<PAGE>
- -------------------------------------------------------------------------------
1999
SEMIANNUAL REPORT
April 30, 1999
(Unaudited)
Waterhouse
Investors Cash
Management
Funds
......................
THREE MONEY MARKET PORTFOLIOS TO CHOOSE FROM:
MONEY MARKET o U.S. GOVERNMENT o MUNICIPAL
[WATERHOUSE LOGO]
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<S> <C> <C>
DIRECTORS EXECUTIVE OFFICERS
GEORGE F. STAUDTER CAROLYN B. LEWIS GEORGE A. RIO*
Director of Koger Equity, Inc. President of President, Treasurer
Independent Financial Consultant The CBL Group and Chief Financial Officer
RICHARD W. DALRYMPLE LAWRENCE J. TOAL CHRISTOPHER J. KELLEY*
President of Teamwork Mgmt., Inc. Chairman/President/CEO of Vice President and Secretary
Dime Bancorp, Inc.
</TABLE>
*Affiliated person of the Distributor
WATERHOUSE ASSET MANAGEMENT, INC.
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<S> <C> <C>
DIRECTORS
LAWRENCE M. WATERHOUSE, JR. FRANK J. PETRILLI RICHARD H. NEIMAN
Chairman President and Executive Vice President,
Waterhouse Investor Services, Inc. Chief Executive Officer General Counsel and Secretary
Waterhouse Investor Services, Inc. Waterhouse Investor Services, Inc.
SENIOR OFFICERS
DAVID A. HARTMAN B. KEVIN STERNS MICHELE R. TEICHNER
Senior Vice President Executive Vice President Senior Vice President
Chief Investment Officer Chief Financial Officer & Treasurer Operations & Compliance
</TABLE>
SERVICE PROVIDERS
<TABLE>
<S> <C> <C>
INVESTMENT MANAGER TRANSFER AGENT INDEPENDENT AUDITORS
Waterhouse Asset Management, Inc. Waterhouse National Bank Ernst & Young LLP
100 Wall Street 525 Washington Blvd. 787 Seventh Avenue
New York, New York 10005 Jersey City, NJ 07310 New York, NY 10019
ADMINISTRATOR & CUSTODIAN LEGAL COUNSEL
SHAREHOLDER SERVICING The Bank of New York Swidler Berlin Shereff
Waterhouse Securities, Inc. 90 Washington Street Friedman, LLP
100 Wall Street New York, NY 10286 919 Third Avenue
New York, NY 10005 New York, NY 10022
Customer Service Department DISTRIBUTOR
(800) 934-4410 Funds Distributor, Inc.
60 State Street
Boston, MA 02109
</TABLE>
- -------------------------------------------------------------------------------
2
<PAGE>
- -------------------------------------------------------------------------------
WATERHOUSE INVESTORS FAMILY OF FUNDS, INC.
DEAR SHAREHOLDER:
- -------------------------------------------------------------------------------
I am pleased to provide you with the Waterhouse Investors Cash Management
Funds (the "Fund") semiannual report for the six months ended April 30, 1999.
During the period, each of the Money Market, U.S. Government and Municipal
Portfolios attempted to provide maximum current income from high quality money
market securities while maintaining a conservative investment portfolio to
ensure safety of principal. By April 30, 1999, assets in the three Portfolios
increased to a total of $5.2 billion.
PORTFOLIO RESULTS*
For the six months ended April 30, 1999, the three money market Portfolios had
the following annualized returns.**
* The Money Market Portfolio had an annualized return of 4.46% and a current
yield of 4.40%.
* The U. S. Government Portfolio had an annualized return of 4.32% and a
current yield of 4.28%.
* The Municipal Portfolio had an annualized return of 2.46%, a taxable
equivalent return of 3.84%(1), a current yield of 2.44% and a taxable
equivalent yield of 3.81%(1).
While the earlier part of the latest six month period was characterized by
continued volatility and uncertainty, the latter part exhibited signs of
stabilization and a return to more normal market conditions. The economies of
troubled emerging markets have recently begun to show signs of recovery, while
the U.S. economy and stock market have shrugged off the troubles in these
regions and roared ahead with substantial strength. However, the improvements in
the global economy, as well as continued strength in the U.S., have brought back
concerns of rising inflation, as unemployment remains near 30-year lows and GDP
continues to post quarter after quarter of robust growth. Any change in Federal
Reserve interest rate policy now appears tilted toward higher rates. Currently,
the portfolio maturity structure is at a market neutral position. However, we
will seek to shorten maturities should signs of an overheating economy with
higher inflation arise.
We look forward to continuing to meet your expanding investment needs in the
years to come.
Sincerely,
/s/ Lawrence M. Waterhouse, Jr.
- -------------------------------
Lawrence M. Waterhouse, Jr.
Chairman
Waterhouse Investor Services, Inc.
June 1, 1999
* An investment in the Portfolio is neither FDIC-insured nor guaranteed by the
U.S. Government and is not a deposit or obligation of, or guaranteed by, any
bank. There can be no assurance that a Portfolio will be able to maintain a
stable net asset value of $1 per share.
** Past performance is not a guarantee of future results. These returns are
based on a constant investment throughout the period, include reinvestment of
dividends and reflect a net return to the shareholder after all expenses,
inclusive of fee waivers. For the six months ended April 30, 1999 the Investment
Manager and its affiliates waived a portion of their fee for the Money Market,
U.S. Government and Municipal Portfolios. Without these fee waivers in effect,
the annualized returns and current yields would have been 4.26% and 4.20% for
the Money Market Portfolio, 4.12% and 4.08% for the U.S. Government Portfolio
and 2.22% and 2.20%, for the Municipal Portfolio. The annualized taxable
equivalent return and yield for the Municipal Portfolio would have been 3.60%
and 3.57%, respectively. The yield more closely reflects the current earnings of
the Portfolios than the total return.
(1) Taxable equivalent return and yield at 36% marginal federal income tax rate.
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
----------------------------------
TABLE OF CONTENTS
----------------------------------
Statements of Assets and Liabilities...................5
Statements of Operations...............................6
Statements of Changes in Net Assets....................7
Financial Highlights...................................8
Notes to Financial Statements.........................10
Money Market Portfolio
Schedule of Investments............................12
U.S. Government Portfolio
Schedule of Investments............................16
Municipal Portfolio
Schedule of Investments............................17
Notes to
Schedules of Investments...........................23
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET U.S. GOVERNMENT MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS
Investments in securities, at value
(including repurchase agreements of
$121,000,000, $65,199,000, and
$0, respectively) (Note 2) $ 4,170,839,792 $ 672,872,829 $ 428,661,203
Cash 974 431 92,112
Interest receivable 23,836,878 4,296,261 2,349,143
Other assets 35,268 4,352 3,472
---------------- ---------------- ----------------
TOTAL ASSETS 4,194,712,912 677,173,873 431,105,930
LIABILITIES
Dividends payable to shareholders 480,047 76,336 36,472
Payable for securities purchased 66,768,144 21,943,423 2,278,743
Accrued expenses and other liabilities 2,245,831 460,636 339,725
---------------- ---------------- ----------------
TOTAL LIABILITIES 69,494,022 22,480,395 2,654,940
---------------- ---------------- ----------------
NET ASSETS $ 4,125,218,890 $ 654,693,478 $ 428,450,990
================ =============== ================
Net assets consist of:
Paid-in capital $ 4,125,209,929 $ 654,685,608 $ 428,455,674
Accumulated net realized gains (losses)
from security transactions 8,961 7,870 (4,684)
---------------- ---------------- ----------------
Net assets, at value $ 4,125,218,890 $ 654,693,478 $ 428,450,990
================ =============== ================
Shares outstanding ($.0001 par value
common stock, 60 billion, 20 billion,
and 10 billion shares authorized,
respectively) 4,125,209,929 654,685,608 428,455,674
================ =============== ================
Net asset value, redemption price and
offering price per share (Note 2) $ 1.00 $ 1.00 $ 1.00
================ =============== ================
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET U.S. GOVERNMENT MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income $ 92,301,463 $ 15,211,622 $ 6,604,048
---------------- ---------------- ----------------
EXPENSES
Investment management fees (Note 3) 6,096,820 1,058,037 727,310
Shareholder servicing fees (Note 3) 4,506,099 755,741 526,397
Transfer agent fees (Note 3) 3,604,887 604,593 415,606
Administration fees (Note 3) 1,802,437 302,296 207,823
Registration fees 183,933 72,328 56,073
Shareholder reports and mailing 236,374 28,142 16,886
Custody fees (Note 2) 99,502 21,188 12,430
Professional fees 46,769 5,923 4,240
Directors' fees 2,813 2,813 2,813
Other expenses 67,490 26,308 49,801
---------------- ---------------- ----------------
TOTAL EXPENSES 16,647,124 2,877,369 2,019,379
Fees waived/expenses reimbursed by the
Investment Manager and its affiliates
(Note 3) (3,668,715) (604,662) (481,708)
---------------- ---------------- ----------------
NET EXPENSES 12,978,409 2,272,707 1,537,671
---------------- ---------------- ----------------
NET INVESTMENT INCOME 79,323,054 12,938,915 5,066,377
---------------- ---------------- ----------------
NET REALIZED GAINS (LOSSES) FROM SECURITY
TRANSACTIONS 11,744 11,571 (3,843)
---------------- ---------------- ----------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 79,334,798 $ 12,950,486 $ 5,062,534
================ =============== ================
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONEY MARKET U.S. GOVERNMENT MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED
1999 OCTOBER 31, 1999 OCTOBER 31, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED) 1998
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 79,323,054 $ 113,300,200 $ 12,938,915 $ 21,967,834 $ 5,066,377 $ 9,149,602
Net realized gains (losses)
from security
transactions 11,744 36 11,571 (3,939) (3,843) 2,572
-------------- -------------- -------------- -------------- ------------ ------------
Net increase in net assets
from operations 79,334,798 113,300,236 12,950,486 21,963,895 5,062,534 9,152,174
-------------- -------------- -------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income (79,323,054) (113,300,200) (12,938,915) (21,967,834) (5,066,377) (9,149,602)
-------------- -------------- -------------- -------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS
($1.00 PER SHARE):
Proceeds from shares sold 10,643,830,104 9,765,915,572 1,236,463,301 1,534,515,923 822,178,250 1,073,142,210
Shares issued in
reinvestment
of dividends 79,597,124 112,790,339 12,991,125 21,892,239 5,082,760 9,118,338
Payments for shares
redeemed (9,555,945,976) (8,708,766,830) (1,132,176,287) (1,421,685,766) (779,896,623) (966,796,370)
-------------- -------------- -------------- -------------- ------------ ------------
Net increase in net assets
from capital share
transactions 1,167,481,252 1,169,939,081 117,278,139 134,722,396 47,364,387 115,464,178
-------------- -------------- -------------- -------------- ------------ ------------
TOTAL INCREASE IN NET ASSETS 1,167,492,996 1,169,939,117 117,289,710 134,718,457 47,360,544 115,466,750
NET ASSETS:
Beginning of period 2,957,725,894 1,787,786,777 537,403,768 402,685,311 381,090,446 265,623,696
-------------- -------------- -------------- -------------- ------------ ------------
End of period $4,125,218,890 $2,957,725,894 $ 654,693,478 $ 537,403,768 $428,450,990 $381,090,446
============== ============== ============== ============== ============ ============
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
7
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from each Portfolio's financial statements.
