-----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, CPafo7pMdFWcS5GxYEAeD8ygU9HX2Av9K/LXfpgRAnhMWFS9Gh4WkMqTLvs+0zH9 RhwMiV+vjR3DYSSP04I8pQ== 0000916641-96-000190.txt : 19960328 0000916641-96-000190.hdr.sgml : 19960328 ACCESSION NUMBER: 0000916641-96-000190 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960131 FILED AS OF DATE: 19960327 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASH RESOURCE TRUST /MA/ CENTRAL INDEX KEY: 0000908920 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07862 FILM NUMBER: 96538795 BUSINESS ADDRESS: STREET 1: RIVERFRONT PLAZA, WEST TOWER STREET 2: 901 E. BYRD STREET CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 8047823294 MAIL ADDRESS: STREET 1: RIVERFRONT PLAZA, WEST TOWER STREET 2: 901 E BYRD STREET CITY: RICHMOND STATE: VA ZIP: 23219 FORMER COMPANY: FORMER CONFORMED NAME: IMG MONEY MARKET SERIES TRUST DATE OF NAME CHANGE: 19930709 N-30D 1 MENTOR CASH RESOURCE TRUST N30D CASH RESOURCE TRUST SEMI-ANNUAL REPORT JANUARY 31, 1996 TO OUR SHAREHOLDERS Thank you for your investment in the Cash Resource Trust (CRT). It is our privilege to send you the CRT Semi-Annual Report for the period ended January 31, 1996. The Cash Resource Trust (CRT) money-market funds are part of a diversified family of mutual funds offered by Mentor Investment Group, an investment management firm with more than the $5.5 billion in assets under management. Mentor manages mutual funds and separately-invested portfolios for individuals and institutions in seven different investment management styles: Growth from investments in small companies, large high-quality companies, and global and international investments; fixed-income management for current income or total return; and cash management. The CRT money-market funds seek current income consistent with preservation of capital and maintenance of liquidity. CRT now serves the needs of more than 300,000 investors. The Funds are managed according to a policy that places strong emphasis on credit research. Each investment is carefully reviewed and quality is never sacrificed to attain higher yields. Following are financial statements for the Money-Market Funds, the U.S. Government Money-Market Fund, and the Tax-Exempt Money-Market Fund, with comments from members of the management team regarding their investment strategy and economic outlook. We appreciate your confidence in us and look forward to continuing to serve you. Sincerely, /s/ DANIEL J. LUDEMAN /s/ PAUL F. COSTELLO Daniel J. Ludeman Paul F. Costello CHAIRMAN PRESIDENT AN INVESTMENT IN THE FUNDS IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE IS NO GUARANTEE THAT THE FUNDS WILL MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. FOR MORE INFORMATION AND PROSPECTUSES FOR MENTOR FUNDS AND MENTOR INSTITUTIONAL SERIES TRUST, PLEASE CALL US (800/382-0016), OR CONTACT YOUR FINANCIAL CONSULTANT. THE PROSPECTUSES CONTAIN COMPLETE INFORMATION REGARDING FEES, SALES CHARGES, AND EXPENSES. PLEASE READ THEM CAREFULLY BEFORE INVESTING OR SENDING MONEY. 1 CASH RESOURCE TRUST MANAGERS' OVERVIEW JANUARY 31, 1996 The three portfolios of the Cash Resource Trust (CRT), managed by Commonwealth Investment Counsel, are invested in accordance with conservative standards which place primary emphasis on liquidity and safety of principal: * The CRT Money-Market Fund is a diversified portfolio of fixed-income securities, including commercial paper, bank obligations, and other short-term investments. * The CRT U.S. Government Money-Market Fund is invested entirely in securities backed by the U.S. government or its agencies, and related repurchase agreements. * The CRT Tax-Exempt Money-Market Fund is structured to generate income exempt from federal taxes. The six months ending January 31, 1996 was one of mixed signals for money managers. The period began August 1, 1995 with the Federal Reserve having just lowered the key Fed Funds rate to 5.75%, the first reduction in two years. The next four months witnessed a mixed pattern of economic data, with the economy seemingly poised for