N-CSRS 1 dncsrs.htm COMMAND MONEY FUND COMMAND MONEY FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

 

Investment Company Act file number: 811-03253

 

 

COMMAND Money Fund

(Exact name of registrant as specified in charter)

 

 

 

Gateway Center 3

100 Mulberry Street

Newark, New Jersey

   07102
(Address of principal executive offices)   (Zip code)

 

 

Jonathan D. Shain

Gateway Center 3

100 Mulberry Street

Newark, New Jersey 07102

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 973-802-6469

 

 

Date of fiscal year end: June 30, 2004

 

 

Date of reporting period: December 31, 2003

 

Item 1—Reports to Stockholders

 

[SHAREHOLDER REPORT TO BE INSERTED HERE IN THE EDGAR VERSION]

 

 

 

SEMIANNUAL REPORT

DECEMBER 31, 2003

 

 

COMMAND MONEY FUND

COMMAND GOVERNMENT FUND

COMMAND TAX-FREE FUND

 

FUND TYPE

Money market

 

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Funds’ portfolio holdings are for the period covered by this report and are subject to change thereafter.

 

Your Fund’s Performance

 

 

Fund Objectives

COMMAND Money Fund and COMMAND Government Fund seek high current income, preservation of capital, and maintenance of liquidity. There can be no assurance that the Funds will achieve their respective investment objectives.

 

COMMAND Tax-Free Fund seeks high current income that is exempt from federal income taxes, consistent with the maintenance of liquidity and preservation of capital. There can be no assurance that the Fund will achieve its investment objective.

 

Fund Facts as of 12/31/03                     
     7-Day
Current Yield		     Net Asset
Value (NAV)		    Weighted Avg.
Maturity (WAM)		    Net Assets
(Millions)

COMMAND Money Fund

    0.51 %   $ 1.00    47 Days    $ 7,781

iMoneyNet, Inc.
Taxable Prime Retail Avg.1

    0.39 %     N/A    58 Days      N/A

COMMAND Government Fund

    0.45 %   $ 1.00    23 Days    $ 604

iMoneyNet, Inc.
Government & Agency Retail Avg.2

    0.38 %     N/A    53 Days      N/A

COMMAND Tax-Free Fund

    0.63 %   $ 1.00    79 Days    $ 1,559

iMoneyNet, Inc.
Tax-Free National Retail Avg.3

    0.52 %     N/A    46 Days      N/A

 

Note: Yields will fluctuate from time to time, and past performance is not indicative of future results. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.

 

1 iMoneyNet, Inc. regularly reports a 7-day current yield and WAM on Tuesdays for taxable retail money funds. For purposes of this report, iMoneyNet, Inc. reported the 7-day current yield and WAM on the last Monday of the reporting period. This is the data of all funds in the iMoneyNet, Inc. Taxable Prime Retail Average category as of December 29, 2003, the closest date to the end of our reporting period.

 

2 iMoneyNet, Inc. regularly reports a 7-day current yield and WAM on Tuesdays for taxable government money funds. For purposes of this report, iMoneyNet, Inc. reported the 7-day current yield and WAM on the last Monday of the reporting period. This is the data of all funds in the iMoneyNet, Inc. Government & Agency Retail Average category as of December 29, 2003, the closest date to the end of our reporting period.

 

3 iMoneyNet, Inc. reports a 7-day current yield and WAM on Mondays for tax-free money funds. This is the data of all funds in the iMoneyNet, Inc Tax-Free National Retail Average category as of December 29, 2003, the closest date to the end of our reporting period.

 

 

COMMAND Money Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited)

 

Principal
Amount
(000)		      Description    Value (Note 1)
               

Certificates of Deposit - Canadian    3.2%

      

Canadian Imperial Bank of Commerce,

       
$200,000     

1.09%, 1/8/04

    $ 200,000,000
      

Toronto Dominion Bank,

       
50,000     

1.25%, 3/17/04

      50,000,000
           
              250,000,000

Certificates of Deposit - Yankee    17.2%

      

American Express Centurion Bank,

       
60,000     

1.09%, 1/26/04

      60,000,000
      

First Tennessee Bank

       
65,000     

1.08%, 2/10/04

      64,999,272
      

HBOS Treasury Services PLC,

       
150,000     

1.105%, 3/23/04

      150,001,704
      

KBC Bank NV

       
200,000     

1.09%, 2/23/04

      199,998,530
      

Landesbank Hessen-Thuringren,

       
150,000     

1.08%, 1/5/04

      149,999,549
      

Royal Bank Scotland PLC,

       
48,000     

1.35%, 4/19/04

      48,000,000
      

Societe Generale,

       
150,000     

1.33%, 3/31/04

      150,000,000
75,000     

1.16%, 4/12/04

      74,998,951
      

UBS AG,

       
75,000     

1.245%, 3/17/04

      74,999,218
      

Wells Fargo Bank NA,

       
116,000     

1.08%, 1/12/04

      115,999,823
250,000     

1.05%, 1/30/04

      249,998,994
           
              1,338,996,041

Commercial Paper    54.7%

      

Aegon Funding Corp.,

       
88,000     

1.10%, 1/7/04

      87,983,867
43,847     

1.095%, 1/8/04

      43,837,664
38,421     

1.10%, 1/13/04

      38,406,912
36,579     

1.10%, 1/14/04

      36,564,470
      

Alianz Finance Corp.,

       
3,390     

1.06%, 3/9/04

      3,383,212
100,000     

1.09%, 3/17/04

      99,769,889

 

See Notes to Financial Statements

 

COMMAND FUNDS   1

 

COMMAND Money Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Principal
Amount
(000) 		      Description    Value (Note 1)
                 
        

Alliance & Leicester,

       
$ 30,000     

1.09%, 3/16/04

    $ 29,931,875
  34,000     

1.09%, 3/19/04

      33,919,703
        

Amsterdam Funding Corp.,

       
  56,310     

1.09%, 1/15/04

      56,286,131
  25,000     

1.09%, 1/16/04

      24,988,646
  20,356     

1.10%, 1/20/04

      20,344,182
  17,675     

1.09%, 1/22/04

      17,663,761
  4,501     

1.09%, 1/26/04

      4,497,593
  50,000     

1.09%, 2/12/04

      49,936,417
        

Bradford & Bingley PLC,

       
  50,000     

1.09%, 2/10/04

      49,939,445
        

Caisse Nationale Des Caisses D’Espar,

       
  48,500     

1.09%, 3/12/04

      48,395,738
        

Citigroup Global Markets Holdings,

       
  200,000     

1.09%, 1/7/04

      199,963,667
  155,000     

1.085%, 3/25/04

      154,607,594
        

Den Norske Bank ASA,

       
  44,000     

1.09%, 2/13/04

      43,942,715
        

Edison Asset Securitization LLC,

       
  100,000     

1.09%, 2/13/04

      99,869,806
  150,000     

1.09%, 2/23/04

      149,759,292
        

Falcon Asset Securitization Corp.,

       
  130,000     

1.09%, 1/15/04

      129,944,894
  139,000     

1.09%, 1/28/04

      138,886,368
        

GE Capital International Funding, Inc.,

       
  30,000     

1.10%, 1/28/04

      29,975,250
  65,606     

1.09%, 3/19/04

      65,451,060
        

HBOS Treasury Services PLC,

       
  90,000     

1.09%, 3/22/04

      89,779,275
        

HSH Norbank AG,

       
  37,154     

1.10%, 1/14/04

      37,139,242
        

Independence Funding LLC,

       
  34,614     

1.095%, 1/20/04

      34,593,996
        

Morgan Stanley,

       
  250,000     

1.09%, 1/26/04

      249,810,764
        

Natexis Banques Populaires

       
  150,000     

1.09%, 3/11/04

      149,682,083
        

Nationwide Building Society

       
  40,533     

1.09%, 3/8/04

      40,450,774

 

See Notes to Financial Statements

 

2   Visit our website at www.jennisondryden.com

 

 

 

Principal
Amount
(000)		      Description    Value (Note 1)
                 
        

New Center Asset Trust,

       
$ 42,000     

1.10%, 2/25/04

    $ 41,929,417
        

Norddeutsche Landesbank Luxembourg,

       
  150,000     

1.09%, 1/12/04

      149,950,042
  37,000     

1.09%, 1/16/04

      36,983,196
  150,000     

1.09%, 2/17/04

      149,786,541
  40,000     

1.06%, 2/19/04

      39,942,289
        

Nordea North America, Inc.,

       
  220,000     

1.09%, 1/13/04

      219,920,067
        

PB Finance Delaware, Inc.,

       
  100,000     

1.13%, 1/12/04

      99,965,472
  920     

1.14%, 2/10/04

      918,835
        

Preferred Receivables Funding Corp.,

       
  43,000     

1.09%, 1/26/04

      42,967,451
        

Prudential PLC,

       
  150,000     

1.09%, 2/3/04

      149,850,125
        

San Paolo U.S. Finance Co.,

       
  49,500     

1.09%, 3/11/04

      49,395,088
        

Schlumberger Technology Corp.,

       
  32,712     

1.10%, 3/1/04

      32,652,028
  61,000     

1.11%, 3/1/04

      60,887,150
  50,000     

1.09%, 3/8/04

      49,898,569
        

Sheffield Receivables Corp.,

       
  62,640     

1.11%, 1/7/04

      62,628,412
  105,000     

1.10%, 1/8/04

      104,977,542
  114,060     

1.11%, 1/8/04

      114,035,383
  150,000     

1.09%, 1/12/04

      149,950,041
        

Toronto Dominion Bank,

       
  70,000     

1.06%, 2/13/04

      69,913,433
        

Tulip Funding Corp.,

       
  179,604     

1.09%, 1/12/04

      179,544,182
  12,012     

1.10%, 1/20/04

      12,005,026
        

Westpac Capital Corp.,

       
  135,000     

1.12%, 5/27/04

      134,385,356
        

Windmill Funding Corp.,

       
  25,000     

1.09%, 1/22/04

      24,984,104
  16,520     

1.09%, 2/18/04

      16,495,991
             
                4,253,672,025

 

See Notes to Financial Statements

 