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
SIX MONTHS
ENDED YEAR YEAR PERIOD
APRIL 30, ENDED ENDED ENDED
1999 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1998 1997 1996*
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------------- -------------- -------------- --------------
Net investment income 0.022 0.049 0.048 0.041
-------------- -------------- -------------- --------------
Distributions from net investment
income (0.022) (0.049) (0.048) (0.041)
-------------- -------------- -------------- --------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
============== ============== ============== ==============
RATIOS
Ratio of expenses to average net
assets 0.72%(A) 0.75% 0.83% 0.79%(A)
Ratio of net investment income to
average net assets 4.40%(A) 4.92% 4.79% 4.64%(A)
Decrease reflected in above net
expense ratio due to
waivers/reimbursements by the
Investment Manager and its
affiliates (Note 3) 0.20%(A) 0.15% 0.08% 0.13%(A)
SUPPLEMENTAL DATA
Total investment return (B) 4.46%(A) 5.04% 4.89% 4.82%(A)
Net assets, end of period $4,125,218,890 $2,957,725,894 $1,787,786,777 $1,342,610,086
============== ============== ============== ==============
Average net assets $3,635,206,542 $2,302,804,288 $1,592,722,254 $1,104,588,438
============== ============== ============== ==============
<CAPTION>
U.S. GOVERNMENT PORTFOLIO
SIX MONTHS
ENDED YEAR YEAR PERIOD
APRIL 30, ENDED ENDED ENDED
1999 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1998 1997 1996*
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ------------ ------------ ------------
Net investment income 0.021 0.048 0.047 0.041
------------ ------------ ------------ ------------
Distributions from net investment
income (0.021) (0.048) (0.047) (0.041)
------------ ------------ ------------ ------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
============ ============ ============ ============
RATIOS
Ratio of expenses to average net
assets 0.75%(A) 0.78% 0.81% 0.73%(A)
Ratio of net investment income to
average net assets 4.28%(A) 4.80% 4.69% 4.64%(A)
Decrease reflected in above net
expense ratio due to
waivers/reimbursements by the
Investment Manager and its
affiliates (Note 3) 0.20%(A) 0.11% 0.07% 0.18%(A)
SUPPLEMENTAL DATA
Total investment return (B) 4.32%(A) 4.91% 4.79% 4.82%(A)
Net assets, end of period $654,693,478 $537,403,768 $402,685,311 $371,046,770
============ ============ ============ ============
Average net assets $609,665,161 $457,821,528 $398,635,777 $293,708,330
============ ============ ============ ============
<FN>
* The Portfolio commenced operations on December 20, 1995.
(A) Annualized.
(B) Total investment return is calculated assuming a purchase of
shares on the first day and a sale on the last day of the
period reported and includes reinvestment of dividends.
</FN>
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
8
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from each Portfolio's financial statements.
<TABLE>
<CAPTION>
MUNICIPAL PORTFOLIO
SIX MONTHS
ENDED YEAR YEAR PERIOD
APRIL 30, ENDED ENDED ENDED
1999 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1998 1997 1996*
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ ------------ ------------ ------------
Net investment income 0.012 0.029 0.030 0.026
------------ ------------ ------------ ------------
Distributions from net investment income (0.012) (0.029) (0.030) (0.026)
------------ ------------ ------------ ------------
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
============ ============ ============ ============
RATIOS
Ratio of expenses to average net assets 0.74%(A) 0.72% 0.74% 0.62%(A)
Ratio of net investment income to average net
assets 2.44%(A) 2.93% 2.97% 2.90%(A)
Decrease reflected in above net expense ratio due
to waivers/reimbursements by the Investment
Manager and its affiliates (Note 3) 0.24%(A) 0.13% 0.10% 0.23%(A)
SUPPLEMENTAL DATA
Total investment return (B) 2.46%(A) 2.98% 3.01% 3.05%(A)
Net assets, end of period $428,450,990 $381,090,446 $265,623,696 $226,253,394
============ ============ ============ ============
Average net assets $419,076,090 $312,133,086 $252,444,536 $196,592,413
============ ============ ============ ============
<FN>
* The Portfolio commenced operations on December 20, 1995.
(A) Annualized.
(B) Total investment return is calculated assuming a purchase of
shares on the first day and a sale on the last day of the
period reported and includes reinvestment of dividends.
</FN>
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
9
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
NOTE 1 -- ORGANIZATION
Waterhouse Investors Family of Funds, Inc. (the "Fund") was organized as a
Maryland corporation on August 16, 1995. On December 18, 1997, Waterhouse
Investors Cash Management Fund, Inc. changed its name to Waterhouse Investors
Family of Funds, Inc. The Fund is registered as an open-end, management
investment company with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended (the "Act"). Shares of the Fund are
registered under the Securities Act of 1933, as amended. The Fund currently has
four investment portfolios. These financial statements relate to three money
market portfolios of the Fund (each a "Portfolio" and collectively the
"Portfolios"), each of which is a diversified investment portfolio. The
investment objective of each of the Money Market Portfolio, the U.S. Government
Portfolio and the Municipal Portfolio is to seek maximum current income to the
extent consistent with liquidity and preservation of capital. The Money Market
Portfolio has the flexibility to invest broadly in U.S. dollar-denominated
securities of domestic and foreign issuers. The U.S. Government Portfolio offers
an added measure of safety by investing exclusively in obligations issued or
guaranteed by the U.S. government, its agencies or instrumentalities. The
Municipal Portfolio offers investors federally tax-exempt income by investing
primarily in municipal securities.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of each Portfolio's significant accounting policies:
Computation of Net Asset Value -- It is each Portfolio's policy to maintain a
continuous net asset value of $1.00 per share. Each Portfolio has adopted
certain investment, portfolio valuation and dividend and distribution policies
to enable it to do so. There is no assurance, however, that each Portfolio will
be able to maintain a stable net asset value of $1.00 per share.
Securities Valuation -- Each Portfolio's securities are valued using the
amortized cost method, which approximates market value. The amortized cost
method involves initially valuing a security at its original cost and thereafter
assuming a constant amortization to maturity of any discount or premium.
Repurchase Agreements -- The Fund may enter into repurchase agreements with
financial institutions deemed to be creditworthy by the Fund's Investment
Manager, subject to the seller's agreement to repurchase and the Fund's
agreement to resell such securities at a mutually agreed upon price. Securities
purchased subject to repurchase agreements are deposited with the Fund's
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities falls
below the value of the repurchase price plus accrued interest, the Fund will
require the seller to deposit additional collateral by the next business day. If
the request for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Fund maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller.
Investment Income -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles. Under
the terms of the custody agreement, each Portfolio receives net earnings credits
based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
Distributions to Shareholders -- Dividends arising from net investment income
are declared daily and paid monthly. With respect to each Portfolio, net
realized short-term capital gains, if any, may be distributed during the year
and net realized long-term capital gains, if any, are distributed at least once
each year. Income distributions and capital gain distributions are determined in
accordance with income tax regulations.
Securities Transactions -- Securities transactions are accounted for on the
trade date. Realized gain and loss from securities transactions are recorded on
a specific identification basis.
Expenses -- Expenses directly attributable to each Portfolio are charged to that
Portfolio's operations. Expenses which are applicable to all Portfolios are
allocated on a pro rata basis.
Use of Estimates -- The Fund's financial statements are prepared in accordance
with generally accepted accounting principles, which may require the use of
management estimates and assumptions. Actual results could differ from these
estimates.
- --------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED) (CONTINUED)
Federal Income Taxes -- It is each Portfolio's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Portfolio so
qualifies, and distributes at least 90% of its taxable net income, the Portfolio
(not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Portfolio's intention to declare as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital gains
(earned during the twelve months ended October 31) plus undistributed amounts
from prior years.
NOTE 3 -- INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES OF
THE INVESTMENT MANAGER
Under the terms of an Investment Management Agreement with Waterhouse Asset
Management, Inc. (the "Investment Manager"), an indirect wholly owned subsidiary
of The Toronto-Dominion Bank, for the investment management services furnished
to each Portfolio, such Portfolio pays the Investment Manager an annual
investment management fee, on a graduated basis, equal to .35 of 1% of the first
$1 billion of average daily net assets of each such Portfolio, .34 of 1% of the
next $1 billion, and .33 of 1% of average daily net assets of each such
Portfolio over $2 billion. For the six months ended April 30, 1999, the
Investment Manager voluntarily waived $207,803 of its investment management fee
for the Municipal Portfolio.
Waterhouse Securities, Inc. ("Waterhouse Securities"), an affiliate of the
Investment Manager, has been retained under an Administration Agreement to
perform certain administrative services for the Fund. For the administrative
services rendered to the Fund, each Portfolio pays Waterhouse Securities a
monthly fee at an annual rate of .10 of 1% of each Portfolio's average daily net
assets.
Waterhouse Securities has been retained under a Shareholder Services Agreement
to perform certain shareholder services necessary for the operation of the Fund.
The shareholder service plan adopted by the Fund provides that each Portfolio
pays Waterhouse Securities a monthly fee at an annual rate of up to .25 of 1% of
average daily net assets. For the six months ended April 30, 1999, Waterhouse
Securities voluntarily waived $3,520,417, $604,662 and $273,905 of its
shareholder servicing fees for the Money Market Portfolio, the U.S. Government
Portfolio and the Municipal Portfolio, respectively.
The Fund has entered into a Transfer Agency and Dividend Disbursing Agency
Agreement with Waterhouse National Bank (the "Bank"), an affiliate of the
Investment Manager, to perform transfer and dividend disbursing agency-related
services. For such services, each Portfolio pays the Bank a monthly fee at an
annual rate of .20 of 1% of average daily net assets. For the six months ended
April 30, 1999, the Bank voluntarily waived $148,298 of its transfer agency and
dividend disbursing agency fees for the Money Market Portfolio.
Each Director who is not an "interested person" ("independent Director") as
defined in the Act, who serves on the Board of Directors of one or more
portfolios in the "Fund Complex" (which includes the Fund and National Investors
Cash Management Fund, Inc.), receives:
1. a base annual retainer of $12,000, payable quarterly,
2. a supplemental annual retainer of $5,000, if serving on the Board of
Directors of more than one company in the Fund Complex, and
3. a meeting fee of $2,000 for each meeting attended.
Compensation is allocated between the companies and among the respective
portfolios.
- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE OBLIGATIONS
ASSET-BACKED OBLIGATIONS--10.9%
$ 32,000,000 Asset-Backed Securities Investment Trust Ser. 1997F, VRN,
4.89%, due 5/15/99 (Insured: MBIA) (Note A) 4.89 $ 32,000,000
25,000,000 Citibank Capital Markets Assets, LLC, due 7/7/99 4.90 24,774,806
50,000,000 Corporate Receivables Corp., due 5/13/99 4.90 49,919,000
50,000,000 Dakota Certificate Program, due 6/2/99 4.91 49,784,444
69,810,046 GE Aircraft Engine Receivables Corp. Multi-Mode Receivables
Pool Participation Certificate, Ser. 1998-1, due 12/27/99 5.41 69,810,046
165,000,000 Liberty Lighthouse U.S. Capital Co. LLC, VRN, 5.00%, due
7/12/99 (Note A) 5.00 165,002,680
35,000,000 Liberty Lighthouse U.S. Capital Co. LLC, VRN, 5.00%, due
7/12/99 (Note A) 4.99 35,000,568
8,025,000 Preferred Receivables Funding Corp., due 6/25/99 5.17 7,963,453
14,000,000 WFS Financial 1999A Owner Trust Notes Class A-1, 5.01%, due
2/20/00 (GTY: FSA) 5.00 14,000,000
--------------
448,254,997
--------------
BROKER / DEALER OBLIGATIONS--9.9%
40,000,000 Bear Stearns Cos., Inc., VRN, 4.91%, due 5/3/99 (Note A) 4.91 40,000,000
49,000,000 Bear Stearns Cos., Inc., VRN, 5.03%, due 5/3/99 (Note A) 5.03 49,000,000
20,000,000 Bear Stearns Cos., Inc., VRN, 4.91%, due 5/7/99 (Note A) 4.91 20,000,000
70,000,000 Goldman Sachs Group, LP, VRN, 5.04%, due 5/25/99 (Note A) 5.04 70,000,000
10,000,000 Goldman Sachs Group, LP, VRN, 5.20%, due 7/7/99 (Note A) 5.01 10,012,879
120,000,000 Goldman Sachs Group, LP, VRN, 5.08%, due 7/15/99 (Notes A,B) 5.08 120,000,000
13,970,000 Lehman Bros. Holdings, Inc., 7.00%, due 5/13/99 (Insured:
MBIA) 5.09 13,978,405
15,000,000 Merrill Lynch & Co., Inc., VRN, 5.12%, due 5/3/99 (Note A) 5.02 15,001,974
7,000,000 Merrill Lynch & Co., Inc., VRN, 4.96%, due 5/5/99 (Note A) 4.91 7,001,681
25,000,000 Merrill Lynch & Co., Inc., VRN, 5.40%, due 5/17/99 (Note A) 4.96 25,086,535
7,500,000 Merrill Lynch & Co., Inc., VRN, 5.20%, due 5/24/99 (Note A) 5.01 7,511,972
5,000,000 Merrill Lynch & Co., Inc., VRN, 5.25%, due 5/25/99 (Note A) 5.25 5,001,850
25,000,000 Salomon Smith Barney Holdings, Inc., VRN, 5.15%, due 5/3/99
(Note A) 5.15 24,999,306
--------------
407,594,602
--------------
FINANCE & INSURANCE OBLIGATIONS--9.0%
10,000,000 Associates Corp. of N.A., 7.56%, due 6/15/99 5.00 10,030,242
21,000,000 CIT Group Holdings, Inc., 5.88%, due 12/9/99 5.02 21,104,977
16,800,000 General Motors Acceptance Corp., VRN, 4.97%, due 5/24/99
(Note A) 4.96 16,801,659
5,000,000 General Motors Acceptance Corp., VRN, 5.01%, due 6/21/99
(Note A) 5.02 4,999,744
25,000,000 General Motors Acceptance Corp., VRN, 4.96%, due 7/28/99
(Note A) 5.08 24,986,135
20,000,000 General Motors Acceptance Corp. Australia Finance, VRN,
5.08%, due 5/19/99 (Note A) 4.97 20,022,063
25,000,000 Heller Financial, Inc., VRN, 5.31%, due 5/3/99 (Insured:
MBIA) (Note A) 5.16 25,019,742
20,000,000 Household Finance Corp., VRN, 5.23%, due 5/3/99 (Note A) 5.02 20,002,987
10,000,000 Household Finance Corp., VRN, 5.13%, due 6/4/99 (Note A) 4.98 10,001,393
100,000,000 Sigma Finance, Inc., VRN, 5.17%, due 5/3/99 (Note A) 5.17 100,000,000
25,000,000 Sigma Finance, Inc., due 10/4/99 4.97 24,474,583
25,000,000 Sigma Finance, Inc., due 10/7/99 4.97 24,464,479
25,000,000 Sigma Finance, Inc., 5.20%, due 2/22/00 5.20 25,000,000
45,000,000 Xerox Credit Corp., 5.32%, due 3/31/00 5.35 44,989,232
--------------
371,897,236
--------------
INDUSTRIAL & OTHER OBLIGATIONS--0.4%
5,000,000 Ford Motor Credit Co., 7.45%, due 7/12/99 4.90 5,024,454
10,000,000 Frontenac Properties, Inc., VRN, 4.98%, due 5/7/99 (GTY:
Sisters of Mercy Health Sys., Inc.) (Notes A,C) 4.98 10,000,000
--------------
15,024,454
--------------
LOAN PARTICIPATIONS--3.8%
30,000,000 Four Times Square Partners, LP, 5.08%, due 6/2/99 (GTY:
Prudential Ins. Co. of America; Other Support:
Chase Manhattan Bank) (Note B) 5.08 30,000,000
49,000,000 Luddite Associates, 5.02%, due 5/10/99 (GTY: Prudential Ins.
Co. of America; Other Support:
Chase Manhattan Bank) (Note B) 5.02 49,000,000
</TABLE>
- --------------------------------------------------------------------------------
12
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 65,000,000 Prudential Ins. Co. of America, 5.08%, due 6/2/99 (Other
Support: Chase Manhattan Bank) (Note B) 5.08 $ 65,000,000
15,000,000 Three Embarcadero Ctr. West, 5.02%, due 5/10/99 (GTY:
Prudential Ins. Co. of America; Other Support:
Chase Manhattan Bank) (Note B) 5.02 15,000,000
--------------
159,000,000
--------------
TOTAL CORPORATE OBLIGATIONS--34.0% 1,401,771,289
--------------
BANK OBLIGATIONS
BANK COMMERCIAL PAPER--0.6%
25,000,000 Den Danske Bank A/S, due 7/27/99 4.86 24,713,625
--------------
BANK NOTES--14.8%
20,000,000 Abbey National Treasury Services, 5.72%, due 6/11/99 (GTY:
Abbey National PLC) 5.80 19,998,279
20,000,000 Abbey National Treasury Services, VRN, 4.85%, due 7/20/99
(GTY: Abbey National PLC) (Note A) 4.93 19,996,757
30,000,000 American Express Centurion Bank, VRN, 4.93%, due 5/10/99
(Note A) 4.93 30,000,000
30,000,000 Bank One Corp., VRN, 4.98%, due 6/15/99 (Note A) 4.96 30,006,309
89,000,000 Bankers Trust Co., New York, VRN, 5.06%, due 5/3/99 (Note A) 5.07 88,997,635
58,500,000 Branch Banking & Trust Co., NC, 4.96%, due 1/20/00 4.99 58,487,750
75,000,000 Comerica Bank, N.A., VRN, 4.88%, due 5/14/99 (Note A) 4.91 74,985,232
25,000,000 Comerica Bank, N.A., VRN, 4.80%, due 5/24/99 (Note A) 4.88 24,995,509
60,000,000 European American Bank, 4.91%, due 7/14/99 4.91 60,000,000
50,000,000 Fleet National Bank, VRN, 5.07%, due 5/3/99 (Note A) 5.12 49,978,005
25,000,000 LaSalle National Bank (Chicago), 4.97%, due 2/1/00 4.97 25,000,000
25,000,000 Morgan Guaranty Trust Co. of NY, VRN, 4.92%, due 5/28/99
(Note A) 4.93 24,998,639
105,000,000 Wells Fargo & Co., VRN, 4.88%, due 6/29/99 (Note A) 4.95 104,928,505
--------------
612,372,620
DOMESTIC BANK SUPPORTED OBLIGATIONS--7.0% --------------
7,560,000 701 Green Valley Association LLC, Ser. 1997 VRDN, 4.95%, due
5/7/99
(LOC: First Union National Bank) (Note C) 4.88 7,560,000
3,480,000 Adult Communities Total Services, Inc., Ser. 1996 VRDN,
4.99%, due 5/7/99
(LOC: LaSalle National Bank) (Note C) 4.92 3,480,000
2,060,000 Assisted Living Funding, LLC, Ser. 1997 VRDN, 5.05%, due
5/7/99 (LOC: First Union National Bank) (Note C) 5.05 2,060,000
12,800,000 Campus Crusade for Christ, Inc. Incremental Ser. 1997 VRDN,
4.95%, due 5/7/99
(LOC: First Union National Bank) (Note C) 4.88 12,800,000
20,000,000 Carolina Medi-Plan, Inc. Tax Ser. 1997 VRDN, 4.94%, due
5/7/99 (LOC: Wachovia Bank N.A.) (Note C) 4.94 20,000,000
7,500,000 CEGW, Inc. Tax. Notes Ser. 1999 VRDN, 5.00%, due 5/3/99
(LOC: PNC Bank, N.A.) (Note C) 4.93 7,500,000
21,600,000 EPI Corp., Taxable Adj. Rate Notes, Ser. 1998 VRDN, 5.00%,
due 5/3/99 (LOC: PNC Bank, N.A.) (Note C) 5.00 21,600,000
25,000,000 Gulf States Paper Corp. Tax. Ser. 1998 VRDN, 5.05%, due
5/7/99 (LOC: Wachovia Bank N.A.) (Note C) 5.05 25,000,000
15,840,000 Long Lane Master Trust II Ser. 1998C, VRN, 5.01%, due
6/25/99 (Counter Party: BankBoston, N.A.) (Notes A, B) 5.01 15,840,000
27,108,000 Long Lane Master Trust IV, due 5/28/99 (Counter Party:
BankBoston, N.A.) 4.86 27,009,598
3,900,000 Lowndes Corp. Ser. 1997 VRDN, 4.95%, due 5/7/99 (LOC: First
Union National Bank) (Note C) 4.88 3,900,000
31,550,000 Metrocrest Hosp. Auth., Ser. 1989A, due 6/2/99 (LOC: Bank of
New York) 5.04 31,409,777
30,000,000 Minmetals Capital & Securities, Inc., due 6/8/99 (LOC: Bank
of America NT & S.A.) 5.16 29,841,667
25,000,000 Minmetals Capital & Securities, Inc., due 7/22/99 (LOC: Bank
of America NT & S.A.) 4.96 24,722,681
7,475,000 Orloski Service Station Inc. & Affiliates (Frank & Adeline
Orloski) Tax. Ser. 1998A VRDN, 4.95%, due 5/7/99 (LOC: First
Union National Bank) (Note C) 4.88 7,475,000
6,965,000 Orloski Service Station Inc. & Affiliates (Orloski Service
Station Inc.) Tax. Ser. 1998B VRDN, 4.95%, due 5/7/99 (LOC:
First Union National Bank) (Note C) 4.88 6,965,000
7,380,000 Playworld Sys., Inc. Tax. Rev. Bonds Ser. 1998A VRDN, 4.95%,
due 5/7/99 (LOC: First Union National Bank) (Note C) 4.88 7,380,000
