UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21824
Mount Vernon Securities Lending Trust
(Exact name of registrant as specified in charter)
800 Nicollet Mall, Minneapolis, MN 55402
(Address of principal executive offices) (Zip code)
Jill M. Stevenson, Treasurer
800 Nicollet Mall, BC-MN-H04H
Minneapolis, MN 55402
(Name and address of agent for service)
(800) 677-3863
Registrant’s telephone number, including area code
Date of fiscal year end: December 31, 2014
Date of reporting period: December 31, 2014
2014 Annual Report | ||
MOUNT VERNON SECURITIES LENDING TRUST | ||
Prime | ||
Portfolio | ||
1 | |
1 | |
2 | |
3 | |
7 | |
8 | |
9 | |
10 | |
11 | |
16 |
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report |
Portfolio Allocation as of December 31, 20141 (% of net assets) | ||||
Certificates of Deposit | 42.6 | % | ||
Financial Company Commercial Paper | 15.9 | |||
Government Agency Repurchase Agreements | 14.5 | |||
Other Notes | 8.7 | |||
Other Repurchase Agreements | 7.6 | |||
Asset Backed Commercial Paper | 7.5 | |||
Investment Companies | 2.8 | |||
Variable Rate Demand Notes | 0.4 | |||
100.0 | % | |||
Expense Example | ||||||||||||
Expenses Paid | ||||||||||||
Beginning Account | Ending Account | During Period2 | ||||||||||
Value (07/01/2014) | Value (12/31/2014) | (07/01/2014 to 12/31/2014) | ||||||||||
Actual3 | $ | 1,000.00 | $ | 1,000.90 | $ | 0.10 | ||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,025.10 | $ | 0.10 | ||||||
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 1 |
February 25, 2015
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 2 |
Mount Vernon Securities Lending Trust Prime Portfolio | ||||||||
DESCRIPTION | PAR | VALUE > | ||||||
Certificates of Deposit - 42.6% | ||||||||
Australia & New Zealand Bank | ||||||||
0.480%, 01/14/2015 Δ | $ | 3,250 | $ | 3,251 | ||||
Banco del Estado de Chile/NY | ||||||||
0.200%, 02/05/2015 | 6,400 | 6,400 | ||||||
0.242%, 02/17/2015 Δ | 49,000 | 49,000 | ||||||
0.241%, 05/14/2015 Δ | 59,000 | 59,000 | ||||||
Bank of Montreal/Chicago | ||||||||
0.208%, 03/03/2015 Δ | 50,000 | 50,000 | ||||||
0.282%, 06/17/2015 Δ | 73,500 | 73,500 | ||||||
0.254%, 07/23/2015 Δ | 49,000 | 49,000 | ||||||
Bank of Nova Scotia/Houston | ||||||||
0.290%, 02/25/2015 Δ | 50,000 | 50,000 | ||||||
0.260%, 03/03/2015 Δ | 14,000 | 14,000 | ||||||
0.338%, 04/02/2015 Δ | 49,000 | 49,000 | ||||||
0.270%, 05/19/2015 Δ | 50,000 | 50,000 | ||||||
Bank Tokyo-Mitsubishi/NY | ||||||||
0.100%, 01/07/2015 | 52,000 | 52,000 | ||||||
0.207%, 01/07/2015 Δ | 53,500 | 53,500 | ||||||
0.207%, 04/07/2015 Δ | 50,000 | 50,000 | ||||||
Canadian Imperial Bank of Commerce/NY | ||||||||
0.220%, 01/15/2015 Δ | 50,000 | 50,000 | ||||||
0.220%, 02/09/2015 Δ | 50,000 | 50,000 | ||||||
0.280%, 02/12/2015 Δ | 10,000 | 10,000 | ||||||
0.370%, 01/18/2016 Δ | 45,750 | 45,750 | ||||||
Citibank | ||||||||
0.211%, 01/12/2015 Δ | 55,000 | 55,000 | ||||||
0.238%, 04/09/2015 Δ | 54,000 | 54,000 | ||||||
Commonwealth Bank of Australia/NY | ||||||||
0.237%, 07/07/2015 Δ | 53,500 | 53,500 | ||||||
Credit Suisse/NY | ||||||||
0.520%, 01/28/2015 | 4,050 | 4,051 | ||||||
0.220%, 02/23/2015 | 30,000 | 30,000 | ||||||
0.350%, 03/25/2015 Δ | 50,000 | 50,000 | ||||||
0.469%, 04/10/2015 Δ | 6,850 | 6,850 | ||||||
HSBC Bank USA | ||||||||
0.231%, 04/13/2015 Δ | 50,000 | 50,000 | ||||||
National Australia Bank/NY | ||||||||
0.190%, 02/17/2015 | 25,000 | 25,000 | ||||||
Nordea Bank Finland/NY | ||||||||
0.218%, 02/13/2015 Δ | 11,400 | 11,400 | ||||||
Rabobank Nederland/NY | ||||||||
0.261%, 01/13/2015 Δ | 53,500 | 53,500 | ||||||
0.258%, 07/09/2015 Δ | 54,000 | 54,000 | ||||||
0.198%, 04/09/2015 Δ | 50,000 | 50,000 | ||||||
Royal Bank of Canada/NY | ||||||||
0.351%, 01/04/2016 Δ | 58,500 | 58,500 | ||||||
Skandinaviska Enskilda Banken/NY | ||||||||
0.208%, 02/11/2015 Δ | 50,000 | 50,000 | ||||||
0.228%, 05/11/2015 Δ | 55,000 | 55,000 | ||||||
State Street Bank And Trust | ||||||||
0.255%, 11/20/2015 Δ | 50,000 | 50,000 | ||||||
Sumitomo Mitsui Banking/NY | ||||||||
0.200%, 02/03/2015 | 55,000 | 55,000 | ||||||
Svenska Handelsbanken/NY | ||||||||
0.519%, 01/16/2015 Δ | 26,000 | 26,003 | ||||||
Swedbank/NY | ||||||||
0.227%, 02/09/2015 Δ | 50,000 | 50,000 | ||||||
Toronto Dominion Bank/NY | ||||||||
0.212%, 04/10/2015 Δ | 50,000 | 50,000 | ||||||