COMMAND FUNDS   3

 

COMMAND Money Fund

 

Portfolio of Investments

 

As of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		   Principal
Amount
(000)		      Description    Value (Note 1)
                   

Municipal Bonds    4.2%

       
          

Alabama Hsg. Fin. Auth. Rev., Huntsville Village,

       
A-1+(d)   $11,275     

1.15%, 1/7/04(a)

    $ 11,275,000
A-1+(d)         

Burke Cnty. Georgia Dev. Auth. Rev., Oglethorpe Power Corp.,

       
    15,185     

1.31%, 1/2/04(a)

      15,185,000
VMIG1         

California Hsg. Fin. Agcy. Rev., Ser J,

       
    11,200     

0.83%, 1/5/04(a)

      11,200,000
          

California St. Cmntys, Dev. Auth. Rev., Case Univ. Proj.,

       
VMIG1   9,000     

1.27%, 1/2/04(a)

      9,000,000
          

California St. G.O.,

       
A-1+(d)   15,300     

1.35%, 1/2/04(a)

      15,300,000
          

Delaware St. Econ. Dev. Auth. Rev., Ser A,

       
P-1   17,600     

1.33%, 1/2/04(a)

      17,600,000
          

Douglas Cnty. Colorado Dev. Rev., Lincolnpointe Lofts Proj.,

       
A-1(d)   9,585     

1.27%, 1/2/04(a)

      9,585,000
          

Gulf Coast Texas Indl. Auth. Rev., Amoco Oil Co. Proj.,

       
VMIG1   10,600     

1.34%, 1/2/04(a)

      10,600,000
          

Hapeville Georgia Dev. Auth. Rev., Hotel Ltd.,

       
P-1   14,700     

1.04%, 1/2/04(a)

      14,700,000
          

Harris Cnty. Texas Hlth. Facs. Rev.,
St. Lukes Episcopal Hosp.,

       
A-1+(d)   59,700     

1.39%, 1/2/04(a)

      59,700,000
          

Irvine California Assmt. Dist. No. 93 Rev.,

       
VMIG1   18,559     

1.04%, 1/2/04(a)

      18,559,000
          

King George Cnty. Virginia Indl. Auth. Rev.,
Birchwood Pwr. Proj.,

       
A-1+(d)   8,000     

1.32%, 1/2/04(a)

      8,000,000
          

Louisville & Jefferson Cnty. Kentucky Arpt. Facs. Rev.,

       
A-1+(d)   25,000     

1.04%, 1/2/04(a)

      25,000,000
          

Multinomah Cnty. Oregon Hosp. Auth. Rev., Holladay Park Plaza Proj.,

       
VMIG1   17,200     

1.03%, 1/2/04(a)

      17,200,000
          

New York City Trans. Fin. Auth.

       
VMIG1   16,675     

1.28%, 1/2/04(a)

      16,675,000
          

North Slope Boro Alaska Indl. Rev.,
B.P. Exploration Alaska Proj.,

       
VMIG1   30,000     

1.07%, 1/2/04(a)

      30,000,000
          

Putnam Cnty. Georgia Dev Pwr., Georgia Pwr. Co. Proj.,

       
A-1(d)   12,625     

1.31%, 1/2/04(a)

      12,625,000
          

Rhode Island Elite & Ed. Care, Care New England Proj.,

       
A-1(d)   27,700     

1.05%, 1/2/04(a)

      27,700,000
               
                  329,904,000

 

See Notes to Financial Statements

 

4   Visit our website at www.jennisondryden.com

 

 

Principal
Amount
(000)		      Description    Value (Note 1)
               

Other Corporate Obligations    9.4%

      

American Express Credit Corp., MTN,

       
$90,000     

1.20%, 1/4/05(a)

    $ 90,000,000
      

Bank America Corp., MTN,

       
27,980     

5.75%, 3/1/04

      28,183,960
      

General Electric Capital Assurance Corp.

       
100,000     

1.23%, 7/22/04(a)(b)

       
      

(cost $100,000,000; purchased 7/17/03)

      100,000,000
      

Goldman Sachs Group, Inc., MTN,

       
59,000     

1.31%, 1/11/05(a)(b)

       
      

(cost $59,000,000; purchased 06/23/00)

      59,000,000
      

Merrill Lynch & Co., Inc., MTN,

       
100,000     

1.30%, 1/10/05(a)

      100,000,000
      

Metropolitan Life Insurance Co.,

       
58,000     

1.24%, 2/9/04(a)(b)

       
      

(cost $58,000,000; purchased 2/07/03)

      58,000,000
107,000     

1.26%, 10/4/04(a)(b)

       
      

(cost $107,000,000; purchased 10/03/02)

      107,000,000
      

Morgan Stanley, MTN,

       
47,000     

1.28%, 1/15/05(a)

      47,000,000
      

Pacific Life Insurance Co.

       
67,000     

1.29%, 10/15/04(a)(b)

       
      

(cost $67,000,000; purchased 9/9/02)

      67,000,000
      

Travelers Insurance Co.,

       
51,000     

1.23%, 7/8/04(a)(b)

       
      

(cost $51,000,000; purchased 2/25/03)

      51,000,000
25,000     

1.27%, 2/25/04(a)(b)

       
      

(cost $25,000,000; purchased 2/25/03)

      25,000,000
           
              732,183,960

U.S. Government Agency & Instrumentality Obligations    12.7%

      

Federal Home Loan Bank,

       
229,500     

4.88%, 4/16/04(a)

      231,868,584
225,000     

1.23%, 7/6/04(a)

      225,000,000
      

Federal National Mortgage Association,

       
100,000     

1.13%, 2/11/04

      99,871,306
200,000     

1.12%, 2/18/04

      199,701,333
50,000     

3.63%, 4/15/04(a)

      50,337,106
180,000     

1.11%, 6/23/04

      179,034,300
           
              985,812,629

 

See Notes to Financial Statements

 

COMMAND FUNDS   5

 

COMMAND Money Fund

 

Portfolio of Investments

 

As of December 31, 2003 (Unaudited) Cont’d.

 

Principal
Amount
(000)		      Description   
Value (Note 1)		  
                 
                 
      

Total Investments    101.4%
(amortized cost $7,890,568,655(c))

      7,890,568,655  
      

Liabilities in excess of other assets    (1.4%)

      (109,871,728 )
           
      

Net Assets    100%

    $ 7,780,696,927  
           

The following abbreviations are used in the portfolio descriptions:

MTN—Medium Term Note.

G.O.—General Obligation

(a) Variable rate instrument. The maturity date presented for these instruments is the next date on which the rate of interest is adjusted or the date on which the security can be redeemed at par.
(b) Indicates illiquid securities restricted as to resale. The aggregate cost of such securities was $467,000,000. The aggregate value of $467,000,000 is approximately 6.00% of net assets.
(c) The cost for federal income tax purposes is substantially the same as for financial reporting purposes.
(d) Standard & Poor’s rating.

 

See Notes to Financial Statements

 

6   Visit our website at www.jennisondryden.com

 

COMMAND Money Fund

 

Statement of Assets and Liabilities

 

as of December 31, 2003 (Unaudited)

 

Assets

       

Investments, at amortized cost which approximates market value

    $ 7,890,568,655

Receivable for Fund shares sold

      39,583,511

Receivable for investments sold

      22,050,723

Interest receivable

      9,350,150

Prepaid expenses

      201,474
    

Total assets

      7,961,754,513
    

Liabilities

       

Payable for Fund shares reacquired

      105,586,839

Payable for investments purchased

      69,913,433

Management fee payable

      2,785,675

Accrued expenses and other liabilities

      1,536,769

Distribution fee payable

      957,072

Payable to custodian

      172,429

Dividends payable

      105,369
    

Total liabilities

      181,057,586
    

Net Assets

    $ 7,780,696,927
    
        

Net assets were comprised of:

       

Shares of beneficial interest, at $.01 par value

    $ 77,806,969

Paid-in capital in excess of par

      7,702,889,958
    

Net Assets, December 31, 2003

    $ 7,780,696,927
    

Net asset value, offering price and redemption price per share
$7,780,696,927 ÷ 7,780,696,927 shares of beneficial interest
issued and outstanding

      $1.00
    

 

See Notes to Financial Statements

 

COMMAND FUNDS   7

 

COMMAND Money Fund

 

Statement of Operations

 

Six Months Ended December 31, 2003 (Unaudited)

 

Net Investment Income

       

Income

       

Interest and discount earned

    $ 65,103,291
    

Expenses

       

Management fee

      20,339,493

Distribution fee

      7,039,670

Transfer agent’s fees and expenses

      2,574,000

Custodian’s fees and expenses

      360,000

Reports to shareholders

      299,000

Registration fees

      102,000

Trustees’ fees

      45,000

Legal fees and expenses

      28,000

Audit fee

      19,000

Miscellaneous

      91,056
    

Total expenses

      30,897,219
    

Net investment income

      34,206,072
    

Realized Gain On Investments

       

Net realized gain on investment transactions

      2,516,558
    

Net Increase In Net Assets Resulting From Operations

    $ 36,722,630
    

 

See Notes to Financial Statements

 

8   Visit our website at www.jennisondryden.com

 

COMMAND Money Fund

 

Statement of Changes in Net Assets (Unaudited)

 

     Six Months
Ended
December 31, 2003		        Year
Ended
June 30, 2002		  

Increase (Decrease) In Net Assets

                    
  

Operations

                    

Net investment income

    $ 34,206,072        $ 149,523,930  

Net realized gain on investment transactions

      2,516,558          99,798  
    
    

Net increase in net assets resulting from operations

      36,722,630          149,623,728  
    
    

Dividends and distributions to shareholders (Note 1)

      (36,722,630 )        (149,623,728 )
    
    

Fund share transactions (at $1 per share)

                    

Proceeds from shares sold

      18,840,553,618          51,648,569,116  

Net asset value of shares issued in reinvestment of dividends and distributions

      35,196,542          143,017,554  

Cost of shares reacquired

      (22,898,656,852 )        (54,770,474,062 )
    
    

Net decrease in net assets from Fund share transactions

      (4,022,906,692 )        (2,978,887,392 )
    
    

Total decrease

      (4,022,906,692 )        (2,978,887,392 )

Net Assets

                    
  

Beginning of period

      11,803,603,619          14,782,491,011  
    
    

End of period

    $ 7,780,696,927        $ 11,803,603,619  
    
    

 

See Notes to Financial Statements

 

COMMAND FUNDS   9

 

COMMAND Money Fund

Financial Highlights (Unaudited)

 

 

     Six Months Ended
December 31, 2003		  
  

Per Share Operating Performance:

         

Net asset value, beginning of period

    $ 1.000  
    

Net investment income and net realized gains

      0.003  

Dividends and distributions to shareholders

      (0.003 )
    

Net asset value, end of period

    $ 1.000  
    

Total Return(a):

      0.34 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 7,780,697  

Average net assets (000)

    $ 11,202,258  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees

      .55 %(b)

Expenses, excluding distribution and service (12b-1) fees

      .42 %(b)

Net investment income

      .65 %(b)
(a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for periods of less than one full year are not annualized.
(b) Annualized.

