U.S. MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
Annualized
Yield on
Principal Maturity Date of Value
Amount Date Purchase (Note 1)
------------ ------- ---------- -------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (20.1%)
$15,500,000 Federal Home Loan Bank Floating Rate Notes*......... 9/2/97 5.48% $ 15,491,964
20,000,000 Federal National Mortgage Association*.............. 6/2/99 5.41 19,930,895
25,000,000 Federal National Mortgage Association*.............. 9/22/99 5.41 24,897,449
42,375,000 Federal National Mortgage Association
Discount Note..................................... 7/23/97 5.42 42,234,645
25,000,000 Student Loan Marketing Association Floating
Rate Notes*....................................... 1/13/99 5.28 24,970,071
25,250,000 Student Loan Marketing Association Floating
Rate Notes*....................................... 1/13/99 5.28 25,219,809
18,800,000 U.S. Treasury Notes, 5.75%.......................... 10/31/97 5.53 18,812,676
12,500,000 U.S. Treasury Notes, 5.25%.......................... 12/31/97 5.40 12,483,925
------------
Total U.S. Government and Agency Obligations .... $184,041,434
------------
CERTIFICATES OF DEPOSIT (50.0%)
$27,400,000 ABN Amro Bank....................................... 7/21/97 5.57% $ 27,399,783
40,000,000 Bank of Montreal.................................... 7/24/97 5.56 40,000,000
5,000,000 Bank of Nova Scotia................................. 8/4/97 5.63 5,002,151
40,000,000 Bank of Tokyo-Mitsubishi Bank, Ltd. ............... 9/8/97 5.75 40,000,755
10,000,000 Bankers Trust Co.................................... 7/7/97 6.00 10,000,000
40,000,000 Barclays Bank....................................... 7/23/97 5.52 40,000,243
35,000,000 Canadian Imperial................................... 8/29/97 5.50 35,000,000
5,000,000 Commerzbank AG...................................... 7/7/97 5.80 5,000,125
40,000,000 Deutche Bank AG .................................... 9/8/97 5.65 40,000,906
40,000,000 Industrial Bank of Japan, Ltd....................... 7/22/97 5.65 40,002,085
22,000,000 Morgan Guaranty Trust............................... 8/12/97 5.64 22,000,951
35,000,000 Sanwa Bank, Ltd..................................... 8/21/97 5.80 35,000,489
25,000,000 Societe Generale.................................... 8/18/97 5.59 25,000,000
15,000,000 Societe Generale.................................... 1/13/98 5.85 14,995,156
20,000,000 Sumitomo Bank, Ltd.................................. 9/11/97 5.76 20,000,394
20,000,000 Sumitomo Bank, Ltd.................................. 9/19/97 5.76 20,000,438
40,000,000 Westdeutsche Landesbank............................. 7/28/97 5.56 40,000,000
------------
Total Certificates of Deposit .................. $459,403,476
------------
COMMERCIAL PAPER (13.0%)
$40,000,000 American Express Credit Corp........................ 7/7/97 5.50% $ 39,963,334
40,000,000 Ford Motor Credit Corp.............................. 8/5/97 5.56 39,783,777
40,000,000 Prudential Funding Corp............................. 8/18/97 5.54 39,704,533
------------
Total Commercial Paper ......................... $119,451,644
------------
</TABLE>
<PAGE>
U.S. MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1997 (continued)
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
Annualized
Yield on
Principal Maturity Date of Value
Amount Date Purchase (Note 1)
------------ ------- ---------- -------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS (16.2%)
$42,878,264 Bankers Trust Corp.................................. 7/1/97 5.75% $42,878,264
(Agreement dated 6/30/97 collateralized by
42,735,000 U.S. Treasury Notes 6.75%, due
4/30/00; $42,885,112 to be received upon
maturity)
90,000,000 Citibank............................................ 7/1/97 6.00 90,000,000
(Agreement dated 6/30/97 collateralized by
$48,000,000 U.S. Treasury Notes 8.875%, due
11/15/98 and $ 40,440,000 U.S. Treasury Notes
6.125%, due 8/31/98; $90,015,000 to be
received upon maturity)
16,000,000 JP Morgan........................................... 7/1/97 5.85 16,000,000
(Agreement dated 6/30/97 collateralized by
$16,547,000 U.S. Treasury Notes 6.125%, due
12/31/01; $16,002,600 to be received upon
maturity) ------------
Total Repurchase Agreements ..................... $148,878,264
</TABLE>
TOTAL INVESTMENTS, AT AMORTIZED COST ............ 99.3% $911,774,818
OTHER ASSETS IN EXCESS OF LIABILITIES ........... 0.7 6,128,821
------- ------------
NET ASSETS ..................................... 100.0% $917,903,639
======= ============
- ------------
* Variable Rate Instrument. Interest rates change on specific date (such as a
coupon or interest payment date). The interest rate shown represents the
June 30, 1997 coupon rate.
