<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
July 14, 1997
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, 1997.
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 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 Report of the Investment Adviser
For the past two quarters, the Federal Reserve has maintained a watchful
eye on the strength of the economy. The strong 3.8% jump in the fourth quarter
of 1996 gross domestic product was followed by an even more impressive gain of
5.9% in the first quarter of 1997. As economic activity surged, the Fed resorted
to both jawboning and preemptive strikes. As early as last December, Chairman
Greenspan spoke of the markets' "irrational exuberance" and indicated that
higher short-term interest rates were a likely consequence. The financial
markets prepared for a Fed tightening in early 1997, but the Fed surprised many
by not raising rates at its January FOMC meeting. By March, with some early
signs of a slowdown and no inflation, the Fed again surprised the markets, but
this time by raising the federal funds rate 25 basis points to 5.50%, the first
increase in almost two years. With scant evidence of inflation, the Fed came
under intense criticism for its move, but remained resolute that its action was
warranted, much like buying insurance against a future problem. By the end of
May, the issue over monetary policy remained hotly debated. One group argued
that the 5.9% pace of GDP was double what the Fed considers a sustainable,
non-inflationary growth rate, while others pointed out the absence of any
inflationary build-up. As a result, it is likely that the markets' volatility
will continue into the third quarter, as it reflects changing sentiment about
monetary policy.
Total tax-exempt assets hit new all-time highs in each of the first five
months of the semi-annual period ended May 31, 1997. Assets reached a peak of
$157.2 billion in the week ended April 7, according to IBC's Money Fund Report.
Cash flowed into the municipal market due to uncertainty over higher interest
rates and the Fed's tightening of monetary policy in March. This increase in
demand kept tax-exempt yields in a narrow trading range and at uncompetitive
levels versus taxable securities. By late April, however, tax related
redemptions forced dealers to raise yields on variable rate products to levels
not seen in a year. This weakness continued through May. In order to make
variable rate securities attractive to crossover buyers, these securities were
priced at 80-90% of the yields on comparable taxable securities throughout May.
Investment strategy during the six months ended May 31, emphasized a
laddered approach in anticipation of seasonal fund share volatility and higher
yields. Variable rate demand notes comprised 55%-65% of the portfolios as these
securities yielded an average of 3.59% during the period and 4.00% during the
final two months. With supply of one-year notes and variable rate issues
expected to increase through the summer months, these securities should continue
to offer attractive yields versus longer-term maturities.
As of the end of May, MuniFund's average weighted maturity stood at 35 days
while MuniCash's was 31 days. The two portfolios continued to remain competitive
within their peer groups. MuniFund ranked 4th in yield among 14 rated tax-free
funds for the month of May 1997, while MuniCash was ranked 3rd in yield among 75
tax-free institutional funds for the twelve months ended May 31, 1997, according
to IBC's Money Market Insight. Both funds continue their emphasis on high credit
quality and liquidity.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
MUNIFUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C> <C>
ALABAMA -- 1.71%
Calhoun County Economic
Development Council IDRB
(Craft Corporation Project) DN
(First Alabama Bank LOC)
(A-1+, VMIG-1)
4.15%(1)............ 06/07/97 $ 4,030 $ 4,030,000
City of Montgomery BMC Special
Care Facilities Authority
(Baptist Medical Center)
Series A DN (Amsouth Bank of
Alabama LOC) (VMIG-1)
3.95%(1)............ 06/07/97 10,000 10,000,000
------------
14,030,000
------------
ARIZONA -- 0.22%
Apache County IDA PCRB (Tucson
Electric Power Company) Series
1983C DN (Bankers Trust LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 400 400,000
Pinal County IDA (Magma Copper
Project) Series 1984A DN
(Banque Nationale de Paris
LOC) (A-1, VMIG-1)
3.90%(1)............ 06/07/97 1,400 1,400,000
------------
1,800,000
------------
CALIFORNIA -- 3.01%
California GO RAN DN (National
Westminster LOC) (A-1+,
VMIG-1)
4.00%(1)............ 06/07/97 11,200 11,200,000
San Juan-Modesto-Santa Clara-
Redding Public Power Agency
(San Juan Project) Subordinate
Lien RB Series 1997D DN
(National Westminster LOC)
(A-1+, VMIG-1)
3.70%(1)............ 06/07/97 13,500 13,500,000
------------
24,700,000
------------
COLORADO -- 1.09%
Colorado State General Fund TRAN
Series A (SP-1+, MIG-1)
4.50%............... 06/27/97 5,000 5,002,503
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- -----------
<S> <C> <C> <C>
COLORADO (CONTINUED)
Moffat County PCRB (Tri-State)
Series 1984 DN (AMBAC
Insurance) (A-1+, P-1)
4.05%(1)............ 06/07/97 $ 3,900 $ 3,900,000
------------
8,902,503
------------
FLORIDA -- 10.43%
Dade County Water & Sewer System
RB DN (FGIC Insurance) (A-1+,
VMIG-1)
3.85%(1)............ 06/07/97 29,900 29,900,000
Jacksonville Electric
System Series D TECP
(A-1+, P-1)
3.70%............... 09/12/97 12,100 12,100,000
St. Lucie County PCRB (Florida
Power & Light Company Project)
Series 1993 DN
(A-1, VMIG-1)
3.95%(1)............ 06/01/97 16,300 16,300,000
Sunshine State Governmental
Financing GO Revenue Bonds
(Morgan Guaranty LOC) (VMIG-1)
3.60%............... 06/20/97 15,000 15,000,000
Volusia County Health Facilities
Authority Hospital RB
(S.W. Volusia Healthcare
Corporation) Series 1994A DN
(First Union Bank LOC) (A-1)
3.95%(1)............ 06/07/97 12,265 12,265,000
------------
85,565,000
------------
GEORGIA -- 6.01%
Atlanta Urban Residential
Finance Authority RB
(Residential Construction -
Summerhill Project) DN (First
Union Bank LOC)
(A-1, VMIG-1)
4.00%(1)............ 06/07/97 2,950 2,950,000
Burke County IDA PCRB (Georgia
Power & Light Company Vogtle
Project) DN (A-1, VMIG-1)
4.00%(1)............ 06/01/97 6,100 6,100,000
</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>
GEORGIA (CONTINUED)
Burke County IDA PCRB (Oglethorpe
Power Company Vogtle Project) MB
(AMBAC Insurance) (A-1+, VMIG-1)
3.60%............... 12/01/97 $ 4,000 $ 4,000,000
Clayton County Housing Authority
Multifamily Housing Bonds
(Chateau Forest Apartments
Project) Series E DN (FGIC
Insurance)
(A-1+, VMIG-1)
4.00%(1)............ 06/07/97 10,300 10,300,000
Cobb County Housing Authority
Multifamily Housing RB (Post
Mill Project) Series 1995 DN
(Federal National Mortgage
Association LOC)
(A-1+, VMIG-1)
3.90%(1)............ 06/07/97 12,380 12,380,000
Dekalb County Housing Authority
Multifamily Housing Bonds
(Camden Brooke Project) DN
(Federal National Mortgage
Association LOC) (VMIG-1)
3.90%(1)............ 06/07/97 6,000 6,000,000
Fulton County IDA (Arthritis
Foundation Incorporated) DN
(Suntrust Bank LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 1,000 1,000,000
Fulton County IDA (Epstein
School Project) DN (Suntrust
Bank LOC) (Aa)
3.95%(1)............ 06/07/97 2,000 2,000,000
