As filed with the Securities and Exchange Commission on December 6, 2006
Investment Company Act File Number 811-4179
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Cortland Trust, Inc.
(Exact name of registrant as specified in charter)
600 Fifth Avenue
New York, NY 10020
(Address of principal executive offices) (Zip code)
Rosanne Holtzer
c/o Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: March 31
Date of reporting period: September 30, 2006
Item 1: Report to Stockholders
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CORTLAND 600 Fifth Avenue
TRUST, INC. New York, NY 10020
(212) 830-5200
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Dear Shareholder:
We are pleased to present the semi-annual report of Cortland Trust, Inc. (the
"Company") for the period April 1, 2006 through September 30, 2006.
As of September 30, 2006, the Cortland General Money Market Fund had 67,265
shareholder accounts and net assets of $5,440,297,353.
The U.S. Government Fund had 3,017 shareholder accounts and net assets of
$333,559,869.
The Municipal Money Market Fund had 2,998 shareholder accounts and net assets of
$210,317,542.
We thank you for your support of Cortland Trust, Inc., and look forward to
continuing to serve your cash management needs.
Sincerely,
\s\ Steven W. Duff
Steven W. Duff
President
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CORTLAND TRUST, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
As a shareholder of the Fund, you incur the following ongoing costs: management
fees and other Fund expenses. You may also incur distribution and/or service
(12b-1) fees. This example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period April 1, 2006 through September 30, 2006.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
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Cortland General Money Market Fund
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Cortland Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,021.00 $5.02
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Hypothetical (5% return before $1,000.00 $1,020.10 $5.01
expenses)
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Short Term Fund Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,020.90 $5.12
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Hypothetical (5% return before $1,000.00 $1,020.00 $5.11
expenses)
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Advantage Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,020.90 $5.17
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Hypothetical (5% return before $1,000.00 $1,019.95 $5.16
expenses)
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================================================================================
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Xpress Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,019.80 $6.28
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Hypothetical (5% return before $1,000.00 $1,018.85 $6.28
expenses)
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U.S. Government Fund
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Cortland Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,020.40 $5.01
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Hypothetical (5% return before $1,000.00 $1,020.10 $5.01
expenses)
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Advantage Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,020.20 $5.17
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Hypothetical (5% return before $1,000.00 $1,019.95 $5.16
expenses)
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Municipal Money Market Fund
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Cortland Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
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Actual $1,000.00 $1,012.90 $5.05
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Hypothetical (5% return before $1,000.00 $1,020.05 $5.06
expenses)
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- --------------------------------------------------------------------------------------------------------------------------
Advantage Shares Beginning Account Value Ending Account Value Expenses Paid During the
4/01/06 9/30/06 Period*
- --------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,012.80 $5.15
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Hypothetical (5% return before $1,000.00 $1,019.95 $5.16
expenses)
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<FN>
* Expenses are equal to the Fund's annualized expense ratios of 0.99%, 1.01%,
1.02% and 1.24%, for Cortland General Money Market Fund's Cortland shares,
Short Term Fund shares, Advantage shares and Xpress shares, respectively
and 0.99%, and 1.02% for the U.S. Government Fund's Cortland shares and
Advantage shares, respectively and 1.00%, and 1.02% for the Municipal Money
Market Fund's Cortland shares and Advantage Shares, respectively,
multiplied by the average account value over the period (April 1, 2006
through September 30, 2006), multiplied by 183/365 (to reflect the most
recent fiscal half-year).
</FN>
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Asset Backed Commercial Paper (12.11%)
- ------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 ASAP Funding Inc. 11/09/06 5.33% $ 24,856,729
100,000,000 ASAP Funding Inc. 10/20/06 5.40 99,718,167
30,000,000 ASAP Funding Inc. 10/20/06 5.41 29,915,292
30,000,000 Chesham Finance, Limited 10/23/06 5.29 29,903,383
40,000,000 Chesham Finance , Limited 10/02/06 5.40 39,994,000
50,000,000 Govco Incorporated 10/25/06 5.46 49,820,500
50,000,000 Govco Incorporated 10/18/06 5.47 49,872,736
45,000,000 Govco Incorporated 10/06/06 5.47 44,966,312
25,000,000 Greyhawk Funding, LLC 03/19/07 5.38 24,385,028
34,430,000 Lexington Parker Capital Company, LLC 01/12/07 5.35 33,912,340
152,012,000 Lockhart Funding, LLC 10/25/06 5.33 151,476,918
60,000,000 Lockhart Funding, LLC 10/26/06 5.33 59,780,000
20,000,000 Market Street Funding, LLC 10/17/06 5.29 19,953,200
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661,442,000 Total Asset Backed Commercial Paper 658,554,605
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Commercial Paper (2.33%)
- ------------------------------------------------------------------------------------------------------------------------
$ 18,100,000 Cornell University - Series 2004A 11/08/06 5.33% $ 17,999,123
20,000,000 Guam Power Authority
Insured by AMBAC Assurance Corp. 10/02/06 5.28 20,000,000
10,000,000 Maryland Health & Higher Education Facility Authority
(John Hopkins Health System Issue) - Series C 11/15/06 5.32 10,000,000
20,888,000 Maryland Health & Higher Education Facility Authority
(John Hopkins Health System Issue) - Series C 11/14/06 5.32 20,888,000
10,800,000 Maryland Health & Higher Education Facility Authority
(John Hopkins Health System Issue) - Series C 10/05/06 5.38 10,800,000
5,000,000 Tennessee School Board Authority 10/11/06 5.40 5,000,000
7,320,000 Tennessee School Board Authority 11/07/06 5.31 7,320,000
24,500,000 Texas PFA 10/04/06 5.40 24,500,000
10,000,000 Texas PFA - Series D-2 10/03/06 5.31 10,000,000
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126,608,000 Total Commercial Paper 126,507,123
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Domestic Certificates of Deposit (5.33%)
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$ 50,000,000 Amsouth Bank 10/19/06 5.29% $ 50,000,000
25,000,000 Amsouth Bank 10/19/06 5.46 25,000,000
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Domestic Certificates of Deposit (Continued)
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$ 30,000,000 Marshall & Ilsley Bank 10/10/06 5.48% $ 30,000,000
70,000,000 Wells Fargo Bank 04/20/07 5.25 70,000,000
50,000,000 Wilmington Trust Company 11/24/06 5.52 50,000,000
50,000,000 Wilmington Trust Company 12/07/06 5.47 50,000,000
15,000,000 Wilmington Trust Company 01/22/07 5.41 15,000,000
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290,000,000 Total Domestic Certificates of Deposit 290,000,000
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Eurodollar Certificates of Deposit (11.84%)
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$ 25,000,000 Calyon 01/19/07 5.26% $ 25,000,184
100,000,000 Credit Industriel et Commerical 12/15/06 5.35 99,999,509
50,000,000 Credit Suisse First Boston 12/22/06 5.55 49,996,582
100,000,000 Deutsche Bank A.G. 12/13/06 4.82 99,982,252
20,000,000 HBOS Treasury Services 10/31/06 5.44 20,000,000
90,000,000 HBOS Treasury Services 11/01/06 5.44 90,000,000
50,000,000 KBC Bank, N.V. 11/01/06 5.30 50,000,000
25,000,000 Societe Generale 04/19/07 5.31 25,000,000
100,000,000 Societe Generale 04/27/07 5.32 100,000,000
50,000,000 Societe Generale 12/05/06 4.75 50,000,092
34,000,000 Societe Generale 12/05/06 4.75 34,000,062
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644,000,000 Total Eurodollar Certificates of Deposit 643,978,681
- -------------- --------------
Floating Rate Securities (6.51%)
- ------------------------------------------------------------------------------------------------------------------------
$ 50,000,000 Bank of America Federal Funds Floater (b) 12/15/06 5.31% $ 50,000,000
40,000,000 Bank of America Federal Funds Floater (c) 05/15/07 5.32 40,000,000
30,000,000 Bear Stearns Federal Funds Floater (d) 01/19/07 5.46 30,000,000
100,000,000 Canadian Imperial Bank of Commerce (e) 02/12/07 5.34 100,000,000
9,100,000 CFM International Inc. Guaranteed Notes - Series 1999A (f)
Guaranteed General Electric Company 01/01/10 5.33 9,100,000
15,000,000 General Electric Capital Corporation Extendible Monthly
Securities (g) 10/17/07 5.43 15,000,000
40,000,000 Kreditbank (h) 05/22/07 5.35 40,000,000
25,000,000 Merrill Lynch & Co, Inc. (i) 05/14/07 5.29 25,000,000
45,000,000 Merrill Lynch Twelve Month Exchange (j) 08/03/07 5.39 45,000,000
- -------------- --------------
354,100,000 Total Floating Rate Securities 354,100,000
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The accompanying notes are an integral part of these financial statements.
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Foreign Commercial Paper (4.46%)
- ------------------------------------------------------------------------------------------------------------------------
$ 50,000,000 BancoSantander Central Hispano S.A. 10/20/06 4.74% $ 49,879,007
40,000,000 Danske Corporation 10/30/06 4.79 39,850,972
50,000,000 Depfa Bank, PLC 11/22/06 5.31 49,619,750
75,000,000 Yorkshire Building Society 12/21/06 5.34 74,111,531
30,000,000 Yorkshire Building Society 02/12/07 5.38 29,412,634
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245,000,000 Total Foreign Commercial Paper 242,873,894
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Letter of Credit Commercial Paper (2.01%)
- ------------------------------------------------------------------------------------------------------------------------
$ 35,000,000 ICICI Bank, Ltd.
LOC Fortis Bank S.A./N.V. 11/15/06 5.27% $ 34,775,125
30,000,000 ICICI Bank, Ltd.
LOC Fortis Bank S.A./N.V. 12/01/06 5.50 29,735,158
21,000,000 ICICI Bank, Ltd.
LOC Fortis Bank S.A./N.V. 12/01/06 5.50 20,809,095
11,915,000 IDB of theParish of Calcasieu, Inc.
LOC BNP Paribas 11/03/06 5.32 11,915,000
12,350,000 Walnut Energy Center Authority
LOC State Street bank & Trust Company 10/12/06 5.34 12,330,038
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110,265,000 Total Letter of Credit Commercial Paper 109,564,416
- -------------- --------------
Loan Participations (1.97%)
- ------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 Army and Air Force Exchange Service 10/25/06 5.20% $ 25,000,000
17,000,000 AXA Equitable Life Insurance Company (k) 03/21/07 5.35 17,000,000
65,000,000 COS-MAR Company (GE Petrochemical)
Guaranteed by General Electric Company 10/26/06 5.48 65,000,000
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107,000,000 Total Loan Participations 107,000,000
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Medium Term Note (1.93%)
- ------------------------------------------------------------------------------------------------------------------------
$ 55,000,000 Royal Bank of Canada 08/10/07 5.60% $ 55,000,000
50,000,000 Sigma Finance, Inc. 04/30/07 5.25 50,000,000
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105,000,000 Total Medium Term Note 105,000,000
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Other Notes (0.08%)
- ------------------------------------------------------------------------------------------------------------------------
$ 1,550,000 Butler County, OH GO BAN 10/12/06 4.60% $ 1,550,000
1,550,000 Butler County, OH GO BAN 09/20/07 5.50 1,550,000
1,500,000 North Canton, OH Real Estate Acquisition Notes 06/27/07 5.80 1,501,563
- -------------- --------------
4,600,000 Total Other Notes 4,601,563
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Promissory Note (0.92%)
- ------------------------------------------------------------------------------------------------------------------------
$ 50,000,000 The Goldman Sachs Group, Inc. 12/29/06 5.01% $ 50,000,000
- -------------- --------------
50,000,000 Total Promissory Note 50,000,000
- -------------- --------------
Repurchase Agreements (1.89%)
- ------------------------------------------------------------------------------------------------------------------------
$ 40,000,000 Annaly Mortgage Management, Inc. purchased on 09/29/06,
repurchase proceeds at maturity $40,017,633
(Collateralized by $195,224,987, GNMA, 4.500% to 5.375%,
due 06/20/32 to 06/20/33, value $40,800,000) 10/02/06 5.29% $ 40,000,000
33,000,000 Banc of America Securities LLC, purchased on 09/29/06,
repurchase proceeds at maturity $33,014,575
(Collateralized by $43,459,280, GNMA, 2.946% to 7.000%,
due 03/16/19 to 07/16/31, value $33,660,000) 10/02/06 5.30 33,000,000
30,000,000 UBS Securities LLC, purchased on 09/29/06,
repurchase proceeds at maturity $30,013,250
(Collateralized by $44,469,701, GNMA, 5.000% to 6.000%,
due 10/15/32 to 05/20/36, Value $30,604,186) 10/02/06 5.30 30,000,000
- -------------- --------------
103,000,000 Total Repurchase Agreements 103,000,000
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Time Deposit (2.11%)
- ------------------------------------------------------------------------------------------------------------------------
$ 115,000,000 Rabobank Nederland 10/02/06 5.44% $ 115,000,000
- -------------- --------------
115,000,000 Total Time Deposit 115,000,000
- -------------- --------------
U.S. Government Agency Medium Term Notes (2.76%)
- ------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Federal Home Loan Bank 08/14/07 5.58% $ 30,000,000
25,000,000 Federal Home Loan Bank 10/02/07 5.50 25,000,000
30,000,000 Federal Home Loan Mortgage Corporation 10/23/06 4.25 30,000,000
40,000,000 Federal Home Loan Mortgage Corporation 02/09/07 4.76 40,000,000
25,000,000 Federal Home Loan Mortgage Corporation 03/07/07 5.02 24,999,499
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150,000,000 Total U.S. Government Agency Medium Term Notes 149,999,499
- -------------- --------------
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The accompanying notes are an integral part of these financial statements.