0.248%, 10/05/2015 Δ | 50,000 | 50,000 | ||||||
Wells Fargo Bank | ||||||||
0.300%, 02/04/2015 Δ | 48,500 | 48,500 | ||||||
0.208%, 02/06/2015 Δ | 11,500 | 11,500 | ||||||
0.211%, 02/10/2015 Δ | 6,000 | 6,000 | ||||||
0.230%, 02/13/2015 Δ | 50,000 | 50,000 | ||||||
0.290%, 11/30/2015 Δ | 50,000 | 50,000 |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 3 |
DESCRIPTION | PAR | VALUE > | ||||||
Westpac Banking Corp/NY | ||||||||
0.231%, 03/16/2015 Δ | $ | 43,000 | $ | 43,003 | ||||
Total Certificates of Deposit | ||||||||
(Cost $1,915,208) | 1,915,208 | |||||||
Financial Company Commercial Paper - 15.9% | ||||||||
ANZ New Zealand International | ||||||||
0.215%, 04/20/2015 Δ ■ | 50,000 | 50,000 | ||||||
0.206%, 05/11/2015 Δ ■ | 50,000 | 50,000 | ||||||
0.267%, 11/05/2015 Δ ■ | 50,000 | 50,000 | ||||||
Bank of America | ||||||||
0.200%, 02/18/2015 | 55,000 | 55,000 | ||||||
Commonwealth Bank of Australia | ||||||||
0.245%, 05/15/2015 Δ ■ | 50,000 | 50,006 | ||||||
HSBC Bank | ||||||||
0.237%, 07/08/2015 Δ ■ | 24,000 | 24,000 | ||||||
0.265%, 11/20/2015 Δ ■ | 25,000 | 25,000 | ||||||
Macquarie Bank | ||||||||
0.342%, 02/10/2015 Δ ■ | 49,000 | 49,000 | ||||||
0.341%, 03/16/2015 Δ ■ | 10,000 | 10,000 | ||||||
0.312%, 05/18/2015 Δ ■ | 50,000 | 50,000 | ||||||
National Australia Bank | ||||||||
0.228%, 03/11/2015 Δ ■ | 25,000 | 25,001 | ||||||
0.255%, 11/20/2015 Δ ■ | 50,000 | 50,000 | ||||||
Suncorp-Metway | ||||||||
0.351%, 01/14/2015 ■ ¤ | 6,000 | 5,999 | ||||||
0.341%, 03/18/2015 ■ ¤ | 50,000 | 49,964 | ||||||
0.341%, 04/14/2015 ■ ¤ | 8,000 | 7,992 | ||||||
Toyota Motor Credit | ||||||||
0.216%, 01/21/2015 Δ | 28,500 | 28,500 | ||||||
0.221%, 02/06/2015 Δ | 30,000 | 30,000 | ||||||
0.221%, 04/09/2015 Δ | 25,000 | 25,000 | ||||||
0.226%, 05/15/2015 Δ | 25,000 | 25,000 | ||||||
0.205%, 06/26/2015 Δ | 25,000 | 25,000 | ||||||
0.232%, 08/07/2015 Δ | 30,000 | 30,000 | ||||||
Total Financial Company Commercial Paper | ||||||||
(Cost $715,462) | 715,462 | |||||||
Other Notes - 8.7% | ||||||||
Barclays Bank | ||||||||
0.207%, 01/07/2015 Δ ■ | 98,000 | 98,000 | ||||||
0.327%, 04/07/2015 Δ ■ | 98,000 | 98,000 | ||||||
General Electric Capital | ||||||||
0.611%, 01/09/2015 Δ | 7,695 | 7,695 | ||||||
Metropolitan Life Global Funding | ||||||||
0.459%, 04/10/2015 Δ | 38,000 | 38,000 | ||||||
New York Life Global Funding | ||||||||
0.233%, 10/29/2015 Δ ■ | 6,500 | 6,500 | ||||||
Svenska Handelsbanken | ||||||||
0.311%, 06/15/2015 Δ ■ | 35,000 | 35,000 | ||||||
0.431%, 01/04/2016 Δ | 54,250 | 54,246 | ||||||
Westpac Banking | ||||||||
0.434%, 12/31/2015 Δ ■ | 53,250 | 53,250 | ||||||
Total Other Notes | ||||||||
(Cost $390,691) | 390,691 | |||||||
Asset Backed Commercial Paper ■ - 7.5% | ||||||||
Fairway Finance | ||||||||
0.205%, 01/21/2015 Δ | 24,000 | 24,000 | ||||||
0.227%, 06/05/2015 Δ | 40,000 | 40,000 | ||||||
Gotham Funding | ||||||||
0.160%, 01/12/2015 ¤ | 25,000 | 24,999 | ||||||
Jupiter SEC | ||||||||
0.100%, 01/02/2015 ¤ | 11,977 | 11,977 | ||||||
Kells Funding | ||||||||
0.242%, 01/09/2015 | 20,000 | 20,000 | ||||||
0.241%, 03/26/2015 Δ | 64,000 | 64,005 |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 4 |
DESCRIPTION | PAR/SHARES | VALUE > | ||||||
Nieuw Amsterdam Receivables Corp. | ||||||||
0.180%, 02/09/2015 ¤ | $ | 48,000 | $ | 47,991 | ||||
Old Line Funding | ||||||||
0.198%, 03/11/2015 Δ | 35,000 | 35,000 | ||||||
Thunder Bay Funding | ||||||||
0.198%, 03/04/2015 Δ | 35,000 | 35,000 | ||||||
0.195%, 05/01/2015 Δ | 35,000 | 35,000 | ||||||
Total Asset Backed Commercial Paper | ||||||||
(Cost $337,972) | 337,972 | |||||||
Variable Rate Demand Notes Δ- 0.4% | ||||||||
Minnesota State Housing Finance Agency, Series 2007E (SPA: Wells Fargo Bank) | ||||||||
0.160%, 01/07/2015 | 2,965 | 2,965 | ||||||
New York Jets LLC, Jets Stadium Development (LOC: Sumitomo Mitsui Corp.) | ||||||||
0.090%, 01/07/2015 ■ | 13,000 | 13,000 | ||||||
Total Variable Rate Demand Notes | ||||||||
(Cost $15,965) | 15,965 | |||||||
Government Agency Repurchase Agreements - 14.5% | ||||||||
BNP Paribas Securities Corp. | ||||||||
0.070%, dated 12/31/2014, matures 01/02/2015, repurchase price $150,001 | ||||||||
(collateralized by various government obligations: Total market value $153,000) | 150,000 | 150,000 | ||||||
ING Financial Markets LLC | ||||||||
