-----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, UxuP2Y6qGVjp5uI5csb41fMycDwMFQAC39vpO3OqbaL/UuqYkkQwxxR0QvlyvA7J yoqO8A0wn+B1Vx7d9m9Bqw== 0000916641-97-000963.txt : 19970926 0000916641-97-000963.hdr.sgml : 19970926 ACCESSION NUMBER: 0000916641-97-000963 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970731 FILED AS OF DATE: 19970925 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: SEC FILE NUMBER: 811-07862 FILM NUMBER: 97685113 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 N-30D CASH RESOURCE TRUST SHAREHOLDER INFORMATION TRUSTEES Daniel J. Ludeman, TRUSTEE & CHAIRMAN Chairman and Chief Executive Officer Mentor Investment Group, LLC Arnold H. Dreyfuss, TRUSTEE former Chairman and Chief Executive Officer Hamilton Beach/Proctor-Silex, Inc. Thomas F. Keller, TRUSTEE former 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 Carpenter Company Troy A. Peery, Jr., TRUSTEE President Heilig-Meyers Company Peter J. Quinn, Jr., TRUSTEE Managing Director Mentor Investment Group, LLC OFFICERS Paul F. Costello, PRESIDENT Managing Director Mentor Investment Group, LLC Terry L. Perkins, TREASURER Senior Vice President Mentor Investment Group, LLC John M. Ivan, SECRETARY Managing Director/Assistant General Counsel Wheat First Butcher Singer, Inc. Michael A. Wade, ASSISTANT TREASURER Vice President Mentor Investment Group, LLC 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 (800) 382-0016 CASH RESOURCE TRUST ---------------------- ANNUAL REPORT ---------------------- July 31, 1997 [LOGO] CASH RESOURCE TRUST ANNUAL REPORT JULY 31, 1997 - -------------------------------------------------------------------------------- MESSAGE FROM THE CHAIRMAN AND PRESIDENT It is our privilege to send you the Cash Resource Trust Annual Report for the period ended July 31, 1997.* The Cash Resource Trust ("CRT") is part of a diversified family of funds offered by Mentor Investment Group, LLC,** an investment advisory firm with more than $11 billion under management. Mentor provides investment management in seven different styles to a broad spectrum of investors. As you know, the CRT money market funds ("the Funds") are invested to seek as high a rate of current income -- or, in the case of the Cash Resource tax-exempt money market funds, as high a rate of current income exempt from federal income tax and/or state income tax -- as the investment advisor believes to be consistent with preservation of capital and maintenance of liquidity. The Funds are managed according to a conservative policy that places strong emphasis on credit research. We carefully review each investment and do not sacrifice quality to attain a higher yield. While the managers seek to invest the Funds in accordance with this process, there is no guarantee that it will result in investment success. An investment in the Funds is neither insured nor guaranteed by the U.S. Government, and there can be no assurance that the Funds will maintain a stable net asset value of $1.00 per share. In the pages that follow you will find financial statements for the five CRT Funds, in addition to commentary from members of the management team regarding their investment strategy and outlook. Thank you for your continuing investment in the Funds. Sincerely, /s/ Daniel J. Ludeman /s/ Paul F. Costello - --------------------- -------------------- Daniel J. Ludeman Paul F. Costello CHAIRMAN PRESIDENT *FOR MORE INFORMATION AND PROSPECTUSES FOR THE CASH RESOURCE TRUST, PLEASE CALL US, (800)382-0016, OR CONTACT YOUR CONSULTANT. A PROSPECTUS CONTAINS COMPLETE INFORMATION ABOUT FEES, SALES CHARGES, AND EXPENSES. PLEASE READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY. **MENTOR INVESTMENT ADVISORS, LLC/DBA MENTOR INVESTMENT GROUP, LLC 1 CASH RESOURCE TRUST ANNUAL REPORT MANAGERS' OVERVIEW JULY 31, 1997 - -------------------------------------------------------------------------------- The five portfolios of the Cash Resource Trust (CRT), managed by Mentor Investment Group, 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 income tax. * The CRT California Tax-Exempt Money Market Fund is structured to generate income exempt from both federal and California State income tax. * The CRT New York Tax-Exempt Money Market Fund is structured to generate income exempt from both federal and New York State income tax. For well over a year now, we have walked what could be described as almost the perfect economic tightrope -- steady growth, low inflation and neutral Fed policy. The only exception came in the first quarter of this year when a spurt in activity sent GDP up a strong 4.9%, prompting the Fed to make a "pre-emptive strike" against inflation by raising rates 0.25%. It was widely anticipated that inflation would soon appear and that additional moves would be forthcoming. That, however, has been the Fed's only move in the past 18 months. As April progressed into May and then June, data became more benign. The GDP slowed to the 3.6% area and inflation, as measured by the CPI and PPI, remained almost nonexistent.+ This raised the possibility that the strong first quarter may have resulted from the mild winter experienced by most of the country, and that this strength was simply borrowed from the second quarter, resulting in off-setting weakness. The mild numbers prompted the Fed, rather than to raise rates further, to vote "no change" at both its May and July meetings. Bond markets rallied and the yield curve became very flat, as is almost always the case when there is little prospect of Fed action in the near future. The spread between three-month and one-year bills dropped to 0.20%, the smallest we have seen in quite a long time. But it now appears that we may be poised to go full cycle. Beginning in late July, data began to appear which 2 CASH RESOURCE TRUST ANNUAL REPORT MANAGERS' OVERVIEW (CONTINUED) JULY 31, 1997 - -------------------------------------------------------------------------------- suggest another pickup in growth, perhaps to a more normal rate after the above-trend first quarter and neutral second quarter. Retail sales, consumer confidence, payroll gains and personal income were among the indicators that were coming in above expectations. The result was that the market closed the period on a weak note. This weakness would have been greater except for the fact that inflation indications remain good. It is our feeling, however, that if this emerging pattern of faster growth is confirmed by additional data, speculation of an eventual Fed increase will gradually creep back into the market and we will see further weakness. But no matter the course of the market, we pledge continued 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 + THE GROSS DOMESTIC PRODUCT (GDP) IS A MEASURE OF THE MARKET VALUE OF GOODS AND SERVICES PRODUCED BY LABOR AND PROPERTY IN THE U.S. THE CONSUMER PRICE INDEX (CPI) IS CALCULATED BY THE BUREAU OF LABOR STATISTICS BY ESTABLISHING THE PRICE OF A FIXED BASKET OF GOODS AND SERVICES, WHICH ARE SELECTED BECAUSE OF THEIR DIRECT IMPACT ON AVERAGE CITIZENS. INCREASES IN THE COSTS OF SUCH ITEMS INDICATE A RISE IN THE INFLATION RATE. THE PRODUCER PRICE INDEX IS A MEASURE OF CHANGE IN WHOLESALE PRICES (FORMERLY CALLED THE WHOLESALE PRICE INDEX), AS RELEASED MONTHLY BY THE U.S. BUREAU OF LABOR STATISTICS. ++ WHILE THE MANAGERS SEEK TO INVEST THE FUNDS IN ACCORDANCE WITH THESE HIGH STANDARDS, THERE IS NO GUARANTEE OF INVESTMENT SUCCESS. AN INVESTMENT IN THE FUNDS IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE FUNDS WILL MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. THE MENTOR MISSION STATEMENT Our mission is to provide professional investment management services through a firm that is second to none in the quality of its investment process, the skill and training of its professionals, and the commitment, shared by all its associates, to deliver the highest level of service and ethical behavior to clients. 3 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------------------ ASSET-BACKED SECURITIES 0.08% Capital Equipment Receiving Trust, 5.60%, 10/15/97 $ 2,477 $ 2,477 - ------------------------------------------------------------------------------------------------------------------ TOTAL ASSET-BACKED SECURITIES 2,477 - ------------------------------------------------------------------------------------------------------------------ BANK NOTES 12.07% Bank of America, 5.52%, 8/01/97 50,000 50,000 Bank of America, 5.97%, 3/20/98 30,000 29,993 Bank of America, 6.30%, 4/29/98 20,000 19,996 Greenwood Trust Company, 5.69%, 8/26/97 50,000 50,000 Harris Trust, 5.55%, 8/07/97 100,000 100,000 Mellon Bank, 5.60%, 10/06/97 30,000 30,000 Nations Bank, 5.66%, 9/03/97 50,000 50,000 Nations Bank, 5.63%, 9/19/97 25,000 25,000 - ------------------------------------------------------------------------------------------------------------------ TOTAL BANK NOTES 354,989 - ------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT 7.65% Bank of Montreal, 5.52%, 8/18/97 50,000 50,000 Mellon Bank, 5.86%, 11/10/97 50,000 50,000 Regions Bank, 5.50%, 8/04/97 25,000 25,000 Societe Generale, Inc., 5.92%, 9/17/97 80,000 80,031 Societe Generale, Inc., 6.00%, 3/23/98 20,000 19,997 - ------------------------------------------------------------------------------------------------------------------ TOTAL CERTIFICATES OF DEPOSIT 225,028 - ------------------------------------------------------------------------------------------------------------------ COMMERCIAL PAPER 60.94% ASSET-BACKED SECURITIES 3.39% Greenwich Funding Corporation, 5.55%, 8/15/97(a) 100,000 99,784 - ------------------------------------------------------------------------------------------------------------------ AUTO RENT & LEASE 0.73% Vehicle Services of America Ltd., 5.62%, 8/05/97 21,500 21,487 - ------------------------------------------------------------------------------------------------------------------ COMMERCIAL BANKS 24.61% ABN-Amro North America Finance, Inc., 5.52%, 11/10/97 50,000 49,226