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (14.02%)
- ------------------------------------------------------------------------------------------------------------------------
$ 1,880,000 361 Summit Blvd. LLC - Series 2003
LOC First Commercial Bank 05/01/28 5.37% $ 1,880,000
2,100,000 1212 Jackson, LLC - Series 2004
LOC Fifth Third Bank 09/01/24 5.37 2,100,000
1,940,000 1800 Indian Wood, Ltd. - Series 2005
LOC Fifth Third Bank 04/01/26 5.37 1,940,000
1,895,000 2150 Investment Company - Series 1997
LOC Fifth Third Bank 02/01/17 5.37 1,895,000
4,480,000 A&M Associates Project - Series 2002
LOC US Bank, N.A. 12/01/34 5.38 4,480,000
1,400,000 Adams County, CO Housing Agency
(Semper Village Apartments) - Series 2004C
Guaranteed by Federal National Mortgage Association 07/15/37 5.37 1,400,000
2,440,000 Alatrade Foods LLC - Series 2004
LOC Amsouth Bank 12/01/14 5.40 2,440,000
3,080,000 Alabama HOPO Realty Investment LLC - Series 2001
LOC SouthTrust Bank 12/01/21 5.40 3,080,000
3,870,000 Alabama Incentives Finance Authority, - Series 1999C
Insured by AMBAC Assurance Corp. 10/01/29 5.33 3,870,000
3,000,000 Allied Services LLC, Series 2006
LOC Fifth Third Bank 03/01/21 5.37 3,000,000
580,000 Alpine Capital Investment LLC - Series 1997B
LOC National City Bank 09/15/27 5.42 580,000
445,000 Andrews Laser Works Corporation - Series 1998
LOC National City Bank 05/01/08 5.42 445,000
1,000,000 Atlantic Tool & Die Company - Series 1996
LOC KeyBank, N.A. 12/01/11 5.35 1,000,000
1,970,000 Atlantic Tool & Die Company - Series 2002
LOC KeyBank, N.A. 03/01/17 5.35 1,970,000
458,000 Barnes & Thornburg LLP - Series 2003
LOC Fifth Third Bank 07/01/08 5.37 458,000
2,350,000 Barnes & Thornburg LLP - Series 2005
LOC Fifth Third Bank 12/01/55 5.37 2,350,000
7,713,000 BB Auto Land of Roswell, LLC - Series 2003A
LOC Bank of North Georgia 05/01/23 5.48 7,713,000
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 2,425,000 BBC, LLC - Series 2000
LOC Columbus Bank & Trust Company 11/01/20 5.32% $ 2,425,000
1,000,000 Beckfield Properties, LLC - Series 2004
LOC Fifth Third Bank 12/01/24 5.37 1,000,000
900,000 Bennett Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 5.37 900,000
970,000 Berkeley Square Retirement Center - Series 1998A
LOC Fifth Third Bank 02/01/13 5.39 970,000
4,000,000 Bluegrass Wireless LLC
LOC Fifth third Bank 02/01/12 5.37 4,000,000
3,180,000 Bob Sumerel Tire Co, Inc. - Series 1999
LOC Fifth Third Bank 04/01/19 5.37 3,180,000
2,900,000 Brookville Enterprises - Series 2004
LOC Fifth Third Bank 10/01/25 5.37 2,900,000
2,000,000 Budd Office Building Associate, Ltd. (Partnership Project) -
Series 1997
LOC Comerica Bank 10/01/47 5.35 2,000,000
2,450,000 Burke County, GA Development Authority IDRB - Series 2002
(Lichtenberg Holdings II, LLC)
LOC JPMorgan Chase Bank, N.A. 01/01/13 5.33 2,450,000
1,500,000 Butler County Surgical Properties, LLC - Series 2005
LOC Fifth Third Bank 07/01/25 5.37 1,500,000
4,830,000 Carmichael Imaging, LLC - Series 2002
LOC Regions Bank 11/01/10 5.33 4,830,000
3,300,000 CEGW, Inc.
LOC PNC Bank, N.A 03/31/09 5.36 3,300,000
1,990,000 Central Michigan Inns, LLC (Pohlcat Inc.) - Series 2000A
LOC Wachovia Bank, N.A. 04/01/30 5.38 1,990,000
4,500,000 Charles K. Blandin Foundation - Series 2004
LOC Wells Fargo Bank, N.A. 05/01/19 5.40 4,500,000
4,900,000 Charles William Properties, LLC - Series 2004
LOC Federal Home Loan Bank of Atlanta 08/01/29 5.32 4,900,000
3,165,000 Cheney Brothers, Inc. - Series 1996
LOC Wachovia Bank, N.A 12/01/16 5.48 3,165,000
790,000 Chuo Mubea Suspension Components Company - Series 2004
LOC Fifth Third Bank 01/01/11 5.37 790,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 11,200,000 Church of the Highlands, Inc. - Series 2006A
LOC Amsouth Bank 01/01/23 5.33% $ 11,200,000
2,745,000 Cinnamon Properties, Inc.
LOC US Bank, N.A. 04/01/20 5.32 2,745,000
2,300,000 Cirrus Development Ltd. - Series 1999
LOC US Bank, N.A. 05/01/14 5.32 2,300,000
5,875,000 City of Auburn, AL
Industrial Development and Infrastructure RB - Series 2004A
LOC Allied Irish Bank 05/01/24 5.32 5,875,000
1,665,000 City of Portland, OR EDRB (Broadway Project) - Series 2003B
Insured by AMBAC Assurance Corp. 04/01/11 5.30 1,665,000
1,295,000 Cole Investments LLC
LOC Fifth Third Bank 07/01/19 5.37 1,295,000
3,770,000 Columbus Area, Inc., OH - Series 2004
LOC Key Bank, N.A. 07/01/24 5.35 3,770,000
3,100,000 Columbus, GA Development Authority
(Woodnont Properties - Greystoneat Columbus Park Project)
- Series 2004
LOC Columbus Bank & Trust Company 12/01/24 5.37 3,100,000
3,880,000 Columbus, GA (Riverton Ford Inc. Project) - Series 2000
LOC Columbus Bank & Trust Company 04/01/20 5.33 3,880,000
3,000,000 Columbus, GA Development Authority Industrial Development RB
(CEDC/Bricken Financial Project) - Series 2006
LOC Wachovia Bank, N.A. 02/01/26 5.38 3,000,000
10,130,000 Columbus, GA Development Authority RB
(Woodmont Properties, LLC Greystone Farms II Project) -
Series 2006
LOC Columbus Bank & Trust Company 02/01/26 5.37 10,130,000
6,175,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2000
LOC Columbus Bank & Trust Company 09/01/20 5.37 6,175,000
11,275,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2002
LOC Columbus Bank & Trust Company 12/01/22 5.33 11,275,000
3,070,000 Columbus, GA Development Authority RB
(Rivertown Pediatric Project) - Series 2003
LOC Columbus Bank & Trust Company 05/01/23 5.37 3,070,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 1,340,000 Consolidated Equities, LLC - Series 1995
LOC Fifth Third Bank 12/01/25 5.37% $ 1,340,000
9,335,000 Country Club of the South - Series 2002
LOC Bank of North Georgia 12/01/31 5.42 9,335,000
4,800,000 Crestmont Nursing Home - Series 2004
LOC Fifth Third Bank 03/01/24 5.33 4,800,000
6,415,000 Cubba Capital, LLC - Series 2005A
LOC Comerica Bank 03/01/55 5.35 6,415,000
4,150,000 D & G Conduit LLC - Series 2003
LOC Amsouth Bank, N.A. 10/01/23 5.32 4,150,000
10,450,000 D.G.Y. Real Estate LP - Series 2000A
LOC PNC Bank, N.A. 05/01/20 5.36 10,450,000
7,245,000 Daniel Land Company - Series 2004
LOC Columbus Bank & Trust Company 09/01/29 5.37 7,245,000
2,010,000 Devin F. & Janis L. McCarthy - Series 1997
LOC US Bank, N.A. 07/01/17 5.32 2,010,000
6,280,000 Drury Inns, Inc.
LOC First Commercial Bank 03/01/20 5.44 6,280,000
3,525,000 Dussel Realty Investment LLC
LOC National City Bank 02/01/18 5.38 3,525,000
3,690,000 Eckert Seamans Cherin & Mellot, LLC - Series 2000
LOC PNC Bank, N.A. 01/01/15 5.36 3,690,000
1,000,000 Elmhurst Memorial Healthcare - Series 2004B
LOC Fifth Third Bank 01/01/34 5.33 1,000,000
8,450,000 Elsinore Properties Ltd. - Series 1999
LOC Fifth Third Bank 01/01/29 5.37 8,450,000
1,000,000 Falls Village Realty, LLC - Series 2004
LOC Fifth Third Bank 12/01/29 5.37 1,000,000
900,000 Family Sports & Lifestyle RB
LOC Fifth Third Bank 09/01/22 5.37 900,000
1,950,000 Fannin & Fannin LLC
LOC Fifth Third Bank 12/01/24 5.37 1,950,000
3,690,000 FE, LLC - Series 1998A
LOC Fifth Third Bank 04/01/28 5.33 3,690,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 1,500,000 Findlay Evangelical Presbyterian Church - Series 2004
LOC Fifth Third Bank 11/01/30 5.37% $ 1,500,000
7,000,000 Fiore Capital, LLC - Series 2005A
LOC M&I Marshall & Ilsley Bank 08/01/45 5.32 7,000,000
1,985,000 First Metropolitan Title Company - Series 1997
LOC LaSalle Bank, N.A. 05/01/22 5.37 1,985,000
1,440,000 First Park Place LLC
LOC Fifth Third Bank 12/01/19 5.37 1,440,000
11,575,000 Flint River Services, Inc. - Series 2005
LOC Columbus Bank & Trust Company 01/01/30 5.36 11,575,000
805,000 Follow Thru Land and Development, LLC - Series 1998
LOC Key Bank, N.A. 11/01/13 5.35 805,000
11,310,000 Ft. Northport, LLC, AL - Series 2004
LOC Regions Bank 12/01/31 5.33 11,310,000
1,365,000 G & J Properties II, LLC - Series 2002
LOC Fifth Third Bank 09/01/23 5.37 1,365,000
3,535,000 G & L Manufacturing Inc.
LOC Fifth Third Bank 07/01/20 5.37 3,535,000
3,405,000 Garden City Hospital Osteopathic - Series 1997
LOC National City Bank 10/01/17 5.33 3,405,000
11,330,000 Gastro Partners Land Company, LLC - Series 2005
LOC Union Planters Bank 03/01/35 5.32 11,330,000
1,500,000 Genesee County, MI Taxable Obligation Notes 11/01/08 5.42 1,500,000
900,000 Gilead Friends Church - Series 2002
LOC Fifth Third Bank 10/01/17 5.37 900,000
1,450,000 Goson Project - Series 1997
LOC Federal Home Loan Bank of Cincinnati 11/01/17 5.38 1,450,000
2,070,000 Grace Community Church of Amarillo - Series 2005
LOC Wells Fargo Bank, N.A. 02/01/30 5.33 2,070,000
5,850,000 Graf Brothers Flooring, Inc. - Series 2005
LOC Fifth Third Bank 05/01/20 5.37 5,850,000
1,400,000 Great Expectations Ltd. (Bass Chevrolet) - Series 1996
LOC Fifth Third Bank 07/01/17 5.42 1,400,000
1,405,000 HCH, LLC - Series 2000
LOC Key Bank,N.A. 08/01/15 5.35 1,405,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 3,375,000 Healtheum, LLC - Series 2004
LOC Wells Fargo Bank, N.A. 11/01/29 5.37% $ 3,375,000
2,365,000 Henderson, OH Regional Authority
LOC Fifth Third Bank 07/01/23 5.37 2,365,000
6,700,000 Holland-Sheltair Aviation Funding, LLC - Series 2005-B4
LOC Mellon Bank, N.A. 05/01/35 5.32 6,700,000
1,810,000 Home City Ice Company & HC Transport Inc. - Series 2004
LOC US Bank,N.A. 05/01/19 5.37 1,810,000
1,800,000 Hoosier Stamping Manufacturing Corp. - Series 2004
LOC Fifth Third Bank 07/01/36 5.37 1,800,000
925,000 Hope Realty, Ltd. & Harmony Realty, Ltd. (Kurtz Bros., Inc.) -
Series 2000
LOC KeyBank, N.A. 08/01/15 5.37 925,000
1,785,000 Hopkins Property of Talladega LLC RB
LOC Federal Home Loan Bank of Atlanta 10/01/16 4.28 1,785,000
1,800,000 Hopkins Waterhouse LLC Project
LOC National City Bank 06/01/20 5.38 1,800,000
2,805,000 Hostun LLC - Series 2004
LOC US Bank,N.A. 12/01/27 5.40 2,805,000
1,850,000 HRH Capital LLC - Series 2002
LOC Fifth Third Bank 03/01/22 5.37 1,850,000
2,930,000 Hudson Toyota And Hyundai Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 5.37 2,930,000
1,000,000 Illinois Development Finance Authority
(Harbortown Industry Inc. Project) - Series 2000
LOC LaSalle Bank, N.A. 12/01/20 5.41 1,000,000
5,745,000 Indiana HEFA (Porter Project) - Series 2005B
LOC Fifth Third Bank 06/01/19 5.33 5,745,000
1,637,500 IOP Properties LLC
LOC Fifth Third Bank 04/01/44 5.37 1,637,500
1,400,000 Jacksons Food Stores, Inc. - Series 2006
LOC Key Bank, N.A. 03/01/16 5.35 1,400,000
1,020,000 James B. Krewatch & Marden H. Krewatch
Revocable Living Trust - Series 2005
LOC Fifth Third Bank 11/01/25 5.37 1,020,000
635,000 KBL Capital Fund, Inc. (BH Reality Limited Partnership) -
Series 1996A
LOC Fifth Third Bank 05/01/21 5.32 635,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 3,301,000 KFDT L.P. - Series 2005
LOC Fifth Third Bank 04/01/35 5.37% $ 3,301,000
2,355,000 Kingston Healthcare Company - Series 1997A
LOC Fifth Third Bank 11/01/17 5.32 2,355,000
4,715,000 Kingston Healthcare Company - Series 2003A
LOC Fifth Third Bank 08/01/25 5.33 4,715,000
1,815,000 Kingston Healthcare Company - Series 1998A
LOC Fifth Third Bank 03/01/18 5.32 1,815,000
1,000,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997
LOC Wells Fargo Bank, N.A. 06/01/27 5.32 1,000,000
4,090,000 Kool Capital, LLC
LOC Michigan National Bank 04/01/29 5.48 4,090,000
2,130,000 L3 Corporation - Series 2002
LOC Fifth Third Bank 11/01/17 5.37 2,130,000
4,575,000 Lakeland Income Properties, LLC - Series 2004
LOC Federal Home Loan Bank 04/01/29 5.33 4,575,000
3,500,000 Laminations, Inc. & Santana Products - Series 1999
LOC PNC Bank, N.A. 08/31/15 5.36 3,500,000
5,805,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project)
LOC Fifth Third Bank 03/01/15 5.38 5,805,000
2,245,000 Le Sportsac Inc. - Series 2005
LOC Fifth Third Bank 11/01/14 5.37 2,245,000
565,000 Lee County, FL Multifamily HFA RB
(Crossings at Cape Coral Apartments Project) - Series 1999B
LOC Suntrust Bank 06/01/14 5.42 565,000
12,650,000 Lexington Financial Services, LLC Health Care RB - Series 2001
LOC LaSalle Bank, N.A. 02/01/26 5.36 12,650,000
3,020,000 Lock Inns, Inc. - Series 2003
LOC Bank of North Georgia 02/01/23 5.42 3,020,000
1,695,000 Lockland Development Company Ltd. - Series 2000
LOC US Bank, N.A. 07/01/20 5.37 1,695,000
500,000 LRC - B Wadsworth Investors, Ltd. - Series 1997
LOC US Bank, N.A. 09/01/17 5.47 500,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 LRC - Meadows Investors LLC - Series 2004
LOC JPMorgan Chase Bank, N.A. 12/01/34 5.41% $ 1,000,000
6,885,000 Madison, WI Community Development Authority RB
(Block 89 Project) - Series 1996A 01/01/19 5.32 6,885,000
5,880,000 Madison, WI Community Development Authority RB
(Block 89 Project) - Series 2000 07/01/20 5.32 5,880,000
895,000 Manatee County, FL Multifamily HFA RB - Series 2002B
(La Mirada Gardens Project)
LOC Suntrust Bank 11/01/33 5.43 895,000
2,422,100 Materials Processing Inc. - Series 2004
LOC Fifth Third Bank 09/01/34 5.37 2,422,100
2,875,000 Maximum Principle Amount Limited Partnership
(Riverview Medical Office Building) - Series 1997
LOC National City Bank 11/01/17 5.38 2,875,000
6,850,000 MBE Investment Company LLC - Series 2004-A
LOC Comerica Bank 12/01/54 5.35 6,850,000
7,610,000 MCSH Real Estate Investors, LLC - Series 2004
LOC First Tennessee Bank, N.A. 09/01/21 5.32 7,610,000
1,075,000 Miami River Stone Company - Series 2002
LOC US Bank, N.A. 08/01/09 5.39 1,075,000
1,130,000 Michigan City, IN (Consolidated Biscuit Company)
LOC Fifth Third Bank 10/01/13 5.37 1,130,000
2,135,000 Michigan HEFA (Hope College) - Series 1996M
LOC Fifth Third Bank 10/01/16 5.37 2,135,000
905,000 Milwaukee, WI (Historic Third Ward Parking Project) - Series 1999
LOC Northern Trust Bank 09/01/28 5.42 905,000
1,810,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Inc.) - Series 1995
LOC Amsouth Bank 06/01/10 5.33 1,810,000
2,050,000 Mississippi Business Finance Corporation, IDRB
(Colle Towing Project) - Series 2004
LOC Regions Bank 10/01/19 5.33 2,050,000
4,800,000 Mississippi Business Finance Corporation IDRB
(Pottery Barn Inc. Project) - Series 2004
LOC Bank of America, N.A. 06/01/24 5.33 4,800,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Mississippi Business Finance Corporation IDRB
(Wade Inc. Project) - Series 2006
LOC Regions Bank 02/01/21 5.33% $ 3,000,000
3,930,000 Mississippi Business Finance Corporation IDRB
(TTW Farm Products Inc.)