3,565,000 Rockland Industries, Inc. Tax. Ser. 1997 VRDN, 4.95%, due
5/7/99 (LOC: First Union National Bank) (Note C) 4.88 3,565,000
7,105,000 Roosevelt Paper Co. Ser. 1997 VRDN, 5.00%, due 5/7/99 (LOC:
CoreStates Bank, N.A.) (Note C) 4.93 7,105,000
3,885,000 Senior Sys. Technology LLC, VRDN, 5.10%, due 5/7/99 (LOC:
Comerica Bank - California) (Note C) 5.10 3,885,000
5,100,000 Stech, LLP Tax. Adj. Rate Bonds, Ser. 1998, VRDN, 5.00%, due
5/3/99 (LOC: PNC Bank, N.A.) (Note C) 4.93 5,100,000
2,270,000 Trap Rock Industries, Inc., Ser. 1997 VRDN, 5.00%, due
5/7/99 (LOC: CoreStates Bank, N.A.) (Note C) 4.93 2,270,000
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 8,770,000 Triad Group, Inc., Ser. 1997 VRDN, 5.00%, due 5/7/99 (LOC:
First Union National Bank) (Note C) 4.93 $ 8,770,000
3,975,000 William Thies & Sons, Inc., Ser. 1997 VRDN, 4.95%, due
5/7/99 (LOC: First Union National Bank) (Note C) 4.88 3,975,000
--------------
289,213,723
DOMESTIC CERTIFICATES OF DEPOSIT--1.3% --------------
4,550,000 Bank of New York, NY, 5.70%, due 5/26/99 5.15 4,551,367
25,000,000 Bankers Trust Co., New York, VRN, 5.03%, due 5/3/99 (Note A) 5.03 25,000,000
25,000,000 PNC Bank, N.A., VRN, 4.78%, due 5/27/99 (Note A) 4.86 24,995,531
--------------
54,546,898
FOREIGN BANK SUPPORTED OBLIGATIONS--17.4% --------------
15,000,000 Banca Serfin S.A., Institucion de Banca Multiple, Grupo
Financiero Serfin, due 8/26/99 (LOC: Barclays Bank PLC) 5.13 14,759,175
35,000,000 Banca Serfin S.A., Institucion de Banca Multiple, Grupo
Financiero Serfin, due 11/18/99 (LOC: Barclays Bank PLC) 5.13 34,046,367
50,000,000 Banca Serfin S.A., Institucion de Banca Multiple, Grupo
Financiero Serfin, due 11/22/99 (LOC: Barclays Bank PLC) 5.10 48,602,014
40,000,000 Banco Bozano Simonsen, S.A., due 6/18/99 (LOC: Banco
Santander, S.A.) 5.43 39,722,133
10,000,000 Banco Itau S.A., due 6/17/99 (LOC: Barclays Bank PLC)
15,000,000 Bancomer, S.A., Institucion de Banca Multiple, Grupo 4.93 9,936,419
Financiero, due 5/12/99 (LOC: Bank of Montreal) 5.17 14,976,992
20,000,000 Bancomer, S.A., Institucion de Banca Multiple, Grupo
Financiero, due 8/11/99 (LOC: Bank of Montreal) 4.99 19,724,033
25,000,000 Bancomer, S.A., Institucion de Banca Multiple, Grupo
Financiero, due 8/23/99 (LOC: Bank of Montreal) 4.99 24,614,458
25,000,000 BOS International Australia, Ltd., VRN, 4.91%, due 5/4/99
(GTY: Bank of Scotland) (Note A) 4.83 24,989,679
20,000,000 China Merchants (Cayman) Inc., due 6/7/99 (LOC: Credit
Suisse First Boston) 4.92 19,899,894
19,000,000 COSCO (Cayman) Fund Co. Ltd., due 5/19/99 (LINE: Rabobank
Nederland) 4.94 18,953,640
20,000,000 COSCO (Cayman) Fund Co. Ltd., due 6/14/99 (LINE: Rabobank
Nederland) 4.96 19,880,222
30,000,000 COSCO (Cayman) Fund Co. Ltd., due 6/25/99 (LINE: Rabobank
Nederland) 4.94 29,776,333
30,000,000 COSCO (Cayman) Fund Co. Ltd., due 7/20/99 (LINE: Rabobank
Nederland) 4.92 29,676,000
30,000,000 COSCO (Cayman) Fund Co. Ltd., due 8/26/99 (LINE: Rabobank
Nederland) 4.92 29,528,100
30,000,000 Daewoo International (America) Corp., due 7/21/99 (LOC:
Credit Suisse First Boston) 4.90 29,677,350
45,000,000 Holy Cross Health Sys. Corp. Ser. 1996, due 5/12/99 (LOC:
Northern Trust Co.) 4.92 44,932,900
32,800,000 Holy Cross Health Sys. Corp. Ser. 1996, due 7/14/99 (LIQ:
KBC Bank NV, Northern Trust Co.) 4.92 32,472,328
50,700,000 Holy Cross Health Sys. Corp. Ser. 1996, due 8/11/99 (LIQ:
KBC Bank NV, Northern Trust Co.) 5.00 49,996,115
30,000,000 KOC Funding Corp., due 7/14/99 (LOC: Credit Suisse First
Boston) 4.98 29,699,683
25,000,000 Nacional Financiera, S.N.C., due 5/19/99 (LOC: Barclays Bank
PLC) 4.92 24,939,125
24,500,000 Nacional Financiera, S.N.C., due 11/22/99 (LOC: Barclays
Bank PLC) 5.14 23,835,079
16,000,000 St. Francis Place LP Tax. MFH (St. Francis Place) Ser. 1998
VRDN, 4.98%, due 5/7/99
(LOC: Credit Suisse First Boston) (Note C) 4.91 16,000,000
800,000 Synectic Partnership VRDN, 5.15%, due 5/7/99 (LOC: LaSalle
National Bank) (Note C) 5.08 800,000
21,250,000 TEB Funding Corp. I, due 5/28/99 (LOC: Societe Generale) 5.15 21,169,834
17,250,000 TEB Funding Corp. II, due 5/28/99 (LOC: Societe Generale) 5.15 17,184,924
20,000,000 Transportadora de Gas del Sur, S.A., due 7/22/99 (LOC:
Dresdner Bank AG) 4.89 19,779,967
25,000,000 Unibanco-Uniao de Banco Brasileiros S.A., Ser. A & B, due
6/28/99 (LOC: Westdeutsche Landesbank) 5.75 24,780,486
--------------
714,353,250
--------------
YANKEE BANK CERTIFICATES OF DEPOSIT--15.4%
52,500,000 Abbey National Treasury Services, 5.64%, due 7/15/99 (GTY:
Abbey National PLC) 5.07 52,553,484
30,000,000 Banque Nationale de Paris, 5.84%, due 5/5/99 5.89 29,999,843
50,000,000 Bayerische Hypo -und Vereinsbank AG, VRN, 4.85%, due 5/25/99
(Note A) 4.90 49,975,658
60,000,000 Bayerische Hypo -und Vereinsbank AG, 5.18%, due 5/4/00 5.23 59,968,144
27,600,000 Commerzbank AG, 5.16%, due 2/25/00 5.22 27,586,894
40,000,000 Commerzbank AG, 5.17%, due 4/24/00 5.22 39,981,068
50,000,000 Den Danske Bank A/S, VRN, 4.81%, due 5/3/99 (Note A) 4.88 49,996,890
50,000,000 Deutsche Bank AG, 5.08%, due 2/17/00 5.11 49,988,434
60,000,000 Societe Generale, VRN, 4.85%, due 5/3/99 (Note A) 4.93 59,998,070
50,000,000 Societe Generale, VRN, 4.87%, due 5/3/99 (Note A) 4.92 49,979,103
75,000,000 Svenska Handelsbanken AB, 5.23%, due 3/1/00 5.26 74,981,905
90,000,000 Svenska Handelsbanken AB, VRN, 4.82%, due 5/3/99 (Note A) 4.88 89,994,536
--------------
635,004,029
--------------
TOTAL BANK OBLIGATIONS--56.5% 2,305,490,520
--------------
</TABLE>
- --------------------------------------------------------------------------------
14
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAXABLE MUNICIPAL OBLIGATIONS
$ 5,000,000 Bergen Cty. NJ Imp. Auth., Cty. Gtd. Proj. Notes (Bergen
Pines Cty. Hosp. Proj.) Ser. 1998, 5.28%, due 3/16/00 5.33 $ 5,000,000
2,255,000 Berks Cty. IDA, Ser. 1996B VRDN, 5.00%, due 5/7/99 (LOC:
CoreStates Bank, N.A.) (Note C) 4.93 2,255,000
25,000,000 Broward Cty., FL Pro. Sports Fac. Tax & Rev. Bonds (Broward
Cty. Civic Arena Proj.) Ser. 1996B, VRDN, 4.94%, due 5/3/99
(Insured: MBIA; LIQ: Citibank N.A.) (Note C) 4.94 25,000,000
7,000,000 CA Educ. Fac. Auth. Rev. Bonds (Univ. of Judaism) Ser.
1998B, VRDN, 4.90%, due 5/7/99 (LOC: Allied Irish Banks,
PLC) (Note C) 4.83 7,000,000
38,000,000 CA Pollution Control Fin. Auth. Env. Imp. Rev. Bonds
(Atlantic Richfield Co. Proj.) Ser. 1997, 4.97%, due 5/12/99
(GTY: Atlantic Richfield Co.) 4.97 38,000,000
50,000,000 CA Pollution Control Fin. Auth. Env. Imp. Rev. Bonds
(Atlantic Richfield Co. Proj.) Ser. 1997, 4.93%, due 6/10/99
(GTY: Atlantic Richfield Co.) 4.93 50,000,000
25,000,000 CA Pollution Control Fin. Auth. Rev. Bonds (Browning Ferris
Proj.) Ser. 1997, 4.98%, due 8/11/99 (LOC: Texas Commerce
Bank (Chase)) 4.98 25,000,000
4,735,000 City of Gaithersburg MD EDR (Asbury Methodist Village, Inc.
Fac.) Ser. 1997B VRDN, 4.99%, due 5/7/99 (Insured: MBIA;
LIQ: Nationsbank N.A.) (Note C) 4.92 4,735,000
4,420,000 Greater Orlando Aviation Auth., Orlando, FL Airport Fac.
Rev. Bonds, Tax. Ser. C, 7.80%, due 10/1/99
(GTY: MBIA) 5.03 4,469,358
26,000,000 Gulf Coast IDA Env. Fac. Rev. Bonds (CITGO Petroleum Corp.
Proj.) Tax. Ser. 1998A, 4.95%, due 8/10/99
(LOC: Royal Bank of Canada) 4.95 26,000,000
5,500,000 IDA of City Portsmouth (VA) (PortCentre I Proj.) Ser. 1997B
VRDN, 5.05%, due 5/3/99 (LOC: NationsBank, N.A.) (Note C) 5.05 5,500,000
23,900,000 Ill. Dev. Auth. Revenue Bonds Ser. 1996 VRDN, 5.00%, due
5/7/99 (LOC: Northern Trust Co.) (Note C) 4.93 23,900,000
6,225,000 Ill. Health Facilities Auth. Ser. 1996F VRDN, 4.99%, due
5/7/99 (LOC: LaSalle National Bank) (Note C) 4.92 6,225,000
5,000,000 Maryland Health & Higher Educ. Fac. Auth. Rev. Bonds, Ser.
1998B VRDN, 5.05%, due 5/7/99
(LOC: First Union National Bank) (Note C) 5.05 5,000,000
11,000,000 Miss. Bus. Fin. Corp. IDB (GE Plastics Finishing Inc. Proj.)
Ser. 1998 VRDN, 4.92%, due 5/3/99 (GTY: General Electric Co.)
(Note C) 4.92 11,000,000
4,880,000 Miss. Bus. Fin. Corp. Rev. Bonds (ABT Co. Inc. Proj.) Ser. B
VRDN, 4.95%, due 5/7/99
(LOC: First Union National Bank) (Note C) 4.88 4,880,000
6,920,000 Miss. Bus. Fin. Corp. Rev. Bonds (Dollar Tree Proj.) Ser.