4 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------------------ COMMERCIAL PAPER (CONTINUED) COMMERCIAL BANKS (CONTINUED) ABN-Amro North America Finance, Inc., 5.50%, 12/08/97 $ 30,000 $ 29,409 Abbey National, North America, 5.28%, 8/21/97 50,000 49,853 Abbey National, North America, 5.52%, 10/08/97 50,000 49,479 Banc One, 5.50%, 8/08/97 50,000 49,947 Bank of Montreal, 5.50%, 8/27/97 50,000 49,802 Bank of New York, 5.50%, 9/02/97 50,000 49,756 Bankers Trust Company, 5.57%, 1/09/98-1/16/98 100,495 97,942 Credit Suisse, 5.50%, 11/20/97 15,000 14,746 CS First Boston, 5.54%, 10/09/97 50,000 49,469 CS First Boston, 5.68%, 10/16/97 35,000 34,580 First Union Bank, 5.58%, 8/20/97 50,000 49,853 Kredietbank N.A. Finance Corporation, 5.57%, 8/04/97 80,000 79,963 Mellon Financial Company, 5.59%, 8/04/97 20,000 19,991 JP Morgan, 5.50%, 8/18/97 50,000 49,870 - ------------------------------------------------------------------------------------------------------------------ Total Commercial Banks 723,886 - ------------------------------------------------------------------------------------------------------------------ COMPUTER AND OFFICE EQUIPMENT 2.37% IBM Credit Corporation, 5.48%, 8/22/97 50,000 49,840 IBM Credit Corporation, 5.68%, 7/06/98 20,000 19,984 - ------------------------------------------------------------------------------------------------------------------ Total Computer and Office Equipment 69,824 - ------------------------------------------------------------------------------------------------------------------ ELECTRIC SERVICES 0.62% Rincon Securities, Inc., 5.50%, 8/25/97 8,100 8,070 Rincon Securities, Inc., 5.52%, 10/27/97 10,250 10,113 - ------------------------------------------------------------------------------------------------------------------ Total Electric Services 18,183 - ------------------------------------------------------------------------------------------------------------------ FINANCIAL SERVICES 6.10% American Express, 5.54%, 8/04/97 50,000 49,977 American Express, 5.50%, 8/08/97 50,000 49,946 Glencore Finance Ltd., 5.45%, 8/29/97 30,000 29,873
5 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------------------ COMMERCIAL PAPER (CONTINUED) FINANCIAL SERVICES (CONTINUED) Glencore Finance Ltd., 5.51%, 9/19/97 $ 50,000 $ 49,625 - ------------------------------------------------------------------------------------------------------------------ Total Financial Services 179,421 - ------------------------------------------------------------------------------------------------------------------ HEALTH CARE 1.24% Carolina Medi-Plan, Inc., 5.61%, 6/01/22 (b) 30,000 30,000 Tax Adjustable DMD Health Care, 5.70%, 11/15/13 (b) 6,550 6,550 - ------------------------------------------------------------------------------------------------------------------ Total Health Care 36,550 - ------------------------------------------------------------------------------------------------------------------ MOTOR VEHICLES AND CAR BODIES 1.68% Ford Motor Credit, 5.57%, 10/06/97 50,000 49,489 - ------------------------------------------------------------------------------------------------------------------ RENTAL & LEASING 3.38% General Electric Capital Corporation, 5.49%, 8/18/97 50,000 49,870 General Electric Capital Corporation, 5.38%, 9/25/97 50,000 49,589 - ------------------------------------------------------------------------------------------------------------------ Total Rental & Leasing 99,459 - ------------------------------------------------------------------------------------------------------------------ SECURITY BROKERS & DEALERS 16.82% Bear Stearns Companies, Inc., 5.70%, 11/12/97 100,000 98,369 Goldman Sachs Group, 5.57%, 9/12/97 25,000 24,838 Goldman Sachs Group, 5.62%, 9/12/97 75,000 74,508 International Nederlanden, 5.51%, 8/11/97-11/12/97 77,900 77,383 International Nederlanden, 5.58%, 8/19/97 22,100 22,038 Merrill Lynch & Company, Inc., 5.57%, 9/30/97-4/14/98 100,000 97,556 Smith Barney, 5.55%, 8/01/97-8/18/97 100,000 99,869 - ------------------------------------------------------------------------------------------------------------------ Total Security Brokers & Dealers 494,561 - ------------------------------------------------------------------------------------------------------------------ TOTAL COMMERCIAL PAPER 1,792,644 - ------------------------------------------------------------------------------------------------------------------
6 CASH RESOURCE TRUST MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------------------ CORPORATE OBLIGATIONS 0.47% Evans Street Properties, 5.57%, 1/01/08 (b) $ 3,700 $ 3,700 Walker & Associates, 5.57%, 7/01/11 (b) 10,000 10,000 - ------------------------------------------------------------------------------------------------------------------ TOTAL CORPORATE OBLIGATIONS 13,700 - ------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT AGENCIES 4.25% Federal Home Loan Bank, 5.45%, 12/10/97 (b) 100,000 99,986 Student Loan Marketing Association, 5.43%-5.46%, 11/24/97-2/22/99 (b) 25,000 24,999 - ------------------------------------------------------------------------------------------------------------------ TOTAL U.S. GOVERNMENT AGENCIES 124,985 - ------------------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENTS 14.21% Goldman, Sachs & Company Dated 7/31/97, 5.82%, due 8/01/97, collateralized by various U.S. Government Agency Securities with total original face value of $489,310, 8/01/98-7/01/27, 5.50%-9.75%; market value $324,350 317,990 317,990 Lehman Brothers, Inc. Dated 7/31/97, 5.81%, due 8/01/97, collateralized by $45,809 Federal Home Loan Mortgage Corporation, 6.50%-7.50%, 11/01/25-6/01/27; $55,324 Federal National Mortgage Association 7.50%-9.00%, 1/01/08-6/01/27; market value $102,773 100,000 100,000 - ------------------------------------------------------------------------------------------------------------------ TOTAL REPURCHASE AGREEMENTS 417,990 - ------------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS (COST $2,931,813) (C) 99.67% 2,931,813 - ------------------------------------------------------------------------------------------------------------------ OTHER ASSETS LESS LIABILITIES 0.33% 9,792 - ------------------------------------------------------------------------------------------------------------------ NET ASSETS 100.00% $2,941,605 - ------------------------------------------------------------------------------------------------------------------
SEE NOTES TO PORTFOLIOS OF INVESTMENTS. 7 CASH RESOURCE TRUST U.S. GOVERNMENT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - --------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCIES 53.93% Federal Home Loan Bank 5.25%-5.46%, 8/21/97-5/28/98 $ 178,550 $ 177,445 5.45%-5.46%, 12/10/97-5/28/97 (b) 200,000 199,841 Federal Home Loan Mortgage Corporation 5.43%-5.50%, 8/04/97-9/26/97 472,109 469,527 Federal National Mortgage Association 5.30%-5.71%, 9/08/97-5/22/98 392,285 390,256 5.54%-5.62%, 1/15/98-5/21/98 (b) 165,000 164,947 Student Loan Marketing Association 5.23%-5.47%, 10/14/97-2/08/99 (b) 172,000 171,992 - --------------------------------------------------------------------------------------------------------------- TOTAL U.S. GOVERNMENT AGENCIES 1,574,008 - --------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS 46.18% Dean Witter Dated 7/31/97, 5.82%, due 8/01/97, collateralized by various Government National Mortgage Association Securities with total original face value of $228,439, 5.00%-10.50%, 1/01/00-7/20/27; market value $145,212 140,000 140,000 First Boston Dated 7/31/97, 5.81%, due 8/01/97, collateralized by $102,065 Federal Home Loan Mortgage Corporation, 7.00%, 7/01/27; market value $102,002 100,000 100,000 First Boston (d) Dated 7/21/97, 5.51%, due 8/21/97, collateralized by $257,171 Federal Home Loan Mortgage Corporation, 7.00%, 11/01/26; market value $255,001 250,000 250,000