0.080%, dated 12/31/2014, matures 01/02/2015, repurchase price $100,000 | ||||||||
(collateralized by various government obligations: Total market value $102,003) | 100,000 | 100,000 | ||||||
SG Americas Securities LLC | ||||||||
0.090%, dated 12/31/2014, matures 01/02/2015, repurchase price $400,002 | ||||||||
(collateralized by various government obligations: Total market value $408,000) | 400,000 | 400,000 | ||||||
Total Government Agency Repurchase Agreements | ||||||||
(Cost $650,000) | 650,000 | |||||||
Other Repurchase Agreements - 7.6% | ||||||||
BNP Paribas Prime Brokerage Inc. | ||||||||
0.200%, dated 12/31/2014, matures 01/02/2015, repurchase price $65,001 | ||||||||
(collateralized by various securities: Total market value $68,250) | 65,000 | 65,000 | ||||||
0.300%, dated 12/31/2014, matures 02/04/2015, repurchase price $25,007 | ||||||||
(collateralized by various securities: Total market value $26,250) ∞ | 25,000 | 25,000 | ||||||
BNP Paribas Securities Corp. | ||||||||
0.200%, dated 12/31/2014, matures 02/04/2015, repurchase price $80,016 | ||||||||
(collateralized by various securities: Total market value $84,000) ∞ | 80,000 | 80,000 | ||||||
HSBC Securities (USA) Inc. | ||||||||
0.150%, dated 12/31/2014, matures 01/02/2015, repurchase price $55,000 | ||||||||
(collateralized by various securities: Total market value $57,751) | 55,000 | 55,000 | ||||||
ING Financial Markets LLC | ||||||||
0.150%, dated 12/31/2014, matures 01/02/2015, repurchase price $15,000 | ||||||||
(collateralized by various securities: Total market value $15,756) | 15,000 | 15,000 | ||||||
JP Morgan Securities LLC | ||||||||
0.300%, dated 12/31/2014, matures 02/04/2015, repurchase price $100,029 | ||||||||
(collateralized by various securities: Total market value $105,003) ∞ | 100,000 | 100,000 | ||||||
Total Other Repurchase Agreements | ||||||||
(Cost $340,000) | 340,000 | |||||||
Investment Companies Ω - 2.8% | ||||||||
DWS Money Market Series Fund, Institutional Shares, 0.060% | 54,455,965 | 54,456 | ||||||
Goldman Sachs Financial Square Money Market Fund, Institutional Shares, 0.074% | 58,154,883 | 58,155 | ||||||
JPMorgan Prime Money Market, Institutional Shares, 0.061% | 14,285,029 | 14,285 | ||||||
Total Investment Companies | ||||||||
(Cost $126,896) | 126,896 | |||||||
Total Investments ▲- 100.0% | ||||||||
(Cost $4,492,194) | 4,492,194 | |||||||
Other Assets and Liabilities, Net - 0.0% | (48 | ) | ||||||
Total Net Assets - 100.0% | $ | 4,492,146 |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 5 |
■ | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers”. As of December 31, 2014, the value of these investments was $1,138,684 or 25.3% of total net assets. |
¤ | Discounted Security - This security makes no periodic interest payments, but is issued at a discount from par value. The rate shown is the annualized yield at the time of purchase. |
∞ | Security considered illiquid. As of December 31, 2014, the value of these investments was $205,000 or 4.6% of total net assets. |
Ω | The rate shown is the annualized seven-day effective yield as of December 31, 2014. |
▲ | On December 31, 2014, the cost of investments for federal income tax purposes was $4,492,194. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, are both $0. |
LOC - Letter of Credit | |
SPA - Standby Purchase Agreement |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 6 |
Prime | ||||
Portfolio | ||||
ASSETS: | ||||
Investments in securities, at value (note 2) | $ | 3,502,194 | ||
Repurchase agreements, at value (note 2) | 990,000 | |||
Cash | 1 | |||
Receivable for dividends and interest | 865 | |||
Other assets | 2 | |||
Total assets | 4,493,062 | |||
LIABILITIES: | ||||
Dividends payable | 875 | |||
Payable to affiliates (note 3) | 41 | |||
Total liabilities | 916 | |||
Net assets | $ | 4,492,146 | ||
COMPOSITION OF NET ASSETS: | ||||
Portfolio capital | $ | 4,497,636 | ||
Distributions in excess of net investment income | (120 | ) | ||
Accumulated net realized loss on investments (note 2) | (5,370 | ) | ||
Net assets | $ | 4,492,146 | ||
Shares issued and outstanding ($0.01 par value - unlimited shares authorized) | 4,496,915 | |||
Net asset value, offering price, and redemption price per share | $ | 1.00 |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 7 |
Prime | ||||