Georgia Municipal Association
Pooled Bond Certificates of
Participation DN (Credit
Suisse LOC) (A-1+, VMIG-1)
3.85%(1)............ 06/07/97 1,675 1,675,406
Gwinnett County Development
Authority (Wesleyan School
Project) Series 1997 DN
(Suntrust Bank LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 2,000 2,000,000
Municipal Gas Authority of
Georgia Series B DN (A-1+)
3.85%(1)............ 06/07/97 900 900,000
------------
49,305,406
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- -----------
<S> <C> <C> <C>
HAWAII -- 0.50%
Hawaii State Department of
Budget & Finance Special
Purpose Mortgage RB (Kaiser
Permanente) (A-1+)
3.50%............... 09/02/97 $ 4,100 $ 4,100,000
------------
ILLINOIS -- 9.47%
Chicago GO Tender Notes
(Landesbank Hessen LOC)
(SP-1+, VMIG-1)
3.55%............... 10/31/97 4,000 4,000,000
Illinois Development Finance
Authority (Chicago Symphony
Project) DN (Bank of America
LOC) (A-1+, VMIG-1)
3.95%(1)............ 06/07/97 10,000 10,000,000
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) (Canadian
Imperial Bank LOC)
(A-1+, VMIG-1)
3.60%............... 09/12/97 23,500 23,500,000
Illinois Health Facilities
Authority (Gottlieb Health
Resources Incorporated) Series
1994 DN (Harris Trust &
Savings Bank LOC) (VMIG-1)
3.90%(1)............ 06/07/97 400 400,000
Illinois Health Facilities
Authority (Pooled Financing)
Series 1985C DN (FNB Chicago
LOC) (VMIG-1)
3.90%(1)............ 06/07/97 2,000 2,000,000
Illinois Health Facilities
Authority (Revolving Fund
Pooled Financing) Series 1985F
DN (Swiss Bank LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 5,800 5,800,000
Illinois Health Facilities
Authority (University of
Chicago Hospital Project)
Series 1994C DN (Comerica Bank
LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 5,300 5,300,000
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation Project)
(VMIG-1)
3.65%............... 10/31/97 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 RB (Evanston Hospital
Corporation Project) Series 1996
(A-1+, VMIG-1)
3.95%............... 08/15/97 $10,000 $ 10,000,000
Illinois Health Facilities
Authority RB (Rush
Presbyterian-St. Lukes Medical
Center) Series 1996B (Northern
Trust LOC) (A-1+, VMIG-1)
3.80%............... 08/14/97 11,650 11,650,000
------------
77,650,000
------------
INDIANA -- 2.07%
Indiana Employment Commission
IDA (Miles Laboratories) DN
(Barclays Bank LOC) (A-1+)
3.80%(1)............ 06/07/97 7,000 7,000,000
South Bend Redevelopment
Authority (College Football
Hall of Fame) DN (Landesbank
Hessen LOC) (A-1+, VMIG-1)
3.85%(1)............ 06/07/97 10,000 10,000,000
------------
17,000,000
------------
KENTUCKY -- 3.14%
Jefferson County PCRB
(Louisville Gas & Electric
Company Project) Series
1993A TECP (A-1+, VMIG-1)
3.55%............... 06/16/97 6,000 6,000,000
Trimble County PCRB (Louisville
Gas & Electric Company
Project) Series 1992
(A-1+, VMIG-1)
3.70%............... 09/12/97 19,735 19,735,000
------------
25,735,000
------------
LOUISIANA -- 1.48%
Louisiana Public Facilities
Authority (College & Equipment
Project) Series A DN (Societe
Generale LOC) (A-1+, VMIG-1)
4.00%(1)............ 06/07/97 7,200 7,200,000
Parish of East Baton Rouge PCRB
(Exxon Project) DN
(A-1+, VMIG-1)
4.00%(1)............ 06/01/97 1,740 1,740,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
LOUISIANA (CONTINUED)
Parish of St. Charles PCRB
(Shell Oil Company Project) DN
(A-1+, VMIG-1)
4.00%(1)............ 06/01/97 $ 3,200 $ 3,200,000
------------
12,140,000
------------
MARYLAND -- 3.54%
Maryland Health & Higher
Education Facilities Authority
(Capitol College Project) DN
(FNB Maryland LOC) (VMIG-1)
4.15%(1)............ 06/07/97 7,925 7,925,000