1998 VRDN, 4.95%, due 5/7/99 (LOC: First Union National Bank)
(Note C) 4.88 6,920,000
2,000,000 New Hampshire Bus. Fin. Auth. (Foundation for Seacoast
Health) Ser. 1998B VRDN, 4.95%, due 5/7/99
(LOC: Fleet Bank, NH) (Note C) 4.95 2,000,000
3,600,000 NJ EDA (The Morey Organization, Inc. Proj) Ser. 1997 VRDN,
5.00%, due 5/7/99 (LOC: CoreStates Bank, N.A.) (Note C) 4.93 3,600,000
6,000,000 NJ EDA State Pension Funding Bonds Ser. 1997A, VRDN, 4.94%,
due 5/3/99 (Insured: MBIA; LIQ: Citibank, N.A.) (Note C) 4.94 6,000,000
3,905,000 PA DFA Taxable Dev. Rev. Bonds (Country Meadows of Allentown
Proj.) Ser. 1996B VRDN, 5.05%, due 5/7/99 (LOC: Mellon Bank,
N.A.) (Note C) 5.05 3,905,000
13,500,000 State of Ohio, Taxable Dev. Asst., Ser. 1996, 4.94%,
Optional Put 5/3/99 (Insured: AMBAC; LIQ: Citibank, N.A.) 4.94 13,500,000
20,000,000 State of Ohio, Taxable Dev. Asst. Ser. CR16T, 4.94%,
Optional Put 5/3/99 (Insured: AMBAC; LIQ: Citibank, N.A.) 4.94 20,000,000
14,075,000 Trinity River Auth., TX PCR, Ser. B, 4.95%, due 5/13/99
(LOC: Canadian Imperial Bank of Commerce) 4.95 14,075,000
3,900,000 Westchester Cty., NY IDA (BWP Distributors Inc. Proj.) Ser.
1997 VRDN, 4.95%, due 5/7/99 (LOC: First Union National Bank)
(Note C) 4.88 3,900,000
TOTAL TAXABLE MUNICIPAL OBLIGATIONS--7.7% --------------
317,864,358
--------------
REPURCHASE AGREEMENTS--2.9%
121,000,000 Salomon Smith Barney, Inc.,
*dated 4/30/99, due 5/3/99, in the amount of $121,049,610,
*fully collateralized by $141,645,298 U.S Government
securities, value $123,420,000 4.92 121,000,000
--------------
TOTAL INVESTMENTS--101.1% 4,170,839,792
OTHER ASSETS AND LIABILITIES, NET--(1.1%) (45,620,902)
--------------
NET ASSETS--100.0% $4,125,218,890
==============
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO THE SCHEDULES OF INVESTMENTS AND FINANCIAL
STATEMENTS.
- --------------------------------------------------------------------------------
15
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
U.S. GOVERNMENT PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FEDERAL FARM CREDIT BANK--1.8%
$ 10,000,000 Notes, 4.785%, due 6/3/99 (Note A) 4.82 $ 9,996,100
2,000,000 Notes, 5.800%, due 11/8/99 4.88 2,008,986
--------------
12,005,086
--------------
FEDERAL HOME LOAN BANK--46.7%
15,000,000 Notes, 4.850%, due 5/3/99 (Note A) 4.93 14,998,972
22,500,000 Notes, 4.910%, due 5/3/99 (Note A) 4.97 22,492,461
22,500,000 Notes, 4.910%, due 5/3/99 (Note A) 4.98 22,492,461
25,000,000 Notes, 4.910%, due 5/3/99 (Note A) 4.97 24,992,161
75,000,000 Notes, 4.955%, due 5/3/99 (Note A) 5.01 74,964,241
9,000,000 Notes, 4.865%, due 5/4/99 (Note A) 4.80 9,000,028
2,655,000 Notes, 5.705%, due 5/5/99 5.57 2,655,028
8,500,000 Notes, 5.605%, due 6/11/99 4.84 8,505,656
10,000,000 Notes, 5.540%, due 7/15/99 4.75 10,015,148
15,000,000 Notes, 8.600%, due 8/25/99 4.89 15,166,146
9,125,000 Notes, 6.030%, due 10/1/99 4.89 9,166,602
2,000,000 Notes, 5.910%, due 11/5/99 4.87 2,009,202
5,000,000 Notes, 5.930%, due 12/10/99 5.00 5,026,805
19,350,000 Notes, 5.010%, due 2/3/00 (Note C) 5.01 19,350,000
15,000,000 Notes, 4.950%, due 2/17/00 4.98 14,995,974
15,000,000 Notes, 5.000%, due 2/24/00 5.02 14,996,957
15,000,000 Notes, 5.050%, due 3/3/00 (Note C) 4.97 14,998,025
10,000,000 Notes, 5.100%, due 3/3/00 5.10 9,996,770
10,000,000 Notes, 5.050%, due 4/26/00 5.03 9,999,803
--------------
305,822,440
--------------
FEDERAL HOME LOAN MORTGAGE CORP.--3.9%
22,100,000 Discount Notes, due 5/4/99 5.02 22,091,067
1,550,000 Notes, 7.125%, due 7/21/99 4.79 1,557,806
2,000,000 Notes, 5.940%, due 9/21/99 4.85 2,008,038
--------------
25,656,911
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--23.4%
9,650,000 Mortgage-backed Discount Notes, due 6/2/99 4.86 9,609,693
34,225,000 Mortgage-backed Discount Notes, due 7/1/99 4.88 33,945,477
12,500,000 Mortgage-backed Discount Notes, due 7/1/99 4.91 12,397,274
20,000,000 Mortgage-backed Discount Notes, due 7/1/99 4.76 19,838,608
3,300,000 Mortgage-backed Discount Notes, due 7/1/99 4.87 3,273,370
10,000,000 Mortgage-backed Discount Notes, due 8/3/99 4.82 9,879,678
10,000,000 Notes, 4.850%, due 5/3/99 (Note A) 4.93 9,999,422
4,000,000 Notes, 4.687%, due 5/4/99 (Note A) 4.91 3,998,897
15,000,000 Notes, 4.688%, due 5/28/99 (Note A) 4.77 14,996,963
22,500,000 Notes, 4.820%, due 6/17/99 (Note A) 4.88 22,497,021
4,800,000 Notes, 5.480%, due 7/9/99 4.85 4,804,173
5,000,000 Notes, 5.830%, due 12/10/99 4.91 5,026,782
2,760,000 Notes, 4.720%, due 12/16/99 4.83 2,758,012
--------------
150,267,358
--------------
STUDENT LOAN MARKETING ASSOCIATION--15.4%
25,000,000 Notes, 4.860%, due 5/3/99 (Note A) 4.94 24,992,614
10,000,000 Notes, 5.107%, due 5/3/99 (Note A) 5.08 9,997,195
10,000,000 Notes, 5.037%, due 5/4/99 (Note A) 5.08 9,996,850
10,000,000 Notes, 5.046%, due 5/4/99 (Note A) 5.01 9,998,504
25,000,000 Notes, 5.207%, due 5/4/99 (Note A) 5.19 24,992,333
5,000,000 Notes, 5.630%, due 6/2/99 4.60 5,004,144
4,447,000 Notes, 4.500%, due 8/2/99 5.65 4,438,736
11,625,000 Notes, 4.500%, due 8/2/99 4.98 11,603,396
--------------
101,023,772
--------------
TENNESSEE VALLEY AUTHORITY--1.6%
10,000,000 Notes, 8.375%, due 10/1/99 4.91 10,140,250
--------------
REPURCHASE AGREEMENTS--10.0%
$ 65,199,000 Salomon Smith Barney, Inc.,
*dated 4/30/99, due 5/3/99, in the amount of $65,225,732
*fully collateralized by $67,803,102 U.S. Government
securities, value $66,502,981 4.92 $ 65,199,000
--------------
TOTAL INVESTMENTS--102.8% 672,872,829
OTHER ASSETS AND LIABILITIES, NET--(2.8%) (18,179,351)
--------------
NET ASSETS--100.0% $ 654,693,478
==============
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO THE SCHEDULES OF INVESTMENTS AND FINANCIAL
STATEMENTS.
- --------------------------------------------------------------------------------
16
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
ALABAMA--1.98%
$ 205,000 Alabama HFA Rev. Bonds (SFM) Ser. D1, 4.10%, due 10/1/99
(GNMA/FNMA Collateralized) 3.25 $ 205,712
280,000 Brewton GO Bonds, 3.25%, due 12/1/99 (Insured: MBIA) 3.25 280,000
5,000,000 Huntsville IDB Rev. Bonds (Central CPVC Corp. Proj.) Ser.
1998 VRDN, 4.10% (LOC: First Union National Bank) (Note C) 4.10 5,000,000
3,000,000 Montgomery IDB Rev. Bonds (Kinpak Inc. Proj.) VRDN, 4.10%
(LOC: First Union National Bank ) (Note C) 4.10 3,000,000
--------------
8,485,712
--------------
ALASKA--0.28%
1,200,000 Alaska IDA Rev. Bonds (Alaska Hotel Prop. Inc.) VRDN, 3.70%
(LOC: National Westminster Bank) (Note C) 3.70 1,200,000
--------------
ARIZONA--1.08%
205,000 Arizona COP, Ser. B, 5.50%, due 9/1/99 (Insured: AMBAC) 3.20 206,550
2,120,000 Navajo Cty. IDA Rev. Bonds (Citizens Util. Co. Proj.) VRDN,
4.00% (Note C) 4.00 2,120,000
2,000,000 Pima Cty. IDA (Tucson Elec. Co. Proj.) VRDN, 4.00% (LOC:
Societe Generale) (Note C) 4.00 2,000,000
300,000 Scottsdale IDA Hosp. Rev. Bonds (Scottsdale Mem. Hosp.)
4.50%, due 9/1/99 (Insured: AMBAC) 3.25 301,231
--------------
4,627,781
--------------
ARKANSAS--0.37%
1,570,000 Arkansas DFA Rev. Bonds (Conestoga Wood Proj.) VRDN, 4.10%
(LOC: First Union National Bank) (Note C) 4.10 1,570,000
--------------
CALIFORNIA--2.66%
300,000 California Alternative Energy Source Fin. Auth., Ser. 1986
VRDN, 3.50% (LOC: Banque Nationale de Paris) (Note C) 3.50 300,000
1,055,000 California Higher Educ. Student Loan Rev. Bonds, Ser. E2,
5.90%, due 12/1/99 3.20 1,071,327
4,000,000 California School Cash Reserve Prog. Auth., Ser. A, 4.50%,
due 7/2/99 3.74 4,004,973
6,000,000 Student Educ. Loan Marketing Corp., VRDN, 4.15% (LOC:
Dresdner Bank) (Note C) 4.15 6,000,000
--------------
11,376,300
--------------
COLORADO--1.68%
265,000 Colorado HFA Rev. Bonds, Ser. A4, 4.55%, due 10/1/99
(Insured: FHA) 3.55 266,079
6,725,000 Commerce City Rev. Bonds (Golf Enterprise) Ser. 1994 VRDN,
4.00% (LOC: U.S. Bank of Washington) (Note C) 4.00 6,725,000
225,000 Morgan Cty. SD #RE-3, 3.25%, due 12/1/99 (Insured: AMBAC) 3.25 225,000
--------------
7,216,079
--------------
CONNECTICUT--0.16%
505,000 Connecticut HFA Rev. Bonds, Ser. H2, 3.25%, due 11/15/99 3.25 505,000
200,000 New Britain GO Bonds, 4.40%, due 2/1/00 (Insured: MBIA) 3.30 201,615
--------------
706,615
--------------
DELAWARE--2.75%
10,100,000 Delaware EDA Rev. Bonds (DE Clean Pwr. Proj.) Ser. 1997C
VRDN, 4.00% (LOC: Canadian Imperial Bank of Commerce) (Note
C) 4.00 10,100,000
500,000 Delaware Solid Waste Auth. Rev. Bonds, Ser. A, 6.75%, due
7/1/99 (Insured: MBIA) 3.20 502,922
1,160,000 Wilmington Community Rev. Bonds, Program A, VRDN, 4.20%
(LOC: Corestates Bank) (Note C) 4.20 1,160,000
--------------
11,762,922
--------------
DISTRICT OF COLUMBIA--2.80%
12,000,000 Washington DC HFA COP (Tyler House Apts. Proj.) Ser. 1995A
VRDN, 4.15%
(LOC: Landesbank Hessen Thuringen) (Note C) 4.15 12,000,000
--------------
FLORIDA--7.28%
300,000 Alachua Cty. Health Facs. Rev. Bonds (Shands Teaching Hosp.)
