-----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, LxcbYr0LEtEA8+EVV4qycei7vdTqJhJBlTvdqs7MQIPHn99I2X0xVoSQAgBHyrf9 qxoSjkDiz9XqmpHietzcDQ== 0000950137-96-000901.txt : 19960613 0000950137-96-000901.hdr.sgml : 19960613 ACCESSION NUMBER: 0000950137-96-000901 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960611 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: 96579501 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 N-30D 1 TAX-EXEMPT NEW YORK MONEY MARKET FUND ANNUAL REPORT TO SHAREHOLDERS MARCH 31, 1996 2 DEAR SHAREHOLDERS: We are pleased to provide you with the Tax-Exempt New York Money Market Fund annual report for the year ended March 31, 1996. The Fund registered solid performance during this period. Please take a moment to review the Portfolio results on page 2. ECONOMIC REVIEW AND OUTLOOK Recent developments in the U.S. economy and statements by Federal Reserve Board chairman Alan Greenspan have indicated that interest rates are not headed any lower. We feel that the economy's growth path, while moderate, has become more stable than at the beginning of the year. The trend for inflation in the near future appears to remain subdued. Your Fund has continued to meet its investment objective by owning high quality investments that provide stability of principal, especially during periods of market uncertainty, and competitive money market yields that are exempt from Federal, State of New York and New York City income taxes. We look forward to meeting the challenges which the economy and the financial markets may present in the months ahead. As always, we are dedicated to providing our shareholders with excellent investment results. Thank you for your investment in Tax-Exempt New York Money Market Fund. We look forward to continuing to serve your investment needs in the years to come. Sincerely, /s/ Frank J. Rachwalski Frank J. Rachwalski Vice President and Portfolio Manager April 8, 1996 Frank Rachwalski is Senior Vice President of Zurich Kemper Investments, 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. (1) 3 PORTFOLIO RESULTS For the year ended March 31, 1996, the Tax-Exempt New York Money Market Fund had a net annualized yield of 2.98% and a tax equivalent yield of 5.35%.* NOTES 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. The Fund's net annualized yield for the year ended March 31, 1996 is the annualized sum of the daily dividend rates for the period. Yields are historical and do not represent future yields, which will fluctuate. The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated above. The manager's views are subject to change at any time, based on market and other conditions. * The tax equivalent yield is based upon the Fund's yield and a 44.3% combined Federal, State and City of New York marginal tax rate. Income may be subject to local taxes and, for some investors, the alternative minimum tax. (2) 4
Tax-Exempt New York Money Market Fund - --------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS March 31, 1996 (Value in thousands) - --------------------------------------------------------------------- Value (a)VARIABLE RATE DEMAND SECURITIES New York State Energy Research and Development Authority 3.80% $ 800 Housing Finance Agency: Liberty View Apartments 3.45% 300 Mt. Sinai School of Medicine 3.55% 100 Normandie Court I 3.10% 500 Trackside Homes Phase III 3.35% 200 Job Development Authority 3.53% 865 Local Government Assistance Corporation 3.15% 400 Medical Care Facilities Finance Agency: Lenox Hill Hospital 3.10% 400 Pooled Equipment Loan Program 3.35% 300 New York and New Jersey Port Authority 3.25% 300 - --------------------------------------------------------------------- Babylon Industrial Development Agency 3.35% 400 - --------------------------------------------------------------------- Dutchess County Industrial Development Agency 3.60% 100 - --------------------------------------------------------------------- Franklin County Industrial Development Agency 3.45% 300 - --------------------------------------------------------------------- Metropolitan Transportation Authority 3.20% 400 - --------------------------------------------------------------------- Mount Pleasant Industrial Development Authority 3.25% 700 - --------------------------------------------------------------------- New York City General Obligation 3.42% 2,700 Housing Development Corporation: Columbus Gardens 3.20% 400 East 96th Street 3.25% 300 James Tower Development 3.25% 200
(3) 5
