108
(800) 909-1989
Custodian and Transfer Agent
of the Portfolio
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
Distributor of the Fund
Edgewood Services, Inc.
Clearing Operations
P.O. Box 897
Pittsburgh, PA 15230
Independent Accountants of the Fund
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110
USTEXIMS97
<PAGE>
EXCELSIOR
FUNDS
Institutional
Money Fund
Semi-Annual Report
February 28, 1997