 

See Notes to Financial Statements

 

10   Visit our website at www.jennisondryden.com

Year Ended June 30,  
2003     2002     2001     2000     1999  
  
                                     
$ 1.000     $ 1.000     $ 1.000     $ 1.000     $ 1.000  
 
 
 
 
  0.010       0.022       0.055       0.053       0.048  
  (0.010 )     (0.022 )     (0.055 )     (0.053 )     (0.048 )
 
 
 
 
$ 1.000     $ 1.000     $ 1.000     $ 1.000     $ 1.000  
 
 
 
 
  1.06 %     2.23 %     5.72 %     5.42 %     4.85 %
                                     
$ 11,803,604     $ 14,782,491     $ 16,407,586     $ 13,489,038     $ 12,246,946  
$ 14,167,966     $ 16,400,541     $ 15,543,950     $ 13,178,334     $ 11,965,069  
                                     
  .54 %     .53 %     .53 %     .53 %     .54 %
  .41 %     .41 %     .41 %     .41 %     .41 %
  1.06 %     2.19 %     5.50 %     5.32 %     4.73 %

 

See Notes to Financial Statements

 

 

COMMAND FUNDS   11

 

COMMAND Government Fund

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Principal
Amount
(000)		      Description    Value (Note 1)
               

U.S. GOVERNMENT AGENCIES    45.4%

       

Federal Home Loan Bank    25.2%

       
$1,285     

5.375%, 1/5/04

    $ 1,285,570
57,000     

1.01%, 1/14/04(a)

      56,986,486
50,000     

1.037%, 1/25/04(a)

      49,989,187
2,400     

5.25%, 2/13/04

      2,411,409
500     

5.435%, 2/23/04

      503,024
30,000     

1.05%, 4/7/04(a)

      29,996,194
10,000     

4.875%, 4/16/04(d)

      10,103,853
1,000     

3.63%, 4/26/04

      1,007,013
           
              152,282,736
           

Federal Home Loan Mortgage Corporation    3.4%

       
5,000     

3.25%, 1/15/04

      5,003,965
4,000     

3.40%, 2/20/04

      4,011,991
4,271     

5.00%, 5/15/04

      4,330,104
7,000     

1.66%, 12/30/04

      7,000,659
           
              20,346,719
           

Federal National Mortgage Association    16.1%

       
50,000     

1.09%, 1/18/04(a)

      49,991,471
1,500     

1.01%, 1/22/04(a)

      1,499,955
9,540     

5.125%, 2/13/04

      9,584,151
5,000     

1.14%, 2/18/04

      4,992,400
7,000     

1.002%, 3/10/04(a)

      6,998,659
9,030     

4.75%, 3/15/04

      9,095,209
15,000     

1.47%, 9/22/04

      15,000,000
           
              97,161,845
           

Student Loan Marketing Association    0.7%

       
4,500     

1.416%, 1/13/04(a)

      4,505,802
           
      

Total U.S. government agencies
(amortized cost $274,297,102)

      274,297,102
           

REPURCHASE AGREEMENTS(b)    58.7%

       
40,000     

Bank of America Securities LLC,
1.05%, dated 12/26/03, due 1/2/04 in the amount of $40,008,167 (cost $40,000,000; the value of the collateral including accrued interest was $40,800,000)

      40,000,000
40,000     

Bear, Stearns & Co., Inc.
1.04%, dated 12/26/03, due 1/2/04 in the amount of $40,008,089 (cost $40,000,000; the value of the collateral including accrued interest was $40,800,677)

      40,000,000

 

See Notes to Financial Statements

 

12   Visit our website at www.jennisondryden.com

 

 

Principal
Amount
(000)		      Description    Value (Note 1)  
                   
$ 9,450     

Bear, Stearns & Co., Inc.
1.02% dated 12/31/03, due 1/5/04, in the amount of $9,451,339 (cost $9,450,000; the value of the collateral including accrued interest of $9,639,160)

    $ 9,450,000  
  14,750     

Bear, Stearns & Co., Inc.
1.06%, dated 12/9/03, due 1/8/04 in the amount of $14,763,029 (cost $14,750,000; the value of the collateral including accrued interest was $15,045,249)

      14,750,000  
  26,333     

Goldman Sachs & Co.,
1.05%, dated 12/26/03, due 1/2/04 in the amount of $26,338,376 (cost $26,333,000; the value of the collateral including accrued interest was $26,859,660)

      26,333,000  
  37,850     

Goldman Sachs & Co.,
1.05%, dated 12/31/03, due 1/7/04 in the amount of $37,857,728 (cost $37,850,000; the value of the collateral including accrued interest was $38,607,000)

      37,850,000  
  54,580     

Greenwich Capital Markets, Inc.
1.05%, dated 12/30/03, due 1/6/04 in the amount of $54,591,143 (cost $54,580,000 the value of the collateral including accrued interest was $55,672,441)

      54,580,000  
  9,640     

Greenwich Capital Markets, Inc.
1.03%, dated 12/31/03, due 1/7/04 in the amount of $9,641,931 (cost $9,640,000 the value of the collateral including accrued interest was $9,834,923)

      9,640,000  
  62,000     

Merrill Lynch, Pierce, Fenner & Smith, Inc.
1.05%, dated 12/04/03, due 1/5/04 in the amount of $62,056,058 (cost $62,000,000; the value of the collateral including accrued interest was $63,244,714)

      62,000,000  
  59,404     

UBS Warburg LLC,
1.00%, dated 12/31/03, due 1/5/04 in the amount of $59,412,251 (cost $59,404,000; the value of the collateral including accrued interest was $60,592,785)

      59,404,000  
             
        

Total repurchase agreements
(amortized cost $354,007,000)

      354,007,000  
             
        

Total Investments    104.1%
(amortized cost $628,304,102)(c)

      628,304,102  
        

Liabilities in excess of other assets    (4.1%)

      (24,585,680 )
             
        

Net Assets    100%

    $ 603,718,422  
             
(a) Variable rate instrument. The maturity date presented for these instruments is the next date on which the rate of interest is adjusted or the date on which the security can be redeemed at par.
(b) Repurchase agreements are collateralized by United States Treasury or federal agency obligations.
(c) The cost for federal income tax purposes is substantially the same as for financial reporting purposes.
(d) Represents a when-issued security

 

See Notes to Financial Statements

 

COMMAND FUNDS   13

 

COMMAND Government Fund

 

Statement of Assets and Liabilities

 

as of December 31, 2003 (Unaudited)

 

Assets

       

Investments, excluding repurchase agreements, at amortized cost which
approximates market value

    $ 274,297,102

Repurchase agreements, at amortized cost which approximates market value

      354,007,000

Receivable for Fund shares sold

      3,824,613

Interest receivable

      1,121,222

Prepaid expenses

      16,948
    

Total assets

      633,266,885
    

Liabilities

       

Payable for Fund shares reacquired

      29,046,287

Management fee payable

      249,454

Accrued expenses and other liabilities

      162,077

Distribution fee payable

      77,954

Payable to custodian

      7,289

Dividends payable

      5,402
    

Total liabilities

      29,548,463
    

Net Assets

    $ 603,718,422
    
        

Net assets were comprised of:

       

Shares of beneficial interest, at $.01 par value

    $ 6,037,184

Paid-in capital in excess of par

      597,681,238
    

Net Assets, December 31, 2003

    $ 603,718,422
    

Net asset value, offering price and redemption price per share
$603,718,422 ÷ 603,718,422 shares of beneficial interest
issued and outstanding

      $1.00
    

 

See Notes to Financial Statements

 

14   Visit our website at www.jennisondryden.com

 

COMMAND Government Fund

 

Statement of Operations

 

Six Months Ended December 31, 2003 (Unaudited)

 

Net Investment Income

       

Income

       

Interest and discount earned

    $ 5,130,193
    

Expenses

       

Management fee

      1,854,642

Distribution fee

      579,576

Registration fees

      178,000

Transfer agent’s fees and expenses

      85,000

Custodian’s fees and expenses

      54,000

Reports to shareholders

      25,000

Legal fees and expenses

      18,000

Trustees’ fees

      14,000

Audit fee

      13,000

Miscellaneous

      11,419
    

Total expenses

      2,832,637
    

Net investment income

      2,297,556
    

Realized Gain On Investments

       

Net realized gain on investment transactions

      14,389
    

Net Increase In Net Assets Resulting From Operations

    $ 2,311,945
    

 

See Notes to Financial Statements

 

COMMAND FUNDS   15

 

COMMAND Government Fund

 

Statement of Changes in Net Assets (Unaudited)

 

    

Six Months

Ended

December 31, 2003

       

Year

Ended

June 30, 2003

  

Increase In Net Assets

 

           
  

Operations

                    

Net investment income

    $ 2,297,556        $ 10,084,812  

Net realized gain on investment transactions

      14,389          12,133  
    
    

Net increase in net assets resulting from operations

      2,311,945          10,096,945  
    
    

Dividends and distributions to shareholders (Note 1)

      (2,311,945 )        (10,096,945 )
    
    

Fund share transactions (at $1 per share)

                    

Proceeds from shares sold

      1,837,023,322          4,975,047,494  

Net asset value of shares issued in reinvestment of dividends and distributions

      2,241,128          9,929,182  

Cost of shares reacquired

      (2,252,855,445 )        (4,876,025,207 )
    
    

Net increase (decrease) in net assets from Fund share transactions

      (413,590,995 )        108,951,469  
    
    

Total increase (decrease)

      (413,590,995 )        108,951,469  

Net Assets

                    
  

Beginning of period

      1,017,309,417          908,357,948  
    
    

End of period

    $ 603,718,422        $ 1,017,309,417  
    
    

 

See Notes to Financial Statements

 

16   Visit our website at www.jennisondryden.com

 

Financial Highlights

 

DECEMBER 31, 2003   SEMI-ANNUAL REPORT

 

COMMAND Government Fund

 

COMMAND Government Fund

 

Financial Highlights (Unaudited)

 

     Six Months Ended
December 31, 2003		  
  

Per Share Operating Performance:

         

Net asset value, beginning of period

    $ 1.000  
    

Net investment income and net realized gains

      0.003  

Dividends and distributions to shareholders

      (0.003 )
    

Net asset value, end of period

    $ 1.000  
    

Total Return(a):

      0.26 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 603,718  

Average net assets (000)

    $ 922,281  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees

      .61 %(b)

Expenses, excluding distribution and service (12b-1) fees

      .49 %(b)

Net investment income

      .50 %(b)
(a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for periods of less than one full year are not annualized.
(b) Annualized.

