As filed with the Securities and Exchange Commission on June 6, 2007
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: March 31, 2007
Item 1: Report to Stockholders
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600 Fifth Avenue
CORTLAND New York, NY 10020
TRUST, INC. (212) 830-5200
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Dear Shareholder:
We are pleased to present the annual report of Cortland Trust, Inc. (the
"Company") for the year ended March 31, 2007.
As of March 31, 2007, the Cortland General Money Market Fund had 14,937
shareholder accounts and net assets of $1,978,791,488.
The U.S. Government Fund had 618 shareholder accounts and net assets of
$51,328,231.
The Municipal Money Market Fund had 1,984 shareholder accounts and net assets of
$46,677,400.
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 MARCH 31, 2007
(UNAUDITED)
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As a shareholder of the Funds, 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 October 1, 2006 through March 31, 2007.
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
10/01/06 3/31/07 Period*
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Actual $1,000.00 $1,021.70 $5.04
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Hypothetical (5% return before $1,000.00 $1,019.95 $5.04
expenses)
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Short Term Fund Shares Beginning Account Value Ending Account Value Expenses Paid During the
10/01/06 3/31/07 Period*
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Actual $1,000.00 $1,021.60 $5.14
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Hypothetical (5% return before $1,000.00 $1,019.85 $5.14
expenses)
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Xpress Shares Beginning Account Value Ending Account Value Expenses Paid During the
10/01/06 3/31/07 Period*
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Actual $1,000.00 $1,020.50 $6.30
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Hypothetical (5% return before $1,000.00 $1,018.70 $6.29
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
10/01/06 3/31/07 Period*
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Actual $1,000.00 $1,021.40 $5.04
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Hypothetical (5% return before $1,000.00 $1,019.95 $5.04
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
10/01/06 3/31/07 Period*
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Actual $1,000.00 $1,013.80 $4.82
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Hypothetical (5% return before $1,000.00 $1,020.14 $4.84
expenses)
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*Expenses are equal to the Fund's annualized expense ratios of 1.00%, 1.02% and
1.25%, for Cortland General Money Market Fund's Cortland shares, Short Term Fund
shares and Xpress shares, respectively and 1.00% for the U.S. Government Fund's
Cortland shares and 0.96% for the Municipal Money Market Fund's Cortland shares,
multiplied by the average account value over the period (October 1, 2006 through
March 31, 2007), multiplied by 182/365 (to reflect the most recent fiscal
half-year).
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Asset Backed Commercial Paper (8.42%)
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$ 50,000,000 Charta LLC
Insured by AMBAC Indemnity Corporation 04/12/07 5.30% $ 49,919,601
75,000,000 Chesham Finance, Limited 04/12/07 5.30 74,879,114
20,000,000 Chesham Finance , Limited 04/19/07 5.30 19,947,250
21,967,000 Old Slip Funding Corporation 04/26/07 5.31 21,886,302
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166,967,000 Total Asset Backed Commercial Paper 166,632,267
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Commercial Paper (11.21%)
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$ 96,775,000 Britannia Building Socitty 05/09/07 5.31% $ 96,238,195
75,878,000 Long Lane Master Trust IV 04/20/07 5.30 75,667,354
50,000,000 Three Rivers Funding Corporation 04/17/07 5.30 49,882,778
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222,653,000 Total Commercial Paper 221,788,327
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Domestic Certificates of Deposit (3.54%)
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$ 70,000,000 Wells Fargo Bank 04/20/07 5.25% $ 70,000,000
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70,000,000 Total Domestic Certificates of Deposit 70,000,000
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Eurodollar Certificates of Deposit (8.34%)
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$ 15,000,000 Credit Agricole Indosuez 04/23/07 5.31% $ 14,999,396
25,000,000 Landsbank Baden Wurtemburg 04/19/07 5.29 24,999,874
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
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165,000,000 Total Eurodollar Certificates of Deposit 164,999,270
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Floating Rate Securities (11.51%)
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$ 40,000,000 Bank of America Federal Funds Floater (b) 05/15/07 5.32% $ 40,000,000
50,000,000 Canadian Imperial Bank of Commerce (c) 10/18/07 5.39 50,000,000
5,000,000 Canadian Imperial Bank of Commerce (d) 11/26/07 5.38 4,999,685
7,800,000 CFM International Inc. Guaranteed Notes - Series 1999A (e)
Guaranteed General Electric Company 01/01/10 5.34 7,800,000
15,000,000 General Electric Capital Corporation
Extendible Monthly Securities (f) 10/17/07 5.45 15,000,000
40,000,000 Kreditbank (g) 05/22/07 5.35 40,000,000
25,000,000 Merrill Lynch & Co, Inc. (h) 05/14/07 5.29 25,000,000
45,000,000 Merrill Lynch Twelve Month Exchange (i) 01/04/08 5.40 45,000,000
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227,800,000 Total Floating Rate Securities 227,799,685
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The accompanying notes are an intergral part of these financial statements.
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Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
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Foreign Commercial Paper (2.53%)
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$ 50,000,000 Anglo Irish Corporation PLC 04/05/07 5.32% $ 49,970,778
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50,000,000 Total Foreign Commercial Paper 49,970,778
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Letter of Credit Commercial Paper (0.50%)
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$ 10,000,000 Dean Health System, Inc.
LOC Fortis Bank S.A./N.V. 04/19/07 5.29% $ 9,973,650
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10,000,000 Total Letter of Credit Commercial Paper 9,973,650
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Loan Participations (3.28%)
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$ 65,000,000 COS-MAR Company (GE Petrochemical)
Guaranteed by General Electric Company 04/26/07 5.31% $ 65,000,000
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65,000,000 Total Loan Participations 65,000,000
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Medium Term Note (2.53%)
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$ 50,000,000 Sigma Finance, Inc. 04/30/07 5.25% $ 50,000,000
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50,000,000 Total Medium Term Note 50,000,000
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Other Notes (0.15%)
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$ 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 1,500,506
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3,050,000 Total Other Notes 3,050,506
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Repurchase Agreements (3.79%)
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$ 75,000,000 Annaly Mortgage Management, Inc. purchased on 03/30/07,
repurchase proceeds at maturity $75,033,375
(Collateralized by $83,848,461, GNMA, 5.00% to 6.00%,
due 02/20/33 to 10/20/34, value $76,500,001) 04/02/07 5.34% $ 75,000,000
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75,000,000 Total Repurchase Agreements 75,000,000
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Time Deposit (1.11%)
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$ 22,000,000 Dresdner Bank 04/02/07 5.43% $ 22,000,000
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22,000,000 Total Time Deposit 22,000,000
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Variable Rate Demand Instruments (j) (26.61%)
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$ 1,880,000 361 Summit Blvd. LLC - Series 2003
LOC First Commercial Bank 05/01/28 5.37% $ 1,880,000
2,000,000 1212 Jackson, LLC - Series 2004
LOC Fifth Third Bank 09/01/24 5.37 2,000,000
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The accompanying notes are an integral part of these finacial statements.
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CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
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$ 1,875,000 1800 Indian Wood, Ltd. - Series 2005
LOC Fifth Third Bank 04/01/26 5.37% $ 1,875,000
1,810,000 2150 Investment Company - Series 1997
LOC Fifth Third Bank 02/01/17 5.37 1,810,000
4,400,000 A&M Associates Project - Series 2002
LOC US Bank, N.A. 12/01/34 5.38 4,400,000
900,000 Adams County, CO Housing Agency
(Semper Village Apartments) - Series 2004C
Guaranteed by Federal National Mortgage Association 07/15/37 5.39 900,000
3,025,000 Alabama HOPO Realty Investment LLC - Series 2001
LOC SouthTrust Bank 12/01/21 5.39 3,025,000
1,970,000 Alabama Incentives Finance Authority, - Series 1999C
Insured by AMBAC Assurance Corp. 10/01/29 5.32 1,970,000
2,375,000 Alatrade Foods LLC - Series 2004
LOC Amsouth Bank 12/01/14 5.37 2,375,000
2,000,000 Albany, NY Industrial Development Agency
Civic Facilities RB - Series 2006B
LOC Citizens Bank 05/01/35 5.32 2,000,000
445,000 Andrews Laser Works Corporation - Series 1998
LOC National City Bank 05/01/08 5.45 445,000
800,000 Atlantic Tool & Die Company - Series 1996
LOC KeyBank, N.A. 12/01/11 5.37 800,000
1,875,000 Atlantic Tool & Die Company - Series 2002
LOC KeyBank, N.A. 03/01/17 5.37 1,875,000
185,000 Barnes & Thornburg LLP - Series 2003
LOC Fifth Third Bank 07/01/08 5.37 185,000
1,900,000 Barnes & Thornburg LLP - Series 2005
LOC Fifth Third Bank 12/01/55 5.37 1,900,000
7,713,000 BB Auto Land of Roswell, LLC - Series 2003A
LOC Bank of North Georgia 05/01/23 5.47 7,713,000
2,320,000 BBC, LLC - Series 2000
LOC Columbus Bank & Trust Company 11/01/20 5.32 2,320,000
2,790,000 Bennett Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 5.37 2,790,000
845,000 Berkeley Square Retirement Center - Series 1998A
LOC Fifth Third Bank 02/01/13 5.42 845,000
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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)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
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$ 3,180,000 Bob Sumerel Tire Co, Inc. - Series 1999
LOC Fifth Third Bank 04/01/19 5.37% $ 3,180,000
2,700,000 Brookville Enterprises - Series 2004
LOC Fifth Third Bank 10/01/25 5.37 2,700,000
2,100,000 Burke County, GA Development Authority IDRB - Series 2002
(Lichtenberg Holdings II, LLC)
LOC JPMorgan Chase Bank, N.A. 01/01/13 5.32 2,100,000
2,960,000 Butler County Surgical Properties, LLC - Series 2005
LOC Fifth Third Bank 07/01/25 5.37 2,960,000
3,000,000 Bybee Foods LLC
LOC Key Bank, N.A. 11/01/26 5.37 3,000,000
4,010,000 Carmichael Imaging, LLC - Series 2002
LOC Regions Bank 11/01/10 5.32 4,010,000
3,100,000 CEGW, Inc.
