<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
January 12, 1996
Dear Shareholder:
Enclosed is the Annual Report to Shareholders of Municipal Fund for
Temporary Investment for the year ended November 30, 1995.
The Investment Adviser's Report which is also enclosed contains commentary
on the economy and portfolio performance. I urge you to read this interesting
report.
Provident Institutional Funds remains committed to providing its
shareholders with quality service, liquidity, competitive returns and stability
of principal.
If you have any questions about Municipal Fund for Temporary Investment,
please contact your Provident Distributors, Inc. account representative or our
Client Service Center at (800) 821-7432. They will also be able to provide
information about the other portfolios offered by Provident Institutional Funds.
Your continued confidence in Provident Institutional Funds is greatly
appreciated.
Sincerely,
/s/ G. WILLING PEPPER
---------------------
G. Willing Pepper
Chairman
<PAGE> 2
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Investment Adviser's Report
Economic growth slowed early in the year as the impact from the interest
rate rise during 1994 worked its way through the system. The final revision to
second quarter real gross domestic product (GDP) growth was 1.3%, a dramatic
reduction from the 5.1% experienced in the fourth quarter of 1994 and the 2.7%
in the first quarter of 1995. While the Fed was concerned about this
deceleration in growth, they could not overlook the decline in long-term
interest rates that had occurred by mid-1995 and the possibility that it might
re-stimulate the economy. A reacceleration in consumer spending would reduce
inventories and lead to a resumption in manufacturing activity. By June, there
were, in fact, several indications that economic growth was rekindling. Factory
orders, durable goods orders, retail sales and housing all rebounded in mid-
summer. Existing home sales rose 4.7% while new home sales jumped 19.9%, the
largest increase since January 1992. Lastly, consumer confidence remained
relatively high, buoyed by a soaring stock market.
The year-long rise in short-term interest rates ended in July, when the
Federal Reserve lowered the federal funds rate from 6% to 5.75%. This reversal
in monetary policy was widely anticipated and represented the Fed's belief that
"inflationary pressures have receded enough to accommodate a modest adjustment
in monetary conditions." As the year ended, the outlook for the economy was for
modest growth with subdued inflation. If the economic reports turn weaker, the
Fed may ease policy again, assuming that inflation remains low.
Although the technical factors that shape the rate cycle in the short-term
municipal money market remained largely in place, there were a number of issues
over the last year that created a higher than usual degree of uncertainty during
this period. The significant issues included the potential for imposition of new
regulations by the Securities and Exchange Commission, speculation about the
possibility of a flat tax, national sales tax, or other major changes in the tax
code, and, of course, the Orange County, California debacle. All of these
factors tended to argue in favor of increased caution on the part of portfolio
managers.
Due to the special factors that affected the municipal market, as well as a
flat to sometimes inverted yield curve, both MuniFund and MuniCash remained
heavily concentrated in variable rate demand notes during the year. This
strategy helped to maximize performance while placing significant emphasis on
liquidity and defensively short average weighted maturities. The two portfolios'
performances remained extremely competitive within their peer groups. MuniFund
was ranked #3 among AAA-rated institutional funds (IBC/Donoghue's) for the month
of November, and MuniCash was ranked #3 among Tax-Free Institutions-Only Funds
(IBC/Donoghue's) for the 12 months ended November 30, 1995. Assets at year-end
stood at $726.8 million for MuniFund and $423.1 million for MuniCash. Both
portfolios continued their emphasis on high credit quality, with MuniFund
maintaining its AAA Standard & Poor's rating.
Yields in the longer-term tax-exempt market declined sharply for the
12-month period ended November 30, 1995, as the economy exhibited signs of
slowing, and inflation remained under control. The Bond Buyer Index (BBI) fell
136 basis points to 5.54%, while the Revenue Bond Index (RBI) fell 140 basis
points to 5.78%. Municipal bond issuance totaled $136.1 billion for the period,
down 11.8% from the $154.4 billion sold for the year ended November 30, 1994.
The Blue List supply averaged $1.5 billion for the period. The average maturity
of the Intermediate Municipal Fund remained fairly constant at 5.6 years. The
Portfolio continues to emphasize higher quality issues, with 100% of the assets
rated AA or higher. The Portfolio underperformed the Lehman Brothers Index for
the period, which is normal during a period of declining interest rates, since
the Portfolio may not purchase bonds with maturities beyond ten years. The
Portfolio seeks to minimize volatility of the net asset value by maintaining a
lower average maturity and duration.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
January 4, 1996
2
<PAGE> 3
INTERMEDIATE MUNICIPAL FUND PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN INTERMEDIATE MUNICIPAL
FUND
AND THE LEHMAN BROTHERS STATE GENERAL OBLIGATION INDEX
(FOR EACH YEAR ENDED NOVEMBER 30)
<TABLE>
<CAPTION>
Average Annual Total Return
--------------------------------
1 Year 5 Year 10 Year
<S> <C> <C> <C>
Intermediate Municipal Shares 12.22% 6.87% 6.61%
Intermediate Municipal Dollar Shares 11.97% 6.62% 6.36%
</TABLE>
<TABLE>
<CAPTION>
LEHMAN BR
OTHERS STATE
INTERMEDIATE INTERMEDIATE GENERAL
MEASUREMENT PERIOD MUNICIPAL MUNICIPAL OBLIGATION
(FISCAL YEAR COVERED) SHARES DOLLAR SHARES INDEX
<S> <C> <C> <C>
1985 10000 10000 10000
1986 10951 10925 11814
1987 11096 11043 11727
1988 11787 11702 12768
1989 12649 12528 14014
1990 13601 13440 15080
1991 14810 14601 16482
1992 16104 15841 18059
1993 17356 17031 19986
1994 16900 16541 19107
1995 18964 18521 22411
</TABLE>
- --------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION
During the fiscal year ended November 30, 1995, 100% of the dividends
paid from net investment income of the MuniFund, MuniCash and Intermediate
Municipal Fund Portfolios were exempt-interest dividends for purposes of
federal income tax and free from such tax.
However, 53.62% of the dividends from net investment income of the
MuniCash Portfolio must be taken into consideration in determining liability
for federal alternative minimum tax.
In January 1996, you will be furnished with a schedule showing the
percentage breakdown by state or U.S. possession of the source of interest
income of each portfolio in 1995.