8 CASH RESOURCE TRUST U.S. GOVERNMENT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - --------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (CONTINUED) First Union Corporation Dated 7/31/97, 5.82%, due 8/01/97, collateralized by $3,816 U.S. Treasury Note, 6.13%, 3/31/98; $39,547 Federal Home Loan Mortgage Corporation, 6.50%-7.00%, 12/1/09-1/01/27; $59,740 Federal National Mortgage Association, 5.50%-7.00%, 1/1/00-12/01/09; market value $102,082 $ 100,000 $ 100,000 Goldman, Sachs & Company Dated 7/31/97, 5.82%, due 8/01/97, collateralized by various U.S. Government Agency Securities with total original face value $1,583,855, 9/29/99-6/01/27, 5.50%-16.25%; market value $487,616 478,054 478,054 Lehman Brothers, Inc. Dated 7/31/97, 5.81%, due 8/01/97, collateralized by $18,776 Federal Home Loan Mortgage Corporation, 7.50%, 7/01/27; $121,227 Federal National Mortgage Association, 7.00%-9.50%, 5/01/12-7/01/27; market value $143,615 140,000 140,000 Merrill Lynch & Company, Inc. Dated 7/31/97, 5.82%, due 8/01/97, collateralized by $144,016 Government National Mortgage Association, 7.00%, 11/15/26; market value $142,800 140,000 140,000 - --------------------------------------------------------------------------------------------------------------- TOTAL REPURCHASE AGREEMENTS 1,348,054 - --------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $2,922,062) (c) 100.11% 2,922,062 - --------------------------------------------------------------------------------------------------------------- OTHER ASSETS LESS LIABILITIES (0.11%) (3,351) - --------------------------------------------------------------------------------------------------------------- NET ASSETS 100.00% $2,918,711 - ---------------------------------------------------------------------------------------------------------------
SEE NOTES TO PORTFOLIOS OF INVESTMENTS. 9 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) 55.03% ALABAMA 2.74% Montgomery Baptist Medical Center (VHA Alabama, Inc.) Series B, 3.60%, 12/01/30 $ 5,400 $ 5,400 University of Alabama Board of Trustees Hospital Revenue, 3.65%, 10/01/07 3,600 3,600 University of Alabama Board of Trustees Hospital Revenue Series 1993B, 3.70%, 10/01/13 11,400 11,400 - ------------------------------------------------------------------------------------------------------- 20,400 - ------------------------------------------------------------------------------------------------------- ARIZONA 3.46% Apache County IDA Tucson Electric Power Company Project Series A, 3.65%, 6/15/20 10,000 10,000 Arizona Health Facility Authority Pooled Loan Program, 3.65%, 10/01/15 5,000 5,000 Pima Arizona IDA (Tucson Retirement Center), 3.60%, 1/01/09 8,300 8,300 Pinal County Arizona IDA (Newmont), 3.70%, 12/01/09 2,400 2,400 - ------------------------------------------------------------------------------------------------------- 25,700 - ------------------------------------------------------------------------------------------------------- CALIFORNIA 0.13% Chula Vista IDRB San Diego Gas & Electric, 3.60%, 12/01/21 1,000 1,000 - ------------------------------------------------------------------------------------------------------- COLORADO 0.75% Denver City and County MFHB Seasons Apartments Project, 3.70%, 10/01/06 5,600 5,600 - ------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA 1.07% District of Columbia Health Facility (Army Distaff Foundation), 3.70%, 2/01/21 7,965 7,965 - ------------------------------------------------------------------------------------------------------- GEORGIA 1.09% Burke County PCRB (Oglethorpe Power Corporation) Series A, 3.60%, 1/01/19 5,000 5,000 Burke County PCRB (Oglethorpe Power Corporation) Series A, 3.60%, 1/01/16 3,100 3,100 - ------------------------------------------------------------------------------------------------------- 8,100 - -------------------------------------------------------------------------------------------------------
10 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) (CONTINUED) IOWA 0.67% Iowa Student Loan Revenue Bond Series B, 3.70%, 12/01/13 $ 5,000 $ 5,000 - ------------------------------------------------------------------------------------------------------- IDAHO 0.85% Nez Perce County PCRB, (Potlatch) Series 1984, 3.60%, 12/01/14 6,300 6,300 - ------------------------------------------------------------------------------------------------------- ILLINOIS 4.30% Chicago (O'Hare International Airport) Series 1988B, 3.70%, 1/01/18 7,700 7,700 Chicago (O'Hare International Airport) Series 1994B, 3.75%, 1/01/18 2,000 2,000 Illinois DFA (Grayhill, Inc. Project) IDRB, 3.80%, 2/01/05 2,800 2,800 Illinois DFA (Flinn Scientific Project), 3.80%, 10/01/15 4,760 4,760 Illinois Student Assistance Loan Revenue Bond Series A, 3.75%, 3/01/06 14,700 14,700 - ------------------------------------------------------------------------------------------------------- 31,960 - ------------------------------------------------------------------------------------------------------- INDIANA 2.53% Fort Wayne Hospital Authority (Parkview Memorial Hospital) Series B, 3.65%, 1/01/16 3,600 3,600 Fort Wayne Hospital Authority (Parkview Memorial Hospital) Series D, 3.65%, 1/01/16 5,150 5,150 Indiana Health Facility Finance Authority (Deaconess Hospital), 3.65%, 1/01/22 10,100 10,100 - ------------------------------------------------------------------------------------------------------- 18,850 - ------------------------------------------------------------------------------------------------------- KENTUCKY 0.33% Kentucky Higher Education Student Loan Series 1996 A, 3.70%, 6/01/26 2,500 2,500 - -------------------------------------------------------------------------------------------------------
11 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) (CONTINUED) LOUISIANA 4.68% Louisiana PFA Hospital Revenue (Willis- Knighton Medical Project), 3.60%, 9/01/23 $13,400 $ 13,400 New Orleans Aviation Revenue Refund Series A, 3.55%, 8/05/15 9,900 9,900 St. James Parish PCRB (Occidental Petroleum), 3.65%, 10/01/18 11,500 11,500 - ------------------------------------------------------------------------------------------------------- 34,800 - ------------------------------------------------------------------------------------------------------- MASSACHUSETTS 0.62% Massachusetts State Independent Financial Agency (Whitehead Institutional Biomedical Research), 3.55%, 7/01/26 4,600 4,600 - ------------------------------------------------------------------------------------------------------- MARYLAND 1.74% Anne Arundel County (Oakland Hills Project), 3.70%, 5/15/15 2,052 2,052 Howard County Revenue Bond (Harmony Hall, Inc. Project), 3.70%, 10/01/10 2,868 2,868 Maryland State Health & Higher Education, Pooled Loan Program Series B, 3.60%, 4/01/35 8,000 8,000 - ------------------------------------------------------------------------------------------------------- 12,920 - ------------------------------------------------------------------------------------------------------- NORTH CAROLINA 2.56% Durham Water & Sewer Utility System Revenue, 3.60%, 12/01/15 4,800 4,800 Lincoln County Industrial Facility PCRB (Barre- National, Inc.) Series 1994, 3.85%, 8/01/09 5,500 5,500 North Carolina Education Facilities (Duke University Program) Series A, 3.55%, 12/01/17 3,000 3,000 North Carolina Education Facilities (Bowman Grey School Medical), 3.65%, 9/01/20 4,200 4,200 North Carolina Medical Care, (Duke University Hospital) Series A, 3.55%, 6/01/23 1,500 1,500 - ------------------------------------------------------------------------------------------------------- 19,000 - -------------------------------------------------------------------------------------------------------
