BBH U.S. MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2000
(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 AGENCY OBLIGATIONS (15.3%)
$90,000,000 Federal Home Loan Banks*. .............................. 07/21/00 6.364% $ 90,000,000
55,000,000 Student Loan Marketing Association* .................... 08/03/00 6.494 54,997,520
50,000,000 Student Loan Marketing Association* .................... 08/17/01 6.544 50,000,000
50,000,000 Student Loan Marketing Association* .................... 08/01/00 6.494 49,998,356
------------
Total U.S. Government Agency Obligations ................ $244,995,876
------------
CERTIFICATES OF DEPOSITS (10.5%)
$19,000,000 Bank of Nova Scotia .................................... 01/16/01 6.520% $ 18,996,578
20,000,000 Canadian Imperial Bank of Commerce -
New York Branch ...................................... 01/10/01 6.450 19,994,969
25,000,000 Royal Bank of Canada (New York) ........................ 07/10/00 5.665 24,999,793
25,000,000 Societe Generale ....................................... 01/08/01 6.490 25,000,000
20,000,000 Societe Generale ....................................... 06/22/01 7.080 20,000,000
19,000,000 Bayer Hypobank London .................................. 07/28/00 5.710 18,999,327
25,000,000 UBS AG ................................................. 11/20/00 6.080 24,995,359
15,000,000 UBS AG ................................................. 11/28/00 6.980 14,995,294
------------
Total Certificates of Deposits .......................... $167,981,320
------------
COMMERCIAL PAPERS (62.0%)
$50,000,000 American General Finance Corp. ......................... 07/21/00 6.090% $ 49,830,833
50,000,000 Association Corp of North America ...................... 08/23/00 6.550 49,517,847
60,000,000 AT&T Corp.. ............................................ 08/18/00 6.530 59,477,600
60,000,000 BankAmerica Corp. ...................................... 08/11/00 6.160 59,579,067
50,000,000 Bear Stearns Co., Inc. ................................. 07/05/00 6.030 49,966,500
50,000,000 Cit Group Holdings ..................................... 09/11/00 6.580 49,342,000
40,000,000 Coca Cola Co. .......................................... 09/06/00 6.530 39,513,878
17,800,000 Credit Suisse Group AG. ................................ 10/23/00 6.620 17,426,853
50,000,000 Daimler Chrysler ....................................... 08/23/00 6.610 49,513,431
60,000,000 DuPont E.I. DeNemours & Co. ............................ 08/04/00 6.520 59,630,533
50,000,000 Exxon Mobil Corp. ...................................... 07/07/00 6.700 49,944,167
25,000,000 General Electirc Capital Corp. ......................... 07/14/00 5.980 24,946,014
50,000,000 General Motors Acceptance Corp. ........................ 08/23/00 6.640 49,511,222
50,000,000 Hertz, Inc. ............................................ 07/06/00 6.540 49,954,583
50,000,000 Merck & Co., Inc. ...................................... 07/07/00 6.850 49,942,917
50,000,000 Merrill Lynch & Co., Inc. .............................. 08/23/00 6.650 49,510,486
50,000,000 Morgan Stanley Dean Witter Discover .................... 09/16/00 6.590 49,386,764
50,000,000 Prudential Funding Corp. ............................... 09/12/00 6.580 49,332,861
40,000,000 SBC Communications, Inc. ............................... 08/16/00 6.600 39,662,667
40,000,000 Schering Plough Corp. .................................. 11/21/00 6.700 38,935,444
60,000,000 Wells Fargo & Co. ...................................... 09/05/00 6.580 59,276,200
------------
Total Commercial Papers ................................. $994,201,867
------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Annualized
Yield on
Principal Maturity Date of Value
Amount Date Purchase (Note 1)
--------- -------- ---------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS (7.2%)
$50,000,000 First Union National Bank* ............................. 11/13/00 6.960% $ 50,046,717
40,960,000 Goldman Sachs Group, Inc.* ............................. 12/22/00 6.791 40,960,000
25,000,000 Bank One Corp.* ........................................ 04/17/01 6.331 24,990,037
------------
Total Corporate Bonds ................................... $115,996,754
------------
REPURCHASE AGREEMENT (4.4%)
$70,349,257 J.P. Morgan & Co. Repo
(Agreement dated 06/30/00 collateralized by
$17,561,000 U.S. Treasury Note 10.750%,
due 05/15/03, and $50,000,000 U.S. Treasury Note
7.250%, due 5/15/04; $70,384,875 to be received
upon maturity) ...................................... 07/03/00 6.150% $ 70,349,257
------------
Total Repurchase Agreements ............................ $ 70,349,257
------------
TOTAL INVESTMENTS, AT AMORTIZED COST ................................................. 99.4% $1,593,525,074
OTHER ASSETS IN EXCESS OF LIABILITIES ................................................ 0.6 8,958,728
----- --------------
NET ASSETS ........................................................................... 100.0% $1,602,483,802
===== ==============
</TABLE>
----------
* Variable Rate Instrument. Interest rates change on specific date (such as
a coupon or interest payment date).