LOC PNC Bank, N.A 03/31/09 5.35 3,100,000
1,990,000 Central Michigan Inns, LLC (Pohlcat Inc.) - Series 2000A
LOC Wachovia Bank, N.A. 04/01/30 5.39 1,990,000
4,500,000 Charles K. Blandin Foundation - Series 2004
LOC Wells Fargo Bank, N.A. 05/01/19 5.42 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
3,070,000 Cheney Brothers, Inc. - Series 1996
LOC Wachovia Bank, N.A 12/01/16 5.49 3,070,000
645,000 Chuo Mubea Suspension Components Company - Series 2004
LOC Fifth Third Bank 01/01/11 5.37 645,000
2,745,000 Cinnamon Properties, Inc.
LOC US Bank, N.A. 04/01/20 5.35 2,745,000
2,300,000 Cirrus Development Ltd. - Series 1999
LOC US Bank, N.A. 05/01/14 5.35 2,300,000
1,665,000 City of Portland, OR EDRB (Broadway Project) - Series 2003B
Insured by AMBAC Assurance Corporation 04/01/11 5.32 1,665,000
1,185,000 Cole Investments LLC
LOC Fifth Third Bank 07/01/19 5.37 1,185,000
3,720,000 Columbus Area, Inc., OH - Series 2004
LOC Key Bank, N.A. 07/01/24 5.37 3,720,000
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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)
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
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$ 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 5.32 3,880,000
2,930,000 Columbus, GA Development Authority Industrial Development RB
(Columbus Economic Development Corpoation/
Bricken Financial Project) - Series 2006
LOC Wachovia Bank, N.A. 02/01/26 5.39 2,930,000
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
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
1,310,000 Consolidated Equities, LLC - Series 1995
LOC Fifth Third Bank 12/01/25 5.37 1,310,000
9,170,000 Country Club of the South - Series 2002
LOC Bank of North Georgia 12/01/31 5.42 9,170,000
4,715,000 Crestmont Nursing Home - Series 2004
LOC Fifth Third Bank 03/01/24 5.35 4,715,000
6,215,000 Cubba Capital, LLC - Series 2005A
LOC Comerica Bank 03/01/55 5.37 6,215,000
4,000,000 D & G Conduit LLC - Series 2003
LOC Amsouth Bank, N.A. 10/01/23 5.32 4,000,000
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 5.35 2,010,000
3,410,000 Dussel Realty Investment LLC
LOC National City Bank 02/01/18 5.38 3,410,000
3,280,000 Eckert Seamans Cherin & Mellot, LLC - Series 2000
LOC PNC Bank, N.A. 01/01/15 5.37 3,280,000
4,045,000 Elsinore Properties Ltd. - Series 1999
LOC Fifth Third Bank 01/01/29 5.37 4,045,000
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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)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 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
1,890,000 Fannin & Fannin LLC
LOC Fifth Third Bank 12/01/24 5.37 1,890,000
3,690,000 FE, LLC - Series 1998A
LOC Fifth Third Bank 04/01/28 5.35 3,690,000
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
1,365,000 First Park Place LLC
LOC Fifth Third Bank 12/01/19 5.37 1,365,000
1,360,000 G & J Properties II, LLC - Series 2002
LOC Fifth Third Bank 09/01/23 5.37 1,360,000
1,405,000 Garfied Investment Group
LOC Fifth Third Bank 07/01/28 5.37 1,405,000
1,500,000 Genesee County, MI Taxable Obligation Notes 11/01/08 5.43 1,500,000
800,000 Gilead Friends Church - Series 2002
LOC Fifth Third Bank 10/01/17 5.37 800,000
1,385,000 Goson Project - Series 1997
LOC Federal Home Loan Bank of Cincinnati 11/01/17 5.38 1,385,000
2,070,000 Grace Community Church of Amarillo - Series 2005
LOC Wells Fargo Bank, N.A. 02/01/30 5.32 2,070,000
1,400,000 Great Expectations Ltd. (Bass Chevrolet) - Series 1996
LOC Fifth Third Bank 07/01/17 5.45 1,400,000
1,365,000 HCH, LLC - Series 2000
LOC Key Bank,N.A. 08/01/15 5.37 1,365,000
3,270,000 Healtheum, LLC - Series 2004
LOC Wells Fargo Bank, N.A. 11/01/29 5.38 3,270,000
2,310,000 Henderson, OH Regional Authority
LOC Fifth Third Bank 07/01/23 5.37 2,310,000
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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)
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 6,555,000 Holland-Sheltair Aviation Funding, LLC - Series 2005-B4
LOC Mellon Bank, N.A. 05/01/35 5.32% $ 6,555,000
1,800,000 Hoosier Stamping Manufacturing Corp. - Series 2004
LOC Fifth Third Bank 07/01/36 5.37 1,800,000
890,000 Hope Realty, Ltd. & Harmony Realty, Ltd. (Kurtz Bros., Inc.)
- Series 2000
LOC KeyBank, N.A. 08/01/15 5.37 890,000
1,800,000 Hopkins Waterhouse LLC Project
LOC National City Bank 06/01/20 5.38 1,800,000
1,770,000 Hopo Realty Investment, LLC - Series 2001
LOC Suntrust Bank 12/01/21 5.39 1,770,000
1,709,000 HRH Capital LLC - Series 2003
LOC Fifth Third Bank 03/01/22 5.37 1,709,000
2,930,000 Hudson Toyota And Hyundai Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 5.37 2,930,000
800,000 Illinois Development Finance Authority
(Harbortown Industry Inc. Project) - Series 2000
LOC LaSalle Bank, N.A. 12/01/20 5.41 800,000
1,612,500 IOP Properties LLC
LOC Fifth Third Bank 04/01/44 5.37 1,612,500
1,300,000 Jacksons Food Stores, Inc. - Series 2006
LOC Key Bank, N.A. 03/01/16 5.35 1,300,000
980,000 James B. Krewatch & Marden H. Krewatch
Revocable Living Trust - Series 2005
LOC Fifth Third Bank 11/01/25 5.37 980,000
2,190,000 JBM Realty Company
LOC Fifth Third Bank 05/01/22 5.37 2,190,000
635,000 KBL Capital Fund, Inc.(BH Reality Limited Partnership)
- Series 1996A
LOC Fifth Third Bank 05/01/21 5.32 635,000
1,830,000 Keating Muething Klekamp
LOC Fifth Third Bank 11/01/24 5.37 1,830,000
3,187,000 KFDT L.P. - Series 2005
LOC Fifth Third Bank 04/01/35 5.37 3,187,000
4,715,000 Kingston Healthcare Company - Series 2003A
LOC Fifth Third Bank 08/01/25 5.32 4,715,000
1,715,000 Kingston Healthcare Company - Series 1998A
LOC Fifth Third Bank 03/01/18 5.35 1,715,000
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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 (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 700,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997
LOC Wells Fargo Bank, N.A. 06/01/27 5.33% $ 700,000
4,090,000 Kool Capital, LLC
LOC Michigan National Bank 04/01/29 5.49 4,090,000
2,040,000 L3 Corporation - Series 2002
LOC Fifth Third Bank 11/01/17 5.37 2,040,000
4,575,000 Lakeland Income Properties, LLC - Series 2004
LOC Federal Home Loan Bank 04/01/29 5.32 4,575,000
5,315,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project)
LOC Fifth Third Bank 03/01/15 5.38 5,315,000
1,740,000 Le Sportsac Inc. - Series 2005
LOC Fifth Third Bank 11/01/14 5.37 1,740,000
420,000 Lee County, FL Multifamily HFA RB
(Crossings at Cape Coral Apartments Project) - Series 1999B
LOC Suntrust Bank 06/01/14 5.42 420,000
2,840,000 Lock Inns, Inc. - Series 2003
LOC Bank of North Georgia 02/01/23 5.41 2,840,000
1,695,000 Lockland Development Company Ltd. - Series 2000
LOC US Bank, N.A. 07/01/20 5.40 1,695,000
500,000 LRC - B Wadsworth Investors, Ltd. - Series 1997
LOC US Bank, N.A. 09/01/17 5.50 500,000
1,000,000 LRC - Meadows Investors LLC - Series 2004
LOC JPMorgan Chase Bank, N.A. 12/01/34 5.41 1,000,000
6,695,000 Madison, WI Community Development Authority RB
(Block 89 Project) - Series 1996A 01/01/19 5.32 6,695,000
5,750,000 Madison, WI Community Development Authority RB
(Block 89 Project) - Series 2000 07/01/20 5.32 5,750,000
895,000 Manatee County, FL Multifamily HFA RB - Series 2002B
(La Mirada Gardens Project)
LOC Suntrust Bank 11/01/33 5.32 895,000
2,422,100 Materials Processing Inc. - Series 2004
LOC Fifth Third Bank 09/01/34 5.37 2,422,100
2,735,000 Maximum Principle Amount Limited Partnership
(Riverview Medical Office Building) - Series 1997
LOC National City Bank 11/01/17 5.38 2,735,000
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 6,850,000 MBE Investment Company LLC - Series 2004-A
LOC Comerica Bank 12/01/54 5.37% $ 6,850,000
1,075,000 Miami River Stone Company - Series 2002
LOC US Bank, N.A. 08/01/09 5.42 1,075,000
1,130,000 Michigan City, IN (Consolidated Biscuit Company)
LOC Fifth Third Bank 10/01/13 5.37 1,130,000
2,015,000 Michigan HEFA (Hope College) - Series 1996M
LOC Fifth Third Bank 10/01/16 5.37 2,015,000
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 5.32 1,810,000
900,000 Mississippi Business Finance Corporation, IDRB
(Colle Towing Project) - Series 2004
LOC Regions Bank 10/01/19 5.32 900,000
4,800,000 Mississippi Business Finance Corporation IDRB
(Pottery Barn Inc. Project) - Series 2004
LOC Bank of America, N.A. 06/01/24 5.40 4,800,000
2,850,000 Mississippi Business Finance Corporation IDRB
(Wade Inc. Project) - Series 2006
LOC Regions Bank 02/01/21 5.32 2,850,000
2,865,000 Mississippi Business Finance Corporation IDRB
(TTW Farm Products Inc.)
