-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GP0AkWgBZcwSTfgiTHgznremqX+g8ptCE/MWFlODIsqDdchyw7vTtch74QkjEI1f NpLY1fh3o8fOEtrhJBITRg== 0000950124-95-004096.txt : 19951213 0000950124-95-004096.hdr.sgml : 19951213 ACCESSION NUMBER: 0000950124-95-004096 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951212 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TAX EXEMPT NEW YORK MONEY MARKET FUND CENTRAL INDEX KEY: 0000863420 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06108 FILM NUMBER: 95600920 BUSINESS ADDRESS: STREET 1: 120 SOUTH LASALLE ST CITY: CHICAGO STATE: IL ZIP: 60603 BUSINESS PHONE: 3127811121 MAIL ADDRESS: STREET 1: 120 S. LASALLE STREET CITY: CHICAGO STATE: IL ZIP: 60603 N-30D 1 SEMI ANNUAL REPORT - TENYMMF 1 TAX-EXEMPT NEW YORK MONEY MARKET FUND SEMI-ANNUAL REPORT TO SHAREHOLDERS SEPTEMBER 30, 1995 2 DEAR SHAREHOLDERS: We are pleased to provide you with the Tax-Exempt New York Money Market Fund semi-annual report for the six-month period ended September 30, 1995. Your Fund's management greatly appreciates your decision to invest in Tax-Exempt New York Money Market Fund. During the past six months, the fund registered solid performance and achieved its objective of providing maximum current income exempt from federal, State of New York and New York City income taxes, while maintaining stability of principal. ECONOMIC REVIEW AND OUTLOOK The momentum of the 1994 economic expansion has continued on into 1995, as evidenced by growth in personal income, consumer spending, construction spending and hiring during the six-month period ended September 30, 1995. It was over a year ago that the Federal Reserve Board initiated a series of rate hikes intended to slow economic growth and keep inflation in check. While other markets reacted negatively to the rising rate environment, it had a positive effect on the short-term money markets. Tax-Exempt New York Money Market Fund took advantage of rising interest rates by investing in high quality, short-term money market instruments, which are exempt from federal, State of New York and New York City income taxes. Looking ahead, we anticipate the economy will grow at a moderate pace with some signs of acceleration. Inflation should not become a problem, and we anticipate an extended period of interest rate stability. While investments in other markets may remain volatile, money market funds such as Tax-Exempt New York Money Market Fund should offer the opportunity for attractive yields and should continue to be an excellent place to invest your money. Your Fund's management thanks you for the vote of confidence you have shown through your investment and continues its dedication to performance. We look forward to serving your investment needs for years to come. Sincerely, /s/ FRANK RACHWALSKI Frank Rachwalski Vice President and Portfolio Manager October 12, 1995 Frank Rachwalski is Senior Vice President of Kemper Financial Services, Inc. and Vice President and Portfolio Manager of Tax-Exempt New York Money Market Fund. Mr. Rachwalski holds a B.B.A. and a M.B.A. degree from Loyola University. PORTFOLIO RESULTS For the six months ended September 30, 1995, the Tax-Exempt New York Money Market Fund had a net annualized yield of 3.10% and a tax-equivalent yield of 5.57%.* An investment in the Fund is neither insured nor guaranteed by the U.S. Government, and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. STATISTICAL NOTE The Fund's net annualized yield for the six months ended September 30, 1995, is the annualized sum of the daily dividend rates for the period. Yields are historical and may not represent future yields, which will fluctuate. *The tax-equivalent yield is based upon the Fund's yield and a 44.3% combined Federal and State of New York and New York City marginal income tax rate. Income from the Tax-Exempt New York Money Market Fund may be subject to local taxes. 3 Tax-Exempt New York Money Market Fund - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 1995 (Value in thousands) - --------------------------------------------------------------------------------
Value (a) VARIABLE RATE DEMAND SECURITIES Albany Industrial Development Agency 5.15% $ 400 ------------------------------------------------------------------------ Babylon Industrial Development Agency 4.20% 400 ------------------------------------------------------------------------ Dutchess County Industrial Development Agency 4.65% 100 ------------------------------------------------------------------------ Erie County Water Authority 4.15% 400 ------------------------------------------------------------------------ Franklin County Industrial Development Agency 4.25% 300 ------------------------------------------------------------------------ Metropolitan Transportation Authority 4.30% 400 ------------------------------------------------------------------------ Mount Pleasant Industrial Development Authority 4.30% 700 ------------------------------------------------------------------------ New York City General Obligation 4.47% 1,200 Housing Development Corporation- Columbus Gardens 4.25% 400 East 96th Street 4.25% 300 James Tower Development 4.20% 200 Queenswood Apartments 4.25% 300 Tribeca Towers 4.20% 400 Industrial Development Agency 4.65% 100 Municipal Water Finance Authority 4.65% 700 Trust for Cultural Resources- American Museum of Natural History 4.10% 300 Carnegie Hall 4.15% 300 Museum of Broadcasting 4.25% 200 ------------------------------------------------------------------------ New York State Energy Research and Development Authority 4.51% 800 Housing Finance Agency- Liberty View Apartments 3.90% 300 Mt. Sinai School of Medicine 3.90% 100