LOC Amsouth Bank 11/01/11 5.33 3,930,000
7,225,000 Mississippi Business Finance Corporation IDRB
(Lextron-Visteon Leasing Project) - Series 2003
LOC JPMorgan Chase Bank, N.A. 12/01/27 5.34 7,225,000
2,660,000 Montgomery Cancer Center LLC - Series 1997
LOC Wachovia Bank, N.A. 10/01/12 5.33 2,660,000
7,460,000 Montgomery County, PA (Brookside Manor Apartments)
Collateralized by Federal National Mortgage Association 08/15/31 5.33 7,460,000
5,265,000 Montgomery County, PA (Kingswood Apartments Project)
Collateralized by Federal National Mortgage Association 08/15/31 5.33 5,265,000
865,000 Montgomery, AL IDB (The Jobs Company, LLC Project) - Series 1996C
LOC Columbus Bank & Trust Company 07/01/16 5.32 865,000
10,000,000 Moore Orthopedic Clinic, LLC - Series 2006
LOC Nations Bank of South Carolina 08/01/31 5.37 10,000,000
2,115,000 Mount Carmel West Medical Office Building LP - Series 1999
LOC National City Bank of Michigan/Illinois 08/01/19 5.38 2,115,000
1,800,000 Mrs. K.C. Jordan & Associates, Inc.
LOC Fifth Third Bank 04/01/23 5.37 1,800,000
2,900,000 Nebar Investments, LLC - Series 2005
LOC Fifth Third Bank 07/01/50 5.37 2,900,000
4,455,000 New Hampshire HEFA (Weeks Medical Center) - Series 2005B
LOC Allied Irish Bank 07/01/35 5.28 4,455,000
1,615,000 New Lexington Clinic, P.S.C. - Series 2003
LOC Fifth Third Bank 05/01/18 5.37 1,615,000
2,000,000 New York State HFA RB (345 East 94th Street)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/31 5.33 2,000,000
9,000,000 New York State HFA RB (Saxony Housing) - Series 1997A
Collateralized by Federal National Mortgage Association 05/15/30 3.80 9,000,000
1,600,000 NO S Properties, LLC - Series 2004
LOC Fifth Third Bank 08/01/24 5.37 1,600,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 7,455,000 North Lagoon Partners, Inc. - Series 2004
LOC Columbus Bank & Trust Company 10/01/29 5.32% $ 7,455,000
1,815,000 NPI Capital, LLC - Series 1999A
LOC Michigan National Bank 07/01/29 5.42 1,815,000
7,779,000 Nugent Sand Company - Series 1999
LOC National City Bank of Kentucky 11/01/11 5.38 7,779,000
6,900,000 Olathe, KS IDRB ( Diamant Boart Project) - Series 1997B
LOC Svenska Handelsbanken 03/01/27 5.48 6,900,000
5,840,000 Opelika IDA (Opelika Industrial Park Project) - Series 1998A
Insured by MBIA Insurance Corp. 06/01/23 5.35 5,840,000
1,225,000 Ordeal Properties LLC - Series 1997
LOC KeyBank, N.A. 10/01/12 5.35 1,225,000
1,030,000 Oswego County, NY IDA Civic Facilities (OH Properties, Inc Project - B)
LOC Manufacturers & Traders & Trust Co. 06/01/24 5.37 1,030,000
2,475,000 Oxmoor West, LLC - Series 2006
LOC First Commercial Bank 04/01/26 5.32 2,475,000
2,290,000 Parisi Investment, LP & Supply Co. - Series 1998
LOC US Bank, N.A. 05/01/18 5.32 2,290,000
1,000,000 PBSI Properties, LLC - Series 2004
LOC Huntington National Bank 03/01/34 5.42 1,000,000
1,865,000 Peachtree Crest Professional Offices - Series 2003
LOC Bank of North Georgia 03/01/23 5.42 1,865,000
3,900,000 Pennsylvania Economic Development Finance Authority
(Repete Associates Project) - Series 2005 B3
LOC PNC Bank,N.A. 08/01/25 5.33 3,900,000
2,565,000 Pomeroy Investments, LLC - Series 1997
LOC US Bank, N.A. 05/01/17 5.32 2,565,000
1,275,000 R.M.D. Corporation
LOC Fifth Third Bank 06/01/13 5.37 1,275,000
3,300,000 Radiation Oncology Partners, LLP
LOC SouthTrust Bank 08/01/18 5.33 3,300,000
4,290,000 Rawcar Group, LLC - Series 2006
LOC National City Bank of the Midwest 04/01/36 5.38 4,290,000
2,435,000 Realty Holdings Co. LLC - Series 2004
LOC Fifth Third Bank 05/01/24 5.37 2,435,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 4,845,000 Reynolds Road Fitness Center, - Series 1998
LOC Fifth Third Bank 01/01/19 5.37% $ 4,845,000
3,490,000 Robert C. Fox Jr. (Fox Racing Shoe Project) - Series A
LOC Comerica Bank 06/01/33 5.37 3,490,000
4,035,000 Rockwood Quarry LLC - Series 2002
LOC Fifth Third Bank 12/01/22 5.33 4,035,000
3,550,000 Rogers Bridge Road & Southern Properties, LLC - Series 2002
LOC Bank of North Georgia 01/01/23 5.47 3,550,000
770,000 S & L Plastic Inc.
LOC Fleet Bank 07/01/08 5.35 770,000
1,035,000 S & S Partnership (Model Graphics) - Series 1999
LOC US Bank 09/01/19 5.42 1,035,000
10,238,000 Saber Management LLC - Series 2006
LOC Charter One Bank, N.A. 07/01/56 5.35 10,238,000
1,298,000 Saginaw County, MI 03/01/08 5.37 1,298,000
1,350,000 Sand Run Nursery & Preserve LLC - Series 2004
LOC US Bank,N.A. 03/01/24 5.39 1,350,000
2,475,000 Savoy Properties, Ltd. - Series 2000
LOC KeyBank,N.A. 08/01/20 5.35 2,475,000
2,400,000 Schenectady County, NY
Metroplex Development Authority Revenue - Series 2005B
Insured by FSA 08/01/28 5.32 2,400,000
2,800,000 Security Self-Storage, Inc. - Series 2005
LOC Fifth Third Bank 05/01/35 5.37 2,800,000
4,305,000 Security Self-Storage, Inc. - Series 1999
LOC Bank One 02/01/19 5.38 4,305,000
3,330,000 Servaas, Inc. - Series 2003
LOC Fifth Third Bank 03/01/13 5.37 3,330,000
3,225,000 Shepherd Capital LLC
LOC Fifth Third Bank 03/15/49 5.48 3,225,000
4,765,000 Smugglers Notch Management Company, Ltd. and
Smugglers Notch Investment Company, Ltd. - Series 2000
LOC KeyBank,N.A. 09/01/15 5.35 4,765,000
7,000,000 Southeast Alabama Gas District RB (Lateral Project) - Series 2000
Insured by AMBAC Assurance Corp. 06/01/25 5.33 7,000,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 6,700,000 Southern Central Communications Corporation - Series 2003
LOC Fifth Third Bank 04/01/18 5.33% $ 6,700,000
1,680,000 Southern Orthopaedic Properties LLC - Series 2001
LOC Columbus Bank & Trust Company 10/01/21 5.33 1,680,000
2,700,000 Southwestern Ohio Steel, Inc.