LOC Amsouth Bank 11/01/11 5.32 2,865,000
2,370,000 Montgomery Cancer Center LLC - Series 1997
LOC Wachovia Bank, N.A. 10/01/12 5.32 2,370,000
4,965,000 Montgomery County, PA (Kingswood Apartments Project)
Collateralized by Federal National Mortgage Association 08/15/31 5.32 4,965,000
865,000 Montgomery, AL IDB (The Jobs Company, LLC Project) -Series 1996C
LOC Columbus Bank & Trust Company 07/01/16 5.32 865,000
2,100,000 Mount Carmel West Medical Office Building LP - Series 1999
LOC National City Bank of Michigan/Illinois 08/01/19 5.38 2,100,000
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
- --------------------------------------------------------------------------------
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 (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,615,000 New Lexington Clinic, P.S.C. - Series 2003
LOC Fifth Third Bank 05/01/18 5.37% $ 1,615,000
1,700,000 New York State HFA RB (345 East 94th Street)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/31 5.34 1,700,000
1,600,000 NO S Properties, LLC - Series 2004
LOC Fifth Third Bank 08/01/24 5.37 1,600,000
7,200,000 North Lagoon Partners, Inc. - Series 2004
LOC Columbus Bank & Trust Company 10/01/29 5.32 7,200,000
1,775,000 NPI Capital, LLC - Series 1999A
LOC Michigan National Bank 07/01/29 5.42 1,775,000
7,060,000 Nugent Sand Company - Series 1999
LOC National City Bank of Kentucky 11/01/11 5.38 7,060,000
6,900,000 Olathe, KS IDRB ( Diamant Boart Project) - Series 1997B
LOC Svenska Handelsbanken 03/01/27 5.47 6,900,000
5,840,000 Opelika IDA (Opelika Industrial Park Project) - Series 1998A
Insured by MBIA Insurance Corp. 06/01/23 5.34 5,840,000
1,225,000 Ordeal Properties LLC - Series 1997
LOC KeyBank, N.A. 10/01/12 5.37 1,225,000
1,010,000 Oswego County, NY IDA Civic Facilities
(OH Properties, Inc Project - B)
LOC Manufacturers & Traders & Trust Co. 06/01/24 5.37 1,010,000
2,475,000 Oxmoor West, LLC - Series 2006
LOC First Commercial Bank 04/01/26 5.32 2,475,000
2,220,000 Parisi Investment, LP & Supply Co. - Series 1998
LOC US Bank, N.A. 05/01/18 5.35 2,220,000
970,000 PBSI Properties, LLC - Series 2004
LOC Huntington National Bank 03/01/34 5.45 970,000
1,750,000 Peachtree Crest Professional Offices - Series 2003
LOC Bank of North Georgia 03/01/23 5.42 1,750,000
3,900,000 Pennsylvania Economic Development Finance Authority
(Repete Associates Project) - Series 2005 B3
LOC PNC Bank,N.A. 08/01/25 5.34 3,900,000
3,300,000 Radiation Oncology Partners, LLP
LOC SouthTrust Bank 08/01/18 5.32 3,300,000
4,015,000 Rawcar Group, LLC - Series 2006
LOC National City Bank of the Midwest 04/01/36 5.38 4,015,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,435,000 Realty Holdings Co. LLC - Series 2004
LOC Fifth Third Bank 05/01/24 5.37% $ 2,435,000
3,490,000 Robert C. Fox Jr. (Fox Racing Shoe Project) - Series A
LOC Comerica Bank 06/01/33 5.38 3,490,000
3,965,000 Rockwood Quarry LLC - Series 2002
LOC Fifth Third Bank 12/01/22 5.35 3,965,000
3,330,000 Rogers Bridge Road & Southern Properties, LLC - Series 2002
LOC Bank of North Georgia 01/01/23 5.47 3,330,000
730,000 S & L Plastic Inc.
LOC Fleet Bank 07/01/08 5.37 730,000
1,035,000 S & S Partnership (Model Graphics) - Series 1999
LOC US Bank 09/01/19 5.45 1,035,000
1,295,000 Sand Run Nursery & Preserve LLC - Series 2004
LOC US Bank,N.A. 03/01/24 5.42 1,295,000
2,425,000 Savoy Properties, Ltd. - Series 2000
LOC KeyBank,N.A. 08/01/20 5.37 2,425,000
2,800,000 Security Self-Storage, Inc. - Series 2005
LOC Fifth Third Bank 05/01/35 5.37 2,800,000
4,085,000 Security Self-Storage, Inc. - Series 1999
LOC Bank One 02/01/19 5.38 4,085,000
3,330,000 Servaas, Inc. - Series 2003
LOC Fifth Third Bank 03/01/13 5.37 3,330,000
3,145,000 Shepherd Capital LLC
LOC Fifth Third Bank 03/15/49 5.49 3,145,000
4,550,000 Smugglers Notch Management Company, Ltd. and
Smugglers Notch Investment Company, Ltd. - Series 2000
LOC KeyBank,N.A. 09/01/15 5.37 4,550,000
600,000 Southern Central Communications Corporation - Series 2003
LOC Fifth Third Bank 04/01/18 5.35 600,000
13,000,000 Southern Ute Indian Tribe Reservation 01/01/27 5.38 13,000,000
1,660,000 Southern Orthopaedic Properties LLC - Series 2001
LOC Columbus Bank & Trust Company 10/01/21 5.32 1,660,000
2,700,000 Southwestern Ohio Steel, Inc.
LOC US Bank, N.A. 04/01/08 5.41 2,700,000
1,260,000 Stallard-Schrier Family LP - Series 1996
LOC Fifth Third Bank 09/01/16 5.42 1,260,000
- --------------------------------------------------------------------------------
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 (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 980,000 State Crest Ltd. - Series 2000
LOC Fifth Third Bank 06/01/23 5.37% $ 980,000
5,001,000 Stonegate-Partners I, LLC (Stonegate Partners Project)
- Series 2002
LOC US Bank, N.A. 06/01/34 5.38 5,001,000
845,000 T.D. Management Ltd. - Series 1996
LOC Fifth Third Bank 01/01/11 5.42 845,000
2,200,000 Tampa Bay, FL (Elders Land Development) - Series 2003
LOC Fifth Third Bank 09/01/23 5.37 2,200,000
2,575,000 Tant Real Estate, LLC - Series 2003
LOC Columbus Bank & Trust Company 03/01/23 5.32 2,575,000
3,160,000 Taylor Station Surgery Center Project - Series 2002
LOC National City Bank 12/01/22 5.38 3,160,000
7,125,000 Thayer Properties II, LLC - Series 2001
LOC Columbus Bank & Trust Company 09/01/21 5.39 7,125,000
1,710,000 The Home City Ice Company & HC Transport, Inc., Series - 2004
LOC U.S. Bank N.A. 05/01/19 5.50 1,710,000
5,780,000 The Shoppes at Edgewater - Series 2003
LOC Amsouth Bank 01/01/23 5.32 5,780,000
6,980,000 Three Reading LP
LOC Federal Home Loan Bank of Pittsburg 06/01/24 5.40 6,980,000
1,820,000 Tisdel Holdings Inc. - Series 2000
LOC Huntington National Bank 09/01/20 5.50 1,820,000
2,875,000 Town of Islip, NY IDA (Brentwood Real Estate LLC) - Series 2000
LOC Citibank, N.A. 11/01/20 5.35 2,875,000
6,170,000 Triple Crown Investments, LLC - Series 2004
LOC Federal Home Loan Bank of Dallas 08/01/25 5.32 6,170,000
1,960,000 Trotman Bay Minette, Inc. - Series 2000
LOC Columbus Bank & Trust Company 01/01/21 5.32 1,960,000
2,640,000 Twelfth Street Partners, LLC - Series 2005
LOC Fifth Third Bank 04/01/25 5.37 2,640,000
4,550,000 Unico Alloys & Metals - Series 2004
LOC National City Bank 08/01/24 5.35 4,550,000
795,000 Vincent Enterprise & Partners - Series 2000
LOC KeyBank, N.A. 03/01/20 5.37 795,000
1,590,000 Vista Funding Corporation - Series 1997A
LOC Fifth Third Bank 07/01/15 5.40 1,590,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
CORTLAND GENERAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Variable Rate Demand Instruments (j) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 700,000 Walt Sweeney Ford - Series 1996
LOC Fifth Third Bank 01/01/12 5.45% $ 700,000
545,000 Warrior Roofing Manufacturing, Inc. - Series 2001
LOC Columbus Bank & Trust Company 09/01/26 5.44 545,000
3,720,000 Watson's Dayton Properties, LLC - Series 2002A
LOC US Bank, N.A. 07/01/18 5.40 3,720,000
7,020,000 Wellington Green LLC - Series 1999
LOC Charter One Bank 04/01/29 5.37 7,020,000
9,200,000 Wellstone Mills LLC - Series 2004A
LOC PNC Bank, N.A. 12/15/24 5.37 9,200,000
3,400,000 West Coast Pack, LLC - Series 2005
LOC LaSalle Bank, N.A. 07/01/35 5.38 3,400,000
1,800,000 Westchester County, NY IDA RB (B.W.P. Distributors Inc.)