 

See Notes to Financial Statements

 

18   Visit our website at www.jennisondryden.com

Year Ended June 30,  
2003     2002     2001     2000     1999  
  
                                     
$ 1.000     $ 1.000     $ 1.000     $ 1.000     $ 1.000  
 
 
 
 
  0.010       0.020       0.054       0.051       0.046  
  (0.010 )     (0.020 )     (0.054 )     (0.051 )     (0.046 )
 
 
 
 
$ 1.000     $ 1.000     $ 1.000     $ 1.000     $ 1.000  
 
 
 
 
  1.04 %     2.11 %     5.52 %     5.23 %     4.74 %
                                     
$ 1,017,309     $ 908,358     $ 782,240     $ 687,364     $ 714,390  
$ 996,171     $ 916,475     $ 756,716     $ 714,655     $ 739,779  
                                     
  .59 %     .56 %     .57 %     .58 %     .56 %
  .46 %     .43 %     .45 %     .45 %     .44 %
  1.01 %     1.96 %     5.30 %     5.12 %     4.63 %

 

 

See Notes to Financial Statements

 

 

COMMAND FUNDS   19

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited)

 

Moody’s
Rating		   Principal
Amount (000)		      Description(a)      Value (Note 1)
                       
ALASKA    2.8%                
            

Roaring Fork Mun. Prods. LLC,, Hsg. Fin. Corp. Mtge., F.R.W.D.,

         
VMIG1   $ 15,985     

1.36%, 1/2/04, Ser. 02-15

      $ 15,985,000
            

Valdez Marine Terminal Rev.,

         
VMIG2     5,000     

Ser. 1994B,
1.25%, 6/1/04

        5,000,000
VMIG2     6,900     

Ser. 1994C,
1.25%, 6/1/04

        6,900,000
            

ARCO Trans Proj., A.N.N.M.T., Ser. 1994B

         
VMIG2     6,250     

2.00%, 1/2/04,

       6,250,000
            

Phillips Proj., A.N.N.M.T.,

         
VMIG2     5,000     

Ser. 1994A,
2.00%, 1/2/04

        5,000,000
VMIG2     4,500     

Ser. 1994C,
2.00%, 1/2/04

        4,500,000
                   
                      43,635,000
ARIZONA    3.7%                
            

Pima Cnty. Ind. Dev. Auth. Sngl. Fam. Mtge. Rev., A.M.T.,

         
NR     5,300     

1.13%, 1/23/04

        5,300,000
            

Draw Down Bonds., A.M.T.

         
NR     44,985     

1.12%, 1/26/04

        44,985,000
            

Roaring Fork Mun. Prods. LLC, A.M.T., Ser. 02, F.R.W.D.,

         
A-1+(e)     4,060     

1.43%, 1/2/04

        4,060,000
            

Tucson & Pima Cnty. Indl., Dev. Auth. Sngl. Fam. Mtge. Rev., A.M.T.,

         
NR     2,715     

1.14%, 1/26/04

        2,715,000
                   
                      57,060,000
CALIFORNIA    2.0%                
            

California St., Dept. Wtr. Res. Pwr. Supply, Ser. B2, F.R.D.D.,

         
VMIG1     5,600     

1.33%, 1/2/04

        5,600,000
            

California St., R.A.N., Ser. A-6,

         
VMIG1     10,000     

2.00%, 6/23/04

        10,044,046
            

California Statewide Cmntys. Dev. Auth.
Rev. Kaiser Permanente, A.N.N.M.T., Ser. A

         
VMIG2     10,000     

1.38%, 1/2/04

        10,000,000

 

See Notes to Financial Statements

 

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Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Long Beach Hbr. Rev., A.M.T., Ser. A

         
VMIG1    $ 4,000     

4.00%, 5/14/04

      $ 4,040,647
             

Los Angeles Cnty. Hsg. Auth. Mutli-Fam. Hsg. Rev., Malibu Meadows,
F.R.W.D. Ser. II-C,

         
A-1+(e)      1,600     

1.25%, 1/2/04

        1,600,000
                    
                       31,284,693
COLORADO    3.4%                
             

Adams Cnty. Hosp. Rev., Platte Valley Med. Ctr., F.R.W.D., Ser. B,

         
A-1(e)      9,310     

1.22%, 1/7/04

        9,310,000
             

Colorado Edl. & Cultural Facs. Auth. Rev., Vail Mountain Sch. Proj., F.R.W.D.

         
VMIG1      5,000     

1.35%, 1/2/04

        5,000,000
             

Colorado Hlth. Facs. Auth. Rev., Sisters Charity Hlth. Sys., A.N.N.M.T.,

         
VMIG1      16,310     

Ser. A,
1.23%, 12/1/04

        16,310,000
VMIG1      16,225     

Ser. B,
1.23%, 12/1/04

        16,225,000
             

Denver Cnty. Hsg., Circle Vlge. Proj., F.R.W.D.,

         
A-1+(e)      2,365     

1.20%, 1/7/04

        2,365,000
             

Denver Hlth. & Hosp. Auth. Healthcare Rev., F.R.D.D., Ser. A

         
VMIG1      1,500     

1.37%, 1/2/04

        1,500,000
             

Dove Valley Metro. Dist., Arapahoe Cnty., A.N.N.M.T., G.O.

         
A-1(e)      2,545     

1.20%, 11/1/04

        2,545,000
                    
                       53,255,000
CONNECTICUT    0.5%                
             

Connecticut St. Hsg. Fin. Auth., Hsg. Mtge. Fin. Prog., A.M.T., A.N.N.M.T., Ser. F2

         
VMIG1      8,000     

1.20%, 12/22/04

        8,000,000
                    
DELAWARE    0.2%                
             

Delaware St. Econ. Dev. Auth. Rev., Gas Facs. Delmarva Pwr. & Lt., A.M.T. F.R.D.D.,

         
VMIG2      3,000     

1.57%, 1/2/04

        3,000,000
                    

 

See Notes to Financial Statements

 

COMMAND FUNDS   21

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
DISTRICT OF COLUMBIA    1.0%         
             

District of Columbia Hsg. Fin. Agcy. Mtge. Rev., Sngl. Fam., A.M.T., A.N.N.M.T., F.R.M.D.

         
NR    $ 15,000     

1.14%, 1/23/04

      $ 15,000,000
                    
FLORIDA    6.3%                
             

Collier Cnty. Hlth. Facs.

         
VMIG1      10,000     

1.00%, 1/23/04

        10,000,000
             

Florida St. Mun. Secs. Trust Cert.,
F.R.D.D., G.O. Ser. 131

         
A-1(e)      2,300     

1.38%, 1/2/04

        2,300,000
             

Highlands Cnty. Hlth. Facs. Auth. Rev.,
Hosp. Adventist Hlth. Sys., F.R.W.D., Ser. C

         
VMIG2      10,000     

1.45%, 1/2/04

        10,000,000
             

Orange Cnty. Hlth. Facs. Auth. Rev., F.R.W.D., F.S.A., Ser. 171

         
A-1(e)      46,350     

1.38%, 1/2/04

        46,350,000
             

Sunshine St. Govt. Fin. Rev. Notes
A.M.B.A.C.,

         
P1      19,605     

Ser. G
1.10%, 1/12/04,

       19,605,000
             

Ser. A

         
P1      10,800     

1.08%, 1/13/04

        10,800,000
                    
                       99,055,000
GEORGIA    6.4%                
             

Crisp Cnty., Solid Waste Mgmt. Auth. Rev., A.M.T., F.R.W.D.,

         
VMIG1      4,735     

1.72%, 1/2/04

        4,735,000
             

Dalton Util. Rev., F.R.W.D., F.S.A., M.E.R.L.O.T., Ser. A2,

         
VMIG1      4,965     

1.21%, 1/7/04

        4,965,000
             

De Kalb Cnty. Hosp. Auth. Rev., Dekalb Med. Ctr. Inc. Proj., F.R.W.D., Ser. B,

         
VMIG1      11,725     

1.25%, 1/2/04

        11,725,000
             

Fulton Cnty. Dev. Auth. Rev., Westminster Sch. Dist. Proj., F.R.W.D.

         
VMIG1      9,000     

1.15%, 1/7/04

        9,000,000
             

Fulton Cnty. Residential Care Facs., Lenbrook Square, F.R.D.D.,

         
A-1(e)      13,100     

1.37%, 1/2/04

        13,100,000

 

See Notes to Financial Statements

 

22   Visit our website at www.jennisondryden.com

 

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Georgia Mun. Elec. Auth., Proj. One, Ser. 85A,

         
VMIG1    $ 34,000     

1.09%, 1/15/04

      $ 34,000,000
             

Richmond Cnty. Hosp. Auth., Univ. Hlth. Svcs., F.R.W.D., R.A.N.,

         
VMIG1      23,000     

1.15%, 1/7/04

        23,000,000
                    
                       100,525,000
HAWAII    1.4%                
             

Honolulu City & Cnty.