Portfolio | ||||
INVESTMENT INCOME: | ||||
Interest income (note 6) | $ | 11,131 | ||
Total investment income | 11,131 | |||
EXPENSES (note 3): | ||||
Administration fees | 1,104 | |||
Total expenses | 1,104 | |||
Less: Fee waivers (note 3) | (552 | ) | ||
Total net expenses | 552 | |||
Investment income before tax expense | 10,579 | |||
Tax expense (note 2) | (261 | ) | ||
Investment income - net | 10,318 | |||
Net realized gain on investments (note 6) | 805 | |||
Net increase in net assets resulting from operations | $ | 11,123 |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 8 |
Prime | ||||||||
Portfolio | ||||||||
Year Ended | Year Ended | |||||||
12/31/2014 | 12/31/2013 | |||||||
OPERATIONS: | ||||||||
Investment income - net | $ | 10,318 | $ | 10,847 | ||||
Net realized gain on investments | 805 | 163 | ||||||
Net increase in net assets resulting from operations | 11,123 | 11,010 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||
Investment income - net | (10,027 | ) | (10,534 | ) | ||||
Total distributions | (10,027 | ) | (10,534 | ) | ||||
CAPITAL SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE: | ||||||||
Proceeds from sales (note 7) | 34,933,137 | 31,966,442 | ||||||
Payments for redemptions (note 7) | (35,483,132 | ) | (31,164,157 | ) | ||||
Increase (decrease) in net assets from capital share transactions | (549,995 | ) | 802,285 | |||||
Total increase (decrease) in net assets | (548,899 | ) | 802,761 | |||||
Net assets at beginning of year | 5,041,045 | 4,238,284 | ||||||
Net assets at end of year | $ | 4,492,146 | $ | 5,041,045 | ||||
Distributions in excess of net investment income | $ | (120 | ) | $ | (54 | ) |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 9 |
Prime | ||||||||||||||||||||
Portfolio | ||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
12/31/2014 | 12/31/2013 | 12/31/2012 | 12/31/2011 | 12/31/2010 | ||||||||||||||||
PER-SHARE DATA: | ||||||||||||||||||||
Net asset value, beginning of year | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Net investment income | – | 1 | – | 1 | – | 1 | – | 1 | – | 1 | ||||||||||
Distributions from net investment income | – | 1 | – | 1 | – | 1 | – | 1 | – | 1 | ||||||||||
Net asset value, end of year | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Total return | 0.18 | % | 0.20 | % | 0.28 | % | 0.23 | % | 0.27 | % | ||||||||||
Net assets at end of period (000) | $ | 4,492,146 | $ | 5,041,045 | $ | 4,238,284 | $ | 7,493,397 | $ | 6,421,686 | ||||||||||
Ratio of expenses to average net assets | 0.01 | % | 0.01 | % | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||
Ratio of net investment income to average net assets | 0.19 | % | 0.21 | % | 0.28 | % | 0.23 | % | 0.27 | % | ||||||||||
Ratio of expenses to average net assets (excluding waivers) | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||
Ratio of net investment income to average net assets (excluding waivers) | 0.18 | % | 0.20 | % | 0.28 | % | 0.23 | % | 0.27 | % |
The accompanying notes are an integral part of the financial statements. | MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 10 |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 11 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Certificates of Deposit | $ | — | $ | 1,915,208 | $ | — | $ | 1,915,208 | ||||||||
Financial Company Commercial Paper | — | 715,462 | — | 715,462 | ||||||||||||
Government Agency Repurchase Agreements | — | 650,000 | — | 650,000 | ||||||||||||
Other Notes | — | 390,691 | — | 390,691 | ||||||||||||
Other Repurchase Agreements | — | 340,000 | — | 340,000 | ||||||||||||
Asset Backed Commercial Paper | — | 337,972 | — | 337,972 | ||||||||||||
Variable Rate Demand Notes | — | 15,965 | — | 15,965 | ||||||||||||
Investment Companies | 126,896 | — | — | 126,896 | ||||||||||||
Total Investments | $ | 126,896 | $ | 4,365,298 | $ | — | $ | 4,492,194 |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 12 |
Fiscal Year | Fiscal Year | |||||||
Ended | Ended | |||||||
12/31/14 | 12/31/13 | |||||||
Ordinary Income | $ | 9,970 | $ | 10,769 | ||||
Total Distributions | $ | 9,970 | $ | 10,769 |
Amount | ||||
Undistributed Ordinary Income | $ | 755 | ||
Accumulated Capital and Post-October Losses | (5,370 | ) | ||
Total Accumulated Deficit | $ | (4,615 | ) |
Gross Amounts Not Offset in the | ||||||||||||||||||||||||