strong growth but frustrated by a sluggish consumer. During this period the markets tended to vacillate within a relatively narrow trading range based on whether the latest statistics were weak or strong. But the strongest evidence indicated a soft economy, with the result that the Fed reduced rates to 5.50% in December and 5.25% in January. It now appears, however, that the data for the latter part of the period were distorted, first by the partial government shut-down and then by the bad weather, and were not as weak as first reported. Expectations now are that the economy may finally be on a more positive growth track and further cuts by the Fed may not be forthcoming. The fixed-income markets sold off sharply in response to this change in expectations, with rates rising. The money-market area was no exception. The remainder of the year appears more uncertain than usual, with the course of the economy and Fed policy somewhat open to question, the budget impasse still not resolved, and presidential elections taking place. Volatility is likely to be high, and our pledge to you is to continue our emphasis on safety and liquidity through high credit standards and conservative investment policies. /s/ R. PRESTON NUTTALL R. Preston Nuttall DIRECTOR OF CASH MANAGEMENT /s/ HUBERT R. WHITE Hubert R. White PORTFOLIO MANAGER /s/ KATHRYN T. ALLEN Kathryn T. Allen PORTFOLIO MANAGER 2 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) BANKERS ACCEPTANCES 1.34% Corestates Bank, 5.57%, 2/20/96 $ 2,000 $ 1,994 Nationsbank Corporation, 5.25%, 4/23/96 5,000 4,940 TOTAL BANKERS ACCEPTANCES 6,934 CERTIFICATES OF DEPOSIT 7.73% Bank of Montreal, 5.53%, 2/08/96 20,000 20,000 National Bank of Detroit, 5.46%, 2/16/96 20,000 20,000 TOTAL CERTIFICATES OF DEPOSIT 40,000 COMMERCIAL PAPER 70.43% APPAREL & ACCESSORY STORES 3.85% J.C. Penny Funding Corporation, 5.62%, 2/29/96 20,000 19,913 ASSET BACKED SECURITIES 3.85% CIESCO Limited Partnership, 5.64%, 2/22/96 20,000 19,934 COMMERCIAL BANKS 21.65% ABN-Amro North America Finance, Inc., 5.68%, 2/22/96 20,000 19,934 Corestates Capital Corporation, 5.13%, 6/13/96 18,000 17,659 Internationale Nederlanden, 5.64%, 2/27/96 10,000 9,959 Internationale Nederlanden, 5.61%, 3/15/96 10,000 9,933 Nationsbank Corporation, 5.54%, 3/28/96 10,000 9,913 Nationsbank Corporation, 5.50%, 5/17/96 5,000 4,919 Societe Generale N.A., Inc., 5.61%, 2/09/96 20,000 19,975 Svenska Handelsbanken, 5.37%, 4/10/96 20,000 19,794 Total Commercial Banks 112,086 ELECTRIC SERVICES 6.76% National Rural Utilities, 5.55%, 3/26/96 20,000 19,834 Rincon Securities, Inc., 5.81%, 2/02/96 2,000 2,000 Rincon Securities, Inc., 5.66%, 2/23/96 9,850 9,816 Rincon Securities, Inc., 5.48%, 2/27/96 2,150 2,141 Rincon Securities, Inc., 5.56%, 2/29/96 1,250 1,245 Total Electric Services 35,036
3 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) COMMERCIAL PAPER (CONTINUED) OIL AND GAS FIELD EXPLORATION SERVICES 3.85% Statoil, 5.70%, 2/22/96 $20,000 $ 19,934 PERSONAL CREDIT INSTITUTIONS 3.84% Ford Motor Credit Company, 5.43%, 3/12/96 20,000 19,879 PETROLEUM REFINING 3.66% Pemex Capital, Inc., 5.73%, 2/13/96 8,000 7,985 Pemex Capital, Inc., 5.71%, 2/16/96 11,000 10,974 Total Petroleum Refining 18,959 RENTAL & LEASING 3.71% General Electric Capital Corporation, 5.50%, 4/04/96 6,400 6,338 General Electric Capital Corporation, 5.26%, 4/1/96 13,000 12,852 Total Rental & Leasing 19,190 SECURITY BROKERS & DEALERS 15.40% Bear Stearns Company, 5.52%, 2/09/96 20,000 19,975 CS First Boston, Inc., 5.51%, 2/14/96 13,000 12,974 CS First Boston, Inc., 5.36%, 3/14/96 7,000 6,956 Merrill Lynch & Company, Inc., 5.58%, 3/08/96 8,000 7,955 Merrill Lynch & Company, Inc., 5.67%, 3/29/96 12,000 11,892 Morgan Stanley Group, Inc., 5.50%, 2/16/96 20,000 19,954 Total Security Brokers & Dealers 79,706 TOBACCO PRODUCTS 3.86% Philip Morris, 5.48%, 2/07/96 20,000 19,982 TOTAL COMMERCIAL PAPER 364,619