- --------------------------------------------------------------------------------
3
<PAGE> 4
MUNIFUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1995
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C>
ALABAMA -- 1.07%
Calhoun County Economic
Development Council IDRB
(Craft Corporation Project) DN
(A-1+, VMIG-1)
4.00%(1)............ 12/07/95 $ 4,000 $ 4,000,000
City of Montgomery BMC Special
Care Facilities Authority (VHA
of Alabama) Series 1985E DN
(AMBAC Insurance) (A-1,
VMIG-1)
3.65%(1)............ 12/07/95 3,800 3,800,000
------------
7,800,000
------------
ARIZONA -- 5.41%
Apache County IDA PCR (Tucson
Electric Power Company) Series
1983A DN (Barclays Bank LOC)
(A-1+, VMIG-1)
3.65%(1)............ 12/07/95 5,500 5,500,000
Apache County IDA PCR (Tucson
Electric Power Company)
Springerville Project Series
1983B DN (Bank of New York
LOC) (A-1, VMIG-1)
3.75%(1)............ 12/07/95 2,700 2,700,000
Pima County IDA PCR (Tucson
Electric Power Company) DN
(Barclays Bank LOC) (A-1+,
VMIG-1)
3.65%(1)............ 12/07/95 13,500 13,500,000
Pima County IDA PCR (Tucson
Electric Power Company) Series
1983A DN (Barclays Bank LOC)
(A-1+, VMIG-1)
3.65%(1)............ 12/07/95 17,600 17,600,000
------------
39,300,000
------------
CALIFORNIA -- 2.99%
Los Angeles County TRAN (Bank of
America LOC) (SP-1, MIG-1)
4.50%............... 07/01/96 21,660 21,740,918
------------
COLORADO -- 0.87%
Colorado Health Facilities
Authority (Boulder Community
Hospital Project) Series B DN
(MBIA Insurance) (VMIG-1)
3.70%(1)............ 12/07/95 4,800 4,800,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C>
COLORADO (CONTINUED)
Moffat County PCR (Tri-State)
Series 1984 DN (A-1+, P-1)
3.65%(1)............ 12/07/95 $ 1,500 $ 1,500,000
------------
6,300,000
------------
FLORIDA -- 3.31%
Lee County Hospital Board of
Directors Hospital Revenue
Bonds (Sun Bank LOC) (A-1+,
VMIG-1)
3.85%............... 01/26/96 5,500 5,500,000
Martin County PCRB (Florida
Power & Light Company Project)
Series 1994 DN (A-1, VMIG-1)
3.80%(1)............ 12/01/95 4,000 4,000,000
Orange County Health Facilities
Authority Refunding Program
Revenue Bonds (Pooled Hospital
Loan Program) DN (Banque
Nationale de Paris LOC) (A-1+,
VMIG-1)
3.65%(1)............ 12/07/95 2,050 2,050,000
State of Florida Board of
Education Public Education
Tender Option Bond Series 10A
DN (Morgan Guaranty LOC)
(VMIG-1)
3.80%(1)............ 12/07/95 7,830 7,830,000
University Athletic Association
Capital Improvement
(University of Florida Stadium
Project) DN (Sun Bank LOC)
(A-1+, VMIG-1)
3.75%(1)............ 12/01/95 3,200 3,200,000
University Athletic Association
Capital Improvement
(University of Florida Stadium
Project) DN (Sun Bank LOC)
(A-1+, VMIG-1)
3.75%(1)............ 12/01/95 1,500 1,500,000
------------
24,080,000
------------
GEORGIA -- 2.94%
Cobb County Housing Authority RB
(Post Mill Project) Series
1995 DN (Federal National
Mortgage Association LOC)
(A-1+, VMIG-1)
3.65%(1)............ 12/07/95 3,880 3,880,000
</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>
GEORGIA (CONTINUED)
Dekalb County Housing Authority
Multifamily Housing Bonds
(Camden Brooke Project) DN
(Federal National Mortgage
Association LOC) (VMIG-1)
3.65%(1)............ 12/07/95 $14,500 $ 14,500,000
Monroe County Development
Authority PCRB (Gulf Power
Company Plant) Series 2 DN
(A-1, VMIG-1)
4.00%(1)............ 12/07/95 3,000 3,000,000
------------
21,380,000
------------
HAWAII -- 0.41%
Hawaii GO Tender Option Bonds
Series BZ DN (Morgan Guaranty
LOC) (VMIG-1)
3.80%(1)............ 12/07/95 3,000 3,000,000
------------
IDAHO -- 0.41%
Idaho Health Facilities
Authority (Holy Cross Health
System) DN (A-1+, VMIG-1)
3.70%(1)............ 12/07/95 3,000 3,000,000
------------
ILLINOIS -- 8.43%
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) Series C
(Canadian Imperial Bank LOC)
(A-1+, VMIG-1)
3.75%............... 02/14/96 19,500 19,500,000
Illinois Health Facilities
Authority (Evanston Hospital
Corporation Project) Series A
(VMIG-1)
4.00%............... 01/31/96 8,000 8,000,000
Illinois Health Facilities
Authority (Evanston Hospital
Corporation Project) Series
1985 RB (VMIG-1)
4.65%............... 02/15/96 4,000 4,000,000
Illinois Health Facilities
Authority (Revolving Fund
Pooled Financing) Series 1985F
DN (Swiss Bank LOC) (A-1+,
VMIG-1)
3.60%(1)............ 12/07/95 4,400 4,400,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C>
ILLINOIS (CONTINUED)
Illinois Health Facilities
Authority (University of
Chicago Hospital Project)
Series 1994C DN (MBIA
Insurance) (A-1+, VMIG-1)
3.70%(1)............ 12/07/95 $ 5,300 $ 5,300,000
Illinois Revenue Anticipation
Certificates (SP-1+, MIG-1)
4.50%............... 05/10/96 20,000 20,055,061
------------
61,255,061
------------
INDIANA -- 0.96%
Indiana Employment Commission
IDA (Miles Laboratories) DN
(Barclays Bank LOC) (A-1+)
3.75%(1)............ 12/01/95 7,000 7,000,000
------------
IOWA -- 1.66%
Louisa County PCRB (Iowa-
Illinois Gas & Electric
Company Project) Series 1986A
DN (Rabo Bank Nederland LOC)
(A-1+, VMIG-1)
3.65%(1)............ 12/01/95 5,800 5,800,000
Polk County (Iowa Hospital
Equipment Authority) DN (MBIA
Insurance) (A-1+, VMIG-1)
3.60%(1)............ 12/07/95 6,250 6,250,000
------------
12,050,000
------------
LOUISIANA -- 0.52%
Plaquemines Port, Harbor and
Terminal District Marine
Terminal Facilities Revenue
Refunding Bonds (Morgan
Guaranty LOC) (P-1)
3.75%............... 12/07/95 3,750 3,750,000
------------
MAINE -- 0.17%
Maine Health and Higher
Educational Facilities
Authority Hospital Revenue
Bonds (VHA of New England
Capital Asset Financing
Program) Series 1985C DN
(AMBAC Insurance) (A-1)
3.65%(1)............ 12/07/95 1,200 1,200,000
------------
</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>
MARYLAND -- 1.38%
Maryland State Economic
Development Corporation
Revenue Bonds (Pooled
Financing Maryland Muni Bond
Fund) DN (Nations Bank N.A.
LOC) (A-1, VMIG-1)
3.75%(1)............ 12/07/95 $10,000 $ 10,000,000
------------
MICHIGAN -- 3.03%
Michigan Underground Storage
Tank Financial Assurance
Authority RB Series 1995 DN
(Canadian Imperial Bank LOC)
(A-1+, VMIG-1)
3.60%(1)............ 12/07/95 22,000 22,000,000
------------
MINNESOTA -- 0.83%
City of Becker PCRB (Northern
States Power Company --
Sherbourne County) Series A
(A-1+, VMIG-1)
3.80%............... 01/25/96 6,000 6,000,000
------------
MISSOURI -- 1.65%
Missouri Health & Educational
Facilities Authority
(Washington University) Series
B DN (A-1+)
3.55%(1)............ 12/07/95 1,800 1,800,000
Missouri Health & Educational
Facilities Authority Refunding
RB (Sisters of Mercy Health
System) DN (A-1+, VMIG-1)
3.55%(1)............ 12/07/95 8,000 8,000,000
Missouri Health & Educational
Facilities Authority Refunding
RB (Sisters of Mercy Health
System) Series 1992B DN (A-1+,
VMIG-1)
3.55%(1)............ 12/07/95 2,200 2,200,000
------------
12,000,000
------------
MONTANA -- 0.74%
City of Forsyth PCRB (Portland
General Electric Company
Project) Series 1983B DN
(Swiss Bank LOC) (A-1+,
VMIG-1)
3.65%(1)............ 12/07/95 5,400 5,400,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------- -------- ------- -----------
<S> <C> <C> <C>
NEBRASKA -- 1.46%
Nebraska Higher Education
Student Loan Program RB Series
1985E DN (MBIA Insurance)
(VMIG-1)
3.65%(1)............ 12/07/95 $10,600 $ 10,600,000
------------
NEW HAMPSHIRE -- 0.91%
New Hampshire Higher Education
and Health Facilities
Authority (VHA of New England)
DN (AMBAC Insurance) (A-1,
VMIG-1)
3.65%(1)............ 12/07/95 6,600 6,600,000
------------
NEW JERSEY -- 1.11%
Salem County Industrial PCR
Financing Authority (E.I.