Tax-Exempt New York Money Market Fund - ---------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS March 31, 1996 (Value in thousands) - ---------------------------------------------------------------------- Value Jane Street Development 3.30% $ 700 Queenswood Apartments 3.45% 300 Tribeca Towers 3.30% 400 Industrial Development Agency 3.60% 100 Municipal Water Finance Authority 3.75% 800 Trust for Cultural Resources: American Museum of Natural History 3.15% 300 Carnegie Hall 3.40% 300 Museum of Broadcasting 3.45% 200 - --------------------------------------------------------------------- Schenectady County Industrial Development Agency 3.25% 100 - --------------------------------------------------------------------- St. Lawrence County Industrial Development Agency 3.20% 400 - --------------------------------------------------------------------- Suffolk County Industrial Development Agency 3.35% 400 - --------------------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES - 73.7% (average maturity: 3 days) 13,665 - --------------------------------------------------------------------- OTHER SECURITIES New York State Dormitory Authority: Memorial Sloan-Kettering Cancer Center 3.10% , 4/8/96 400 Second Short-Term Revenue Note 3.70% , 4/9/96 597 Energy Research and Development Authority: Electric and Gas Corporation 3.65% , 12/1/96 600 Long Island Lighting Company 3.25% , 3/1/97 500 General Obligation 3.45% , 11/15/96 337 Power Authority of New York 3.25% , 5/14/96 500 - --------------------------------------------------------------------- Nassau County Revenue Anticipation Notes 3.40%, 3/5/97 501
(4) 6
Tax-Exempt New York Money Market Fund - ----------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS March 31, 1996 (Value in thousands) - ----------------------------------------------------------------------- Value Tax Anticipation Notes 3.90% , 4/15/96 $ 200 - ---------------------------------------------------------------------- New York City Revenue Anticipation Notes 3.45% - 3.90% , 4/11/96 - 6/28/96 1,102 - ---------------------------------------------------------------------- TOTAL OTHER SECURITIES - 25.6% (average maturity: 137 days) 4,737 - ---------------------------------------------------------------------- TOTAL INVESTMENTS - 99.3% (average maturity: 37 days) 18,402 - ---------------------------------------------------------------------- Other Assets, Less Liabilities - .7% 125 Net Assets - 100% $18,527 ======================================================================
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 and are backed by credit support agreements from banks or insurance institutions. The rates shown are the current rates at March 31, 1996. See accompanying Notes to Financial Statements. (5) 7 Tax-Exempt New York Money Market Fund REPORT OF INDEPENDENT AUDITORS THE BOARD OF TRUSTEES AND SHAREHOLDERS TAX-EXEMPT NEW YORK MONEY MARKET FUND We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Tax-Exempt New York Money Market Fund as of March 31, 1996, the related statements of operations for the year then ended and changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the fiscal periods since 1992. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of March 31, 1996, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significicant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Tax-Exempt New York Money Market Fund at March 31, 1996, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the fiscal periods since 1992, in conformity with generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois May 16, 1996 (6) 8
Tax-Exempt New York Money Market Fund - ------------------------------------------------ STATEMENT OF ASSETS AND LIABILITIES March 31, 1996 (in thousands) - ------------------------------------------------ ASSETS - ------------------------------------------------ Investments, at amortized cost $18,402 - ------------------------------------------------ Cash 86 - ------------------------------------------------ Interest receivable 99 - ------------------------------------------------ Total assets 18,587 - ------------------------------------------------ LIABILITIES AND NET ASSETS - ------------------------------------------------ Payable for: Dividends 13 - ------------------------------------------------ Shares of the Fund redeemed 21 - ------------------------------------------------ Distribution services fee 7 - ------------------------------------------------ Other 19 - ------------------------------------------------ Total liabilities 60 - ------------------------------------------------ Net assets applicable to shares outstanding $18,527 ================================================ THE PRICING OF SHARES - ------------------------------------------------ Shares outstanding 18,527 - ------------------------------------------------ Net asset value and redemption price per share $1.00 ================================================
See accompanying Notes to Financial Statements. (7) 9
Tax-Exempt New York Money Market Fund - -------------------------------------------- STATEMENT OF OPERATIONS Year ended March 31, 1996 (in thousands) - -------------------------------------------- Interest income $633 - -------------------------------------------- Expenses: Management fee 37 - -------------------------------------------- Distribution services fee 84 - -------------------------------------------- Custodian and transfer agent fees and related expenses 20 - -------------------------------------------- Registration costs 11 - -------------------------------------------- Professional fees 18 - -------------------------------------------- Reports to shareholders 14 - -------------------------------------------- Trustees' fees and other 8 - -------------------------------------------- 192 - -------------------------------------------- Less expenses waived by the investment manager (57) - -------------------------------------------- Total expenses absorbed by the Fund 135 - -------------------------------------------- Net