<PAGE> 1
PROVIDENT
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809 Phone:
302-792-2555 Fax: 302-792-5876
FUNDS
G. Willing Pepper
Chairman
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
June 24, 1996
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of
Municipal Fund for Temporary Investment for the period ended May 31, 1996.
The accompanying Investment Adviser's Report provides information on recent
activity in the money markets and on the performance of our funds. I urge you to
read the report.
Provident Institutional Funds are committed to quality service and
competitive returns, with liquidity and stability of principal a primary focus.
Credit quality is the premier ingredient in our investment strategy.
Provident Institutional Funds offer a broad range of high quality taxable
and tax-exempt Money Market Funds to meet the varied needs of our investors.
Please feel free to contact your Provident Distributors, Inc. account
representative or our Client Service Center at (800) 821-7432 to discuss your
investment options.
Thank you for your continued confidence in Provident Institutional Funds.
We welcome the opportunity to service your investment needs.
Sincerely,
/s/ G. Willing Pepper
---------------------
G. Willing Pepper
Chairman
<PAGE> 2
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Semi-Annual Investment Adviser's Report
The pace of economic activity rose sharply in the first quarter of 1996, in
stark contrast to the meager 0.5% gain in gross domestic product in the final
quarter of 1995. Inflationary pressures also re-emerged in the first quarter,
led by strong increases in the prices of commodities such as oil and grain. As a
result, these trend reversals precipitated a rise in both short-term and
long-term interest rates, and a shift in mid-March, to a positively sloped yield
curve for the first time in almost a year.
Federal Reserve monetary policy was biased toward ease as the new year
began. Housing activity, consumer confidence and retail sales were all weak as
1995 ended, and the government shutdowns and blizzards experienced in January
pointed to an inauspicious start. The Fed moved quickly to respond to these
signs of weakness and lowered the federal funds rate twice, once in December to
5 1/2%, and again in January to 5 1/4%. The reversal in the Fed's outlook
occurred in early March when a series of reports showed a strong rebound from
January levels. Employment, housing and industrial production all showed
strength. Inflation concerns also expanded and fixed income yields rose quickly.
Total tax-free money fund assets hit record levels during the six months
ended May 31. Uncertainty in the stock and bond markets, the Washington budget
impasse, possibility of changes to the tax code as well as bond calls, and
coupon interest payments contributed to this growth. This increase in assets
raised demand for high quality short-term municipal securities causing municipal
yields to be unattractive on an after-tax basis versus taxable alternatives.
The yield curve was basically flat for much of the period. Investors began
to feel that Fed easing would be put on hold as the economy showed signs of
strength during the period. MuniFund and MuniCash kept their average weighted
maturities relatively short versus the benchmarks and ended the period at 43 and
34 days, respectively. Due to the flat yield curve and expectations of higher
rates, there was very little incentive to extend maturities. Total net assets on
May 31 stood at $671.4 million for MuniFund and $574.4 million for MuniCash. The
two portfolios' performances remained extremely competitive within their peer
groups. According to Lipper Analytical Services, MuniCash was ranked #4 in total
return for the year ended May 31, 1996, versus 69 institutional tax-exempt
funds. MuniFund, AAA rated by Standard & Poor's, was ranked #3 in yield for
April, versus 12 AAA-rated tax-free funds, according to IBC/Donoghue's Rated
Fund Report. Advisory and administrative fees were waived, in part, for both
funds during the periods stated. Both funds continue their emphasis on high
credit quality, however, past performance is no guarantee of future results.
Yields in the longer-term tax-exempt market increased steadily over the
last six months. As the economy began exhibiting signs of increasing strength,
it appeared unlikely the Fed would move to further ease short-term interest
rates in the foreseeable future. The Bond Buyer Index (BBI) rose 40 basis points
to 5.94%, while the longer Revenue Bond Index (RBI) rose 39 basis points to
6.17%. Municipal bond issuance totaled $67.8 billion for the period, down 21.6%
from the $86.5 billion sold during the same period a year ago. The average
maturity of the Intermediate Municipal Fund remained fairly constant at 6.3
years. The Fund continued to emphasize high quality, higher coupon bonds.
Currently 100% of the assets are rated AA or higher. The Fund modestly
outperformed the Lehman Brothers Index for the period. The Fund continues to
seek a competitive rate of return while minimizing the volatility of the Fund's
net asset value.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
MUNIFUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C> <C>
ALABAMA -- 1.03%
Calhoun County Economic
Development Council IDRB
(Craft Corporation Project) DN
(First Alabama Bank LOC)
(A-1+, VMIG-1)
3.90%(1)............ 06/07/96 $ 4,350 $ 4,350,000
City of Montgomery BMC Special
Care Facilities Authority (VHA
of Alabama) Series 1985A DN
(FNB Chicago LOC) (A-1,
VMIG-1)
3.60%(1)............ 06/07/96 2,570 2,570,000
------------
6,920,000
------------
ARIZONA -- 1.95%
Apache County IDA PCR (Tucson
Electric Power Company) Series
1983C DN (Bankers Trust LOC)
(A-1+, VMIG-1)
3.65%(1)............ 06/07/96 400 400,000
Apache County IDA PCR (Tucson
Electric Power Company)
Springerville Project Series
1983B DN (Bank of New York
LOC) (A-1, VMIG-1)
3.65%(1)............ 06/07/96 2,700 2,700,000
Salt River Project Agricultural
Improvement and Power District
TECP (A-1+, P-1)
3.30%............... 08/08/96 10,000 10,000,000
------------
13,100,000
------------
ARKANSAS -- 0.79%
Arkansas Development Finance
Authority Revenue Bonds
(Higher Education Capital
Asset Program) Series 1985A DN
(Citibank LOC) (A-1+, VMIG-1)
3.55%(1)............ 06/07/96 5,300 5,300,000
------------
CALIFORNIA -- 2.23%
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company) Series 1996C DN (Bank
of America LOC) (A-1, VMIG-1)
3.75%(1)............ 06/01/96 13,200 13,200,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Riverside County Certificates of
Participation (Riverside
County Public Facilities)
Series 1985B DN (Commerzbank
LOC) (A-1, VMIG-1)
3.55%(1)............ 06/07/96 $ 1,800 $ 1,800,000
------------
15,000,000
------------
COLORADO -- 2.86%
Colorado Health Facilities
Authority (Boulder Community
Hospital Project) Series B DN
(Rabo Bank Nederland LOC)
(VMIG-1)
3.55%(1)............ 06/07/96 4,800 4,800,000
Colorado Health Facilities
Authority (Boulder Community
Hospital Project) Series C DN
(Rabo Bank Nederland LOC)
(A-1+, VMIG-1)
3.55%(1)............ 06/07/96 3,500 3,500,000
Colorado Health Facilities
Authority (Sisters of Charity
Health Facilities) DN (Toronto
Dominion LOC) (A-1+, VMIG-1)
3.55%(1)............ 6/07/96 5,400 5,400,000
Colorado Health Facilities
Authority (Sisters of Mercy)
Series C DN (Toronto Dominion
LOC) (A-1+, VMIG-1)
3.55%(1)............ 06/07/96 4,600 4,600,000
Moffat County PCR (Tri-State)
Series 1984 DN (A-1+, P-1)
3.55%(1)............ 06/07/96 900 900,000
------------
19,200,000
------------
FLORIDA -- 4.68%
Sarasota County Public Hospital
District (Sarasota Memorial
Hospital Project) Series 1993A
(A-1, VMIG-1)
3.30%............... 08/08/96 8,500 8,500,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
3
<PAGE> 4
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
FLORIDA (CONTINUED)
Sunshine State Governmental
Financing Authority Revenue
Bonds TECP (Union Bank of
Switzerland LOC) (VMIG-1)
3.35%............... 08/14/96 $15,000 $ 15,000,000
3.60%............... 09/10/96 7,900 7,900,000
------------
31,400,000
------------
GEORGIA -- 3.65%
Burke County Development
Authority PCRB (Oglethorpe
Power Corporation Vogtle
Project) Series 1994A DN
(Credit Local LOC) (A-1+,
VMIG-1)
3.60%(1)............ 06/07/96 4,000 4,000,000
Cobb County Housing Authority RB
(Post Mill Project) Series
1995 DN (Federal National
Mortgage Association LOC)
(A-1+, VMIG-1)
3.50%(1)............ 06/07/96 3,880 3,880,000
Dekalb County Housing Authority
Multifamily Housing Bonds
(Clairmont Crest Project) DN
(Federal National Mortgage
Association LOC) (A-1+,
VMIG-1)
3.60%(1)............ 06/07/96 7,600 7,600,000
Gwinett County Housing Authority
Multifamily Housing Revenue
Bonds (Post Corners Project)
DN (Federal National Mortgage
Association LOC) (A-1+,
VMIG-1)
3.50%(1)............ 06/07/96 5,000 5,000,000
Rosewell Housing Authority
Multifamily RB (Post Canyon
Project) DN (Federal National
Mortgage Association LOC)
(A-1+, VMIG-1)
3.50%(1)............ 06/07/96 4,000 4,000,000
------------
24,480,000
------------
HAWAII -- 1.13%