         
             

A.N.N.M.T., G.O., F.G.I.C.,

         
VMIG1      4,700     

1.18%, 12/2/04

        4,700,000
VMIG1      16,600     

1.18%, 12/2/04

        16,600,000
                    
                       21,300,000
ILLINOIS    9.0%                
             

Channahon Rev., Morris Hosp., F.R.W.D., Ser. B

         
A-1+(e)      5,670     

1.34%, 1/2/04

        5,670,000
             

Chicago, Stockyards Ind Proj., F.R.W.D., Ser. 96A

         
A-1+(e)      10,070     

1.23%, 1/7/04

        10,070,000
             

Chicago Park Dist., F.R.W.D., Ser. ZTC 23

         
VMIG1      10,195     

1.38%, 1/2/04

        10,195,000
             

Chicago Hsg. Auth. Cap. Prog. Rev., F.R.W.D., Ser. 576

         
A-1(e)      5,235     

1.34%, 1/2/04

        5,235,000
             

Chicago Park Dist., F.R.W.D., Ser. ZTC 46

         
VMIG1      3,360     

1.38%, 1/2/04

        3,360,000
             

Chicago Wtr. Rev., F.R.W.D., M.E.R.L.O.T., Ser. 00TT

         
VMIG1      14,385     

1.21%, 1/7/04

        14,385,000
             

Illinois Dev. Fin. Auth. Rev., Amer. Coll. Of Surgeons, F.R.W.D.,

         
A-1+(e)      13,100     

1.30%, 1/2/04

        13,100,000
             

Illinois Hlth. Facs. Auth. Rev., Resurrection Hlth., F.R.D.D., Ser. A,

         
VMIG1      8,000     

1.30%, 1/2/04

        8,000,000
             

Illinois Hlth. Facs. Auth. Rev.,

         
             

Little Co. of Mary Hosp., F.R.W.D.,

         
A-1+(e)      5,000     

1.34%, 1/2/04

        5,000,000
             

Mem. Hlth. Sys., F.R.D.D.,

         
VMIG1      3,000     

1.37%, 1/2/04

        3,000,000

 

See Notes to Financial Statements

 

COMMAND FUNDS   23

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Illinois Hsg. Dev. Auth. Rev., Homeowner Mtge., Ser. A-1

         
VMIG1    $ 5,095     

1.13%, 4/29/04

      $ 5,095,000
             

Illinois St. Sales Tax Rev.

         
             

F.R.W.D.,

         
VMIG1      9,650     

Ser. ZTC 32,

1.38%, 1/2/04

        9,650,000
VMIG1      4,950     

Ser. ZTC 45,

1.38%, 1/2/04

        4,950,000
             

Peoria Cnty. Swge. Fac. Rev., Caterpillar, Inc. Proj., A.M.T., F.R.W.D.,

         
P-1      4,300     

1.48%, 1/2/04

        4,300,000
             

Wheeling Multi-Fam. Hsg. Rev., Woodland Creek Proj., F.R.W.D.,

         
A-1+(e)      17,655     

1.30%, 1/2/04

        17,655,000
             

Woodridge Multi-Fam. Hsg. Rev., Hinsdale Lake Terrace Apts., F.R.W.D., F.S.A.,

         
AAA      20,760     

1.30%, 1/2/04

        20,760,000
                    
                       140,425,000
IOWA    0.9%                
             

Iowa Fin. Auth. Sngl. Fam. Rev., A.N.N.M.T., Ser. F,

         
VMIG1      4,000     

1.20%, 12/21/04

        4,000,000
             

Iowa Higher Ed. Ln. Auth. Rev., Morningside Coll., R.A.N., Ser. G,

         
SP-1+(e)      1,500     

2.00%, 5/24/04

        1,502,319
             

Sergeant Bluff Ind. Dev. Rev., Sioux City Brick & Tile Proj., A.M.T., F.R.W.D.,

         
NR      8,480     

1.55%, 1/2/04

        8,480,000
                    
                       13,982,319
KANSAS    0.1%                
             

Kansas St. Dev. Fin. Auth. Rev., Hays Med. Ctr., F.R.D.D, Ser. N

         
VMIG1      2,200     

1.37%, 1/2/04

        2,200,000
                    
KENTUCKY    0.6%                
             

Kentucky St. Prpty. & Bldgs. Comm. Rev., F.R.W.D., Ser. ZTC 34

         
VMIG1      9,900     

1.38%, 1/2/04

        9,900,000
                    

 

See Notes to Financial Statements

 

24   Visit our website at www.jennisondryden.com

 

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
LOUISIANA    1.5%                
             

Ascension Parish, A.M.T., Ser. 99,

         
P-1    $ 10,000     

1.10%, 2/23/04

      $ 10,000,000
             

Louisiana St. Offshore Terminal Deepwater Port. Rev. Loop Inc., Ser. A,

         
A-1(e)      8,000     

1.10%, 1/29/04

        8,000,000
             

Roaring Fork Mun. Prods. LLC, LA Hsg. Auth., A.M.T., F.R.W.D., Ser. 2,

         
VMIG1      5,860     

1.43%, 1/2/04

        5,860,000
                    
                       23,860,000
MAINE    0.9%                
             

Dover & Foxcroft Rev., Pleasant River Lumber Co. Proj., F.R.W.D.,

         
A-1(e)      2,350     

1.40%, 1/7/04

        2,350,000
             

Maine St. Hsg. Auth. Mtge., A.M.B.A.C., F.R.W.D., Ser. E-1,

         
VMIG1      8,585     

1.15%, 1/2/04

        8,585,000
             

York Rev., Stonewall Realty LLC, Proj., A.M.T., F.R.W.D.,

         
VMIG1      2,605     

1.65%, 1/2/04

        2,605,000
                    
                       13,540,000
MARYLAND    0.3%                
             

Maryland S. Cmnty. Dev. Admin., Residential, A.M.T., A.N.N.M.T., Ser E,

         
VMIG1      4,500     

1.25%, 12/21/04

        4,500,000
                    
MASSACHUSETTS    1.0%                
             

Medford, B.A.N., G.O.

         
VMIG1      15,500     

2.00%, 9/10/04

        15,590,155
                    
MICHIGAN    2.4%                
             

Michigan Job Dev. Auth. Rev., Frankenmuth Proj., F.R.M.D., Ser. A,

         
A-1(e)      6,000     

1.20%, 1/2/04

        6,000,000
             

Michigan St.

         
VMIG1      7,500     

1.15%, 11/2/04

        7,500,000
             

Michigan St. Bldg. Rev.

         
P-1      10,000     

1.05%, 2/12/04

        10,000,000

 

See Notes to Financial Statements

 

COMMAND FUNDS   25

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Michigan Strategic Fd. Ltd., Amer. Litho Proj., A.M.T., F.R.W.D.,

         
NR    $ 4,650     

1.49%, 1/2/04

      $ 4,650,000
             

Walled Lake Cons. Sch. Dist., G.O., F.R.W.D., Ser. ZTC 18,

         
VMIG1      10,000     

1.38%, 1/2/04

        10,000,000
                    
                       38,150,000
MINNESOTA    2.2%         
             

Bloomington Coml. Dev. Rev. 94th Str. Assoc. Proj., F.R.W.D.,

         
A-1+(e)      4,165     

1.30%, 1/2/04

        4,165,000
             

James Avenue Assoc. Proj., F.R.W.D.,

         
A-1+(e)      4,045     

1.30%, 1/2/04

        4,045,000
             

Bloomington Port. Auth. Tax Rev., Ref., Mall of America, F.R.W.D., F.S.A., Ser. B,

         
VMIG1      16,700     

1.30%, 1/2/04

        16,700,000
             

Chanhassen Multi-Fam. Rev., Hsg. Vlge. Ponds Proj., A.M.T., A.N.N.M.T., F.R.W.D.,

         
VMIG1      5,530     

1.48%, 1/2/04

        5,530,000
             

St. Paul Hsg. & Redev. Auth. Heating Rev., F.R.W.D., Ser. 99D,

         
A-1+(e)      3,370     

1.30%, 1/2/04

        3,370,000
                    
                       33,810,000
MISSISSIPPI    1.7%         
             

Jackson Cnty. Poll. Ctrl. Rev., Chevron U.S.A., Inc., Proj., F.R.D.D.

         
P-1      3,400     

1.30%, 1/2/04

        3,400,000
             

Roaring Fork Mun. Prods. LLC, A.M.T.,

         
VMIG1(c)      9,330     

1.35%, 2/26/04, Ser. 01-14
(cost $9,330,000; purchased 3/6/03)

        9,330,000
VMIG1(c)      5,000     

1.25%, 4/1/04, Ser. 02-4
(cost $5,000,000: purchased 6/6/03)

        5,000,000
             

Mississippi Home Corp., A.M.T., F.R.W.D., Ser. 00-18,

         
VMIG1      8,190     

1.43%, 1/2/04

        8,190,000
                    
                       25,920,000

 

See Notes to Financial Statements

 

26   Visit our website at www.jennisondryden.com

 

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
MISSOURI    1.1%         
             

Missouri St. Hlth. & Edl. Fac. Auth. Rev. Missouri Valley College, F.R.D.D.,

         
A-1+(e)    $ 2,675     

1.37%, 1/2/04

      $ 2,675,000
             

St. Louis Univ., F.R.D.D., Ser. B

         
VMIG1      3,800     

1.37%, 1/2/04

        3,800,000
             

Roaring Fork Mun. Prods. LLC, MO Hsg. Dev. Comnty., A.M.T., F.R.W.D.,
Ser. 00-3,

         
A-1(e)      10,445     

1.43%, 1/2/04

        10,445,000
                    
                       16,920,000
MONTANA    0.9%                
             

Montana Fac. Fin. Auth. Rev., Sisters Charity Hlth. Sys. A.N.N.M.T.,

         
VMIG1      14,210     

1.23%, 12/1/04

        14,210,000
                    
NEBRASKA    0.3%                
             

York Ind. Dev. Rev., Kroy Bldg. Prods., Inc. Proj., A.M.T., F.R.W.D.,

         
A-1(e)      4,500     

1.47%, 1/2/04

        4,500,000
                    
NEVADA    1.0%                
             

Clark Cnty., F.R.W.D., Ser. ZTC 27,

         
VMIG1      15,000     

1.38%, 1/2/04

        15,000,000
                    
NEW JERSEY    2.4%                
             

Hopewell Twnshp., G.O., B.A.N.,

         
NR      19,404     

2.00%, 11/19/04

        19,549,362
             

Lawrence Twnshp., G.O., B.A.N.,

         
NR      3,750     

1.375%, 7/15/04

        3,755,047
             

New Jersey Econ. Dev. Rev.