Ser. A, 4.25%, due 12/1/99 (Insured: MBIA) 3.20 301,801
500,000 Dade Cty. SD Rev. Bonds, 7.38%, due 7/1/99, Prerefunded @
102 (Note D) 3.20 513,384
2,000,000 Florida Board of Educ. (ABN-AMRO Munitops 1998) VRDN, 4.08%
(LIQ: ABN-AMRO Bank) (Note C) 4.08 2,000,000
1,600,000 Florida Gulf Coast Univ. COP, VRDN, 4.05% (LOC: First Union
National Bank) (Note C) 4.05 1,600,000
1,000,000 Lee Cty. Hosp. Board of Dir. (Lee Memorial Hosp. Proj.) Ser.
1997B, 3.20%, due 5/10/99 (LINE: SunBank) 3.20 1,000,000
2,000,000 Lee Cty. Hosp. Board of Dir. (Lee Memorial Hosp. Proj.) Ser.
1997B, 3.20%, due 6/8/99 (LINE: SunBank) 3.20 2,000,000
500,000 Lee Cty. Hosp. Board of Dir. (Lee Memorial Hosp. Proj.) Ser.
1992D, 3.15%, due 6/8/99 (LINE: SunBank) 3.15 500,000
2,500,000 Orange Cty. IDA (Sutherland Printing Proj.) Ser. 1998A VRDN,
4.15% (LOC: First Union National Bank) (Note C) 4.15 2,500,000
2,500,000 Pinellas Cty. IDR Bonds, (Pozin Enterprises Onc. Proj.)
VRDN, 4.15% (LOC: Nationsbank) (Note C) 4.15 2,500,000
</TABLE>
- --------------------------------------------------------------------------------
17
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 10,100,000 Sarasota Cty. Pub. Hosp. Dist. (Sarasota Mem. Hosp.) Ser.
1996A, 3.15%, due 5/7/99 (LIQ: SunTrust Bank) 3.15 $ 10,100,000
8,165,000 Sunrise Util. Sys. Rev. Bonds, Ser. PCR17 VRDN, 4.08% (LIQ:
Citibank) (Note C) 4.08 8,165,000
--------------
31,180,185
--------------
GEORGIA--3.44%
3,860,000 Clayton Cty. Hsg. Rev. Bonds (Huntington Woods Proj.) Ser. A
VRDN, 4.00% (SBPA: Societe Generale) (Note C) 4.00 3,860,000
5,598,000 Dekalb Cty. Hsg. Auth. SFM, Ser. 1997A VRDN, 4.15% (LIQ:
Bank of New York) (Note C) 4.15 5,598,000
1,500,000 Gwinnett Cty. IDR (Barco Inc. Proj.) VRDN, 4.10% (LOC: First
Union National Bank) (Note C) 4.10 1,500,000
1,800,000 Talbot Cty. Dev. Auth. IDR (Douglas Asphalt Co. Proj.) VRDN,
4.15% (LOC: First Union National Bank) (Note C) 4.15 1,800,000
2,000,000 Valdosta Lowndes Cty. IDR (Reames Cos. Proj.) Ser 1998 VRDN,
4.10% (LOC: Nationsbank) (Note C) 4.10 2,000,000
--------------
14,758,000
--------------
ILLINOIS--6.96%
2,500,000 Arcola IDR (Herff Jones, Inc. Proj.) VRDN, 4.02% (LOC:
Wachovia Bank) (Note C) 4.02 2,500,000
1,400,000 Bedford Park IDR Bonds (Cintas Sales Corp. Proj.) VRDN,
4.05% (LOC: PNC Bank) (Note C) 4.05 1,400,000
2,900,000 Chicago (Muni. Sec. Trust Receipts) Ser. A2 VRDN, 4.15%
(Insured: AMBAC; LIQ: Credit Suisse) (Note C) 4.15 2,900,000
2,625,000 Chicago Sales Tax Rev. Bonds, VRDN, 4.16% (LIQ: Citibank)
(Note C) 4.16 2,625,000
250,000 Dekalb Ogle Ctys. GO Bonds (Community College Dist.# 523)
6.25%, due 12/1/99 (Insured: AMBAC) 3.20 254,373
500,000 Glenview Bond Antic. Bonds, 5.55%, due 12/1/99 3.73 505,186
3,000,000 Illinois DFA Rev. Bond (Citizens Util. Co. Proj.) VRDN,
4.00% (Note C) 4.00 3,000,000
575,000 Illinois DFA Rev. Bonds (D.E. Akin Seed Proj.) VRDN, 4.20%
(LOC: Banc One) (Note C) 4.20 575,000
1,750,000 Illinois DFA Rev. Bonds (Emtech Machining & Grinding Inc.,
Proj.) VRDN, 4.02% (LOC: LaSalle National Bank) (Note C) 4.02 1,750,000
1,300,000 Illinois GO Bonds, 5.60%, due 10/1/99 2.86 1,314,727
500,000 Illinois Health Fac. Auth. Rev. Bonds (Trinity Med. Ctr.)
4.60%, due 7/1/99 (Insured: FSA) 3.45 500,937
1,100,000 Madison Cty. Envir. Rev. Bonds (Shell-Wood River Proj.) Ser.
1997A VRDN, 4.30% (Note C) 4.30 1,100,000
1,700,000 North Aurora IDR (Oberweiss Dairy, Inc. Proj.) VRDN, 4.02%
(LOC: LaSalle National Bank) (Note C) 4.02 1,700,000
2,210,000 Oak Lawn IDR (Lavergne Partners Proj.) VRDN, 4.02% (LOC:
LaSalle National Bank) (Note C) 4.02 2,210,000
4,000,000 Paris IDR Bonds (Simonton Building Products Inc. Proj.)
VRDN, 4.15% (LOC: Wachovia Bank) (Note C) 4.15 4,000,000
2,500,000 Richmond IDR (Maclean Fogg Co. Proj.) VRDN, 4.15% (LOC: Bank
of America) (Note C) 4.15 2,500,000
1,000,000 Southwestern Illinois Dev. Auth. Solid Waste Disp. (Shell
Oil Co.-Wood River Proj.) Ser. 1991
VRDN, 4.30% (Note C) 4.30 1,000,000
--------------
29,835,223
--------------
INDIANA--3.74%
2,170,000 Indiana Bond Bank Rev. Bonds, 3.10%, due 2/1/00 (Insured:
AMBAC) 3.10 2,170,000
1,400,000 Indiana Employment Dev. Commission Rev. Bonds (Fischer
Enterprises Proj.) VRDN, 4.15% (LOC: PNC Bank) (Note C) 4.15 1,400,000
235,000 Indiana St. Univ. Rev. Bonds (Student Fees) Ser. I, 4.00%,
due 10/1/99 (Insured: FGIC) 3.20 235,768
8,000,000 Jeffersonville EDR Bonds (Apollo America Corp. Proj.) VRDN,
3.85% (LOC: Chase Manhattan Bank) (Note C) 3.85 8,000,000
1,000,000 New Albany EDR Bonds (Gordon & Jeff Huncilman Proj.) VRDN,
4.15% (LOC: PNC Bank) (Note C) 4.15 1,000,000
3,000,000 Newton Cty. IDR (Intec Group, Inc. Proj.) VRDN, 4.02% (LOC:
LaSalle National Bank) (Note C) 4.02 3,000,000
200,000 West Lafayette Rev. Bonds (Junior-Senior High School Bldg.
Corp.) 5.00%, due 7/15/99 (Insured: FSA) 3.90 200,438
--------------
16,006,206
--------------
IOWA--2.04%
4,200,000 Dubuque IDR Bonds (Jeld-Wen, Inc. Proj.) Ser. 1988 VRDN,
4.40% (LOC: ABN-AMRO Bank) (Note C) 4.40 4,200,000
1,980,000 Iowa Fin. Auth. Single Family Rev. Bonds, GNMA Ser. A,
3.25%, put 5/1/99 (GNMA Collateralized) 3.30 1,979,505
1,265,000 Iowa Fin. Auth. Single Family Rev. Bonds, GNMA Ser. A,
3.20%, put 11/1/99 (GNMA Collateralized) 3.20 1,265,000
980,000 Iowa Higher Educ. Loan Auth. Rev. Bonds, 5.00%, due 8/1/99
(Insured: MBIA) 3.55 983,488
300,000 Waterloo Rev. Bonds (Wheaton Franciscan Services) Ser. A,
7.10%, due 8/15/99, Prerefunded @ 102 (Note D) 3.43 309,061
--------------
8,737,054
--------------
KANSAS--0.09%
400,000 Butler Cty. Solid Waste Rev. Bonds (Texaco Refining &
Marketing Proj.) Ser. 1996B VRDN, 4.30% (Note C) 4.30 400,000
--------------
KENTUCKY--0.54%
310,000 Erlanger GO Bonds, 3.75%, due 11/1/99 (Insured: AMBAC) 3.30 310,682
2,000,000 Kentucky Turnpike Auth. (Trust Rec.) Ser. 17 VRDN, 4.10%
(LIQ: Commerzbank)) (Note C) 4.10 2,000,000
--------------
2,310,682
--------------
</TABLE>
- --------------------------------------------------------------------------------
18
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOUISIANA--1.96%
$ 6,889,000 Calcasieu Parish Pub. Trust Auth. Rev. Bonds (WPT Corp.
Proj.) Ser. 1997 VRDN, 4.15% (LOC: Morgan Guaranty) (Note C) 4.15 $ 6,889,000
900,000 Placquemines Parish Env. Rev. Bonds (BP Exploration & Oil
Proj.) Ser. 1994 VRDN, 4.30% (Note C) 4.30 900,000
595,000 St. Tammany Parish Sales Tax Rev. Bonds, 7.00%, due 4/1/00
(Insured: FGIC) 3.25 614,921
--------------
8,403,921
--------------
MARYLAND--5.83%
7,500,000 Anne Arundel Cty. (Baltimore Gas & Elec. Proj.) Ser. 1988,
2.75%, due 6/14/99 (SBPA: Bank of New York, Chemical Bank) 2.75 7,500,000
6,575,000 Baltimore Cty. Rev. Auth. (Golf Systems) VRDN, 3.85% (LOC:
First National Bank of Maryland) (Note C) 3.85 6,575,000
2,500,000 Maryland Health & Higher Educ. (Deaton Special Hosp. & Home
Proj.) VRDN, 3.85%
(LOC: First National Bank of Maryland) (Note C) 3.85 2,500,000
2,100,000 Maryland Health & Higher Educ. (Kennedy Krieger Proj.) VRDN,
4.10%
(LOC: First National Bank of Maryland) (Note C) 4.10 2,100,000
1,900,000 Maryland Health & Higher Educ. (North Arundel Hosp. Proj.)
VRDN, 4.05% (LOC: Mellon Bank) (Note C) 4.05 1,900,000
4,400,000 Maryland Health & Higher Educ. (Univ. of Maryland Med. Sys.)