Hawaii Department of Budget and
Finance Special Purpose
Mortgage Revenue Bonds (A-1+)
3.20%............... 09/03/96 4,605 4,605,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
HAWAII (CONTINUED)
Hawaii GO Tender Option Bonds
Series BZ DN (Morgan Guaranty
LOC) (VMIG-1)
3.75%(1)............ 06/07/96 $ 3,000 $ 3,000,000
------------
7,605,000
------------
ILLINOIS -- 13.25%
City of Chicago GO Tender Notes
(Morgan Guaranty LOC) (A-1+,
VMIG-1)
3.65%............... 10/31/96 15,200 15,200,000
Illinois Development Finance
Authority (Chicago Symphony
Orchestra) DN (Northern Trust
LOC) (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 10,000 10,000,000
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) (Canadian
Imperial Bank LOC) (A-1+,
VMIG-1)
3.15%............... 06/13/96 23,500 23,500,000
3.25%............... 06/14/96 8,270 8,270,000
Illinois Health Facilities
Authority (Pooled Financing)
Series 1985C DN (FNB Chicago
LOC) (VMIG-1)
3.65%(1)............ 06/07/96 14,000 14,000,000
Illinois Health Facilities
Authority (Revolving Fund
Pooled Financing) Series 1985F
DN (Swiss Bank LOC) (A-1+,
VMIG-1)
3.60%(1)............ 06/07/96 4,400 4,400,000
Illinois Health Facilities
Authority (University of
Chicago Hospital Project)
Series 1994C DN (Comerica Bank
Detroit LOC) (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 5,300 5,300,000
Illinois Health Facilities
Authority Revenue Bonds
(Evanston Hospital Corporation
Project) (VMIG-1)
3.75%............... 02/28/97 5,000 5,000,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
4
<PAGE> 5
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Health Facilities
Authority Revenue Bonds
(Franciscan Village Project)
Series 1989A DN (Commonwealth
Australia LOC) (A-1+, VMIG-1)
3.65%(1)............ 06/07/96 $ 3,275 $ 3,275,000
------------
88,945,000
------------
INDIANA -- 2.53%
Indiana Employment Commission
IDA (Miles Laboratories) DN
(Barclays Bank LOC) (A-1+)
3.65%(1)............ 06/03/96 7,000 7,000,000
Indianapolis Gas Utility System
(Citizens Gas & Coke Utility
Project) TECP (A-1+, P-1)
3.45%............... 08/14/96 10,000 10,000,000
------------
17,000,000
------------
IOWA -- 0.66%
Council Bluffs PCRB (Iowa-
Illinois Gas & Electric
Company Project) DN (A-1+,
VMIG-1)
3.65%(1)............ 06/07/96 3,950 3,950,000
Polk County (Iowa Hospital
Equipment Authority) DN (MBIA
Insurance) (A-1+, VMIG-1)
3.50%(1)............ 06/07/96 450 450,000
------------
4,400,000
------------
LOUISIANA -- 2.83%
Plaquemines Port, Harbor and
Terminal District Marine
Terminal Facilities Revenue
Refunding Bonds (Electro-Coal
Transfer Corporation Project)
(P-1)
3.70%............... 08/22/96 19,000 19,000,000
------------
MARYLAND -- 3.90%
Maryland Health & Higher
Education Facilities Authority
(Capitol College Project) DN
(FNB Maryland LOC) (VMIG-1)
3.90%(1)............ 06/07/96 8,000 8,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
MARYLAND (CONTINUED)
Maryland State Economic
Development Corporation
Revenue Bonds (Pooled
Financing Maryland Muni Bond
Fund) DN (NationsBank LOC)
(A-1, VMIG-1)
3.65%(1)............ 06/07/96 $10,000 $ 10,000,000
Maryland State Industrial
Development Finance Authority
(McDonough School Facility) DN
(FNB Maryland LOC) (A-1,
VMIG-1)
3.90%(1)............ 06/07/96 5,000 5,000,000
University of Maryland
(University Revenue Revolving
Equipment Loan Project) DN
(Student Loan Marketing
Association LOC) (A-1+,
VMIG-1)
3.55%(1)............ 06/07/96 3,200 3,200,000
------------
26,200,000
------------
MICHIGAN -- 4.31%
Michigan State GO Notes (SP-1+,
MIG-1)
4.00%............... 09/30/96 22,000 22,036,859
Michigan Underground Storage
Tank Financial Assurance
Authority RB Series 1995 DN
(Canadian Imperial Bank LOC)
(A-1+, VMIG-1)
4.00%(1)............ 06/07/96 6,900 6,900,000
------------
28,936,859
------------
MISSOURI -- 2.18%
Missouri Health & Educational
Facilities Authority
(St. Anthony's Medical Center)
Series B DN (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 4,300 4,300,000
Missouri Health & Educational
Facilities Authority Refunding
RB (Sisters of Mercy Health
System) DN (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 8,000 8,000,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
5
<PAGE> 6
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
MISSOURI (CONTINUED)
Missouri State Environmental
Improvement & Energy Resource
Authority PCRB (Monsanto
County Project) Series 1988 DN
(P-1)
3.70%(1)............ 06/07/96 $ 2,350 $ 2,350,000
------------
14,650,000
------------
NEBRASKA -- 2.56%
Nebraska Higher Education Loan
Program Student Loan Program
Revenue Bonds Series 1985D DN
(Student Loan Marketing
Association LOC) (VMIG-1)
3.60%(1)............ 06/07/96 1,000 1,000,000
Nebraska Higher Education Loan
Program Student Loan Program
Revenue Bonds Series 1985E DN
(Student Loan Marketing
Association LOC) (VMIG-1)
3.60%(1)............ 06/07/96 16,200 16,200,000
------------
17,200,000
------------
NEVADA -- 0.74%
Clark County IDRB (Nevada Power
Company Project) DN (Barclays
Bank LOC) (A-1+, VMIG-1)
3.55%(1)............ 06/07/96 5,000 5,000,000
------------
NEW JERSEY -- 1.39%
New Jersey Transportation Trust
Fund Transportation Authority
System Bonds Series 1995B DN
(Bank of New York LOC)
(VMIG-1)
3.50%(1)............ 06/07/96 2,800 2,800,000
Salem County Industrial
Financing Authority PCRB (E.I.
DuPont) Series A DN (Lloyds
Bank Ltd LOC) (A-1+, P-1)
3.65%(1)............ 06/07/96 6,500 6,500,000
------------
9,300,000
------------
NEW YORK -- 0.34%
New York City RAN Series B
(Morgan Guaranty LOC) (SP-1,
MIG-1)
4.75%............... 06/28/96 500 500,487
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
New York State Local Assistance
Corporation DN (Multiple
Credit Enhancements LOC)
(A-1+, VMIG-1)
3.45%(1)............ 06/07/96 $ 1,800 $ 1,800,000
------------
2,300,487
------------
NORTH CAROLINA -- 1.56%
North Carolina Medical Care
Community (Baptist Hospital)
Series 1992B DN (Wachovia Bank
LOC) (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 1,600 1,600,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) DN (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 1,700 1,700,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) Series 1993 DN
(Wachovia Bank LOC) (A-1+,
VMIG-1)
3.60%(1)............ 06/07/96 3,000 3,000,000
North Carolina Medical Care
Community Hospital Revenue
Bonds (Park Ridge Hospital
Project) Series 1988 DN
(NationsBank LOC) (A-1+,
VMIG-1)
3.60%(1)............ 06/07/96 3,100 3,100,000
Union County Industrial
Facilities PCRB (Square D
Company Project) Series 1988
DN (Morgan Guaranty LOC)
(VMIG-1)
3.70%(1)............ 06/07/96 1,100 1,100,000
------------
10,500,000
------------
SOUTH CAROLINA -- 0.98%
South Carolina Economic
Development Authority Hospital
Facilities RB (Tuomey Regional
Medical Center) Series B DN
(Wachovia Bank LOC) (A-1+,
VMIG-1)
3.55%(1)............ 06/07/96 6,600 6,600,000
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
6
<PAGE> 7
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
TENNESSEE -- 10.93%
Clarksville Public Building
Authority (Pooled Financing
Tennessee Municipal Bond Fund)
Series 1995 DN (NationsBank
LOC) (A-1)
3.65%(1)............ 06/07/96 $ 5,000 $ 5,000,000
Clarksville Public Building
Authority (Pooled Loan Finance
Service) Series 1990 DN (MBIA
Insurance) (A-1+, VMIG-1)
3.50%(1)............ 06/07/96 400 400,000
Knox County Health, Educational
& Housing Facilities Authority
(Mercy Health Care) Series B
DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
3.60%(1)............ 06/07/96 1,745 1,745,000
Knox County Health, Educational
& Housing Facilities Authority
(Mercy Health Care) Series
1994B DN (A-1, VMIG-1)
3.75%(1)............ 06/07/96 3,100 3,100,000
Knox County IDA (Weisgarber
Partners) DN (Credit Suisse
LOC) (A-1+, VMIG-1)
3.60%(1)............ 06/17/96 1,000 1,000,000
Knox County IDRB (Professional
Plaza Project) DN (Credit
Suisse LOC) (VMIG-1)
3.60%(1)............ 06/30/96 2,800 2,800,000
Memphis GO Series 1995A DN
(A-1+, VMIG-1)
3.60%(1)............ 06/07/96 7,700 7,700,000
Memphis GO Series 1995A DN
(A-1+, VMIG-1)
3.60%(1)............ 06/07/96 6,000 6,000,000
Metropolitan Nashville Airport
Improvement Bonds DN (Credit
Local de France LOC) (A-1+,
VMIG-1)
3.60%(1)............ 06/07/96 29,910 29,910,000
Metropolitan Nashville Airport
Improvement Bonds DN (Societe
Generale LOC) (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 3,700 3,700,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
Montgomery County Public
Building Authority Pooled
Financing GO (Montgomery
County Loan Pool) DN
(NationsBank LOC) (A-1,
VMIG-1)
3.65%(1)............ 06/07/96 $ 5,000 $ 5,000,000
Montgomery County Public
Building Authority Pooled
Financing GO (Tennessee County
Loan Pool) Series 1995 DN
(NationsBank LOC) (A-1,
VMIG-1)
3.65%(1)............ 06/07/96 7,000 7,000,000
------------
73,355,000
------------
TEXAS -- 15.76%
City of Houston Water and Sewer
System Series A TECP (A-1+,
P-1)
3.30%............... 06/13/96 13,000 13,000,000
3.70%............... 08/22/96 7,000 7,000,000
3.65%............... 10/10/96 5,000 5,000,000
Harris County Toll Road Series G