12 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) (CONTINUED) NEW HAMPSHIRE 1.71% New Hampshire Health and Higher Education (VHA New England) Series B, D, & G, 3.65%, 12/01/25 $12,725 $ 12,725 - ------------------------------------------------------------------------------------------------------- NEW MEXICO 0.28% Albuquerque Gross Receipts Lodgers Tax Series A, 3.65%, 7/01/22 2,050 2,050 - ------------------------------------------------------------------------------------------------------- NEW YORK 0.67% New York City Health & Hospital, Health System Bonds Series 1997 A, 3.50%, 2/15/26 5,000 5,000 - ------------------------------------------------------------------------------------------------------- OHIO 0.81% Ohio State Air Quality Authority (IMG Funding Limited Partnership) Series A, 3.65%, 4/01/28 6,000 6,000 - ------------------------------------------------------------------------------------------------------- PENNSYLVANIA 1.33% Sayre Health Care Facility (VHA Capital Finance Project) Series I, 3.60%, 12/01/20 9,900 9,900 - ------------------------------------------------------------------------------------------------------- SOUTH CAROLINA 2.82% Piedmont Municipal Power Agency Electric Revenue Series C, 3.60%, 1/01/22 4,000 4,000 South Carolina Jobs (Presbyterian Home of South Carolina Foothills) Series 1996, 3.65%, 12/01/21 9,250 9,250 South Carolina Jobs EDA Hospital Revenue (Tuomay Regional Medical Center) Series B, 3.65%, 11/01/25 7,700 7,700 - ------------------------------------------------------------------------------------------------------- 20,950 - ------------------------------------------------------------------------------------------------------- TENNESSEE 1.70% Metropolitan Government of Nashville and Davidson County Health and Education Facility, (D. Lipscomb University), 3.70%, 5/01/20 4,615 4,615 State of Tennessee GO BANS Series 1997A, 3.60%, 7/02/11 8,000 8,000 - ------------------------------------------------------------------------------------------------------- 12,615 - -------------------------------------------------------------------------------------------------------
13 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) (CONTINUED) TEXAS 9.33% Brazos River Harbor Navigation District (Dow Chemical Company Project) Series 1996, 3.95%, 4/01/26 $ 5,500 $ 5,500 Calhoun County IDRB (Formosa Plastics Corporation Project), 3.70%, 11/01/15 28,500 28,500 Gulf Coast Waste Disposal (Amoco Oil Company), 3.80%, 5/01/24 7,400 7,400 Matagorda County Navigation District No. 1 Revenue (Houston Light & Power Company), 3.75%, 11/01/28 12,700 12,700 Red River Authority Texas PCRB (Southwestern Public Service), 3.65%, 7/01/16 5,000 5,000 Texas HFA (North Texas Pooled Health) Series 1985B, 3.70%, 8/01/25 10,300 10,300 - ------------------------------------------------------------------------------------------------------- 69,400 - ------------------------------------------------------------------------------------------------------- VIRGINIA 6.85% Arlington County (Ballston Public Parking), 3.70%, 8/01/17 3,450 3,450 Botetourt County IDRB (Emkay Holdings LLC Project), 3.65%, 10/01/05 2,700 2,700 Capital Regional Airport Commission (Richmond International Airport Project) Series 1995C, 3.65%, 7/01/23 4,000 4,000 Hampton Roads Regional Jail Authority Regional Jail Facility Series 1996B, 3.60%, 7/01/16 6,500 6,500 Hanover County IDRB (Carter Machinery), 3.70%, 11/01/98 500 500 Louisa County IDRB Pooled Financing Virginia Municipal Bond Fund, 3.70%, 1/01/20 7,500 7,500 Lynchburg IDA (VHA Mid-Atlantic) Series G, 3.65%, 12/01/25 500 500 Newport News MFHB (Newport- Oxford Project), 3.75%, 11/01/06 9,700 9,700 Peninsula Port Authority Port Facility (Shell), 3.75%, 12/01/05 5,500 5,500 Richmond Public Utilities, Revenue Notes Series A, 3.75%, 6/30/01 5,000 5,000
14 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) (CONTINUED) VIRGINIA (CONTINUED) Spotsylvania City IDA Residential Care Facilities (Chancellor Village Project), 3.70%, 10/01/20 $ 4,684 $ 4,684 Tazewell County IDRB (Coal Fillers, Inc.), 3.85%, 1/01/03 900 900 - ------------------------------------------------------------------------------------------------------- 50,934 - ------------------------------------------------------------------------------------------------------- WASHINGTON 0.74% Port of Seattle Washington Sub-Lien Revenue Bonds Series 1997, 3.65%, 9/01/22 5,500 5,500 - ------------------------------------------------------------------------------------------------------- WEST VIRGINIA 0.73% West Virginia State Hospital (VHA Midatlantic) Series G, 3.70%, 12/01/25 5,400 5,400 - ------------------------------------------------------------------------------------------------------- WYOMING 0.54% Sweetwater County PCRB (Pacific Corporation Project) Series A, 3.65%, 7/01/15 4,000 4,000 - ------------------------------------------------------------------------------------------------------- TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 409,169 - ------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES 42.88% CALIFORNIA 2.98% Butte County Office of Education TRANS, 4.50%, 7/31/98 10,000 10,060 Los Angeles County TRANS Series A, 4.50%, 6/30/98 12,000 12,069 - ------------------------------------------------------------------------------------------------------- 22,129 - ------------------------------------------------------------------------------------------------------- FLORIDA 0.94% Putnam County Development Authority (Seminole Electric) Series 1984, 3.60%, 12/15/97 7,000 7,000 - -------------------------------------------------------------------------------------------------------
15 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES (CONTINUED) ILLINOIS 2.56% Chicago Illinois GO Tender Note, 3.55%, 10/31/97 $19,000 $ 19,000 - ------------------------------------------------------------------------------------------------------- INDIANA 1.08% Jasper County PCRB (Northern Indiana Public Services) Series D, 3.70%, 8/11/97 8,000 8,000 - ------------------------------------------------------------------------------------------------------- KANSAS 0.13% Burlington PCRB (Kansas City Power & Light) Series 1987A, 3.65%, 8/11/97 1,000 1,000 - ------------------------------------------------------------------------------------------------------- KENTUCKY 1.06% Pulaski County Solid Waste Disposal Project (East Kentucky Power) Series B, 3.55%, 8/15/97 7,900 7,900 - ------------------------------------------------------------------------------------------------------- LOUISIANA 1.68% Plaquemines Port Harbor and Terminal (Electro Coal Transfer) Series C, 3.80%, 8/01/97 6,500 6,500 Parish of West Baton Rouge Industrial District No. 3 (Dow Chemical) Series 1985, 3.75%, 10/22/97 6,000 6,000 - ------------------------------------------------------------------------------------------------------- 12,500 - ------------------------------------------------------------------------------------------------------- MASSACHUSETTS 0.67% Massachusetts Port Authority TECP Series 1996, 3.80%, 10/10/97 5,000 5,000 - ------------------------------------------------------------------------------------------------------- MARYLAND 0.54% Baltimore County Metropolitan District TECP Series 1995, 3.50%, 8/06/97 4,000 4,000 - -------------------------------------------------------------------------------------------------------
16 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES (CONTINUED) MICHIGAN 1.76% Michigan Municipal Bond Authority Series 1996D, 4.50%, 9/19/97 $ 3,000 $ 3,002 Michigan Municipal Bond Authority Series 1997B, 4.50%, 7/02/98 10,000 10,062 - ------------------------------------------------------------------------------------------------------- 13,064 - ------------------------------------------------------------------------------------------------------- NEW JERSEY 0.78% Parsippany-Troy Hills Township BANS, 4.25%, 10/31/97 5,770 5,778 - ------------------------------------------------------------------------------------------------------- NEW YORK 0.73% Nassau County BANS Series A, 4.25%, 8/15/97 5,400 5,401 - ------------------------------------------------------------------------------------------------------- NORTH CAROLINA 2.21% North Carolina Eastern Municipal Power Agency Series B, 3.80%, 8/12/97 10,000 10,000 North Carolina Municipal Power Agency No. 1 (Catawba Project), 3.80%, 8/13/97 6,448 6,448 - ------------------------------------------------------------------------------------------------------- 16,448 - ------------------------------------------------------------------------------------------------------- OHIO 0.57% Ohio Air Quality Development (USX Corporation Project) Series 1995, 3.45%, 8/05/97 4,230 4,230 - ------------------------------------------------------------------------------------------------------- OREGON 0.36% Clackamas County Hospital Facility (Kaiser Permanente), 3.55%, 10/01/97 2,700 2,700 - ------------------------------------------------------------------------------------------------------- PUERTO RICO 0.67% Puerto Rico GDB TECP, 3.70%, 8/06/97 5,000 5,000 - ------------------------------------------------------------------------------------------------------- SOUTH CAROLINA 1.34% York County PCRB (NC Electric Project) Series 84N-3, 3.55%, 9/15/97 10,000 10,000 - -------------------------------------------------------------------------------------------------------