DuPont) Series A DN (Lloyds
Bank Ltd LOC) (A-1+, P-1)
3.85%(1)............ 12/07/95 8,100 8,100,000
------------
NEW YORK -- 18.15%
Dormitory Authority of the State
of New York (Columbia
University) Tender Option
Bonds DN (Morgan Guaranty LOC)
(VMIG-1)
3.65%(1)............ 12/07/95 6,500 6,500,000
Dormitory Authority of the State
of New York Revenue Bonds
(Cornell University) Series
1990B DN (VMIG-1)
3.70%(1)............ 12/01/95 2,300 2,300,000
Metropolitan Transportation
Authority Commuter Facility
Series 1991 DN (Morgan
Guaranty LOC) (A-1+, VMIG-1)
3.55%(1)............ 12/07/95 2,600 2,600,000
New York City GO Series 1995 F-7
DN (Union Bank of Switzerland
LOC) (VMIG-1)
3.70%(1)............ 12/07/95 1,500 1,500,000
New York City Indexed Trust
Receipts Series 1995-1 RAN DN
(Morgan Guaranty LOC) (SP-1,
VMIG-1)
4.10%(1)............ 12/01/95 45,550 45,550,000
New York City RAN Series B
(VMIG-1)
4.75%............... 06/28/96 11,000 11,046,876
</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>
NEW YORK (CONTINUED)
New York City TAN (SP-1+, MIG-1)
4.50%............... 02/15/96 $ 4,300 $ 4,307,359
New York Local Government
Assistance Corporation Series
1995E DN (Canadian Imperial
Bank LOC) (A-1+, VMIG-1)
3.55%(1)............ 12/07/95 27,200 27,200,000
New York State Energy Research &
Development Authority PCRB
(New York State Electric & Gas
Corporation Project) Series
1994D DN (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
3.70%(1)............ 12/01/95 1,700 1,700,000
New York State Energy Research &
Development Authority PCRB
(Rochester Gas & Electric
Project) Series 1984 (Bank of
New York LOC) (VMIG-1)
3.65%(1)............ 12/01/95 3,500 3,500,000
New York State Energy Research &
Development Authority (Niagara
Mohawk) Series 1985B DN
(Westpac Banking Corp. LOC)
(P-1)
3.70%(1)............ 12/01/95 3,200 3,200,000
New York State Local Government
Assistance Corporation Series
1995G DN (National Westminster
LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/07/95 16,500 16,500,000
Port Authority of New York and
New Jersey Versatile Structure
Obligations Series 2 DN
(Morgan Guaranty LOC) (A-1+,
VMIG-1)
3.35%(1)............ 12/01/95 3,400 3,400,000
Triborough Bridge and Tunnel
Authority DN (FGIC Insurance)
(A-1+, VMIG-1)
3.50%(1)............ 12/07/95 2,600 2,600,000
------------
131,904,235
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C>
NORTH CAROLINA -- 3.18%
North Carolina Medical Care
(Baptist Hospital) Series
1992B DN (Wachovia LOC) (A-1+,
VMIG-1)
3.70%(1)............ 12/07/95 $ 2,400 $ 2,400,000
North Carolina Medical Care
Commission Hospital Revenue
Bonds (Park Ridge Hospital
Project) Series 1988 DN
(Nations Bank of Florida LOC)
(A-1+, VMIG-1)
3.70%(1)............ 12/07/95 6,000 6,000,000
North Carolina Medical Care
Commission Hospital Revenue
Bonds (Pooled Financing
Project) Series 1986A-2 (MBIA
Insurance) (VMIG-1)
3.80%(1)............ 12/07/95 2,100 2,100,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) DN (Wachovia LOC)
(A-1+, VMIG-1)
3.70%(1)............ 12/07/95 2,600 2,600,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) Series 1993 DN
(Wachovia LOC) (A-1+, VMIG-1)
3.70%(1)............ 12/07/95 4,100 4,100,000
Person County Industrial
Facilities Authority PCRB
(Carolina Power & Light
Company) Series 1992A DN (A-1,
VMIG-1)
3.65%(1)............ 12/07/95 1,200 1,200,000
University of North Carolina
Chapel Hill School of Medicine
Ambulatory Care Clinic Series
1990 DN (A-1+, VMIG-1)
3.65%(1)............ 12/07/95 4,700 4,700,000
------------
23,100,000
------------
OHIO -- 0.41%
Ohio Water Development Authority
PCRB (Timken Company) DN
(Credit Suisse LOC) (A-1+,
VMIG-1)
3.65%(1)............ 12/07/95 3,000 3,000,000
------------
</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>
OKLAHOMA -- 1.13%
Muskogee Industrial Trust PCRB
(Oklahoma Gas & Electric
Company Project) Series 1995A
DN (A-1+, VMIG-1)
3.70%(1)............ 12/07/95 $ 8,200 $ 8,200,000
------------
OREGON -- 1.20%
City of Klamath Falls Electric
Revenue Bonds (Salt Caves
Hydroelectric Project) Series
E (Escrowed IN US Treasuries)
(SP-1+, VMIG-1)
4.40%............... 05/01/96 8,755 8,755,000
------------
PENNSYLVANIA -- 1.57%
Emmaus General Authority (Pooled
Loan) Series E-9 DN (Goldman
Sachs Guaranteed Investment
Contract) (VMIG-1)
3.80%(1)............ 12/07/95 9,800 9,800,000
Sayre County Hospital Revenue
Health Care Facilities
Authority Series 1985J DN
(AMBAC Insurance) (A-1,
VMIG-1)
3.65%(1)............ 12/07/95 1,600 1,600,000
------------
11,400,000
------------
SOUTH CAROLINA -- 0.89%
South Carolina Economic
Development Authority Hospital
Facilities RB (Tuomey Regional
Medical Center) Series B DN
(Wachovia LOC) (A-1+, VMIG-1)
3.70%(1)............ 12/07/95 6,500 6,500,000
------------
TENNESSEE -- 5.84%
Knox County Health, Educational
& Housing Facilities Authority
(Mercy Health Care) Series B
DN (MBIA Insurance) (A-1+,
VMIG-1)
3.55%(1)............ 12/07/95 1,865 1,865,000
Knox County IDA (Weisgarber
Partners) DN (FGIC Insurance)
(A-1+, VMIG-1)
3.90%(1)............ 12/15/95 1,000 1,000,000
Memphis GO Series 1995A DN
(A-1+, VMIG-1)
3.65%(1)............ 12/07/95 10,900 10,900,000
Memphis GO Series 1995A DN
(A-1+, VMIG-1)
3.65%(1)............ 12/07/95 6,000 6,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------- -------- ------- -----------
<S> <C> <C>
TENNESSEE (CONTINUED)
Metropolitan Nashville Airport
Improvement Bonds DN (FGIC
Insurance) (A-1+, VMIG-1)
3.65%(1)............ 12/07/95 $13,600 $ 13,600,000
Metropolitan Nashville Airport
Improvement Bonds DN (FGIC
Insurance) (A-1+, VMIG-1)
3.65%(1)............ 12/07/95 3,700 3,700,000
Montgomery County Public
Building Authority Pooled
Financing Government
Obligation Revenue Bonds
(Nations Bank N.A. LOC) (A-1,
VMIG-1)
3.90%(1)............ 12/07/95 5,000 5,000,000
Tennessee GO BAN Series A DN
(SP-1+, VMIG-1)
3.65%(1)............ 12/07/95 400 400,000
------------
42,465,000
------------
TEXAS -- 13.08%
City of Houston Water and Sewer
System Series A TECP (A-1+,
P-1)
3.85%............... 01/23/96 7,800 7,800,000
3.90%............... 02/14/96 13,000 13,000,000
Harris County Health Facilities
Development Corporation (Texas
Children's Hospital) Series C
DN (VMIG-1)
3.65%(1)............ 12/07/95 3,800 3,800,000
Harris County Health Facilities
Development Corporation
Revenue Bonds (Methodist
Hospital) DN (A-1+, VMIG-1)
3.80%(1)............ 12/01/95 7,000 7,000,000
Harris County Toll Road Series G
DN (A-1+, VMIG-1)
3.65%(1)............ 12/07/95 20,800 20,800,000
Hockley County Industrial
Development Corporation PCRB
(Amoco) (A-1+)
3.65%............... 03/01/96 8,660 8,656,796
Lower Colorado River Authority
TECP (Morgan Guaranty LOC)
(A-1+, P-1)
3.85%............... 12/14/95 7,000 7,000,000
Milam County Industrial
Development Corporation PCRB
DN (Credit Suisse LOC)
(VMIG-1)
3.65%(1)............ 12/07/95 5,000 5,000,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
8
<PAGE> 9
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------- -------- ------- -----------
<S> <C> <C>
TEXAS (CONTINUED)
Nueces County Health Facilities
Authority (Driscoll Children's
Hospital) DN (Barclays Bank
LOC) (VMIG-1)
3.65%(1)............ 12/07/95 $ 2,750 $ 2,750,000