DN (A-1+, VMIG-1)
3.60%(1)............ 06/07/96 2,800 2,800,000
Nueces County Health Facilities
Authority (Driscoll Children's
Hospital) DN (Barclays Bank
LOC) (VMIG-1)
3.55%(1)............ 06/07/96 2,750 2,750,000
Texas Municipal Power Agency
TECP (A-1, P-1)
3.20%............... 08/09/96 13,250 13,250,000
Texas Public Finance Authority
GO TECP (A-1+, P-1)
3.40%............... 08/13/96 10,000 10,000,000
3.40%............... 08/19/96 8,000 8,000,000
3.70%............... 09/10/96 8,800 8,800,000
Texas TRAN Series A (SP-1+,
MIG-1)
4.75%............... 08/30/96 32,650 32,743,899
Tom Green County Health
Facilities Development
Corporation (Universal Health
Services Inc., San Angelo) DN
(Bank of Nova Scotia LOC)
(A-1+, VMIG-1)
3.60%(1)............ 06/07/96 2,500 2,500,000
------------
105,843,899
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
7
<PAGE> 8
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
UTAH -- 3.28%
Intermountain Power Agency Power
Supply Revenue and Refunding
Bonds (Swiss Bank LOC) (A-1+,
VMIG-1)
3.30%............... 06/17/96 $ 9,950 $ 9,950,000
3.25%............... 08/12/96 7,550 7,550,000
Utah Housing Finance Authority
(Single Family Mortgage)
Series 1993D DN (Goldman Sachs
Guaranteed Investment
Contract) (VMIG-1)
3.80%(1)............ 06/07/96 4,475 4,475,000
------------
21,975,000
------------
VERMONT -- 0.28%
Vermont Educational & Health
Buildings Finance Agency
Hospital RB (VHA of New
England Capital Asset
Financing Program) Series
1985C DN (FNB Chicago LOC)
(A-1)
3.60%(1)............ 06/07/96 1,800 1,800,000
------------
VIRGINIA -- 0.98%
Capital Region Airport
Commission (Richmond
International Airport
Projects) Series 1995B DN
(Credit Local de France LOC)
(VMIG-1)
3.50%(1)............ 06/07/96 1,700 1,700,000
Louisa County IDA (Pooled
Financing) DN (NationsBank
LOC) (A-1, VMIG-1)
3.65%(1)............ 06/07/96 4,200 4,200,000
Lynchburg IDA (VHA Mid-Atlantic
States Capital Asset Financing
Program) Series 1985C DN (FNB
Chicago LOC) (VMIG-1)
3.60%(1)............ 06/07/96 700 700,000
------------
6,600,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- --------- ------- ------------
<S> <C> <C> <C>
WASHINGTON -- 6.79%
King County Sewer Revenue BAN
Series A TECP (A-1+, P-1)
3.40%............... 07/25/96 $20,000 $ 20,000,000
3.75%............... 09/11/96 15,000 15,000,000
Port of Seattle IDRB (Sysco
Foods Services Corporation) DN
(A-1, VMIG-1)
3.80%(1)............ 06/07/96 2,000 2,000,000
Washington Public Power Supply
System Project DN (Bank of
America LOC) (A-1, VMIG-1)
3.55%(1)............ 06/07/96 8,600 8,600,000
------------
45,600,000
------------
WEST VIRGINIA -- 0.45%
Marshall County PCRB (PPG
Industries Project) DN (A-1,
VMIG-1)
3.80%(1)............ 06/07/96.. 3,000 3,000,000
------------
WISCONSIN -- 2.53%
City of Oak Creek PCRB
(Wisconsin Electric Power) DN
(VMIG-1)
3.80%(1)............ 06/07/96.. 800 800,000
Wisconsin State Operating Notes
Series 1995 (SP-1+, MIG-1)
4.50%............... 06/17/96 16,200 16,206,293
------------
17,006,293
------------
WYOMING -- 2.88%
Lincoln County PCRB (Amoco
Project) DN
3.25%(1)............ 10/01/96 14,350 14,338,233
Sweetwater County PCRB
(Pacificorp Project) (Union
Bank of Switzerland LOC)
(A-1+, VMIG-1)
3.75%(1)............ 08/01/96 5,000 5,000,000
------------
19,338,233
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
8
<PAGE> 9
MUNIFUND PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $667,555,771*)............ 99.43%.. $667,555,771
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.57 3,834,774
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 618,515,023
MuniFund shares and 52,991,986
MuniFund dollar shares
outstanding).................... 100.00%.. $671,390,545
------- ------------
------- ------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($671,390,545 / 671,507,009)................ $1.00
-----
-----
</TABLE>
- ---------------
* Aggregate cost for federal income tax purposes is substantially the same.
(1) Variable rate
<TABLE>
<S> <C> <C> <C> <C>
---------------------------------------------------------
</TABLE>
MUNIFUND PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C> <C> <C>
1- 30 days $403,625,000 60.5%
31- 60 days 20,000,000 3.0
61- 90 days 113,300,000 17.0
91-120 days 68,955,000 10.3
121-150 days 41,350,000 6.2
over 150 days 20,200,000 3.0
Average Weighted Maturity -- 43 days
---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
MUNICASH PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C> <C>
ALABAMA -- 1.04%
Alabama Housing Finance
Authority Multifamily Housing
Bonds (Rime Village Hoover
Project) Series 1988A (Amsouth
Bank of Alabama LOC) (A-1,
VMIG-1)
3.70%............... 06/28/96 $ 5,000 $ 5,000,000
City of Phenix IDRB (Georgia
Kraft Company) DN (Canadian
Imperial Bank LOC) (A-1+)
3.60%(1)............ 06/01/96 1,000 1,000,000
------------
6,000,000
------------
ARIZONA -- 1.08%
Apache County PCRB (Tucson
Electric Project) Series 1983A
DN (Barclays Bank LOC) (A-1+)
3.65%(1)............ 06/07/96 1,000 1,000,000
Cochise County Pollution Control
Solid Waste Disposal
Facilities RB (Arizona
Electric Power Cooperative
Incorporated) AMT (National
Rural Utilities LOC) (A-1+,
VMIG-1)
3.30%............... 09/01/96 5,200 5,200,000
------------
6,200,000
------------
CALIFORNIA -- 7.31%
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company Project) AMT (Swiss
Bank LOC) (A-1, VMIG-)
3.80%(1)............ 06/07/96 23,500 23,500,000
Grand Terrace Community
Redevelopment Agency
Multifamily Housing Revenue
Bonds DN (Industrial Bank of
Japan LOC) (A-1)
3.65%(1)............ 06/07/96 4,600 4,600,000
Los Angeles County TRAN (Bank of
America LOC) (SP-1, MIG-1)
4.50%............... 07/01/96 5,000 5,001,910
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Southeast Resource Recovery
Facility Authority Revenue
Refunding Bonds AMT
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
4.00%(1)............ 06/07/96 $ 8,900 $ 8,900,000
------------
42,001,910
------------
COLORADO -- 2.45%
City & County of Denver Airport
System Subordinated Revenue
Bonds AMT (Sanwa Bank LOC)
(A-1+, P-1)
3.75%............... 07/09/96 2,000 2,000,000
3.95%............... 07/09/96 7,070 7,070,000
3.85%............... 10/21/96 5,000 5,000,000
------------
14,070,000
------------
DELAWARE -- 0.44%
Delaware Economic Development
Authority (Delmarva Power &
Light Gas Works) AMT (A-1,
VMIG-1)
3.80%(1)............ 06/01/96 2,500 2,500,000
------------
DISTRICT OF COLUMBIA -- 0.05%
District of Columbia GO (General
Fund Recovery) Series B DN
(Sumitomo Bank LOC) (A-1+,
VMIG-1)
3.95%(1)............ 06/01/96 300 300,000
------------
FLORIDA -- 0.52%
Volusia County Health Facilities
Authority Revenue Bonds
(Volusia Health Systems
Project) DN (First Union
National Bank of North
Carolina LOC) (A-1)
3.65%(1)............ 06/07/96 3,000 3,000,000
------------
GEORGIA -- 4.46%
Bulloch County Development
Authority IDRB (Gold Kist
Incorporated Project) Series
1995 AMT
(Wachovia Bank LOC)
3.75%(1)............ 06/07/96 4,700 4,700,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
10
<PAGE> 11
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
GEORGIA (CONTINUED)
Burke County Development
Authority PCRB (Oglethorpe
Power Corporation Vogtile
Project) Series 1994A DN
(Credit Local LOC) (A-1+,
VMIG-1)
3.50%(1)............ 06/07/96 $ 7,900 $ 7,900,000
Cobb County IDRB (John W. Rooker
Company Project) AMT (First
Union National Bank of North
Carolina LOC)
3.85%(1)............ 06/07/96 2,300 2,300,000
Decatur County & Bainbridge IDRB
(Thomas & Betts Corporation
Project) AMT (Wachovia Bank
LOC)
3.75%(1)............ 06/07/96 3,500 3,500,000
Gulf Coast IDA Solid Waste
Disposal Revenue Bonds (Citgo
Petroleum Corporation Project)
Series 1995 AMT (NationsBank
LOC) (VMIG-1)
4.15%(1)............ 06/01/96 1,500 1,500,000
Haralson County Development
Authority IDRB (Gold Kist
Incorporated Project) Series
1995 AMT
(Wachovia Bank LOC)
3.75%(1)............ 06/07/96 2,500 2,500,000
Housing Authority of Gwinnett
County IDRB (Post Corners
Curtis 1000 Incorporated
Project) AMT (Sun Bank LOC)
(A-1+)
3.75%(1)............ 06/07/96 3,230 3,230,000
------------
25,630,000
------------
ILLINOIS -- 18.97%
Belvidere IDRB (R&D Thiel
Incorporated Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
3.75%(1)............ 06/06/96 1,890 1,890,000
Chicago Gas Supply RB (Peoples
Gas Light & Coke) AMT (A-1+,
VMIG-1)
3.85%............... 12/01/96 7,000 7,000,000
Chicago IDRB (Enterprise Center
IX Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.85%(1)............ 06/07/96 4,750 4,750,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Chicago IDRB (Enterprise VII
Center Project) AMT (ABN-AMRO
Bank N.V. LOC) (A-1+)
3.85%(1)............ 06/07/96 $ 7,200 $ 7,200,000
Chicago O'Hare International
Airport (American Airlines)
Series 1983D DN (Sanwa Bank
LOC) (VMIG-1)
3.65%(1)............ 06/01/96 10,300 10,300,000
Illinois Development Finance
Authority (Azteca Foods
Project Incorporated) AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+)
3.95%(1)............ 06/07/96 4,200 4,200,000
Illinois Development Finance
Authority IDRB (Bhagvan H.
