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: 811-03251
COMMAND Government Fund
(Exact name of registrant as specified in charter)
Gateway Center 3 100 Mulberry Street Newark, New Jersey | 07102 | |
| (Address of principal executive offices) | (Zip code) |
Johnathan D. Shain
Gateway Center 3
100 Mulberry Street
Newark, New Jersey 07102
(Name and address of agent for service)
Registrant’s telephone number, including area code: 973-802-6469
Date of fiscal year end: June 30, 2004
Date of reporting period: December 31, 2003
Item 1—Reports to Stockholders
[SHAREHOLDER REPORT TO BE INSERTED HERE IN THE EDGAR VERSION]
SEMIANNUAL REPORT
DECEMBER 31, 2003
COMMAND MONEY FUND
COMMAND GOVERNMENT FUND
COMMAND TAX-FREE FUND
FUND TYPE
Money market
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Funds’ portfolio holdings are for the period covered by this report and are subject to change thereafter.
Your Fund’s Performance
Fund Objectives
COMMAND Money Fund and COMMAND Government Fund seek high current income, preservation of capital, and maintenance of liquidity. There can be no assurance that the Funds will achieve their respective investment objectives.
COMMAND Tax-Free Fund seeks high current income that is exempt from federal income taxes, consistent with the maintenance of liquidity and preservation of capital. There can be no assurance that the Fund will achieve its investment objective.
| Fund Facts as of 12/31/03 | |||||||||||
| 7-Day Current Yield | Net Asset Value (NAV) | Weighted Avg. Maturity (WAM) | Net Assets (Millions) | ||||||||
COMMAND Money Fund | 0.51 | % | $ | 1.00 | 47 Days | $ | 7,781 | ||||
iMoneyNet, Inc. | 0.39 | % | N/A | 58 Days | N/A | ||||||
COMMAND Government Fund | 0.45 | % | $ | 1.00 | 23 Days | $ | 604 | ||||
iMoneyNet, Inc. | 0.38 | % | N/A | 53 Days | N/A | ||||||
COMMAND Tax-Free Fund | 0.63 | % | $ | 1.00 | 79 Days | $ | 1,559 | ||||
iMoneyNet, Inc. | 0.52 | % | N/A | 46 Days | N/A | ||||||
Note: Yields will fluctuate from time to time, and past performance is not indicative of future results. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.
| 1 | iMoneyNet, Inc. regularly reports a 7-day current yield and WAM on Tuesdays for taxable retail money funds. For purposes of this report, iMoneyNet, Inc. reported the 7-day current yield and WAM on the last Monday of the reporting period. This is the data of all funds in the iMoneyNet, Inc. Taxable Prime Retail Average category as of December 29, 2003, the closest date to the end of our reporting period. |
| 2 | iMoneyNet, Inc. regularly reports a 7-day current yield and WAM on Tuesdays for taxable government money funds. For purposes of this report, iMoneyNet, Inc. reported the 7-day current yield and WAM on the last Monday of the reporting period. This is the data of all funds in the iMoneyNet, Inc. Government & Agency Retail Average category as of December 29, 2003, the closest date to the end of our reporting period. |
| 3 | iMoneyNet, Inc. reports a 7-day current yield and WAM on Mondays for tax-free money funds. This is the data of all funds in the iMoneyNet, Inc Tax-Free National Retail Average category as of December 29, 2003, the closest date to the end of our reporting period. |
COMMAND Money Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited)
| Principal Amount (000) | Description | Value (Note 1) | |||
Certificates of Deposit - Canadian 3.2% | |||||
Canadian Imperial Bank of Commerce, | |||||
| $200,000 | 1.09%, 1/8/04 | $ | 200,000,000 | ||
Toronto Dominion Bank, | |||||
| 50,000 | 1.25%, 3/17/04 | 50,000,000 | |||
| 250,000,000 | |||||
Certificates of Deposit - Yankee 17.2% | |||||
American Express Centurion Bank, | |||||
| 60,000 | 1.09%, 1/26/04 | 60,000,000 | |||
First Tennessee Bank | |||||
| 65,000 | 1.08%, 2/10/04 | 64,999,272 | |||
HBOS Treasury Services PLC, | |||||
| 150,000 | 1.105%, 3/23/04 | 150,001,704 | |||
KBC Bank NV | |||||
| 200,000 | 1.09%, 2/23/04 | 199,998,530 | |||
Landesbank Hessen-Thuringren, | |||||
| 150,000 | 1.08%, 1/5/04 | 149,999,549 | |||
Royal Bank Scotland PLC, | |||||
| 48,000 | 1.35%, 4/19/04 | 48,000,000 | |||
Societe Generale, | |||||
| 150,000 | 1.33%, 3/31/04 | 150,000,000 | |||
| 75,000 | 1.16%, 4/12/04 | 74,998,951 | |||
UBS AG, | |||||
| 75,000 | 1.245%, 3/17/04 | 74,999,218 | |||
Wells Fargo Bank NA, | |||||
| 116,000 | 1.08%, 1/12/04 | 115,999,823 | |||
| 250,000 | 1.05%, 1/30/04 | 249,998,994 | |||
| 1,338,996,041 | |||||
Commercial Paper 54.7% | |||||
Aegon Funding Corp., | |||||
| 88,000 | 1.10%, 1/7/04 | 87,983,867 | |||
| 43,847 | 1.095%, 1/8/04 | 43,837,664 | |||
| 38,421 | 1.10%, 1/13/04 | 38,406,912 | |||
| 36,579 | 1.10%, 1/14/04 | 36,564,470 | |||
Alianz Finance Corp., | |||||
| 3,390 | 1.06%, 3/9/04 | 3,383,212 | |||
| 100,000 | 1.09%, 3/17/04 | 99,769,889 | |||
See Notes to Financial Statements
| COMMAND FUNDS | 1 |
COMMAND Money Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Principal Amount (000) | Description | Value (Note 1) | ||||
Alliance & Leicester, | ||||||
| $ | 30,000 | 1.09%, 3/16/04 | $ | 29,931,875 | ||
| 34,000 | 1.09%, 3/19/04 | 33,919,703 | ||||
Amsterdam Funding Corp., | ||||||
| 56,310 | 1.09%, 1/15/04 | 56,286,131 | ||||
| 25,000 | 1.09%, 1/16/04 | 24,988,646 | ||||
| 20,356 | 1.10%, 1/20/04 | 20,344,182 | ||||
| 17,675 | 1.09%, 1/22/04 | 17,663,761 | ||||
| 4,501 | 1.09%, 1/26/04 | 4,497,593 | ||||
| 50,000 | 1.09%, 2/12/04 | 49,936,417 | ||||
Bradford & Bingley PLC, | ||||||
| 50,000 | 1.09%, 2/10/04 | 49,939,445 | ||||
Caisse Nationale Des Caisses D’Espar, | ||||||
| 48,500 | 1.09%, 3/12/04 | 48,395,738 | ||||
Citigroup Global Markets Holdings, | ||||||
| 200,000 | 1.09%, 1/7/04 | 199,963,667 | ||||
| 155,000 | 1.085%, 3/25/04 | 154,607,594 | ||||
Den Norske Bank ASA, | ||||||
| 44,000 | 1.09%, 2/13/04 | 43,942,715 | ||||
Edison Asset Securitization LLC, | ||||||
| 100,000 | 1.09%, 2/13/04 | 99,869,806 | ||||
| 150,000 | 1.09%, 2/23/04 | 149,759,292 | ||||
Falcon Asset Securitization Corp., | ||||||
| 130,000 | 1.09%, 1/15/04 | 129,944,894 | ||||
| 139,000 | 1.09%, 1/28/04 | 138,886,368 | ||||
GE Capital International Funding, Inc., | ||||||
| 30,000 | 1.10%, 1/28/04 | 29,975,250 | ||||
| 65,606 | 1.09%, 3/19/04 | 65,451,060 | ||||
HBOS Treasury Services PLC, | ||||||
| 90,000 | 1.09%, 3/22/04 | 89,779,275 | ||||
HSH Norbank AG, | ||||||
| 37,154 | 1.10%, 1/14/04 | 37,139,242 | ||||
Independence Funding LLC, | ||||||
| 34,614 | 1.095%, 1/20/04 | 34,593,996 | ||||
Morgan Stanley, | ||||||
| 250,000 | 1.09%, 1/26/04 | 249,810,764 | ||||