17 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES (CONTINUED) TENNESSEE 0.40% Tennessee HDA (Home Ownership Project) Issue I, 3.75%, 2/19/98 $ 3,000 $ 3,000 - ------------------------------------------------------------------------------------------------------- TEXAS 11.26% Brazes Harbor IDB (Dow Chemical Company Project) Series 1996, 3.80%, 10/23/97 3,700 3,700 City of Houston TECP Series B, 3.80%, 8/01/97 7,000 7,000 Lower Colorado River Authority TECP Series D, 3.60%, 8/05/97 8,000 8,000 Lower Colorado River Authority TECP Series B, 3.65%, 10/07/97 8,000 8,000 Plano Texas Health Facilities (Children's & Presbyterian), 3.75%, 10/21/97 7,000 7,000 San Antonio Electric & Gas Systems TECP Series A, 3.75%, 8/11/97 6,300 6,300 San Antonio Electric & Gas Systems TECP Series A, 3.80%, 9/10/97 4,600 4,600 San Antonio Electric & Gas Systems TECP Series A, 3.75%, 9/18/97 10,000 10,000 State of Texas TRANS, 4.75%, 8/29/97 27,115 27,137 Texas A & M Permanent University Fund Series B, 3.75%, 10/28/97 2,000 2,000 - ------------------------------------------------------------------------------------------------------- 83,737 - ------------------------------------------------------------------------------------------------------- UTAH 2.15% Intermountain Power Agency Power Supply Revenue Bonds Series F, 3.80%, 6/15/98 5,000 5,000 Utah County Environmental Improvement (USX Corporation) Refunding Series 1995, 3.45%, 8/05/97 6,000 6,000 State of Utah GO Highway TECP Series 1997B, 3.80%, 10/07/97 5,000 5,000 - ------------------------------------------------------------------------------------------------------- 16,000 - -------------------------------------------------------------------------------------------------------
18 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - ------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES (CONTINUED) VIRGINIA 6.11% Chesterfield County IDA Series 1987B (VEPCO), 3.85%, 8/13/97 $ 1,000 $ 1,000 Chesterfield County IDA Series 1987B (VEPCO), 3.85%, 11/21/97 5,000 5,000 Fairfax County Series B, 6.10%, 4/01/98 700 715 Fairfax County (Inova Health Systems) Series 1993B, 3.70%, 9/10/97 1,700 1,700 Falls Church IDRB (Kaiser Permanente Medical Center), 3.80%, 11/01/97 500 500 Newport News GO Series E, 7.25%, 1/01/98 1,000 1,015 Richmond Redevelopment Housing Authority Series 1997 A & B, 4.63%, 8/28/97 7,500 7,500 Virginia HDA Commonwealth Mortgage Series C-C, 3.80%, 6/10/98 5,000 5,000 Virginia HDA Commonwealth Mortgage Series H-H, 3.84%, 4/16/98 15,000 15,002 York County IDA PCRB (VEPCO), 3.75%, 8/14/97 3,000 3,000 York County IDA PCRB (VEPCO), 3.80%, 10/08/97 5,000 5,000 - ------------------------------------------------------------------------------------------------------- 45,432 - ------------------------------------------------------------------------------------------------------- WISCONSIN 2.02% City of Milwaukee, Short-Term School Order Notes Series 1996B, 4.25%, 8/21/97 5,000 5,001 Milwaukee, RANS Series A, 4.25%, 2/19/98 10,000 10,034 - ------------------------------------------------------------------------------------------------------- 15,035 - ------------------------------------------------------------------------------------------------------- WEST VIRGINIA 0.54% West Virginia HDA Interim Financing Notes Series 1997B, 3.80%, 10/31/97 2,995 2,995 West Virginia HDA GO Notes Series 1997A, 3.90%, 6/18/98 1,000 1,000 - ------------------------------------------------------------------------------------------------------- 3,995 - ------------------------------------------------------------------------------------------------------- WYOMING 0.34% Lincoln City PCRB, (Pacific Corp Project) Series 1991, 3.75%, 10/20/97 2,550 2,550 - -------------------------------------------------------------------------------------------------------
19 CASH RESOURCE TRUST TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
PERCENT OF VALUE NET ASSETS SHARES (NOTE 2) - ------------------------------------------------------------------------------------------------------- TOTAL OTHER TAX-EXEMPT SECURITIES $318,899 - ------------------------------------------------------------------------------------------------------- OTHER 1.63% AIM-TFIC Institutional, 3.56%, 8/01/97 5,067 5,067 PNC Municash, 3.63%, 8/01/97 7,066 7,066 - ------------------------------------------------------------------------------------------------------- TOTAL OTHER 12,133 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $740,201) (C) 99.54% 740,201 - ------------------------------------------------------------------------------------------------------- OTHER ASSETS LESS LIABILITIES 0.46% 3,413 - ------------------------------------------------------------------------------------------------------- NET ASSETS 100.00% $743,614 - -------------------------------------------------------------------------------------------------------
SEE NOTES TO PORTFOLIOS OF INVESTMENTS. 20 CASH RESOURCE TRUST CALIFORNIA TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - -------------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) 44.33% ABAG Finance Authority 1993 C.O.P., (Lucile Slater Packard Children's Hospital), 3.35%, 8/01/23 $ 3,300 $ 3,300 Anaheim C.O.P. 1993 Refunding Project, 3.35%, 8/01/19 3,800 3,800 CA HFA Revenue Bond (Adventist Health) Series A, 3.30%, 8/01/21 3,500 3,500 CA PCRB (OMS Equity Stanislaus Project), 3.60%, 12/01/17 1,000 1,000 CA PCRB (Contra Costa Waste Service) Series A, 3.45%, 12/01/10 2,000 2,000 CA PCRB (Sanger Project) Series A, 3.40%, 9/01/20 3,000 3,000 CA PCRB Solid Waste Disposal (Western Waste) Series A, 3.48%, 12/01/00 2,200 2,200 CA Statewide Community Development (Veriflo Corp.), 3.60%, 4/01/11 2,025 2,025 Chula Vista IDRB (San Diego Gas & Electric), 3.60%, 12/01/21 1,400 1,400 Corona MFHB (Country Hills Project) Series B, 3.30%, 2/01/20 3,000 3,000 Fremont MFHB (Creekside Village Apartments) Series D, 3.35%, 9/01/07 3,000 3,000 Irvine Public Facilities Capital Improvement, 3.35%, 11/01/10 3,400 3,400 Los Angeles County Pension Obligation Series C, 3.35%, 6/30/07 3,900 3,900 Redlands C.O.P. (Sewer Facilities), 3.40%, 9/01/17 1,110 1,110 San Francisco City & County MFHB (Rincon Center Project) Series B, 3.35%, 12/01/06 1,010 1,010 Southern California Public Power Authority Power Project Revenue Bonds 1996 Series C, 3.35%, 7/01/17 2,000 2,000 - -------------------------------------------------------------------------------------------------------------- TOTAL VARIABLE RATE TAX-EXEMPT SECURITIES 39,645 - --------------------------------------------------------------------------------------------------------------
21 CASH RESOURCE TRUST CALIFORNIA TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS (CONTINUED) JULY 31, 1997 (IN THOUSANDS)
SHARES OR PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - -------------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES 49.28% Butte County Office of Education TRANS, 4.50%, 7/31/98 $ 2,000 $ 2,012 CA Department of Water TECP Series I, 3.55%, 9/30/97 2,000 2,000 CA PCRB (Dow Chemical) Series 1985, 3.65%, 8/19/97 2,500 2,500 CA PCRB (Pacific Gas & Electric) Series 1996D, 3.75%, 8/01/97 3,000 3,000 CA PCRB (Pacific Gas & Electric) Series 1996D, 3.60 %, 8/14/97 2,000 2,000 CA State GO TECP, 3.60%, 8/11/97 2,500 2,500 City of San Diego IDRB (San Diego Gas & Electric) Series 1995A, 3.65%, 8/01/97 2,000 2,000 Los Angeles County Metropolitan Transportation Sales Tax Revenue Notes, 3.75%, 10/10/97 2,000 2,000 Los Angeles County Metropolitian Transportation Authority TECP Series A, 3.45%, 8/07/97 4,000 4,000 Los Angeles County TRANS Series A, 4.50%, 6/30/98 3,000 3,017 Los Angeles USD TRANS Series B, 4.50%, 9/30/97 4,000 4,007 Puerto Rico GDB TECP, 3.70%, 8/06/97 3,000 3,000 Sacremento Municipal Utilities, 3.55%-3.60%, 8/07/97-9/19/97 5,000 5,000 San Mateo USD TRANS, 4.50%, 7/10/98 4,000 4,023 Ventura County TRANS 1997, 4.50%, 7/01/98 3,000 3,017 - -------------------------------------------------------------------------------------------------------------- TOTAL OTHER TAX-EXEMPT SECURITIES 44,076 - -------------------------------------------------------------------------------------------------------------- OTHER 3.24% California Money Fund, 3.25%, 8/01/97 2,896 2,896 - -------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $86,617) (C) 96.85% 86,617 - -------------------------------------------------------------------------------------------------------------- OTHER ASSETS LESS LIABILITIES 3.15% 2,815 - -------------------------------------------------------------------------------------------------------------- NET ASSETS 100.00% $89,432 - --------------------------------------------------------------------------------------------------------------