Patel Project) AMT (Bank One
Columbus LOC) (A-1+)
3.80%............... 06/07/96 2,500 2,500,000
Illinois Development Finance
Authority IDRB (Henry Valve
Company Project) Series 1995
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.85%(1)............ 06/07/96 4,780 4,780,000
Illinois Development Finance
Authority IDRB (Prairie
Packaging Incorporated
Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.85%(1)............ 06/07/96 3,000 3,000,000
Illinois Development Finance
Authority IDRB (Royal
Continental Box Project)
Series B AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.95%(1)............ 06/07/96 3,650 3,650,000
Illinois Development Finance
Authority PCRB (Commonwealth
Edison Company Project) Series
1994C DN (ABN-AMRO Bank N.V.
LOC) (A-1+, P-1)
3.60%(1)............ 06/07/96 7,000 7,000,000
Illinois Development Finance
Authority Revenue Bonds (Olive
Can Company Project) AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+)
3.85%(1)............ 06/07/96 5,600 5,600,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
11
<PAGE> 12
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Health Facilities
Authority (Evanston Hospital
Corporation Project) Series
1985 RB (VMIG-1)
3.40%............... 10/15/96 $ 10,000 $ 10,000,000
Illinois Health Facilities
Authority Revenue Bonds
(Gottlieb Health Resources
Incorporated Obligation)
Series 1994 DN (VMIG-1)
3.60%(1)............ 06/07/96 9,900 9,900,000
Illinois Housing Development
Authority Home Ownership
Mortgage Bonds AMT (SP-1+,
VMIG-1)
3.75%............... 09/03/96 4,025 4,025,000
Lake County IDRB (Northpoint
Project) AMT (Bank One
Columbus LOC) (A-1+)
3.75%(1)............ 06/07/96 6,000 6,000,000
Naperville Economic Development
Authority (Independence
Village Associates) DN
(National City Bank LOC)
3.75%(1)............ 06/06/96 2,995 2,995,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) AMT (Mellon LOC)
(VMIG-1)
3.80%(1)............ 06/07/96 4,000 4,000,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1992 AMT
(Mellon LOC) (VMIG-1)
3.80%(1)............ 06/07/96 3,400 3,400,000
Southwestern Development
Authority Solid Waste Disposal
Revenue Bonds (Shell Oil
Company Wood River Project)
Series 1991 AMT (A-1+, VMIG-1)
4.00%(1)............ 06/01/96 1,100 1,100,000
Village of North Aurora IDRB
(Oberweis Dairy Incorporated
Project) Series 1995 AMT
(ABN-AMRO Bank N.V. LOC) (A-1,
VMIG-1)
3.85%(1)............ 06/07/96 2,900 2,900,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
West Chicago IDRB (Willamette
Industries Incorporated
Project) DN
4.05%(1)............ 06/07/96 $ 2,800 $ 2,800,000
------------
108,990,000
------------
INDIANA -- 7.46%
Hamilton County Hospital
Authority RB (Daughters of
Charity) Series 1983 DN (A-1+,
VMIG-1)
3.55%(1)............ 06/07/96 14,660 14,660,000
Indiana Development Finance
Authority IDRB (Cives
Corporation Project) Series
1992 AMT (Wachovia Bank LOC)
(A-1+)
3.75%(1)............ 06/07/96 3,600 3,600,000
Indiana Development Finance
Authority IDRB (Enterprise
Center V Project) Series 1992
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.85%(1)............ 06/07/96 5,000 5,000,000
Indiana Development Finance
Authority Solid Waste Disposal
Revenue Bonds (Pure Air on The
Lake, L.P. Project) AMT (Fuji
Bank LOC) (P-1)
4.05%............... 06/03/96 3,500 3,500,000
4.05%............... 06/07/96 10,000 10,000,000
Jasper County Economic
Development Revenue Bonds
(Wabash Valley Produce
Project) AMT (Bank One
Columbus LOC)
3.80%(1)............ 06/07/96 2,000 2,000,000
South Bend Redevelopment
Authority (College Football
Hall of Fame) DN (Fuji Bank
LOC) (VMIG-1)
4.10%(1)............ 06/07/96 4,100 4,100,000
------------
42,860,000
------------
IOWA -- 1.57%
Iowa Finance Authority IDRB
(Sauer Sundstrand Company
Project) AMT (Bayerische LB
Girozentrale LOC) (P-1)
3.70%(1)............ 06/07/96 9,000 9,000,000
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
12
<PAGE> 13
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
KENTUCKY -- 6.88%
Davies County Solid Waste
Disposal Facilites (Scott
Paper Company Project) Series
1994A AMT (Morgan Guaranty
LOC) (A-1+, VMIG-1)
3.85%(1)............ 06/01/96 $ 7,000 $ 7,000,000
Davies County Solid Waste
Disposal Facilities (Scott
Paper Company Project) Series
1993A AMT (Morgan Guaranty
LOC) (A-1+, VMIG-1)
3.85%(1)............ 06/01/96 13,000 13,000,000
Davies County Solid Waste
Disposal Facilities (Scott
Paper Company Project) Series
1994B AMT (ABN-AMRO Bank N.V.
LOC) (A-1+, P-1)
3.85%(1)............ 06/01/96 8,100 8,100,000
Maysville Solid Waste Disposal
Facilities Revenue Bonds
(Inland Container Corporation
Project) Series 1992 AMT (A-1,
P-1)
3.80%............... 06/14/96 2,800 2,800,000
3.65%............... 07/10/96 1,565 1,565,000
3.40%............... 07/29/96 7,035 7,035,000
------------
39,500,000
------------
LOUISIANA -- 4.56%
Calcasieu Parish IDRB (Citgo
Petroleum Corporation) Series
1994 AMT (Banque Nationale de
Paris LOC) (A-1+, VMIG-1)
4.15%(1)............ 06/01/96 1,000 1,000,000
East Baton Rouge Mortgage
Finance Authority Single
Family Mortgage Revenue
Refunding Bonds (Federal
National Mortgage Association
LOC) (VMIG-1)
3.40%............... 10/03/96 6,165 6,165,000
Lincoln Parish Facilities RB
(Willamette Industries
Project) AMT (A-1)
4.30%(1)............ 06/07/96 15,000 15,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
LOUISIANA (CONTINUED)
Plaquemines Parish (British
Petroleum Environmental
Project) RB AMT (A-1+, P-1)
4.10%(1).............. 06/01/96 $ 4,000 $ 4,000,000
------------
26,165,000
------------
MARYLAND -- 2.95%
Maryland Health & Higher
Educational Facilities
Authority (Johns Hopkins
Hospital) DN
5.00%(1).............. 06/07/96 3,600 3,600,000
Maryland State Community
Development Administration
Department (Single Family
Housing Bonds Project) Series
2 AMT (VMIG-1)
3.55%............... 10/01/96 7,835 7,835,000
Maryland State Economic
Development Corporation RB
(Atlantic Pharmaceutical
Services Incorporated) AMT
(FNB Maryland LOC) (A-1)
3.99%(1).............. 06/07/96 5,500 5,500,000
------------
16,935,000
------------
MICHIGAN -- 1.15%
Michigan GO (SP-1+, VMIG-1)
4.00%............... 09/30/96 3,000 3,004,133
Michigan State Strategic Fund
Limited Obligation Revenue
Bonds (Rochester Gear
Incorporated Project) AMT
(Comerica Bank Detroit LOC)
(A-1)
3.75%(1).............. 06/07/96 3,600 3,600,000
------------
6,604,133
------------
MISSISSIPPI -- 0.05%
Jackson County Industrial Sewage
Facilities RB (Chevron
Incorporated Project) AMT
4.00%(1).............. 06/01/96 300 300,000
------------
MONTANA -- 0.96%
Forsyth PCRB (Portland General
Electric Company Project) AMT
(Banque Nationale de Paris
LOC) (VMIG-1)
3.80%(1).............. 06/07/96 5,500 5,500,000
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
13
<PAGE> 14
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
NEVADA -- 0.54%
Washoe County Water Facilities
Revenue Bonds (Sierra Pacific
Power Company Project) AMT
(Union Bank of Switzerland
LOC) (A-1+, VMIG-1)
3.75%............... 06/19/96 $ 3,100 $ 3,100,000
------------
NEW HAMPSHIRE -- 1.65%
New Hampshire State Development
Authority Solid Waste Disposal
Revenue Bonds (United
Illuminating Company Project)
Series A AMT (Barclays Bank
LOC) (VMIG-1)
3.30%............... 09/03/96 5,000 5,000,000
New Hampshire State Housing
Finance Authority Single
Family Housing Bond AMT (FGIC
Insurance) (VMIG-1)
3.65%............... 01/15/97 4,500 4,500,000
------------
9,500,000
------------
NEW JERSEY -- 5.40%
Berkeley Township GO (AMBAC
Insurance)
4.625%.............. 11/15/96 215 215,736
Essex County Public Improvement
Authority RB (County Asset