Natexis Banques Populaires | ||||||
| 150,000 | 1.09%, 3/11/04 | 149,682,083 | ||||
Nationwide Building Society | ||||||
| 40,533 | 1.09%, 3/8/04 | 40,450,774 | ||||
See Notes to Financial Statements
| 2 | Visit our website at www.jennisondryden.com |
| Principal Amount (000) | Description | Value (Note 1) | ||||
New Center Asset Trust, | ||||||
| $ | 42,000 | 1.10%, 2/25/04 | $ | 41,929,417 | ||
Norddeutsche Landesbank Luxembourg, | ||||||
| 150,000 | 1.09%, 1/12/04 | 149,950,042 | ||||
| 37,000 | 1.09%, 1/16/04 | 36,983,196 | ||||
| 150,000 | 1.09%, 2/17/04 | 149,786,541 | ||||
| 40,000 | 1.06%, 2/19/04 | 39,942,289 | ||||
Nordea North America, Inc., | ||||||
| 220,000 | 1.09%, 1/13/04 | 219,920,067 | ||||
PB Finance Delaware, Inc., | ||||||
| 100,000 | 1.13%, 1/12/04 | 99,965,472 | ||||
| 920 | 1.14%, 2/10/04 | 918,835 | ||||
Preferred Receivables Funding Corp., | ||||||
| 43,000 | 1.09%, 1/26/04 | 42,967,451 | ||||
Prudential PLC, | ||||||
| 150,000 | 1.09%, 2/3/04 | 149,850,125 | ||||
San Paolo U.S. Finance Co., | ||||||
| 49,500 | 1.09%, 3/11/04 | 49,395,088 | ||||
Schlumberger Technology Corp., | ||||||
| 32,712 | 1.10%, 3/1/04 | 32,652,028 | ||||
| 61,000 | 1.11%, 3/1/04 | 60,887,150 | ||||
| 50,000 | 1.09%, 3/8/04 | 49,898,569 | ||||
Sheffield Receivables Corp., | ||||||
| 62,640 | 1.11%, 1/7/04 | 62,628,412 | ||||
| 105,000 | 1.10%, 1/8/04 | 104,977,542 | ||||
| 114,060 | 1.11%, 1/8/04 | 114,035,383 | ||||
| 150,000 | 1.09%, 1/12/04 | 149,950,041 | ||||
Toronto Dominion Bank, | ||||||
| 70,000 | 1.06%, 2/13/04 | 69,913,433 | ||||
Tulip Funding Corp., | ||||||
| 179,604 | 1.09%, 1/12/04 | 179,544,182 | ||||
| 12,012 | 1.10%, 1/20/04 | 12,005,026 | ||||
Westpac Capital Corp., | ||||||
| 135,000 | 1.12%, 5/27/04 | 134,385,356 | ||||
Windmill Funding Corp., | ||||||
| 25,000 | 1.09%, 1/22/04 | 24,984,104 | ||||
| 16,520 | 1.09%, 2/18/04 | 16,495,991 | ||||
| 4,253,672,025 | ||||||
See Notes to Financial Statements
| COMMAND FUNDS | 3 |
COMMAND Money Fund
Portfolio of Investments
As of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description | Value (Note 1) | ||||
Municipal Bonds 4.2% | |||||||
Alabama Hsg. Fin. Auth. Rev., Huntsville Village, | |||||||
| A-1+(d) | $11,275 | 1.15%, 1/7/04(a) | $ | 11,275,000 | |||
| A-1+(d) | Burke Cnty. Georgia Dev. Auth. Rev., Oglethorpe Power Corp., | ||||||
| 15,185 | 1.31%, 1/2/04(a) | 15,185,000 | |||||
| VMIG1 | California Hsg. Fin. Agcy. Rev., Ser J, | ||||||
| 11,200 | 0.83%, 1/5/04(a) | 11,200,000 | |||||
California St. Cmntys, Dev. Auth. Rev., Case Univ. Proj., | |||||||
| VMIG1 | 9,000 | 1.27%, 1/2/04(a) | 9,000,000 | ||||
California St. G.O., | |||||||
| A-1+(d) | 15,300 | 1.35%, 1/2/04(a) | 15,300,000 | ||||
Delaware St. Econ. Dev. Auth. Rev., Ser A, | |||||||
| P-1 | 17,600 | 1.33%, 1/2/04(a) | 17,600,000 | ||||
Douglas Cnty. Colorado Dev. Rev., Lincolnpointe Lofts Proj., | |||||||
| A-1(d) | 9,585 | 1.27%, 1/2/04(a) | 9,585,000 | ||||
Gulf Coast Texas Indl. Auth. Rev., Amoco Oil Co. Proj., | |||||||
| VMIG1 | 10,600 | 1.34%, 1/2/04(a) | 10,600,000 | ||||
Hapeville Georgia Dev. Auth. Rev., Hotel Ltd., | |||||||
| P-1 | 14,700 | 1.04%, 1/2/04(a) | 14,700,000 | ||||
Harris Cnty. Texas Hlth. Facs. Rev., | |||||||
| A-1+(d) | 59,700 | 1.39%, 1/2/04(a) | 59,700,000 | ||||
Irvine California Assmt. Dist. No. 93 Rev., | |||||||
| VMIG1 | 18,559 | 1.04%, 1/2/04(a) | 18,559,000 | ||||
King George Cnty. Virginia Indl. Auth. Rev., | |||||||
| A-1+(d) | 8,000 | 1.32%, 1/2/04(a) | 8,000,000 | ||||
Louisville & Jefferson Cnty. Kentucky Arpt. Facs. Rev., | |||||||
| A-1+(d) | 25,000 | 1.04%, 1/2/04(a) | 25,000,000 | ||||
Multinomah Cnty. Oregon Hosp. Auth. Rev., Holladay Park Plaza Proj., | |||||||
| VMIG1 | 17,200 | 1.03%, 1/2/04(a) | 17,200,000 | ||||
New York City Trans. Fin. Auth. | |||||||
| VMIG1 | 16,675 | 1.28%, 1/2/04(a) | 16,675,000 | ||||
North Slope Boro Alaska Indl. Rev., | |||||||
| VMIG1 | 30,000 | 1.07%, 1/2/04(a) | 30,000,000 | ||||
Putnam Cnty. Georgia Dev Pwr., Georgia Pwr. Co. Proj., | |||||||
| A-1(d) | 12,625 | 1.31%, 1/2/04(a) | 12,625,000 | ||||
Rhode Island Elite & Ed. Care, Care New England Proj., | |||||||
| A-1(d) | 27,700 | 1.05%, 1/2/04(a) | 27,700,000 | ||||
| 329,904,000 | |||||||
See Notes to Financial Statements
| 4 | Visit our website at www.jennisondryden.com |
| Principal Amount (000) | Description | Value (Note 1) | |||
Other Corporate Obligations 9.4% | |||||
American Express Credit Corp., MTN, | |||||
| $90,000 | 1.20%, 1/4/05(a) | $ | 90,000,000 | ||
Bank America Corp., MTN, | |||||
| 27,980 | 5.75%, 3/1/04 | 28,183,960 | |||
General Electric Capital Assurance Corp. | |||||
| 100,000 | 1.23%, 7/22/04(a)(b) | ||||
(cost $100,000,000; purchased 7/17/03) | 100,000,000 | ||||
Goldman Sachs Group, Inc., MTN, | |||||
| 59,000 | 1.31%, 1/11/05(a)(b) | ||||
(cost $59,000,000; purchased 06/23/00) | 59,000,000 | ||||
Merrill Lynch & Co., Inc., MTN, | |||||
| 100,000 | 1.30%, 1/10/05(a) | 100,000,000 | |||
Metropolitan Life Insurance Co., | |||||
| 58,000 | 1.24%, 2/9/04(a)(b) | ||||
(cost $58,000,000; purchased 2/07/03) | 58,000,000 | ||||
| 107,000 | 1.26%, 10/4/04(a)(b) | ||||
(cost $107,000,000; purchased 10/03/02) | 107,000,000 | ||||
Morgan Stanley, MTN, | |||||
| 47,000 | 1.28%, 1/15/05(a) | 47,000,000 | |||
Pacific Life Insurance Co. | |||||
| 67,000 | 1.29%, 10/15/04(a)(b) | ||||
(cost $67,000,000; purchased 9/9/02) | 67,000,000 | ||||
Travelers Insurance Co., | |||||
| 51,000 | 1.23%, 7/8/04(a)(b) | ||||
(cost $51,000,000; purchased 2/25/03) | 51,000,000 | ||||
| 25,000 | 1.27%, 2/25/04(a)(b) | ||||
(cost $25,000,000; purchased 2/25/03) | 25,000,000 | ||||
| 732,183,960 | |||||
U.S. Government Agency & Instrumentality Obligations 12.7% | |||||
Federal Home Loan Bank, | |||||
| 229,500 | 4.88%, 4/16/04(a) | 231,868,584 | |||
| 225,000 | 1.23%, 7/6/04(a) | 225,000,000 | |||
Federal National Mortgage Association, | |||||
| 100,000 | 1.13%, 2/11/04 | 99,871,306 | |||
| 200,000 | 1.12%, 2/18/04 | 199,701,333 | |||
| 50,000 | 3.63%, 4/15/04(a) | 50,337,106 | |||
| 180,000 | 1.11%, 6/23/04 | 179,034,300 | |||
| 985,812,629 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 5 |
COMMAND Money Fund
Portfolio of Investments
As of December 31, 2003 (Unaudited) Cont’d.
| Principal Amount (000) | Description | Value (Note 1) | ||||
Total Investments 101.4% | 7,890,568,655 | |||||
Liabilities in excess of other assets (1.4%) | (109,871,728 | ) | ||||
Net Assets 100% | $ | 7,780,696,927 | ||||
The following abbreviations are used in the portfolio descriptions:
MTN—Medium Term Note.