4 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) FOREIGN GOVERNMENT OBLIGATIONS 3.85% Province of British Columbia, 5.58%, 2/26/96 $20,000 $ 19,923 U.S. GOVERNMENT SECURITIES AND AGENCIES 7.72% Federal Home Loan Bank, 5.75%-6.17%, 12/23/96-2/14/97 (a) 15,000 15,000 Student Loan Marketing Association, 5.33%-5.36%, 11/24/97-2/22/99 (a) 25,000 24,997 TOTAL U.S. GOVERNMENT SECURITIES AND AGENCIES 39,997 REPURCHASE AGREEMENTS 8.98% Goldman, Sachs & Company Dated 1/31/96, 5.90%, due 2/01/96, collateralized by $47,023 Federal National Mortgage Association, 7.00%, 1/01/26 46,471 46,471 TOTAL INVESTMENTS (COST $517,944) 100.05% 517,944 OTHER ASSETS LESS LIABILITIES (0.05%) (260) NET ASSETS 100.00% $517,684
SEE NOTES TO PORTFOLIOS OF INVESTMENTS. 5 CASH RESOURCE TRUST U.S. GOVERNMENT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) U.S. GOVERNMENT SECURITIES AND AGENCIES 51.93% Federal Home Loan Bank 5.18% - 9.75%, 2/09/96 - 5/02/96 $ 152,000 $150,920 5.51% - 6.04%, 3/08/96 - 2/16/99 (a) 62,000 62,000 Federal Home Loan Mortgage Corporation 5.28% - 6.84%, 2/05/96 - 4/11/96 197,207 196,709 Federal National Mortgage Association 5.02% - 5.55%, 2/27/96 - 7/12/96 170,000 167,912 Student Loan Marketing Association 5.33% - 6.08%, 7/01/96 - 2/08/99 (a) 112,500 112,498 TOTAL U.S. GOVERNMENT SECURITIES AND AGENCIES 690,039 REPURCHASE AGREEMENTS 47.88% Chase Manhatten Securities, Inc. Dated 1/31/96, 5.90%, due 2/01/96, collateralized by $60,193 Federal National Mortgage Association, 7.00% - 7.50%, 3/01/24 - 12/01/25 60,000 60,000 First Union Corporation Dated 1/31/96, 5.91%, due 2/01/96, collateralized by $181,056 U.S. Treasury Notes, 6.13%, 5/31/97 and $8,512 U.S. Treasury Bill, 4.78%, 10/17/96 190,000 190,000 Goldman, Sachs & Company Dated 1/31/96, 5.90%, due 2/01/96, collateralized by $147,975 Federal National Mortgage Association, 7.00%, 1/01/26 146,237 146,237 Lehman Brothers, Inc. Dated 1/31/96, 5.91%, due 2/01/96, collateralized by $24,621 Federal National Mortgage Association, 3/01/24 - 4/01/24 and $35,619 Federal Home Loan Mortgage Corporation, 6.50% - 7.00%, 7/01/09 - 1/01/24 60,000 60,000
6 CASH RESOURCE TRUST U.S. GOVERNMENT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) REPURCHASE AGREEMENTS (CONTINUED) Nationsbank Corporation Dated 1/31/96, 5.95%, due 2/01/96, collateralized by $57,600 U.S. Treasury Notes, 6.25%, 8/31/00 $60,000 $ 60,000 Paine Webber, Inc. Dated 1/31/96, 5.92%, due 2/01/96, collateralized by $68,275 Government National Mortgage Association, 7.00% - 7.50%, 11/15/23 - 11/15/27 60,000 60,000 United Bank of Switzerland Dated 1/31/96, 5.82%, due 2/01/96, collateralized by $3,242 Federal Home Loan Mortgage Corporation, 5.50% - 9.50%, 10/01/02 - 2/01/25 and $59,746 Federal National Mortgage Association - Strips, 6.50% - 9.00%, 11/01/02 - 8/01/23 60,000 60,000 TOTAL REPURCHASE AGREEMENTS 636,237 TOTAL INVESTMENTS (COST $1,326,276) 99.81% 1,326,276 OTHER ASSETS LESS LIABILITIES 0.19% 2,534 NET ASSETS 100.00% $1,328,810
SEE NOTES TO PORTFOLIOS OF INVESTMENTS. 7 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (A) 43.63% ALABAMA 2.11% University of Alabama Board of Trustees, 3.15%, 10/01/13 $ 6,400 $ 6,400 ARIZONA 3.30% Apache County IDA Tucson Electric Power Company Project, 3.15%, 6/15/20 10,000 10,000 COLORADO 2.48% Colorado Housing Finance Authority Series 1985, 3.30%, 5/01/97 7,500 7,500 ILLINOIS 4.45% Chicago O'Hare International Airport American Airlines Series 1983C, 3.20%, 1/01/18 2,000 2,000 Illinois DFA Grayhill, Inc. Project IDR, 3.35%, 2/01/05 3,500 3,500 Illinois DFA, 3.35%, 10/01/15 4,760 4,760 Illinois HFA West Suburban Hospital, 3.15%, 7/01/05 3,200 3,200 13,460 LOUISIANA 2.00% Louisiana Public Facility College & University Project, 3.10%, 9/01/10 6,065 6,065 MARYLAND 3.28% Anne Arundel County, Oakland Hills Project, 3.30%, 5/15/15 2,052 2,052 Howard County PCR, Harmony Hall, Inc. Project, 3.30%, 10/01/10 2,868 2,868 Maryland State Health & Higher Education, Series B, 3.10%, 4/01/35 5,000 5,000 9,920