Red River Authority (Southwest
Public Service Company
Project) DN (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
3.60%(1)............ 12/07/95 5,900 5,900,000
Texas Public Finance Authority
GO TECP (A-1+, P-1)
3.85%............... 01/23/96 4,900 4,900,000
Texas TRAN Series A (SP-1+,
MIG-1)
4.75%............... 08/30/96 8,400 8,457,952
------------
95,064,748
------------
UTAH -- 3.79%
Intermountain Power Agency Power
Supply Revenue and Refunding
Bonds (Swiss Bank LOC) (A-1+,
VMIG-1)
3.78%............... 02/26/96 7,550 7,550,000
3.80%............... 03/07/96 9,950 9,950,000
Utah Housing Finance Authority
(Single Family Mortgage)
Series 1993D DN (Goldman Sachs
Guaranteed Investment Contract
LOC) (VMIG-1)
3.75%(1)............ 12/07/95 10,065 10,065,000
------------
27,565,000
------------
VERMONT -- 0.25%
Vermont Educational and Health
Buildings Finance Agency
Hospital RB (VHA of
New England Capital Asset
Financing Program)
Series 1985C DN
(AMBAC Insurance) (A-1)
3.65%(1)............ 12/07/95 1,800 1,800,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C>
VIRGINIA -- 0.37%
Capital Region Airport
Commission (Richmond
International Airport
Projects) Series 1995B DN
(AMBAC Insurance) (VMIG-1)
3.55%(1)............ 12/07/95 $ 1,700 $ 1,700,000
City of Lynchburg Hospital
Revenue Bonds (VHA Mid-
Atlantic States Capital Asset
Financing Program) Series E DN
(AMBAC Insurance) (VMIG-1)
3.65%(1)............ 12/07/95 400 400,000
Lynchburg IDA (VHA Mid-Atlantic
States Capital
Asset Financing Program)
Series 1985C DN (AMBAC
Insurance)
3.65%(1)............ 12/07/95 600 600,000
------------
2,700,000
------------
WEST VIRGINIA -- 1.22%
Marshall County PCRB (PPG
Industries Project) DN (A-1,
VMIG-1)
3.90%(1)............ 12/07/95 3,000 3,000,000
West Virginia Hospital Finance
Authority (VHA Mid-Atlantic
States Incorporated Capital
Asset Financing Program)
Series 1985B DN (AMBAC
Insurance) (A-1)
3.65%(1)............ 12/07/95 3,000 3,000,000
West Virginia Hospital Finance
Authority (VHA Mid-Atlantic
States Incorporated Capital
Asset Financing Program)
Series 1985E DN (AMBAC
Insurance) (A-1)
3.65%(1)............ 12/07/95 2,890 2,890,000
------------
8,890,000
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
9
<PAGE> 10
MUNIFUND PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C>
WISCONSIN -- 8.23%
City of Oak Creek PCRB
(Wisconsin Electric Power) DN
(VMIG-1)
3.75%(1)............ 12/07/95 $ 800 $ 800,000
Pleasant Prairie PCRB (Wisconsin
Power Company) Series B DN
(A-1+, VMIG-1)
3.75%(1)............ 12/07/95 10,000 10,000,000
Wisconsin Health & Education
Facilities Authority
(Daughters of Charity Health
Center) DN (VMIG-1)
3.70%(1)............ 12/07/95 20,440 20,440,000
Wisconsin Health & Education
Facilities Authority Revenue
Bond (Daughters of Charity St.
Mary's Hospital) DN (VMIG-1)
3.70%(1)............ 12/07/95 18,520 18,520,000
Wisconsin State Operating Notes
(SP-1+, MIG-1)
4.50%............... 06/17/96 10,000 10,043,527
------------
59,803,527
------------
WYOMING -- 0.25%
Lincoln County PCR (Exxon
Corporation) Series A DN
(A-1+, P-1)
3.70%(1)............ 12/01/95 1,800 1,800,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $725,503,489*)............ 99.82% $725,503,489
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.18 1,288,682
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 720,445,412
MuniFund shares and 6,474,399
MuniFund dollar shares
outstanding).................... 100.00% $726,792,171
------- ------------
------- ------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($726,792,171 / 726,919,811)................ $1.00
-----
-----
</TABLE>
- ---------------
* Aggregate cost for federal income tax purposes is substantially the same.
(1) Variable rate
---------------------------------------------------------
MUNIFUND PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C>
1- 30 days $546,240,000 75.3%
31- 60 days 24,200,000 3.3
61- 90 days 56,350,000 7.8
91-120 days 18,610,000 2.6
over 120 days 79,815,000 11.0
</TABLE>
Average Weighted Maturity -- 37 days
---------------------------------------------------------
See accompanying notes to financial statements.
10
<PAGE> 11
MUNICASH PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1995
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C>
ARIZONA -- 1.18%
Cochise County Pollution Control
Solid Waste Disposal
Facilities (National Rural
Utilities LOC) (A-1+)
3.90%............... 03/01/96 $ 5,000 $ 5,000,000
------------
CALIFORNIA -- 4.02%
Los Angeles County TRAN (Bank of
America LOC) (SP-1, MIG-1)
4.50%............... 07/01/96 8,000 8,021,664
Southeast Resource Recovery
Facility Authority Lease
Revenue Refunding Bonds Series
A DN (Industrial Bank of Japan
LOC) (A-1, VMIG-1)
3.95%(1)............ 12/07/95 9,000 9,000,000
------------
17,021,664
------------
COLORADO -- 4.74%
City and County of Denver
Airport System Subordinated
Revenue Bonds (Sanwa Bank LOC)
(A-1, VMIG-1)
4.05%............... 12/01/95 10,000 10,000,000
4.10%............... 12/01/95 3,000 3,000,000
4.15%............... 01/03/96 4,070 4,070,000
4.20%............... 01/04/96 3,000 3,000,000
------------
20,070,000
------------
FLORIDA -- 2.95%
Greater Orlando Aviation Airport
Authority Series B (Morgan
Guaranty LOC) (A-1, P-1)
3.80%............... 02/29/96 4,500 4,500,000
Lee County Hospital Board of
Directors Hospital Revenue
Bonds (Sun Bank LOC)
(A-1, VMIG-1)
4.00%............... 01/11/96 8,000 8,000,000
------------
12,500,000
------------
GEORGIA -- 3.36%
Carrollton County Industrial
Improvement Revenue Bonds
(Flowers Baking Villa Company)
AMT (Trust Company Bank LOC)
3.90%(1)............ 12/07/95 6,000 6,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C>
GEORGIA (CONTINUED)
Clayton County IDRB (MCIlrath
Corporation Project) DN
(ABN-AMRO Bank N.V. LOC) (P-1)
4.00%(1)............ 12/07/95 $ 4,700 $ 4,700,000
Decatur County & Bainbridge IDRB
(Thomas & Betts Corporation
Project) AMT (Wachovia LOC)
3.90%(1)............ 12/07/95 3,500 3,500,000
------------
14,200,000
------------
ILLINOIS -- 13.72%
Illinois Development Finance
Authority (Azteca Foods
Project, Incorporated) AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+)
4.00%(1)............ 12/07/95 4,600 4,600,000
Illinois Development Finance
Authority IDRB (Henry Valve
Company Project) Series 1995
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
4.00%(1)............ 12/07/95 4,780 4,780,000
Illinois Development Finance
Authority IDRB (Royal
Continental Box Project)
Series B AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.00%(1)............ 12/07/95 3,850 3,850,000
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) AMT
(Mitsubishi Bank LOC) (A-1+)
4.00%(1)............ 12/07/95 6,800 6,800,000
Illinois Development Finance
Authority Residential Rental
Revenue Bonds (F.C. Harris
Pavilion Project) Series 1994
AMT (Federal National Mortgage
Association LOC) (A-1+, P-1)
3.75%(1)............ 12/07/95 5,300 5,300,000
Illinois Health Facilities
Authority (Evanston Hospital
Corporation Project) Series A
RB (VMIG-1)
4.00%............... 01/31/96 5,000 5,000,000
</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>
ILLINOIS (CONTINUED)
Illinois Health Facilities