G.O.—General Obligation
| (a) | Variable rate instrument. The maturity date presented for these instruments is the next date on which the rate of interest is adjusted or the date on which the security can be redeemed at par. |
| (b) | Indicates illiquid securities restricted as to resale. The aggregate cost of such securities was $467,000,000. The aggregate value of $467,000,000 is approximately 6.00% of net assets. |
| (c) | The cost for federal income tax purposes is substantially the same as for financial reporting purposes. |
| (d) | Standard & Poor’s rating. |
See Notes to Financial Statements
| 6 | Visit our website at www.jennisondryden.com |
COMMAND Money Fund
Statement of Assets and Liabilities
as of December 31, 2003 (Unaudited)
Assets | |||
Investments, at amortized cost which approximates market value | $ | 7,890,568,655 | |
Receivable for Fund shares sold | 39,583,511 | ||
Receivable for investments sold | 22,050,723 | ||
Interest receivable | 9,350,150 | ||
Prepaid expenses | 201,474 | ||
Total assets | 7,961,754,513 | ||
Liabilities | |||
Payable for Fund shares reacquired | 105,586,839 | ||
Payable for investments purchased | 69,913,433 | ||
Management fee payable | 2,785,675 | ||
Accrued expenses and other liabilities | 1,536,769 | ||
Distribution fee payable | 957,072 | ||
Payable to custodian | 172,429 | ||
Dividends payable | 105,369 | ||
Total liabilities | 181,057,586 | ||
Net Assets | $ | 7,780,696,927 | |
Net assets were comprised of: | |||
Shares of beneficial interest, at $.01 par value | $ | 77,806,969 | |
Paid-in capital in excess of par | 7,702,889,958 | ||
Net Assets, December 31, 2003 | $ | 7,780,696,927 | |
Net asset value, offering price and redemption price per share | $1.00 | ||
See Notes to Financial Statements
| COMMAND FUNDS | 7 |
COMMAND Money Fund
Statement of Operations
Six Months Ended December 31, 2003 (Unaudited)
Net Investment Income | |||
Income | |||
Interest and discount earned | $ | 65,103,291 | |
Expenses | |||
Management fee | 20,339,493 | ||
Distribution fee | 7,039,670 | ||
Transfer agent’s fees and expenses | 2,574,000 | ||
Custodian’s fees and expenses | �� | 360,000 | |
Reports to shareholders | 299,000 | ||
Registration fees | 102,000 | ||
Trustees’ fees | 45,000 | ||
Legal fees and expenses | 28,000 | ||
Audit fee | 19,000 | ||
Miscellaneous | 91,056 | ||
Total expenses | 30,897,219 | ||
Net investment income | 34,206,072 | ||
Realized Gain On Investments | |||
Net realized gain on investment transactions | 2,516,558 | ||
Net Increase In Net Assets Resulting From Operations | $ | 36,722,630 | |
See Notes to Financial Statements
| 8 | Visit our website at www.jennisondryden.com |
COMMAND Money Fund
Statement of Changes in Net Assets (Unaudited)
| Six Months Ended December 31, 2003 | Year Ended June 30, 2002 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 34,206,072 | $ | 149,523,930 | ||||
Net realized gain on investment transactions | 2,516,558 | 99,798 | ||||||
Net increase in net assets resulting from operations | 36,722,630 | 149,623,728 | ||||||
Dividends and distributions to shareholders (Note 1) | (36,722,630 | ) | (149,623,728 | ) | ||||
Fund share transactions (at $1 per share) | ||||||||
Proceeds from shares sold | 18,840,553,618 | 51,648,569,116 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 35,196,542 | 143,017,554 | ||||||
Cost of shares reacquired | (22,898,656,852 | ) | (54,770,474,062 | ) | ||||
Net decrease in net assets from Fund share transactions | (4,022,906,692 | ) | (2,978,887,392 | ) | ||||
Total decrease | (4,022,906,692 | ) | (2,978,887,392 | ) | ||||
Net Assets | ||||||||
Beginning of period | 11,803,603,619 | 14,782,491,011 | ||||||
End of period | $ | 7,780,696,927 | $ | 11,803,603,619 | ||||
See Notes to Financial Statements
| COMMAND FUNDS | 9 |
COMMAND Money Fund
Financial Highlights (Unaudited)
| Six Months Ended December 31, 2003 | ||||
Per Share Operating Performance: | ||||
Net asset value, beginning of period | $ | 1.000 | ||
Net investment income and net realized gains | 0.003 | |||
Dividends and distributions to shareholders | (0.003 | ) | ||
Net asset value, end of period | $ | 1.000 | ||
Total Return(a): | 0.34 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 7,780,697 | ||
Average net assets (000) | $ | 11,202,258 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | .55 | %(b) | ||
Expenses, excluding distribution and service (12b-1) fees | .42 | %(b) | ||
Net investment income | .65 | %(b) | ||
| (a) | Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for periods of less than one full year are not annualized. |
| (b) | Annualized. |
See Notes to Financial Statements
| 10 | Visit our website at www.jennisondryden.com |
| Year Ended June 30, | ||||||||||||||||||
| 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||
| $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||
| 0.010 | 0.022 | 0.055 | 0.053 | 0.048 | ||||||||||||||
| (0.010 | ) | (0.022 | ) | (0.055 | ) | (0.053 | ) | (0.048 | ) | |||||||||
| $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||
| 1.06 | % | 2.23 | % | 5.72 | % | 5.42 | % | 4.85 | % | |||||||||
| $ | 11,803,604 | $ | 14,782,491 | $ | 16,407,586 | $ | 13,489,038 | $ | 12,246,946 | |||||||||
| $ | 14,167,966 | $ | 16,400,541 | $ | 15,543,950 | $ | 13,178,334 | $ | 11,965,069 | |||||||||
| .54 | % | .53 | % | .53 | % | .53 | % | .54 | % | |||||||||
| .41 | % | .41 | % | .41 | % | .41 | % | .41 | % | |||||||||
| 1.06 | % | 2.19 | % | 5.50 | % | 5.32 | % | 4.73 | % | |||||||||
See Notes to Financial Statements
| COMMAND FUNDS | 11 |
COMMAND Government Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Principal Amount (000) | Description | Value (Note 1) | |||
U.S. GOVERNMENT AGENCIES 45.4% | |||||
Federal Home Loan Bank 25.2% | |||||
| $1,285 | 5.375%, 1/5/04 | $ | 1,285,570 | ||
| 57,000 | 1.01%, 1/14/04(a) | 56,986,486 | |||
| 50,000 | 1.037%, 1/25/04(a) | 49,989,187 | |||
| 2,400 | 5.25%, 2/13/04 | 2,411,409 | |||
| 500 | 5.435%, 2/23/04 | 503,024 | |||
| 30,000 | 1.05%, 4/7/04(a) | 29,996,194 | |||
| 10,000 | 4.875%, 4/16/04(d) | 10,103,853 | |||
| 1,000 | 3.63%, 4/26/04 | 1,007,013 | |||
| 152,282,736 | |||||
Federal Home Loan Mortgage Corporation 3.4% | |||||
| 5,000 | 3.25%, 1/15/04 | 5,003,965 | |||
| 4,000 | 3.40%, 2/20/04 | 4,011,991 | |||
| 4,271 | 5.00%, 5/15/04 | 4,330,104 | |||
| 7,000 | 1.66%, 12/30/04 | 7,000,659 | |||
| 20,346,719 | |||||
Federal National Mortgage Association 16.1% | |||||
| 50,000 | 1.09%, 1/18/04(a) | 49,991,471 | |||
| 1,500 | 1.01%, 1/22/04(a) | 1,499,955 | |||
| 9,540 | 5.125%, 2/13/04 | 9,584,151 | |||
| 5,000 | 1.14%, 2/18/04 | 4,992,400 | |||
| 7,000 | 1.002%, 3/10/04(a) | 6,998,659 | |||
| 9,030 | 4.75%, 3/15/04 | 9,095,209 | |||
| 15,000 | 1.47%, 9/22/04 | 15,000,000 | |||
| 97,161,845 | |||||
Student Loan Marketing Association 0.7% | |||||
| 4,500 | 1.416%, 1/13/04(a) | 4,505,802 | |||
Total U.S. government agencies | 274,297,102 | ||||
REPURCHASE AGREEMENTS(b) 58.7% | |||||
| 40,000 | Bank of America Securities LLC, | 40,000,000 | |||
| 40,000 | Bear, Stearns & Co., Inc. | 40,000,000 | |||
See Notes to Financial Statements
| 12 | Visit our website at www.jennisondryden.com |
| Principal Amount (000) | Description | Value (Note 1) | |||||
| $ | 9,450 | Bear, Stearns & Co., Inc. | $ | 9,450,000 | |||
| 14,750 | Bear, Stearns & Co., Inc. | 14,750,000 | |||||