LOC US Bank, N.A. 04/01/08 5.38 2,700,000
1,260,000 Stallard-Schrier Family LP - Series 1996
LOC Fifth Third Bank 09/01/16 5.39 1,260,000
980,000 State Crest Ltd. - Series 2000
LOC Fifth Third Bank 06/01/23 5.37 980,000
5,101,000 Stonegate-Partners I, LLC (Stonegate Partners Project) - Series 2002
LOC US Bank, N.A. 06/01/34 5.38 5,101,000
9,000,000 SWC Princeton LLC
LOC Compass Bank 03/01/32 5.33 9,000,000
1,030,000 T.D. Management Ltd. - Series 1996
LOC Fifth Third Bank 01/01/11 5.39 1,030,000
2,200,000 Tampa Bay, FL (Elders Land Development) - Series 2003
LOC Fifth Third Bank 09/01/23 5.37 2,200,000
2,705,000 Tant Real Estate, LLC - Series 2003
LOC Columbus Bank & Trust Company 03/01/23 5.33 2,705,000
3,220,000 Taylor Station Surgery Center Project - Series 2002
LOC National City Bank 12/01/22 5.38 3,220,000
7,125,000 Thayer Properties II, LLC - Series 2001
LOC Columbus Bank & Trust Company 09/01/21 5.40 7,125,000
2,730,000 The Hennegan Company - Series 2004
LOC US Bank, N.A. 10/01/11 5.32 2,730,000
6,210,000 The Shoppes at Edgewater - Series 2003
LOC Amsouth Bank 01/01/23 5.33 6,210,000
6,980,000 Three Reading LP
LOC Federal Home Loan Bank of Pittsburg 06/01/24 5.39 6,980,000
1,820,000 Tisdel Holdings Inc. - Series 2000
LOC Huntington National Bank 09/01/20 5.47 1,820,000
2,985,000 Town of Islip, NY IDA (Brentwood Real Estate LLC) - Series 2000
LOC Citybank, N.A. 11/01/20 5.35 2,985,000
6,170,000 Triple Crown Investments, LLC - Series 2004
LOC Federal Home Loan Bank of Dallas 08/01/25 5.32 6,170,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 2,035,000 Trotman Bay Minette, Inc. - Series 2000
LOC Columbus Bank & Trust Company 01/01/21 5.32% $ 2,035,000
2,690,000 Twelfth Street Partners, LLC - Series 2005
LOC Fifth Third Bank 04/01/25 5.37 2,690,000
4,635,000 Unico Alloys & Metals - Series 2004
LOC National City Bank 08/01/24 5.32 4,635,000
830,000 Vincent Enterprise & Partners - Series 2000
LOC KeyBank, N.A. 03/01/20 5.35 830,000
1,590,000 Vista Funding Corporation - Series 1997A
LOC Fifth Third Bank 07/01/15 5.37 1,590,000
820,000 Walt Sweeney Ford - Series 1996
LOC Fifth Third Bank 01/01/12 5.42 820,000
545,000 Warrior Roofing Manufacturing, Inc. - Series 2001
LOC Columbus Bank & Trust Company 09/01/26 5.45 545,000
3,720,000 Watson's Dayton Properties, LLC - Series 2002A
LOC US Bank, N.A. 07/01/18 5.32 3,720,000
7,055,000 Wellington Green LLC - Series 1999
LOC Charter One Bank 04/01/29 5.35 7,055,000
3,400,000 West Coast Pack, LLC - Series 2005
LOC LaSalle Bank, N.A. 07/01/35 5.37 3,400,000
9,700,000 Wellstone Mills LLC - Series 2004A
LOC PNC Bank, N.A. 12/15/24 5.36 9,700,000
1,900,000 Westchester County, NY IDA RB (B.W.P. Distributors Inc.) - Series 1997
LOC Wachovia Bank, N.A. 10/01/28 5.43 1,900,000
520,000 Westchester Presbyterian Church
LOC US Bank, N.A. 09/01/13 5.47 520,000
3,825,000 William Morris Reality Greystone - Series 2004
LOC Amsouth Bank 01/01/19 5.41 3,825,000
1,410,000 Wilmington Iron & Metal Company - Series 1999
LOC Bank One 08/01/14 5.38 1,410,000
4,754,243 Wilmington Trust Company (Amtrak Trust 93-A) - Series B Notes
Guaranteed by General Electric Company 01/01/11 5.32 4,754,243
4,900,000 Willow Creek Interest LLC, OH - Series 2005
LOC Fifth Third Bank 04/01/25 5.37 4,900,000
8,750,000 Winder-Barrow Industrial Building Authority
(The Concrete Company Project) - Series 2000
LOC Columbus Bank & Trust Company 02/01/20 5.33 8,750,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
------ ---- --------- ------
Variable Rate Demand Instruments (l) (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 1,080,000 Windsor Medical Center, Inc. - Series 1997
LOC Federal Home Loan Bank 12/03/18 5.38% $ 1,080,000
1,000,000 Word of Deliverence - Series 2004
LOC Fifth Third Bank 12/01/24 5.37 1,000,000
- -------------- --------------
762,796,843 Total Variable Rate Demand Instruments 762,796,843
- -------------- --------------
Yankee Certificates of Deposit (29.50%)
- ------------------------------------------------------------------------------------------------------------------------
$ 75,000,000 Banque National de Paris 02/08/07 5.42% $ 75,000,000
100,000,000 Barclays Bank PLC 10/27/06 5.45 100,000,000
25,000,000 Barclays Bank PLC 10/18/06 5.46 25,000,000
50,000,000 Canadian Imperial Bank of Commerce 11/20/06 5.31 50,000,000
50,000,000 Canadian Imperial Bank of Commerce 11/24/06 5.32 50,000,000
50,000,000 Credit Industriel et Commercial 11/21/06 5.35 50,000,000
50,000,000 Credit Industriel et Commercial 11/24/06 5.35 50,000,000
60,000,000 Credit Suisse AG 11/08/06 5.38 60,000,312
150,000,000 Deutsche Zentral - Genossenschafts Bank 11/17/06 5.38 150,000,000
100,000,000 Deutsche Zentral - Genossenschafts Bank 12/27/06 5.34 100,000,000
50,000,000 HBOS PLC 06/04/07 5.42 50,000,000
25,000,000 HSN Nordesbank AG 11/08/06 5.40 25,000,000
50,000,000 HSN Nordesbank AG 02/08/07 5.44 50,000,000
200,000,000 Norddeutsche Landesbank Girozentral 01/22/07 5.37 200,003,082
70,000,000 Royal Bank of Canada 02/08/07 5.43 70,001,230
35,000,000 Royal Bank of Scotland 01/16/07 4.80 35,000,496
75,000,000 Standard Chartered PLC 10/24/06 5.45 75,000,000
50,000,000 Toronto Dominion 12/29/06 5.37 50,000,000
40,000,000 Toronto Dominion 02/21/07 5.62 40,000,000
30,000,000 Toronto Dominion 04/13/07 5.31 29,997,791
20,000,000 UBS AG 10/31/06 5.29 20,000,000
50,000,000 Westdeutsche Landesbank Girozentral 10/18/06 5.31 50,000,000
50,000,000 Westdeutsche Landesbank Girozentral 10/19/06 5.28 50,000,000
100,000,000 Westdeutsche Landesbank Girozentral 12/20/06 5.34 100,000,000
50,000,000 Westpac Bank 11/22/06 5.35 50,000,000
- -------------- --------------
1,605,000,000 Total Yankee Certificates of Deposit 1,605,002,911
- -------------- --------------
Total Investments (99.77%) (Cost $5,427,979,535+) 5,427,979,535
Cash and other assets, net of liabilities (0.23%) 12,317,818
--------------
Net Assets (100.00%) $5,440,297,353
==============
<FN>
+ Aggregate cost for income tax purposes is identical.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
FOOTNOTES:
(a) The interest rate shown reflects the security's current coupon, unless
yield is available.
(b) The interest rate changes daily based upon Federal funds target plus 0.06%.
(c) The interest rate changes daily based upon Federal funds target plus
0.065%.
(d) The interest rate changes daily based upon Federal funds open plus 0.08%.
(e) The interest rate changes daily based upon Federal funds target plus 0.09%.
(f) The interest rate is adjusted weekly based upon average of prior week one
month LIBOR Plus 0.05%; weekly put at par.
(g) The interest rate is adjusted monthly based upon one month LIBOR plus
0.10%.
(h) The interest rate changes daily based upon Federal funds target plus 0.10%.
(i) The interest rate is adjusted monthly based upon one month LIBOR minus
0.035%.
(j) The interest rate is adjusted monthly based upon one month LIBOR plus
0.03%.
(k) The interest rate is changes monthly based upon one month LIBOR plus 0.02%.
(l) These securities have a 7-day put feature exercisable by the Fund at par
value. Rate changes weekly.
KEY:
BAN = Bond Anticipation Note IDA = Industrial Development Authority
EDRB = Economic Development Revenue Bond IDB = Industrial Development Bond
FSA = Financial Security Assurance IDRB = Industrial Development Revenue Bond
GNMA = Government National Mortgage Association LOC = Letter of Credit
GO = General Obligation PFA = Public Finance Authority
HEFA = Health & Education Facilities Authority RB = Revenue Bond
HFA = Housing Finance Authority
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
- -----------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- -----------------------------------------------------------------------------------
Less than 31 Days $ 2,726,207,368 50.22%
31 through 60 Days 842,374,039 15.52
61 through 90 Days 808,634,282 14.90
91 through 120 Days 333,916,102 6.15
121 through 180 Days 353,798,390 6.52
Over 180 Days 363,049,354 6.69
- -----------------------------------------------------------------------------------
Total $ 5,427,979,535 100.00%
- -----------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Face Maturity Value
Amount Date Yield (a) (Note 1)
------ ---- -------- ------
Loan Participation (8.99%)
- ------------------------------------------------------------------------------------------------------------------------
$ 20,000,000 Army and Air Force Exchange Service 10/05/06 5.27% $ 20,000,000
10,000,000 Army and Air Force Exchange Service 11/28/06 5.38 10,000,000
- -------------- --------------
30,000,000 Total Loan Participation 30,000,000
- -------------- --------------
Repurchase Agreements (46.77%)
- ------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Banc of America Securities, LLC, purchased on 09/29/06,
repurchase proceeds at maturity $30,013,250
(Collateralized by $309,006,530, GNMA, 0.487% to 3.963%,
due 05/16/30 to 11/16/45, value $30,600,001) 10/02/06 5.30% $ 30,000,000
41,000,000 Citigroup Global Markets Inc., purchased on 09/29/06,
repurchase proceeds at maturity $41,018,040
(Collateralized by $114,841,538, GNMA, 4.750% to 5.000%,
due 01/20/31 to 07/20/31, value $41,820,000) 10/02/06 5.28 41,000,000
85,000,000 UBS Securities, LLC, purchased on 09/29/06,
repurchase proceeds at maturity $85,037,825
(Collateralized by $146,233,000, RFIN, 0.000%,
due 10/15/06 to 04/15/30, value $86,702,877) 10/02/06 5.34 85,000,000
--------------
156,000,000 Total Repurchase Agreements 156,000,000
- -------------- --------------
U.S. Government Agency Bonds (10.49%)
- ------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Bank 10/16/06 5.02% $ 4,995,059
10,000,000 Federal Home Loan Bank 08/08/07 5.55 10,000,000
5,000,000 Federal Home Loan Bank 08/10/07 5.65 5,000,000
5,000,000 Federal Home Loan Bank 08/14/07 5.58 5,000,000
5,000,000 Federal Home Loan Bank 10/02/07 5.50 5,000,000
5,000,000 Federal Home Loan Bank 10/26/07 5.40 5,000,000
- -------------- --------------
35,000,000 Total U.S. Government Agency Bonds 34,995,059
- -------------- --------------
U.S. Government Agency Discount Notes (19.25%)
- ------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Mortgage Corporation 10/10/06 4.93% $ 4,993,837
5,000,000 Federal Home Loan Mortgage Corporation 10/17/06 5.05 4,989,067
2,000,000 Federal Home Loan Mortgage Corporation 10/23/06 4.65 1,994,515
5,000,000 Federal Home Loan Mortgage Corporation 12/01/06 5.00 4,959,121
5,000,000 Federal Home Loan Mortgage Corporation 12/18/06 5.24 4,944,208
5,000,000 Federal Home Loan Mortgage Corporation 02/28/07 5.26 4,892,917
5,000,000 Federal Home Loan Mortgage Corporation 03/06/07 5.25 4,889,067
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Value
Amount Date Yield (a) (Note 1)
------ ---- -------- ------
U.S. Government Agency Discount Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Mortgage Corporation 03/30/07 5.32% $ 4,871,375
3,000,000 Federal Home Loan Mortgage Corporation 04/13/07 5.34 2,917,550
1,843,000 Federal Home Loan Mortgage Corporation 05/29/07 5.26 1,780,768
5,000,000 Federal National Mortgage Association 10/04/06 5.05 4,997,949
3,000,000 Federal National Mortgage Association 12/01/06 4.71 2,977,125
5,000,000 Federal National Mortgage Association 01/31/07 5.24 4,912,956
3,600,000 Federal National Mortgage Association 02/23/07 5.30 3,526,050
3,000,000 Federal National Mortgage Association 03/30/07 5.27 2,923,200
2,760,000 Federal National Mortgage Association 05/23/07 5.29 2,668,488
1,015,000 Federal National Mortgage Association 05/31/07 5.27 980,305
- -------------- --------------
65,218,000 Total U.S. Government Agency Discount Notes 64,218,498
- -------------- --------------
U.S. Government Agency Medium Term Notes (14.35%)
- ------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Mortgage Corporation 10/15/06 4.62% $ 4,996,426
5,000,000 Federal Home Loan Mortgage Corporation 10/15/06 5.00 4,995,589
5,000,000 Federal Home Loan Mortgage Corporation 10/15/06 5.02 4,995,569
5,000,000 Federal Home Loan Mortgage Corporation 10/23/06 4.25 5,000,000
3,000,000 Federal Home Loan Mortgage Corporation 10/26/06 4.68 2,995,816
2,000,000 Federal Home Loan Mortgage Corporation 12/27/06 5.25 1,992,761
1,650,000 Federal Home Loan Mortgage Corporation 02/16/07 5.28 1,641,582
10,000,000 Federal Home Loan Mortgage Corporation 03/23/07 5.37 9,867,598
5,000,000 Federal Home Loan Mortgage Corporation 04/27/07 5.25 5,000,000
3,427,000 Federal National Mortgage Association 03/02/07 5.29 3,394,285
3,000,000 Federal National Mortgage Association 03/15/07 5.39 2,976,370
- -------------- --------------
48,077,000 Total U.S. Government Agency Medium Term Notes 47,855,996
- -------------- --------------
Total Investments (99.85%) (Cost $333,069,553+) 333,069,553
Cash and other assets, net of liabilities (0.15%) 490,316
--------------
Net Assets (100.00%) $ 333,559,869
==============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
(a) The interest rate shown reflects the security's yield,
unless coupon is available.