(2) 4 Tax-Exempt New York Money Market Fund - --------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 1995 (Value in thousands) - --------------------------------------------------------------------------- Value Housing Finance Agency- Normandie Court I 4.15% $ 500 Trackside Homes Phase III 4.35% 200 Job Development Authority 3.69% 970 Local Government Assistance Corporation 4.25% 400 Medical Care Facilities Finance Agency- Lenox Hill Hospital 4.05% 400 Pooled Equipment Loan Program 4.20% 300 New York and New Jersey Port Authority 4.25% 300 - --------------------------------------------------------------------------- Schenectady County Industrial Development Agency 4.15% 100 - --------------------------------------------------------------------------- St. Lawrence County Industrial Development Agency 4.15% 400 - --------------------------------------------------------------------------- Suffolk County Industrial Development Agency 4.25% 450 - --------------------------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES - 77.9% (average maturity: 4 days) 12,320 - --------------------------------------------------------------------------- OTHER SECURITIES Nassau County Revenue Anticipation Notes 3.75%-3.90%, 3/15/96-4/15/96 702 - --------------------------------------------------------------------------- New York City Metropolitan Transportation Authority 4.25%, 12/14/95 381 Revenue Anticipation Notes 3.90%, 4/11/96 501 - --------------------------------------------------------------------------- New York State Dormitory Authority- Memorial Sloan-Kettering Cancer Center 3.80%, 11/13/95 400 Second Short-Term Revenue Note 3.80%, 12/13/95 597 Energy Research and Development Authority- Electric and Gas Corporation 4.60%, 12/1/95 300 Long Island Lighting Company 4.70%, 3/1/96 500 General Obligation 3.65%, 10/18/95 500
(3) 5 Tax-Exempt New York Money Market Fund - ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS September 30, 1995 (Value in thousands) - -------------------------------------------------------------------------------
Value TOTAL OTHER SECURITIES - 24.6% (average maturity: 106 days) $ 3,881 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS - 102.5% (average maturity: 28 days) 16,201 - ------------------------------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS -(2.5%) (390) - ------------------------------------------------------------------------------- NET ASSETS - 100% $ 15,811 ===============================================================================
NOTES TO PORTFOLIO OF INVESTMENTS Interest rates represent annualized yield to date of maturity, except for variable rate demand securities described in Note (a). For each security, cost (for financial reporting and federal income tax purposes) and carrying value are the same. Likewise, carrying value approximates principal amount. (a) Variable rate demand securities are payable within five business days. These securities are backed by credit support agreements from banks or insurance institutions. The rates shown are the current rates at September 30, 1995. See accompanying Notes to Financial Statements. (4) 6 Tax-Exempt New York Money Market Fund - ---------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES September 30, 1995 (in thousands) - ----------------------------------------------------
ASSETS - ---------------------------------------------------- Investments, at amortized cost $16,201 - ---------------------------------------------------- Interest receivable 75 - ---------------------------------------------------- Total assets 16,276 - ---------------------------------------------------- LIABILITIES AND NET ASSETS - ---------------------------------------------------- Cash overdraft 426 - ---------------------------------------------------- Payable for: Dividends 12 - ---------------------------------------------------- Distribution services fee 5 - ---------------------------------------------------- Other 22 - ---------------------------------------------------- Total liabilities 465 - ---------------------------------------------------- Net assets applicable to shares outstanding $15,811 ==================================================== THE PRICING OF SHARES - ---------------------------------------------------- Shares outstanding, no par value 15,811 - ---------------------------------------------------- Net asset value and redemption price per share $1.00 ====================================================