8 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (CONTINUED) NORTH CAROLINA 5.85% Durham County Water & Sewer, 3.10%, 12/01/15 $ 2,800 $ 2,800 Lincoln County Industrial Facility PCR Series 1994, 3.45%, 8/01/09 6,000 6,000 North Carolina Educational Facilities Bowman Grey School, 3.15%, 9/01/20 4,200 4,200 North Carolina Medical Care Moses Cone Hospital Series 1995, 3.15%, 9/01/02 4,700 4,700 17,700 NEW HAMPSHIRE 3.30% New Hampshire Health & Higher Education Series E, 3.15%, 12/01/25 10,000 10,000 NEW JERSEY 1.32% New Jersey Sports & Exposition Series C, 2.85%, 9/01/24 4,000 4,000 PUERTO RICO 0.03% Puerto Rico Highway & Transportation Series X, 2.80%, 7/01/99 100 100 TENNESSEE 0.74% Nashville and Davidson County Health and Education Facility, 3.30%, 5/01/20 2,224 2,224 TEXAS 4.23% Greater East Texas Higher Education Series A, 3.30%, 5/01/11 1,500 1,500 North Texas Higher Education Student Loan Revenue Refund, Series 1991F, 3.25%, 4/01/20 4,000 4,000 Panhandle Plains Student Loan Revenue Series A, 3.20%, 6/01/21 1,300 1,300 Red River Authority PCR, 3.10%, 7/01/11 5,000 5,000
9 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (CONTINUED) TEXAS (CONTINUED) Texas Education Authority Series 1985B, 3.10%, 12/01/25 $1,000 $ 1,000 12,800 VIRGINIA 8.56% Capital Region Airport Series 1995C, 3.05%, 7/01/23 3,000 3,000 Chesterfield County IDR Midlothian Hotel Partnership, 3.30%, 12/01/14 6,344 6,344 IDR of Hanover County Carter Machinery, 3.30%, 11/01/98 500 500 IDA of Henrico County Hermitage Project, 3.70%, 5/01/24 4,500 4,500 Loudon County IDR Falcons Landing, Series B, 3.70%, 11/01/24 300 300 Lynchburg IDA Mid-Atlantic Series G, 3.15%, 12/01/25 500 500 Peninsula Port Authority Dominion Terminal Association, 3.70%, 7/01/16 3,000 3,000 Richmond IDR Commonwealth Park, 3.35%, 11/01/07 1,364 1,364 Roanoke IDR Quibell Corporate Project, 3.30%, 9/01/15 292 292 Spotsylvania City IDA Residential Care Facilities, 3.30%, 10/01/20 4,684 4,684 Tazewell County IDR, 3.50%, 1/01/03 1,000 1,000 Virginia Beach Revenue Bond, 3.30%, 9/01/09 410 410 25,894 WISCONSIN 0.66% Village of Pleasant Prairie Muskie Enterprise Project, Series 1995, 3.35%, 5/01/15 2,000 2,000
10 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (CONTINUED) WYOMING 1.32% Sweetwater County PCR Pacific Corporation Project, 3.15%, 7/01/15 $ 4,000 $ 4,000 TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 132,063 OTHER TAX-EXEMPT SECURITIES 59.51% ALABAMA 0.92% IDB of Fairfield USX Corporation Project, Series 1995, 3.70%, 5/01/96 2,800 2,800 FLORIDA 8.82% City of Jacksonville Series A, 3.20% - 3.35%, 2/26/96 - 4/08/96 14,800 14,800 Orange County Health Facilities Series 1985, 3.25%, 2/22/96 3,400 3,400 Putnam County Development Authority Seminole Electric Series 1984, 3.30%, 6/15/96 3,000 3,000 St. Lucie County Florida Power & Light PCR, 3.75%, 3/08/96 3,000 3,000 Sunshine State Government Finance Commission Series 1986 Revenue Bond, 3.80%, 2/06/96 2,500 2,500 26,700 ILLINOIS 2.05% City of Chicago GO Series 1995A, 3.75%, 5/01/96 3,200 3,200 State of Illinois RANS, 4.50%, 5/10/96 3,000 3,005 6,205 KANSAS 1.65% Burlington Revenue Refund Bond, 3.75%, 2/13/96 5,000 5,000
11 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) OTHER TAX-EXEMPT SECURITIES (CONTINUED) KENTUCKY 0.66% Pulaski County Solid Waste Project Series B, 3.90%, 2/15/96 $ 2,000 $ 2,000 LOUISIANA 3.30% Plaquemines Port Harbor Series C, 3.80% - 3.90%, 2/14/96 - 2/16/96 10,000 10,000 MARYLAND 0.99% Baltimore County PCR Baltimore Gas & Electric, 3.40%, 3/07/96 3,000 3,000 MINNESOTA 2.20% Rochester Health Care Series C, 3.70%, 2/27/96 5,500 5,500 University of Minnesota Revenue Bond, 3.25%, 8/01/96 1,150 1,150 6,650 MISSISSIPPI 0.76% Claiborne County PCR, 3.45%, 3/08/96 2,300 2,300 NORTH CAROLINA 2.61% Wake County Industrial Facility Series 1990A, 3.80%, 2/01/96 2,900 2,900 Wake County Industrial Facility Series 1990A, 3.75%, 2/07/96 5,000 5,000 7,900 NEW JERSEY 1.12% Port Authority New York & New Jersey Series B, 3.10%, 3/12/96 1,395 1,395 State of New Jersey GO, 3.10%, 3/12/96 2,000 2,000 3,395