Maryland Industrial Development
Finance Authority (McDonough
School Project) DN (FNB
Maryland LOC) (A-1)
4.15%(1)............ 06/07/97 4,000 4,000,000
Maryland State Economic
Development Corporation
Revenue Bonds (Pooled
Financing) DN (NationsBank
LOC) (A-1, VMIG-1)
3.95%(1)............ 06/07/97 10,000 10,000,000
Maryland State IDA (McDonough
School Income Facility) DN
(FNB Maryland LOC)
(A-1, VMIG-1)
4.15%(1)............ 06/07/97 5,000 5,000,000
Washington Suburban Sanitary
District BAN DN
(SP-1+, VMIG-1)
3.95%(1)............ 06/07/97 2,100 2,100,000
------------
29,025,000
------------
MICHIGAN -- 3.72%
Michigan State Building
Authority Series I TECP
(Canadian Imperial Bank LOC)
(A-1+, P-1)
3.80%............... 09/04/97 25,477 25,477,000
Michigan State Notes
(A-1+, MIG-1)
4.50%............... 09/30/97 5,000 5,011,438
------------
30,488,438
------------
MISSISSIPPI -- 0.12%
Jackson IDRB (McCarty Holman
Company Project) DN (Suntrust
Bank LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 1,000 1,000,000
------------
</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 -- 3.01%
Missouri Environmental
Improvement PCRB (National
Utilities) Series M DN
(A-1+, VMIG-1)
4.05%(1)............ 06/07/97 $ 5,100 $ 5,100,000
Missouri Health & Educational
Facilities Authority (Sisters
of Mercy Health System) Series
1995B DN (Credit Suisse LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 14,800 14,800,000
Missouri Health & Educational
Facilities Authority (SSM
Health System) TECP (Morgan
Guaranty LOC) (VMIG-1)
4.00%............... 06/02/97 1,900 1,900,000
Missouri Health & Educational
Facilities Authority
(Washington University) DN
(A-1+, VMIG-1)
3.90%(1)............ 06/07/97 2,900 2,900,000
------------
24,700,000
------------
NEBRASKA -- 0.12%
Nebraska Higher Education Loan
Program (Student Loan Program)
RB Series 1985D DN (Student
Loan Marketing Association
LOC) (VMIG-1)
3.85%(1)............ 06/07/97 1,000 1,000,000
------------
NEVADA -- 0.61%
Clark County IDRB (Nevada Power
Company Project) DN (Barclays
Bank LOC)
(A-1+, VMIG-1)
4.05%(1)............ 06/07/97 5,000 5,000,000
------------
NEW HAMPSHIRE -- 0.86%
New Hampshire Health & Higher
Education Facilities Authority
(VHA of New England Capital
Asset Financing Program)
Series 1985B DN (Mellon LOC)
(A-1, VMIG-1)
3.85%(1)............ 06/07/97 600 600,000
New Hampshire Health & Higher
Education Facilities Authority
(VHA of New England Capital
Asset Financing Program)
Series 1985E DN
(Mellon LOC) (A-1)
3.85%(1)............ 06/07/97 1,400 1,400,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
NEW HAMPSHIRE (CONTINUED)
New Hampshire Health & Higher
Education Facilities Authority
(VHA of New England Capital
Asset Financing Program)
Series 1985F DN
(Mellon LOC) (A-1, VMIG-1)
3.85%(1)............ 06/07/97 $ 5,050 $ 5,050,000
------------
7,050,000
------------
NEW JERSEY -- 0.29%
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Company
Project) Series 1996A DN (MBIA
Insurance) (A-1+, VMIG-1)
3.60%(1)............ 06/07/97 2,400 2,400,000
------------
NEW YORK -- 4.62%
Dormitory Authority of The State
of New York (Columbia
University) Tender Option
Bonds DN (Morgan Guaranty LOC)
(VMIG-1)
3.90%(1)............ 06/07/97 3,000 3,000,000
New York City Housing
Development Corporation
Multifamily Mortgage RB
(Columbus Gardens Project)
Series 1993A DN (Citibank LOC)
(A-1+, VMIG-1)
3.75%(1)............ 06/07/97 5,982 5,982,100
New York City Municipal Water
Finance Authority TECP
(Toronto Dominion LOC)
(A-1+, P-1)
4.00%............... 06/18/97 12,800 12,800,000
New York State Environmental
Quality GO Series 1997A TECP
(Bayerische Landesbank
Girozentrale LOC)
(A-1+, P-1)