Sale Project) DN (Morgan
Guaranty LOC) (VMIG-1)
3.40%(1)............ 06/07/96 1,600 1,600,000
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Company) DN
(Swiss Bank LOC) (A-1+,
VMIG-1)
3.25%(1)............ 06/07/96 3,000 3,000,000
New Jersey Sports and Exhibition
Authority Series 1992C DN
(MBIA Insurance) (A-1+)
3.50%(1)............ 06/07/96 8,900 8,900,000
New Jersey State Economic
Development Authority
(Winchester Gardens Ward
Homestead Project) Series B DN
(Banque Paribas LOC) (VMIG-1)
3.65%(1)............ 06/07/96 3,800 3,800,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
NEW JERSEY (CONTINUED)
New Jersey State Economic
Development Authority First
Mortgage Revenue Bonds
(Fellowship Valley Project)
Series B DN (Banque Paribus
LOC) (A-1, VMIG-1)
3.85%(1)............ 06/07/96 $ 1,400 $ 1,400,000
New Jersey State Economic
Development Authority Revenue
Bonds (Hillcrest Health
Services Systems Project) DN
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
3.65%(1)............ 06/07/96 5,400 5,400,000
New Jersey State Economic
Development Authority Revenue
Bonds (Keystone Project)
Series 1992 AMT (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
3.65%............... 06/21/96 2,000 2,000,000
New Jersey Turnpike Authority
Revenue Bonds Series 1991D DN
(Societe Generale LOC) (A-1+,
VMIG-1)
3.25%(1)............ 06/07/96 3,200 3,200,000
Parsippany Troy Hills Township
BAN (VMIG-1)
4.00%............... 05/07/97 1,500 1,504,848
------------
31,020,584
------------
NEW YORK -- 2.89%
Metropolitan Transportation
Authority (New York Commuter
Facility) Series 1991 DN
(Morgan Guaranty LOC) (VMIG-1)
3.50%(1)............ 06/07/96 2,000 2,000,000
New York City Housing
Development Corporation
(Related -- East 96th Street
Project) Series 1990A DN
(Mitsubishi Bank LOC) (VMIG-1)
3.40%(1)............ 06/07/96 9,200 9,200,000
New York City RAN Series B
(Morgan Guaranty LOC) (SP-1,
MIG)
4.75%............... 06/28/96 3,800 3,803,705
</TABLE>
---------------------------------------------------------
(1) Variable rate
14
<PAGE> 15
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
New York State Energy Research
and Development Authority PCRB
(Niagara Mohawk Power
Corporation) Series 1987B AMT
(Morgan Guaranty LOC) (A-1+)
3.90%(1)............ 06/01/96 $ 1,600 $ 1,600,000
------------
16,603,705
------------
NORTH CAROLINA -- 0.66%
Iredell County Industrial
Facilities IDRB (Purina Mills
Incorporated Project) Series
1995 AMT (Bank of Nova Scotia
LOC) (A-1+, VMIG-1)
3.70%(1)............ 06/07/96 1,000 1,000,000
North Carolina Educational
Facilities Financing Authority
(Duke University Hospital
Project) Series B DN (A-1+,
VMIG-1)
3.65%(1)............ 06/07/96 300 300,000
Wake County Industrial Facility
PCRB Series 1987 AMT (P-1)
3.70%(1)............ 06/01/96 2,500 2,500,000
------------
3,800,000
------------
OHIO -- 1.21%
City of Westlake IDRB (The Oaks
Project) Series 1994 DN
(National City Bank LOC)
3.70%(1)............ 06/07/96 20 20,000
Cuyahoga County Hospital RB (St.
Lukes Hospital Project) DN
(FNB Chicago LOC) (VMIG-)
3.60%(1)............ 06/07/96 2,900 2,900,000
Stark County BAN Series 2
4.18%............... 06/20/96 2,000 2,000,230
Toledo GO Series 1
4.25%............... 10/15/96 2,000 2,003,573
------------
6,923,803
------------
OREGON -- 0.70%
Oregon State Housing Authority
Community Services Department
Mortgage Revenue Bonds (Single
Family Mortgage Program)
Series C AMT (Escrowed in US
Treasuries LOC) (VMIG-1)
3.85%............... 05/08/97 4,000 4,000,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C> <C>
RHODE ISLAND -- 0.45%
Rhode Island Housing & Mortgage
Finance Corporation
Convertible Home Ownership
Opportunity Bonds Series 19-D
AMT (Societe Generale LOC)
(A-1+, VMIG-1)
3.55%............... 01/30/97 $ 2,600 $ 2,600,000
------------
SOUTH CAROLINA -- 0.11%
Cherokee County IDRB (Newark
Electronics Division of D-A
Lubricant Premier Farnell
Corporation) DN (Society
National Bank of Cleveland
LOC)
3.85%(1)............ 06/07/96 600 600,000
------------
TENNESSEE -- 1.31%
City of Henderson IDRB (Premier
Manufacturing Corporation
Project) AMT (National City
Bank LOC)
3.85%(1)............ 06/07/96 5,500 5,500,000
Union City IDRB (Kohler Company
Project) AMT (Wachovia Bank
LOC)
3.75%(1)............ 06/07/96 2,000 2,000,000
------------
7,500,000
------------
TEXAS -- 6.82%
Angelina and Neches River
Authority Solid Waste Disposal
RB (Temple-Eastex Incorporated
Project) AMT (A-1, P-1)
3.70%............... 08/09/96 12,450 12,450,000
3.65%............... 09/06/96 4,900 4,900,000
Brazos River Harbor Navigation
District (Dow Chemical Company
Project) Series 1992A AMT
(A-1, P-1)
4.15%(1)............ 06/01/96 5,100 5,100,000
Brazos River PCRB (Collective
Utilities Electric Company)
Series B AMT (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/01/96 600 600,000
City of Haltom IDRB (Molded
Products Company Project)
Series 1995 AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.95%(1)............ 06/07/96 3,600 3,600,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
15
<PAGE> 16
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Gulf Coast IDA Marine Terminal
Revenue Bonds (Amoco Oil
Company Project) Series 1993
AMT
(A-1+, VMIG-1)
4.00%(1)............ 06/01/96 $ 1,000 $ 1,000,000
Montgomery County IDRB (Sawyer
Research Products
Incorporated) AMT (Society
National Bank of Cleveland
LOC)
4.00%(1)............ 06/07/96 2,000 2,000,000
San Antonio River IDRB (Colin
Medical Instruments Project)
AMT (Sanwa Bank LOC) (A-1+)
3.95%(1)............ 06/07/96 3,000 3,000,000
Texas State Veterans Housing
Association Series E AMT
(A-1+, VMIG-1)
3.90%............... 12/01/96 4,000 4,000,000
Texas TRAN (SP-1+, VMIG-1)
4.75%............... 08/30/96 2,500 2,508,711
------------
39,158,711
------------
UTAH -- 4.35%
Utah Housing Finance Agency
Single Family Mortgage Bonds
Series 2 AMT (Westdeutsche
Landesbank Girozentrale LOC)
(P-1)
4.00%(1)............ 06/07/96 25,000 25,000,000
------------
VIRGINIA -- 2.17%
King George County Industrial
Development Facility Authority
RB (Birchwood Power Partners,
L.P. Project) Series 1995 AMT
(Credit Suisse LOC) (A-1+)
4.10%(1)............ 06/01/96 5,000 5,000,000
Roanoke IDA (Roanoke Memorial
Hospital Project) Series D DN
(A-1+)
3.70%(1)............ 06/07/96 7,480 7,480,000
------------
12,480,000
------------
WASHINGTON -- 4.68%
Washington Public Power DN
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
3.55%(1)............ 06/07/96 $ 2,600 $ 2,600,000
Washington State Student Loan
Finance Association
Guaranteed Student Loan
Program (Third Program)
Series 1987B AMT (VMIG-1)
4.05%(1)............ 06/06/96 21,000 21,000,000
Yakima County Public
Corporation (Printing Press
Project) AMT (Bank of
America LOC)
3.90%(1)............ 06/07/96 3,300 3,300,000
------------
26,900,000
------------
WEST VIRGINIA -- 2.22%
Grant County Municipal Solid
Waste Disposal Facilities
(Virginia Electric Power
Company Project) AMT
(A-1, VMIG-1)
3.85%............... 11/25/96 10,000 10,000,000
West Virginia Economic
Development Authority IDRB
(North American Processing
Company Project) AMT
(National City Bank of
Cleveland LOC)
3.85%(1)............ 06/07/96 2,740 2,740,000
------------
12,740,000
------------
WISCONSIN -- 2.94%
City of Janesville IDRB (Freedom
Plastics Incorporated Project)
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.85%(1)............ 06/07/96 3,000 3,000,000
City of Mequon IDRB (Johnson
Level Company Project) AMT
(Bank One Columbus LOC)
3.80%(1)............ 06/07/96 2,500 2,500,000
Racine School District TRAN
(SP-1+)
4.50%............... 08/23/96 8,900 8,908,717
Raymond City IDRB (Richard S.