SEE NOTES TO PORTFOLIOS OF INVESTMENTS. 22 CASH RESOURCE TRUST NEW YORK TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS)
PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - -------------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) 66.27% NY City GO Bonds 1995 Series B, B-5, 3.75%, 8/15/18 $ 200 $ 200 NY City GO Series B, B-5, 3.60%, 8/15/22 300 300 NY City Health & Hospital (Health Systems) Series A, 3.50%, 2/15/26 400 400 NY City Housing Development (East 17th Street Property) Series 1993A, 3.70%, 1/01/23 400 400 NY City Municipal Water Finance Authority Series G, 3.75%, 6/15/24 200 200 NY City Housing Development MFHB (Columbus Apartments) Series A, 3.45 %, 3/15/25 300 300 NY City Housing Development (Columbus Gardens Project) Series 1993A, 3.55%, 2/01/07 200 200 NY City Housing Development MFHB (Tribeca Towers) Series A, 3.55%, 12/15/24 300 300 NY City Cultural Resource Revenue (American Museum of Natural History) Series B, 3.60%, 4/01/21 300 300 NY State Dormitory Authority (Metropolitan Museum of Art) Series A, 3.50%, 7/01/15 300 300 NY State Energy PCRB (Niagara Mohawk Power), 3.75%, 12/01/23 400 400 NY State Energy Electric Facility (LILCO) Series B, 3.65%, 11/01/23 400 400 NY State Energy Research & Development PCRB, (NY State Electric & Gas) Series C, 3.45%, 6/01/29 300 300 NY State Housing (Liberty View Apartments) Series 1985A, 3.60%, 11/01/05 100 100 NY State Housing Finance Agency (Normandie Court I Project), 3.50%, 5/15/15 300 300 NY State (LGAC) Series 1994B, 3.50%, 4/01/23 400 400 NY State (LGAC) Series C, 3.55%, 4/01/25 400 400 NY State (LGAC) Series G, 3.65%, 4/01/25 300 300 NY State Medical Care (Pooled Equipment Loan Program II) Series A, 3.65%, 11/01/03 300 300 NY State Medical Care (Pooled Equity Loan Program 1), 3.60%, 11/01/15 200 200 NY State Thruway Authority Bonds, 3.75%, 1/01/24 500 500 Niagara Falls Toll Revenue Series A, 3.60%, 10/01/19 300 300
23 CASH RESOURCE TRUST NEW YORK TAX-EXEMPT MONEY MARKET FUND PORTFOLIO OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS)
SHARES OR PERCENT OF PRINCIPAL VALUE NET ASSETS AMOUNT (NOTE 2) - -------------------------------------------------------------------------------------------------------------- VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES (b) (CONTINUED) Port Authority of NY and NJ (Versatile Structure Obligation) Series 1996, 3.65%, 6/01/20 $ 400 $ 400 St. Lawrence County NY IDA (Reynolds Metals) Series 1985, 3.75%, 12/01/07 200 200 Suffolk County Water Authority BANS, 3.65%, 2/08/01 300 300 Triborough Bridge and Tunnel Authority Special Obligation, 3.60%, 1/01/24 300 300 - -------------------------------------------------------------------------------------------------------------- TOTAL VARIABLE RATE TAX-EXEMPT DEMAND SECURITIES 8,000 - -------------------------------------------------------------------------------------------------------------- OTHER TAX-EXEMPT SECURITIES 24.89% Nassau County BANS Series A, 4.25%, 8/15/97 300 300 NY Dormitory Authority (Sloan Kettering Cancer Center) Series 1989B, 3.55%, 10/16/97 500 500 NY Dormitory Authority (Sloan Kettering Cancer Center) Series 1989C, 3.75%, 8/01/97 300 300 NY State BANS TECP Series S, 3.75%, 8/14/97 300 300 NY State Environmental Solid Waste Disposal (GE Project) Series 1992A, 3.65%, 8/22/97 300 300 NY City GO TECP Series J, J-2, 3.70%, 8/13/97 300 300 Sachem CSD (Holbrook) 1997-98 TANS, 4.25%, 6/25/98 300 301 Westchester County TANS, 3.49%, 12/11/97 300 300 Williamsville CSD GO Bond, 6.50%, 12/01/97 400 404 - -------------------------------------------------------------------------------------------------------------- TOTAL OTHER TAX-EXEMPT SECURITIES 3,005 - -------------------------------------------------------------------------------------------------------------- OTHER 8.86% PNC Municash, 3.34%, 8/01/97 1,069 1,069 - -------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS (COST $12,074) (C) 100.02% 12,074 - -------------------------------------------------------------------------------------------------------------- OTHER ASSETS LESS LIABILITIES (0.02%) (3) - -------------------------------------------------------------------------------------------------------------- NET ASSETS 100.00% $12,071 - --------------------------------------------------------------------------------------------------------------
24 CASH RESOURCE TRUST NOTES TO PORTFOLIOS OF INVESTMENTS JULY 31, 1997 (IN THOUSANDS) - -------------------------------------------------------------------------------- INVESTMENT ABBREVIATIONS: BANS - Bond Anticipation Notes C.O.P. - Certificate Of Participation CA - California CSD - Consolidated School District DFA - Development Finance Authority EDA - Environmental Development Authority GDB - Government Development Bank GO - General Obligation HDA - Housing Development Authority HFA - Housing Finance Authority IDA - Industrial Development Authority IDB - Industrial Development Bond IDRB - Industrial Development Revenue Bond LGAC - Local Government Assistance Corporation MFHB - Multi-Family Housing Bond NJ - New Jersey NY - New York PCRB - Pollution Control Revenue Bond PFA - Public Finance Authority RANS - Revenue Anticipation Notes TANS - Tax Anticipation Notes TECP - Tax-Exempt Commercial Paper TRANS - Tax and Revenue Anticipation Notes USD - Unified School District NOTES TO PORTFOLIOS OF INVESTMENTS Interest rates disclosed represent annualized yield to date of maturity, except for floating rate securities described in (b). (a) These are securities that may be resold to qualified institutional buyers under Rule 144A or securities offered pursuant to section 4(2) of the Securites Act of 1933, as amended. These securities have been determined to be liquid under guidelines that have been established by the Board of Trustees. (b) Floating Rate Securities -- The rates shown are the effective rates at July 31, 1997. (c) For each security, cost (for financial reporting and federal income tax purposes) and carrying value are substantially the same. (d) The repurchase agreement is deemed illiquid because it can not be resold within seven business days from July 31, 1997. SEE NOTES TO FINANCIAL STATEMENTS. 25 CASH RESOURCE TRUST STATEMENTS OF ASSETS AND LIABILITIES JULY 31, 1997 (IN THOUSANDS)
California New York U.S. Tax- Tax- Tax- Government Exempt Exempt Exempt Money Money Money Money Money Market Market Market Market Market Fund Fund Fund Fund Fund - -------------------------------------------------------------------------------------------------------- ASSETS Investments, at amortized cost (Note 2) Investment securities $2,513,823 $1,574,008 $740,201 $ 86,617 $12,074 Repurchase agreements 417,990 1,348,054 - - - - -------------------------------------------------------------------------------------------------------- Total investments 2,931,813 2,922,062 740,201 86,617 12,074 Receivables Interest receivable 11,656 6,148 5,129 404 51 Shares of the portfolio sold 6,590 281 313 11 - Investments sold - - - 2,701 - Organizational cost (Note 2) 38 174 35 8 2 Other 106 - - - - - -------------------------------------------------------------------------------------------------------- Total assets 2,950,203 2,928,665 745,678 89,741 12,127 - -------------------------------------------------------------------------------------------------------- LIABILITIES Payables Dividends 6,198 6,123 976 109 14 Shares of the portfolio redeemed 1,626 3,377 1,039 159 13 Accrued distribution fee (Note 3) 10 37 - - - Accrued expenses and other liabilities 764 417 49 41 29 - -------------------------------------------------------------------------------------------------------- Total liabilities 8,598 9,954 2,064 309 56 - -------------------------------------------------------------------------------------------------------- NET ASSETS $2,941,605 $2,918,711 $743,614 $ 89,432 $12,071 - -------------------------------------------------------------------------------------------------------- Shares outstanding 2,941,635 2,918,704 743,617 89,432 12,071 Net asset value per share $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 - --------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 26 CASH RESOURCE TRUST STATEMENTS OF OPERATIONS YEAR ENDED JULY 31, 1997 (IN THOUSANDS)