</FN>
KEY:
GNMA = Government National Mortgage Association
RFIN = Resolution Funding Corporation Strip Interest
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S. GOVERNMENT FUND
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
- ----------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- ----------------------------------------------------------------------------------
Less than 31 Days $ 225,953,827 67.84%
31 through 60 Days 10,000,000 3.00
61 through 90 Days 14,873,216 4.47
91 through 120 Days -0- -0-
121 through 180 Days 36,100,824 10.84
Over 180 Days 46,141,686 13.85
- ----------------------------------------------------------------------------------
Total $ 333,069,553 100.00%
- ----------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bonds (c) (7.42%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 965,000 City of Dayton, KY Industrial Building RB
(RADAC Corporation Project) - Series 1994C
LOC Fifth Third Bank 10/01/06 3.65% $ 965,000 P-1 A-1+
6,500,000 Harford County, MD EDRB (A.O. Smith)
LOC Comerica Bank 03/01/07 3.85 6,500,000 P-1 A-1
2,500,000 Michigan Strategic Fund Limited Obligation RB
(Donnelly Corporation Project) - Series B
LOC Bank of Nova Scotia 10/01/06 3.70 2,500,000 P-1 A-1+
2,100,000 North Carolina Industrial Facility PCFA RB
(GVK America Inc. Project)
LOC Wachovia Bank, N.A. 12/01/06 3.70 2,100,000 P-1 A-1+
1,525,000 Oakland County, MI EDC RB
(Orchard - Maple Project) (d)
LOC LaSalle Bank, N.A. 11/15/06 3.95 1,525,000
2,000,000 West Virginia Housing Development Fund Housing Finance
Bonds - 2006 Series B 04/09/07 3.67 2,000,000 VMIG-1 A-1+
- ------------- -----------
15,590,000 Total Put Bonds 15,590,000
- ------------- -----------
Tax Exempt Commercial Paper (2.97%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,250,000 City of Brownsville, TX Utility System - Series A
LOC State Street Bank & Trust Co. 11/02/06 3.55% $ 5,250,000 P-1 A-1+
1,000,000 City of St. Louis, MO Lambert International Airport - Series 2004
LOC JPMorgan Chase Bank, N.A. 10/03/06 3.58 1,000,000 P-1 A-1+
- ------------- -----------
6,250,000 Total Tax Exempt Commercial Paper 6,250,000
- ------------- -----------
Tax Exempt General Obligation Notes & Bonds (21.64%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,100,000 Butler County, OH BAN 09/20/07 3.70% $ 1,108,227 MIG-1
1,500,000 Cambridge, WI School District TRAN (d) 09/05/07 3.64 1,500,798
2,500,000 Concord, CO Metropolitan District - Series 2004
LOC Wells Fargo Bank, N.A. 12/01/06 3.50 2,500,000 A-1+
1,900,000 Constantine, MI Public Schools TRAN (d) 08/20/07 3.80 1,911,373
1,425,000 Covington, KY Independent School District TRAN (d) 06/29/07 4.08 1,430,158
3,500,000 Dublin City, WI Everest Area School District (d) 08/27/07 3.92 3,500,236
1,500,000 Elkhorn, WI Area School District TRAN (d) 08/24/07 3.73 1,500,899
700,000 Fairborn, OH BAN (d) 08/23/07 3.80 704,250
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Tax Exempt General Obligation Notes & Bonds (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,500,000 Howard County, IN Western School Building Corporation BAN
- Series 2006 (d) 08/01/07 3.80% $ 1,500,000
3,000,000 Kentucky Asset / Liability Commission 10/12/06 3.15 3,000,000 VMIG-1 A-1+
3,000,000 Lake Superior, MN Independent School District No. 381 08/27/07 3.85 3,016,875
550,000 Lake Mills, WI Area School District TRAN (d) 08/30/07 3.75 551,205
4,850,000 Logan County, OH Sewer Improvement (d) 04/04/07 3.70 4,860,754
3,000,000 Maine State Housing Authority Mortgage Purchase Bonds 11/15/06 3.37 3,000,000 MIG-1
1,000,000 Menomonie, WI Area School District TRAN (d) 09/04/07 3.62 1,000,708
1,400,000 Merton, WI Community School District TRAN (d) 10/27/06 3.00 1,400,048
1,400,000 Merton, WI Community School District TRAN (d) 10/26/07 3.66 1,400,574
4,000,000 North St. Paul Maplewood Oakdale, MN
Independent School District No. 622 (d) 08/13/07 3.85 4,021,545
1,600,000 Sevastopol, WI School District TRAN (d) 10/20/06 3.00 1,600,081
3,000,000 South Dakota Housing Development Authority 12/15/06 3.45 3,006,294 MIG-1 SP1+
1,500,000 St. Clairsville, OH BAN (d) 04/26/07 3.85 1,502,653
1,500,000 Vandalia, OH BAN (d) 08/24/07 3.80 1,500,000
- ------------- -----------
45,425,000 Total Tax Exempt General Obligation Notes & Bonds 45,516,678
- ------------- -----------
Variable Rate Demand Instruments (e) (66.70%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 ABN AMRO Munitops Certificate Trust, (Colorado Non-AMT)
Single Asset - Series 2005-14
Insured by FGIC 06/01/13 3.78% $ 2,000,000 P-1 A-1+
5,455,000 Auburn, AL Non-Profit HDA MHRB (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 3.95 5,455,000 A-1
3,250,000 Blue Springs, MO IDA MHRB
(Autumn Place Apartments Project) - Series 2004 - A1
Guaranteed by Federal National Mortgage Association 08/15/37 3.80 3,250,000 VMIG-1
2,750,000 Broward County, FL HFA (Sailboat Bend Artist Lofts Project)
LOC Citibank, N.A. 04/15/38 3.87 2,750,000 A-1+
1,150,000 Caledonia, WI (Caledonia Properties LLC/Quick Cable Corp.) (d)
LOC Fifth Third Bank 12/01/18 3.83 1,150,000
2,700,000 City of Pulaski and Giles County, TN IDRB
(Martin Methodist College Project) - Series 2004
LOC Amsouth Bank 01/01/24 3.86 2,700,000 VMIG-1
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Clipper Tax Exempt Trust COPs - (Multistate) - Series 1999-3 08/01/07 3.89% $ 1,000,000 VMIG-1
6,000,000 Clipper Tax Exempt Trust COPs - (Oklahoma) - Series 2004-3 07/01/09 3.83 6,000,000 VMIG-1
1,000,000 Connecticut HEFA (Yale University) - Series T 07/01/29 3.75 1,000,000 VMIG-1 A-1+
1,125,000 Connecticut State Special Tax Obligation Bonds
(Second Lien Transportation Infrastructure) - Series 1
Insured by FSA 12/01/10 3.75 1,125,000 P-1 A-1+
4,200,000 Dekalb County, GA Housing Authority MHRB
(Wood Hills Apartments)
LOC Fleet Bank 12/01/07 3.80 4,200,000 A-1+
6,465,000 Douglas County, NE IDRB
(Phillips Manufacturing Project) - Series 2002
LOC Wells Fargo Bank N.A. 12/01/18 3.84 6,465,000 A-1+
2,000,000 Greenwood County, SC
(Fuji Photo Film, Inc. Project) - Series 2004 09/01/11 3.92 2,000,000 A-1+
1,760,000 Illinois Development Finance Authority
(HPL Illinois Inc. Project) - Series 1997 (d)
LOC Fifth Third Bank 09/01/17 3.85 1,760,000
3,000,000 Illinios Development Financial Authority
(Butterfield Creek Project) - Series 1999 AMT
LOC LaSalle Bank N.A. 04/01/39 3.83 3,000,000 A-1
3,000,000 Illinois Finance Authority IDRB
(Pollman North America, Inc. Project) - Series 2005
LOC Fifth Third Bank 12/01/25 3.83 3,000,000 P-1 A-1+
2,000,000 Jaksonville, FL PCRB
(Florida Power & Light Company Project) - Series 1995 05/01/29 3.86 2,000,000 VMIG-1 A-1+
2,000,000 Jefferson County, AL Public Park & Recreation Board
(YMCA Project) - Series 2005
LOC Amsouth Bank 10/01/25 3.81 2,000,000 VMIG-1
1,000,000 Jefferson County, KY Industrial Building RB (R.C. Tway Company
D/B/A Kentucky Manufacturing Company Project) - Series 1998
LOC Fifth Third Bank 06/01/18 3.93 1,000,000 P-1 A-1+
1,600,000 Kansas State Development Authority RB
(Village Shalom Obligated Group) - Series 1998
LOC LaSalle Bank N.A. 11/15/28 3.85 1,600,000 A-1+
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,400,000 La Porte County, IN EDC RB
(Universal Forest Products) - Series 2000
LOC LaSalle Bank Midwest N.A. 11/01/20 3.90% $ 2,400,000 P-1 A-1
2,000,000 Lincoln County, WY PCRB (Exxon Project) - Series C 07/01/17 3.81 2,000,000 P-1 A-1+
3,000,000 Lincoln County, WY PCRB (Exxon Project) - Series 1987-A 07/01/173.81 3,000,000 P-1 A-1+
1,000,000 Memphis, TN MHRB Health, Educational and
Housing Facility Board (Ashland Lakes Apartments Project)
- Series 2006A & 2006B
LOC US Bank, N.A. 08/01/41 3.83 1,000,000 A-1+
2,000,000 Miami - Dade County Florida IDA
(Auborne Heavy Maintenance Inc) - Series 1998
LOC JPMorgan Chase Bank,N.A. 08/01/18 3.80 2,000,000 A-1+
2,025,000 Michigan State Strategic Fund (Sintel, Inc Project) - Series 2005
LOC Fifth Third Bank 10/01/30 3.83 2,025,000 P-1 A-1+
2,500,000 Michigan State Strategic Fund
(Grand River Infrastructure, Inc. Project) - Series 2006 (d)
LOC Fifth Third Bank 06/01/14 3.83 2,500,000
760,000 Merlots Trust - Series 2000YYY
(Mississippi Home Corporation Single Family Program)
Collateralized by Government National Mortgage Association 12/01/31 3.83 760,000 VMIG-1
1,450,000 Nashville & Davidson County, TN MHRB Health & Educational
Facilities (Wedgewood Towers Projrct) - Series 2004 (d)
LOC Amsouth Bank, N.A. 06/01/34 3.88 1,450,000
2,000,000 Nevada Housing Division MHRB
(Southwest Village Apartments) - Series 2005
Guaranteed by Federal National Mortgage Association 10/15/38 3.77 2,000,000 A-1+
2,465,000 North Dakota State HFA
(Housing Finance Program - Home Mortgage) - Series 2002B
Insured by FSA 01/01/34 3.81 2,465,000 VMIG-1
1,000,000 Olathe, KS IDRB (Diamant Boart Project) - Series 1997A
LOC Svenska Handelsbanken 03/01/27 3.87 1,000,000 P-1 A-1+
1,200,000 Orange County, FL HFA (Windsor Pines Project) - Series 2000E
LOC Bank of America, N.A. 03/01/35 3.88 1,200,000 VMIG-1
1,200,000 Orland Park, IL IDRB (Panduit Corp Project) - Series 1996
LOC Fifth Third Bank 04/01/31 3.85 1,200,000 A-1+
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Owensboro, KY IDRB
(West Irving Die Lastings of Kentucky, Inc. Project) -
Series 1997
LOC Fifth Third Bank 06/01/17 3.90% $ 2,000,000 P-1 A-1+
2,000,000 Pennsylvania EDFA (Amtrak Project) - Series 2001B
LOC JPMorgan Chase Bank, N.A. 11/01/41 3.83 2,000,000 VMIG-1 A-1+
2,600,000 Pennsylvania EDFA EDRB
(Joseph R & Nancy L Delsignore Project) - Series 2005B2
LOC PNC Bank, N.A. 08/01/30 3.85 2,600,000 P-1 A-1+
1,800,000 Pennsylvania EDFA EDRB
(North America Communications, Inc. Project) - Series 2005B3
LOC PNC Bank, N.A. 08/01/12 3.85 1,800,000 P-1 A1+
1,700,000 Pennsylvania Higher Education Assistance Agency RB -
Series 1988B
Insured by AMBAC Assurance Corp. 07/01/18 3.75 1,700,000 VMIG-1 A1+
3,815,000 Plymouth, MN MHRB
(At the Lake Apartments Project) - Series 2004
Guaranteed by Federal Home Loan Mortgage Corporation 08/01/34 3.80 3,815,000 VMIG-1
6,090,000 Putters - Series 1179 Relating to Custodial Receipts
- Series 2005-5
Evidencing Beneficial Ownership of Orange County, FL HFA
MHRB - Lake Harris Cove Apartments - 2005 Series D
LOC JPMorgan Chase Bank, N.A. 10/01/38 3.81 6,090,000 P-1 A-1+
2,000,000 Putters - Series 1184 (Relating to King County, WA Limited Tax
Obligation Bonds (Payable from Sewer Revenues) - Series 2005)
Insured by FGIC 01/01/13 3.80 2,000,000 A-1
1,550,000 Puerto Rico Commonwealth Public Improvement Refunding
Bonds Floating Rate Trust Receipts - Series 2003 M4J
Insured by FSA 07/01/21 3.73 1,550,000 VMIG-1
3,000,000 Puerto Rico Electric Power Authority RB - Series 1997 SGA 43
Insured by MBIA Insurance Corp. 07/01/22 3.72 3,000,000 A-1+
1,325,000 Ridgeland, SC RB (LRC Ridgeland, LLC Project)
- Series 2006
LOC Columbus Bank & Trust 09/01/21 3.84 1,325,000 P-1 A-1
2,200,000 Rockingham, NC IDRB PCFA
(Eden Customs Processing, LLC) - Series 2004
LOC Branch Bank & Trust Company 01/01/17 3.88 2,200,000 P-1 A-1+
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,475,000 Rockingham, NC IDRB PCFA
(Whiteridge Plastics Project) - Series 2003
LOC Branch Bank & Trust Company 03/01/15 3.88% $ 2,475,000 P-1 A-1+
3,990,000 ROCs II-R Trust - Series 353 Wayne County Airport Authority RB
(Detroit Metropolitan Wayne County Airport) - Series 2005
Insured by MBIA Insurance Corp. 12/01/17 3.81 3,990,000 VMIG-1
3,000,000 ROCs II-R Trust - Series 442 Wayne County Airport Authority RB
(Detroit Metropolitan Wayne County Airport) - Series 2005
Insured by MBIA Insurance Corp. 12/01/29 3.81 3,000,000 VMIG-1
3,100,000 San Antonio, TX Empowerment Zone Development Corporation
(Drury Southwest Hotel Project) - Series 2005 (d)
LOC US Bank, N.A. 10/01/35 3.79 3,100,000
2,570,000 South Carolina Jobs EDA RB
(DCS Diversified Coating Systems, Inc Project) - Series 2002
LOC Branch Bank & Trust Company 04/01/17 3.88 2,570,000 VMIG-1
1,970,000 South Carolina Jobs EDA RB
(Sisters of Charity Providence Hospitals) - Series 2002
LOC Wachovia Bank,N.A. 11/01/32 3.76 1,970,000 VMIG-1
2,200,000 South Dakota EDRB
(Hastings Filters Inc. Project) - Series 1996
LOC Fifth Third Bank 02/01/16 3.88 2,200,000 A-1+
2,000,000 State Board of Regents of the State of Utah
Student Loan RB - Series 1995L
Insured by AMBAC Assurance Corp. 11/01/25 3.80 2,000,000 A-1+
1,555,000 Tuscaloosa County, AL IDRB
(Automotive Corridor, LLC Expansion Project) - Series 2001
LOC Regions Bank 10/01/21 3.85 1,555,000 P-1 A-1
1,095,000 Tuscaloosa County, AL IDRB
(Automotive Corridor, LLC Expansion Project) - Series 2004
LOC Regions Bank 11/01/24 3.85 1,095,000 P-1 A-1
2,835,000 Washington State Economic Development Finance Authority
(Summer Building LLC Project) - Series 2005F
LOC KeyBank, N.A. 12/01/30 3.89 2,835,000 P-1 A-1
1,855,000 Washington State Housing Finance Commission
(Annie Wright School Project) - Series 2002
LOC Bank of America, N.A. 12/01/23 3.80 1,855,000 VMIG-1
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon(b) (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Washington State HFC Putters - Series 1335
LOC GNMA/FNMA/FHLMC 12/01/09 3.81% $ 1,000,000 VMIG-1
2,100,000 West Des Moines, IA RB
(Woodgrain Millwork Inc Project) - Series 1995
LOC Wells Fargo Bank, N.A. 04/01/10 3.94 2,100,000 P-1 A-1+
- ------------- -----------
140,280,000 Total Variable Rate Demand Instruments 140,280,000
- ------------- -----------
Variable Rate Demand Instrument - Private Placement (0.40%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 845,000 York County, PA IDA IDRB (Manor Care of Kingston Court Inc.)
LOC JPMorgan Chase Bank, N. A. 12/01/08 5.36% $ 845,000 P-1 A-1+
- ------------- -----------
845,000 Total Variable Rate Demand Instrument - Private Placement 845,000
- ------------- -----------
Total Investments (99.13%) (Cost $208,481,678+) 208,481,678
Cash and other assets, net of liabilities (0.87%) 1,835,864
-----------
Net Assets (100.00%) $210,317,542
===========
<FN>
+ Aggregate cost for income tax purposes is identical.
</FN>
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the bank whose letter of credit guarantees the
issue or the insurance company who insures the issue. All letters of credit
and insurance are irrevocable and direct pay covering both principal and
interest. Ratings are unaudited.