Statement of Assets and Liabilities | ||||||||||||||||||||||||
Gross | Gross Amounts | |||||||||||||||||||||||
Amounts of | Offset in the | Net Amounts Presented in | Collateral | |||||||||||||||||||||
Recognized | Statement of Assets | the Statement of Assets and | Financial | Pledged | Net | |||||||||||||||||||
Assets | and Liabilities | Liabilities | Instruments | (Received) | Amount(1) | |||||||||||||||||||
Description | ||||||||||||||||||||||||
Repurchase | ||||||||||||||||||||||||
Agreements | $ | 990,000 | $ | - | $ | 990,000 | $ | - | $ | (990,000 | ) | $ | - | |||||||||||
$ | 990,000 | $ | - | $ | 990,000 | $ | - | $ | (990,000 | ) | $ | - |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 13 |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 14 |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 15 |
Long Term | ||||||||||||||||||||
Capital Gains | Ordinary Income | Total | Dividends | Qualified | ||||||||||||||||
Distributions | Distributions | Distributions | Received | Dividend | ||||||||||||||||
Portfolio | (Tax Basis)1 | (Tax Basis)1 | (Tax Basis) | Deduction2 | Income2 | |||||||||||||||
Prime Portfolio | 0.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | 0.00 | % |
1 Based on a percentage of the portfolio’s distributions. |
2 Based on a percentage of ordinary income distributions of the portfolio. |
Notice to Shareholders December 31, 2014 (unaudited) |
Independent Trustees | ||||||||||
Name, Address, and Year of Birth | Position(s) Held with the Trust | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee* | |||||
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946) | Trustee | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified; Trustee of Mount Vernon Securities Lending Trust since September 2005 | Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Advisor/Consultant, Future FreightTM, a logistics/supply chain company; non-profit board member; prior to retirement in 2005, served in several executive positions for United Airlines, including Vice President and Chief Operating Officer – Cargo; Independent Director, First American Funds Complex since 1997 | First American Funds Complex: 2 registered investment companies, including 6 portfolios | Trustee, Diversified Real Asset Income Fund | |||||
John P. Kayser** P.O. Box 1329 Minneapolis, MN 55440-1329 (1949) | Trustee | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified; Trustee of Mount Vernon Securities Lending Trust since October 2006 | Retired; non-profit board member; prior to retirement in 2004, Principal, William Blair & Company, LLC, a Chicago- based investment firm; previously served on board of governors of Chicago Stock Exchange; former Director, William Blair Mutual Funds, Inc., Midwest Securities Trust Company, and John O. Butler Co.; Independent Director, First American Funds Complex since 2006 | First American Funds Complex: 2 registered investment companies, including 6 portfolios | Trustee, Diversified Real Asset Income Fund | |||||
Leonard W. Kedrowski P.O. Box 1329 Minneapolis, MN 55440-1329 (1941) | Chair; Trustee | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified; Trustee of Mount Vernon Securities Lending Trust since September 2005 | Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Chief Executive Officer, Blue Earth Internet, a website development company; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; Member, investment advisory committee, Sisters of the Good Shepherd; Certified Public Accountant; former Vice President, Chief Financial Officer, Treasurer, Secretary, and Director, Anderson Windows, a large privately-held manufacturer of wood windows; former Director, Protection Mutual Insurance Company, an international property and casualty insurer; Independent Director, First American Funds Complex since 1993 | First American Funds Complex: 2 registered investment companies, including 6 portfolios | Trustee, Diversified Real Asset Income Fund | |||||