California New York U.S. Tax- Tax- Tax- Government Exempt Exempt Exempt Money Money Money Money Money Market Market Market Market Market Fund Fund Fund Fund* Fund* - ----------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $120,023 $131,004 $22,237 $1,891 $177 - ----------------------------------------------------------------------------------------------------- EXPENSES Distribution fee (Note 3) 8,221 9,126 2,039 181 25 Management fee (Note 3) 4,041 4,470 1,326 121 11 Transfer agent fee (Note 3) 4,509 4,126 407 43 - Custodian and accounting fees (Note 3) 691 713 214 23 7 Shareholder reports 424 397 41 6 1 Registration fees 632 282 278 32 7 Professional fees 124 125 35 3 - Organizational expenses 27 127 31 1 - Directors' fees 14 15 4 - - Other 42 43 11 1 - - ----------------------------------------------------------------------------------------------------- Total expenses 18,725 19,424 4,386 411 51 - ----------------------------------------------------------------------------------------------------- Deduct Waiver of management fee - - - - 6 Waiver of distribution fee - - - - 6 - ----------------------------------------------------------------------------------------------------- Net expenses 18,725 19,424 4,386 411 39 - ----------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 101,298 111,580 17,851 1,480 138 - ----------------------------------------------------------------------------------------------------- REALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments sold (30) 60 - - - - ----------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations $101,268 $111,640 $17,851 $1,480 $138 - -----------------------------------------------------------------------------------------------------
*For the period from December 9, 1996 (commencement of operations) to July 31, 1997. SEE NOTES TO FINANCIAL STATEMENTS. 27 CASH RESOURCE TRUST STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS)
Money Market Fund --------------------------- Year Year Ended Ended 7/31/97 7/31/96 - ------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS OPERATIONS Net investment income $ 101,298 $ 25,677 Net realized gain (loss) on investments sold (30) - - ------------------------------------------------------------------------------------------------------------- Net increase in net assets resulting from operations 101,268 25,677 DISTRIBUTIONS TO SHAREHOLDERS Net investment income (101,298) (25,677) Net realized gain on investments - - - ------------------------------------------------------------------------------------------------------------- Net decrease from distributions (101,298) (25,677) - ------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS (AT $1.00 PER SHARE) Net proceeds from sale of shares 11,609,162 3,001,684 Reinvestment of distributions 96,439 25,161 Cost of shares redeemed (9,410,466) (2,803,002) - ------------------------------------------------------------------------------------------------------------- Net change in net assets resulting from capital share transactions 2,295,135 223,843 - ------------------------------------------------------------------------------------------------------------- Net increase in net assets 2,295,105 223,843 NET ASSETS Beginning of period 646,500 422,657 - ------------------------------------------------------------------------------------------------------------- End of period $ 2,941,605 $ 646,500 - -------------------------------------------------------------------------------------------------------------
*For the period from December 9, 1996 (commencement of operations) to July 31, 1997. SEE NOTES TO FINANCIAL STATEMENTS. 28
California New York Tax-Exempt Tax-Exempt U.S. Government Tax-Exempt Money Money Money Market Money Market Market Market Fund Fund Fund Fund --------------------------- ------------------------- ---------- ---------- Year Year Year Year Period Period Ended Ended Ended Ended Ended Ended 7/31/97 7/31/96 7/31/97 7/31/96 7/31/97* 7/31/97* - ---------------------------------------------------------------------------------------- $ 111,580 $ 61,080 $ 17,851 $ 8,184 $ 1,480 $ 138 60 - - - - - - ---------------------------------------------------------------------------------------- 111,640 61,080 17,851 8,184 1,480 138 (111,580) (61,080) (17,851) (8,184) (1,480) (138) - - - - - - - ---------------------------------------------------------------------------------------- (111,580) (61,080) (17,851) (8,184) (1,480) (138) - ---------------------------------------------------------------------------------------- 11,304,514 5,769,658 2,957,235 1,194,000 336,910 40,518 108,221 60,634 17,229 8,146 1,372 123 (9,896,481) (5,644,585) (2,521,741) (1,178,150) (248,850) (28,570) - ---------------------------------------------------------------------------------------- 1,516,254 185,707 452,723 23,996 89,432 12,071 - ---------------------------------------------------------------------------------------- 1,516,314 185,707 452,723 23,996 89,432 12,071 1,402,397 1,216,690 290,891 266,895 - - - ---------------------------------------------------------------------------------------- $ 2,918,711 $ 1,402,397 $ 743,614 $ 290,891 $ 89,432 $ 12,071 - ----------------------------------------------------------------------------------------
29 CASH RESOURCE TRUST FINANCIAL HIGHLIGHTS
Money Market Fund ------------------------------------------------------ Year Year Year Period Ended Ended Ended Ended 7/31/97 7/31/96 7/31/95 7/31/94* - ---------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 INCOME FROM INVESTMENT OPERATIONS Net investment income 0.047** 0.050 0.050** 0.020 DISTRIBUTIONS Net investment income (0.047) (0.050) (0.050)** (0.020) - ---------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------------------------------------------------------------------------------------------------- Total Return 4.77% 4.91% 4.97% 1.83%(b) - ---------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $2,941,605 $646,500 $422,657 $ 192,260 Ratio of expenses to average net assets 0.86% 0.82% 0.82% 0.89%(a) Ratio of expenses to average net assets excluding waivers 0.86% 0.82% 0.82% 0.93%(a) Ratio of net investment income to average net assets 4.67% 4.77% 4.96% 2.96%(a) - --------------------------------------------------------------------------------------------------------------
(a) Annualized. (b) Total Return for periods less than one year are not annualized. * For the period from December 20, 1993 (commencement of operations) to July 31, 1994. ** Includes net realized capital gains (losses) which were under $0.001 per share. SEE NOTES TO FINANCIAL STATEMENTS. 30 U.S. Government Money Market Fund ---------------------------------------------------------------- Year Year Year Period Ended Ended Ended Ended 7/31/97 7/31/96 7/31/95 7/31/94* - ------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 0.046** 0.050 0.050** 0.020 (0.046)** (0.050) (0.050) (0.020) - ------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ------------------------------------------------------------------------- 4.72% 4.74% 4.82% 1.82%(b) - ------------------------------------------------------------------------- - ------------------------------------------------------------------------- $2,918,711 $1,402,397 $1,216,690 $ 907,819 0.81% 0.93% 0.88% 0.80%(a) 0.81% 0.93% 0.88% 0.83%(a) 4.63% 4.63% 4.75% 2.91%(a) - ------------------------------------------------------------------------- 31 CASH RESOURCE TRUST FINANCIAL HIGHLIGHTS (CONTINUED)
Tax-Exempt Money Market Fund ---------------------------------------------------- Year Year Year Period Ended Ended Ended Ended 7/31/97 7/31/96 7/31/95 7/31/94* - -------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 INCOME FROM INVESTMENT OPERATIONS Net investment income 0.029 0.030 0.030** 0.010 DISTRIBUTIONS Net investment income (0.029) (0.030) (0.030) (0.010) - -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 - -------------------------------------------------------------------------------------------------------------- Total Return 2.91% 2.90% 3.05% 1.16%(b) - -------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $743,614 $290,891 $266,895 $ 195,702 Ratio of expenses to average net assets 0.71% 0.76% 0.72% 0.65%(a) Ratio of expenses to average net assets excluding waivers 0.71% 0.76% 0.74% 0.74%(a) Ratio of net investment income to average net assets 2.88% 2.85% 3.01% 1.87%(a) - --------------------------------------------------------------------------------------------------------------