12 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) OTHER TAX-EXEMPT SECURITIES (CONTINUED) NEW HAMPSHIRE 0.66% New Hampshire New England Power Series 1990A, 3.90%, 2/21/96 $ 2,000 $ 2,000 NEW YORK 0.99% New York City Series 1996A, 4.50%, 2/15/96 3,000 3,001 NEVADA 1.19% Washoe County Water Facility, 3.70%, 4/10/96 3,600 3,600 SOUTH CAROLINA 3.64% York County PCR Series 1984N-3, 3.75%, 3/15/96 6,000 6,000 Beaufort County Series 1995, 4.13%, 8/15/96 5,000 5,006 11,006 TEXAS 10.52% Brazos Harbor Industrial Development Series 1986, 3.75%, 2/12/96 3,700 3,700 Harris County Health Care, 3.55%, 2/28/96 4,700 4,700 Harris County Health Care, 3.30%, 4/10/96 3,000 3,000 Houston Water & Sewer Series A, 3.20%, 4/11/96 2,500 2,500 San Antonio Electric & Gas Series A, 3.85%, 2/08/96 3,300 3,300 San Antonio Electric & Gas Series A, 3.45%, 3/11/96 3,600 3,600 State of Texas TRANS Series A, 4.75%, 3/11/96 8,000 8,033 Texas A&M University Series B, 3.55%, 2/26/96 3,000 3,000 31,833 UTAH 1.32% Emory County PCR Pacific Corporation Project, 3.50%, 2/15/96 4,000 4,000 VIRGINIA 8.18% City of Richmond RANS Series 1996A, 4.00%, 6/28/96 5,000 5,014
13 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Percent of Principal Value Net Assets Amount (Note 2) OTHER TAX-EXEMPT SECURITIES (CONTINUED) VIRGINIA (CONTINUED) Commonwealth of Virginia GO Series 1995, 3.65%, 2/12/96 $ 4,600 $ 4,600 Peninsula Port Authority, 3.55%, 7/01/16 3,135 3,135 Virginia State Housing Development Series D, 3.75%, 3/04/96 7,000 7,000 York County IDA PCR, 3.60%, 3/07/96 5,000 5,000 24,749 WEST VIRGINIA 6.61% West Virginia HDA, 3.45% - 3.70%, 2/01/96 - 3/01/96 20,000 20,000 OTHER 1.32% PNC Municash, 3.46%, 2/01/96 4,000 4,000 TOTAL OTHER TAX-EXEMPT SECURITIES 180,139 TOTAL INVESTMENTS (COST $312,202) 103.14% 312,202 OTHER ASSETS LESS LIABILITIES (3.14%) (9,517) NET ASSETS 100.00% $302,685
NOTES TO PORTFOLIOS OF INVESTMENTS (a) Floating Rate Securities -- The rates shown are the effective rates at January 31, 1996. (b) Interest rates represent annualized yield to date of maturity, except for variable rate securities described in (a). For each security, cost (for financial reporting and federal income tax purposes) and carrying value are the same. INVESTMENT ABBREVIATIONS DFA - Development Finance Authority IDB - Industrial Development Board GO - General Obligation IDR - Industrial Development Revenue HDA - Housing Development Authority PCR - Pollution Control Revenue HFA - Housing Finance Authority RANS - Revenue Anticipation Note IDA - Industrial Development Authority TRANS - Tax and Revenue Anticipation Note
SEE NOTES TO FINANCIAL STATEMENTS. 14 CASH RESOURCE TRUST STATEMENTS OF ASSETS AND LIABILITIES JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
U.S. Money Government Tax-Exempt Market Money Market Money Market Fund Fund Fund ASSETS Investments, at amortized cost (Note 2) Investment securities $471,473 $ 690,039 $ 312,202 Repurchase agreements 46,471 636,237 - Total Investments 517,944 1,326,276 312,202 Interest receivable 520 4,558 1,775 Deferred expenses (Note 2) 78 365 80 Other 302 391 190 Total assets 518,844 1,331,590 314,247 LIABILITIES Payables Dividends 1,027 2,544 331 Securities purchased - - 11,150 Accrued distribution fee (Note 3) 32 83 16 Accrued expenses and other liabilities 101 153 65 Total liabilities 1,160 2,780 11,562 NET ASSETS $517,684 $ 1,328,810 $ 302,685 Shares outstanding 517,684 1,328,863 302,688 Net asset value per share $ 1.00 $ 1.00 $ 1.00
SEE NOTES TO FINANCIAL STATEMENTS. 15 CASH RESOURCE TRUST STATEMENTS OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED) (IN THOUSANDS)
Money U.S. Government Tax-Exempt Market Money Market Money Market Fund Fund Fund INVESTMENT INCOME Interest $13,955 $36,434 $5,259 EXPENSES Distribution fee (Note 3) 908 2,386 457 Transfer agent fee (Note 3) 341 1,606 130 Management fee (Note 3) 526 1,275 305 Custodian and accounting fees 95 324 76 Shareholder reports 34 117 26 Professional fees 7 19 4 Registration fees 36 97 33 Organizational expenses 6 28 6 Directors' fees 5 8 4 Other 5 20 5 Total expenses 1,963 5,880 1,046 NET INVESTMENT INCOME 11,992 30,554 4,213 Net increase in net assets resulting from operations $11,992 $30,554 $4,213