In addition, certain issuers have a line of credit, a liquidity facility, a
standby purchase agreement or some other financing mechanism to ensure the
remarketing of the securities. This is not a guarantee and does not serve
to insure or collateralize the issue.
(b) The interest rate shown reflects the security's current coupon, unless
yield is available.
(c) The maturity date indicated is the next put date.
(d) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to those rated securities in which
the Fund invests.
(e) Securities payable on demand at par including accrued interest (usually
with seven days' notice) and, if indicated, unconditionally secured as to
principal and interest by a bank letter of credit. The interest rates are
adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
KEY:
AMT = Alternate Minimum Tax HEFA = Health and Education Facilities Authority
BAN = Bond Anticipation Note HFA = Housing Finance Authority
COPs = Certificates of Participation HFC = Housing Finance Commission
EDA = Economic Development Authority IDA = Industrial Development Authority
EDC = Economic Development Corporation IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
EDRB = Economic Development Revenue Bond MHRB = Multi-Family Housing Revenue Bond
FGIC = Financial Guaranty Insurance Company PCFA = Pollution Control Finance Authority
FHLMC = Federal Home Loan Mortgage Corporation PCRB = Pollution Control Revenue Bond
FNMA = Federal National Mortgage Association RB = Revenue Bond
FSA = Financial Security Assurance, Inc ROCs = Reset Option Certificates
GNMA = Government National Mortgage Association TRAN = Tax and Revenue Anticipation Note
HDA = Housing Development Authority
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
- --------------------------- ---------------------------- -------------------------------
States Value % of Portfolio
- --------------------------- ---------------------------- -------------------------------
Alabama $ 10,105,000 4.85%
Colorado 4,500,000 2.16
Connecticut 2,125,000 1.02
Florida 14,040,000 6.73
Georgia 4,200,000 2.01
Illinois 8,960,000 4.30
Indiana 3,900,000 1.87
Iowa 2,100,000 1.01
Kansas 2,600,000 1.25
Kentucky 8,395,158 4.03
Maine 3,000,000 1.44
Maryland 6,500,000 3.12
Michigan 17,451,373 8.37
Minnesota 10,853,420 5.21
Mississippi 760,000 0.36
Missouri 4,250,000 2.04
Nebraska 6,465,000 3.10
Nevada 2,000,000 0.96
North Carolina 6,775,000 3.25
North Dakota 2,465,000 1.18
Ohio 9,675,884 4.64
Oklahoma 6,000,000 2.88
Pennsylvania 8,945,000 4.29
Puerto Rico 4,550,000 2.18
South Carolina 7,865,000 3.77
South Dakota 5,206,294 2.50
Tennessee 5,150,000 2.47
Texas 8,350,000 4.00
Utah 2,000,000 0.96
Washington 7,690,000 3.69
West Virginia 2,000,000 0.96
Wisconsin 13,604,549 6.52
Wyoming 5,000,000 2.40
Other Territories 1,000,000 0.48
- --------------------------- ---------------------------- -------------------------------
Total $ 208,481,678 100.00%
- --------------------------- ---------------------------- -------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- ----------------- -----------------
ASSETS:
Investments in securities, at
amortized cost (Note 1)............ $ 5,324,979,535 $ 177,069,553 $ 208,481,678
Repurchase Agreements................. 103,000,000 156,000,000 -0-
Cash.................................. -0- 4,756,624 2,037,246
Receivable for securities sold........ 40,000 -0- -0-
Accrued interest receivable........... 40,692,451 738,977 1,237,414
Prepaid expenses...................... 8,540 713 434
Other receivables..................... 14,522 888 -0-
Other assets.......................... 110,059 12,399 -0-
----------------- ----------------- -----------------
Total Assets...................... 5,468,845,107 338,579,154 211,756,772
----------------- ----------------- -----------------
LIABILITIES:
Payable to affiliates*................ 318,173 18,345 11,557
Due to custodian...................... 3,210,527 -0- -0-
Payable for securities purchased...... 25,000,000 5,000,000 1,400,574
Accrued expenses...................... -0- -0- 25,879
Dividends payable..................... 19,054 940 382
Other payable......................... -0- -0- 838
----------------- ----------------- -----------------
Total Liabilities................. 28,547,754 5,019,285 1,439,230
----------------- ----------------- -----------------
Net assets............................ $ 5,440,297,353 $ 333,559,869 $ 210,317,542
================= ================= =================
SOURCE OF NET ASSETS:
Net capital paid in on shares
of capital stock (Note 3).......... $ 5,440,297,353 $ 333,559,869 $ 210,319,294
Accumulated net realized gain (loss).. -0- -0- (1,752)
----------------- ----------------- -----------------
Net assets............................ $ 5,440,297,353 $ 333,559,869 $ 210,317,542
----------------- ----------------- -----------------
Net asset value, per share (Note 3):
Cortland General Money Market:
Cortland shares, ($1,221,529,891 applicable to 1,221,529,891 shares outstanding) $ 1.00
=========
Short Term Fund shares, ($35,368,202 applicable to 35,368,202 shares outstanding) $ 1.00
=========
Advantage shares, ($2,805,635,923 applicable to 2,805,635,923 shares outstanding) $ 1.00
=========
Xpress shares, ($1,377,763,337 applicable to 1,377,763,337 shares outstanding) $ 1.00
=========
Cortland U.S. Government:
Cortland shares, ($155,609,600 applicable to 155,609,600 shares outstanding) $ 1.00
=========
Advantage shares, ($177,950,269 applicable to 177,950,269 shares outstanding) $ 1.00
=========
Cortland Municipal Money Market:
Cortland Shares, ($89,298,096 applicable to 89,307,955 shares outstanding) $ 1.00
=========
Advantage Shares, ($121,019,446 applicable to 121,032,807 shares outstanding) $ 1.00
=========
<FN>
* Including fees payable to Reich & Tang Asset Management, LLC and Reich &
Tang Distributors, Inc.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2006
(UNAUDITED)
================================================================================
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- ----------------- -----------------
INVESTMENT INCOME
Income:
Interest..................................... $138,201,765 $ 8,463,400 $ 4,060,809
------------ ------------ ------------
Expenses: (Note 2)
Investment management fee.................... 19,816,237 1,245,436 842,012
Distribution fee (Cortland Shares)........... 1,572,080 197,167 125,553
Distribution fee (Short Term Fund Shares).... 46,816 -- --
Distribution fee (Advantage Shares).......... 3,489,745 224,921 159,812
Distribution fee (Xpress Shares)............. 1,607,235 -- --
Shareholder servicing fee (Advantage Shares). 3,489,745 224,921 159,812
Shareholder servicing fee (Xpress Shares).... 1,607,235 -- --
Directors' fees and expenses................. 59,064 8,569 7,468
Other........................................ 140,215 (4,716) 6,579
------------ ------------ -------------
Total expenses............................ 31,828,372 1,896,298 1,301,236
Less: Fees waived (Note 2)............... (3,140,770) (197,930) (147,027)
------------ ------------ -------------
Net expenses................................. 28,687,602 1,698,368 1,154,209
------------ ------------ -------------
Net investment income ......................... 109,514,163 6,765,032 2,906,600
REALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments........ 30,403 -0- 296
------------ ------------ -------------
Increase in net assets from operations......... $109,544,566 $ 6,765,032 $ 2,906,896
============ ============ =============
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
--------------------------- --------------------------- ---------------------------
For the Six For the For the Six For the For the Six For the
Months Ended Year Months Ended Year Months Ended Year
September 30, Ended September 30, Ended September 30, Ended
2006 March 31, 2006 March 31, 2006 March 31,
(Unaudited) 2006 (Unaudited) 2006 (Unaudited) 2006
--------- ------------ --------- ------------ --------- ------------
INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income................. $ 109,514,163 $ 135,576,638 $ 6,765,032 $ 9,816,111 $ 2,906,600 $ 4,097,394
Net realized gain (loss) on
investments........................ 30,403 312 -0- -0- 296 (2,048)
------------- ------------ ----------- ----------- ----------- -----------
Increase in net assets
from operations................... 109,544,566 135,576,950 6,765,032 9,816,111 2,906,896 4,095,346
Dividends to shareholders from
net investment income:
Cortland Shares................... (26,061,858) (35,038,308) (3,170,264) (4,405,987) (1,282,094)+ (1,975,545)+
Short Term Fund Shares............ (771,546) (1,389,115) -- -- -- --
Advantage Shares.................. (57,590,737) (73,138,328) (3,594,768) (5,410,124) (1,624,506)+ (2,121,849)+
Xpress Shares..................... (25,090,022) (26,010,887) -- -- -- --
------------- ------------ ----------- ----------- ----------- -----------
Total dividend to shareholders (109,514,163) (135,576,638) (6,765,032) (9,816,111) (2,906,600)+ (4,097,394)+
Distributions to shareholders from
realized gains on investments:
Cortland Shares................... (7,220) (80) -0- -0- -0- -0-
Short Term Fund Shares............ (220) (3) -- -- -- --
Advantage Shares.................. (15,543) (168) -0- -0- -0- -0-
Xpress Shares..................... (7,420) (61) -- -- -- --
------------- ------------ ----------- ----------- ----------- -----------
Total distribution to shareholders (30,403) (312) -0- -0- -0- -0-
Capital share transactions (Note 3):
Cortland Shares................... (70,177,554) 19,955,501 (9,547,734) (29,732,294) (33,170,830) 1,725,158
Short Term Fund Shares............ (5,115,621) (20,298,694) -- -- -- --
Advantage Shares.................. 35,708,105 77,525,799 (24,168,292) (8,110,732) (8,616,050) 3,504,825
Xpress Shares..................... 158,975,612 414,849,667 -- -- -- --
------------- ------------ ----------- ----------- ----------- -----------
Total capital share transactions.. 119,390,542 492,032,273 (33,716,026) (37,843,026) (41,786,880) 5,229,983
------------- ------------ ----------- ----------- ----------- -----------
Total increase (decrease)......... 119,390,542 492,032,273 (33,716,026) (37,843,026) (41,786,584) 5,227,935
Net assets:
Beginning of period................... 5,320,906,811 4,828,874,538 367,275,895 405,118,921 252,104,126 246,876,191
------------- ------------ ----------- ----------- ----------- -----------
End of period......................... $5,440,297,353 $5,320,906,811 $333,559,869 $367,275,895 $210,317,542 $252,104,126
============= ============= =========== =========== =========== ===========
Undistributed net
investment income................. $ -0- $ -0- $ -0- $ -0- $ -0- $ -0-
============= ============= =========== =========== =========== ===========
<FN>
+ Designated as exempt-interest dividends for regular federal income tax
purposes.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies
Cortland Trust, Inc. is a diversified, open-end management investment company
registered under the Investment Company Act of 1940 (the "Act"). The Company is
presently comprised of three Funds, the Cortland General Money Market Fund, the
U.S. Government Fund and the Municipal Money Market Fund. The Cortland General
Money Market Fund has four classes of stock authorized, Cortland Shares, Short
Term General Fund - General Shares ("Short Term Fund Shares"), Advantage Primary
Liquidity Fund Shares ("Advantage Shares") and money market Xpress fund Shares
("Xpress Shares"). The U.S Government Fund has two classes of stock authorized,
Cortland Shares and Advantage Government Liquidity Fund Shares. The Municipal
Money Market Fund has two classes of stock authorized, Cortland Shares and
Advantage Municipal Liquidity Fund Shares. All share classes are subject to a
service fee pursuant to each Fund's Distribution Plan. The Advantage and Xpress
Shares are subject to an additional shareholder servicing fee pursuant to a
Shareholder Servicing Agreement. The Short Term Fund Shares, Advantage Shares
and Xpress Shares commenced operations on September 5, 2002, November 22, 2002
and September 17, 2004, respectively. Income, expenses (other than expenses
attributable to a specific class), and realized and unrealized gains and losses
on investments are allocated to each class of shares based on its relative net
assets. In all other respects, the Cortland Shares, Short Term Fund Shares,
Advantage Shares and Xpress Shares represent the same interest in the income and
assets of each Fund. Each class of shares has identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. The Company accounts separately for the assets, liabilities
and operations of each Fund. The Funds' financial statements are prepared in
accordance with accounting principles generally accepted in the United States of
America for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost, which approximates market value.
Under this valuation method, a portfolio instrument is valued at cost and
any discount or premium is amortized on a constant basis to the maturity of
the instrument. If fluctuating interest rates cause the market value of the
Fund's portfolio to deviate more than 1/2 of 1% from the value determined
on the basis of amortized cost, the Board of Directors will consider
whether any action should be initiated. The maturity of variable rate
demand instruments is deemed to be the longer of the period required before
the Fund is entitled to receive payment of the principal amount or the
period remaining until the next interest rate adjustment.
b) Repurchase Agreements -
The Cortland General Money Market Fund and U.S. Government Fund may enter
into repurchase agreements. In connection with transactions in repurchase
agreements, it is the Fund's policy that its custodian take possession of
the underlying collateral securities, the fair value of which exceeds the
principal amount of the repurchase transaction, including accrued interest,
at all times. If the seller defaults and the fair market value of the
collateral declines, realization of the collateral by the Fund may be
delayed or limited.
c) Federal Income Taxes -
It is the policy of each Fund to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of their tax exempt and taxable income to shareholders.
Therefore, no provision for federal income tax is required.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies (Continued)
d) Dividends and Distributions -
Dividends from net investment income (including realized capital gains and
losses, if any, and amortization of market discount), determined on a class
level, are declared daily and paid on the subsequent business day.
Distributions of net realized capital gains, offset by capital loss
carryovers, if any, are generally declared and paid when realized.
e) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
f) General -
Securities transactions are recorded on a trade date basis. Interest
income, including accretion of discount and amortization of premium, is
accrued as earned. Realized gains and losses from securities transactions
are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates
Reich & Tang Asset Management, LLC (the "Manager") serves as the manager of the
Company and its three Funds pursuant to agreements with the Funds dated
September 14, 1993 ("Agreements"). Under the Agreements, the Manager provides
directly, or indirectly through contracts with others, all services required for
the management of the Company. The Manager bears all ordinary operating expenses
associated with the Company's operation except:(a) the fees of the directors who
are not "interested persons" of the Company, as defined by the Act, and the
travel and related expenses of the directors incident to their attending
shareholder's, director's and committee meetings, (b) interest, taxes and
brokerage commissions, (c) extraordinary expenses, (d) shareholder service or
distribution fees, and (e) membership dues of any industry association.