- Series 1997
LOC Wachovia Bank, N.A. 10/01/28 5.44 1,800,000
495,000 Westchester Presbyterian Church
LOC US Bank, N.A. 09/01/13 5.50 495,000
4,900,000 Willow Creek Interest LLC, OH - Series 2005
LOC Fifth Third Bank 04/01/25 5.37 4,900,000
1,410,000 Wilmington Iron & Metal Company - Series 1999
LOC Bank One 08/01/14 5.41 1,410,000
4,341,236 Wilmington Trust Company (Amtrak Trust 93-A) - Series B Notes
Guaranteed by General Electric Company 01/01/11 5.34 4,341,236
8,125,000 Winder-Barrow Industrial Building Authority
(The Concrete Company Project) - Series 2000
LOC Columbus Bank & Trust Company 02/01/20 5.32 8,125,000
990,000 Windsor Medical Center, Inc. - Series 1997
LOC Federal Home Loan Bank 12/03/18 5.38 990,000
1,000,000 Word of Deliverence - Series 2004
LOC Fifth Third Bank 12/01/24 5.37 1,000,000
- -------------- --------------
526,450,836 Total Variable Rate Demand Instruments 526,450,836
- -------------- --------------
Yankee Certificates of Deposit (15.16%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 Bayerische Hypo-Und Verinsbank 05/09/07 5.29% $ 25,000,000
50,000,000 Deutsche Zentral - Genossenschafts Bank 04/13/07 5.30 50,000,000
40,000,000 Deutsche Zentral - Genossenschafts Bank 04/26/07 5.29 40,000,000
50,000,000 HBOS PLC 06/04/07 5.42 50,000,000
75,000,000 Standard Chartered PLC 05/10/07 5.29 75,000,000
30,000,000 Toronto Dominion 04/13/07 5.31 29,999,863
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Yankee Certificates of Deposit (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Union Bank of Switzerland 05/07/07 5.29% $ 30,000,000
- -------------- --------------
300,000,000 Total Yankee Certificates of Deposit 299,999,863
- -------------- --------------
Total Investments (98.68%) (Cost $1,952,665,182+) 1,952,665,182
Cash and other assets, net of liabilities (1.32%) 26,126,306
--------------
Net Assets (100.00%) $1,978,791,488
==============
+ Aggregate cost for income tax purposes is identical.
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 0.065%.
(c) The interest rate changes daily based upon Federal funds target plus 0.09%.
(d) The interest rate changes daily based upon Federal funds open plus 0.14%.
(e) The interest rate is adjusted weekly based upon average of prior week one
month LIBOR Plus 0.05%; weekly put at par.
(f) The interest rate is adjusted monthly based upon one month LIBOR plus
0.125%.
(g) The interest rate changes daily based upon Federal funds target plus 0.10%.
(h) The interest rate is adjusted monthly based upon one month LIBOR minus
0.035%.
(i) The interest rate is adjusted monthly based upon one month LIBOR plus 0.08%.
(j) 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
GNMA = Government National Mortgage Association IDRB = Industrial Development Revenue Bond
GO = General Obligation LOC = Letter of Credit
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
MARCH 31, 2007
================================================================================
- -------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Less than 31 Days $ 1,673,376,482 85.70%
31 through 60 Days 226,238,194 11.58
61 through 90 Days 51,500,506 2.64
91 through 120 Days -0- -0-
121 through 180 Days 1,550,000 0.08
Over 180 Days -0- -0-
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Total $ 1,952,665,182 100.00%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
================================================================================
Face Maturity Current Value
Amount Date Coupon (a) (Note 1)
- ----------- ------ ---------- --------
Floating Rate Securities (9.75%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Student Loan Marketing Assocition 07/25/07 5.58% $ 5,003,973
- -------------- --------------
5,000,000 Total Floating Rate Securities 5,003,973
- -------------- --------------
Loan Participation (7.79%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 4,000,000 Army and Air Force Exchange Service with
JP Morgan Chase & Company 04/18/07 5.31% $ 4,000,000
- -------------- --------------
4,000,000 Total Loan Participation 4,000,000
- -------------- --------------
Repurchase Agreement (19.48%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 UBS Securities, LLC, purchased on 03/30/07,
repurchase proceeds at maturity $10,004,442
(Collateralized by $8,618,000, FNMA, 4.50% to 5.00%,
due 07/15/13 to 02/13/07, value $10,204,154) 04/02/07 5.33% $ 10,000,000
- -------------- --------------
10,000,000 Total Repurchase Agreement 10,000,000
- -------------- --------------
U.S. Government Agency Bonds (11.51%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Bank 04/04/07 5.23% $ 5,000,000
910,000 Federal Home Loan Bank 08/15/07 5.25 904,810
- -------------- --------------
5,910,000 Total U.S. Government Agency Bonds 5,904,810
- -------------- --------------
U.S. Government Agency Discount Notes (50.81%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,580,000 Federal Farm Credit Bank 04/05/07 5.17% $ 2,578,521
5,000,000 Federal Home Loan Bank 04/02/07 5.00 4,999,305
5,000,000 Federal Home Loan Bank 04/04/07 5.10 4,997,875
3,100,000 Federal Home Loan Bank 04/11/07 5.16 3,095,557
3,000,000 Federal Home Loan Mortgage Corporation 04/13/07 5.34 2,994,900
1,843,000 Federal Home Loan Mortgage Corporation 05/29/07 5.26 1,827,960
2,760,000 Federal National Mortgage Association 05/23/07 5.29 2,739,664
1,015,000 Federal National Mortgage Association 05/31/07 5.27 1,006,398
1,856,000 Federal National Mortgage Association 06/01/07 5.21 1,840,150
- -------------- --------------
26,154,000 Total U.S. Government Agency Discount Notes 26,080,330
- -------------- --------------
Total Investments (99.34%) (Cost $50,989,113+) 50,989,113
Cash and other assets, net of liabilities (0.66%) 339,118
--------------
Net Assets (100.00%) $ 51,328,231
==============
+ Aggregate cost for federal income tax purposes is identical.
(a) The interest rate shown reflects the security's yield, unless coupon is
available.
KEY:
FNMA = Federal National Mortgage Association
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
U.S GOVERNMENT FUND
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
MARCH 31, 2006
================================================================================
- -------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Less than 31 Days $ 42,670,130 83.69%
31 through 60 Days 4,567,625 8.96
61 through 90 Days 2,846,548 5.58
91 through 120 Days -0- -0-
121 through 180 Days 904,810 1.77
Over 180 Days -0- -0-
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Total $ 50,989,113 100.00%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- ---------- ------ ---------- ------ ------- --------
Put Bonds (c) (14.79%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 965,000 City of Dayton, KY Industrial Building RB
(RADAC Corporation Project) - Series 1994C
LOC Fifth Third Bank 04/02/07 4.10% $ 965,000 P-1 A-1+
2,500,000 Michigan Strategic Fund Limited Obligation RB
(Donnelly Corporation Project) - Series B
LOC Bank of Nova Scotia 04/02/07 3.80 2,500,000 P-1 A-1+
1,440,000 Michigan Oakland County EDC RB
(Orchard-Maple Project) (d)
LOC LaSalle National Bank 05/15/07 3.98 1,440,000
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+
- -------------- -----------
6,905,000 Total Put Bonds 6,905,000
- -------------- -----------
Tax Exempt General Obligation Notes & Bonds (d) (39.81%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Connecticut State - Series B 06/01/07 4.01% $ 1,993,359
1,900,000 Constantine, MI Public Schools TRAN 08/20/07 3.80 1,904,965
1,425,000 Covington, KY Independent School District TRAN 06/29/07 4.08 1,425,000
3,500,000 D.C. Everest Area School District 08/27/07 3.92 3,500,106
1,500,000 Elkhorn, WI Area School District TRAN 08/24/07 3.73 1,500,399
700,000 Fairborn, OH BAN 08/23/07 3.80 701,878
1,000,000 Fall Creek, WI School District 09/21/07 3.75 1,000,000
550,000 Lake Mills, WI Area School District TRAN 08/30/07 3.75 550,546
1,500,000 North St. Paul Maplewood Oakdale, MN
Independent School District No. 622 08/13/07 3.85 1,503,426
1,500,000 St. Clairsville, OH BAN 04/26/07 3.85 1,500,320
1,500,000 Vandalia, OH BAN 08/24/07 3.80 1,500,000
1,500,000 Western School Building Corporation, IN BAN 08/01/07 3.80 1,500,000
- -------------- -----------
18,575,000 Total Tax Exempt General Obligation Notes & Bonds 18,579,999
- -------------- -----------
Variable Rate Demand Instruments (e) (41.54%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 250,000 Auburn, AL Non-Profit HDA MHRB (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 3.86% $ 250,000 A-1
1,700,000 Cincinnati & Hamilton County, OH Port Authority EDRB
LOC Fifth Third Bank 09/01/25 3.88 1,700,000 A-1+
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
- ---------- ------ ---------- ------ ------- --------
Page 22
Variable Rate Demand Instruments (e) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 100,000 City of Pulaski and Giles County, TN IDRB
(Martin Methodist College Project) - Series 2004
LOC Amsouth Bank 01/01/24 3.68% $ 100,000 VMIG-1
2,500,000 Carroll County, GA Development Authority RN
LOC Branch Bank & Trust 01/18/27 3.78 2,500,000 VMIG-1
925,000 Clipper Tax Exempt Trust COPs - (Multistate) - Series 1999-3 08/01/07 3.80 925,000 VMIG-1
1,000,000 Connecticut State HEFA RB University Issue
(Qunnipiac University) - Series 2001F
Insured by Radian Asset Assurance 07/01/31 3.73 1,000,000 A-1+
1,000,000 Cook County, IL 11/01/33 3.65 1,000,000 VMIG-1 A-1+
2,000,000 Greenwood County, SC
(Fuji Photo Film, Inc. Project) - Series 2004 09/01/11 3.83 2,000,000 A-1+
1,550,000 Iredell County, NC Industrial Facilities
& Pollution Control Funding
LOC Branch Bank & Trust (d) 11/01/31 3.78 1,550,000
675,000 Merlots Trust - Series 2000YYY
(Mississippi Home Corporation Single Family Program)
Collateralized by Government National Mortgage Association 12/01/31 3.74 675,000 VMIG-1
1,200,000 Orange County, FL HFA - Series G
LOC Bank of America, N.A. 03/01/35 3.79 1,200,000 VMIG-1 A-1+
2,000,000 Pennsylvania EDFA (Amtrak Project) - Series 2001B
LOC JPMorgan Chase Bank, N.A. 11/01/41 3.73 2,000,000 VMIG-1 A-1+
995,000 Tuscaloosa County, AL IDRB
(Automotive Corridor, LLC Expansion Project) - Series 2004
LOC Regions Bank 11/01/24 3.80 995,000 P-1 A-1
1,495,000 Tuscaloosa County, AL IDRB
(Automotive Corridor, LLC Expansion Project) - Series 2001
LOC Regions Bank 10/01/21 3.80 1,495,000 P-1 A-1
1,000,000 Utah Housing Corporation Single Family
Mortgage Bonds - Series C Class 1 07/01/34 3.71 1,000,000 VMIG-1 A-1+
1,000,000 Washington State HFC Putters - Series 1335
LOC GNMA/FNMA/FHLMC 12/01/09 3.75 1,000,000 VMIG-1
- -------------- -----------
19,390,000 Total Variable Rate Demand Instruments 19,390,000
- -------------- -----------
Total Investments (96.14%) (Cost $44,874,999+) 44,874,999
Cash and other assets, net of liabilities (3.86%) 1,802,401
-----------
Net Assets (100.00%) $46,677,400
===========
+ Aggregate cost for income tax purposes is identical.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
FOOTNOTES:
(a) Unless the securities 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.