| 26,333 | Goldman Sachs & Co., | 26,333,000 | |||||
| 37,850 | Goldman Sachs & Co., | 37,850,000 | |||||
| 54,580 | Greenwich Capital Markets, Inc. | 54,580,000 | |||||
| 9,640 | Greenwich Capital Markets, Inc. | 9,640,000 | |||||
| 62,000 | Merrill Lynch, Pierce, Fenner & Smith, Inc. | 62,000,000 | |||||
| 59,404 | UBS Warburg LLC, | 59,404,000 | |||||
Total repurchase agreements | 354,007,000 | ||||||
Total Investments 104.1% | 628,304,102 | ||||||
Liabilities in excess of other assets (4.1%) | (24,585,680 | ) | |||||
Net Assets 100% | $ | 603,718,422 | |||||
| (a) | Variable rate instrument. The maturity date presented for these instruments is the next date on which the rate of interest is adjusted or the date on which the security can be redeemed at par. |
| (b) | Repurchase agreements are collateralized by United States Treasury or federal agency obligations. |
| (c) | The cost for federal income tax purposes is substantially the same as for financial reporting purposes. |
| (d) | Represents a when-issued security |
See Notes to Financial Statements
| COMMAND FUNDS | 13 |
COMMAND Government Fund
Statement of Assets and Liabilities
as of December 31, 2003 (Unaudited)
Assets | |||
Investments, excluding repurchase agreements, at amortized cost which | $ | 274,297,102 | |
Repurchase agreements, at amortized cost which approximates market value | 354,007,000 | ||
Receivable for Fund shares sold | 3,824,613 | ||
Interest receivable | 1,121,222 | ||
Prepaid expenses | 16,948 | ||
Total assets | 633,266,885 | ||
Liabilities | |||
Payable for Fund shares reacquired | 29,046,287 | ||
Management fee payable | 249,454 | ||
Accrued expenses and other liabilities | 162,077 | ||
Distribution fee payable | 77,954 | ||
Payable to custodian | 7,289 | ||
Dividends payable | 5,402 | ||
Total liabilities | 29,548,463 | ||
Net Assets | $ | 603,718,422 | |
Net assets were comprised of: | |||
Shares of beneficial interest, at $.01 par value | $ | 6,037,184 | |
Paid-in capital in excess of par | 597,681,238 | ||
Net Assets, December 31, 2003 | $ | 603,718,422 | |
Net asset value, offering price and redemption price per share | $1.00 | ||
See Notes to Financial Statements
| 14 | Visit our website at www.jennisondryden.com |
COMMAND Government Fund
Statement of Operations
Six Months Ended December 31, 2003 (Unaudited)
Net Investment Income | |||
Income | |||
Interest and discount earned | $ | 5,130,193 | |
Expenses | |||
Management fee | 1,854,642 | ||
Distribution fee | 579,576 | ||
Registration fees | 178,000 | ||
Transfer agent’s fees and expenses | 85,000 | ||
Custodian’s fees and expenses | 54,000 | ||
Reports to shareholders | 25,000 | ||
Legal fees and expenses | 18,000 | ||
Trustees’ fees | 14,000 | ||
Audit fee | 13,000 | ||
Miscellaneous | 11,419 | ||
Total expenses | 2,832,637 | ||
Net investment income | 2,297,556 | ||
Realized Gain On Investments | |||
Net realized gain on investment transactions | 14,389 | ||
Net Increase In Net Assets Resulting From Operations | $ | 2,311,945 | |
See Notes to Financial Statements
| COMMAND FUNDS | 15 |
COMMAND Government Fund
Statement of Changes in Net Assets (Unaudited)
Six Months Ended December 31, 2003 | Year Ended June 30, 2003 | |||||||
Increase In Net Assets |
| |||||||
Operations | ||||||||
Net investment income | $ | 2,297,556 | $ | 10,084,812 | ||||
Net realized gain on investment transactions | 14,389 | 12,133 | ||||||
Net increase in net assets resulting from operations | 2,311,945 | 10,096,945 | ||||||
Dividends and distributions to shareholders (Note 1) | (2,311,945 | ) | (10,096,945 | ) | ||||
Fund share transactions (at $1 per share) | ||||||||
Proceeds from shares sold | 1,837,023,322 | 4,975,047,494 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 2,241,128 | 9,929,182 | ||||||
Cost of shares reacquired | (2,252,855,445 | ) | (4,876,025,207 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (413,590,995 | ) | 108,951,469 | |||||
Total increase (decrease) | (413,590,995 | ) | 108,951,469 | |||||
Net Assets | ||||||||
Beginning of period | 1,017,309,417 | 908,357,948 | ||||||
End of period | $ | 603,718,422 | $ | 1,017,309,417 | ||||
See Notes to Financial Statements
| 16 | Visit our website at www.jennisondryden.com |
Financial Highlights
| DECEMBER 31, 2003 | SEMI-ANNUAL REPORT | |
COMMAND Government Fund
COMMAND Government Fund
Financial Highlights (Unaudited)
| Six Months Ended December 31, 2003 | ||||
Per Share Operating Performance: | ||||
Net asset value, beginning of period | $ | 1.000 | ||
Net investment income and net realized gains | 0.003 | |||
Dividends and distributions to shareholders | (0.003 | ) | ||
Net asset value, end of period | $ | 1.000 | ||
Total Return(a): | 0.26 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 603,718 | ||
Average net assets (000) | $ | 922,281 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | .61 | %(b) | ||
Expenses, excluding distribution and service (12b-1) fees | .49 | %(b) | ||
Net investment income | .50 | %(b) | ||
| (a) | Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for periods of less than one full year are not annualized. |
| (b) | Annualized. |
See Notes to Financial Statements
| 18 | Visit our website at www.jennisondryden.com |
| Year Ended June 30, | ||||||||||||||||||
| 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||
| $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||
| 0.010 | 0.020 | 0.054 | 0.051 | 0.046 | ||||||||||||||
| (0.010 | ) | (0.020 | ) | (0.054 | ) | (0.051 | ) | (0.046 | ) | |||||||||
| $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||
| 1.04 | % | 2.11 | % | 5.52 | % | 5.23 | % | 4.74 | % | |||||||||
| $ | 1,017,309 | $ | 908,358 | $ | 782,240 | $ | 687,364 | $ | 714,390 | |||||||||
| $ | 996,171 | $ | 916,475 | $ | 756,716 | $ | 714,655 | $ | 739,779 | |||||||||
| .59 | % | .56 | % | .57 | % | .58 | % | .56 | % | |||||||||
| .46 | % | .43 | % | .45 | % | .45 | % | .44 | % | |||||||||
| 1.01 | % | 1.96 | % | 5.30 | % | 5.12 | % | 4.63 | % | |||||||||
See Notes to Financial Statements
| COMMAND FUNDS | 19 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited)
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
| ALASKA 2.8% | ||||||||
Roaring Fork Mun. Prods. LLC,, Hsg. Fin. Corp. Mtge., F.R.W.D., | ||||||||
| VMIG1 | $ | 15,985 | 1.36%, 1/2/04, Ser. 02-15 | $ | 15,985,000 | |||
Valdez Marine Terminal Rev., | ||||||||
| VMIG2 | 5,000 | Ser. 1994B, | 5,000,000 | |||||
| VMIG2 | 6,900 | Ser. 1994C, | 6,900,000 | |||||
ARCO Trans Proj., A.N.N.M.T., Ser. 1994B | ||||||||
| VMIG2 | 6,250 | 2.00%, 1/2/04, | 6,250,000 | |||||
Phillips Proj., A.N.N.M.T., | ||||||||
| VMIG2 | 5,000 | Ser. 1994A, | 5,000,000 | |||||
| VMIG2 | 4,500 | Ser. 1994C, | 4,500,000 | |||||
| 43,635,000 | ||||||||
| ARIZONA 3.7% | ||||||||
Pima Cnty. Ind. Dev. Auth. Sngl. Fam. Mtge. Rev., A.M.T., | ||||||||
| NR | 5,300 | 1.13%, 1/23/04 | 5,300,000 | |||||
Draw Down Bonds., A.M.T. | ||||||||
| NR | 44,985 | 1.12%, 1/26/04 | 44,985,000 | |||||
Roaring Fork Mun. Prods. LLC, A.M.T., Ser. 02, F.R.W.D., | ||||||||
| A-1+(e) | 4,060 | 1.43%, 1/2/04 | 4,060,000 | |||||
| �� | Tucson & Pima Cnty. Indl., Dev. Auth. Sngl. Fam. Mtge. Rev., A.M.T., | |||||||
| NR | 2,715 | 1.14%, 1/26/04 | 2,715,000 | |||||
| 57,060,000 | ||||||||
| CALIFORNIA 2.0% | ||||||||
California St., Dept. Wtr. Res. Pwr. Supply, Ser. B2, F.R.D.D., | ||||||||