Additionally, the Manager has assumed all expenses associated with organizing
the Company and all expenses of registering or qualifying the Company's shares
under Federal and state securities laws. The Funds pay the Manager an annual
fee, calculated daily and paid monthly, of .80% of the first $500 million of the
Company's average daily net assets, plus .775% of the next $500 million of the
Company's average daily net assets, plus .75% of the next $500 million of the
Company's average daily net assets, plus .725% of the Company's average daily
net assets in excess of $1.5 billion. The management fees are allocated pro-rata
to each Fund based on their average daily net assets.
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, each Fund and Reich & Tang Distributors, Inc. (the "Distributor"),
an affiliate of the Manager, has entered into a Distribution Agreement and a
Shareholder Servicing Agreement with respect to all share classes of the Funds.
For its services under the Distribution Agreement, the Distributor receives from
the Funds a fee equal to 0.25% of the average daily net assets with respect to
the Cortland, Short Term Fund, Advantage and Xpress Shares. The Manager and/or
its affiliates have the ability to make additional payments for distribution
assistance. The Manager and/or its affiliates bear all other expenses related to
the distribution of the Company's shares. In addition, the Distributor receives
an additional 0.25% per annum in shareholder servicing fees of the Advantage and
Xpress Shares' average daily net assets.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
During the period ended September 30, 2006, the Distributor voluntarily waived
the following fees:
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------- ----------------- -----------------
Distribution fees - Advantage Shares $ 3,140,770 $ 197,930 $ 147,027
The Distributor has no right to recoup prior fee waivers.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$24,000 per annum plus $2,000 for each Board of Directors' meeting attended. All
directors' fees and expenses are allocated based on the average net assets of
each Fund.
Included in the Statements of Operations under the caption "Other Expenses" were
fees of $3,745 paid to the Distributor for sub-accounting and administration
services for the Short Term Fund Shares of Cortland General Money Market Fund.
The Distributor receives a fee at an annual rate of up to 0.10% of the daily
average net assets of Short Term Fund Shares of Cortland General Money Market
Fund. For the period ended September 30, 2006 these fees amounted to an annual
rate of 0.02% of the Short Term Fund Shares of Cortland General Money Market
Fund.
3. Capital Stock
The shares outstanding in the Cortland General Money Market Fund include the
Pilgrim Money Market Class of Shares (the "Pilgrim Shares"). Pilgrim Shares are
identical to the Cortland Shares of the Cortland General Fund with respect to
investment objectives, voting rights and yield, but differ with respect to
certain other matters relating primarily to exchange privileges. At September 30
2006, there were 6,928,494 Pilgrim Shares outstanding, with a net asset value of
$1.00 per share, included in the Cortland Shares.
At September 30, 2006, 10 billion shares of $.001 par value stock of the Company
were authorized, of which 7 billion are designated as Cortland General Money
Market Fund shares, 1 billion are designated as U.S. Government Fund shares, 1
billion are designated as Municipal Money Market Fund shares and 1 billion are
unclassified. Transactions in the shares of each Fund were all at $1.00 per
share and are summarized for the period as follows:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
3. Capital Stock (Continued)
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------------------- --------------------------- ---------------------------
For the Six For the For the Six For the For the Six For the
Months Ended Year Months Ended Year Months Ended Year
September 30, Ended September 30, Ended September 30, Ended
2006 March 31, 2006 March 31, 2006 March 31,
(Unaudited) 2006 (Unaudited) 2006 (Unaudited) 2006
--------- ----------- --------- ----------- --------- ------------
Cortland Shares
Shares sold...................... 2,235,985,888 4,958,846,631 329,934,460 898,983,109 261,658,016 690,540,326
Dividends reinvested............. 25,961,897 34,986,709 3,167,841 4,402,105 1,280,920 1,973,080
Shares redeemed.................. (2,332,125,339) (4,973,877,839) (342,650,035) (933,117,508) (296,109,766)(690,788,248)
------------- ------------- ------------- ------------- ------------- ------------
Net increase (decrease) (70,177,554) 19,955,501 (9,547,734) (29,732,294) (33,170,830) 1,725,158
============= ============= ============= ============= ============= ============
Short Term Fund Shares
Shares sold...................... 40,002,771 90,025,494
Dividends reinvested............. 771,278 1,387,781
Shares redeemed.................. (45,889,670) (111,711,969)
------------- -------------
Net increase (decrease).......... (5,115,621) (20,298,694)
============= =============
Advantage Shares
Shares sold...................... 1,659,461,208 2,437,211,426 171,070,064 417,343,894 179,635,000 348,035,308
Dividends reinvested............. 57,389,483 73,075,136 4,529,540 5,404,181 1,619,226 2,119,099
Shares redeemed.................. (1,681,142,586) (2,432,760,763) (199,767,896) (430,858,807) (189,870,276)(346,649,582)
------------- ------------- ------------- ------------- ------------- ------------
Net increase (decrease).......... 35,708,105 77,525,799 (24,168,292) (8,110,732) (8,616,050) 3,504,825
============= ============= ============= ============= ============= ============
Xpress Shares
Shares sold...................... 929,548,049 3,436,456,050
Dividends reinvested............. 25,088,700 26,002,447
Shares redeemed.................. (795,661,137) (3,047,608,830)
------------- -------------
Net increase (decrease) 158,975,612 414,849,667
============= =============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
4. Tax Information
The tax character of all distributions paid during the years ended March 31,
2006 and 2005 were as follows:
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
----------------------------- --------------------------- ---------------------------
Year Ended March 31, Year Ended March 31, Year Ended March 31,
2006 2005 2006 2005 2006 2005
------------ ------------ ------------ ------------ ------------ ------------
Ordinary Income $135,576,950 $ 37,679,750 $ 9,816,111 $ 2,974,213 $ -0- $ -0-
Tax - Exempt Income -0- -0- -0- -0- 4,097,394 1,192,861
At March 31, 2006 there were no distributable earnings for the Cortland General
Money Market Fund and U.S. Government Fund. At March 31, 2006, the Municipal
Money Market Fund had distributable earnings of $6,789 and a post October
capital loss deferral of $8,837.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Financial Highlights
Cortland General Money Market Fund
-----------------------------------------------------------------------------------------
Cortland Shares Six Months Ended For the Year Ended March 31,
- --------------- September 30, 2006 ---------------------------------------------------------------------
(Unaudited) 2006 2005 2004 2003 2002
--------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income................... 0.021 0.028 0.008 0.002 0.008 0.024
Net realized and unrealized
gain/(loss) on investments............ 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- ---------
Total from investment operations........ 0.021 0.028 0.008 0.002 0.008 0.024
Less distributions from:
Dividends from net investment income.. (0.021) (0.028) (0.008) (0.002) (0.008) (0.024)
Net realized gains on investments..... (0.000) (0.000) (0.000) (0.000) (0.000) (0.000)
--------- --------- --------- --------- --------- ---------
Total distributions..................... (0.021) (0.028) (0.008) (0.002) (0.008) (0.024)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return............................ 2.10%(a) 2.84% 0.82% 0.21% 0.79% 2.43%
Ratios/Supplemental Data
Net assets, end of period (000's)....... $1,221,530 $1,291,707 $1,271,752 $1,252,029 $1,569,605 $1,359,746
Ratios to average net assets:
Expenses (net of fees waived)......... 0.99%(b) 0.98% 0.98% 1.00% 1.01% 1.01%
Net investment income................. 4.14%(b) 2.80% 0.82% 0.21% 0.78% 2.14%
Distribution fees waived.............. -- -- -- -- -- 0.01%
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights (Continued)
Cortland General Money Market Fund
-------------------------------------------------------------------------------
September 5, 2002
Short Term Fund Shares Six Months Ended For the Year Ended March 31, (Commencement of
- ---------------------- September 30, 2006 ------------------------------------------ Offering) to
(Unaudited) 2006 2005 2004 March 31, 2003
--------- ---------- ---------- ---------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ---------- ---------- ---------- ---------
Income from investment operations:
Net investment income........................ 0.021 0.028 0.008 0.002 0.004
Net realized and unrealized gain(loss) on
investments................................. 0.000 0.000 0.000 0.000 --
--------- ---------- ---------- ---------- ---------
Total from investment operations............... 0.021 0.028 0.008 0.002 0.004
Less distributions from:
Dividends from net investment income......... (0.021) (0.028) (0.008) (0.002) (0.004)
Net realized gains on investments............ (0.000) (0.000) (0.000) (0.000) ( -- )
--------- ---------- ---------- ---------- ---------
Total distributions............................ (0.021) (0.028) (0.008) (0.002) (0.004)
--------- ---------- ---------- ---------- ---------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== =========
Total Return................................... 2.09%(a) 2.82% 0.81% 0.21% 0.35%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 35,368 $ 40,484 $ 60,783 $ 93,039 $163,332
Ratios to average net assets:
Expenses (net of fees waived)................ 1.01%(b) 1.00% 1.00% 1.00% 1.00%(b)
Net investment income........................ 4.12%(b) 2.71% 0.74% 0.22% 0.58%(b)
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Financial Highlights (Continued)
Cortland General Money Market Fund
-------------------------------------------------------------------------------
November 22, 2002
Advantage Shares Six Months Ended For the Year Ended March 31, (Commencement of
- ---------------- September 30, 2006 ------------------------------------------ Offering) to
(Unaudited) 2006 2005 2004 March 31, 2003
--------- ---------- ---------- ---------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ---------- ---------- ---------- ---------
Income from investment operations:
Net investment income............................. 0.021 0.028 0.009 0.003 0.002
Net realized and unrealized gain(loss) on
investments...................................... 0.000 0.000 0.000 0.000 --
--------- ---------- ---------- ---------- ---------
Total from investment operations.................... 0.021 0.028 0.009 0.003 0.002
Less distributions from:
Dividends from net investment income.............. (0.021) (0.028) (0.009) (0.003) (0.002)
Net realized gains on investments................. (0.000) (0.000) (0.000) (0.000) ( -- )
--------- ---------- ---------- ---------- ---------
Total distributions................................. (0.021) (0.028) (0.009) (0.003) (0.002)
--------- ---------- ---------- ---------- ---------
Net asset value, end of period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== =========
Total Return........................................ 2.09%(a) 2.81% 0.87% 0.31% 0.19%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)................... $2,805,636 $2,769,928 $2,692,402 $1,858,743 $2,365,911
Ratios to average net assets:
Expenses (net of fees waived)..................... 1.02%(b) 1.01% 0.94% 0.90% 0.90%(b)
Net investment income............................. 4.13%(b) 2.79% 0.92% 0.31% 0.54%(b)
Distribution and shareholder servicing fees waived 0.23%(b) 0.23% 0.29% 0.35% 0.35%(b)
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights (Continued)
Cortland General Money Market Fund
----------------------------------------------------------------------------
Six Months Ended For the Year September 17, 2004
Xpress Shares September 30, 2006 Ended (Commencement of Offering) to
- ------------- (Unaudited) March 31, 2006 March 31, 2005
--------- -------------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income from investment operations:
Net investment income........................ 0.020 0.025 0.005
Net realized and unrealized gain(loss) on
investments................................. 0.000 0.000 --
--------- --------- ---------
Total from investment operations............... 0.020 0.025 0.005
Less distributions from:
Dividends from net investment income......... (0.020) (0.025) (0.005)
Net realized gains on investments............ (0.000) (0.000) ( -- )
--------- --------- ---------
Total distributions............................ (0.020) (0.025) (0.005)
--------- --------- ---------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total Return................................... 1.98%(a) 2.58% 0.53%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $1,377,763 $1,218,788 $ 803,938
Ratios to average net assets:
Expenses..................................... 1.24%(b) 1.23% 1.23%(b)
Net investment income........................ 3.90%(b) 2.63% 1.05%(b)
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Financial Highlights (Continued)
U.S. Government Fund
-----------------------------------------------------------------------------------------
Cortland Shares Six Months Ended For the Year Ended March 31,
- --------------- September 30, 2006 ---------------------------------------------------------------------
(Unaudited) 2006 2005 2004 2003 2002
--------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income................. 0.020 0.027 0.007 0.002 0.008 0.022
Net realized and unrealized gain/(loss)
on investments....................... -- -- -- 0.000 0.000 0.000
--------- --------- --------- --------- --------- ---------
Total from investment operations........ 0.020 0.027 0.007 0.002 0.008 0.022
Less distributions from:
Dividends from net investment income.. (0.020) (0.027) (0.007) (0.002) (0.008) (0.022)
Net realized gains on investments..... ( -- ) ( -- ) ( -- ) (0.000) 0.000 0.000
--------- --------- --------- --------- --------- ---------
Total distributions..................... (0.020) (0.027) (0.007) (0.002) (0.008) (0.022)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return............................ 2.04%(a) 2.74% 0.74% 0.15% 0.76% 2.23%
Ratios/Supplemental Data
Net assets, end of period (000's)....... $ 155,610 $ 165,157 $ 194,890 $ 197,189 $ 177,455 $ 247,591
Ratios to average net assets:
Expenses (net of fees waived)......... 0.99%(b) 0.99% 0.99% 1.00% 1.01% 1.03%
Net investment income................. 4.02%(b) 2.68% 0.70% 0.15% 0.69% 1.47%
Distribution fees waived.............. -- -- -- 0.00% -- 0.00%
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights (Continued)
U.S. Government Fund
-------------------------------------------------------------------------------
November 22, 2002
Advantage Shares Six Months Ended For the Year Ended March 31, (Commencement of
- ---------------- September 30, 2006 ------------------------------------------ Offering) to
(Unaudited) 2006 2005 2004 March 31, 2003
--------- ---------- ---------- ---------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ---------- ---------- ---------- ---------
Income from investment operations:
Net investment income................................ 0.020 0.027 0.008 0.003 0.002
Net realized and unrealized gain(loss) on investments -- -- -- 0.000 --
--------- ---------- ---------- ---------- ---------
Total from investment operations....................... 0.020 0.027 0.008 0.003 0.002
Less distributions from:
Dividends from net investment income................. (0.020) (0.027) (0.008) (0.003) (0.002)
Net realized gains on investments.................... ( -- ) ( -- ) ( -- ) (0.000) ( -- )
--------- ---------- ---------- ---------- ---------
Total distributions.................................... (0.020) (0.027) (0.008) (0.003) (0.002)
--------- ---------- ---------- ---------- ---------
Net asset value, end of period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== =========
Total Return........................................... 2.02%(a) 2.72% 0.79% 0.26% 0.18%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................... $ 177,950 $ 202,119 $ 210,229 $ 95,525 $ 96,429
Ratios to average net assets:
Expenses (net of fees waived)........................ 1.02%(b) 1.01% 0.94% 0.90% 0.90%(b)
Net investment income................................ 4.00%(b) 2.66% 0.87% 0.24% 0.51%(b)
Distribution and shareholder servicing fees waived... 0.22%(b) 0.23% 0.30% 0.35% 0.35%(b)
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Financial Highlights (Continued)
Municipal Money Market Fund
-----------------------------------------------------------------------------------------
Cortland Shares Six Months Ended For the Year Ended March 31,
- --------------- September 30, 2006 ---------------------------------------------------------------------
(Unaudited) 2006 2005 2004 2003 2002
--------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income...................... 0.013 0.018 0.005 0.001 0.005 0.015
Net realized and unrealized gain/(loss) on
investments............................... 0.000 0.000 -- 0.000 -- --
--------- --------- --------- --------- --------- ---------
Total from investment operations............. 0.013 0.018 0.005 0.001 0.005 0.015
Less distributions from:
Dividends from net investment income......... (0.013) (0.018) (0.005) (0.001) (0.005) (0.015)
Net realized gains on investments............ (0.000) -- -- (0.000) -- --
--------- --------- --------- --------- --------- ---------
Total distributions.......................... (0.013) (0.018) (0.005) (0.001) (0.005) (0.015)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return................................. 1.29%(a) 1.77% 0.47% 0.13% 0.49% 1.48%
Ratios/Supplemental Data
Net assets, end of period (000's)............ $ 89,298 $ 122,467 $ 120,743 $ 106,058 $ 90,001 $ 67,782
Ratios to average net assets:
Expenses (net of fees waived) 1.00%(b) 1.00% 1.00% 0.98% 1.00% 1.00%
Net investment income...................... 2.55%(b) 1.76% 0.47% 0.12% 0.47% 1.43%
Distribution fees waived................... -- -- 0.00% 0.02% 0.01% 0.03%
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights (Continued)
Municipal Money Market Fund
-------------------------------------------------------------------------------
November 22, 2002
Advantage Shares Six Months Ended For the Year Ended March 31, (Commencement of
- ---------------- September 30, 2006 ------------------------------------------ Offering) to
(Unaudited) 2006 2005 2004 March 31, 2003
--------- ---------- ---------- ---------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ---------- ---------- ---------- ---------
Income from investment operations:
Net investment income........................ 0.013 0.017 0.005 0.002 0.001
Net realized and unrealized gain(loss) on
investments................................. 0.000 -- -- 0.000 --
--------- ---------- ---------- ---------- ---------
Total from investment operations............... 0.013 0.017 0.005 0.002 0.001
Less distributions from:
Dividends from net investment income......... (0.013) (0.017) (0.005) (0.002) (0.001)
Net realized gains on investments............ (0.000) ( -- ) ( -- ) (0.000) ( -- )
--------- ---------- ---------- ---------- ---------
Total distributions............................ (0.013) (0.017) (0.005) (0.002) (0.001)
--------- ---------- ---------- ---------- ---------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== =========
Total Return................................... 1.28%(a) 1.76% 0.53% 0.21% 0.12%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 121,020 $ 129,637 $ 126,133 $ 81,769 $ 112,686
Ratios to average net assets:
Expenses (net of fees waived)................ 1.02%(b) 1.01% 0.94% 0.90% 0.90%(b)
Net investment income........................ 2.54%(b) 1.74% 0.56% 0.21% 0.32%(b)
Distribution and shareholder servicing fees waived 0.23%(b) 0.24% 0.31% 0.35% 0.35%(b)
<FN>
(a) Not annualized
(b) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
================================================================================
ADDITIONAL INFORMATION ABOUT PORTFOLIO HOLDINGS
The Company is required to file its complete schedule of portfolio holdings with
the Securities and Exchange Commission ("SEC") on Form N-Q for its first and
third fiscal quarters. The Fund's Form N-Q is available without charge on the
SEC's website (http://www.sec.gov) or by calling the Fund toll free at (800)
433-1918. You can also obtain copies of the Fund's Form N-Q by visiting the
SEC's Public Reference Room in Washington, DC (please call the SEC at (800)
732-0330 for information on the operation of the Public Reference Room).