SEE NOTES TO FINANCIAL STATEMENTS. 16 CASH RESOURCE TRUST STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS)
MONEY U.S. GOVERNMENT TAX-EXEMPT MARKET MONEY MARKET MONEY MARKET FUND FUND FUND Six Months Six Months Six Months Ended Year Ended Year Ended Year 1/31/96 Ended 1/31/96 Ended 1/31/96 Ended (Unaudited) 7/31/95 (Unaudited) 7/31/95 (Unaudited) 7/31/95 INCREASE IN NET ASSETS OPERATIONS Net investment income $ 11,992 $ 13,949 $ 30,554 $ 47,780 $ 4,213 $ 6,665 Net realized gain (loss) on investments sold - 4 - (53) - (3) Increase in net assets from operations 11,992 13,953 30,554 47,727 4,213 6,662 DISTRIBUTIONS TO SHAREHOLDERS Net investment income (11,992) (13,949) (30,554) (47,780) (4,213) (6,665) Net realized gain on investments - (4) - - - - Net decrease from distributions (11,992) (13,953) (30,554) (47,780) (4,213) (6,665) CAPITAL SHARE TRANSACTIONS (AT $1.00 PER SHARE) Net proceeds from sale of shares 1,393,241 1,715,060 2,715,867 4,322,307 611,390 1,029,842 Reinvestment of dividends 11,800 13,420 30,330 46,908 4,199 6,528 Cost of shares redeemed (1,310,014) (1,498,083) (2,634,077) (4,060,291) (579,799) (965,174) Change in net assets from capital share transactions 95,027 230,397 112,120 308,924 35,790 71,196 Net increase in net assets 95,027 230,397 112,120 308,871 35,790 71,193 NET ASSETS Beginning of period 422,657 192,260 1,216,690 907,819 266,895 195,702 End of period $ 517,684 $ 422,657 $1,328,810 $1,216,690 $ 302,685 $ 266,895
SEE NOTES TO FINANCIAL STATEMENTS. 17 CASH RESOURCE TRUST FINANCIAL HIGHLIGHTS Money
Market Fund Six Months Ended Year Period 1/31/96 Ended Ended (Unaudited) 7/31/95 7/31/94* PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 INCOME FROM INVESTMENT OPERATIONS Net investment income 0.02 0.05 0.02 DISTRIBUTIONS Net investment income (0.02) (0.05) (0.02) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 Total Return 2.55% 4.97% 1.83% Ratios / Supplemental Data Net assets, end of period (in thousands) $ 517,684 $422,657 $ 192,260 Ratio of expenses to average net assets 0.82%(a) 0.82% 0.89%(a) Ratio of expenses to average net assets excluding waivers 0.82%(a) 0.82% 0.93%(a) Ratio of net investment income to average net assets 5.00%(a) 4.96% 2.96%(a)
(a) Annualized. * For the period from December 20, 1993 (commencement of operations) to July 31, 1994. SEE NOTES TO FINANCIAL STATEMENTS. 18
U.S. Government Tax-Exempt Money Market Money Market Fund Fund Six Six Months Months Ended Year Period Ended Year Period 1/31/96 Ended Ended 1/31/96 Ended Ended (Unaudited) 7/31/95 7/31/94* (Unaudited) 7/31/95 7/31/94* $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 0.02 0.05 0.02 0.01 0.03 0.01 (0.02) (0.05) (0.02) (0.01) (0.03) (0.01) $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 2.47% 4.82% 1.82% 1.55% 3.05% 1.16% $ 1,328,810 $1,216,690 $907,819 $ 302,685 $266,895 $ 195,702 0.92%(a) 0.88% 0.80%(a) 0.75%(a) 0.72% 0.65%(a) 0.92%(a) 0.88% 0.83%(a) 0.75%(a) 0.74% 0.74%(a) 4.85%(a) 4.75% 2.91%(a) 3.03%(a) 3.01% 1.87%(a)
19 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1996 (UNAUDITED) NOTE 1: ORGANIZATION Cash Resource Trust ("Trust") was organized on June 14, 1993 and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust consists of three separate diversified funds (hereinafter each individually referred to as a "Fund" or collectively as the "Funds") at January 31, 1996 as follows: Cash Resource Money Market Fund ("Money Market Fund") Cash Resource U.S. Government Money Market Fund ("U.S. Government Fund") Cash Resource Tax-Exempt Money Market Fund ("Tax-Exempt Fund") The investment objective of each Fund is to seek current income consistent with preservation of capital and maintenance of liquidity. The assets of each Fund of the Trust are segregated and a shareholder's interest is limited to the Fund in which shares are held. NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles which required management to make estimates and assumptions that affect amounts reported herein. Although actual results could differ from these estimates, any such differences are expected to be immaterial