| VMIG1 | 5,600 | 1.33%, 1/2/04 | 5,600,000 | |||||
California St., R.A.N., Ser. A-6, | ||||||||
| VMIG1 | 10,000 | 2.00%, 6/23/04 | 10,044,046 | |||||
California Statewide Cmntys. Dev. Auth. | ||||||||
| VMIG2 | 10,000 | 1.38%, 1/2/04 | 10,000,000 | |||||
See Notes to Financial Statements
| 20 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Long Beach Hbr. Rev., A.M.T., Ser. A | ||||||||
| VMIG1 | $ | 4,000 | 4.00%, 5/14/04 | $ | 4,040,647 | |||
Los Angeles Cnty. Hsg. Auth. Mutli-Fam. Hsg. Rev., Malibu Meadows, | ||||||||
| A-1+(e) | 1,600 | 1.25%, 1/2/04 | 1,600,000 | |||||
| 31,284,693 | ||||||||
| COLORADO 3.4% | ||||||||
Adams Cnty. Hosp. Rev., Platte Valley Med. Ctr., F.R.W.D., Ser. B, | ||||||||
| A-1(e) | 9,310 | 1.22%, 1/7/04 | 9,310,000 | |||||
Colorado Edl. & Cultural Facs. Auth. Rev., Vail Mountain Sch. Proj., F.R.W.D. | ||||||||
| VMIG1 | 5,000 | 1.35%, 1/2/04 | 5,000,000 | |||||
Colorado Hlth. Facs. Auth. Rev., Sisters Charity Hlth. Sys., A.N.N.M.T., | ||||||||
| VMIG1 | 16,310 | Ser. A, | 16,310,000 | |||||
| VMIG1 | 16,225 | Ser. B, | 16,225,000 | |||||
Denver Cnty. Hsg., Circle Vlge. Proj., F.R.W.D., | ||||||||
| A-1+(e) | 2,365 | 1.20%, 1/7/04 | 2,365,000 | |||||
Denver Hlth. & Hosp. Auth. Healthcare Rev., F.R.D.D., Ser. A | ||||||||
| VMIG1 | 1,500 | 1.37%, 1/2/04 | 1,500,000 | |||||
Dove Valley Metro. Dist., Arapahoe Cnty., A.N.N.M.T., G.O. | ||||||||
| A-1(e) | 2,545 | 1.20%, 11/1/04 | 2,545,000 | |||||
| 53,255,000 | ||||||||
| CONNECTICUT 0.5% | ||||||||
Connecticut St. Hsg. Fin. Auth., Hsg. Mtge. Fin. Prog., A.M.T., A.N.N.M.T., Ser. F2 | ||||||||
| VMIG1 | 8,000 | 1.20%, 12/22/04 | 8,000,000 | |||||
| DELAWARE 0.2% | ||||||||
Delaware St. Econ. Dev. Auth. Rev., Gas Facs. Delmarva Pwr. & Lt., A.M.T. F.R.D.D., | ||||||||
| VMIG2 | 3,000 | 1.57%, 1/2/04 | 3,000,000 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 21 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
| DISTRICT OF COLUMBIA 1.0% | ||||||||
District of Columbia Hsg. Fin. Agcy. Mtge. Rev., Sngl. Fam., A.M.T., A.N.N.M.T., F.R.M.D. | ||||||||
| NR | $ | 15,000 | 1.14%, 1/23/04 | $ | 15,000,000 | |||
| FLORIDA 6.3% | ||||||||
Collier Cnty. Hlth. Facs. | ||||||||
| VMIG1 | 10,000 | 1.00%, 1/23/04 | 10,000,000 | |||||
Florida St. Mun. Secs. Trust Cert., | ||||||||
| A-1(e) | 2,300 | 1.38%, 1/2/04 | 2,300,000 | |||||
Highlands Cnty. Hlth. Facs. Auth. Rev., | ||||||||
| VMIG2 | 10,000 | 1.45%, 1/2/04 | 10,000,000 | |||||
Orange Cnty. Hlth. Facs. Auth. Rev., F.R.W.D., F.S.A., Ser. 171 | ||||||||
| A-1(e) | 46,350 | 1.38%, 1/2/04 | 46,350,000 | |||||
Sunshine St. Govt. Fin. Rev. Notes | ||||||||
| P1 | 19,605 | Ser. G | 19,605,000 | |||||
Ser. A | ||||||||
| P1 | 10,800 | 1.08%, 1/13/04 | 10,800,000 | |||||
| 99,055,000 | ||||||||
| GEORGIA 6.4% | ||||||||
Crisp Cnty., Solid Waste Mgmt. Auth. Rev., A.M.T., F.R.W.D., | ||||||||
| VMIG1 | 4,735 | 1.72%, 1/2/04 | 4,735,000 | |||||
Dalton Util. Rev., F.R.W.D., F.S.A., M.E.R.L.O.T., Ser. A2, | ||||||||
| VMIG1 | 4,965 | 1.21%, 1/7/04 | 4,965,000 | |||||
De Kalb Cnty. Hosp. Auth. Rev., Dekalb Med. Ctr. Inc. Proj., F.R.W.D., Ser. B, | ||||||||
| VMIG1 | 11,725 | 1.25%, 1/2/04 | 11,725,000 | |||||
Fulton Cnty. Dev. Auth. Rev., Westminster Sch. Dist. Proj., F.R.W.D. | ||||||||
| VMIG1 | 9,000 | 1.15%, 1/7/04 | 9,000,000 | |||||
Fulton Cnty. Residential Care Facs., Lenbrook Square, F.R.D.D., | ||||||||
| A-1(e) | 13,100 | 1.37%, 1/2/04 | 13,100,000 | |||||
See Notes to Financial Statements
| 22 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Georgia Mun. Elec. Auth., Proj. One, Ser. 85A, | ||||||||
| VMIG1 | $ | 34,000 | 1.09%, 1/15/04 | $ | 34,000,000 | |||
Richmond Cnty. Hosp. Auth., Univ. Hlth. Svcs., F.R.W.D., R.A.N., | ||||||||
| VMIG1 | 23,000 | 1.15%, 1/7/04 | 23,000,000 | |||||
| 100,525,000 | ||||||||
| HAWAII 1.4% | ||||||||
Honolulu City & Cnty. | ||||||||
A.N.N.M.T., G.O., F.G.I.C., | ||||||||
| VMIG1 | 4,700 | 1.18%, 12/2/04 | 4,700,000 | |||||
| VMIG1 | 16,600 | 1.18%, 12/2/04 | 16,600,000 | |||||
| 21,300,000 | ||||||||
| ILLINOIS 9.0% | ||||||||
Channahon Rev., Morris Hosp., F.R.W.D., Ser. B | ||||||||
| A-1+(e) | 5,670 | 1.34%, 1/2/04 | 5,670,000 | |||||
Chicago, Stockyards Ind Proj., F.R.W.D., Ser. 96A | ||||||||
| A-1+(e) | 10,070 | 1.23%, 1/7/04 | 10,070,000 | |||||
Chicago Park Dist., F.R.W.D., Ser. ZTC 23 | ||||||||
| VMIG1 | 10,195 | 1.38%, 1/2/04 | 10,195,000 | |||||
Chicago Hsg. Auth. Cap. Prog. Rev., F.R.W.D., Ser. 576 | ||||||||
| A-1(e) | 5,235 | 1.34%, 1/2/04 | 5,235,000 | |||||
Chicago Park Dist., F.R.W.D., Ser. ZTC 46 | ||||||||
| VMIG1 | 3,360 | 1.38%, 1/2/04 | 3,360,000 | |||||
Chicago Wtr. Rev., F.R.W.D., M.E.R.L.O.T., Ser. 00TT | ||||||||
| VMIG1 | 14,385 | 1.21%, 1/7/04 | 14,385,000 | |||||
Illinois Dev. Fin. Auth. Rev., Amer. Coll. Of Surgeons, F.R.W.D., | ||||||||
| A-1+(e) | 13,100 | 1.30%, 1/2/04 | 13,100,000 | |||||
Illinois Hlth. Facs. Auth. Rev., Resurrection Hlth., F.R.D.D., Ser. A, | ||||||||
| VMIG1 | 8,000 | 1.30%, 1/2/04 | 8,000,000 | |||||
Illinois Hlth. Facs. Auth. Rev., | ||||||||
Little Co. of Mary Hosp., F.R.W.D., | ||||||||
| A-1+(e) | 5,000 | 1.34%, 1/2/04 | 5,000,000 | |||||
Mem. Hlth. Sys., F.R.D.D., | ||||||||
| VMIG1 | 3,000 | 1.37%, 1/2/04 | 3,000,000 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 23 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Illinois Hsg. Dev. Auth. Rev., Homeowner Mtge., Ser. A-1 | ||||||||
| VMIG1 | $ | 5,095 | 1.13%, 4/29/04 | $ | 5,095,000 | |||
Illinois St. Sales Tax Rev. | ||||||||
F.R.W.D., | ||||||||
| VMIG1 | 9,650 | Ser. ZTC 32, 1.38%, 1/2/04 | 9,650,000 | |||||
| VMIG1 | 4,950 | Ser. ZTC 45, 1.38%, 1/2/04 | 4,950,000 | |||||
Peoria Cnty. Swge. Fac. Rev., Caterpillar, Inc. Proj., A.M.T., F.R.W.D., | ||||||||
| P-1 | 4,300 | 1.48%, 1/2/04 | 4,300,000 | |||||
Wheeling Multi-Fam. Hsg. Rev., Woodland Creek Proj., F.R.W.D., | ||||||||
| A-1+(e) | 17,655 | 1.30%, 1/2/04 | 17,655,000 | |||||
Woodridge Multi-Fam. Hsg. Rev., Hinsdale Lake Terrace Apts., F.R.W.D., F.S.A., | ||||||||
| AAA | 20,760 | 1.30%, 1/2/04 | 20,760,000 | |||||
| 140,425,000 | ||||||||
| IOWA 0.9% | ||||||||
Iowa Fin. Auth. Sngl. Fam. Rev., A.N.N.M.T., Ser. F, | ||||||||
| VMIG1 | 4,000 | 1.20%, 12/21/04 | 4,000,000 | |||||
Iowa Higher Ed. Ln. Auth. Rev., Morningside Coll., R.A.N., Ser. G, | ||||||||
| SP-1+(e) | 1,500 | 2.00%, 5/24/04 | 1,502,319 | |||||
Sergeant Bluff Ind. Dev. Rev., Sioux City Brick & Tile Proj., A.M.T., F.R.W.D., | ||||||||
| NR | 8,480 | 1.55%, 1/2/04 | 8,480,000 | |||||
| 13,982,319 | ||||||||
| KANSAS 0.1% | ||||||||
Kansas St. Dev. Fin. Auth. Rev., Hays Med. Ctr., F.R.D.D, Ser. N | ||||||||
| VMIG1 | 2,200 | 1.37%, 1/2/04 | 2,200,000 | |||||
| KENTUCKY 0.6% | ||||||||
Kentucky St. Prpty. & Bldgs. Comm. Rev., F.R.W.D., Ser. ZTC 34 | ||||||||
| VMIG1 | 9,900 | 1.38%, 1/2/04 | 9,900,000 | |||||
See Notes to Financial Statements
| 24 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
| LOUISIANA 1.5% | ||||||||
Ascension Parish, A.M.T., Ser. 99, | ||||||||
| P-1 | $ | 10,000 | 1.10%, 2/23/04 | $ | 10,000,000 | |||
Louisiana St. Offshore Terminal Deepwater Port. Rev. Loop Inc., Ser. A, | ||||||||
| A-1(e) | 8,000 | 1.10%, 1/29/04 | 8,000,000 | |||||
Roaring Fork Mun. Prods. LLC, LA Hsg. Auth., A.M.T., F.R.W.D., Ser. 2, | ||||||||
| VMIG1 | 5,860 | 1.43%, 1/2/04 | 5,860,000 | |||||
| 23,860,000 | ||||||||