Ser. A VRDN, 3.85% (LOC: First National Bank of Maryland)
(Note C) 3.85 4,400,000
--------------
24,975,000
--------------
MASSACHUSETTS--1.10%
137,000 Great Barrington GO Bonds, 6.00%, due 6/15/99 (Insured:
MBIA) 3.90 137,344
690,000 Massachusetts Educ. Loan Auth, Ser. 1996B, 4.55%, due 7/1/99
(Insured: AMBAC) 4.00 690,613
500,000 Massachusetts Water Res. Auth. Rev. Bonds, Ser. A, 7.38%,
due 4/1/00, Prerefunded @ 102 (Note D) 3.20 528,363
500,000 New England Educ. Loan Marketing Corp. (Senior Issue A)
6.13%, due 9/1/99 3.40 504,474
2,835,000 Worchester GO BAN, 3.25%, due 8/26/99 3.10 2,836,335
--------------
4,697,129
--------------
MICHIGAN--0.05%
205,000 Wayne Charter Cty. Airport Rev. Bonds (Detroit Met. Wayne
Cty.) 5.25%, due 12/1/99 (Insured: MBIA) 3.35 207,225
--------------
MINNESOTA--0.27%
910,000 Duluth ISD #709, Ser. B, 4.20%, due 2/1/00 (Insured: AMBAC) 3.20 916,648
220,000 Elk River ISD GO Bonds, 5.00%, due 2/1/00 (Insured: AMBAC) 3.25 222,828
--------------
1,139,476
--------------
MISSISSIPPI--0.35%
1,500,000 Mississippi Higher Educ. Rev. Bonds, Ser. A, 4.80%, due
9/1/99 3.30 1,507,320
--------------
MISSOURI--0.35%
215,000 Columbia Sewer Rev. Bonds, 6.00%, due 10/1/99 (Insured:
MBIA) 3.40 217,283
650,000 Independence Water Util. Rev. Bonds, 3.25%, due 11/1/99
(Insured: AMBAC) 3.25 650,000
600,000 Phelps Cty. Hosp. Rev. Bonds (Phelps Cty. Regional Med.
Ctr.) 8.30%, due 3/1/00, Prerefunded @ 102 (Note D) 3.20 636,579
--------------
1,503,862
--------------
NEBRASKA--0.53%
2,255,000 Gage Cty. IDR Bonds (Accuma Corp. Proj.) VRDN, 4.05% (LOC:
First Union National Bank) (Note C) 4.05 2,255,000
--------------
NEVADA--0.31%
1,100,000 Henderson Cty. Pub. Imp. Trust Rev. Bonds (Berry Plastics
Corp. Proj.) Ser. 1991 VRDN, 4.20%
(LOC: Nationsbank) (Note C) 4.20 1,100,000
245,000 Washoe Cty. Airport Auth. Rev. Bonds (Airport Sys. Imp.
Proj.) Ser. A, 5.15%, due 7/1/99 (Insured: MBIA) 3.20 245,786
--------------
1,345,786
--------------
NEW HAMPSHIRE--1.73%
1,415,000 Manchester Hsg. Auth. Rev. Bonds (Wall St. Tower Proj.) Ser.
B VRDN, 4.20% (LOC: PNC Bank) (Note C) 4.20 1,415,000
3,500,000 New Hampshire Business Fin. Auth. (Forty-One Northwestern
LLC Proj.) Ser. 1998 VRDN, 4.00%
(LOC: Bank of Boston) (Note C) 4.00 3,500,000
2,500,000 New Hampshire Business Fin. Auth. (Foundation for Seacoast
Health) Ser. A VRDN, 3.95%
(LOC: Fleet Bank) (Note C) 3.95 2,500,000
--------------
7,415,000
--------------
NEW JERSEY--0.20%
120,000 Ocean Cty. GO Bonds, 7.40%, due 10/15/99 3.45 122,118
</TABLE>
- --------------------------------------------------------------------------------
19
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 750,000 Transportation Corp. Rev. Bonds, Capital Grant Antic. Notes,
Ser. A, 4.63%, due 9/1/99 4.42 $ 750,417
--------------
872,535
--------------
NEW MEXICO--0.71%
1,500,000 Albuquerque IDR (CVI Laser Corp. Proj.) Ser. 1998 VRDN,
4.15% (LOC: Nationsbank) (Note C) 4.15 1,500,000
1,540,000 Albuquerque IDR (Karsten Co. of New Mexico) Ser. 1997A VRDN,
4.15% (LOC: Bank One) (Note C) 4.15 1,540,000
--------------
3,040,000
--------------
NEW YORK--1.71%
2,000,000 Battery Park City Auth. Rev. Bonds, 6.50%, due 5/1/99,
Prerefunded @ 100 (Note D) 4.36 2,000,388
250,000 Hempstead Town GO Bonds, 5.00%, due 2/15/00 (Insured: AMBAC) 3.20 253,464
400,000 New York City PHA Rev. Bonds, 3.50%, due 1/1/00 (GTY: U.S.
Government) 3.23 400,328
3,700,000 New York State Dorm. Auth. Rev. Bonds (Trust #27) VRDN,
4.10% (LOC: Bank of New York) (Note C) 4.10 3,700,000
600,000 Research & Dev. Auth. PCR Bonds (Niagara Power Corp. Proj.)
Ser. B VRDN, 4.45% (LOC: Morgan Guaranty Trust) (Note C) 4.45 600,000
375,000 Union Endicott CSD GO Bonds, 4.30%, due 6/15/99 (Insured:
MBIA) 3.20 375,502
--------------
7,329,682
--------------
NORTH CAROLINA--0.48%
1,800,000 Person Cty. PCR Bonds (Carolina Power & Light Co. Proj.)
VRDN, 4.45% (LOC: Suntrust Bank) (Note C) 4.45 1,800,000
250,000 Winston Salem GO Bonds, 6.50%, due 6/1/99 3.15 250,705
--------------
2,050,705
--------------
OHIO--3.07%
310,000 Benjamin Logan Local SD GO Bonds, 3.90%, due 12/1/99
(Insured: AMBAC) 3.20 311,240
1,800,000 Ohio Air Quality Dev. Auth. Rev. Bonds (JMG Funding) Ser. B
VRDN, 4.00% (LOC: Societe Generale) (Note C) 4.00 1,800,000
10,545,000 Ohio Hsg. Rev. Bonds, Ser. CMC2 VRDN, 4.20% (LIQ: Chase
Manhattan Bank) (Note C) 4.20 10,545,000
200,000 Ohio Pub. Fac. Commission (Higher Educ. Cap. Facs.) Ser.
IIC, 4.00%, due 6/1/99 (Insured: FSA) 3.20 200,134
300,000 Ohio Solid Waste Rev. Bonds (BP Exploration & Oil Proj.)
VRDN, 4.30% (Note C) 4.30 300,000
--------------
13,156,374
--------------
OKLAHOMA--4.41%
100,000 Tulsa Cty. Health Care Rev. Bonds (Laureate Psychiatric
Clinic) 4.60%, due 12/15/99 4.00 100,361
4,315,000 Tulsa Parking Auth. Rev. Bonds (Williams Ctr. Proj.) Ser. A,
3.15%, put 5/15/99 (LOC: Nationsbank) 3.15 4,315,000
14,480,000 Water Resources Board, State Loan Prog. Rev. Bonds, Ser.
1999, 2.90%, put 9/1/99
(SBPA: Bayerische Landesbank GZ) 2.90 14,480,000
--------------
18,895,361
--------------
PENNSYLVANIA--4.90%
2,500,000 Allegheny Cty. Hosp. Dev. Auth. Rev. Bonds (Central Blood
Bank) VRDN, 4.05% (LOC: PNC Bank) (Note C) 4.05 2,500,000
1,400,000 Bethel Township IDA (Brentwood Industries Inc. Proj.) VRDN,
4.10% (LOC: Corestates Bank) (Note C) 4.10 1,400,000
4,020,000 Cambria Cty. IDA Rev. Bonds (Cambria Cogen Co. Proj.) Ser.
1998A2 VRDN, 4.00% (LOC: Bayerische Hypo-und Vereinsbank)
(Note C) 4.00 4,020,000
1,900,000 Dallastown Area SD GO Bonds, VRDN, 4.04% (LIQ: FGIC) (Note
C) 4.04 1,900,000
860,000 Montgomery Cty. Higher Educ. & Health Rev. Bonds (Bryn Mawr
Hosp. Proj.) 7.38%, due 12/1/99, Prerefunded @ 102 (Note D) 3.20 897,367
205,000 Northeastern Hosp. & Educ. Auth. Rev. Bonds (Wyo Seminary
Proj.) 4.00%, due 10/1/99 (Insured: MBIA) 3.20 205,669
300,000 Northumberland Cty. Rev. Bonds (Commonwealth Lease) 6.30%,
due 10/15/99 (Insured: MBIA) 3.20 304,159
500,000 Pennsylvania COP, Ser. A, 4.40%, due 7/1/99 (Insured: AMBAC) 3.50 500,732
2,500,000 Pennsylvania EDA Rev. Bonds (SJ Bailey & Sons, Inc. Proj.)
VRDN, 4.15%, (LOC: PNC Bank) (Note C) 4.15 2,500,000
2,000,000 Philadelphia IDR Bonds (Henry H. Ottens Mfg. Proj.) VRDN,
4.05% (LOC: First Union National Bank) (Note C) 4.05 2,000,000
500,000 Washington Cty. Auth. Lease Rev. Bond, 6.90%, due 12/15/99
(Insured: AMBAC) 3.15 511,437
4,000,000 Westmoreland Cty. IDA Rev. Bonds (Advance USA Proj.)
Ser.1999A VRDN, 4.15% (LOC: PNC Bank) (Note C) 4.15 4,000,000
250,000 York Sewer Auth. Rev. Bonds, 4.90%, due 12/1/99 (Insured:
MBIA) 3.20 252,432
--------------
20,991,796
--------------
RHODE ISLAND--0.47%
2,000,000 Rhode Island Ind. Fac. Corp. IDR (NFA Corp. Proj.) VRDN,
4.15% (LOC: Bank of Boston) (Note C) 4.15 2,000,000
--------------
SOUTH CAROLINA--6.60%
1,600,000 Berkeley Cty. IDB (Amoco Chemical Proj.) Ser. 1998 VRDN,
4.30% (Note C) 4.30 1,600,000
4,000,000 Greenville City & Cty. IDR Bonds (Stevens Aviation Tech.
Serv. Facs. Proj.) Ser. 1997 VRDN, 4.10%
(LOC: First Union National Bank) (Note C) 4.10 4,000,000
300,000 Lexington SD #001 GO Bonds (South Carolina SD Enhance Prog.)
6.30%, due 2/1/00 3.20 306,861
</TABLE>
- --------------------------------------------------------------------------------
20
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 5,000,000 South Carolina Port Auth. (ABN-AMRO Munitops #7) VRDN, 4.08%
(LIQ: ABN-AMRO Bank) 4.08 $ 5,000,000
1,000,000 South Carolina Jobs EDA (Ellcon National Inc. Proj.) VRDN,
4.10% (LOC: First Union National Bank) (Note C) 4.10 1,000,000
2,150,000 South Carolina Jobs EDA (JM Steel Corp. Proj.) Ser. 1999A
VRDN, 4.15% (LOC: PNC Bank) (Note C) 4.15 2,150,000
5,100,000 South Carolina Jobs EDA (JM Steel Corp. Proj.) Ser. 1999B
VRDN, 4.15% (LOC: PNC Bank) (Note C) 4.15 5,100,000
2,400,000 South Carolina Jobs EDA (Klockner Namasco Proj.) VRDN, 4.10%
(LOC: Bayerische Landesbank) (Note C) 4.10 2,400,000
6,700,000 South Carolina Jobs EDA (Zeuna Starker USA, Inc. Proj.)