KEY:
BAN = Bond Anticipation Note HEFA = Health and Education Facilities Authority
COPs = Certificates of Participation HFA = Housing Finance Authority
EDC = Economic Development Corporation HFC = Housing Finance Commission
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
EDRB = Economic Development Revenue Bond LOC = Letter of Credit
FHLMC = Federal Home Loan Mortgage Corporation MHRB = Multi-Family Housing Revenue Bond
FNMA = Federal National Mortgage Association RB = Revenue Bond
GNMA = Government National Mortgage Association RN = Revenue Note
HDA = Housing Development Authority TRAN = Tax and Revenue Anticipation Note
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
MUNICIPAL MONEY MARKET FUND
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
MARCH 31, 2007
================================================================================
- --------------------------- ---------------------------- ----------------------
States Value % of Portfolio
- --------------------------- ---------------------------- ----------------------
Alabama $ 2,740,000 6.11%
Connecticut 2,993,359 6.67
Florida 1,200,000 2.67
Georgia 2,500,000 5.57
Illinois 1,000,000 2.23
Indiana 1,500,000 3.34
Kentucky 2,390,000 5.33
Michigan 5,844,965 13.02
Minnesota 1,503,426 3.35
Mississippi 675,000 1.50
North Carolina 1,550,000 3.45
Ohio 5,402,198 12.04
Pennsylvania 2,000,000 4.46
South Carolina 2,000,000 4.46
Tennessee 100,000 0.22
Utah 1,000,000 2.23
Washington 1,000,000 2.23
West Virginia 2,000,000 4.46
Wisconsin 6,551,051 14.60
Other Territories 925,000 2.06
- -------------------------------------------------------------------------------
- --------------------------- ---------------------------- ----------------------
Total $ 44,874,999 100.00%
- --------------------------- ---------------------------- ----------------------
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2007
================================================================================
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
---------------------- -------------------- ---------------------
ASSETS:
Investments in securities, at
amortized cost (Note 1)......... $ 1,877,665,182 $ 40,989,113 $ 44,874,999
Repurchase Agreements................. 75,000,000 10,000,000 -0-
Cash.................................. 4,131,493 243,715 1,198,292
Accrued interest receivable........... 23,675,239 123,142 648,320
Prepaid expenses...................... 26,316 1,802 1,198
Other assets.......................... 20,898 6,569 36
------------------- -------------------- ---------------------
Total Assets...................... 1,980,519,128 51,364,341 46,722,845
------------------- -------------------- ---------------------
LIABILITIES:
Payable to affiliates*................ 1,725,417 36,108 41,599
Accrued expenses...................... -0- -0- 3,829
Dividends payable..................... -0- 2 17
Other payable......................... 2,223 -0- -0-
------------------- -------------------- ---------------------
Total Liabilities................. 1,727,640 36,110 45,445
------------------- -------------------- ---------------------
Net assets............................ $ 1,978,791,488 $ 51,328,231 $ 46,677,400
------------------- -------------------- ---------------------
SOURCE OF NET ASSETS:
Net capital paid in on shares
of capital stock (Note 3)........ $ 1,978,792,797 $ 51,330,649 $ 46,684,476
Accumulated net investment income..... -0- -0- 6,789
Accumulated net realized gain (loss).. (1,309) (2,418) (13,865)
------------------- -------------------- ---------------------
Net assets............................ $ 1,978,791,488 $ 51,328,231 $ 46,677,400
------------------- -------------------- ---------------------
Net asset value, per share (Note 3):
Cortland General Money Market:
Cortland shares, ($471,363,205 applicable to 471,363,552 shares outstanding) $ 1.00
=========
Short Term Fund shares, ($32,104,675 applicable to 32,104,699 shares outstanding) $ 1.00
=========
Xpress shares, ($1,475,323,608 applicable to 1,475,324,695 shares outstanding) $ 1.00
=========
Cortland U.S. Government:
Cortland shares, ($51,328,231 applicable to 51,330,649 shares outstanding) $ 1.00
=========
Cortland Municipal Money Market:
Cortland shares, ($46,677,400 applicable to 46,705,944 shares outstanding) $ 1.00
=========
* Including fees payable to Reich & Tang Asset Management, LLC and Reich & Tang Distributors, Inc.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2007
================================================================================
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
---------------------- -------------------- -----------------
INVESTMENT INCOME
Income:
Interest..................................... $238,578,235 $ 13,522,789 $ 6,622,709
------------ ------------ ------------
Expenses: (Note 2)
Investment management fee.................... 33,863,952 1,955,578 1,360,406
Distribution fee (Cortland Shares)........... 2,960,054 344,774 234,422
Distribution fee (Short Term Fund Shares).... 88,002 -- --
Distribution fee (Advantage Shares).......... 4,968,830 316,598 225,460
Distribution fee (Xpress Shares)............. 3,423,939 -- --
Shareholder servicing fee (Advantage Shares). 4,968,830 316,598 225,460
Shareholder servicing fee (Xpress Shares).... 3,423,939 -- --
Directors' fees and expenses................. 121,947 16,834 14,647
Other........................................ 252,966 5,091 (13,614)
------------ ----------- ------------
Total expenses........................... 54,072,459 2,955,473 2,046,781
Less: Fees waived (Note 2).............. (4,551,189) (291,158) (207,423)
------------ ----------- ------------
Net expenses................................. 49,521,270 2,664,315 1,839,358
------------ ----------- ------------
Net investment income ....................... 189,056,965 10,858,474 4,783,351
REALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investments...... 29,094 (2,418) (5,028)
------------ ------------- ------------
Increase in net assets from operations....... $189,086,059 $ 10,856,056 $ 4,778,323
============ ============= ============
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 2007 AND 2006
================================================================================
Cortland General U.S. Government Municipal Money
Money Market Fund Fund Market Fund
------------------------------ ---------------------------- ---------------------------
2007 2006 2007 2006 2007 2006
------------- -------------- ------------- ------------ ------------ ------------
INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income.............$ 189,056,965 $ 135,576,638 $ 10,858,474 $ 9,816,111 $ 4,783,351 $ 4,097,394
Net realized gain (loss) on
investments................... 29,094 312 (2,418) -0- (5,028) (2,048)
-------------- -------------- ------------- ------------ ------------ ------------
Increase in net assets
from operations............... 189,086,059 135,576,950 10,856,056 9,816,111 4,778,323 4,095,346
Dividends to shareholders from
net investment income:
Cortland Shares................... (49,978,927) (35,038,308) (5,691,755) (4,405,987) (2,473,756)+ (1,975,545)+
Short Term Fund Shares............ (1,479,005) (1,389,115) -- -- -- --
Advantage Shares.................. (82,976,116) (73,138,328) (5,166,719) (5,410,124) (2,309,595)+ (2,121,849)+
Xpress Shares..................... (54,622,917) (26,010,887) -- -- -- --
-------------- -------------- ------------- ------------ ------------ ------------
Total dividend to shareholders (189,056,965 ) (135,576,638) (10,858,474) (9,816,111) (4,783,351)+ (4,097,394)+
Distributions to shareholders
from realized gains on
investments:
Cortland Shares................... (7,284) (80) -0- -0- -0- -0-
Short Term Fund Shares............ (222) (3) -- -- -- --
Advantage Shares.................. (15,543) (168) -0- -0- -0- -0-
Xpress Shares..................... (7,503) (61) -- -- -- --
-------------- -------------- ------------- ------------ ------------ ------------
Total distribution to shareholders (30,552) (312) -0- -0- -0- -0-
Capital share transactions (Note 3):
Cortland Shares................... (820,343,893) 19,955,501 (113,826,685) (29,732,294) (75,772,841) 1,725,158
Short Term Fund Shares............ (8,379,124) (20,298,694) -- -- -- --
Advantage Shares..................(2,769,927,818) 77,525,799 (202,118,561) (8,110,732) (129,648,857) 3,504,825
Xpress Shares..................... 256,536,970 414,849,667 -- -- -- --
-------------- -------------- ------------- ------------ ------------ ------------
Total capital share transactions (3,342,113,865) 492,032,273 (315,945,246) (37,843,026) (205,421,698) 5,229,983
-------------- -------------- ------------- ------------ ------------ ------------
Total increase (decrease).........(3,342,115,323) 492,032,273 (315,947,664) (37,843,026) (205,426,726) 5,227,935
Net assets:
Beginning of year................. 5,320,906,811 4,828,874,538 367,275,895 405,118,921 252,104,126 246,876,191
-------------- -------------- ------------- ------------ ------------ ------------
End of year.......................$1,978,791,488 $5,320,906,811 $ 51,328,231 $367,275,895 $ 46,677,400 $252,104,126
============== ============== ============= ============ ============ ============
Undistributed net
investment income.............$ -0- $ -0- $ -0- $ -0- $ 6,789 $ -0-
============== ============== ============= ============ ============ ============
+ Designated as exempt-interest dividends for regular federal income tax
purposes.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
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 "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. The Advantage
Shares liquidated on December 15, 2006. 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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
During the year ended March 31, 2007, the Distributor voluntarily waived the
following fees:
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
----------- -------------------- ---------------
Distribution fees - Short Term Fund Shares $658 -- --
Distribution fees - Advantage Shares $4,471,947 $ 278,607 $ 207,423
Distribution fees - Xpress Shares $78,584 -- --
Distribution fees - Cortland Shares -- $ 12,551 --
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.