to the net assets of the Fund. A. Valuation of Securities 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 a 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. B. Repurchase Agreements It is the policy of the Trust to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book entry system, or to have segregated within the custodian bank's vault all securities held as collateral in support of repurchase agreement investments. Additionally, procedures have been 20 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) established by the Trust to monitor, on a daily basis, the market value of each repurchase agreement's underlying securities to ensure the existence of a proper level of collateral. The Trust will only enter into repurchase agreements with banks and other recognized financial institutions such as broker/dealers which are deemed by the Trust's adviser to be creditworthy pursuant to guidelines established by the Board of Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Trust could receive less than the repurchase price on the sale of collateral securities. C. Security Transactions and Interest Income Security transactions for the Funds are accounted for on a trade date basis. Interest income is recorded on the accrual basis and includes amortization of premium and discount on investments. D. Expenses Expenses arising in connection with a Fund are allocated to that Fund. Other Trust expenses are allocated among the Funds in proportion to their relative net assets. E. Fund Share Valuation and Dividends to Shareholders Fund shares are sold and redeemed on a continual basis at net asset value. The net asset value per share (NAV) of each Fund is determined daily as of 4:00 p.m. on each day that the New York Stock Exchange is open for trading. Each Fund determines its NAV by dividing the total value of the Fund's investments and other assets, less liabilities, by the number of Fund shares outstanding. Each Fund declares a daily dividend, equal to its net investment income for that day and payable at month end. Distributions from net realized capital gains, if any, are paid annually. F. Federal Income Taxes No provision for federal income taxes has been made since it is each Fund's policy to comply with the provisions applicable to regulated investment companies under the Internal Revenue Code and to distribute to its shareholders within the allowable time limit substantially all taxable income and realized capital gains. At July 31, 1995, U.S. Government Fund for federal tax purposes, had a capital loss carryforward of approximately $54,000. Pursuant to the Code, such capital loss 21 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) carryforwards expire as follows: $1,000 in 2002 and $53,000 in 2003. G. Deferred Expenses Costs incurred by the Trust in connection with its initial share registration and organization costs were deferred by the Funds and are being amortized on a straight-line basis over a five year period through December 1998. NOTE 3: INVESTMENT MANAGEMENT AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGEMENT AGREEMENT Commonwealth Advisors, Inc. (formerly Cambridge Investment Advisors, Inc.) the Funds' investment adviser (Investment Adviser) provides investment advisory services to each of the Funds. Commonwealth Investment Counsel, Inc. ("Commonwealth"), an affiliate of the Investment Adviser, serves as sub-adviser to each of the Funds, pursuant to a sub-advisory agreement among the Investment Adviser, Commonwealth and the Trust. Commonwealth furnishes a continuing investment program for each of the Funds and makes investment decisions on their behalf. The Investment Adviser and Commonwealth are wholly-owned subsidiaries of Mentor Investment Group, Inc. ("Mentor") (formerly Investment Management Group, Inc.), which is in turn a wholly-owned subsidiary of Wheat First Butcher Singer, Inc. ("Wheat"). Each Fund pays management fees to the Investment Adviser monthly at the following annual rates, expressed as a percentage of average daily net assets: 0.22% of