VRDN, 4.15% (LOC: Bayerische Landesbank) (Note C) 4.15 6,700,000
--------------
28,256,861
--------------
SOUTH DAKOTA--2.01%
1,700,000 South Dakota HDA Rev. Bonds (Homeownership Mortgage Bds.)
Ser. 1997E, VRDN, 4.00%
(GIC: West Deutsche Landesbank GZ) 4.00 1,700,000
2,000,000 South Dakota HDA Rev. Bonds (Homeownership Mortgage Bds.)
Ser. 1998H, 3.20%, due 12/2/99 3.20 2,000,000
1,005,000 South Dakota HDA Rev. Bonds (Homeownership Mortgage Bds.)
Ser. 1997J, 3.40%, due 5/1/00 3.40 1,013,281
3,900,000 Watertown IDR Bonds (Supervalue Inc. Proj.) VRDN, 3.85%
(LOC: Wachovia Bank) (Note C) 3.85 3,900,000
--------------
8,613,281
--------------
TENNESSEE--2.47%
1,295,000 Clarksville Pub. Bldg. Auth. Rev. Bonds (Pooled Financing)
VRDN, 4.00% (LOC: Nationsbank) (Note C) 4.00 1,295,000
3,100,000 Franklin Cty. IDB (Franklin Ind. Inc. Proj.) VRDN, 4.05%
(LOC: Nationsbank) (Note C) 4.05 3,100,000
6,000,000 Shelby Cty. BAN Ser. 1997A, 2.80%, due 6/16/99 (LIQ:
Landesbank Hessen Theuringen) 3.10 6,000,000
200,000 Tennessee GO Bonds, Ser. A, 6.00%, due 6/1/99 3.20 200,468
--------------
10,595,468
--------------
TEXAS--7.56%
545,000 Allen ISD GO Bonds, 3.50%, due 2/15/00 (Insured: AMBAC) 3.20 546,247
200,000 Austin GO Bonds, Ser. B, 7.00%, due 9/1/99, Prerefunded @
100 (Note D) 3.20 202,501
285,000 Brazos Cty. COP, 7.25%, due 3/1/00 (Insured: FSA) 3.30 294,192
8,200,000 Brazos River Auth. (Texas Util. Elec. Co. Proj.) Ser. 1994A,
3.15%, due 5/10/99 (LOC: Canadian Imperial Bank of Commerce) 3.15 8,200,000
500,000 Corpus Christi IDR Bonds (CITGO Petroleum) VRDN, 4.30% (LOC:
Bank One) (Note C) 4.30 500,000
515,000 First Colony MUD #6, 6.70%, due 10/1/99 (Insured: MBIA) 3.20 522,382
800,000 Gulf Coast Waste Disposal Auth. Solid Waste Rev. Bonds
(Amoco Oil Proj.) Ser. 1993 VRDN, 4.30% (Note C) 4.30 800,000
500,000 Houston Airport Sys. Rev. Bonds, Ser. A, 5.25%, due 7/1/99
(Insured: FGIC) 3.25 501,644
250,000 Houston Water & Sewer Sys. Rev. Bonds, Ser. C, 5.90%, due
12/1/99 (Insured: AMBAC) 3.20 253,863
500,000 Northeast ISD GO Bonds, 7.00%, due 2/1/00 (GTY: Texas
Permanent School Fund) 3.20 513,979
210,000 North Texas Muni. Water Dist. Rev. Bonds (City of Plano
Proj.) 7.00%, due 6/1/99 (Insured: MBIA) 3.20 210,669
230,000 Pampa GO Bonds, 6.50%, due 6/1/99 (Insured: FGIC) 3.20 230,635
2,000,000 San Antonio IDA (LGC Building LLC & KLN Steel Prod. Co. Ltd.
Proj.) Ser.1998 VRDN, 4.15% (LOC: Nationsbank) (Note C) 4.15 2,000,000
2,000,000 San Marcos IDA Rev. Bonds (TB Woods Inc. Proj.) VRDN, 4.15%
(LOC: PNC Bank) (Note C) 4.15 2,000,000
1,925,000 Texas Dept. of Hsg. & Community Affairs, Ser. B, 2.85%, due
6/10/99 (Insured: FGIC; LIQ: FGIC) 2.85 1,925,000
4,900,000 Texas Veterans Hsg., Ser. 1994A-1 VRDN, 4.05% (Note C) 4.05 4,900,000
8,500,000 Texas TRAN, 4.50%, due 8/31/99 2.79 8,549,885
255,000 Woodlands Util. Dist. # 1, 5.20%, due 10/1/99 (Insured:
MBIA) 3.20 257,094
--------------
32,408,091
--------------
UTAH--0.36%
525,000 Salt Lake Cty. Rev. Bonds, 5.25%, due 10/1/99 (Insured:
MBIA) 3.25 529,291
1,000,000 Trementon City IDR (La-Z-Boy Chair Co. Proj.) Ser. 1990
VRDN, 4.40% (LOC: NBD Bank) (Note C) 4.40 1,000,000
--------------
1,529,291
--------------
VARIOUS STATES--4.67%
1,869,000 ABN-AMRO Munitops Trust Cert., Ser.1998-15, 3.25%, put
6/2/99 (LIQ: ABN-AMRO Bank) 3.25 1,869,000
3,800,000 Greystone Tax Exempt Cert., Ser. 1998-2 VRDN, 4.13% (LOC:
Credit Suisse) (Note C) 4.13 3,800,000
14,349,410 Pitney Bowes Credit Corp. Leasetops Muni Trust, Ser. 1998-2
VRDN, 4.36%, (LIQ: Pitney Bowes Credit Corp.) 4.36 14,349,410
--------------
20,018,410
--------------
VIRGINIA--5.16%
8,000,000 Chesapeake GO Bonds (Eagle Trust) Ser. 1998-4601 VRDN, 4.00%
(LIQ: Citibank) (Note C) 4.00 8,000,000
400,000 Fairfax Cty. Pub. Imp. GO Bonds, Ser. 1994A, 5.00%, due
6/1/99 3.20 400,602
800,000 King George Cty. IDA Rev. Bonds (Birchwood Power Proj.) Ser.
1997 VRDN, 4.30% (LOC: Credit Suisse) (Note C) 4.30 800,000
2,900,000 King George Cty. IDA Rev. Bonds (Garnet of VA Inc. Proj.)
VRDN, 4.05% (LOC: Morgan Guaranty) (Note C) 4.05 2,900,000
</TABLE>
- --------------------------------------------------------------------------------
21
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,700,000 Isle of Wight IDA Rev. Bonds (Smithfield Ham & Produce Co.)
VRDN, 4.10% (LOC: Nationsbank) (Note C) 4.10 $ 1,700,000
2,880,000 Richmond GO BAN, VRDN , 4.00% (SBPA: Nationsbank) (Note C) 4.00 2,880,000
5,425,000 Virginia HDA Rev. Bonds, Trust Ser. A2 VRDN, 4.10% (LIQ:
Commerzbank) (Note C) 4.10 5,425,000
--------------
22,105,602
--------------
WASHINGTON--1.65%
240,000 King Cty. Hosp. Fac. Rev. Bonds (Valley Med. Ctr.) 6.60%,
due 9/1/99 (Insured: AMBAC) 3.20 242,010
1,300,000 Olympia EDC Rev. Bonds (Spring Air Northwest Proj.) VRDN,
3.75% (LOC: US Bank) (Note C) 3.75 1,300,000
2,400,000 Washington EDA Rev. Bonds (Ace Tank Proj.) VRDN, 4.25% (LOC:
US Bank) (Note C) 4.25 2,400,000
2,250,000 Washington Hsg. Fin. Commission (Oxford Square Apts. Proj.)
Ser. A VRDN, 4.25% (LOC: US Bank) (Note C) 4.25 2,250,000
850,000 Washington Pub. Power Supply Sys. Rev. Bonds (Nuclear Proj.
#1) Ser. A, 7.50%, due 7/1/99,
Prerefunded @ 102 (Note D) 3.20 872,927
--------------
7,064,937
--------------
WEST VIRGINIA--1.75%
5,000,000 Grant Cty. IDA Rev. Bonds (Virginia Elec. Co. Proj.) 2.90%,
due 6/9/99 2.90 5,000,000
2,500,000 West Virginia GO Bonds, Ser. 1998C VRDN, 4.20% (LIQ: Bank of
Boston) (Note C) 4.20 2,500,000
--------------
7,500,000
--------------
WISCONSIN--1.54%
6,110,000 Oshkosh Water Rev. BAN, Ser. C, 4.88%, due 1/1/00 4.53 6,110,000
500,000 Wisconsin Clean Water Rev. Bonds, 4.00%, due 6/1/99 3.20 500,331
--------------
6,610,331
--------------
TOTAL MUNICIPAL OBLIGATIONS--100.05% 428,661,203
OTHER ASSETS AND LIABILITIES, NET--(0.05%) (210,213)
--------------
NET ASSETS--100.0% $ 428,450,990
--------------
--------------
</TABLE>
PLEASE SEE ACCOMPANYING NOTES TO THE SCHEDULES OF INVESTMENTS AND
FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
22
<PAGE>
- -------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUNDS
NOTES TO SCHEDULES OF INVESTMENTS
April 30, 1999 (Unaudited)
(A) Variable rate securities. The rates shown are the current rates on
April 30, 1999. Dates shown represent the next interest reset date.
(B) These obligations were acquired for investment, not with intent to
distribute or sell. They are restricted as to public resale. These
obligations were acquired at a cost of par. On April 30, 1999, the
aggregate value of these securities, valued at amortized cost, is
$294,840,000, representing 7.1% of net assets.
(C) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market rates.
(D) Bonds that are prerefunded or escrowed to maturity are collateralized by
U.S. Government securities which are held in escrow and are used to pay
principal and interest on the municipal issue and to retire the bonds in
full at the earliest refunding date.
- -------------------------------------------------------------------------------
DESCRIPTION OF ABBREVIATIONS
AMBAC American Municipal Bond Assurance Corporation
BAN Bond Anticipation Note
COP Certificates of Participation
CSD Central School District
DFA Developmental Finance Authority
EDA Economic Development Authority
EDC Economic Development Corporation
EDR Economic Development Revenue
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Inc.
GIC Guaranteed Investment Contract
GNMA General National Mortgage Association
GO General Obligation
GTY Guarantee
HDA Housing Development Authority
HFA Housing Finance Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bond
ISD Independent School District
LINE Line of Credit
LIQ Liquidity Agreement
LLC Limited Liability Corporation
LOC Letter of Credit
LP Limited Partnership
MBIA Municipal Bond Investors Assurance Insurance Corporation
MFH Multi-Family Housing
MUD Municipal Utility District
PCR Pollution Control Revenue Bond
PHA Public Housing Authority
SBPA Standby Bond Purchase Agreement
SD School District
SFM Single Family Mortgage
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
VRN Variable Rate Notes
- -------------------------------------------------------------------------------
This Report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.
- -------------------------------------------------------------------------------
23
<PAGE>
- -------------------------------------------------------------------------------
[WATERHOUSE LOGO]
WHERE INVESTORS WHO EXPECT VALUE FEEL RIGHT AT HOME
Over 160 Branches Nationwide
National Headquarters: 100 Wall Street, New York, NY
Member NYSE o SIPC Waterhouse Securities is a subsidiary of
The Toronto-Dominion Bank whose stock is listed on the NYSE (symbol: TD).
- -------------------------------------------------------------------------------