| MAINE 0.9% | ||||||||
Dover & Foxcroft Rev., Pleasant River Lumber Co. Proj., F.R.W.D., | ||||||||
| A-1(e) | 2,350 | 1.40%, 1/7/04 | 2,350,000 | |||||
Maine St. Hsg. Auth. Mtge., A.M.B.A.C., F.R.W.D., Ser. E-1, | ||||||||
| VMIG1 | 8,585 | 1.15%, 1/2/04 | 8,585,000 | |||||
York Rev., Stonewall Realty LLC, Proj., A.M.T., F.R.W.D., | ||||||||
| VMIG1 | 2,605 | 1.65%, 1/2/04 | 2,605,000 | |||||
| 13,540,000 | ||||||||
| MARYLAND 0.3% | ||||||||
Maryland S. Cmnty. Dev. Admin., Residential, A.M.T., A.N.N.M.T., Ser E, | ||||||||
| VMIG1 | 4,500 | 1.25%, 12/21/04 | 4,500,000 | |||||
| MASSACHUSETTS 1.0% | ||||||||
Medford, B.A.N., G.O. | ||||||||
| VMIG1 | 15,500 | 2.00%, 9/10/04 | 15,590,155 | |||||
| MICHIGAN 2.4% | ||||||||
Michigan Job Dev. Auth. Rev., Frankenmuth Proj., F.R.M.D., Ser. A, | ||||||||
| A-1(e) | 6,000 | 1.20%, 1/2/04 | 6,000,000 | |||||
Michigan St. | ||||||||
| VMIG1 | 7,500 | 1.15%, 11/2/04 | 7,500,000 | |||||
Michigan St. Bldg. Rev. | ||||||||
| P-1 | 10,000 | 1.05%, 2/12/04 | 10,000,000 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 25 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Michigan Strategic Fd. Ltd., Amer. Litho Proj., A.M.T., F.R.W.D., | ||||||||
| NR | $ | 4,650 | 1.49%, 1/2/04 | $ | 4,650,000 | |||
Walled Lake Cons. Sch. Dist., G.O., F.R.W.D., Ser. ZTC 18, | ||||||||
| VMIG1 | 10,000 | 1.38%, 1/2/04 | 10,000,000 | |||||
| 38,150,000 | ||||||||
| MINNESOTA 2.2% | ||||||||
Bloomington Coml. Dev. Rev. 94th Str. Assoc. Proj., F.R.W.D., | ||||||||
| A-1+(e) | 4,165 | 1.30%, 1/2/04 | 4,165,000 | |||||
James Avenue Assoc. Proj., F.R.W.D., | ||||||||
| A-1+(e) | 4,045 | 1.30%, 1/2/04 | 4,045,000 | |||||
Bloomington Port. Auth. Tax Rev., Ref., Mall of America, F.R.W.D., F.S.A., Ser. B, | ||||||||
| VMIG1 | 16,700 | 1.30%, 1/2/04 | 16,700,000 | |||||
Chanhassen Multi-Fam. Rev., Hsg. Vlge. Ponds Proj., A.M.T., A.N.N.M.T., F.R.W.D., | ||||||||
| VMIG1 | 5,530 | 1.48%, 1/2/04 | 5,530,000 | |||||
St. Paul Hsg. & Redev. Auth. Heating Rev., F.R.W.D., Ser. 99D, | ||||||||
| A-1+(e) | 3,370 | 1.30%, 1/2/04 | 3,370,000 | |||||
| 33,810,000 | ||||||||
| MISSISSIPPI 1.7% | ||||||||
Jackson Cnty. Poll. Ctrl. Rev., Chevron U.S.A., Inc., Proj., F.R.D.D. | ||||||||
| P-1 | 3,400 | 1.30%, 1/2/04 | 3,400,000 | |||||
Roaring Fork Mun. Prods. LLC, A.M.T., | ||||||||
| VMIG1(c) | 9,330 | 1.35%, 2/26/04, Ser. 01-14 | 9,330,000 | |||||
| VMIG1(c) | 5,000 | 1.25%, 4/1/04, Ser. 02-4 | 5,000,000 | |||||
Mississippi Home Corp., A.M.T., F.R.W.D., Ser. 00-18, | ||||||||
| VMIG1 | 8,190 | 1.43%, 1/2/04 | 8,190,000 | |||||
| 25,920,000 | ||||||||
See Notes to Financial Statements
| 26 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
| MISSOURI 1.1% | ||||||||
Missouri St. Hlth. & Edl. Fac. Auth. Rev. Missouri Valley College, F.R.D.D., | ||||||||
| A-1+(e) | $ | 2,675 | 1.37%, 1/2/04 | $ | 2,675,000 | |||
St. Louis Univ., F.R.D.D., Ser. B | ||||||||
| VMIG1 | 3,800 | 1.37%, 1/2/04 | 3,800,000 | |||||
Roaring Fork Mun. Prods. LLC, MO Hsg. Dev. Comnty., A.M.T., F.R.W.D., | ||||||||
| A-1(e) | 10,445 | 1.43%, 1/2/04 | 10,445,000 | |||||
| 16,920,000 | ||||||||
| MONTANA 0.9% | ||||||||
Montana Fac. Fin. Auth. Rev., Sisters Charity Hlth. Sys. A.N.N.M.T., | ||||||||
| VMIG1 | 14,210 | 1.23%, 12/1/04 | 14,210,000 | |||||
| NEBRASKA 0.3% | ||||||||
York Ind. Dev. Rev., Kroy Bldg. Prods., Inc. Proj., A.M.T., F.R.W.D., | ||||||||
| A-1(e) | 4,500 | 1.47%, 1/2/04 | 4,500,000 | |||||
| NEVADA 1.0% | ||||||||
Clark Cnty., F.R.W.D., Ser. ZTC 27, | ||||||||
| VMIG1 | 15,000 | 1.38%, 1/2/04 | 15,000,000 | |||||
| NEW JERSEY 2.4% | ||||||||
Hopewell Twnshp., G.O., B.A.N., | ||||||||
| NR | 19,404 | 2.00%, 11/19/04 | 19,549,362 | |||||
Lawrence Twnshp., G.O., B.A.N., | ||||||||
| NR | 3,750 | 1.375%, 7/15/04 | 3,755,047 | |||||
New Jersey Econ. Dev. Rev. | ||||||||
| VMIG1 | 1,700 | 1.10%, 1/7/04 | 1,700,000 | |||||
Sussex Cnty., G.O., B.A.N., | ||||||||
| VMIG1 | 12,742 | 2.00%, 11/12/04 | 12,834,366 | |||||
| 37,838,775 | ||||||||
| NEW MEXICO 0.6% | ||||||||
Roaring Fork Mun. Prods. LLC, Mtge. Fin. Auth. SFK, A.M.T., F.R.W.D., Ser. 00-1, | ||||||||
| A-1+(e) | 9,970 | 1.43%, 1/2/04 | 9,970,000 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 27 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
| NEW YORK 2.3% | ||||||||
New York City Mun. Wtr. Auth. Rev. | ||||||||
| P-1 | $ | 36,000 | 1.05%, 1/28/04 | $ | 36,000,000 | |||
| NORTH CAROLINA 0.5% | ||||||||
Halifax Cnty. Ind. Facs. & Poll. Ctrl. Fin. Auth. Rev., A.M.T., | ||||||||
| NR | 1,500 | 1.35%, 1/2/04 | 1,500,000 | |||||
Roaring Fork Mun. Prods. LLC, Durham Co. Allstate Vlge., A.M.T., F.R.W.D., | ||||||||
| A-1+(e) | 6,965 | 1.43%, 1/2/04, Ser. 01-8 | 6,965,000 | |||||
| 8,465,000 | ||||||||
| OHIO 2.4% | ||||||||
Cuyahoga Cnty. Hosp. Rev., W.O. Walker Ctr. Inc., A.M.B.A.C., F.R.W.D., Ser. II, | ||||||||
| A-1(e) | 11,690 | 1.00%, 1/7/04 | 11,690,000 | |||||
Delaware, G.O., B.A.N., | ||||||||
| NR | 9,000 | 1.50%, 2/10/04 | 9,005,448 | |||||
East Lake Ind. Dev. Rev., Astro Model Dev. Corp. Proj., A.M.T., F.R.W.D., | ||||||||
| NR | 1,940 | 1.55%, 1/2/04 | 1,940,000 | |||||
Ohio Hsg. Fin. Agcy. Multi-Fam. Hsg. Rev., 10 Wilmington Pl. Prog., F.R.W.D., Ser. B, | ||||||||
| A-1+(e) | 8,945 | 1.30%, 1/2/04 | 8,945,000 | |||||
Univ. of Cincinnati, B.A.N., Ser. 2003A, | ||||||||
| VMIG1 | 6,000 | 1.75%, 3/18/04 | 6,008,114 | |||||
| 37,588,562 | ||||||||
| OKLAHOMA 6.2% | ||||||||
Canadian Cnty. Home Fin. Auth. Sngl. Fam. Mtge. Rev., A.M.T., Ser. A, | ||||||||
| NR | 14,440 | 1.13%, 1/23/04 | 14,440,000 | |||||
Cleveland Cnty. Dev. Auth. Sngl. Fam., A.M.T., | ||||||||
| NR | 7,500 | 1.11%, 1/26/04 | 7,500,000 | |||||
Cleveland Cnty. Home Ln. Auth. Sngl. Fam. Mtge., A.M.T., Ser. 2003A, | ||||||||
| NR | 7,485 | 1.13%, 1/26/04 | 7,485,000 | |||||
See Notes to Financial Statements
| 28 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Oklahoma Hsg. Dev. Auth. Multi-Fam. Rev. Affordable Hsg., F.R.W.D., | ||||||||
| VMIG1 | $ | 33,500 | Ser. A, | $ | 33,500,000 | |||
| VMIG1 | 10,000 | Ser. B, | 10,000,000 | |||||
South Western Dev. Auth. Sngl. Fam. Mtge. | ||||||||
| AAA(e) | 7,500 | 1.09%, 1/9/04 | 7,500,000 | |||||
Tulsa Cnty. Ind. Auth. Cap. Impvt. Rev., | ||||||||
| A-1+(e) | 17,000 | 1.125%, 5/17/04 | 17,000,000 | |||||
| 97,425,000 | ||||||||
| OREGON 0.4% | ||||||||
Multinomah Cnty. Higher Ed. Rev., Concordia Univ. Portland Proj., F.R.D.D., | ||||||||
| VMIG1 | 1,415 | 1.37%, 1/2/04 | 1,415,000 | |||||
Oregon St. Hsg. & Cmnty. Svcs. Dept. Mtge. Rev., Sngl. Fam. Mtge. Proj., | ||||||||
| VMIG1 | 4,625 | 1.25%, 1/16/04 | 4,625,000 | |||||
| 6,040,000 | ||||||||
| PENNSYLVANIA 0.7% | ||||||||
Cumberland Cnty. Mun. Auth. Coll. Rev., Dickinson Coll., A.N.N.M.T., Ser. B, | ||||||||
| A-1+(e) | 5,000 | 1.11%, 11/1/04 | 5,000,000 | |||||
Fayette Cnty. Hosp. Auth. Sr. Hlth. & Hsg. Facs. Rev., Mount Macrina Manor Proj., F.R.W.D. | ||||||||
| A-1(e) | 4,345 | 1.34%, 1/2/04 | 4,345,000 | |||||
Pennsylvania St. Mun. Secs. Trust Cert., F.R.D.D., G.O., Ser. 00-110, | ||||||||
| A-1(e) | 850 | 1.38%, 1/2/04 | 850,000 | |||||
| 10,195,000 | ||||||||
| RHODE ISLAND 0.1% | ||||||||
Providence Hsg. Auth. Mutli-Fam. Rev., Cathedral Square, F.R.D.D., A.M.T., | ||||||||
| A-1(e) | 1,300 | 1.40%, 1/2/04 | 1,300,000 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 29 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