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Trustee | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified; Trustee of Mount Vernon Securities Lending Trust since September 2005 | Owner and Chief Executive Officer, RKR Consultants, Inc., a consulting company providing advice on business strategy, mergers and acquisitions; non-profit board member; former Chief Executive Officer and President, Weirton Steel Corporation; former Vice President and Treasurer, Harnischfeger Industries, a capital machinery manufacturer; former Treasurer and Director of Planning, Allis Chalmers Corporation, an equipment manufacturing company; former Chairman, American Iron & Steel Institute, a North American steel industry trade association; Independent Director, First American Funds Complex since 2001 and Firstar Funds 1988- 2001 | First American Funds Complex: 2 registered investment companies, including 6 portfolios | Trustee, Diversified Real Asset Income Fund | |||||
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943) | Trustee | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified; Trustee of Mount Vernon Securities Lending Trust since September 2005 | Owner and President, Jim Wade Homes, a homebuilding company; formerly, Vice President and Chief Financial Officer, Johnson Controls, Inc.; Independent Director, First American Funds Complex Since 2001 and Firstar Funds 1988-2001 | First American Funds Complex: 2 registered investment companies, including 6 portfolios | Trustee, Diversified Real Asset Income Fund |
* | Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. |
Part B of the Registration Statement includes additional information about the trustees. A copy of the Registration Statement is available upon request without charge by calling 612-303-4088 or writing to Mount Vernon Securities Lending Trust, 800 Nicollet Mall, Minneapolis, Minnesota 55402. | |
** | Resigned as trustee of the Trust effective February 24, 2015. |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 17 |
Notice to Shareholders | December 31, 2014 (unaudited) |
Officers | ||||||
Name,Address, and Year of Birth | Position(s) Held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||
Eric J. Thole U.S. Bancorp Asset Management , Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1972)* | President | Re-elected by the Board annually; President of Mount Vernon Securities Lending Trust since June 2014; Vice President of Mount Vernon Securities Lending Trust from January 2011 through June 2014 | Chief Executive Officer and President, U.S. Bancorp Asset Management, Inc. since June 2014; Chief Operating Officer, U.S. Bancorp Asset Management, Inc. from August 2012 through June 2014; Head of Operations, Technology and Treasury, U.S. Bancorp Asset Management, Inc. from January 2011 through July 2012; prior thereto ,Managing Director of Investment Operations, U.S. Bancorp Asset Management, Inc. | |||
James D. Palmer U.S. Bancorp Asset Management, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1964)* | Vice President | Re-elected by the Board annually; Vice President of Mount Vernon Securities Lending Trust since June 2014 | Chief Investment Officer, U.S. Bancorp Asset Management, Inc. since August 2012; Head of Investments, U.S. Bancorp Asset Management, Inc. from January 2011 through July 2012; prior thereto , Managing Director, U.S. Bancorp Asset Management, Inc. | |||
Jill M. Stevenson U.S. Bancorp Asset Management, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)* | Treasurer | Re-elected by the Board annually; Treasurer of Mount Vernon Securities Lending Trust since January 2011 | Mutual Funds Treasurer and Head of Operations and Treasury, U.S. Bancorp Asset Management, Inc. since September 2014; Mutual Funds Treasurer, U.S. Bancorp Asset Management, Inc. from January 2011 through September 2014; prior thereto, Mutual Funds Assistant Treasurer, U.S. Bancorp Asset Management, Inc. | |||
Brent G. Smith U.S. Bancorp Asset Management, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1981)* | Assistant Treasurer | Re-elected by the Board annually; Assistant Treasurer of Mount Vernon Securities Lending Trust since September 2014 | Assistant Mutual Funds Treasurer, U.S. Bancorp Asset Management, Inc. since September 2014; prior thereto, Senior Fund Accountant, U.S. Bancorp Asset Management, Inc. | |||
Ruth M. Mayr U.S. Bancorp Asset Management , Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1959)* | Chief Compliance Officer | Re-elected by the Board annually; Chief Compliance Officer of Mount Vernon Securities Lending Trust since January 2011 | Chief Compliance Officer, U.S. Bancorp Asset Management, Inc. since January 2011; prior thereto, Director of Compliance , U.S. Bancorp Asset Management, Inc. | |||