(a) Annualized. (b) Total Return for periods less than one year are not annualized. * For the period from December 20, 1993 (commencement of operations) to July 31, 1994. ** Includes net realized capital gains (losses) which were under $0.001 per share. *** For the period from December 9, 1996 (commencement of operations) to July 31, 1997. SEE NOTES TO FINANCIAL STATEMENTS. 32 California Tax-Exempt New York Tax-Exempt Money Market Fund Money Market Fund --------------------- ------------------- Period Ended Period Ended 7/31/97*** 7/31/97*** - ------------------------------------------------------------------ $ 1.000 $ 1.000 0.017 0.018 (0.017) (0.018) - ------------------------------------------------------------------ $ 1.000 $ 1.000 - ------------------------------------------------------------------ 1.76%(b) 1.77%(b) - ------------------------------------------------------------------ - ------------------------------------------------------------------ $89,432 $ 12,071 0.75%(a) 0.80%(a) 0.75%(a) 1.04%(a) 2.70%(a) 2.77%(a) - ------------------------------------------------------------------ 33 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS JULY 31, 1997 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 five separate diversified funds (hereinafter each individually referred to as a "Fund" or collectively as the "Funds") at July 31, 1997 as follows: Cash Resource Trust Money Market Fund ("Money Market Fund") Cash Resource Trust U.S. Government Money Market Fund ("U.S. Government Fund") Cash Resource Trust Tax-Exempt Money Market Fund ("Tax-Exempt Fund") Cash Resource Trust California Tax-Exempt Money Market Fund ("California Tax-Exempt Fund") Cash Resource Trust New York Tax-Exempt Money Market Fund ("New York 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 require 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 Funds. 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. 34 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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 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 Fund specific expenses are charged directly 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 twice each day, as of 12:00 noon and as of the close of regular trading on the New York Stock Exchange. 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. 35 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) G. Organizational Cost Costs incurred by the Trust in connection with its organization costs were deferred by the Funds and are being amortized on a straight-line basis over a five year period. NOTE 3: INVESTMENT MANAGEMENT AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGEMENT AGREEMENT Mentor Investment Advisors, LLC ("Mentor Advisors") the Funds' investment advisor provides investment advisory services to each of the Funds. Mentor Advisors is a wholly-owned subsidiary of Mentor Investment Group, LLC ("Mentor") which is in turn a subsidiary of Wheat First Butcher Singer, Inc., ("Wheat"). EVEREN Capital Corporation has a 20% ownership in Mentor. Each Fund pays management fees to Mentor Advisors 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. Mentor Advisors 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 period ended July 31, 1997, Mentor Advisors earned the following advisory fees: Adviser Adviser Fee Fee Voluntarily Earned Waived - ------------------------------------------------------- Money Market Fund $4,040,769 $ - U.S. Government Fund 4,469,902 - Tax-Exempt Fund 1,325,585 - California Tax-Exempt Fund 120,606 - New York Tax-Exempt Fund 10,938 6,150 - ------------------------------------------------------- In addition, the Funds provide direct reimbursement to Mentor for certain accounting, legal and compliance administration, investor relations and operations related costs not covered under the Investment Management Agreement. For the period ended July 31, 1997, Money Market Fund, U.S. Government Fund, Tax-Exempt Fund, California Tax-Exempt Fund and New York Tax-Exempt Fund paid $166,495, $216,922, $50,912, 36 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) $3,114 and $312, respectively to Mentor for these direct reimbursements. DISTRIBUTION AGREEMENT Under a Distribution Agreement, Mentor Distributors, LLC ("Mentor Distributors") 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 Money Market Fund, U.S. Government Fund and New York Tax-Exempt Fund and 0.33% of the Fund's average daily net assets for Tax-Exempt Fund and California Tax-Exempt Fund (the plan provides for payments by the New York Tax-Exempt Fund at a rate of up to 0.50%; the Trustees have currently limited payments by this Fund to 0.38% of the Fund's average daily net assets). In order to compensate selected financial institutions, such as investment dealers and banks through which shares of each Fund are sold ("Financial Institutions") for services provided in connection with sales of shares of each Fund and/or for administrative services and the maintenance of shareholder accounts, Mentor Distributors may make periodic payments (from any amounts received by it under the Plan or from its other resources) to qualifying Financial Institutions based on the average net asset value of shares of a Fund which are attributable to shareholders for whom the Financial Institutions are designated as the Financial Institution of record. Mentor Distributors may make such payments at the annual rate of up to 0.40% of the average net asset value of such shares (0.38% in the case of each New Tax-Exempt Fund and 0.33% in the case of Tax-Exempt Fund and California 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 period ended July 31, 1997, Wheat earned fees of $2,251,535, $3,407,010, $308,427, $16,693 and $454 respectively from Money Market Fund, U.S. Government Fund, Tax-Exempt Fund, California Tax-Exempt Fund and New York Tax-Exempt Fund. IFTC also in turn compensates EVEREN Clearing Corp. ("EVEREN") for transfer related services. 37 CASH RESOURCE TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the period ending July 31, 1997, EVEREN earned fees of $2,257,900, $719,160, $99,017 and $25,994 respectively from Money Market Fund, U.S. Government Fund, Tax-Exempt Fund and California Tax-Exempt Fund. SUBSEQUENT EVENT On August 20, 1997, Wheat announced that a definitive agreement was signed in which Wheat will be acquired by a subsidiary of First Union Corp., in a transaction expected to be consummated in December 1997. Consummation of the acquisition, which is subject to a number of conditions, including regulatory approvals, will result in the termination of the investment advisory agreements between the CRT Funds and Mentor Advisors. The Trustees of CRT will meet to consider new advisory agreements with Mentor Advisors that are substantially the same as the current advisory agreements; will be effective upon consummation of the acquisition; and subject to fund shareholder approval. NOTE 4: CONCENTRATION OF CREDIT RISK California Tax-Exempt Fund and New York Tax-Exempt Fund invest in obligations issued by the States of California and New York, respectively, and by their political subdivisions and duly constituted authorities. The issuers' abilities to meet their obligations may be affected by economic and political developments in the States of California and New York. Certain debt obligations held by each of the Funds in the Trust are entitled to the benefits of insurance, standby letter of credit or other guarantees of banks or other financial institutions. - -------------------------------------------------------------------------------- FEDERAL INCOME TAX STATUS--FISCAL 1997 (UNAUDITED) During the period ended July 31, 1997, the Funds paid the following tax-exempt distributions: Tax-Exempt Income Dividend - -------------------------------------------------------------------------------- Tax-Exempt Fund $ 17,850,831 California Tax-Exempt Fund 1,480,310 New York Tax-Exempt Fund 137,535 38 CASH RESOURCE TRUST INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- THE TRUSTEES CASH RESOURCE TRUST We have audited the accompanying statements of assets and liabilities, including the portfolios of investments as of July 31, 1997 of the Cash Resource Trust (CRT) Money Market Fund, CRT U.S. Government Money Market Fund, CRT Tax-Exempt Money Market Fund, CRT California Tax-Exempt Money Market Fund and CRT New York Tax-Exempt Money Market Fund, (portfolios of Cash Resource Trust), and the related statements of operations for the periods presented on page 27, the statements of changes in net assets for the periods presented on pages 28 and 29 and the financial highlights for the periods presented on pages 30, 31, 32 and 33. These financial statements and financial highlights are the responsibility of the Funds' 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 and financial highlights. Our procedures included confirmation of securities owned as of July 31, 1997 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant 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 the CRT Money Market Fund, CRT U.S. Government Money Market Fund, CRT Tax-Exempt Money Market Fund, CRT California Tax-Exempt Money Market Fund and CRT New York Tax-Exempt Money Market Fund as of July 31, 1997, the results of their operations, the changes in their net assets, and the financial highlights for each of the years or periods indicated in the first paragraph above, in conformity with generally accepted accounting principles. /s/ KPMG Peat Marwick LLP Boston, Massachusetts September 5, 1997 39 -----END PRIVACY-ENHANCED MESSAGE-----