See Notes to Financial Statements.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
(expressed in U.S. dollars)
ASSETS:
Investments (1), at amortized cost and value (Note 1) ....... $911,774,818
Interest receivable ......................................... 6,430,148
Deferred organization expenses (Note 1) ..................... 39,817
------------
Total Assets ........................................... 918,244,783
------------
LIABILITIES:
Payables for:
Investment advisory fee (Note 2) .......................... 227,369
Custodian fee ............................................. 8,600
Administrative fee (Note 2) ............................... 33,591
Trustees' fee (Note 2) .................................... 26,323
Accrued expenses and other liabilities ................... 45,261
------------
Total Liabilities ...................................... 341,144
------------
NET ASSETS ..................................................... $917,903,639
============
Net Assets Consist of:
Paid-in capital ............................................. $917,903,639
============
NET ASSETS VALUE AND OFFERING PRICE PER SHARE .................. $ 1.00
============
- -----------
(1) Including repurchase agreements of $148,878,264
STATEMENT OF OPERATIONS
For the year ended June 30, 1997
(expressed in U.S. dollars)
NET INVESTMENT INCOME:
Income:
Interest ................................................ $46,691,266
-----------
Expenses:
Investment advisory fee (Note 2) ........................ 1,274,559
Administrative fee (Note 2) ............................. 297,397
Custodian fee ........................................... 215,078
Trustees' fees and expenses ............................. 30,990
Amortization of organization expenses (Note 1) .......... 17,060
Miscellaneous expenses .................................. 161,724
-----------
Total Expenses ........................................ 1,996,808
-----------
NET INVESTMENT INCOME ......................................... $44,694,458
===========
See Notes to Financial Statements.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(expressed in U.S. dollars)
For the For the
year ended year ended
June 30,1997 June 30, 1996
--------------- ---------------
INCREASE IN NET ASSETS:
From Investment Activities:
Net investment income .................. $ 44,694,458 $ 39,274,777
--------------- ---------------
Capital Transactions:
Proceeds from contributions ............ 1,158,622,696 932,761,626
Value of withdrawals ................... (1,049,890,137) (832,670,530)
--------------- ---------------
Net increase in net assets resulting
from capital transactions ...... 108,732,559 100,091,096
--------------- ---------------
Net increase in net assets ............. 153,427,017 139,365,873
NET ASSETS:
Beginning of period .................... 764,476,622 625,110,749
--------------- ---------------
End of period .......................... $ 917,903,639 $ 764,476,622
=============== ===============
FINANCIAL HIGHLIGHTS
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the For the (commencement of
year ended year ended operations) to
June 30, 1997 June 30, 1996 June 30, 1995
------------ ------------ ----------------
<S> <C> <C> <C>
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)........ $917,904 $764,477. $625,111
Ratio of expenses to average net assets.......... 0.24% 0.24% 0.25%(1)
Ratio of net investment income to average
net assets .................................... 5.26% 5.45% 5.62%(1)
</TABLE>
- ----------
(1) Annualized.
See Notes to Financial Statements.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(expressed in U.S. dollars)
1. Organization and Accounting Policies. The U.S. Money Market Portfolio
(the "Portfolio") is registered under the 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 on June 15,
1993. The Portfolio commenced operations on October 31, 1994. The Declaration of
Trust permits the Trustees to create an unlimited number of beneficial interests
in the Portfolio.