INFORMATION ABOUT PROXY VOTING
Information regarding the Company's proxy voting record for the 12 month period
ending June 30 of each year is filed with the SEC on Form N-PX no later than
August 31 of each year. The Company's Form N-PX is available without charge,
upon request, by calling the Company at (800) 433-1918 and on the SEC's website
(http//www.sec.gov). The Funds do not presently invest in voting securities and
has therefore not adopted proxy voting policies and procedures.
QUALIFIED INTEREST INCOME
For the fiscal year ended March 31, 2006, the Funds designate the following
percentages of ordinary distributions paid during the Funds' fiscal year that
are from qualified interest income to foreign shareholders:
Qualified Interest
Income
------
Cortland Trust, Inc. - Cortland General Money Market Fund 61%
Cortland Trust, Inc. - U.S. Government Fund 100%
APPROVAL OF THE MANAGEMENT/INVESTMENT ADVISORY AGREEMENTS
The Directors unanimously approved the continuance of each Management/Investment
Agreement between the Company on behalf of each Fund and the Manager at a
meeting held on June 8, 2006.
In preparation for the meeting, the Directors had requested and evaluated
extensive materials from the Manager, which included information on the
following factors:
1. the nature, extent and quality of investment management and administrative
services rendered by the Manager;
2. the investment performance of each Fund compared to other investment
companies with similar investment objectives and similar distribution
channels;
3. the costs borne by, and profitability of, the Manager and its affiliates in
providing services to the Funds and to all investment companies in the
Reich and Tang Funds Complex;
4. comparative fee and expense data for other investment companies with
similar investment objectives and similar distribution channels;
5. information about fees charged by the Manager to other clients with similar
investment objectives; and
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
APPROVAL OF THE MANAGEMENT/INVESTMENT ADVISORY AGREEMENTS,
(Continued)
6. the extent to which economies of scale would be realized as the Funds grow
and whether fee levels reflect these economies of scale for the benefit of
investors.
Prior to approving the continuance of the Management/Investment Advisory
Agreements, the Directors reviewed these materials with management and counsel
to the Directors who are independent of the Manager. The Directors received a
memorandum from such counsel discussing the legal standards for their
consideration of the proposed continuances. The Directors also discussed the
proposed continuance in an executive session with such counsel at which no
representatives of the Manager were present. In their deliberations, the
Directors did not identify any particular information that was all-important or
controlling, and each Director attributed different weights to the various
factors.
The Directors determined that the overall arrangements between the Company and
the Manager, as provided in each Management/Investment Advisory Agreement, were
fair and reasonable in light of the services performed, expenses incurred and
such other matters as the Directors considered relevant in the exercise of their
reasonable judgment.
The material factors and conclusions that formed the basis for the Directors'
reaching their determination to approve the continuance of each
Management/Investment Advisory Agreement, including their determinations that
the Manager should continue to serve as the Manager for the Funds and that the
fees payable to the Manager pursuant to each Management/Investment Advisory
Agreement are appropriate, were separately considered by the Directors.
Nature, extent and quality of services
The Board reviewed and considered the nature and extent of the investment
advisory services provided by the Funds' Manager under the Management/Investment
Advisory Agreements, including portfolio management, investment research and
trading in money market instruments. The Board also reviewed and considered the
nature and extent of the non-advisory, administrative services provided by the
Funds' Manager including accounting, clerical, bookkeeping, compliance, business
management and planning, and the provision of supplies, office space and
utilities at the Manager's expense.
The Board reviewed and considered the qualifications of the portfolio manager,
the senior administrative managers and other key personnel of the Manager who
provide the administrative and investment advisory services to the Funds. The
Board determined that the Manager's portfolio manager and key personnel are well
qualified by education and/or training and experience to perform the services in
an efficient and professional manner. The Board concluded that the nature and
extent of the advisory and administrative services provided were necessary and
appropriate for the conduct of the business and investment activities of the
Funds. The Board also concluded that the overall quality of the advisory and
administrative services was satisfactory.
Performance relative to comparable funds managed by other advisers
The Board reviewed the Funds' gross and net performance for the one, three, five
and ten-year periods ended April 30, 2006 compared to the performance of
comparable money market funds with similar distribution channels (the
"performance peer group").
In evaluating the Cortland General Fund's performance, the Directors noted that
its rankings in net performance compared to its "competitor group" for the one,
three, five and ten-year periods ended April 30, 2006 were first out of six,
first out of six, second out of six and third out of five, respectively. The
Board concluded that the performance of the Cortland General Fund was
satisfactory.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
================================================================================
APPROVAL OF THE MANAGEMENT/INVESTMENT ADVISORY AGREEMENTS, (Continued)
Performance relative to comparable funds managed by other advisers (continued)
In evaluating the Government Fund's performance, the Directors noted that its
rankings in net performance compared to its "competitor group" for the one,
three, five and ten-year periods ended April 30, 2006 were sixth out of six,
second out of six, second out of six and fifth out of five, respectively. The
Directors discussed with the Manager possible steps to improve performance.
In evaluating the Municipal Fund's performance, the Directors noted that its
rankings in net performance compared to its "competitor group" for the one,
three, five and ten-year periods ended April 30, 2006 were fourth out of five,
fourth out of five, second out of five and third out of four, respectively. The
Directors discussed with the Manager possible steps to improve performance.
Fees relative to other funds managed by the adviser with comparable investment
strategies
The Board reviewed the management fees paid by the Funds under the
Management/Investment Advisory Agreements. The Board noted that the contractual
management fee rate for each of the Cortland General and Municipal Funds was
higher than the contractual management fee rate charged by the Manager to other
funds it manages with investment strategies comparable to those of these Funds.
With respect to the Government Fund, the Board noted that no fund similar to the
Government Fund was advised/sub-advised by the Manager. The Directors noted that
the Funds operate under an all-inclusive fee arrangement and that the other
funds managed by the Manager do not offer services that the Company offers.
Fees and expenses relative to comparable funds managed by other advisers
The Board considered that the Funds' total expenses, including 12b-1 and
non-12b-1 service fees, compared to the "competitor groups" of other retail
money market funds, indicated that the Cortland General Fund was ranked second
out of six funds; that the Government Fund was ranked first out of six funds;
and that the Municipal Fund was ranked third out of five funds. The Board
concluded that the Funds' total expenses was competitive with the total expenses
of other retail money market funds.
Breakpoints and economies of scale
The Board noted that the management fee schedule of each Fund did include some
breakpoints, but that no breakpoints existed on the Company's average net assets
in excess of $1.5 billion. The Board concluded that the management fee of each
Fund reflects economies of scale.
Profitability of adviser
The Board considered and reviewed information concerning the costs incurred and
profits realized by the Manager during the last two years from its relationship
with the Fund and the Reich & Tang Fund Complex and reviewed with the Manager
the cost allocation methodology used to determine the Manager's profitability.
Based on their review of the information they received, the Board concluded that
the profits earned by the Manager were not excessive in light of the advisory,
administrative and other services provided to the Funds.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
APPROVAL OF THE MANAGEMENT/INVESTMENT ADVISORY AGREEMENTS,
(Continued)
Fall-out benefits
The Board considered so-called "fall-out benefits" derived by the Manager and
its affiliates from their relationship with the Funds and noted that there were
no "fall-out benefits."
Soft dollar benefits
The Board considered whether the Manager realizes any benefits from commissions
paid to brokers who execute securities transactions for the Funds ("soft
dollars"). The Board noted that the Funds invest only in fixed income
securities, which do not generate soft dollars.
Adviser financially sound and financially capable of meeting the funds' needs
The Board considered whether the Manager is financially sound and has the
resources necessary to perform its obligations under the Management/Investment
Advisory Agreements. The Board noted that the Manager's operations remain
profitable, although decreased revenues last year has reduced the profitability.
The Board concluded that the Manager has the financial resources necessary to
fulfill its obligations under the Management/Investment Advisory Agreements.
Historical relationship between the funds and the manager
The Board also reviewed and considered the historical relationship between the
Funds and the Manager, including the organizational structure of the Manager,
the policies and procedures formulated and adopted by the Manager for managing
the Funds' operations and the Board's confidence in the competence and integrity
of the senior managers and key personnel of the Manager. The Board concluded
that it is beneficial for the Funds to continue their relationship with the
Manager.
Other factors and current trends
The Board considered the controls and procedures adopted and implemented by the
Manager and monitored by the Funds' Chief Compliance Officer and concluded that
the conduct of business by the Manager indicates a good faith effort on its part
to adhere to high ethical standards in the conduct of the Funds' business.
General conclusion
After considering and weighing all of the above factors, the Board concluded it
would be in the best interest of the Funds and their shareholders to approve
renewal of the Management/Investment Advisory Agreements for another year.
- --------------------------------------------------------------------------------
CORTLAND
TRUST, INC.
Semi-Annual Report
September 30, 2006
(Unaudited)
CRT9/06S
Item 2: Code of Ethics
Not Applicable (disclosure required in annual report on N-CSR only).
Item 3: Audit Committee Financial Expert
Not Applicable (disclosure required in annual report on N-CSR only).
Item 4: Principal Accountant Fees and Services
Not Applicable (disclosure required in annual report on N-CSR only).
Item 5: Audit Committee of Listed Registrants
Not Applicable.
Item 6: Schedule of Investments
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
Item 7: Discholsure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not Applicable.
Item 8: Purchase of Equity Securties by Closed-End Management Investment Company
and Affiliated Purchasers
Not Applicable.
Item 9: Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
Item 10: Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and procedures
were effective in ensuring that information required to be disclosed by
the registrant in this Form N-CSR was recorded, processed, summarized
and reported on a timely basis.
(b) There were no changes in the registrant's internal controls 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 affect, the registrant's internal controls over
financial reporting.
Item 11: Exhibits
(a)(1) Not Applicable (disclosure required in annual report on N-CSR only).
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not Applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. ss.1350.
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) Cortland Trust, Inc.
By (Signature and Title)* /s/Rosanne Holtzer, Secretary
-----------------------------
Rosanne Holtzer, Secretary
Date: December 6, 2006
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/Steven W. Duff, President
----------------------------
Steven W. Duff, President
Date: December 6, 2006
By (Signature and Title)* /s/Anthony Pace, Treasurer
--------------------------
Anthony Pace, Treasurer
Date: December 6, 2006
* Print the name and title of each signing officer under his or her signature.