Carol A. Sinn U.S. Bancorp Asset Management, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1959)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of Mount Vernon Securities Lending Trust since January 2011 | Senior Business Line Risk Manager and Anti-Money Laundering Officer, U.S. Bancorp Asset Management, Inc. since January 2011; prior thereto , Senior Business Line Risk Manager, U.S. Bancorp Asset Management, Inc. | |||
Richard J. Ertel U.S. Bancorp Asset Management, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)* | Secretary | Re-elected by the Board annually; Secretary of Mount Vernon Securities Lending Trust since January 2011; Assistant Secretary of Mount Vernon Securities Lending Trust from June 2006 through December 2010 | General Counsel, U.S. Bancorp Asset Management, Inc. since January 2011 ; prior thereto, Counsel, U.S. Bancorp Asset Management, Inc. | |||
Scott F. Cloutier U.S. Bancorp Asset Management, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1973)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of Mount Vernon Securities Lending Trust since September 2012 | Senior Corporate Counsel, U.S. Bancorp Asset Management, Inc. since April 2011; prior thereto, Attorney, Steingart, McGrath & Moore, P.A., a Minneapolis-based law firm |
* | Messrs. Thole, Palmer, Smith, Ertel and Cloutier and Mses. Stevenson, Mayr, and Sinn are each officers and/or employees of U.S. Bancorp Asset Management , Inc., which serves as investment advisor, administrator, and transfer agent for Mount Vernon Securities Lending Trust. |
MOUNT VERNON SECURITIES LENDING TRUST 2014 Annual Report | 18 |
Why we collect your information | |
We gather nonpublic personal information about you and your accounts so that we can: | |
• | Know who you are and prevent unauthorized access to your information. |
• | Comply with the laws and regulations that govern us. |
The types of information we collect | |
We may collect the following nonpublic personal information about you: | |
• | Information about your identity, such as your name, address, and social security number. |
• | Information about your transactions with us. |
• | Information you provide on applications, such as your beneficiaries and banking information, if provided to us. |
Confidentiality and security | |
We require our service providers to restrict access to nonpublic personal information about you to those employees who need that information in order to provide products or services to you. We also require them to maintain physical, electronic, and procedural safeguards that comply with applicable federal standards and regulations to guard your information. | |
What information we disclose | |
We may share all of the nonpublic personal information that we collect about you with our affiliated providers of financial services, including our family of funds and their advisor, and with companies that perform marketing services on our behalf. | |
We’re permitted by law to disclose nonpublic personal information about you to other third parties in certain circumstances. For example, we may disclose nonpublic personal information about you to affiliated and nonaffiliated third parties to assist us in servicing your account (e.g., mailing of fund-related materials) and to government entities (e.g., IRS for tax purposes). | |
We’ll continue to adhere to the privacy policies and practices described here even after your account is closed or becomes inactive. | |
Additional rights and protections | |
You may have other privacy protections under applicable state laws. To the extent that these state laws apply, we will comply with them when we share information about you. This privacy policy does not apply to your relationship with other financial service providers, such as broker-dealers. We may amend this privacy notice at any time, and we will inform you of changes as required by law. | |
Our pledge applies to products and services offered by the First American Family of Funds | |
• | First American Funds, Inc. |
• | Mount Vernon Securities Lending Prime Portfolio |
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