See accompanying Notes to Financial Statements. (5) 7 Tax-Exempt New York Money Market Fund - -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS STATEMENT OF CHANGES IN NET ASSETS Six months ended September 30, 1995 (in thousands) - ------------------------------------------------------------------------------------------------------------------ Six months Year ended ended September 30, March 31, 1995 1995 ----------------------- (in thousands) Operations: Interest income $299 Net investment income $ 237 292 - --------------------------------------- ---------------------------------------------------------- Expenses: Dividends to shareholders Management fee 17 from net investment income (237) (292) - --------------------------------------- ---------------------------------------------------------- Distribution services 39 Capital share transactions - --------------------------------------- (dollar amounts and number Custodian and transfer agent of shares are the same): fees and related expenses 12 Shares sold 52,461 77,096 - --------------------------------------- ---------------------------------------------------------- Registration costs 3 - --------------------------------------- Shares issued in Professional fees 6 reinvestment of dividends 239 282 - --------------------------------------- ---------------------------------------------------------- 52,700 77,378 Reports to shareholders 5 - --------------------------------------- Less shares redeemed 50,979 74,050 Trustees' fees and other 3 ---------------------------------------------------------- - --------------------------------------- Net increase from capital 85 share transactions and total - --------------------------------------- increase in net assets 1,721 3,328 Less expenses waived ---------------------------------------------------------- by the investment manager (23) - --------------------------------------- Total expenses waived Net assets: by the Fund 62 Beginning of period 14,090 10,762 - --------------------------------------- ---------------------------------------------------------- Net investment income $237 End of period $15,811 14,090 ======================================= ==========================================================
See accompanying Notes to Financial Statements. (6) 8 Tax-Exempt New York Money Market Fund NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF THE FUND Tax-Exempt New York Money Market Fund is an open-end management investment company organized as a business trust under the laws of Massachusetts. 2. SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION Investments are stated at amortized cost, which approximates market value. In the event that a deviation of 1/2 of 1% or more exists between the Fund's $1.00 per share net asset value, calculated at amortized cost, and the net asset value calculated by reference to market-based values, or if there is any other deviation that the Board of Trustees believes would result in a material dilution to shareholders or purchasers, the Board of Trustees will promptly consider what action should be initiated. INVESTMENT TRANSACTIONS AND INTEREST INCOME Investment transactions are accounted for on the trade date (date the order to buy or sell is executed). Interest income is recorded on the accrual basis and includes amortization of premium on investments. FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS Fund shares are sold and redeemed on a continuous basis at net assest value. On each day that the New York Stock Exchange is open for trading, the Fund determines its net asset value per share at 11:00 a.m. and 3:00 p.m. Chicago time by dividing the total value of the Fund's investments and other assets, less liabilities, by the number of Fund shares outstanding. The Fund declares a daily dividend, equal to its net investment income for that day, payable monthly. Net investment income consists of all interest income, plus (minus) all realized gains (losses) on portfolio securities, minus all expenses of the Fund. FEDERAL INCOME TAXES The Fund has complied with the special provisions of the Internal Revenue Code available to investment companies during the six months ended September 30, 1995. 3. TRANSACTIONS WITH AFFILIATES MANAGEMENT AGREEMENT The Fund has a management agreement with Kemper Financial Services, Inc. (KFS) and pays a management fee at an annual rate of .22% of the first $500 million of average daily net assets declining gradually to .15% of average daily net assets in excess of $3 billion. During the six months ended September 30, 1995, the Fund incurred a management fee of $17,000. DISTRIBUTION AGREEMENT The Fund also has an administration, shareholder services and distribution agreement with Kemper Distributors, Inc. (KDI). For its services as primary distributor, the Fund pays KDI an annual fee of .50% of average daily net assets of the Fund. KDI has related service agreements with various firms to provide cash management and other services for Fund shareholders. Under these agreements, KDI pays such firms at an annual rate of .50% of the average daily net assets of those accounts they maintain and