The yield shown represents the June 30, 2000 coupon rate.
See Notes to Financial Statements.
<PAGE>
BBH U.S. MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at amortized cost and value (Note 1) .......................... $1,593,525,074
Interest receivable ........................................................ 9,495,278
--------------
Total Assets .......................................................... 1,603,020,352
--------------
LIABILITIES:
Payables for:
Investment advisory fees (Note 2) ........................................ 361,009
Administrative fees (Note 2) ............................................. 84,235
Custodian fees ........................................................... 68,000
Accrued expenses and other liabilities ................................... 23,306
--------------
Total Liabilities ..................................................... 536,550
--------------
NET ASSETS ....................................................................... $1,602,483,802
==============
Net Assets Consist of:
Paid-in capital ............................................................ $1,602,483,802
==============
<CAPTION>
STATEMENT OF OPERATIONS
For the year ended June 30, 2000
(expressed in U.S. dollars)
<S> <C>
NET INVESTMENT INCOME
Income:
Interest ................................................................... $ 76,383,030
--------------
Expenses:
Investment advisory fees (Note 2) ........................................ 1,974,749
Administrative fees (Note 2) ............................................. 460,775
Custodian fees ........................................................... 248,578
Trustees' fees and expenses (Note 2) ..................................... 72,810
Amortization of organization expenses (Note 1) ........................... 5,697
--------------
Total Expenses ........................................................ 2,762,609
--------------
NET INVESTMENT INCOME ............................................................ $ 73,620,421
==============
</TABLE>
See Notes to Financial Statements.
<PAGE>
BBH U.S. MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the years ended June 30,
--------------------------------------
2000 1999
--------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS:
>From Investment Activities:
Net investment income ................................................... $ 73,620,421 $ 52,850,027
--------------- ---------------
Capital Transactions:
Proceeds from contributions ............................................. 1,861,243,392 1,211,236,532
Value of withdrawals .................................................... (1,407,541,966) (1,127,061,572)
--------------- ---------------
Net increase in net assets resulting from capital transactions ....... 453,701,426 84,174,960
--------------- ---------------
Net increase in net assets .............................................. 527,321,847 137,024,987
NET ASSETS:
Beginning of year ....................................................... 1,075,161,955 938,136,968
--------------- ---------------
End of year ............................................................. $ 1,602,483,802 $ 1,075,161,955
=============== ===============
</TABLE>
FINANCIAL HIGHLIGHTS
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the years ended June 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Ratios/Supplemental Data:
Net assets, end of period
(000's omitted) ....................... $1,602,484 $1,075,162 $938,137 $917,904 $764,477
Ratio of expenses to average
net assets ............................ 0.21% 0.21% 0.23% 0.24% 0.24%
Ratio of net investment income to
average net assets .................... 5.60% 4.98% 5.41% 5.26% 5.45%
</TABLE>
See Notes to Financial Statements.
<PAGE>
BBH U.S. MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(expressed in U.S. dollars)
1. Organization and Accounting Policies. The BBH 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. Effective July 1, 2000, the Portfolio
changed its name to BBH U.S. Money Market 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, 2000, 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 Expense. 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, 2000, the Portfolio incurred $1,974,749 for advisory services. Effective
July 1, 2000, the fee paid to the Adviser will be calculated daily and paid
monthly at an annual rate equivalent to 0.10% of the Portfolio's average daily
net assets.
<PAGE>
BBH U.S. MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
Administrative Fee. The Portfolio has an administrative agreement with
Brown Brothers Harriman Trust Company, LLC (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 daily 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, 2000, the
Portfolio incurred $460,775 for administrative services.
Trustees' Fees and Expenses. Each Trustee of the Portfolio receives an
annual retainer paid by the Portfolio. Each Trustee is also reimbursed for
reasonable out-of-pocket expenses incurred in connection with board meetings.
For the year ended June 30, 2000, the Portfolio incurred $72,810 for Trustees'
fees and expenses.
Effective July 1, 2000, the Portfolio entered into a custody agreement
with Brown Brothers Harriman & Co.
3. Investment Transactions. Purchases, and maturities and sales, of money
market instruments, excluding securities subject to repurchase agreements,
aggregated $7,822,435,795 and $7,297,982,900, respectively, for the year ended
June 30, 2000.
<PAGE>
INDEPENDENT AUDITORS' REPORT
Trustees and Investors
BBH U.S. Money Market Portfolio:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of BBH U.S. Money Market Portfolio (the
"Portfolio") as of June 30, 2000, the related statement of operations for the
year then ended, the statement of changes in net assets for the years ended June
30, 2000 and 1999, and the financial highlights for each of the years in the
five-year period ended June 30, 2000. 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, 2000, 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 BBH U.S. Money
Market Portfolio at June 30, 2000, the results of its operations, the changes in
its net assets, and its financial highlights for the respective stated periods
in conformity with accounting principles generally accepted in the United States
of America.
Deloitte & Touche LLP
Boston, Massachusetts
August 18, 2000
<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.
21 Milk Street
Boston, Massachusetts 02109
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.