3.45%............... 06/24/97 5,000 4,999,840
3.80%............... 08/20/97 10,000 10,000,000
New York State Thruway General
Revenue Series B DN (FGIC
Insurance) (A-1+, VMIG-1)
4.05%(1)............ 06/01/97 1,100 1,100,000
------------
37,881,940
------------
</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>
NORTH CAROLINA -- 2.45%
Charlotte-Mecklenburg Hospital
Authority (North Carolina
Health Care System) Series
1996B DN (NationsBank LOC)
(A-1, VMIG-1)
3.85%(1)............ 06/07/97 $ 3,850 $ 3,850,000
Mecklenburg County GO Series
1996C DN (NationsBank LOC)
(A-1, VMIG-1)
3.85%(1)............ 06/07/97 3,000 3,000,000
North Carolina Educational
Facilities Finance RB (The
Bowman Gray School of Medicine
Project) Series 1990 DN
(Wachovia Bank LOC) (VMIG-1)
3.90%(1)............ 06/07/97 2,900 2,900,000
North Carolina Medical Care
Community Hospital (Lincoln
Health System Project) DN
(NationsBank LOC)
(A-1, VMIG-1)
3.95%(1)............ 06/07/97 4,500 4,500,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) DN (A-1+, VMIG-1)
3.85%(1)............ 06/07/97 4,200 4,200,000
Raleigh-Durham Airport Authority
Special Facility Refunding RB
(American Airlines
Incorporated Project) Series
1995A DN (Royal Bank of Canada
LOC)
(A-1+, VMIG-1)
4.15%(1)............ 06/01/97 400 400,000
Raleigh-Durham Airport Authority
Special Facility Refunding RB
(American Airlines
Incorporated Project) Series
1995A DN (Royal Bank of Canada
LOC)
(A-1+, VMIG-1)
4.15%(1)............ 06/01/97 1,200 1,200,000
------------
20,050,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
OHIO -- 2.96%
Clermont County Health
Facilities Authority RB (Mercy
Health System Project) DN
(Credit Suisse LOC) (VMIG-1)
3.85%(1)............ 06/07/97 $ 1,800 $ 1,800,000
Columbus GO Unlimited Tax DN
(Westdeutsche Landesbank
Girozentrale LOC)
(A-1+, VMIG-1)
3.75%(1)............ 06/07/97 3,000 3,000,000
Franklin County Hospital
Facility Referral &
Improvement RB (U.S. Health
Corporation of Columbus)
Series 1996A DN (Morgan
Guaranty LOC)
(VMIG-1)
3.90%(1)............ 06/07/97 10,000 10,000,000
Lucas County Health Facilities
Authority RB (Lutheran Homes
Society Project) DN (Bank One
Columbus LOC) (A-1+)
3.95%(1)............ 06/07/97 7,700 7,700,000
Montgomery County Economic
Development Authority RB
(Dayton Art Institute Project)
DN (National City Bank of
Cleveland LOC)
(A-1, VMIG-1)
3.95%(1)............ 06/07/97 800 800,000
Montgomery County Limited
Obligation RB (Society of St.
Vincent de Paul Project)
Series 1996 DN (National City
Bank of Cleveland LOC)
(A-1, VMIG-1)
3.95%(1)............ 06/07/97 1,000 1,000,000
------------
24,300,000
------------
OKLAHOMA -- 1.79%
Garfield County IDA PCRB
(Oklahoma Gas & Electric
Company) DN
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 10,000 10,000,000
Oklahoma Water Resources Board
State Loan Program Revenue
Bonds (Swiss Bank LOC) (A-1+)
3.50%............... 09/02/97 4,685 4,685,000
------------
14,685,000
------------
</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> <C>
PENNSYLVANIA -- 1.73%
Beaver County IDA PCRB (Atlantic
Richfield Company Project)
Series 1995 DN
A-1, P-1)
4.00%(1)............ 06/07/97 $ 3,400 $ 3,400,000
Pennsylvania Higher Educational
Facilities Authority RB
(Carnegie Mellon University)
Series 1995C DN (A-1+)
4.05%(1)............ 06/01/97 5,600 5,600,000
Philadelphia Hospital & Higher
Education Facilities Authority
(Childrens Hospital of
Philadelphia Project) Series
1996A DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
4.05%(1)............ 06/01/97 3,600 3,600,000
Sayre County Hospital Health
Care Facilities Authority (VHA
of Pennsylvania Capital
Financing Program) RB Series
1985A DN (Mellon LOC) (A-1)