         
VMIG1      1,700     

1.10%, 1/7/04

        1,700,000
             

Sussex Cnty., G.O., B.A.N.,

         
VMIG1      12,742     

2.00%, 11/12/04

        12,834,366
                    
                       37,838,775
NEW MEXICO    0.6%                
             

Roaring Fork Mun. Prods. LLC, Mtge. Fin. Auth. SFK, A.M.T., F.R.W.D., Ser. 00-1,

         
A-1+(e)      9,970     

1.43%, 1/2/04

        9,970,000
                    

 

See Notes to Financial Statements

 

COMMAND FUNDS   27

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
NEW YORK    2.3%                
             

New York City Mun. Wtr. Auth. Rev.

         
P-1    $ 36,000     

1.05%, 1/28/04

      $ 36,000,000
                    
NORTH CAROLINA    0.5%                
             

Halifax Cnty. Ind. Facs. & Poll. Ctrl. Fin. Auth. Rev., A.M.T.,

         
NR      1,500     

1.35%, 1/2/04

        1,500,000
             

Roaring Fork Mun. Prods. LLC, Durham Co. Allstate Vlge., A.M.T., F.R.W.D.,
Ser. 01-8,

         
A-1+(e)      6,965     

1.43%, 1/2/04, Ser. 01-8

        6,965,000
                    
                       8,465,000
OHIO    2.4%                
             

Cuyahoga Cnty. Hosp. Rev., W.O. Walker Ctr. Inc., A.M.B.A.C., F.R.W.D., Ser. II,

         
A-1(e)      11,690     

1.00%, 1/7/04

        11,690,000
             

Delaware, G.O., B.A.N.,

         
NR      9,000     

1.50%, 2/10/04

        9,005,448
             

East Lake Ind. Dev. Rev., Astro Model Dev. Corp. Proj., A.M.T., F.R.W.D.,

         
NR      1,940     

1.55%, 1/2/04

        1,940,000
             

Ohio Hsg. Fin. Agcy. Multi-Fam. Hsg. Rev., 10 Wilmington Pl. Prog., F.R.W.D., Ser. B,

         
A-1+(e)      8,945     

1.30%, 1/2/04

        8,945,000
             

Univ. of Cincinnati, B.A.N., Ser. 2003A,

         
VMIG1      6,000     

1.75%, 3/18/04

        6,008,114
                    
                       37,588,562
OKLAHOMA    6.2%                
             

Canadian Cnty. Home Fin. Auth. Sngl. Fam. Mtge. Rev., A.M.T., Ser. A,

         
NR      14,440     

1.13%, 1/23/04

        14,440,000
             

Cleveland Cnty. Dev. Auth. Sngl. Fam., A.M.T.,

         
NR      7,500     

1.11%, 1/26/04

        7,500,000
             

Cleveland Cnty. Home Ln. Auth. Sngl. Fam. Mtge., A.M.T., Ser. 2003A,

         
NR      7,485     

1.13%, 1/26/04

        7,485,000

 

See Notes to Financial Statements

 

28   Visit our website at www.jennisondryden.com

 

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Oklahoma Hsg. Dev. Auth. Multi-Fam. Rev. Affordable Hsg., F.R.W.D.,

         
VMIG1    $ 33,500     

Ser. A,
1.45%, 1/2/04

      $ 33,500,000
VMIG1      10,000     

Ser. B,
1.45%, 1/2/04

        10,000,000
             

South Western Dev. Auth. Sngl. Fam. Mtge.
Rev., Ser. A,

         
AAA(e)      7,500     

1.09%, 1/9/04

        7,500,000
             

Tulsa Cnty. Ind. Auth. Cap. Impvt. Rev.,
S.E.M.M.T., Ser. A,

         
A-1+(e)      17,000     

1.125%, 5/17/04

        17,000,000
                    
                       97,425,000
OREGON    0.4%                
             

Multinomah Cnty. Higher Ed. Rev., Concordia Univ. Portland Proj., F.R.D.D.,

         
VMIG1      1,415     

1.37%, 1/2/04

        1,415,000
             

Oregon St. Hsg. & Cmnty. Svcs. Dept. Mtge. Rev., Sngl. Fam. Mtge. Proj.,
Ser. N, A.M.T.,

         
VMIG1      4,625     

1.25%, 1/16/04

        4,625,000
                    
                       6,040,000
PENNSYLVANIA    0.7%                
             

Cumberland Cnty. Mun. Auth. Coll. Rev., Dickinson Coll., A.N.N.M.T., Ser. B,

         
A-1+(e)      5,000     

1.11%, 11/1/04

        5,000,000
             

Fayette Cnty. Hosp. Auth. Sr. Hlth. & Hsg. Facs. Rev., Mount Macrina Manor Proj., F.R.W.D.

         
A-1(e)      4,345     

1.34%, 1/2/04

        4,345,000
             

Pennsylvania St. Mun. Secs. Trust Cert., F.R.D.D., G.O., Ser. 00-110,

         
A-1(e)      850     

1.38%, 1/2/04

        850,000
                    
                       10,195,000
RHODE ISLAND    0.1%                
             

Providence Hsg. Auth. Mutli-Fam. Rev., Cathedral Square, F.R.D.D., A.M.T.,
Ser. B,

         
A-1(e)      1,300     

1.40%, 1/2/04

        1,300,000
                    

 

See Notes to Financial Statements

 

COMMAND FUNDS   29

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
SOUTH CAROLINA    0.4%         
             

North Charleston, G.O., T.A.N.

         
NR    $ 6,000     

1.75%, 3/15/04

      $ 6,007,864
                    
SOUTH DAKOTA    0.5%                
             

Grant Cnty. Poll. Ctrl. Rev., Otter Tail Pwr. Co. Proj., F.R.W.D.,

         
VMIG1      8,000     

1.45%, 1/2/04

        8,000,000
                    
TENNESSEE    1.7%                
             

Chattanooga Hlth. Edl. & Hsg. Fac. Brd. Rev. Phase I, F.R.W.D., Ser. A,

         
A-1(e)      10,075     

1.25%, 1/2/04

        10,075,000
             

Clarksville Pub. Bldg. Auth., F.R.D.D.

         
VMIG1      100     

1.30%, 1/2/04

        100,000
             

Jacks on Engy. Auth. Gas Sys. Rev., F.R.W.D.,

         
VMIG1      4,200     

1.15%, 1/7/04

        4,200,000
             

Memphis Elec. Sys. Rev., Putters, M.B.I.A., A.N.N.M.T., Ser 377,

         
A-1+(e)      12,000     

1.28%, 12/9/04

        12,000,000
                    
                       26,375,000
TEXAS    17.4%                
             

ABN Amro Munitops Certs., G.O., S.E.M.M.T., Ser. 2003-22,

         
VMIG1      8,000     

1.05%, 2/25/04

        8,000,000
             

Austin Combined Util. Sys. Rev. Corp. Proj., T.E.C.P., Ser. A,

         
P-1      26,053     

1.08%, 3/10/04

        26,053,000
             

Brazos Hbr. Ind. Dev. Corp., Environ. Facs. Rev., ConocoPhillips Co. Proj., A.N.N.M.T., A.M.T.,

         
VMIG2      2,300     

1.375%, 8/1/04

        2,300,000
             

Carroll Indpt. Sch. Dist., Sch. Bldg., G.O., A.N.N.M.T.,

         
VMIG1      29,800     

1.35%, 4/1/04

        29,800,000
             

Collin Cnty. Hsg. Fin. Corp. Multi-Fam. Rev., Huntington Apts. Proj., F.R.W.D., Ser. 96,

         
A-1+(e)      6,155     

1.33%, 1/2/04

        6,155,000

 

See Notes to Financial Statements

 

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Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Desoto Ind. Dev. Auth. Rev., Solar Turbines, Inc. Proj., F.R.W.D.,

         
P-1    $ 7,050     

1.33%, 1/2/04

      $ 7,050,000
             

El Paso, G.O., T.E.C.P., Ser. A,

         
P-1      10,500     

1.10%, 2/10/04

        10,500,000
             

Harris Cnty. Hlth. Facs. Dev. Corp. Rev.,
St. Lukes Episcopal Hosp., F.R.D.D., Ser. B,

         
A-1+(e)      3,000     

1.30%, 1/2/04

        3,000,000
             

Houston Indpt. Sch. Dist., F.S.A., F.R.W.D., Ser. ZTC 21,

         
VMIG1      12,700     

1.38%, 1/2/04

        12,700,000
             

North Harris Montgomery Cmnty. Coll. Dist., A.N.N.M.T., G.O.,

         
VMIG1      14,830     

1.35%, 4/1/04

        14,830,000
             

Roaring Fork Mun. Prods. LLC, Houston Hsg., F.R.W.D., Ser. 03-3,

         
A-1+(e)      7,000     

1.38%, 1/2/04

        7,000,000
             

San Antonio Wtr. Sys. Rev.,

         
P-1      14,500     

1.05%, 1/28/04

        14,500,000
             

San Antonio Wtr. Rev., F.R.W.D., M.E.R.L.O.T., Ser. 00VV,

         
VMIG1      17,420     

1.21%, 1/7/04

        17,420,000
             

San Jacinto Coll. Dist., A.N.N.M.T., G.O.,

         
VMIG1      14,500     

1.35%, 4/1/04

        14,500,000
             

Spring Branch Indpt. Sch. Dist., F.R.W.D., Ser. ZTC28,

         
VMIG1      11,880     

1.38%, 1/2/04

        11,880,000
             

Texas Dept. Hsg. & Cmnty. A.M.T., T.E.C.P.,

         
VMIG1      57,470     

1.07%, 4/14/04

        57,470,000
VMIG1      4,000     

1.10%, 4/14/04

        3,999,401
             

Texas St. Coll. Student Loans., F.R.W.D., Ser. ZTC 5A,

         
VMIG1      8,000     

1.43%, 1/2/04

        8,000,000
             

Texas St. Pub. Fin. Auth., Ser B.,

         
P-1      6,000     

1.08%, 1/13/04

        6,000,000
P-1      9,659     

1.10%, 1/22/04

        9,659,000
                    
                       270,816,401
UTAH    3.7%                
             

Intermountain Pwr. Agcy., Ser. B-4,

         
A-1(e)      25,000     

1.08%, 1/12/04

        25,000,000

 