investment income $498 ============================================ STATEMENT OF CHANGES IN NET ASSETS Years ended March 31, 1996 and 1995 - ------------------------------------------------------------------ 1996 1995 ---------------------------- (in thousands) Operations: Net investment income $ 498 $ 292 - ------------------------------------------------------------------ Dividends to shareholders from net investment income (498) (292) - ------------------------------------------------------------------ Capital share transactions (dollar amounts and number of shares are the same): Shares sold 108,282 77,096 - ------------------------------------------------------------------ Shares issued in reinvestment of dividends 497 282 - ------------------------------------------------------------------ 108,779 77,378 Less shares redeemed 104,342 74,050 - ------------------------------------------------------------------ Net increase from capital share transactions and total increase in net assets 4,437 3,328 - ------------------------------------------------------------------ NET ASSETS: Beginning of year 14,090 10,762 - ------------------------------------------------------------------ End of year $18,527 14,090 ==================================================================
See accompanying Notes to Financial Statements. (8) 10 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 asset 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 Funds investment 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 Each Fund has compiled with the special provisions of the Internal Revenue Code available to investment companies and therefore no federal income tax provision is required. 3. TRANSACTIONS WITH AFFILIATES MANAGEMENT AGREEMENT The Fund has a management agreement with Zurich Kemper Investments, Inc. (ZKI) (formerly known as Kemper Financial Services, Inc.) 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 year ended March 31, 1996, the Fund incurred a management fee of $37,000. 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 year ended March 31, 1996, the Fund incurred a distribution services fee of $84,000, all of which KDI remitted to various firms pursuant to the related service agreements, including $18,000 to dealers affiliated with KDI. (9) 11 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. Under the agreement, KSvC received shareholder services fees of $19,000 for the year ended March 31, 1996. EVEREN Clearing Corp. (ECC), formerly Kemper Clearing Corp., was an affiliate of ZKI 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 period from April 1, 1995 to September 13, 1995, ECC received $4,000 from KSvC for account maintenance fees. OFFICERS AND TRUSTEES Certain officers or trustees of the Fund are also officers or directors of ZKI. During the year ended March 31, 1996, the Fund made no payments to its officers and incurred trustees' fees of $7,000 to independent trustees. EXPENSE WAIVER ZKI 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, ZKI waived $57,000 of expenses during the year ended March 31, 1996. (10) 12
Tax-Exempt New York Money Market Fund - ---------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - ---------------------------------------------------------------------------------------------- Year ended March 31, 1996 1995 1994 1993 1992 - ---------------------------------------------------------------------------------------------- Per Share Operating Performance: Net asset value, beginning of year $ 1.00 1.00 1.00 1.00 1.00 - ----------------------------------------------------------------------------------------------- Net investment income and dividends declared .03 .02 .02 .02 .04 - ----------------------------------------------------------------------------------------------- Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00 - ----------------------------------------------------------------------------------------------- Total Return 3.03% 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 2.95% 2.44 1.61 1.88 3.52 - ----------------------------------------------------------------------------------------------- OTHER RATIOS TO AVERAGE NET ASSETS Expenses 1.14% 1.15 1.25 1.53 1.45 - ----------------------------------------------------------------------------------------------- Net investment income 2.61% 2.09 1.16 1.15 2.49 - ----------------------------------------------------------------------------------------------- Supplemental Data: Net assets at end of year (in thousands) $18,527 14,090 10,762 8,424 8,243 ===============================================================================================
NOTE: ZKI has agreed to temporarily waive its management fee and reimburse or pay certain operating expenses. The Other Ratios to Average Net Assets are computed without this expense waiver or reimbursement. FEDERAL TAX STATUS OF 1996 DIVIDENDS All of the dividends constitute tax-exempt interest which is not taxable for federal income tax purposes; however, a portion of the dividends paid may be includible in the alternative minimum tax calculation. (11) 13 INVESTMENT MANAGER Zurich Kemper Investments, 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. 1013840 4/96 -----END PRIVACY-ENHANCED MESSAGE-----