The Portfolio's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, 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. Valuation of Investments. The Portfolio values its investments at
amortized cost, which approximates market value. The amortized cost method
values a security at its cost at the time of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium. The
Portfolio's use of amortized cost is in compliance with Rule 2a-7 of the
Investment Company Act of 1940.
B. Interest Income. Interest income consists of interest accrued and
discount earned (including both original issue and market discount) and
premium amortization on the investments of the Portfolio, accrued ratably
to the date of maturity, plus or minus net realized short-term gain or
loss, if any, on investments.
C. Federal Income Taxes. The Portfolio is treated as a partnership for
Federal income tax purposes and its operations are conducted in such a way
that it is not to be considered engaged in a U.S. trade or business for
U.S. tax purposes. Accordingly, no provision for Federal income taxes is
necessary. 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 comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies. At June 30, 1997, the cost of investments for Federal
income tax purposes was equal to the amortized cost of the investments for
financial statement purposes.
D. Repurchase Agreements. The Portfolio at all times maintains
possession of securities collateralizing repurchase agreements.
Additionally, the Portfolio monitors the value of such securities,
including accrued interest, to ensure the collateral at least equals 100%
of the value of the repurchase agreement.
E. Deferred Organization Expenses. Expenses incurred by the Portfolio
in connection with its organization are being amortized by the Portfolio on
a straight-line basis over a five year period.
F. Other. Investment transactions are accounted for on a trade date
basis. Realized gain and loss, if any, from investment transactions are
determined on the basis of identified cost.
2. Transactions with Affiliates.
Investment Advisory Fee. The Portfolio has an investment advisory agreement
with Brown Brothers Harriman & Co. (the "Adviser") for which it pays the Adviser
a fee calculated daily and paid monthly at an annual rate equivalent to 0.15% of
the Portfolio's average daily net assets. For the year ended June 30, 1997, the
Portfolio incurred $1,274,559 for advisory services.
Administrative Fee. The Portfolio has an administrative agreement with
Brown Brothers Harriman Trust Company (Cayman) Ltd. (the "Administrator") for
which it pays the Administrator a fee calculated daily and paid monthly at an
annual rate equivalent to 0.035% of the Portfolio's average net assets. The
Administrator has a subadministration agreement with Signature Financial Group
(Cayman) Ltd. for which Signature Financial Group (Cayman) Ltd. receives such
compensation as is from time to time agreed upon, but not in excess of the
amount paid to the Administrator. For the year ended June 30, 1997, the
Portfolio incurred $297,397 for administrative services.
<PAGE>
U.S. MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(expressed in U.S. dollars)
Trustees' Fees. Each Trustee of the Portfolio receives an annual retainer
paid by the Portfolio. Each Trustee is also reimbursed for out-of-pocket
expenses incurred in connection with board meetings. For the year ended June 30,
1997, the Portfolio incurred $30,990 for Trustees' fees and expenses.
3. Investment Transactions. Purchases, and maturities and sales, of money
market instruments, excluding securities subject to repurchase agreements,
aggregated $52,207,559,189 and $52,065,407,774, respectively, for the year ended
June 30, 1997.
<PAGE>
INDEPENDENT AUDITORS' REPORT
Trustees and Investors
U.S. Money Market Portfolio:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of U.S. Money Market Portfolio as of
June 30, 1997, the related statement of operations for the year then ended, the
statement of changes in net assets for the years ended June 30, 1997 and 1996,
and the financial highlights for each of the years in the three-year period
ended June 30, 1997. These financial statements and financial highlights are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at June 30, 1997 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of U.S. Money Market
Portfolio at June 30, 1997, the results of its operations, the changes in its
net assets, and its financial highlights for respective stated periods in
conformity with accounting principles generally accepted in the United States of
America.
Deloitte & Touche
Grand Cayman, Cayman Islands
August 15, 1997
<PAGE>
The 59 Wall Street Trust
Investment Adviser and
Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
Distributor
59 Wall Street Distributors, Inc.
6 St. James Avenue
Boston, Massachusetts 02116
Shareholder Servicing Agent
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
(800) 625-5759
This report is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus. Nothing herein contained is to be
considered an offer of sale or a solicitation of an offer to buy shares of The
59 Wall Street Money Market Fund. Such offering is made only by prospectus,
which includes details as to offering price and other material information.