Werner RSW Incorporated
Project) AMT (Bank One
Columbus LOC)
3.80%(1)............ 06/07/96 2,500 2,500,000
------------
16,908,717
------------
</TABLE>
16
<PAGE> 17
MUNICASH PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $574,391,563*)............ 100.00% $574,391,563
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.00 15,060
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 476,002,531
MuniCash shares and 98,571,281
MuniCash Dollar shares
outstanding).................... 100.00% $574,406,623
======= ============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE
PER SHARE
($574,406,623 / 574,573,812).............. $1.00
=====
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same.
(1) Variable rate.
- ---------------------------------------------------------
</TABLE>
MUNICASH PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C> <C>
1- 30 Days $440,895,000 76.8%
31- 60 Days 22,670,000 3.9
61- 90 Days 21,350,000 3.7
91-120 Days 21,625,000 3.8
121-150 Days 34,000,000 5.9
Over 150 Days 33,815,000 5.9
Average Weighted Maturity -- 34 Days
- ---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 18
INTERMEDIATE MUNICIPAL PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------- --------- ------- ----------
<S> <C> <C> <C>
CALIFORNIA -- 4.52%
City of Sacramento Financing
Authority (Pre-Refunded
11/01/01 @ 102) RB (Aaa)
6.70%.................. 11/01/11 $ 235 $ 260,850
----------
DELAWARE -- 4.31%
Delaware GO (Aa1)
5.125%................. 04/01/06 250 249,063
----------
FLORIDA -- 4.45%
State of Florida Board of Education
Series C RB (Aa)
5.40%.................. 06/01/02 250 257,187
----------
GEORGIA -- 4.59%
Georgia GO (Aaa)
5.90%.................. 03/01/03 250 264,687
----------
MAINE -- 3.55%
Maine GO (Aa)
5.30%.................. 09/01/02 200 204,750
----------
MASSACHUSETTS -- 4.29%
Massachusetts GO Series A (Aaa)
5.00%.................. 01/01/05 250 247,813
----------
MINNESOTA -- 4.36%
Minnesota GO (Aa1)
5.00%.................. 08/01/03 250 251,875
----------
NEW JERSEY -- 14.66%
New Jersey State GO (Aa1)
6.00%.................. 08/01/03 250 264,375
New Jersey Transportation Authority
Series B RB (MBIA Insurance)
(Aaa)
6.00%.................. 06/15/05 300 315,750
Ocean County GO (Aa)
6.25%.................. 10/01/05 250 265,938
----------
846,063
----------
NORTH CAROLINA -- 9.01%
City of Durham Public Improvement
Bonds Series 1993 RB (Aa1)
5.00%.................. 02/01/06 250 246,250
Highpoint County Public Facility
(Pre-Refunded 06/01/00 @ 102) RB
(Aa)
6.90%.................. 06/01/05 250 274,062
----------
520,312
----------
OHIO -- 19.75%
Franklin County GO (Escrowed To
Maturity) (Aaa)
9.00%.................. 12/01/99 1,000 1,140,000
----------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------- --------- ------- ----------
<S> <C> <C> <C>
SOUTH CAROLINA -- 4.71%
South Carolina Public Service
Authority (Santee Cooper Project)
RB (FGIC Insurance) (Aaa)
6.50%.................. 01/01/04 $ 250 $ 271,875
----------
VIRGINIA -- 8.05%
Virginia Public School Authority
Series A RB (Aa)
5.25%.................. 08/01/04 250 252,188
Virginia Public School Authority
Series B RB (Aa)
6.00%.................. 08/01/04 200 212,250
----------
464,438
----------
WASHINGTON -- 12.35%
City of Spokane GO (Aa)
9.125%................. 01/01/99 420 465,150
King County GO (Aa1)
5.00%.................. 01/01/04 250 247,812
----------
712,962
----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $5,718,819*).............. 98.60% 5,691,875
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 1.40 80,875
------- ----------
NET ASSETS (Equivalent to $10.83
per share based on 530,251
Intermediate Municipal shares
and 3,028 Intermediate Municipal
Dollar shares outstanding)...... 100.00% $5,772,750
======= ==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE
PER SHARE ($5,772,750 / 533,279)........ $10.83
======
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same. Net unrealized depreciation for
all securities is as follows:
Excess of value over tax cost............. $ 63,324
Excess of tax cost over value............. (90,268)
--------
$(26,944)
=========
- ---------------------------------------------------------
INTERMEDIATE MUNICIPAL PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1996
Average Weighted Maturity -- 6.3 Years
- ---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 19
INVESTMENT ABBREVIATIONS
AMT......................................................Alternative Minimum Tax
DN...................................................................Demand Note
GO............................................................General Obligation
IDA.............................................Industrial Development Authority
IDRB.........................................Industrial Development Revenue Bond
LOC.............................................................Letter of Credit
PCR....................................................Pollution Control Revenue
PCRB..............................................Pollution Control Revenue Bond
RAN....................................................Revenue Anticipation Note
RB..................................................................Revenue Bond
TECP.................................................Tax-Exempt Commercial Paper
TRAN...........................................Tax and Revenue Anticipation Note
The Moody's Investors Service, Inc. and Standard & Poor's Ratings Group ratings
of the investments in the various Portfolios are believed to be the most recent
ratings available at May 31, 1996.
See accompanying notes to financial statements.
19
<PAGE> 20
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Operations
Six Months Ended May 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE
MUNIFUND MUNICASH MUNICIPAL FUND
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ---------- --------------
<S> <C> <C> <C>
Investment income:
Interest income................................................................. $14,628,384 $7,243,482 $ 151,418
----------- ----------- ----------
Expenses:
Investment advisory fee......................................................... 717,286 339,181 6,105
Administration fee.............................................................. 717,286 339,181 6,105
Trustees' fees and officer's salary............................................. 29,703 15,501 246
Transfer agent fee.............................................................. 45,905 18,406 874
Custodian fee................................................................... 80,294 44,859 1,259
Shareholder computer access program............................................. 4,629 2,403 155
Legal and audit................................................................. 30,304 16,098 224
Registration expenses........................................................... 20,503 7,961 1,978
Printing........................................................................ 11,401 4,478 2,375
Service Organization fees -- Dollar shares...................................... 60,768 130,200 42
Other........................................................................... 19,792 8,088 1,006
----------- ----------- ----------
1,737,871 926,356 20,369
Less fees waived................................................................ (567,453) (450,898) (8,091)
----------- ----------- ----------
Total expenses............................................................. 1,170,418 475,458 12,278
----------- ----------- ----------
Net investment income........................................................... 13,457,966 6,768,024 139,140
----------- ----------- ----------
Realized and unrealized gain (loss) on investments:
Net realized gain from security transactions.................................... 8,494 3,971 126,030
Decrease in unrealized appreciation of investments.............................. -- -- (281,086)
Increase in amortized market discount........................................... 2,682 -- --
----------- ----------- ----------
Net gain (loss) on investments.................................................. 11,176 3,971 (155,056)
----------- ----------- ----------
Net increase (decrease) in net assets resulting from operations................. $13,469,142 $6,771,995 $ (15,916)
=========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO MUNICASH PORTFOLIO
------------------------------------ -----------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED
MAY 31, NOVEMBER 30, SIX MONTHS ENDED NOVEMBER 30,
1996 1995 MAY 31, 1995
----------------- --------------- 1996 ---------------
(UNAUDITED) ----------------
(UNAUDITED)
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income..................... $ 13,457,966 $ 27,468,558 $ 6,768,024 $ 14,128,703
Net gain on investments................... 11,176 87,283 3,971 6,508
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations....................... 13,469,142 27,555,841 6,771,995 14,135,211
--------------- --------------- --------------- ---------------
Dividends to shareholders from net investment
income:
MuniFund shares........................... (12,718,978) (27,156,490) -- --
MuniFund Dollar shares.................... (738,988) (312,068) -- --
MuniCash shares........................... -- -- (5,032,911 ) (10,572,440)
MuniCash Dollar shares.................... -- -- (1,735,113 ) (3,556,263)
--------------- --------------- --------------- ---------------
Total dividends to shareholders......... (13,457,966) (27,468,558) (6,768,024 ) (14,128,703)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Proceeds from sale of shares.............. 2,963,348,661 5,863,156,883 2,542,144,307 3,821,513,734
Value of shares issued in reinvestment of
dividends............................... 2,102,176 3,190,495 2,825,727 5,499,849
Cost of shares repurchased................ (3,020,863,639) (5,830,322,061) (2,393,633,032 ) (3,777,081,235)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets
derived from capital share
transactions.......................... (55,412,802) 36,025,317 151,337,002 49,932,348
--------------- --------------- --------------- ---------------
Total increase (decrease) in net
assets................................ (55,401,626) 36,112,600 151,340,973 49,938,856
Net assets:
Beginning of period........................... 726,792,171 690,679,571 423,065,650 373,126,794
--------------- --------------- --------------- ---------------
End of period................................. $ 671,390,545 $ 726,792,171 $ 574,406,623 $ 423,065,650
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 22
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL FUND
PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, NOVEMBER 30,
1996 1995
----------------- ------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................................ $ 139,140 $ 468,579
Net gain (loss) on investments................................... (155,056) 786,340
---------- ------------
Net increase (decrease) in net assets resulting from
operations................................................... (15,916) 1,254,919
---------- ------------
Dividends to shareholders from net investment income:
Intermediate Municipal shares.................................... (138,426) (467,132)
Intermediate Municipal Dollar shares............................. (714) (1,447)
---------- ------------
Total dividends to shareholders................................ (139,140) (468,759)
---------- ------------
Capital share transactions:
Proceeds from sale of shares..................................... 7,000 3,265,704
Value of shares issued in reinvestment of dividends.............. 711 1,441
Cost of shares repurchased....................................... (341,108) (14,328,104)
---------- ------------
Decrease in net assets derived from capital share
transactions................................................. (333,397) (11,060,959)
---------- ------------
Total decrease in net assets................................... (488,453) (10,274,619)
Net assets:
Beginning of period................................................... 6,261,203 16,535,822
---------- ------------
End of period......................................................... $ 5,772,750 $ 6,261,203
========== ============
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 23
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
--------------------------------------------------------
MUNIFUND SHARES
---------------------------------------------------------
SIX MONTHS YEAR ENDED NOVEMBER 30,
ENDED MAY ---------------------------------------------------------
31, 1996 1995 1994 1993 1992 1991
------------ ------- ------- --------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- --------- --------- ---------
Income From Investment
Operations:
Net Investment Income..... .0165 .0360 .0255 .0224 .0285 .0437
------- ------- ------- --------- --------- ---------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................. (.0165) (.0360) (.0255) (.0224) (.0285) (.0437)
------- ------- ------- --------- --------- ---------
Net Asset Value, End of
Period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ========= ========= =========
Total Return............... 3.35%(1) 3.66% 2.58% 2.27% 2.89% 4.46%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000).................... 618,407 720,318 687,895 1,019,749 1,006,324 1,060,468
Ratio of Expenses to
Average Daily Net
Assets(2)................. .27%(1).. .27% .26% .25% .30% .30%
Ratio of Net Investment
Income to Average Daily
Net Assets................ 3.30%(1).. 3.59% 2.53% 2.24% 2.86% 4.40%
<CAPTION>
MuniFund Dollar Shares
---------------------------------------------
Six Months Year Ended November 30,
Ended ---------------------------------------------
May 31, 1996 1995 1994 1993 1992 1991
------------- ------ ------ ------ ------ ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment Income..... .0152 .0335 .0230 .0199 .0260 .0412
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................. (.0152) (.0335) (.0230) (.0199) (.0260) (.0412)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ===== ===== ===== ======
Total Return............... 3.10%(1) 3.41% 2.33% 2.02% 2.64% 4.21%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000).................... 52,984 6,474 2,785 6,783 1,414 26,418
Ratio of Expenses to
Average Daily Net
Assets(2)................. .52%(1) .52% .51% .50% .55% .55%
Ratio of Net Investment
Income to Average Daily
Net Assets................ 3.05%(1) 3.34% 2.28% 1.99% 2.61% 4.15%
</TABLE>
- ---------------
(1) Annualized
(2) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been .41% (annualized) for
the six months ended May 31, 1996, and 0.41%, 0.41%, 0.41%, 0.41%, and
0.41%, respectively, for the years ended November 30, 1995, 1994, 1993,
1992 and 1991 for MuniFund shares and .66% (annualized) for the six months
ended May 31, 1996, and 0.66%, 0.66%, 0.66%, 0.66%, and 0.66%,
respectively, for the years ended November 30, 1995, 1994, 1993, 1992, and
1991 for MuniFund Dollar shares.