See Notes to Financial Statements

 

COMMAND FUNDS   31

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)
                        
             

Intermountain Pwr. Agcy., Spec. Oblig., Sixth Crossover, Ser. B-3,

         
A-1(e)    $ 32,000     

1.05%, 2/5/04

      $ 32,000,000
                    
                       57,000,000
VERMONT    1.2%                
             

Vermont Edl. & Hlth. Bldgs. Fin. Agcy. Rev. Middlebury Coll. Proj., A.N.N.M.T.,

         
A-1+(e)      9,900     

1.10%, 11/1/04, Ser. 2002B

        9,900,000
A-1+(e)      9,135     

1.10%, 11/1/04, Ser. 88A

        9,135,000
                    
                       19,035,000
VIRGINIA    1.1%                
             

Halifax Cnty. Ind. Dev. Auth. Rev., VA
Elec. & Pwr. Corp. Proj., A.M.T., Ser. 92,

         
VMIG1      15,000     

1.16%, 2/13/04

        15,000,000
             

Louisa Ind. Dev. Auth., G.O.

         
VMIG1      2,400     

1.26%, 1/14/04

        2,400,000
                    
                       17,400,000
WASHINGTON    2.1%                
             

Port of Pasco Econ. Dev. Corp., Douglas Fruit Co., Inc., A.M.T., F.R.W.D.,

         
A-1+(e)      3,935     

1.44%, 1/2/04

        3,935,000
             

Washington St. F.R.W.D.,
Ser. ZTC 10,

         
VMIG1      12,935     

1.38%, 1/2/04
Ser. ZTC 11,

        12,935,000
VMIG1      13,570     

1.38%, 1/2/04

        13,570,000
             

Washington St. Econ. Dev. Fin. Auth. Rev., Pioneer Human Svcs., F.R.D.D.,
Ser. PJ-H,

         
VMIG1      1,650     

1.37%, 1/2/04

        1,650,000
                    
                       32,090,000
WISCONSIN    6.5%                
             

Everest Area Sch. Dist., T.R.A.N.,

         
NR      5,000     

1.125%, 8/30/04

        5,000,803
             

Franklin Pub. Sch. Dist., T.R.A.N.,

         
NR      4,980     

1.25%, 9/3/04

        4,984,947
             

Northland Pines Sch. Dist., T.A.N.,

         
NR      5,000     

1.35%, 9/10/04

        5,008,511

 

See Notes to Financial Statements

 

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Moody’s
Rating		    Principal
Amount (000)		      Description(a)      Value (Note 1)  
                          
             

Sun Prairie Area Sch. Dist., T.R.A.N.,

           
NR    $ 7,400     

1.30%, 9/10/04

      $ 7,410,051  
             

Wisconsin St.

           
VMIG1      52,000     

2.25%, 6/15/04

        52,258,641  
             

G.O., F.R.W.D., Ser. ZTC20,

           
VMIG1      19,745     

1.38%, 1/2/04

        19,745,000  
             

Wisconsin St. Hlth. Edl. Facs. Auth. Rev., Franciscan Sisters, F.R.W.D, Ser. B

           
A1(e)      6,500     

1.29%, 1/2/04

        6,500,000  
                    
                       100,907,953  
  
             

Total Investments    101.8%

(amortized cost $1,587,076,722)(d)

        1,587,076,722  
             

Liabilities in excess of other assets    (1.8%)

        (27,922,442 )
                    
             

Net Assets    100%

      $ 1,559,154,280  
                    
(a) The following abbreviations are used in the portfolio descriptions:

A.M.B.A.C.—American Municipal Bond Assurance Corporation.

A.M.T.—Alternative Minimum Tax.

A.N.N.M.T.—Annual Mandatory Tender.

B.A.N.—Bond Anticipation Note.

F.G.I.C.—Financial Guaranty Insurance Company.

F.R.D.D.—Floating Rate (Daily) Demand Note (b).

F.R.M.D.—Floating Rate (Monthly) Demand Note (b).

F.R.W.D.—Floating Rate (Weekly) Demand Note (b).

F.S.A.—Financial Security Assurance.

G.O.—General Obligation.

M.B.I.A.—Municipal Bond Insurance Corporation.

M.E.R.L.O.T.—Municipal Exempt Receipt-Liquid Optional Tender.

R.A.N.—Revenue Anticipation Notes.

S.E.M.M.T.—Semi-Annual Mandatory Tender.

T.A.N.—Tax Anticipation Note.

T.E.C.P.—Tax-Exempt Commercial Paper.

T.R.A.N.—Tax and Revenue Anticipation Note.

(b) For purposes of amortized cost valuation, the maturity date of Floating Rate Demand Notes considered to be the next date on which the rate of interest is adjusted or the date on which the security can be redeemed at par.
(c) Indicates illiquid securities restricted as to resale. The aggregate cost of such securities was $14,330,000. The aggregate value of $14,330,000 was approximately 0.92% of net assets.
(d) The cost for federal income tax purposes is substantially the same as for financial reporting purposes.
(e) Standard & Poor’s rating.
NR—Not Rated by Moody’s or Standard & Poor’s.

 

See Notes to Financial Statements

 

COMMAND FUNDS   33

 

COMMAND Tax-Free Fund

 

Portfolio of Investments

 

as of December 31, 2003 (Unaudited) Cont’d.

 

The industry classification of portfolio holdings and liabilities in excess of other assets as a percentage of net assets as of December 31, 2003 was as follows:

 

Commercial Banks

    38.0  %

Asset Backed Securities

    19.9  

Federal Credit Agencies

    12.8  

Life Insurance

    11.3  

Short-Term Business Credit

    6.4  

Security Brokers & Dealer

    5.9  

Municipals

    4.2  

Oil & Gas

    1.8  

Finance Services

    1.2  

Bank Holding Companies—Domestic

    0.3  

Liabilities in excess of other assets

    (1.8 )
    
     100.0 %
    

 

See Notes to Financial Statements

 

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COMMAND Tax-Free Fund

 

Statement of Assets and Liabilities

 

as of December 31, 2003 (Unaudited)

 

Assets

       

Investments, at amortized cost which approximates market value

    $ 1,587,076,722

Cash

      22,483

Receivable for Fund shares sold

      24,156,616

Interest receivable

      3,225,166

Prepaid expenses

      34,191
    

Total assets

      1,614,515,178
    

Liabilities

       

Payable for Fund shares reacquired

      32,500,513

Payable for investments purchased

      21,909,106

Management fee payable

      624,763

Distribution fee payable

      183,550

Accrued expenses and other liabilities

      119,809

Dividends payable

      23,157
    

Total liabilities

      55,360,898
    

Net Assets

    $ 1,559,154,280
    
        

Net assets were comprised of:

       

Shares of beneficial interest, at $.01 par value

    $ 15,591,543

Paid-in capital in excess of par

      1,543,562,737
    

Net Assets, December 31, 2003

    $ 1,559,154,280
    

Net asset value, offering price and redemption price per share
$1,559,154,280 ÷ 1,559,154,280 shares of beneficial interest
issued and outstanding

      $1.00
    

 

See Notes to Financial Statements

 

COMMAND FUNDS   35

 

COMMAND Tax-Free Fund

 

Statement of Operations

 

Six Months Ended December 31, 2003 (Unaudited)

 

Net Investment Income

         
  

Income

         

Interest and discount earned

    $ 9,630,499  
    

Expenses

         

Management fee

      3,798,424  

Distribution fee

      1,119,511  

Transfer agent’s fees and expenses

      97,000  

Custodian’s fees and expenses

      69,000  

Registration fees

      49,000  

Reports to shareholders

      29,000  

Legal fees and expenses

      20,000  

Audit fee

      15,000  

Trustees’ fees

      9,000  

Miscellaneous

      12,259  
    

Total expenses

      5,218,194  

Less: Custodian fee credit (Note 1)

      (385 )
    
       5,217,809  
    

Net investment income

      4,412,690  
    

Realized Gain On Investments

         
  

Net realized gain on investment transactions

      125,189  
    

Net Increase In Net Assets Resulting From Operations

    $ 4,537,879  
    

 

See Notes to Financial Statements

 

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COMMAND Tax-Free Fund

 

Statement of Changes (Unaudited)

 

     Six Months
Ended
December 31, 2003		        Year
Ended
June 30, 2003		  

Increase (Decrease) In Net Assets

                    
  

Operations

                    

Net investment income

    $ 4,412,690        $ 16,007,738  

Net realized gain on investment transactions

      125,189          62,913  
    
    

Net increase in net assets resulting from operations

      4,537,879          16,070,651  
    
    

Dividends and distributions to shareholders (Note 1)

      (4,537,879 )        (16,070,651 )
    
    

Fund share transactions (at $1 per share)

                    

Proceeds from shares sold

      2,868,465,079          5,930,677,397  

Net asset value of shares issued in reinvestment of dividends and distributions

      4,423,290          15,494,915  

Cost of shares reacquired

      (3,097,422,896 )        (5,902,513,575 )
    
    

Net increase (decrease) in net assets from Fund share transactions

      (224,534,527 )        43,658,737  
    
    

Total increase (decrease)

      (224,534,527 )        43,658,737  

Net Assets

                    
  

Beginning of period

      1,783,688,807          1,740,030,070  
    
    

End of period

    $ 1,559,154,280        $ 1,783,688,807  
    
    

 

See Notes to Financial Statements

 

COMMAND FUNDS   37

 

COMMAND Tax-Free Fund

 

Financial Highlights (Unaudited)

 

     Six Months Ended
December 31, 2003		  
  

Per Share Operating Performance:

         

Net asset value, beginning of period

    $ 1.000  
    

Net investment income and net realized gains

      0.003  

Dividends and distributions to shareholders

      (0.003 )
    

Net asset value, end of period

    $ 1.000  
    

Total Return(a)

      0.26 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 1,559,154  

Average net assets (000)

    $ 1,781,483  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees

      .58 %(b)

Expenses, excluding distribution and service (12b-1) fees

      .46 %(b)

Net investment income

      .51 %(b)
(a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for periods of less than one full year are not annualized.
(b) Annualized.