the first $500 million of each Fund's average net assets; 0.20% of the next $500 million; 0.175% of the next $1 billion; 0.16% of the next $1 billion; and 0.15% of any amounts over $3 billion. The Investment Adviser in turn pays fees from its own assets to Commonwealth monthly at the following annual rates (based on the assets of each Fund taken separately): 0.17% of the first $500 million of a Fund's average net assets; 0.15% of the next $500 million; 0.125% of the next $1 billion; 0.11% of the next $1 billion; and 0.10% of any amounts over $3 billion. The Investment Adviser may from time to time voluntarily waive some or all of its investment advisory fee and may terminate any such voluntary waiver at any time at its sole discretion. For the six months ended January 31, 1996, the Investment Adviser and sub-adviser earned the following advisory fees: 22 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Adviser Adviser Fee Sub-Adviser Fee Voluntarily Fee Earned Waived Earned Money Market Fund $ 525,631 $ - $ 404,288 U.S. Government Fund 1,274,963 - 955,616 Tax-Exempt Fund 304,628 - 234,191
In addition, the Funds provide direct reimbursement to Mentor for certain accounting and operation related costs not covered under the Investment Management Agreement. For the six months ended January 31, 1996, the Money Market Fund, U.S. Government Fund and Tax-Exempt Fund paid $10,634, $28,058 and $6,620, respectively to Mentor for these direct reimbursements. DISTRIBUTION AGREEMENT Under a Distribution Agreement, Mentor Distributors, Inc. ("Mentor Distributors") (formerly, Cambridge Distributors, Inc.) a wholly-owned subsidiary of Mentor, was appointed Distributor for each Fund. To compensate Mentor Distributors for the services it provides and for the expenses it incurs under the Distribution Agreement, the Funds have adopted a Plan of Distribution pursuant to Rule 12b-1 under the Investment Company Act of 1940, under which they pay a distribution fee, which is accrued daily and paid monthly at the annual rate of 0.38% of the Fund's average daily net assets for the Money Market Fund and U.S. Government Fund and 0.33% of the Fund's average daily net assets for the Tax-Exempt Fund. TRANSFER AGENT AGREEMENT Under a Transfer Agency Agreement, Investors Fiduciary Trust Company ("IFTC") serves as Transfer Agent and Dividend Disbursing Agent for each Fund. IFTC in turn compensates Wheat (from IFTC's own assets) for related services provided by Wheat directly to its clients. For the six months ended January 31, 1996, Wheat earned fees of $341,357, $1,605,046 and $129,043 respectively from the Money Market Fund, U.S. Government Fund and Tax-Exempt Fund. 23 SHAREHOLDER INFORMATION TRUSTEES Daniel J. Ludeman, TRUSTEE & CHAIRMAN Chairman and Chief Executive Officer Mentor Investment Group, Inc. Arnold H. Dreyfuss, TRUSTEE former Chairman and Chief Executive Officer Hamilton Beach/Proctor-Silex, Inc. Thomas F. Keller, TRUSTEE Dean, Fuqua School of Business Duke University Louis W. Moelchert, Jr., TRUSTEE Vice President for Business & Finance University of Richmond Stanley F. Pauley, Jr., TRUSTEE Chairman and Chief Executive Officer E. R. Carpenter Company, Incorporated Troy A. Peery, Jr., TRUSTEE President Heilig-Meyers Company Peter J. Quinn, Jr., TRUSTEE Managing Director Mentor Investment Group, Inc. OFFICERS Paul F. Costello, PRESIDENT Managing Director Mentor Investment Group, Inc. Terry L. Perkins, TREASURER Vice President Mentor Investment Group, Inc. John M. Ivan, SECRETARY Managing Director/Assistant General Counsel Wheat First Butcher Singer, Inc. Michael A. Wade, ASSISTANT TREASURER Associate Vice President Mentor Investment Group, Inc. This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus, which contains facts concerning the objective, policies, management fees, and expenses of the Trust and further information. CASH RESOURCE TRUST 901 East Byrd Street Richmond, VA 23219 [Mentor Logo] CASH RESOURCE TRUST SEMI-ANNUAL REPORT JANUARY 31, 1996 [Mentor Logo Background] -----END PRIVACY-ENHANCED MESSAGE-----