See accompanying notes to financial statements.
23
<PAGE> 24
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
MUNICASH SHARES
---------------------------------------------------
SIX MONTHS
ENDED MAY YEAR ENDED NOVEMBER 30,
31, 1996 ---------------------------------------------------
----------- 1995 1994 1993 1992 1991
(UNAUDITED) ------- ------- ------- ------- -------
Net Asset Value, Beginning of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<S> <C> <C> <C> <C> <C> <C>
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income......... .0179 .0382 .0266 .0235 .0300 .0453
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders from
Net Investment Income....... (.0179) (.0382) (.0266) (.0235) (.0300) (.0453)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................... 3.65%(1) 3.89% 2.69% 2.38% 3.04% 4.62%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)........................ 475,868 321,642 273,439 572,482 857,812 361,280
Ratio of Expenses to Average
Daily Net Assets(2)........... .18%(1) .18% .19% .20% .20% .20%
Ratio of Net Investment Income
to Average Daily Net Assets... 3.60%(1) 3.83% 2.59% 2.36% 2.90% 4.58%
- ----------------------------
MUNICASH DOLLAR SHARES
---------------------------------------------------
SIX MONTHS
ENDED MAY YEAR ENDED NOVEMBER 30,
31, 1996 ---------------------------------------------------
----------- 1995 1994 1993 1992 1991
(UNAUDITED) ------- ------- ------- ------- -------
Net Asset Value, Beginning of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<S> <C> <C> <C> <C> <C> <C>
------ ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment Income......... .0167 .0357 .0241 .0210 .0275 .0428
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders from
Net Investment Income....... (.0167) (.0357) (.0241) (.0210) (.0275) (.0428)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
Total Return................... 3.40%(1) 3.64% 2.44% 2.13% 2.79% 4.37%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)........................ 98,539 101,424 99,688 95,225 81,669 49,582
Ratio of Expenses to Average
Daily Net Assets(2)........... .43(1) .43% .44% .45% .45% .45%
Ratio of Net Investment Income
to Average Daily Net Assets... 3.35%(1) 3.58% 2.34% 2.11% 2.65% 4.33%
- ----------------------------
</TABLE>
- ---------------
(1) Annualized
(2) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been .41% (annualized) for
the six months ended May 31, 1996, and 0.41%, 0.42%, 0.42%, 0.40%, and
0.43%, respectively, for the years ended November 30, 1995, 1994, 1993, 1992
and 1991 for MuniCash shares and .66% (annualized) for the six months ended
May 31, 1996, and 0.66%, 0.67%, 0.67%, 0.65%, and 0.68%, respectively, for
the years ended November 30, 1995, 1994, 1993, 1992 and 1991 for MuniCash
Dollar shares.
See accompanying notes to financial statements.
24
<PAGE> 25
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL SHARES
------------------------------------------------
SIX MONTHS YEAR ENDED NOVEMBER 30,
ENDED MAY ------------------------------------------------
31, 1996 1995 1994 1993 1992 1991
------------ ------ ------ ------ ------ ------
(UNAUDITED)
Asset Value, Beginning of
Period.......................... $11.11 $10.39 $11.18 $10.88 $10.54 $10.26
<S> <C> <C> <C> <C> <C> <C>
------ ------ ------ ------ ------ ------
From Investment Operations:
Net Investment Income........... .2514 .5256 .5053 .5315 .5609 .6093
Net Realized and Unrealized Gain
(Loss) on Investments......... (.2800) .7200 (.7900) .3000 .3400 .2800
------ ------ ------ ------ ------ ------
Total From Investment
Operations.................... (.0286) 1.2456 (.2847) .8315 .9009 .8893
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders from
Net Investment Income......... (.2514) (.5256) (.5053) (.5315) (.5609) (.6093)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period... $10.83 $11.11 $10.39 $11.18 $10.88 $10.54
====== ====== ====== ====== ====== ======
Total Return..................... (0.27%) 12.22% (2.63%) 7.76% 8.74% 8.89%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000).......................... 5,740 6,228 16,507 22,350 29,911 33,479
Ratio of Expenses to Average
Daily Net Assets(2)............. .40%(1) .40% .40% .40% .40% .40%
Ratio of Net Investment Income to
Average Daily Net Assets........ 4.55%(1) 4.87% 4.64% 4.79% 5.20% 5.87%
Portfolio Turnover Rate.......... 127%(1) 47% 40% 50% 64% 79%
- ------------------------------
<CAPTION>
INTERMEDIATE MUNICIPAL DOLLAR SHARES
------------------------------------------------
YEAR ENDED NOVEMBER 30,
------------------------------------------------
SIX MONTHS
ENDED MAY
31, 1996 1995 1994 1993 1992 1991(3)
------------ ------ ------ ------ ------ ------
(UNAUDITED)
Asset Value, Beginning of
Period.......................... $11.11 $10.39 $11.18 $10.88 $10.54 $10.26
<S> <C> <C> <C> <C> <C> <C>
------ ------ ------ ------ ------ ------
From Investment Operations:
Net Investment Income........... .2376 .4985 .4782 .5037 .5339 .2881
Net Realized and Unrealized Gain
(Loss) on Investments......... (.2800) .7200 (.7900) .3000 .3400 .2800
------ ------ ------ ------ ------ ------
Total From Investment
Operations.................... (.0424) 1.2185 (.3118) .8037 .8739 .5681
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders from
Net Investment Income......... (.2376) (.4985) (.4782) (.5037) (.5339) (.2881)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period... $10.83 $11.11 $10.39 $11.18 $10.88 $10.54
====== ====== ====== ====== ====== ======
Total Return..................... (0.52%) 11.97% (2.88%) 7.51% 8.49% 8.64%(1)
Ratios/Supplemental Data:
Net Assets, End of Period
$(000).......................... 33 33 29 30 27 26
Ratio of Expenses to Average
Daily Net Assets(2)............. .65%(1) .65% .65% .65% .65% .65%(1)
Ratio of Net Investment Income to
Average Daily Net Assets........ 4.30%(1) 4.62% 4.39% 4.54% 4.95% 5.62%(1)
Portfolio Turnover Rate.......... 127%(1) 47% 40% 50% 64% 79%(1)
- ------------------------------
</TABLE>
- ---------------
(1) Annualized.
(2) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been .66% (annualized) for
the six months ended May 31, 1996, and 0.60%, 0.53%, 0.51%, 0.50%, and
0.50%, respectively, for the years ended November 30, 1995, 1994, 1993,
1992, and 1991 for Intermediate Municipal shares and .91% (annualized) for
the six months ended May 31, 1996, and 0.85%, 0.78%, 0.76% , 0.75% and 0.75%
(annualized), respectively, for the years ended November 30, 1995, 1994,
1993, 1992, and 1991 for Intermediate Municipal Dollar shares.
(3) No Intermediate Municipal Dollar shares were outstanding during the period
January 7, 1991 to July 9, 1991.