Effective January 1, 2007, the Directors of the Company not affiliated with the
Manager will be paid a fee that is to be allocated among multiple funds, as
defined below. Each Independent Director will receive an annual retainer of
$50,000 and a fee of $3,000 for each Board of Directors meeting attended. Each
Independent Director will also receive a fee of $1,500 for each Board of
Directors or committee meeting held telephonically. Each Independent Director
will also be reimbursed for all out-of-pocket expenses relating to attendance at
such meetings. The fees noted above are to be allocated at the discretion of the
Manager and for purposes of determining which funds in the Reich & Tang complex
will bear the related expense of Independent Directors' fees, California Daily
Tax Free Income Fund, Inc., Connecticut Daily Tax Free Income Fund, Inc., the
Daily Income Fund, and the New Jersey Municipal Income Fund, Inc. are
collectively referred to as, the Combined Funds, and the Cortland Trust, Inc. is
referred to as, the Cortland Funds. Mr. Dowden, Mr. Frischling, Mr. Lerner and
Mr. Schultz will have their fees allocated among the Combined Funds and the
Cortland Funds in accordance with the Manager's discretion. Directors who are
affiliated with the Manager do not receive compensation from the Fund.
Included in the Statements of Operations under the caption "Other Expenses" were
fees of $6,001 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 year ended March 31, 2007 these fees amounted to an annual rate of
0.02% of the Short Term Fund Shares of Cortland General Money Market Fund.
3. Compensating Balance Agreement
Reich & Tang and the Bank of New York have entered into a compensating balance
arrangement, which would allow the Fund to compensate the Bank for any
overdrafts by maintaining a positive cash balance the next day. Conversely, on
any day the Fund maintains a positive balance it will be allowed to overdraw the
account as compensation. In both cases Federal Reserve requirements, currently
10%, will be assessed. Therefore, all overdrafts must be compensated at 100% of
the total and all positive balances will allow for an overdraft of 90% of the
total.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
4. 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 March 31,
2007, there were 1,926,224 Pilgrim Shares outstanding, with a net asset value of
$1.00 per share, included in the Cortland Shares.
At March 31, 2007, 11 billion shares of $.001 par value stock of the Company
were authorized, of which 8 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 General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
----------------------------- ---------------------------- -----------------------------
For the Year For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended Ended
March 31 March 31, March 31 March 31, March 31 March 31,
2007 2006 2007 2006 2007 2006
------------- -------------- ------------- ------------ ------------- ------------
Cortland Shares
Shares sold............ 4,854,935,809 4,958,846,631 666,396,216 898,983,109 625,075,186 690,540,326
Dividends reinvested... 49,837,566 34,986,709 5,688,155 4,402,105 2,472,072 1,973,080
Shares redeemed........(5,725,117,268) (4,973,877,839) (785,911,056) (933,117,508) (703,320,099) (690,788,248)
------------- ------------- ------------ ------------ ------------ ------------
Net increase(decrease). (820,343,893) 19,955,501 (113,826,685) (29,732,294) (75,772,841) 1,725,158
============= ============= ============ ============ ============ ============
Short Term Fund Shares
Shares sold............ 70,010,898 90,025,494
Dividends reinvested... 1,478,060 1,387,781
Shares redeemed........ (79,868,082) (111,711,969)
------------- -------------
Net increase(decrease). (8,379,124) (20,298,694)
============= =============
Advantage Shares
Shares sold............ 2,595,760,417 2,437,211,426 256,330,858 417,343,894 277,930,170 348,035,308
Dividends reinvested... 82,650,244 73,075,136 5,152,772 5,404,181 2,302,083 2,119,099
Shares redeemed........(5,448,338,479) (2,432,760,763) (463,602,191) (430,858,807) (409,881,110) (346,649,582)
------------- ------------- ------------ ------------ ------------ ------------
Net increase(decrease).(2,769,927,818) 77,525,799 (202,118,561) (8,110,732) (129,648,857) 3,504,825
============= ============= ============ ============ ============ ============
Xpress Shares
Shares sold............ 1,973,279,108 3,436,456,050
Dividends reinvested... 54,604,886 26,002,447
Shares redeemed........(1,771,347,024) (3,047,608,830)
------------- -------------
Net increase(decrease). 256,536,970 414,849,667
============= =============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
5. Tax Information
The tax character of all distributions paid during the years ended March 31,
2007and 2006 were as follows:
Cortland General Money Municipal Money
Market Fund U.S. Government Fund Market Fund
----------------------------- ---------------------------- -------------------------
Year Ended March 31, Year Ended March 31, Year Ended March 31,
2007 2006 2007 2006 2007 2006
------------- ------------- ------------- ------------ ------------ ------------
Ordinary Income $ 189,087,517 $ 135,576,950 $ 10,858,474 $ 9,816,111 $ 6,789 $ -0-
Tax - Exempt Income -0- -0- -0- -0- 4,776,562 4,097,394
At March 31, 2007 there were no distributable earnings for the Cortland General
Money Market Fund and U.S. Government Fund. At March 31, 2007, the Cortland
General Money Market Fund, the U.S. Government Fund and Municipal Money Market
Fund had capital loss carryforward of $0, $0 and $8,541, respectively, available
for Federal income tax purposes to be applied against future gains, if any. If
not applied against future gains, these will expire in the year 2015. At March
31, 2007, the Cortland General Money Market Fund, U.S. Government Fund and
Municipal Money Market Fund had post-October losses of $1,309, $2,418 and
$5,324, respectively.
During the year ended March 31, 2007, the Cortland General Money Market Fund
utilized $19 of its carried forward capital losses.
In July 2006, the Financial Accounting Standards Board (the "FASB") issued
Interpretation No.48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" ("the Interpretation"). The
Interpretation establishes for all entities, including pass-through entities
such as the Fund, a minimum threshold for financial statement recognition of the
benefit of positions taken in filling tax returns (including whether an entity
is taxable in a particular jurisdiction) and requires certain expanded tax
disclosures. FIN 48 is effective for fiscal years beginning after December 15,
2006. On December 22, 2006, the Securities and Exchange Commission notified the
industry that the implementation of the Interpretation must be incorporated no
later than the last day on which a Net Assets Value is calculated preceding the
Portfolio's 2007 semi-annual report. Management has begun to evaluate the
application of the Interpretation to the Fund, and is not in a position at this
time to estimate the significance of its impact, if any, on the Fund's financial
statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights
Cortland General Money Market Fund
-----------------------------------------------------------------------
Cortland Shares For the Year Ended March 31,
- ---------------- -----------------------------------------------------------------------
2007 2006 2005 2004 2003
---------- --------- -------- -------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................................... 0.042 0.028 0.008 0.002 0.008
Net realized and unrealized
gain/(loss) on investments............................. 0.000 0.000 0.000 0.000 0.000
---------- --------- --------- --------- ---------
Total from investment operations......................... 0.042 0.028 0.008 0.002 0.008
Less distributions from:
Dividends from net investment income..................... (0.042) (0.028) (0.008) (0.002) (0.008)
Net realized gains on investments........................ (0.000) (0.000) (0.000) (0.000) (0.000)
---------- --------- --------- --------- ---------
Total distributions...................................... (0.042) (0.028) (0.008) (0.002) (0.008)
---------- --------- --------- --------- ---------
Net asset value, end of year............................. $ 1.00 $ 1.00 $ 1.00 $1.00 $1.00
========== ========= ========= ========= =========
Total Return............................................. 4.32% 2.84% 0.82% 0.21% 0.79%
Ratios/Supplemental Data
Net assets, end of year (000's).......................... $ 471,363 $1,291,707 $1,271,752 $1,252,029 $1,569,605
Ratios to average net assets:
Expenses................................................. 1.00% 0.98% 0.98% 1.00% 1.01%
Net investment income.................................... 4.22% 2.80% 0.82% 0.21% 0.78%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
Cortland General Money Market Fund
----------------------------------------------------------------------
September 5, 2002
For the Year Ended (Commencement of
Short Term Fund Shares March 31, Offering) to
- ---------------------- ------------------------------------------------- March 31, 2003
2007 2006 2005 2004
--------- ---------- ---------- ---------- ----------------
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................................. 0.042 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........................ 0.042 0.028 0.008 0.002 0.004
Less distributions from:
Dividends from net investment income.................. (0.042) (0.028) (0.008) (0.002) (0.004)
Net realized gains on investments..................... (0.000) (0.000) (0.000) (0.000) (--)
--------- ---------- ---------- ---------- ----------
Total distributions..................................... (0.042) (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............................................ 4.30% 2.82% 0.81% 0.21% 0.35%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)....................... $ 32,105 $ 40,484 $ 60,783 $ 93,039 $ 163,332
Ratios to average net assets:
Expenses (net of fees waived)......................... 1.02% 1.00% 1.00% 1.00% 1.00%(b)
Net investment income................................. 4.20% 2.71% 0.74% 0.22% 0.58%(b)
Distribution fees waived.............................. 0.00% -- -- -- --
(a) Not annualized
(b) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights (Continued)
Cortland General Money Market Fund
--------------------------------------------------------------------
April 1, 2006 September 5, 2002
through For the Year Ended (Commencement of
Advantage Shares December 14, March 31, Offering) to
- ---------------------- ------------------------------------ March 31, 2003
2006 2006 2005 2004
--------- ---------- ---------- ---------- -----------------
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................................. 0.030 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........................ 0.030 0.028 0.009 0.003 0.002
Less distributions from:
Dividends from net investment income.................. (0.030) (0.028) (0.009) (0.003) (0.002)
Net realized gains on investments..................... (0.000) (0.000) (0.000) (0.000) (--)
--------- ---------- ---------- ---------- ----------
Total distributions..................................... (0.030) (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............................................ 2.99% 2.81% 0.87% 0.31% 0.19%(b)
Ratios/Supplemental Data
Net assets, end of period (000's)....................... $ -0- $2,769,928 $2,692,402 $1,858,743 $2,365,911
Ratios to average net assets:
Expenses (net of fees waived)......................... 1.02%(c) 1.01% 0.94% 0.90% 0.90%(c)
Net investment income................................. 4.17%(c) 2.79% 0.92% 0.31% 0.54%(c)
Distribution fees waived.............................. 0.23%(c) 0.23% 0.29% 0.35% 0.35%(c)
(a) The Advantage Shares liquidated on December 15, 2006.