| SOUTH CAROLINA 0.4% | ||||||||
North Charleston, G.O., T.A.N. | ||||||||
| NR | $ | 6,000 | 1.75%, 3/15/04 | $ | 6,007,864 | |||
| SOUTH DAKOTA 0.5% | ||||||||
Grant Cnty. Poll. Ctrl. Rev., Otter Tail Pwr. Co. Proj., F.R.W.D., | ||||||||
| VMIG1 | 8,000 | 1.45%, 1/2/04 | 8,000,000 | |||||
| TENNESSEE 1.7% | ||||||||
Chattanooga Hlth. Edl. & Hsg. Fac. Brd. Rev. Phase I, F.R.W.D., Ser. A, | ||||||||
| A-1(e) | 10,075 | 1.25%, 1/2/04 | 10,075,000 | |||||
Clarksville Pub. Bldg. Auth., F.R.D.D. | ||||||||
| VMIG1 | 100 | 1.30%, 1/2/04 | 100,000 | |||||
Jacks on Engy. Auth. Gas Sys. Rev., F.R.W.D., | ||||||||
| VMIG1 | 4,200 | 1.15%, 1/7/04 | 4,200,000 | |||||
Memphis Elec. Sys. Rev., Putters, M.B.I.A., A.N.N.M.T., Ser 377, | ||||||||
| A-1+(e) | 12,000 | 1.28%, 12/9/04 | 12,000,000 | |||||
| 26,375,000 | ||||||||
| TEXAS 17.4% | ||||||||
ABN Amro Munitops Certs., G.O., S.E.M.M.T., Ser. 2003-22, | ||||||||
| VMIG1 | 8,000 | 1.05%, 2/25/04 | 8,000,000 | |||||
Austin Combined Util. Sys. Rev. Corp. Proj., T.E.C.P., Ser. A, | ||||||||
| P-1 | 26,053 | 1.08%, 3/10/04 | 26,053,000 | |||||
Brazos Hbr. Ind. Dev. Corp., Environ. Facs. Rev., ConocoPhillips Co. Proj., A.N.N.M.T., A.M.T., | ||||||||
| VMIG2 | 2,300 | 1.375%, 8/1/04 | 2,300,000 | |||||
Carroll Indpt. Sch. Dist., Sch. Bldg., G.O., A.N.N.M.T., | ||||||||
| VMIG1 | 29,800 | 1.35%, 4/1/04 | 29,800,000 | |||||
Collin Cnty. Hsg. Fin. Corp. Multi-Fam. Rev., Huntington Apts. Proj., F.R.W.D., Ser. 96, | ||||||||
| A-1+(e) | 6,155 | 1.33%, 1/2/04 | 6,155,000 | |||||
See Notes to Financial Statements
| 30 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Desoto Ind. Dev. Auth. Rev., Solar Turbines, Inc. Proj., F.R.W.D., | ||||||||
| P-1 | $ | 7,050 | 1.33%, 1/2/04 | $ | 7,050,000 | |||
El Paso, G.O., T.E.C.P., Ser. A, | ||||||||
| P-1 | 10,500 | 1.10%, 2/10/04 | 10,500,000 | |||||
Harris Cnty. Hlth. Facs. Dev. Corp. Rev., | ||||||||
| A-1+(e) | 3,000 | 1.30%, 1/2/04 | 3,000,000 | |||||
Houston Indpt. Sch. Dist., F.S.A., F.R.W.D., Ser. ZTC 21, | ||||||||
| VMIG1 | 12,700 | 1.38%, 1/2/04 | 12,700,000 | |||||
North Harris Montgomery Cmnty. Coll. Dist., A.N.N.M.T., G.O., | ||||||||
| VMIG1 | 14,830 | 1.35%, 4/1/04 | 14,830,000 | |||||
Roaring Fork Mun. Prods. LLC, Houston Hsg., F.R.W.D., Ser. 03-3, | ||||||||
| A-1+(e) | 7,000 | 1.38%, 1/2/04 | 7,000,000 | |||||
San Antonio Wtr. Sys. Rev., | ||||||||
| P-1 | 14,500 | 1.05%, 1/28/04 | 14,500,000 | |||||
San Antonio Wtr. Rev., F.R.W.D., M.E.R.L.O.T., Ser. 00VV, | ||||||||
| VMIG1 | 17,420 | 1.21%, 1/7/04 | 17,420,000 | |||||
San Jacinto Coll. Dist., A.N.N.M.T., G.O., | ||||||||
| VMIG1 | 14,500 | 1.35%, 4/1/04 | 14,500,000 | |||||
Spring Branch Indpt. Sch. Dist., F.R.W.D., Ser. ZTC28, | ||||||||
| VMIG1 | 11,880 | 1.38%, 1/2/04 | 11,880,000 | |||||
Texas Dept. Hsg. & Cmnty. A.M.T., T.E.C.P., | ||||||||
| VMIG1 | 57,470 | 1.07%, 4/14/04 | 57,470,000 | |||||
| VMIG1 | 4,000 | 1.10%, 4/14/04 | 3,999,401 | |||||
Texas St. Coll. Student Loans., F.R.W.D., Ser. ZTC 5A, | ||||||||
| VMIG1 | 8,000 | 1.43%, 1/2/04 | 8,000,000 | |||||
Texas St. Pub. Fin. Auth., Ser B., | ||||||||
| P-1 | 6,000 | 1.08%, 1/13/04 | 6,000,000 | |||||
| P-1 | 9,659 | 1.10%, 1/22/04 | 9,659,000 | |||||
| 270,816,401 | ||||||||
| UTAH 3.7% | ||||||||
Intermountain Pwr. Agcy., Ser. B-4, | ||||||||
| A-1(e) | 25,000 | 1.08%, 1/12/04 | 25,000,000 | |||||
See Notes to Financial Statements
| COMMAND FUNDS | 31 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | |||||
Intermountain Pwr. Agcy., Spec. Oblig., Sixth Crossover, Ser. B-3, | ||||||||
| A-1(e) | $ | 32,000 | 1.05%, 2/5/04 | $ | 32,000,000 | |||
| 57,000,000 | ||||||||
| VERMONT 1.2% | ||||||||
Vermont Edl. & Hlth. Bldgs. Fin. Agcy. Rev. Middlebury Coll. Proj., A.N.N.M.T., | ||||||||
| A-1+(e) | 9,900 | 1.10%, 11/1/04, Ser. 2002B | 9,900,000 | |||||
| A-1+(e) | 9,135 | 1.10%, 11/1/04, Ser. 88A | 9,135,000 | |||||
| 19,035,000 | ||||||||
| VIRGINIA 1.1% | ||||||||
Halifax Cnty. Ind. Dev. Auth. Rev., VA | ||||||||
| VMIG1 | 15,000 | 1.16%, 2/13/04 | 15,000,000 | |||||
Louisa Ind. Dev. Auth., G.O. | ||||||||
| VMIG1 | 2,400 | 1.26%, 1/14/04 | 2,400,000 | |||||
| 17,400,000 | ||||||||
| WASHINGTON 2.1% | ||||||||
Port of Pasco Econ. Dev. Corp., Douglas Fruit Co., Inc., A.M.T., F.R.W.D., | ||||||||
| A-1+(e) | 3,935 | 1.44%, 1/2/04 | 3,935,000 | |||||
Washington St. F.R.W.D., | ||||||||
| VMIG1 | 12,935 | 1.38%, 1/2/04 | 12,935,000 | |||||
| VMIG1 | 13,570 | 1.38%, 1/2/04 | 13,570,000 | |||||
Washington St. Econ. Dev. Fin. Auth. Rev., Pioneer Human Svcs., F.R.D.D., | ||||||||
| VMIG1 | 1,650 | 1.37%, 1/2/04 | 1,650,000 | |||||
| 32,090,000 | ||||||||
| WISCONSIN 6.5% | ||||||||
Everest Area Sch. Dist., T.R.A.N., | ||||||||
| NR | 5,000 | 1.125%, 8/30/04 | 5,000,803 | |||||
Franklin Pub. Sch. Dist., T.R.A.N., | ||||||||
| NR | 4,980 | 1.25%, 9/3/04 | 4,984,947 | |||||
Northland Pines Sch. Dist., T.A.N., | ||||||||
| NR | 5,000 | 1.35%, 9/10/04 | 5,008,511 | |||||
See Notes to Financial Statements
| 32 | Visit our website at www.jennisondryden.com |
| Moody’s Rating | Principal Amount (000) | Description(a) | Value (Note 1) | ||||||
Sun Prairie Area Sch. Dist., T.R.A.N., | |||||||||
| NR | $ | 7,400 | 1.30%, 9/10/04 | $ | 7,410,051 | ||||
Wisconsin St. | |||||||||
| VMIG1 | 52,000 | 2.25%, 6/15/04 | 52,258,641 | ||||||
G.O., F.R.W.D., Ser. ZTC20, | |||||||||
| VMIG1 | 19,745 | 1.38%, 1/2/04 | 19,745,000 | ||||||
Wisconsin St. Hlth. Edl. Facs. Auth. Rev., Franciscan Sisters, F.R.W.D, Ser. B | |||||||||
| A1(e) | 6,500 | 1.29%, 1/2/04 | 6,500,000 | ||||||
| 100,907,953 | |||||||||
Total Investments 101.8% (amortized cost $1,587,076,722)(d) | 1,587,076,722 | ||||||||
Liabilities in excess of other assets (1.8%) | (27,922,442 | ) | |||||||
Net Assets 100% | $ | 1,559,154,280 | |||||||
| (a) | The following abbreviations are used in the portfolio descriptions: |
A.M.B.A.C.—American Municipal Bond Assurance Corporation.
A.M.T.—Alternative Minimum Tax.
A.N.N.M.T.—Annual Mandatory Tender.
B.A.N.—Bond Anticipation Note.
F.G.I.C.—Financial Guaranty Insurance Company.
F.R.D.D.—Floating Rate (Daily) Demand Note (b).
F.R.M.D.—Floating Rate (Monthly) Demand Note (b).
F.R.W.D.—Floating Rate (Weekly) Demand Note (b).
F.S.A.—Financial Security Assurance.
G.O.—General Obligation.
M.B.I.A.—Municipal Bond Insurance Corporation.
M.E.R.L.O.T.—Municipal Exempt Receipt-Liquid Optional Tender.
R.A.N.—Revenue Anticipation Notes.
S.E.M.M.T.—Semi-Annual Mandatory Tender.
T.A.N.—Tax Anticipation Note.
T.E.C.P.—Tax-Exempt Commercial Paper.
T.R.A.N.—Tax and Revenue Anticipation Note.
| (b) | For purposes of amortized cost valuation, the maturity date of Floating Rate Demand Notes considered to be the next date on which the rate of interest is adjusted or the date on which the security can be redeemed at par. |
| (c) | Indicates illiquid securities restricted as to resale. The aggregate cost of such securities was $14,330,000. The aggregate value of $14,330,000 was approximately 0.92% of net assets. |
| (d) | The cost for federal income tax purposes is substantially the same as for financial reporting purposes. |
| (e) | Standard & Poor’s rating. |
| NR—Not | Rated by Moody’s or Standard & Poor’s. |
See Notes to Financial Statements
| COMMAND FUNDS | 33 |
COMMAND Tax-Free Fund
Portfolio of Investments
as of December 31, 2003 (Unaudited) Cont’d.