(a) | Audit Fees* - Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $0 in the fiscal year ended December 31, 2014 and $0 in the fiscal year ended December 31, 2013, including fees associated with the annual audit, SEC Rule 17f-2 security count filings and filings of the registrant’s Form N-CSR. |
(b) | Audit-Related Fees* – E&Y billed the registrant audit-related fees totaling $0 in the fiscal year ended December 31, 2014 and $0 in the fiscal year ended December 31, 2013, including fees associated with the semi-annual review of portfolio disclosures. |
(c) | Tax Fees* - E&Y billed the registrant fees of $0 in the fiscal year ended December 31, 2014 and $0 in the fiscal year ended December 31, 2013, for tax services, including tax compliance, tax advice and tax planning. Tax compliance, tax advice and tax planning services primarily related to preparation of original and amended tax returns, timely RIC qualification reviews, and tax distribution analysis and planning. |
(d) | All Other Fees* - E&Y billed the registrant fees of $0 in the fiscal year ended December 31, 2014 and $0 in the fiscal year ended December 31, 2013, for other services to the registrant. |
* | Pursuant to an administration agreement, U.S. Bancorp Asset Management, Inc., the registrant’s investment advisor, bears all of the registrant’s fees billed for audit, audit-related, tax, and all other services described under Items 4(a)-(d) above. |
(e)(1) | The audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X are set forth below: |
● | Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality |
● | Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence |
● | Meet quarterly with the partner of the independent audit firm |
● | Consider approving categories of service that are not deemed to impair independence for a one-year period. |
● | Annual portfolio financial statement audits |
● | Seed audits (related to new product filings, as required) |
● | SEC and regulatory filings and consents |
● | Accounting consultations |
● | Portfolio merger support services |
● | Other accounting related matters |
● | Agreed Upon Procedure Reports |
● | Attestation Reports |
● | Other Internal Control Reports |
● | Federal, state, and local income tax compliance, and |
● | Sales and use tax compliance |
● | Timely RIC qualification reviews |
● | Tax distribution analysis and planning |
● | Tax authority examination services |
● | Tax appeals support services |
● | Accounting methods studies |
● | Portfolio merger support services |
● | Tax consulting services and related projects |
● | Management functions |
● | Accounting and bookkeeping services |
● | Internal audit services |
● | Financial information systems design and implementation |
● | Valuation services supporting the financial statements |
● | Actuarial services supporting the financial statements |
● | Executive recruitment |
● | Expert services (e.g., litigation support) |
● | Investment banking |
(e)(2) | All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee. |
(f) | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal year-end were performed by the principal accountant’s full-time, permanent employees. |
(g) | The aggregate non-audit fees billed by E&Y to the registrant, the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, totaled $471,500 in the fiscal year ended December 31, 2014 and $472,650 in the fiscal year ended December 31, 2013. |
(h) | The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved is compatible with maintaining E&Y’s independence. |
(a) | The registrant’s principal executive officer and principal financial officer have evaluated the effectiveness of registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. |
(b) | There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
(a)(1) | Not applicable. Registrant’s code of ethics is provided to any person upon request without charge. |
(a)(2) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed as exhibits hereto. |
(a)(3) | Not applicable. |
(b) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 are filed as exhibits hereto. |
By: | |
/s/ Eric J. Thole | |
Eric J. Thole | |
President | |
Date: March 3, 2015 |
By: | |
/s/ Eric J. Thole | |
Eric J. Thole | |
President | |
Date: March 3, 2015 |
By: | |
/s/ Jill M. Stevenson | |
Jill M. Stevenson | |
Treasurer | |
Date: March 3, 2015 |