(b) Not annualized
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
Cortland General Money Market Fund
------------------------------------------------------------
September 17, 2004
For the Year Ended (Commencement of
Xpress Shares March 31, Offering) to
- -------------- ------------------------------- March 31, 2005
2007 2006
---------- ---------- -----------------
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................................. 0.040 0.025 0.005
Net realized and unrealized gain(loss) on investments. 0.000 0.000 0.000
---------- ---------- ----------
Total from investment operations........................ 0.040 0.025 0.005
Less distributions from:
Dividends from net investment income.................. (0.040) (0.025) (0.005)
Net realized gains on investments..................... (0.000) (0.000) (0.000)
---------- ---------- ----------
Total distributions..................................... (0.040) (0.025) (0.005)
---------- ---------- ----------
Net asset value, end of period.......................... $ 1.00 $ 1.00 $ 1.00
========== ========== ==========
Total Return............................................ 4.06% 2.58% 0.53%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)....................... $1,475,323 $1,218,788 $ 803,938
Ratios to average net assets:
Expenses ( net of fees waived)........................ 1.24% 1.23% 1.23%(b)
Net investment income................................. 3.99% 2.63% 1.05%(b)
Distribution fees waived.............................. 0.01% -- --
(a) Not annualized
(b) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights (Continued)
U.S.Government Fund
-----------------------------------------------------------------------
Cortland Shares For the Year Ended March 31,
- ---------------- -----------------------------------------------------------------------
2007 2006 2005 2004 2003
---------- --------- -------- -------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................................... 0.041 0.027 0.007 0.002 0.008
Net realized and unrealized
gain/(loss) on investments............................. -- -- -- 0.000 0.000
---------- --------- --------- --------- ---------
Total from investment operations......................... 0.041 0.027 0.007 0.002 0.008
Less distributions from:
Dividends from net investment income..................... (0.041) (0.027) (0.007) (0.002) (0.008)
Net realized gains on investments........................ (--) (--) (--) (0.000) (0.000)
---------- --------- --------- --------- ---------
Total distributions...................................... (0.041) (0.027) (0.007) (0.002) (0.008)
---------- --------- --------- --------- ---------
Net asset value, end of year............................. $ 1.00 $ 1.00 $ 1.00 $1.00 $1.00
========== ========= ========= ========= =========
Total Return............................................. 4.22% 2.74% 0.74% 0.15% 0.76%
Ratios/Supplemental Data
Net assets, end of year (000's).......................... $ 51,328 $ 165,157 $ 194,890 $ 197,189 $ 177,455
Ratios to average net assets:
Expenses................................................. 0.99% 0.99% 0.99% 1.00% 1.01%
Net investment income.................................... 4.13% 2.68% 0.70% 0.15% 0.69%
Distribution fees waived................................. 0.01% -- -- 0.00% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
U.S. Government Fund
--------------------------------------------------------------------
April 1, 2006 November 22, 2002
through For the Year Ended (Commencement of
Advantage Shares (a) December 14, March 31, Offering) to
- ---------------------- ------------------------------------ March 31, 2003
2006 2006 2005 2004
--------- ---------- ---------- ---------- -----------------
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................................. 0.029 0.027 0.008 0.003 0.002
Net realized and unrealized gain(loss) on investments. -- -- -- 0.000 --
--------- ---------- ---------- ---------- ----------
Total from investment operations........................ 0.029 0.027 0.008 0.003 0.002
Less distributions from:
Dividends from net investment income.................. (0.029) (0.027) (0.008) (0.003) (0.002)
Net realized gains on investments..................... (--) (--) (--) (0.000) (--)
--------- ---------- ---------- ---------- ----------
Total distributions..................................... (0.029) (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............................................ 2.93%(b) 2.72% 0.79% 0.26% 0.18%(b)
Ratios/Supplemental Data
Net assets, end of period (000's)....................... $ -0- $ 202,119 $ 210,229 $ 95,525 $ 6,429
Ratios to average net assets:
Expenses (net of fees waived)......................... 1.02%(c) 1.01% 0.94% 0.90% 0.90%(c)
Net investment income................................. 4.08%(c) 2.66% 0.87% 0.24% 0.51%(c)
Distribution fees waived.............................. 0.22%(c) 0.23% 0.30% 0.35% 0.35%(c)
(a) The Advantage Shares liquidated on December 15, 2006.
(b) Not annualized
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights
Municipal Money Market Fund
-----------------------------------------------------------------------
Cortland Shares For the Year Ended March 31,
- ---------------- -----------------------------------------------------------------------
2007 2006 2005 2004 2003
---------- --------- -------- -------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................................... 0.027 0.018 0.005 0.001 0.005
Net realized and unrealized
gain/(loss) on investments............................. -- -- -- 0.000 --
---------- --------- --------- --------- ---------
Total from investment operations......................... 0.027 0.018 0.005 0.001 0.005
Less distributions from:
Dividends from net investment income..................... (0.027) (0.018) (0.005) (0.001) (0.005)
Net realized gains on investments........................ (--) (--) (--) (0.000) (--)
---------- --------- --------- --------- ---------
Total distributions...................................... (0.027) (0.018) (0.005) (0.001) (0.005)
---------- --------- --------- --------- ---------
Net asset value, end of year............................. $ 1.00 $ 1.00 $ 1.00 $1.00 $1.00
========== ========= ========= ========= =========
Total Return............................................. 2.69% 1.77% 0.47% 0.13% 0.49%
Ratios/Supplemental Data
Net assets, end of year (000's).......................... $ 46,677 $ 122,467 $ 120,743 $ 106,058 $ 90,001
Ratios to average net assets:
Expenses................................................. 0.98% 1.00% 1.00% 0.98% 1.00%
Net investment income.................................... 2.64% 1.76% 0.47% 0.12% 0.47%
Distribution fees waived................................. -- -- 0.00% 0.02% 0.01%
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
Municipal Money Market Fund
--------------------------------------------------------------------
April 1, 2006 November 22, 2002
through For the Year Ended (Commencement of
Advantage Shares (a) December 14, March 31, Offering) to
- ---------------------- ------------------------------------ March 31, 2003
2006 2006 2005 2004
--------- ---------- ---------- ---------- -----------------
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................................. 0.018 0.017 0.005 0.002 0.001
Net realized and unrealized gain(loss) on investments. -- -- -- 0.000 --
--------- ---------- ---------- ---------- ----------
Total from investment operations........................ 0.018 0.017 0.005 0.002 0.001
Less distributions from:
Dividends from net investment income.................. (0.018) (0.017) (0.005) (0.002) (0.001)
Net realized gains on investments..................... (--) (--) (--) (0.000) (--)
--------- ---------- ---------- ---------- ----------
Total distributions..................................... (0.018) (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............................................ 1.83% 1.76% 0.53% 0.21% 0.12%(b)
Ratios/Supplemental Data
Net assets, end of period (000's)....................... $ -0- $ 129,637 $ 126,133 $ 81,769 $ 112,686
Ratios to average net assets:
Expenses (net of fees waived)......................... 1.02%(c) 1.01% 0.94% 0.90% 0.90%(c)
Net investment income................................. 2.56%(c) 1.74% 0.56% 0.21% 0.32%(c)
Distribution fees waived.............................. 0.23%(c) 0.24% 0.31% 0.35% 0.35%(c)
(a) The Advantage Shares liquidated on December 15, 2006.
(b) Not annualized
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
To the Board of Directors and Shareholders of
Cortland Trust, Inc.
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Cortland General Money Market Fund,
U.S. Government Fund, and Municipal Money Market Fund (constituting Cortland
Trust, Inc., hereafter referred to as the "Funds") at March 31, 2007, the
results of each of their operations for the year then ended, the changes in each
of their net assets for each of the two years in the period then ended and the
financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2007 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
May 25, 2007
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
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, 2007 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 54%
Cortland Trust, Inc. - U.S. Government Fund 100%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Directors and Officers Information
March 31, 2007+
- -------------------- --------------- -------------- ----------------------------------- ---------------- ----------------
Name, Address(1), Position(s) Term of Principal Occupation(s) Number of Other
and Age Held with Office(2) During Past Portfolios in Directorships
Fund and Length of 5 Years Fund Complex held by
Time Served Overseen by Director
Director
- -------------------- --------------- -------------- ----------------------------------- ---------------- ----------------
- ------------------------------------ -------------- ----------------------------------- ---------------- ----------------
Disinterested Directors:
- ------------------------------------ -------------- ----------------------------------- ---------------- ----------------
- -------------------- --------------- -------------- ----------------------------------- ---------------- ----------------
Albert R. Dowden, Chairman, Director, Corporate Director/Trustee for Director of ten Director/Trustee
Age 65 Director and since 1984 Annuity & Life Re (Holdings) portfolios of Annuity &
Member of the Ltd., Boss Group, Ltd., Life Re
Audit and Homeowners of America Holdings (Holdings)
Nominating Corporation, CompuDyne Ltd., Boss
Committee Corporation, and AIM Funds. Group, Ltd.,
Homeowners of
America
Holdings
Corporation,
CompuDyne
Corporation,
and AIM
Funds.