The industry classification of portfolio holdings and liabilities in excess of other assets as a percentage of net assets as of December 31, 2003 was as follows:
Commercial Banks | 38.0 | % | |
Asset Backed Securities | 19.9 | ||
Federal Credit Agencies | 12.8 | ||
Life Insurance | 11.3 | ||
Short-Term Business Credit | 6.4 | ||
Security Brokers & Dealer | 5.9 | ||
Municipals | 4.2 | ||
Oil & Gas | 1.8 | ||
Finance Services | 1.2 | ||
Bank Holding Companies—Domestic | 0.3 | ||
Liabilities in excess of other assets | (1.8 | ) | |
| 100.0 | % | ||
See Notes to Financial Statements
| 34 | Visit our website at www.jennisondryden.com |
COMMAND Tax-Free Fund
Statement of Assets and Liabilities
as of December 31, 2003 (Unaudited)
Assets | |||
Investments, at amortized cost which approximates market value | $ | 1,587,076,722 | |
Cash | 22,483 | ||
Receivable for Fund shares sold | 24,156,616 | ||
Interest receivable | 3,225,166 | ||
Prepaid expenses | 34,191 | ||
Total assets | 1,614,515,178 | ||
Liabilities | |||
Payable for Fund shares reacquired | 32,500,513 | ||
Payable for investments purchased | 21,909,106 | ||
Management fee payable | 624,763 | ||
Distribution fee payable | 183,550 | ||
Accrued expenses and other liabilities | 119,809 | ||
Dividends payable | 23,157 | ||
Total liabilities | 55,360,898 | ||
Net Assets | $ | 1,559,154,280 | |
Net assets were comprised of: | |||
Shares of beneficial interest, at $.01 par value | $ | 15,591,543 | |
Paid-in capital in excess of par | 1,543,562,737 | ||
Net Assets, December 31, 2003 | $ | 1,559,154,280 | |
Net asset value, offering price and redemption price per share | $1.00 | ||
See Notes to Financial Statements
| COMMAND FUNDS | 35 |
COMMAND Tax-Free Fund
Statement of Operations
Six Months Ended December 31, 2003 (Unaudited)
Net Investment Income | ||||
Income | ||||
Interest and discount earned | $ | 9,630,499 | ||
Expenses | ||||
Management fee | 3,798,424 | |||
Distribution fee | 1,119,511 | |||
Transfer agent’s fees and expenses | 97,000 | |||
Custodian’s fees and expenses | 69,000 | |||
Registration fees | 49,000 | |||
Reports to shareholders | 29,000 | |||
Legal fees and expenses | 20,000 | |||
Audit fee | 15,000 | |||
Trustees’ fees | 9,000 | |||
Miscellaneous | 12,259 | |||
Total expenses | 5,218,194 | |||
Less: Custodian fee credit (Note 1) | (385 | ) | ||
| 5,217,809 | ||||
Net investment income | 4,412,690 | |||
Realized Gain On Investments | ||||
Net realized gain on investment transactions | 125,189 | |||
Net Increase In Net Assets Resulting From Operations | $ | 4,537,879 | ||
See Notes to Financial Statements
| 36 | Visit our website at www.jennisondryden.com |
COMMAND Tax-Free Fund
Statement of Changes (Unaudited)
| Six Months Ended December 31, 2003 | Year Ended June 30, 2003 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 4,412,690 | $ | 16,007,738 | ||||
Net realized gain on investment transactions | 125,189 | 62,913 | ||||||
Net increase in net assets resulting from operations | 4,537,879 | 16,070,651 | ||||||
Dividends and distributions to shareholders (Note 1) | (4,537,879 | ) | (16,070,651 | ) | ||||
Fund share transactions (at $1 per share) | ||||||||
Proceeds from shares sold | 2,868,465,079 | 5,930,677,397 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 4,423,290 | 15,494,915 | ||||||
Cost of shares reacquired | (3,097,422,896 | ) | (5,902,513,575 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (224,534,527 | ) | 43,658,737 | |||||
Total increase (decrease) | (224,534,527 | ) | 43,658,737 | |||||
Net Assets | ||||||||
Beginning of period | 1,783,688,807 | 1,740,030,070 | ||||||
End of period | $ | 1,559,154,280 | $ | 1,783,688,807 | ||||
See Notes to Financial Statements
| COMMAND FUNDS | 37 |
COMMAND Tax-Free Fund
Financial Highlights (Unaudited)
| Six Months Ended December 31, 2003 | ||||
Per Share Operating Performance: | ||||
Net asset value, beginning of period | $ | 1.000 | ||
Net investment income and net realized gains | 0.003 | |||
Dividends and distributions to shareholders | (0.003 | ) | ||
Net asset value, end of period | $ | 1.000 | ||
Total Return(a) | 0.26 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 1,559,154 | ||
Average net assets (000) | $ | 1,781,483 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | .58 | %(b) | ||
Expenses, excluding distribution and service (12b-1) fees | .46 | %(b) | ||
Net investment income | .51 | %(b) | ||
| (a) | Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for periods of less than one full year are not annualized. |
| (b) | Annualized. |
See Notes to Financial Statements
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| Year Ended June 30, | ||||||||||||||||||
| 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||
| $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||
| 0.009 | 0.015 | 0.034 | 0.032 | 0.027 | ||||||||||||||
| (0.009 | ) | (0.015 | ) | (0.034 | ) | (0.032 | ) | (0.027 | ) | |||||||||
| $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||
| .88 | % | 1.51 | % | 3.42 | % | 3.19 | % | 2.77 | % | |||||||||
| $ | 1,783,689 | $ | 1,740,030 | $ | 1,744,816 | $ | 1,429,087 | $ | 1,476,732 | |||||||||
| $ | 1,850,684 | $ | 1,839,473 | $ | 1,600,345 | $ | 1,515,352 | $ | 1,549,367 | |||||||||
| .57 | % | .58 | % | .57 | % | .58 | % | .59 | % | |||||||||
| .45 | % | .46 | % | .45 | % | .46 | % | .46 | % | |||||||||
| .87 | % | 1.48 | % | 3.32 | % | 3.15 | % | 2.72 | % | |||||||||
See Notes to Financial Statements
| COMMAND FUNDS | 39 |
Notes to Financial Statements
(Unaudited)
COMMAND Money Fund, COMMAND Government Fund and COMMAND Tax-Free Fund (each a “Fund” and collectively, the “Funds”) are each registered under the Investment Company Act of 1940 as an open-end, diversified management investment company whose shares are offered exclusively to participants in the COMMAND Account Program of Wachovia Securities LLC. The COMMAND Money Fund seeks high current income, preservation of capital and maintenance of liquidity by investing in a diversified portfolio of money market instruments maturing in 13 months or less. The COMMAND Government Fund seeks high current income, preservation of capital and maintenance of liquidity by investing in a portfolio of U.S. government securities maturing in 13 months or less. The COMMAND Tax-Free Fund seeks high current income that is exempt from federal income taxes, consistent with the preservation of capital and maintenance of liquidity. The Fund invests in a diversified portfolio of short-term, tax-exempt securities with maturities of 13 months or less that are issued by states, municipalities and their agencies (or authorities). Some securities may be subject to the federal alternative minimum tax (AMT). The Funds invest in a portfolio of money market instruments whose ratings are within the two highest ratings categories by a nationally recognized statistical rating agency or, if not rated, are of comparable quality. The ability of the issuers of the securities held by the Funds to meet their obligations may be affected by economic and/or political developments in a specific industry, state or region.
Note 1. Accounting Policies
The following is a summary of significant generally accepted accounting policies followed by the Funds in the preparation of their financial statements.
Securities Valuation: Portfolio securities of the Funds are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of any discount or premium. If the amortized cost method is determined not to represent fair value, the fair value shall be determined by or under the direction of the Board of Trustees. The Funds may hold up to 10% of their net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). None of the issues of restricted securities held by the Funds at December 31, 2003 include registration rights under which the Fund may demand registration by the issuer.
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Repurchase Agreements: In connection with transactions in repurchase agreements with United States Financial Institutions, it is the Funds’ policy that its custodian or designated subcustodians under triparty repurchase agreements, as the case may be, take possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase agreement exceeds one business day, the value of collateral is marked-to-market on a daily basis to ensure adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited.
Securities Transactions and Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of securities are calculated on the identified cost basis. Interest income including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. The Funds amortize premiums and accrete discounts on purchases of portfolio securities as adjustments to interest income.
Dividends and Distributions: Each Fund declares daily dividends from net investment income and net realized short-term capital gains or losses. Payment of dividends is made monthly. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles.
Taxes: For federal income tax purposes, each Fund is treated as a separate taxable entity. It is each Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.
Custody Fee Credits: The COMMAND Tax-Free Fund has an arrangement with its custodian bank, whereby uninvested monies earn credits which reduce the fees charged by the custodian. Such custody fee credits are presented as a reduction of gross expenses in the accompanying Statement of Operations.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
| COMMAND FUNDS | 41 |
Notes to Financial Statements
(Unaudited) Cont’d
Note 2. Agreements
Each Fund has a management agreement with Prudential Investments LLC (“PI”). Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of each Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers of the Funds, occupancy and certain clerical and bookkeeping costs of the Funds. The Funds bear all other costs and expenses.
The management fee paid to PI is computed daily and payable monthly based on the following annual rates:
Average Daily Net Assets | COMMAND Money | COMMAND Government | COMMAND Tax-Free | |||
First $500 million | .500% | .400% | .500% | |||
Second $500 million | .425% | .400% | .425% | |||
Third $500 million | .375% | .375% | .375% | |||
Excess of $1.5 billion | .350% | .375% | .375% |
Each Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of the shares of each Fund. Each Fund compensates PIMS for distributing and servicing each Fund’s shares pursuant to the plan of distribution regardless of expenses actually incurred, at an annual rate of .125 of 1% of the average daily net assets of each Fund’s shares. The distribution fees are accrued daily and payable monthly.
PI, PIM and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
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Note. 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Funds’ transfer agent. During the six months ended December 31, 2003, each Fund incurred fees for the services of PMFS of approximately:
COMMAND Money | $ | 2,494,800 | |
COMMAND Government | $ | 74,800 | |
COMMAND Tax-Free | $ | 93,000 |
As of December 31, 2003, the following amounts were due to PMFS from the Funds:
COMMAND Money | $ | 372,200 | |
COMMAND Government | $ | 10,500 | |
COMMAND Tax-Free | $ | 14,800 |
Note 4. Capital
The Funds offer Class A shares. The Funds may also offer Class Z and Class S shares (COMMAND Tax-Free Fund may only offer Class S). There are no Class Z or Class S shares currently issued and outstanding.
| COMMAND FUNDS | 43 |
| n MAIL | n TELEPHONE | |
Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | (800) 225-1852 | |
| TRUSTEES |
Delayne Dedrick Gold•Robert F. Gunia•Robert E. La Blanc•Robin B. Smith•Stephen D. Stoneburn• Clay T. Whitehead |
| OFFICERS |
| Judy A. Rice, President•Robert F. Gunia, Vice President•Grace C. Torres, Treasurer and Principal Financial and Accounting Officer•Marguerite E.H. Morrison, Chief Legal Officer and Assistant Secretary•Jonathan D. Shain, Secretary•Maryanne Ryan, Anti-Money Laundering Compliance Officer |
| MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
| INVESTMENT ADVISOR | Prudential Investment Management, Inc. | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
| DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 14th Floor 100 Mulberry Street Newark, NJ 07102 | ||
| CUSTODIAN | State Street Bank and Trust Company | One Heritage Drive North Quincy, MA 02171 | ||
| TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 8098 Philadelphia, PA 19101 | ||
| INDEPENDENT AUDITORS | KPMG LLP | 757 Third Avenue New York, NY 10017 | ||
| FUND COUNSEL | Sullivan & Cromwell LLP | 125 Broad Street New York, NY 10004 | ||
| COMMAND Funds | ||||||||||
COMMAND Money Fund | COMMAND Government Fund | COMMAND Tax-Free Fund | ||||||||
Nasdaq | CDMXX | CDFXX | CGMXX | |||||||
CUSIP | 20050F103 | 20050R107 | 20050D108 | |||||||
Mutual Funds:
| ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
| COMMAND Fund | ||||||||||
| COMMAND Money Fund | COMMAND Government Fund | COMMAND Tax-Free Fund | ||||||||
Nasdaq | CDMXX | CDFXX | CGMXX | |||||||
CUSIP | 20050F103 | 20050R107 | 20050D108 | |||||||
CFS IFS-A087742
Item 2—Code of Ethics—Not required as this is not an annual filing.
Item 3—Audit Committee Financial Expert—
The registrant’s Board has determined that Mr. David Carson, member of the Board’s Audit Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.
Item 4—Principal Accountant Fees and Services—Not required in this filing
Item 5—Reserved
Item 6—Reserved
Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies—Not required in this filing
Item 8—Reserved
Item 9—Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 10—Exhibits
(a) Code of Ethics—Not applicable with semi-annual filing
(b) Certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act—Attached hereto
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) Command Government Fund | ||
| By (Signature and Title)* | /s/ Jonathan D. Shain | |
Jonathan D. Shain Secretary | ||
Date February 23, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Judy A. Rice | |
Judy A. Rice President and Principal Executive Officer | ||
Date February 23, 2004
By (Signature and Title)* | /s/ Grace C. Torres | |
Grace C. Torres Treasurer and Principal Financial Officer | ||
Date February 23, 2004
| * | Print the name and title of each signing officer under his or her signature. |