3.85%(1)............ 06/07/97 1,600 1,600,000
------------
14,200,000
------------
SOUTH CAROLINA -- 1.41%
Piedmont Municipal Power Agency
Electric Refunding RB Series
1996C DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
3.80%(1)............ 06/07/97 11,600 11,600,000
------------
TENNESSEE -- 9.84%
Chattanooga IDRB (YMCA Project)
DN
(Suntrust Bank LOC)
3.95%(1)............ 06/01/97 2,100 2,100,000
Chattanooga-Hamilton County
Health Facility (Erlinger
Medical Center) DN
(VMIG-1)
4.05%(1)............ 06/01/97 14,700 14,700,000
Clarksville Public Building
Authority (Pooled Financing
Municipal Fund) Series 1995 DN
(NationsBank LOC) (A-1)
3.95%(1)............ 06/07/97 5,000 5,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
------------------- -------- ------- -----------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
Knox County Health Education &
Housing Board (Mercy Health
Systems) DN
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 $ 5,000 $ 5,000,000
Knox County Health Education &
Housing Board (Webb School
District Knoxville Project) DN
(Suntrust Bank LOC)
3.95%(1)............ 06/07/97 5,000 5,000,000
Knox County IDA (Weisgarber
Partners) DN (Credit Suisse
LOC) (A-1+, VMIG-1)
3.85%(1)............ 06/07/97 1,600 1,600,000
Knox County IDRB (Professional
Plaza Project) DN (Credit
Suisse LOC) (VMIG-1)
3.85%(1)............ 06/07/97 2,800 2,800,000
Memphis GO Series A DN
(Westdeutsche Landesbank
Girozentrale LOC)
(A-1+, VMIG-1)
3.90%(1)............ 06/07/97 2,500 2,500,000
Metropolitan Government
Nashville Davidson County
Health & Education Board
(Harpeth Hall School Project)
DN (Suntrust Bank LOC)
(VMIG-1)
3.95%(1)............ 06/07/97 500 500,000
Metropolitan Nashville Airport
Improvement Bonds DN (Societe
Generale LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 6,800 6,800,000
Montgomery County Public
Building Authority Pooled
Financing GO (Montgomery
County Loan Pool) Series 1995
DN (NationsBank LOC) (A-1+,
VMIG-1)
3.95%(1)............ 06/07/97 5,000 5,000,000
Montgomery County Public
Building Authority Pooled
Financing GO (Montgomery
County Loan Pool) Series 1996
DN (NationsBank LOC) (A-1,
VMIG-1)
3.95%(1)............ 06/07/97 3,000 3,000,000
</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> <C>
TENNESSEE (CONTINUED)
Montgomery County Public Building
Authority Pooled Financing GO
(Tennessee County Loan Pool)
Series 1995 DN (NationsBank LOC)
(A-1, VMIG-1)
3.95%(1)............ 06/07/97 $ 7,000 $ 7,000,000
Rutherford Industrial
Development Board (Square D
Company) DN (Societe Generale
LOC) (VMIG-1)
3.90%(1)............ 06/07/97 3,100 3,100,000
Shelby County GO TECP
(Landesbank Hessen LOC) (A-1+,
P-1)
4.00%............... 06/25/97 13,500 13,500,000
Washington County IDRB
(Springbrook Properties
Project) Series 1996 DN
(Suntrust Bank LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 3,150 3,150,000
------------
80,750,000
------------
TEXAS -- 12.92%
Bexar Army Retirement Health
Facilities Development
Authority Series 1985B DN
(Rabo Bank Nederland LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 700 700,000
Board of Regents of Texas
A & M University TECP
(A-1+, P-1)
3.80%............... 09/17/97 16,000 16,000,000
Board of Regents of The
University of Texas Series A
TECP (A-1+, P-1)
3.80%............... 09/26/97 10,000 10,000,000
City of Houston Series A TECP
(A-1+, P-1)
3.45%............... 06/17/97 11,000 11,000,000
3.75%............... 09/16/97 10,600 10,600,000
3.80%............... 09/17/97 10,000 10,000,000
3.75%............... 09/25/97 8,400 8,400,000
3.80%............... 09/25/97 2,000 2,000,000
Harris County GO Series A TECP
(A-1+, P-1)