- -------------------- --------------- -------------- ----------------------------------- ---------------- ---------------
- -------------------- --------------- -------------- ----------------------------------- ---------------- ---------------
William Lerner, Esq.,Director and Director, Self-employed consultant to Director of ten Director of MTM
Age 70 Chairman/ since 2000 business entities and portfolios Technologies,
Member of the entrepreneurs for corporate Inc.
Audit and governance and corporate and Coach
Nominating secretarial services. Industries
Committee Group, Inc.
- -------------------- --------------- -------------- ----------------------------------- ---------------- ---------------
- -------------------- --------------- -------------- ----------------------------------- ---------------- ---------------
James L. Schultz, Director and Director, Self-employed as a consultant. Director of ten None
Age 70 Member of the since 1984 Formerly President of Computer portfolios
Audit and Research Inc. from 1975 to 2001.
Nominating
Committee
- -------------------- --------------- -------------- ----------------------------------- ---------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CORTLAND TRUST, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================
Directors and Officers Information
March 31, 2007+
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
Name, Address(1), Position(s) Term of Principal Occupation(s) Number of Other
and Age Held with Office(2) During Past Portfolios in Directorships
Fund and Length of 5 Years Fund Complex held by
Time Served Overseen by Director
Director
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
- ------------------------------------
Interested Directors/Officers:
- ------------------------------------ -------------- ------------------------------------ ---------------- -------------
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
Steven W. Duff, President and Since 1996 Manager and President of Reich & Director/Trustee N/A
Age 53 Director(3) Tang Asset Management, LLC ("RTAM, and/or Officer
LLC"), a registered Investment of eighteen
Advisor and President of the portfolios
Mutual Funds Division of RTAM
LLC. Associated with RTAM, LLC
since 1994. Mr. Duff is also
President and Director/Trustee of
eight other funds in the Reich &
Tang Fund Complex, Director of Pax
World Money Market Fund, Inc.,
Principal Executive Officer of
Delafield Fund, Inc. and President
and Chief Executive Officer of Tax
Exempt Proceeds Fund, Inc. Mr.
Duff also serves as a Director of
Reich & Tang Services, Inc. and
President of Reich & Tang
Distributors, Inc.
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
Carl Frischling, Director(4) Since 1998 Partner of Kramer Levin Naftalis & Director of Director
Esq., Age 70 Frankel LLP (a lawfirm) with which ten portfolios of AIM
he has been associated with since Funds.
1994.
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
- -------------------- --------------- -------------- ------------------------------------ ---------------- -------------
Richard De Sanctis, Vice Since 2005 Executive Vice President and CFO N/A N/A
Age 50 President and of RTAM, LLC. Associated with
Assistant RTAM, LLC since 1990. Mr. De
Secretary Sanctis is Vice President of
eleven other funds in the Reich &
Tang Fund Complex and serves as
Executive Vice President and Chief
Financial Officer of Reich & Tang
Services, Inc. and Reich & Tang
Distributors, Inc. Prior to
December 2004, Mr. De Sanctis was
Treasurer and Assistant Secretary
of eleven other Funds in the Reich
& Tang Fund Complex and Vice
President, Treasurer and Assistant
Secretary of Cortland Trust, Inc.
- -------------------- --------------- -------------- ------------------------------------ ---------------- --------------
- ------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
Directors and Officers Information
March 31, 2007+ (continued)
- ------------------ ------------ ------------------ ------------------------------------ ---------------- --------------
Name, Address(1), Position(s) Term of Office(2) Principal Occupation(s) Number of Other
and Age Held with and Length of During Past Portfolios in Directorships
Fund Time Served 5 Years Fund Complex held by
Overseen by Director
Director
- ------------------ ------------ ------------------ ------------------------------------ ---------------- --------------
- -------------------------------
Interested Directors/Officers:
- ------------------------------- ------------------ ------------------------------------ ---------------- --------------
- ------------------ ------------ ------------------ ------------------------------------ ---------------- --------------
Molly Flewharty, Vice Since 1991 Senior Vice President of RTAM, LLC. N/A N/A
Age 56 President Associated with RTAM, LLC since
1977. Ms. Flewharty is also Vice
President of eleven other funds in
the Reich & Tang Fund Complex. Ms.
Flewharty also serves as Senior
Vice President of Reich & Tang
Distributors, Inc.
- ------------------ ------------ ------------------ ------------------------------------ ---------------- --------------
- ------------------ ------------ ------------------ ------------------------------------ ---------------- --------------
Rosanne Holtzer, Chief Since 2004 Senior Vice President, Compliance N/A N/A
Age 42 Compliance Officer and Assistant Secretary of
Officer RTAM, LLC. Associated with RTAM,
LLC since 1986. Ms. Holtzer is
Secretary Since 2001 also Chief Compliance Officer,
Secretary and Assistant Treasurer
Assistant Since 1998 of eleven other funds in the Reich
Treasurer & Tang Fund Complex. Ms. Holtzer
also serves as Senior Vice
President, Assistant Secretary &
Compliance Officer of Reich & Tang
Distributors, Inc. and Senior Vice
President, Assistant Secretary &
Chief Compliance Officer of Reich &
Tang Services, Inc.
- ------------------ ------------ ------------------ ------------------------------------ ---------------- --------------
- ------------------ ------------ ------------------ ------------------------------------ --------------- ---------------
Michael Lydon, Vice Since 2005 Executive Vice President and Chief N/A N/A
Age 43 President Operations Officer of RTAM, LLC.
Associated with RTAM, LLC since
January 2005. Mr. Lydon was Vice
President at Automatic Data
Processing from July 2000 to
December 2004. Prior to July 2000,
Mr. Lydon was Executive Vice
President and Chief Information
Officer of RTAM, LLC. Mr. Lydon is
also Vice President of eleven other
funds in the Reich & Tang Fund
Complex. Mr. Lydon also serves as
Executive Vice President and Chief
Operations Officer for Reich & Tang
Distributors, Inc. and Reich & Tang
Services, Inc.
- ------------------ ------------ ------------------ ------------------------------------ --------------- ---------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORTLAND TRUST, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
================================================================================
Directors and Officers Information
March 31, 2007+ (continued)
- ------------------ ------------ ------------------ --------------------------------------- ---------------- -------------
Name, Address(1), Position(s) Term of Office(2) Principal Occupation(s) Number of Other
and Age Held with and Length of During Past Portfolios in Directorships
Fund Time Served 5 Years Fund Complex held by
Overseen by Director
Director
- ------------------ ------------ ------------------ --------------------------------------- ---------------- -------------
Interested Directors/Officers:
- ------------------------------- ------------------ --------------------------------------- ---------------- -------------
- -------------------------------------------------------------------------------------------------------------------------
Dana E. Messina, Vice Since 1991 Executive Vice President of RTAM, N/A N/A
Age 50 President LLC. Associated with RTAM, LLC since
1980. Ms. Messina is also Vice
President of eight other funds in the
Reich & Tang Fund Complex. Ms.
Messina also serves as Executive Vice
President of Reich &Tang Distributors,
Inc.
- ------------------ ------------ ------------------ --------------------------------------- ---------------- -------------
- ------------------ ------------ ------------------ --------------------------------------- ---------------- -------------
Anthony Pace, Treasurer Since 2004 Vice President of RTAM, LLC since N/A N/A
Age 41 and September 2004. Mr. Pace was a
Assistant Director of a Client Service Group at
Secretary GlobeOp Financial Services, Inc. from
May 2002 to August 2004 and
Controller/Director of Mutual Fund
Administration for Smith Barney Funds
Management LLC and Salomon Brothers
Asset Management, Inc. from 1998 to
May 2002. Mr. Pace is also Treasurer
and Assistant Secretary of eleven
other funds in the Reich & Tang Fund
Complex.
- ------------------ ------------ ------------------ --------------------------------------- ---------------- -------------
+ The Statement of Additional Information includes additional information about
Cortland Trust, Inc.(the "Company")directors and is available, without charge,
upon request by calling the Funds' transfer agent at (212) 830-5200.
1 The address for each of the above directors/officers of the Company is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
2 The term of office for a director or officer is indefinite, until he or she
resigns, is removed or a successor is elected and qualified.
3 Steven W. Duff is deemed an interested person of the Company due to his
affiliation with RTAM, LLC, the Company's investment advisor.
4 Carl Frischling, Esq. is deemed an interested person of the Company due to his
affiliation with Kramer Levin Naftalis & Frankel LLP, counsel to the Company
and the independent directors.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CORTLAND
TRUST, INC.
Annual Report
March 31, 2007
CRT3/07A
- --------------------------------------------------------------------------------
Item 2: Code of Ethics
The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.
Item 3: Audit Committee Financial Expert
The registrant's Board of Directors has determined that it does not have an
audit committee financial expert serving on its audit committee. The Board
believes that the collective experience of the audit committee members,
including their long-standing service as audit committee members, is sufficient
to effectively carry out the role and obligations of the audit committee. In
making its determination, the Board considered, among other things, the nature
of investment company financials, and the fact that the audit committee is able
to consult with the registrant's independent accountants and to seek outside
advice, as it deems appropriate.
Item 4: Principal Accountant Fees and Services
FYE 3/31/2007 FYE 3/31/2006
4(a) Audit Fees $96,100 $86,000
4(b) Audit Related Fees $ 0 $ 0
4(c) Tax Fees $11,250 $10,742
4(d) All Other Fees $ 0 $ 0
4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant.
4(e)(2) None
4(f) Not applicable.
4(g) $11,250 and $49,500, respectively, were the amount of non-audit fees that
were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended March 31, 2007. $10,742 and $45,000, respectively, were the amount of
non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended March 31, 2006.
4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of the investment
adviser that provides ongoing services to the registrant, that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is
compatible with maintaining the principal accountant's independence.
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: Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8: Purchases of Equity Securities 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) Code of Ethics.
(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: June 6, 2007
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: June 6, 2007
By (Signature and Title)* /s/Anthony Pace, Treasurer
--------------------------
Anthony Pace, Treasurer
Date: June 6, 2007
* Print the name and title of each signing officer under his or her signature.