Authority (Evanston Hospital
Corporation Project)
Series 1985 RB (VMIG-1)
4.65%............... 02/15/96 $ 3,000 $ 3,000,000
Illinois Power Development
Finance Authority PCRB Series
C AMT (Mitsubishi Bank LOC)
(A-1+, VMIG-1)
4.00%(1)............ 12/07/95 5,800 5,800,000
Lake County IDRB (Northpoint
Project) AMT (Bank One
Columbus LOC) (A-1+)
3.85%(1)............ 12/07/95 6,000 6,000,000
Naperville Economic Development
Authority (Independence
Village Associates) DN
(National City Bank LOC)
3.95%(1)............ 12/07/95 2,530 2,530,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1992 AMT
(Mellon LOC) (VMIG-1)
4.00%(1)............ 12/07/95 3,400 3,400,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) AMT (Mellon LOC)
(VMIG-1)
4.00%(1)............ 12/07/95 4,000 4,000,000
Village of North Aurora IDRB
(Oberweis Dairy Incorporated
Project) Series 1995 AMT
(ABN-AMRO Bank N.V. LOC) (A-1,
VMIG-1)
4.00%(1)............ 12/07/95 3,000 3,000,000
------------
58,060,000
------------
INDIANA -- 0.95%
Jasper County Economic
Development Revenue Bonds
(Wabash Valley Produce
Project) AMT (Bank One
Columbus LOC)
3.90%(1)............ 12/07/95 2,000 2,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------- -------- ------- -----------
<S> <C> <C>
INDIANA (CONTINUED)
La Porte County Economic
Development Revenue Bonds
(Pedcor Investments --
Woodland Project) AMT (Federal
Home Loan Bank LOC) (VMIG-1)
3.85%(1)............ 12/07/95 $ 2,000 $ 2,000,000
------------
4,000,000
------------
IOWA -- 0.59%
Iowa Higher Education Loan
Authority Private College
Facilities Revenue Bonds
Series 1985 DN (Dai-Ichi
Kangyo LOC) (A-1, VMIG-1)
3.75%(1)............ 12/07/95 2,500 2,500,000
------------
KENTUCKY -- 2.37%
Maysville Solid Waste Disposal
Facilities Revenue Bonds
(A-1, P-1)
4.00%............... 01/11/96 2,000 2,000,000
4.00%............... 02/16/96 7,035 7,035,000
Perry County Health Care System
Revenue Bonds (Appalachian
Regional Hospitals,
Incorporated Project) Series
1984 AMT (Societe Generale
LOC) (VMIG-1)
3.90%(1)............ 12/07/95 1,000 1,000,000
------------
10,035,000
------------
LOUISIANA -- 4.23%
East Baton Rouge Mortgage
Finance Authority Single
Family Mortgage Purchase Bonds
(Federal National Mortgage
Association LOC) (MIG-1)
3.78%............... 02/29/96 2,910 2,910,000
Lincoln Parish Facilities RB
(Willamette Industries
Project) AMT (A-1)
4.00%(1)............ 12/07/95 15,000 15,000,000
------------
17,910,000
------------
MARYLAND -- 1.42%
Maryland Health & Higher
Educational Facilities
Authority (Johns Hopkins
Hospital) DN
4.95%(1)............ 12/07/95 4,000 4,000,000
</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>
MARYLAND (CONTINUED)
Prince George County Sports
Arena Revenue Bonds (Capital
Centre Facility) DN (Nations
Bank N.A. LOC) (A-1)
3.75%(1)............ 12/07/95 $ 2,000 $ 2,000,000
------------
6,000,000
------------
MASSACHUSETTS -- 2.36%
Massachusetts Health &
Educational Facilities
Authority (Boston University
Project) Series H (Landesbank
LOC) (A-1+, VMIG-1)
3.85%............... 02/07/96 10,000 10,000,000
------------
MICHIGAN -- 1.61%
Michigan Hospital Finance
Authority (Hospital Equipment
Loan Program) Series A DN
(VMIG-1)
3.80%(1)............ 12/07/95 700 700,000
Michigan State Strategic Fund
Limited Obligation Revenue
Bonds (Rochester Gear
Incorporated Project) AMT
(Comerica Bank Detroit
LOC) (A-1)
3.90%(1)............ 12/07/95 6,100 6,100,000
------------
6,800,000
------------
NEW HAMPSHIRE -- 5.97%
New Hampshire Business Finance
Authority PCRB
(New England Power Company
Project) Series A (A-1+, P-1)
4.00%............... 01/26/96 10,250 10,250,000
New Hampshire State Development
Authority Solid Waste Disposal
Facility Revenue Bonds (United
Illuminating Company Project)
Series A (Barclays Bank
LOC) (VMIG-1)
3.85%............... 03/01/96 10,000 10,000,000
New Hampshire State Housing
Finance Authority Multifamily
Revenue Bonds (Countryside
L.P. Project) AMT (General
Electric Capital Corp LOC)
(VMIG-1)
3.75%(1)............ 12/07/95 5,000 5,000,000
------------
25,250,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------- -------- ------- -----------
<S> <C> <C>
NEW JERSEY -- 3.67%
Berkeley Township GO
4.625%.............. 11/15/96 $ 215 $ 216,543
Cumberland County BAN
4.00%............... 05/17/96 750 751,018
New Jersey Economic Development
Authority RB (Keystone
Project) (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
3.85%............... 01/10/96 1,640 1,640,000
New Jersey Economic Development
Authority RB (New Jersey
Natural Gas Company) Series
1995A DN (AMBAC Insurance)
(A-1+, VMIG-1)
3.40%(1)............ 12/01/95 1,000 1,000,000
New Jersey GO Custodial Receipts
Series D DN
(A-1+, VMIG-1)
3.65%(1)............ 12/07/95 3,000 3,000,000
New Jersey State Economic
Development Authority (East
Meadow Corporation Project) DN
(Sanwa Bank LOC) (P-1)
3.85%(1)............ 12/07/95 4,270 4,270,000
New Jersey State Economic
Development Authority (The Dow
Chemical Company Project)
Series 1984A
DN (P-1)
3.80%(1)............ 12/01/95 1,200 1,200,000
New Jersey State Economic
Development Authority PCRB
(MBIA Insurance)
(A-1+, VMIG-1)
3.625%.............. 01/11/96 750 750,000
</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>
NEW JERSEY (CONTINUED)
New Jersey State Economic
Development Authority Revenue
Bonds (Hillcreast Health
Services Systems Project) DN
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
3.90%(1)............ 12/07/95 $ 1,000 $ 1,000,000
New Jersey Turnpike Authority
Revenue Bond Series 1991D DN
(Societe Generale LOC) (A-1+,
VMIG-1)
3.35%(1)............ 12/07/95 1,700 1,700,000
------------
15,527,561
------------
NEW MEXICO -- 0.71%
New Mexico Mortgage Finance
Authority Single Family
Mortgage Revenue Bonds Series
H (Societe Generale LOC)
(A-1+)
3.85%............... 08/28/96 3,000 3,000,000
------------
NEW YORK -- 14.64%
New York City GO Series 1995F-3
DN (Industrial Bank of Japan
LOC) (A-1, VMIG-1)
4.15%(1)............ 12/07/95 10,100 10,100,000
New York City Indexed Trust
Receipts RAN Series 1995-1 DN
(Morgan Guaranty LOC) (SP-1,
MIG-1)
4.10%(1)............ 12/01/95 45,600 45,600,000
New York City RAN Series B
(Morgan Guaranty LOC) (SP-1,
MIG-1)
4.75%............... 06/28/96 4,000 4,017,870
Port Authority of New York and
New Jersey (Bank of Nova
Scotia LOC)
3.70%............... 01/12/96 1,010 1,010,000
Port Authority of New York and
New Jersey Special Obligation
Revenue Bonds Series 1 DN
(A-1, VMIG-1)
3.65%(1)............ 12/01/95 1,200 1,200,000
------------
61,927,870
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ---------------------- -------- ------- -----------
<S> <C> <C>
NORTH CAROLINA -- 2.20%
North Carolina Educational
Facilities Financing Authority
(Duke University Hospital
Project) Series B DN (A-1+,
VMIG-1)
3.70%(1)............ 12/07/95 $ 2,100 $ 2,100,000
Union County IDA PCRB (Square D
Company Project) Series 1988
DN (Morgan Guaranty LOC)
(VMIG-1)
3.75%(1)............ 12/07/95 1,500 1,500,000
Wake County IDA PCRB (Carolina
Power & Light) Series 1985C DN
(Sumitomo Bank LOC) (A-1+,
VMIG-1)
4.15%(1)............ 12/07/95 5,700 5,700,000
------------
9,300,000
------------
OHIO -- 3.10%
Cuyahoga County Hospital RB (St.