3.80%............... 09/26/97 3,988 3,988,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
------------------ -------- ------- -----------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Harris County Health Facilities
Development Authority Hospital
RB (Memorial Hospital System
Project) Series 1997B DN
(Societe Generale LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 $ 4,600 $ 4,600,000
Harris County Health Facilities
Development Authority Hospital
RB (San Jacinto Methodist
Hospital Project) (Morgan
Guaranty LOC) (VMIG-1)
3.55%............... 06/02/97 9,000 9,000,000
Harris County Toll Road
Unlimited Tax Bonds Series G
DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/97 1,900 1,900,000
Nueces County Health Facilities
Authority (Driscoll Children's
Hospital) DN (Barclays Bank
LOC) (VMIG-1)
4.05%(1)............ 06/07/97 2,750 2,750,000
Texas TRAN (SP-1+, MIG-1)
4.75%............... 08/29/97 15,000 15,030,240
------------
105,968,240
------------
UTAH -- 0.54%
Intermountain Power Agency Power
Supply RB Series 1985E (Swiss
Bank LOC) (A-1+, VMIG-1)
3.50%............... 09/15/97 4,400 4,400,000
------------
VERMONT -- 0.22%
Vermont Educational & Health
Buildings Finance Agency
Hospital RB (VHA of New
England Capital Asset
Financing Program) Series
1985C DN (Mellon LOC) (A-1)
3.85%(1)............ 06/07/97 1,800 1,800,000
------------
VIRGINIA -- 1.30%
Hampton Roads Regional Jail
Authority (Regional Jail
Facility Project) Series 1996B
DN (Wachovia Bank LOC)
(A-1+, VMIG-1)
3.90%(1)............ 06/07/97 700 700,000
</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> <C>
VIRGINIA (CONTINUED)
Louisa County IDA (Pooled
Financing) DN (NationsBank LOC)
(A-1, VMIG-1)
3.95%(1)............ 06/07/97 $ 1,500 $ 1,500,000
Lynchburg IDA Hospital RB (VHA
Mid-Atlantic States Capital
Asset Fund) Series 1985F DN
(Mellon LOC) (A-1, VMIG-1)
3.85%(1)............ 06/07/97 1,100 1,100,000
Lynchburg IDA Hospital RB (VHA
Mid-Atlantic States Capital
Asset Fund) Series 1985G DN
(Mellon LOC) (A-1, VMIG-1)
3.85%(1)............ 06/07/97 2,100 2,100,000
Roanoke IDA Hospital RB (Roanoke
Memorial Hospital Project)
Series C DN (Morgan Guaranty
LOC)
(A-1)
4.00%(1)............ 06/07/97 5,300 5,300,000
------------
10,700,000
------------
WEST VIRGINIA -- 0.37%
Marshall County PCRB (PPG
Industries Project) DN (A-1,
VMIG-1)
4.10%(1)............ 06/07/97 3,000 3,000,000
------------
WISCONSIN -- 3.00%
Carlton County PCRB (Wisconsin
Power & Light Company Project)
Series B DN (A-1+, P-1)
4.00%(1)............ 06/01/97 11,100 11,100,000
Wisconsin GO TECP
(A-1+, P-1)
3.55%............... 06/19/97 13,504 13,504,000
------------
24,604,000
------------
WYOMING -- 5.21%
Converse County PCRB (Pacificorp
Project) (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
4.10%............... 06/16/97 22,485 22,485,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C> <C>
WYOMING (CONTINUED)
Sweetwater County PCRB (Chevron
Project) (A-1+, VMIG-1)
3.80%............... 06/15/97 $ 6,850 $ 6,850,000
Sweetwater County PCRB
(Pacificorp Project) DN (Bank
of New York LOC) (A-1, VMIG-1)
4.05%(1)............ 06/01/97 13,400 13,400,000
------------
42,735,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $818,265,527*)............ 99.76% 818,265,527
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.24 1,995,460
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 755,147,170
MuniFund Shares and 65,201,636
MuniFund Dollar Shares
outstanding).................... 100.00% $820,260,987
======= ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($820,260,987 / 820,348,806).............. $1.00
=====
</TABLE>
- ---------------
* Aggregate cost for federal income tax purposes is substantially the same.