See accompanying notes to financial statements.
25
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
A. Municipal Fund for Temporary Investment (the Company), a Pennsylvania common
law trust, is registered under the Investment Company Act of 1940, as amended,
as a diversified open-end management investment company. The Company consists of
three separate portfolios: MuniFund, MuniCash, and Intermediate Municipal Fund.
Each portfolio has two classes of shares, one class being referred to as
Dollar shares. Dollar shares and the other class of shares of each portfolio are
identical in all respects, except that Dollar shares are sold to institutions
(Service Organizations) which provide support services to their customers who
beneficially own such shares, in consideration of the Company's payment of 0.25%
(on an annualized basis) of the average daily net asset value of the Dollar
shares held by the institutions for the benefit of their customers. The Service
Organization fee is applicable only to the earnings of the respective Dollar
shares.
B. Significant accounting policies are as follows:
Security Valuation -- MuniFund and MuniCash: Portfolio securities are
valued under the amortized cost method, which approximates current market value.
Under this method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded until
maturity of the security. Regular review and monitoring of the valuation is
performed in an attempt to avoid dilution or other unfair results to
shareholders. The Company seeks to maintain the net asset value per share of
each portfolio at $1.00.
Security Valuation -- Intermediate Municipal Fund: Portfolio securities for
which market quotations are readily available (other than debt securities with
remaining maturities of 60 days or less) are valued at the mean between the most
recent quoted bid and asked prices provided by investment dealers. Other
securities and assets for which market quotations are not readily available are
valued at their fair value in the best judgment of PNC Institutional Management
Corporation under procedures established by, and under the supervision of, the
Company's Board of Trustees. Debt securities with remaining maturities of 60
days or less are valued on an amortized cost basis (unless the Board determines
that such basis does not represent fair value at the time).
Dividends to Shareholders -- Dividends from net income are declared daily
and paid monthly. Dividends payable are recorded on the dividend record date.
Net income for dividend purposes includes interest accrued less amortization of
market premium and accrued expenses. Net realized capital gains, if any, are
distributed at least annually.
Federal Taxes -- No provision is made for federal taxes as it is the
Company's intention to have each portfolio continue to qualify as to regulated
investment company and to make the requisite distributions to its shareholders
which will be sufficient to relieve it from all or substantially all federal
income and excise taxes.
Other -- Investment transactions are accounted for on the trade date, and
the cost of investments sold is determined by use of the specific identification
method for both financial reporting and income tax purposes. Expenses not
directly attributable to a specific portfolio or class are allocated among the
Company's portfolios or classes based on their relative average net assets.
C. Under agreements among the Company, PNC Bank, National Association ("PNC
Bank") and PNC Institutional Management Corporation ("PIMC"), an indirect
wholly-owned subsidiary of PNC Bank, PIMC manages the Company's portfolios and
maintains their financial accounts. PNC Bank is the Company's sub-adviser and
custodian, and PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC
Bank Corp., is the Company's transfer agent.
26
<PAGE> 27
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Provident Distributors, Inc. ("PDI") serves as the Company's Distributor.
No compensation is payable by the Company to PDI for its distribution services.
The Company has entered into an Administration Agreement with PFPC and PDI
(the "Administrators") for certain administrative services.
In return for their advisory and administrative services, the Company pays
PIMC and the Administrators each a fee, computed daily and payable monthly,
based upon an annual percentage of the average daily net assets of the Company's
portfolios, considered separately, as follows:
MuniFund and MuniCash -- .175% of the first $1 billion, .15% of the next $1
billion, .125% of the next $1 billion, .10% of the next $1 billion, .095% of the
next $1 billion, .09% of the next $1 billion, .085% of the next $1 billion and
.08% of net assets in excess of $7 billion.
Intermediate Municipal Fund -- .20% of average net assets.
If expenses borne by any portfolio in any fiscal year exceed the applicable
expense limitation imposed by state securities regulations, the Administrators
and PIMC will each reimburse the portfolio for one-half of any excess expense up
to the amount of fees payable to it (except where such regulations require
reimbursement regardless of the fees payable to it).
The Administrators and PIMC have also agreed to reduce their fees, on an
equal basis, to the extent necessary to ensure that the ordinary operating
expenses (excluding Service Organization fees) of the MuniFund Portfolio do not
exceed .27% of its average net assets, with respect to MuniCash, .18% of its
average net assets, and, with respect to Intermediate Municipal Fund, .40% of
its average net assets.
For the six months ended May 31, 1996 the Administrators and PIMC
voluntarily waived $567,453 of the advisory and administration fees payable to
them with respect to MuniFund, $450,898 with respect to MuniCash and $8,091 with
respect to Intermediate Municipal Fund.
Service Organization fees of $15,708 were paid to affiliates of PNC Bank
for the six months ended May 31, 1996.
D. The Company's Declaration of Trust permits the trustees to authorize the
issuance of an unlimited number of full and fractional units of beneficial
interest ("shares") in the Company and to classify or reclassify any unissued
shares into one or more additional series of shares.
27
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO
-------------------------------------
MAY 31, 1996 YEAR ENDED
SIX MONTHS ENDED NOVEMBER 30, 1995
---------------- -----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
MuniFund........................................... 2,821,432,111 5,495,162,575
MuniFund Dollar.................................... 141,916,550 367,994,308
Shares issued in reinvestment of dividends:
MuniFund........................................... 1,506,128 3,075,518
MuniFund Dollar.................................... 596,048 114,977
Shares repurchased:
MuniFund........................................... (2,924,868,628) (5,465,901,712)
MuniFund Dollar.................................... (95,995,011) (364,420,349)
---------------- -----------------
Net increase (decrease) in shares............. (55,412,802) 36,025,317
================== ===================
</TABLE>
<TABLE>
<CAPTION>
MUNICASH PORTFOLIO
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1996 NOVEMBER 30, 1995
---------------- -----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
MuniCash........................................... 2,407,617,050 3,595,304,269
MuniCash Dollar.................................... 134,527,257 226,209,465
Shares issued in reinvestment of dividends:
MuniCash........................................... 1,776,648 3,595,447
MuniCash Dollar.................................... 1,049,079 1,904,402
Shares repurchased:
MuniCash........................................... (2,255,169,844) (3,550,703,102)
MuniCash Dollar.................................... (138,463,188) (226,378,133)
---------------- -----------------
Net increase in shares........................ 151,337,002 49,932,348
================== ===================
</TABLE>
28
<PAGE> 29
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL
FUND PORTFOLIO
-----------------------------------------------
SIX MONTHS ENDED
MAY 31, 1996 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1995
------------------- -------------------------
SHARES VALUE SHARES VALUE
------- --------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Intermediate Municipal...................... 631 $ 7,000 306,662 $ 3,265,704
Intermediate Municipal Dollar............... -- -- -- --
Shares issued in reinvestment of dividends:
Intermediate Municipal...................... -- -- -- --
Intermediate Municipal Dollar............... 64 711 134 1,441
Shares repurchased:
Intermediate Municipal...................... (31,022) (341,108) (1,335,253) (14,328,104)
Intermediate Municipal Dollar............... -- -- -- --
------- -------- ---------- ------------
Net decrease in shares................. (30,327) $(333,397) (1,028,457) $(11,060,959)
======= ======== ========== ============
</TABLE>
On May 31, 1996 one shareholder held 36.00% of the outstanding shares of the
Intermediate Municipal Fund Portfolio.
E. Purchases and sales of investment securities other than short-term
obligations, by Intermediate Municipal Fund, for the six months ended May 31,
1996 were $3,737,857 and $3,865,175 respectively.
F. At November 30, 1995, capital loss carryovers, expiring at various times from
1996 to 2003, were available to offset possible future capital gains of the
respective portfolios, as follows: MuniFund, $130,844; MuniCash, $171,160 and
Intermediate Municipal Fund, $558,254.
G. At May 31, 1996, net assets consisted of the following:
<TABLE>
<CAPTION>
INTERMEDIATE
MUNICIPAL
MUNIFUND MUNICASH FUND
------------ ------------ ----------
<S> <C> <C> <C>
Paid-in Capital........................................ $671,507,009 $574,573,812 $6,231,918
Accumulated net realized loss on investments........... (122,350) (167,189) (432,224)
Amortized market discount.............................. 5,886 -- --
Unrealized depreciation of investments................. -- -- (26,944)
------------ ------------ ------------
Total Net Assets....................................... $671,390,545 $574,406,623 $5,772,750
============ ============ ============
</TABLE>
29
<PAGE> 30
TRUSTEES
G. Willing Pepper
Chairman
G. Nicholas Beckwith III
Philip E. Coldwell
Robert R. Fortune
Jerrold B. Harris
Rodney D. Johnson
OFFICERS
G. Willing Pepper
President
Edward J. Roach
Vice President and Treasurer
Morgan R. Jones
Secretary
INVESTMENT ADVISER
PNC Institutional Management
Corporation
400 Bellevue Parkway
Wilmington, DE 19809
CO-ADMINISTRATORS
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
DISTRIBUTOR
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
TRANSFER AGENT
PFPC Inc.
P.O. Box 8950
Wilmington, DE 19885-9628
This report is submitted for
the general information of the
shareholders of the Company.
It is not authorized for
distribution to prospective
investors unless accompanied
or preceded by effective
prospectuses for each
portfolio of the Company,
which contain information
concerning the investment
policies of the portfolios as
well as other pertinent
information.
PIF-T-009
MUNIFUND
MUNICASH
INTERMEDIATE MUNICIPAL FUND
INVESTMENT PORTFOLIOS
OFFERED BY
MUNICIPAL FUND FOR
TEMPORARY INVESTMENT
[PROVIDENT INSTITUTIONAL FUNDS LOGO]
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
MAY 31, 1996