Lukes Hospital Project) DN
(FNB Chicago LOC) (VMIG-1)
3.75%(1)............ 12/07/95 2,500 2,500,000
Franklin County Hospital RB
(Holy Cross Health System
Corporation) Series 1995 DN
(A-1+, VMIG-1)
3.70%(1)............ 12/07/95 3,000 3,000,000
Ohio Air Quality Development
Authority PCRB (Timkin Company
Project) Revenue Refunding
Series 1992 DN (Credit Suisse
LOC) (A-1+, P-1)
3.65%(1)............ 12/07/95 2,700 2,700,000
Ohio State Water Authority Solid
Waste Disposal Revenue Bonds
(American Steel & Wire
Corporation) AMT (Bank of
America LOC) (A-1)
4.10%(1)............ 12/07/95 2,900 2,900,000
Stark County BAN Series 2
4.18%............... 06/20/96 2,000 2,002,442
------------
13,102,442
------------
</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>
OREGON -- 1.18%
City of Klamath Falls Electric
Revenue Bonds (Salt Caves
Hydroelectric Project) Series
E (Escrowed in US Treasuries
LOC) (SP-1+, VMIG-1)
4.40%............... 05/01/96 $ 5,000 $ 5,000,000
------------
PENNSYLVANIA -- 1.23%
Emmaus General Authority (Pooled
Loan) Series C-10 (Fuji Bank
LOC) (A-1)
4.15%(1)............ 12/07/95 5,200 5,200,000
------------
PUERTO RICO -- 0.71%
Governmental Development Bank
for Puerto Rico TECP (A-1+)
3.80%............... 12/04/95 1,000 1,000,000
3.75%............... 01/22/96 500 500,000
Puerto Rico Industrial Medical
Higher Education and
Environmental Pollution
Control Facilities (G. Mendez
Educational Foundation
Project) DN (Bank of Tokyo
LOC) (A-1+)
3.65%(1)............ 12/07/95 1,500 1,500,000
------------
3,000,000
------------
RHODE ISLAND -- 0.47%
Rhode Island Housing & Mortgage
Finance Corporation Home
Ownership Opportunity Bonds
Series 17-C (A-1+, VMIG-1)
4.40%............... 02/01/96 2,000 2,000,000
------------
SOUTH CAROLINA -- 3.03%
Marlboro County Solid Waste
Disposal Facilities RB
(Willamette Industries
Incorporated Project) AMT
(A-1)
4.20%(1)............ 12/07/95 12,800 12,800,000
------------
SOUTH DAKOTA -- 0.24%
South Dakota Housing Development
Authority Homeownership
Mortgage Series H (A-1+,
VMIG-1)
4.95%............... 12/13/95 1,000 1,000,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C>
TENNESSEE -- 1.77%
City of Henderson IDRB (Premier
Manufacturing Corporation
Project) AMT (National City
Bank LOC)
4.05%(1)............ 12/07/95 $ 5,500 $ 5,500,000
Union City IDRB (Kohler Company
Project) AMT (Wachovia LOC)
3.90%(1)............ 12/07/95 2,000 2,000,000
------------
7,500,000
------------
TEXAS -- 9.16%
Angelina and Neches River
Authority Solid Waste Disposal
Revenue Bonds AMT (A-1, P-1)
3.95%............... 12/08/95 5,000 5,000,000
4.00%............... 01/16/96 8,050 8,050,000
3.90%............... 01/26/96 12,450 12,450,000
City of Haltom IDRB (Molded
Products Company Project)
Series 1995 AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.00%(1)............ 12/07/95 3,750 3,750,000
Montgomery County IDRB (Sawyer
Research Products
Incorporated) AMT (Societe
Generale LOC)
4.05%(1)............ 12/07/95 2,000 2,000,000
San Antonio River IDRB (Colin
Medical Instruments Project)
AMT (Sanwa Bank LOC) (A-1+)
4.05%(1)............ 12/07/95 3,500 3,500,000
Texas State VHA
(A-1+, VMIG-1)
3.90%............... 12/01/96 4,000 4,000,000
------------
38,750,000
------------
VIRGINIA -- 0.26%
Alexandria IDA Resource Recovery
Bonds (Arlington
Waste-To-Energy Facilities)
Series 1986A AMT (Swiss Bank
LOC) (VMIG-1)
4.00%(1)............ 12/01/95 1,100 1,100,000
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
15
<PAGE> 16
MUNICASH PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C>
WASHINGTON -- 1.84%
Washington State Student Loan
Finance Association Guaranteed
Student Loan Program (Third
Program) Series 1987B AMT
(VMIG-1)
4.25%(1)............ 12/07/95 $ 4,200 $ 4,200,000
Yakima County Public Corporation
(Printing Press Project) AMT
(Bank of America LOC)
4.05%(1)............ 12/07/95 3,600 3,600,000
------------
7,800,000
------------
WEST VIRGINIA -- 0.83%
Pleasants County PCRB (American
Cyanamid Company Project) DN
(P-1)
3.90%(1)............ 12/07/95 3,500 3,500,000
------------
WISCONSIN -- 5.30%
City of Eau Claire Solid Waste
Disposal (Pope & Talbot
Incorporated Project) AMT
(Wachovia LOC)
3.90%(1)............ 12/07/95 8,000 8,000,000
City of Janesville IDRB (Freedom
Plastics, Incorporated
Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.00%(1)............ 12/07/95 3,000 3,000,000
City of Mequon IDRB (Johnson
Level Company Project) AMT
(Bank One Columbus LOC)
3.90%(1)............ 12/07/95 2,500 2,500,000
Racine School District TRAN
(SP-1+)
4.50%............... 08/23/96 8,900 8,927,937
------------
22,427,937
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $422,282,474*)............ 99.81% $422,282,474
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.19 783,176
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 321,778,677
MuniCash shares and 101,458,133
MuniCash Dollar shares
outstanding).................... 100.00% $423,065,650
------- ------------
------- ------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE
PER SHARE
($423,065,650 / 423,236,810).............. $1.00
-----
-----
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same.
(1) Variable rate.
- ---------------------------------------------------------
</TABLE>
MUNICASH PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C> <C>
1- 30 days $285,180,000 67.5%
31- 60 days 51,720,000 12.3
61- 90 days 27,035,000 6.4
91-120 days 22,410,000 5.3
Over 120 days 35,865,000 8.5
</TABLE>
Average Weighted Maturity -- 40 Days
- ---------------------------------------------------------
See accompanying notes to financial statements.
16
<PAGE> 17
INTERMEDIATE MUNICIPAL PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1995
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------- --------- ------- ----------
<S> <C> <C>
GEORGIA -- 5.48%
Georgia GO (Aaa)
6.50%.................. 12/01/03 $ 300 $ 343,500
----------
MARYLAND -- 17.67%
Howard County Public Improvement
Series A Prerefunded 05/15/00 @
100 (Aaa)
6.90%.................. 05/15/02 1,000 1,106,250
----------
NEW JERSEY -- 13.92%
New Jersey State GO (Aa1)
6.00%.................. 08/01/03 500 543,750
New Jersey Transportation Authority
Series B (MBIA Insurance) (Aaa)
6.00%.................. 06/15/05 300 327,750
----------
871,500
----------
NEW YORK -- 1.60%
New York City GO (Union Bank of
Switzerland LOC) (A-1+, VMIG-1)
4.00%(1)............... 12/01/95 100 100,000
----------
OHIO -- 18.75%
Franklin County GO (Escrowed to
Maturity) (Aaa)
9.00%.................. 12/01/99 1,000 1,173,750
----------
SOUTH CAROLINA -- 8.98%
South Carolina Public Service
Authority (Santee Cooper Project)
(FGIC Insurance) (Aaa)
6.50%.................. 01/01/04 500 562,500
----------
VIRGINIA -- 5.25%
Virginia Public School Authority
(Aa)
6.00%.................. 08/01/04 300 328,500
----------
VIRGIN ISLANDS -- 18.25%
Virgin Islands Public Finance
Authority Prerefunded 10/01/00 @
101.00 (AAA)
7.25%.................. 10/01/07 1,000 1,142,500
----------
WASHINGTON -- 7.63%
City of Spokane GO (Aa)
9.125%................. 01/01/99 420 477,750
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
----------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $5,852,108*).............. 97.53% $6,106,250
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 2.47 154,953
------- ----------
NET ASSETS (Equivalent to $11.11
per share based on
560,642 Intermediate Municipal
shares and 2,964 Intermediate
Municipal Dollar shares
outstanding).................... 100.00% $6,261,203
------- ----------
------- ----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE
PER SHARE ($6,261,203 / 563,606)........ $11.11
------
------
- ---------------
* Aggregate cost for federal income
tax purposes is substantially the
same. Net unrealized appreciation
for all securities is as follows:
Excess of value over tax cost............. $254,142
--------
--------
</TABLE>
(1) Variable rate
- ---------------------------------------------------------
INTERMEDIATE MUNICIPAL PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1995
Average Weighted Maturity -- 5.6 Years
- ---------------------------------------------------------
See accompanying notes to financial statements.
17
<PAGE> 18
INVESTMENT ABBREVIATIONS
AMT......................................................Alternative Minimum Tax
BAN.......................................................Bond Anticipation Note
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
TAN........................................................Tax Anticipation Note
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 November 30, 1995. The ratings have not been audited by the
Independent Auditors' and, therefore, are not covered by the Independent
Auditors' Report.