service. During the six months ended September 30, 1995, the Fund incurred a distribution services fee of $39,000, all of which KDI remitted to various firms pursuant to the related service agreements, including $18,000 to dealers affiliated with KDI. (7) 9 Tax-Exempt New York Money Market Fund - -------------------------------------------------------------------------------- ================================================================================ SHAREHOLDER SERVICES AGREEMENT Pursuant to a services agreement with the Fund's transfer agent, Kemper Service Company (KSvC) is the shareholder service agent of the Fund. For the six months ended September 30, 1995, the transfer agent remitted shareholder service fees to KSvC of $8,000. EVEREN Clearing Corp. (ECC), formerly Kemper Clearing Corp., was an affiliate of KFS until September 13, 1995. Pursuant to an agreement with KSvC, ECC performs bookkeeping, data processing and shareholder services for ECC clients who are Fund shareholders. During the six months ended September 30, 1995, ECC earned $4,000 from KSvC for account maintenance fees. OFFICERS AND TRUSTEES Certain officers or trustees of the Fund are also officers or directors of KFS. During the six months ended September 30, 1995, the Fund made no payments to its officers and incurred trustees' fees of $2,000 to independent trustees. EXPENSE WAIVER KFS has agreed to temporarily waive its management fee and reimburse or pay certain operating expenses to the extent they exceed .80% of average daily net assets of the Fund. Under this agreement, KFS waived $23,000 of expenses during the six months ended September 30, 1995. (8) 10 Tax-Exempt New York Money Market Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Six months ended September 30, Year ended March 31, 1995 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 - --------------------------------------------------------------------------------------------------------- Net investment income and dividends declared .02 .02 .02 .02 .04 - --------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 - --------------------------------------------------------------------------------------------------------- TOTAL RETURN (%): 1.56 2.40 1.63 1.90 3.77 - --------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS (%): Expenses after expense absorption .80 .80 .80 .80 .42 - --------------------------------------------------------------------------------------------------------- Net investment income 3.06 2.44 1.61 1.88 3.52 - --------------------------------------------------------------------------------------------------------- OTHER RATIOS TO AVERAGE NET ASSETS (%): Expenses 1.10 1.15 1.25 1.53 1.45 - --------------------------------------------------------------------------------------------------------- Net investment income 2.76 2.09 1.16 1.15 2.49 - --------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DATA: Net assets at end of period (in thousands) $15,811 14,090 10,762 8,424 8,243 =========================================================================================================
NOTE: KFS has agreed to temporarily waive its management fee and reimburse or pay certain operating expense. The Other Ratios to Average Net Assets are computed without this expense waiver or reimbursement. Ratios have been determined on an annualized basis. Total return is not annualized. (9) 11 SPECIAL SHAREHOLDERS' MEETING On September 19, 1995 the results of the proxy solicitation were announced at a joint special shareholders meeting. Tax-Exempt New York Money Market Fund shareholders were asked to vote on four separate issues: election of nine Trustees to the Board of Trustees, ratification of Ernst & Young LLP as independent auditors, approval of a new investment management agreement with Kemper Financial Services, Inc., or its successor on the same terms as the current agreement and approval of a new 12b-1 distribution plan with Kemper Distributors, Inc. or its successor on the same terms as the current plan. We are pleased to report that all nominees were elected and all other items were approved. Following are the results for each issue: 1) Election of Trustees
For Withheld David W. Belin 16,619,051 18,301 Lewis A. Burnham 16,619,051 18,301 Donald L. Dunaway 16,619,051 18,301 Robert B. Hoffman 16,619,051 18,301 Donald R. Jones 16,619,051 18,301 David B. Mathis 16,619,051 18,301 Shirley D. Peterson 16,619,051 18,301 William P. Sommers 16,619,051 18,301 Stephen B. Timbers 16,619,051 18,301
2) Ratification of the selection of Ernst & Young LLP as independent auditors for the fund.
For Against Abstain 16,636,054 0 1,298
3) Approval of new investment management agreement
For Against Abstain 16,618,832 0 1,298
4) Approval of new 12b-1 distribution plan
For Against Abstain 16,618,832 0 18,519
(10) 12 INVESTMENT MANAGER Kemper Financial Services, Inc. PRINCIPAL UNDERWRITER Kemper Distributors, Inc. 120 South LaSalle Street Chicago, IL 60603 This report is not to be distributed unless preceded or accompanied by a prospectus. 1005520 10/95 -----END PRIVACY-ENHANCED MESSAGE-----