 

See Notes to Financial Statements

 

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Year Ended June 30,        
  
2003     2002     2001     2000     1999  
  
                                     
$ 1.000     $ 1.000     $ 1.000     $ 1.000     $ 1.000  
 
 
 
 
  0.009       0.015       0.034       0.032       0.027  
  (0.009 )     (0.015 )     (0.034 )     (0.032 )     (0.027 )
 
 
 
 
$ 1.000     $ 1.000     $ 1.000     $ 1.000     $ 1.000  
 
 
 
 
  .88 %     1.51 %     3.42 %     3.19 %     2.77 %
                                     
$ 1,783,689     $ 1,740,030     $ 1,744,816     $ 1,429,087     $ 1,476,732  
$ 1,850,684     $ 1,839,473     $ 1,600,345     $ 1,515,352     $ 1,549,367  
                                     
  .57 %     .58 %     .57 %     .58 %     .59 %
  .45 %     .46 %     .45 %     .46 %     .46 %
  .87 %     1.48 %     3.32 %     3.15 %     2.72 %

 

See Notes to Financial Statements

 

 

COMMAND FUNDS   39

 

Notes to Financial Statements

 

(Unaudited)

 

COMMAND Money Fund, COMMAND Government Fund and COMMAND Tax-Free Fund (each a “Fund” and collectively, the “Funds”) are each registered under the Investment Company Act of 1940 as an open-end, diversified management investment company whose shares are offered exclusively to participants in the COMMAND Account Program of Wachovia Securities LLC. The COMMAND Money Fund seeks high current income, preservation of capital and maintenance of liquidity by investing in a diversified portfolio of money market instruments maturing in 13 months or less. The COMMAND Government Fund seeks high current income, preservation of capital and maintenance of liquidity by investing in a portfolio of U.S. government securities maturing in 13 months or less. The COMMAND Tax-Free Fund seeks high current income that is exempt from federal income taxes, consistent with the preservation of capital and maintenance of liquidity. The Fund invests in a diversified portfolio of short-term, tax-exempt securities with maturities of 13 months or less that are issued by states, municipalities and their agencies (or authorities). Some securities may be subject to the federal alternative minimum tax (AMT). The Funds invest in a portfolio of money market instruments whose ratings are within the two highest ratings categories by a nationally recognized statistical rating agency or, if not rated, are of comparable quality. The ability of the issuers of the securities held by the Funds to meet their obligations may be affected by economic and/or political developments in a specific industry, state or region.

 

Note 1. Accounting Policies

 

The following is a summary of significant generally accepted accounting policies followed by the Funds in the preparation of their financial statements.

 

Securities Valuation: Portfolio securities of the Funds are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of any discount or premium. If the amortized cost method is determined not to represent fair value, the fair value shall be determined by or under the direction of the Board of Trustees. The Funds may hold up to 10% of their net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). None of the issues of restricted securities held by the Funds at December 31, 2003 include registration rights under which the Fund may demand registration by the issuer.

 

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Repurchase Agreements: In connection with transactions in repurchase agreements with United States Financial Institutions, it is the Funds’ policy that its custodian or designated subcustodians under triparty repurchase agreements, as the case may be, take possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase agreement exceeds one business day, the value of collateral is marked-to-market on a daily basis to ensure adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited.

 

Securities Transactions and Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of securities are calculated on the identified cost basis. Interest income including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. The Funds amortize premiums and accrete discounts on purchases of portfolio securities as adjustments to interest income.

 

Dividends and Distributions: Each Fund declares daily dividends from net investment income and net realized short-term capital gains or losses. Payment of dividends is made monthly. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles.

 

Taxes: For federal income tax purposes, each Fund is treated as a separate taxable entity. It is each Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

 

Custody Fee Credits: The COMMAND Tax-Free Fund has an arrangement with its custodian bank, whereby uninvested monies earn credits which reduce the fees charged by the custodian. Such custody fee credits are presented as a reduction of gross expenses in the accompanying Statement of Operations.

 

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

 

COMMAND FUNDS   41

 

Notes to Financial Statements

 

(Unaudited) Cont’d

 

 

Note 2. Agreements

 

Each Fund has a management agreement with Prudential Investments LLC (“PI”). Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of each Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers of the Funds, occupancy and certain clerical and bookkeeping costs of the Funds. The Funds bear all other costs and expenses.

 

The management fee paid to PI is computed daily and payable monthly based on the following annual rates:

 

Average Daily

Net Assets

    COMMAND
Money
    COMMAND
Government
    COMMAND
Tax-Free

First $500 million

    .500%    .400%    .500%

Second $500 million

    .425%    .400%    .425%

Third $500 million

    .375%    .375%    .375%

Excess of $1.5 billion

    .350%    .375%    .375%

 

Each Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of the shares of each Fund. Each Fund compensates PIMS for distributing and servicing each Fund’s shares pursuant to the plan of distribution regardless of expenses actually incurred, at an annual rate of .125 of 1% of the average daily net assets of each Fund’s shares. The distribution fees are accrued daily and payable monthly.

 

PI, PIM and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

 

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Note. 3. Other Transactions with Affiliates

 

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Funds’ transfer agent. During the six months ended December 31, 2003, each Fund incurred fees for the services of PMFS of approximately:

 

COMMAND Money

    $ 2,494,800

COMMAND Government

    $ 74,800

COMMAND Tax-Free

    $ 93,000

 

As of December 31, 2003, the following amounts were due to PMFS from the Funds:

 

COMMAND Money

    $ 372,200

COMMAND Government

    $ 10,500

COMMAND Tax-Free

    $ 14,800

 

Note 4. Capital

 

The Funds offer Class A shares. The Funds may also offer Class Z and Class S shares (COMMAND Tax-Free Fund may only offer Class S). There are no Class Z or Class S shares currently issued and outstanding.

 

COMMAND FUNDS   43

 

n MAIL   n TELEPHONE

Gateway Center Three

100 Mulberry Street

Newark, NJ 07102

   (800) 225-1852

 

TRUSTEES

Delayne Dedrick Gold•Robert F. Gunia•Robert E. La Blanc•Robin B. Smith•Stephen D. Stoneburn•

Clay T. Whitehead

 

 

OFFICERS
Judy A. Rice, President•Robert F. Gunia, Vice President•Grace C. Torres, Treasurer and Principal Financial and Accounting Officer•Marguerite E.H. Morrison, Chief Legal Officer and Assistant Secretary•Jonathan D. Shain, Secretary•Maryanne Ryan, Anti-Money Laundering Compliance Officer

 

MANAGER   Prudential Investments LLC    Gateway Center Three
100 Mulberry Street
Newark, NJ 07102
INVESTMENT ADVISOR   Prudential Investment
Management, Inc.		    Gateway Center Two
100 Mulberry Street
Newark, NJ 07102
DISTRIBUTOR   Prudential Investment
Management Services LLC		    Gateway Center Three
14th Floor
100 Mulberry Street
Newark, NJ 07102
CUSTODIAN   State Street Bank
and Trust Company		    One Heritage Drive
North Quincy, MA 02171
TRANSFER AGENT   Prudential Mutual Fund
Services LLC		    PO Box 8098
Philadelphia, PA 19101
INDEPENDENT AUDITORS   KPMG LLP    757 Third Avenue
New York, NY 10017
FUND COUNSEL   Sullivan & Cromwell LLP    125 Broad Street
New York, NY 10004

 

COMMAND Funds    
       

COMMAND

Money Fund

  

COMMAND

Government Fund

  

COMMAND

Tax-Free Fund

    

Nasdaq

       CDMXX   CDFXX   CGMXX    

CUSIP

       20050F103   20050R107   20050D108    
                     

 

Mutual Funds:

 

ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY   MAY LOSE VALUE   ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE

 

 

    COMMAND Fund        
        COMMAND
Money Fund		   COMMAND
Government Fund		   COMMAND
Tax-Free Fund		    
   

Nasdaq

   CDMXX   CDFXX   CGMXX    
   

CUSIP

   20050F103   20050R107   20050D108    
                     

CFS    IFS-A087742

Item 2—Code of Ethics—Not required as this is not an annual filing.

 

Item 3—Audit Committee Financial Expert—

 

The registrant’s Board has determined that Mr. David Carson, member of the Board’s Audit Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.

 

Item 4—Principal Accountant Fees and Services—Not required in this filing

 

Item 5—Reserved

 

Item 6—Reserved

 

Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies—Not required in this filing

 

Item 8—Reserved

 

Item 9—Controls and Procedures

 

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

 

(b) There have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 10—Exhibits

 

  (a) Code of Ethics—Not applicable with semi-annual filing

 

  (b) Certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act—Attached hereto

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)

   Command Money Fund
By (Signature and Title)*   /s/    Jonathan D. Shain        
     
   

Jonathan D. Shain

Secretary

 

Date February 23, 2004

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*

     /s/    Judy A. Rice        
     
   

    Judy A. Rice

    President and Principal Executive Officer

 

Date February 23, 2004

 

By (Signature and Title)*     /s/    Grace C. Torres
     
   

Grace C. Torres

Treasurer and Principal Financial Officer

 

Date February 23, 2004

 

* Print the name and title of each signing officer under his or her signature.