See accompanying notes to financial statements.
18
<PAGE> 19
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Operations
Year Ended November 30, 1995
<TABLE>
<CAPTION>
INTERMEDIATE
MUNIFUND MUNICASH MUNICIPAL FUND
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------------
<S> <C> <C> <C>
Investment income:
Interest income................................................................ $29,557,031 $15,054,724 $ 507,143
----------- ----------- ----------
Expenses:
Investment advisory fee........................................................ 1,341,162 656,226 19,242
Administration fee............................................................. 1,341,162 656,226 19,242
Trustees' fees and officer's salary............................................ 64,500 28,800 875
Transfer agent fee............................................................. 90,100 28,050 3,200
Custodian fee.................................................................. 152,606 87,844 3,457
Shareholder computer access program............................................ 8,250 1,400 --
Legal and audit................................................................ 66,900 33,750 785
Registration expenses.......................................................... 16,950 14,250 3,800
Printing....................................................................... 20,000 5,550 4,250
Service Organization fees -- Dollar shares..................................... 21,685 249,022 79
Other.......................................................................... 46,670 14,558 3,166
----------- ----------- ----------
3,169,985 1,775,676 58,096
Less fees waived............................................................... (1,081,512) (849,655) (19,532)
----------- ----------- ----------
Total expenses............................................................ 2,088,473 926,021 38,564
----------- ----------- ----------
Net investment income.......................................................... 27,468,558 14,128,703 468,579
----------- ----------- ----------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) from security transactions............................ 89,259 6,797 (26,498)
Increase in unrealized appreciation of investments............................. -- -- 815,852
Decrease in amortized market discount.......................................... (1,976) (289) (3,014)
----------- ----------- ----------
Net gain on investments........................................................ 87,283 6,508 786,340
----------- ----------- ----------
Net increase in net assets resulting from operations........................... $27,555,841 $14,135,211 $1,254,919
=========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 20
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO MUNICASH PORTFOLIO
---------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1995 1994 1995 1994
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income........................ $ 27,468,558 $ 21,869,044 $ 14,128,703 $ 10,821,527
Net gain (loss) on investments............... 87,283 (43,239) 6,508 (66,908)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations............................... 27,555,841 21,825,805 14,135,211 10,754,619
--------------- --------------- --------------- ---------------
Dividends to shareholders from net investment
income:
MuniFund shares.............................. (27,156,490) (21,736,127) -- --
MuniFund Dollar shares....................... (312,068) (132,917) -- --
MuniCash shares.............................. -- -- (10,572,440) (8,616,322)
MuniCash Dollar shares....................... -- -- (3,556,263) (2,205,205)
--------------- --------------- --------------- ---------------
Total dividends to shareholders............ (27,468,558) (21,869,044) (14,128,703) (10,821,527)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Proceeds from sale of shares................. 5,863,156,883 7,961,081,477 3,821,513,734 4,240,389,037
Value of shares issued in reinvestment of
dividends.................................. 3,190,495 2,864,739 5,499,849 3,531,580
Cost of shares repurchased................... (5,830,322,061) (8,299,755,163) (3,777,081,235) (4,538,433,575)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived
from capital share transactions.......... 36,025,317 (335,808,947) 49,932,348 (294,512,958)
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets.... 36,112,600 (335,852,186) 49,938,856 (294,579,866)
Net assets:
Beginning of period.............................. 690,679,571 1,026,531,757 373,126,794 667,706,660
--------------- --------------- --------------- ---------------
End of period.................................... $ 726,792,171 $ 690,679,571 $ 423,065,650 $ 373,126,794
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL FUND
PORTFOLIO
-------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1995 1994
------------ ------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income................................................. $ 468,579 $ 924,047
Net gain (loss) on investments........................................ 786,340 (1,435,579)
------------ -----------
Net increase (decrease) in net assets resulting from operations..... 1,254,919 (511,532)
------------ -----------
Dividends to shareholders from net investment income:
Intermediate Municipal shares......................................... (467,132) (922,721)
Intermediate Municipal Dollar shares.................................. (1,447) (1,326)
------------ -----------
Total dividends to shareholders................................... (468,579) (924,047)
------------ -----------
Capital share transactions:
Proceeds from sale of shares.......................................... 3,265,704 4,945,518
Value of shares issued in reinvestment of dividends................... 1,441 1,323
Cost of shares repurchased............................................ (14,328,104) (9,355,200)
------------ -----------
Decrease in net assets derived from capital share transactions.... (11,060,959) (4,408,359)
------------ -----------
Total decrease in net assets...................................... (10,274,619) (5,843,938)
Net assets:
Beginning of period................................................... 16,535,822 22,379,760
------------ -----------
End of period......................................................... $ 6,261,203 $ 16,535,822
============ ===========
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 22
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
MUNIFUND SHARES
---------------------------------------------------------
YEAR ENDED NOVEMBER 30,
---------------------------------------------------------
1995 1994 1993 1992 1991
------- ------- --------- --------- ---------
Net Asset Value, Beginning of Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<S> <C> <C> <C> <C> <C>
------- ------- --------- --------- ---------
Income From Investment Operations:
Net Investment Income................................. .0360 .0255 .0224 .0285 .0437
------- ------- --------- --------- ---------
Less Distributions:
Dividends to Shareholders from Net
Investment Income................................... (.0360) (.0255) (.0224) (.0285) (.0437)
------- ------- --------- --------- ---------
Net Asset Value, End of Period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ========= ========= =========
Total Return........................................... 3.66% 2.58% 2.27% 2.89% 4.46%
Ratios/Supplemental Data:
Net Assets, End of Period $(000)....................... 720,318 687,895 1,019,749 1,006,324 1,060,468
Ratio of Expenses to Average Daily Net Assets(1)....... .27% .26% .25% .30% .30%
Ratio of Net Investment Income to Average Daily Net
Assets................................................ 3.59% 2.53% 2.24% 2.86% 4.40%
<CAPTION>
MUNIFUND DOLLAR SHARES
---------------------------------------------------
YEAR ENDED NOVEMBER 30,
---------------------------------------------------
1995 1994 1993 1992 1991
---------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ----- ----- ----- ------
Income From Investment Operations:
Net Investment Income................................. .0335 .0230 .0199 .0260 .0412
----- ----- ----- ----- ------
Less Distributions:
Dividends to Shareholders from Net
Investment Income................................... (.0335) (.0230) (.0199) (.0260) (.0412)
----- ----- ----- ----- ------
Net Asset Value, End of Period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===== ===== ===== ===== ======
Total Return........................................... 3.41% 2.33% 2.02% 2.64% 4.21%
Ratios/Supplemental Data:
Net Assets, End of Period $(000)....................... 6,474 2,785 6,783 1,414 26,418
Ratio of Expenses to Average Daily Net Assets1......... .52% .51% .50% .55% .55%
Ratio of Net Investment Income to Average Daily Net
Assets................................................ 3.34% 2.28% 1.99% 2.61% 4.15%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 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 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.
22
<PAGE> 23
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
MUNICASH SHARES
---------------------------------------------------
YEAR ENDED NOVEMBER 30,
---------------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
Net Asset Value, Beginning of Period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<S> <C> <C> <C> <C> <C>
------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income....................................... .0382 .0266 .0235 .0300 .0453
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders from Net Investment Income........ (.0382) (.0266) (.0235) (.0300) (.0453)
------- ------- ------- ------- -------
Net Asset Value, End of Period............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return................................................. 3.89% 2.69% 2.38% 3.04% 4.62%
Ratios/Supplemental Data:
Net Assets, End of Period $(000)............................. 321,642 273,439 572,482 857,812 361,280
Ratio of Expenses to Average Daily Net Assets1............... .18% .19% .20% .20% .20%
Ratio of Net Investment Income to Average Daily Net Assets... 3.83% 2.59% 2.36% 2.90% 4.58%
<CAPTION>
MUNICASH DOLLAR SHARES
--------------------------------------------------
YEAR ENDED NOVEMBER 30,
--------------------------------------------------
1995 1994 1993 1992 1991
---------- ------ ------ ------ ------
Net Asset Value, Beginning of Period......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
<S> <C> <C> <C> <C> <C>
------- ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income....................................... .0357 .0241 .0210 .0275 .0428
------- ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders from Net Investment Income........ (.0357) (.0241) (.0210) (.0275) (.0428)
------- ------ ------ ------ ------
Net Asset Value, End of Period............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ====== ====== ======
Total Return................................................. 3.64% 2.44% 2.13% 2.79% 4.37%
Ratios/Supplemental Data:
Net Assets, End of Period $(000)............................. 101,424 99,688 95,225 81,669 49,582
Ratio of Expenses to Average Daily Net Assets(1)............. .43% .44% .45% .45% .45%
Ratio of Net Investment Income to Average Daily Net Assets... 3.58% 2.34% 2.11% 2.70% 4.33%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 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 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.
23
<PAGE> 24
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL
SHARES
----------------------------------------------
YEAR ENDED NOVEMBER 30,
----------------------------------------------
1995 1994 1993 1992 1991
------ ------ ------ ------ ------
Net Asset Value, Beginning of Period................................ $10.39 $11.18 $10.88 $10.54 $10.26
<S> <C> <C> <C> <C> <C>
----- ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income.............................................. .5256 .5053 .5315 .5609 .6093
Net Realized and Unrealized Gain (Loss) on Investments............. .7200 (.7900) .3000 .3400 .2800
----- ------ ------ ------ ------
Total From Investment Operations............................. 1.2456 (.2847) .8315 .9009 .8893
----- ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders from Net Investment Income............... (.5256) (.5053) (.5315) (.5609) (.6093)
----- ------ ------ ------ ------
Net Asset Value, End of Period...................................... $11.11 $10.39 $11.18 $10.88 $10.54
===== ====== ====== ====== ======
Total Return........................................................ 12.22% (2.63%) 7.76% 8.74% 8.89%
Ratios/Supplemental Data:
Net Assets, End of Period $(000).................................... 6,228 16,507 22,350 29,911 33,479
Ratio of Expenses to Average Daily Net Assets(2).................... .40% .40% .40% .40% .40%
Ratio of Net Investment Income to Average Daily Net Assets.......... 4.87% 4.64% 4.79% 5.20% 5.87%
Portfolio Turnover Rate............................................. 47% 40% 50% 64% 79%
<CAPTION>
INTERMEDIATE MUNICIPAL
DOLLAR SHARES
--------------------------------------------------
YEAR ENDED NOVEMBER 30,
--------------------------------------------------
1995 1994 1993 1992 1991(3)
---------- ------ ------ ------ ------
Net Asset Value, Beginning of Period................................$ 10.39 $11.18 $10.88 $10.54 $10.26
<S> <C> <C> <C> <C> <C>
------ ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income.............................................. .4985 .4782 .5037 .5339 .2881
Net Realized and Unrealized Gain (Loss) on Investments............. .7200 (.7900) .3000 .3400 .2800
------ ------ ------ ------ ------
Total From Investment Operations............................. 1.2185 (.3118) .8037 .8739 .5681
------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders from Net Investment Income............... (.4985) (.4782) (.5037) (.5339) (.2881)
------ ------ ------ ------ ------
Net Asset Value, End of Period......................................$ 11.11 $10.39 $11.18 $10.88 $10.54
====== ====== ====== ====== ======
Total Return........................................................ 11.97% (2.88%) 7.51% 8.49% 8.64%(1)
Ratios/Supplemental Data:
Net Assets, End of Period $(000).................................... 33 29 30 27 26
Ratio of Expenses to Average Daily Net Assets(2).................... .65% .65% .65% .65% .65%(1)
Ratio of Net Investment Income to Average Daily Net Assets.......... 4.62% 4.39% 4.54% 4.95% 5.62%(1)
Portfolio Turnover Rate............................................. 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 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 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.
24
<PAGE> 25
Notes to Financial Statements
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 a 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 of the Company are allocated among
the Company's portfolios based on their relative average net assets.
The preparation of financial statements in conformity with generally
accepted accounting principles 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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
25
<PAGE> 26
Notes to Financial Statements (Continued)
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.
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 year ended November 30, 1995, the Administrators and PIMC
voluntarily waived $1,081,512 of the advisory and administration fees payable to
them with respect to MuniFund, $849,655 with respect to MuniCash and $19,532
with respect to Intermediate Municipal Fund.
Service Organization fees of $21,022 were paid to affiliates of PNC Bank
for the year ended November 30, 1995.
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.
26
<PAGE> 27
Notes to Financial Statements (Continued)
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO
--------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------- -----------------
<S> <C> <C>
Shares sold:
MuniFund.......................................... 5,495,162,575 7,381,553,614
MuniFund Dollar................................... 367,994,308 579,527,863
Shares issued in reinvestment of dividends:
MuniFund.......................................... 3,075,518 2,856,831
MuniFund Dollar................................... 114,977 7,908
Shares repurchased:
MuniFund.......................................... (5,465,901,712) (7,716,221,465)
MuniFund Dollar................................... (364,420,349) (583,533,698)
----------------- -----------------
Net increase (decrease) in shares............ 36,025,317 (335,808,947)
=================== ===================
</TABLE>
<TABLE>
<CAPTION>
MUNICASH PORTFOLIO
--------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
----------------- -----------------
<S> <C> <C>
Shares sold:
MuniCash.......................................... 3,595,304,269 4,075,566,461
MuniCash Dollar................................... 226,209,465 164,822,576
Shares issued in reinvestment of dividends:
MuniCash.......................................... 3,595,447 2,270,070
MuniCash Dollar................................... 1,904,402 1,261,510
Shares repurchased:
MuniCash.......................................... (3,550,703,102) (4,376,831,517)
MuniCash Dollar................................... (226,378,133) (161,602,058)
----------------- -----------------
Net increase (decrease) in shares............ 49,932,348 (294,512,958)
=================== ===================
</TABLE>
27
<PAGE> 28
Notes to Financial Statements (Concluded)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL
FUND PORTFOLIO
-----------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1995 NOVEMBER 30, 1994
-------------------------- -----------------------
SHARES VALUE SHARES VALUE
---------- ------------ -------- -----------
<S> <C> <C> <C> <C>
Shares sold:
Intermediate Municipal.................. 306,662 $ 3,265,704 451,390 $ 4,945,518
Intermediate Municipal Dollar........... -- -- -- --
Shares issued in reinvestment of dividends:
Intermediate Municipal.................. -- -- -- --
Intermediate Municipal Dollar........... 134 1,441 121 1,323
Shares repurchased:
Intermediate Municipal.................. (1,335,253) (14,328,104) (861,216) (9,355,200)
Intermediate Municipal Dollar........... -- -- -- --
---------- ------------ -------- -----------
Net decrease in shares............. (1,028,457) $(11,060,959) (409,705) $(4,408,359)
========== ============ ======== ===========
</TABLE>
E. Purchases and sales of investment securities other than short-term
obligations, by Intermediate Municipal Fund, for the year ended November 30,
1995 were $4,406,572 and $14,618,675, 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 November 30, 1995, net assets consisted of the following:
<TABLE>
<CAPTION>
INTERMEDIATE
MUNICIPAL
MUNIFUND MUNICASH FUND
------------ ------------ ----------
<S> <C> <C> <C>
Paid-in Capital........................................ $726,919,811 $423,236,810 $6,565,315
Accumulated net realized loss.......................... (130,844) (171,160) (558,254)
Amortized market discount.............................. 3,204 -- --
Unrealized appreciation of investments................. -- -- 254,142
------------ ------------ ----------
Total Net Assets....................................... $726,792,171 $423,065,650 $6,261,203
============= ============= ==========
</TABLE>
28
<PAGE> 29
Independent Auditors' Report
To the Shareholders and Trustees
Municipal Fund for Temporary Investment:
We have audited the statements of net assets of Municipal Fund for
Temporary Investment (comprising, respectively, the MuniFund, MuniCash and
Intermediate Municipal Fund Portfolios) as of November 30, 1995, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then ended.
These financial statements and financial highlights are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included inspection of and confirmation by
correspondence with the custodians of securities owned as of November 30, 1995.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios constituting Municipal Fund for Temporary
Investment as of November 30, 1995, the results of their operations for the year
then ended, the changes in their net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended, in conformity with generally accepted
accounting principles.
KPMG PEAT MARWICK LLP
Philadelphia, PA
January 12, 1996
29
<PAGE> 30
Trustees
G. Willing Pepper
Chairman
David R. Wilmerding, Jr.
Vice-Chairman
Philip E. Coldwell
Robert R. Fortune
Rodney D. Johnson
Anthony M. Santomero
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-A-009
MUNIFUND
MUNICASH
INTERMEDIATE MUNICIPAL FUND
Investment Portfolios
Offered by
Municipal Fund for
Temporary Investment
PROVIDENT
INSTITUTIONAL
FUNDS
Annual Report to Shareholders
November 30, 1995