(1) Variable rate
MUNIFUND PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1997
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C>
1- 30 Days $598,586,506 73.2%
61- 90 Days 46,650,000 5.7
91-120 Days 154,985,000 18.9
121-150 Days 5,000,000 0.6
Over 150 Days 13,000,000 1.6
Average Weighted Maturity -- 35 Days
---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
MUNICASH PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- --------- -------- ------------
<S> <C> <C> <C>
ARIZONA - 0.88%
Phoenix IDRB (Leggett & Platt
Incorporated Project) AMT
(Wachovia Bank LOC)
4.00%(1)............ 06/07/97 $ 5,170 $ 5,170,000
------------
ARKANSAS -- 2.04%
Hope City Solid Waste Disposal
RB (Temple-Inland Forest
Products Corporation Project)
AMT (A-1, P-1)
3.60%............... 06/27/97 7,900 7,900,000
Independence County IDRB
(Townsends of Arkansas
Incorporated Project) AMT
(Rabo Bank Nederland LOC)
3.90%(1)............ 06/07/97 4,000 4,000,000
------------
11,900,000
------------
CALIFORNIA -- 0.94%
California Solid Waste Disposal
RB (Shell Oil Company Project)
AMT (P-1)
4.05%(1)............ 06/02/97 5,500 5,500,000
------------
COLORADO -- 2.62%
City & County of Denver Airport
System Subordinated Revenue
Bonds AMT (Sanwa Bank LOC)
(A-1, P-1)
3.85%............... 08/15/97 9,070 9,070,000
Colorado Housing Finance
Authority IDRB (Dawn Baker Boy
Incorporated Project) AMT (FNB
Chicago LOC)
4.25%(1)............ 06/07/97 1,255 1,255,000
Colorado Student Obligation Bond
Authority (Student Loan
Revenue Bonds) AMT (Student
Loan Marketing Association
LOC)
(A-1+, VMIG-1)
3.95%(1)............ 06/07/97 5,000 5,000,000
------------
15,325,000
------------
DELAWARE -- 0.60%
Delaware Economic Development
Authority PCRB (Delmarva Power
& Light Company Project)
Series 1988 AMT
(A-1, VMIG-1)
4.15%(1)............ 06/01/97 3,500 3,500,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
FLORIDA -- 0.34%
Sunshine State Governmental
Financing Commission
(Government Financing Program)
TECP (A-1+)
3.45%............... 06/13/97 $ 2,000 $ 2,000,000
------------
GEORGIA -- 5.89%
Bulloch County Development
Authority IDRB (Gold Kist
Incorporated Project) Series
1995 AMT
(Wachovia Bank LOC)
4.00%(1)............ 06/07/97 4,700 4,700,000
Burke County Development
Authority PCRB (Georgia Power
& Light Company Vogtle
Project) DN
4.00%(1)............ 06/01/97 4,385 4,385,000
Burke County PCRB (Georgia Power
Company Vogtle Project) DN
(A-1, VMIG-1)
4.20%(1)............ 06/01/97 7,000 7,000,000
Burke County PCRB (Oglethorpe
Power Company Project) MB
(AMBAC Insurance)
3.60%............... 12/01/97 2,500 2,500,000
Cobb County IDRB (John W. Rooker
Company Project) AMT (First
Union Bank LOC)
4.10%(1)............ 06/07/97 2,200 2,200,000
Decatur County & Bainbridge IDRB
(Thomas & Betts Corporation
Project) AMT (Wachovia Bank
LOC)
4.00%(1)............ 06/07/97 3,500 3,500,000
Dekalb County Housing Finance
Authority Multifamily Housing
(Eagle Trace Apartments
Project) AMT (Society National
Bank of Cleveland LOC) (A-1)
4.10%(1)............ 06/07/97 4,675 4,675,000
Effingham County Development
Authority PCRB (Savannah
Electric & Power Company
Project) DN (A-1, VMIG-1)
4.20%(1)............ 06/01/97 3,000 3,000,000
</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> <C>
GEORGIA (CONTINUED)
Haralson County Development
Authority IDRB (Gold Kist
Incorporated Project) Series 1995
AMT
(Wachovia Bank LOC)
4.00%(1)............ 06/07/97 $ 2,500 $ 2,500,000
------------
34,460,000
------------
ILLINOIS -- 15.93%
Belvidere IDRB (R&D Thiel
Incorporated Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
4.15%(1)............ 06/07/97 1,890 1,890,000
Chicago IDRB (Enterprise Center
IX Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.15%(1)............ 06/07/97 4,750 4,750,000
Chicago IDRB (Enterprise Center
VII Project) AMT (ABN-AMRO
Bank N.V. LOC) (A-1+)
4.15%(1)............ 06/07/97 7,200 7,200,000
Chicago IDRB (Goose Island Beer
Company, Project) AMT (First
Bank Systems, N.A. LOC
4.20%(1)............ 06/07/97 1,300 1,300,000
Chicago O'Hare International
Airport (American Airlines)
Series 1983D DN (Sanwa Bank
LOC) (VMIG-1)
4.05%(1)............ 06/01/97 7,000 7,000,000
Illinois Development Finance
Authority (Azteca Foods
Project Incorporated) AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+)
4.15%(1)............ 06/07/97 3,800 3,800,000
Illinois Development Finance
Authority IDRB (Bhagvan H.
Patel Project) AMT (Bank One
Columbus LOC) (A-1+)
4.05%(1)............ 06/07/97 2,405 2,405,000
Illinois Development Finance
Authority IDRB (Big Bolt
Corporation Project) AMT
(ABN-AMRO Bank N.V. LOC)
4.35%(1)............ 06/07/97 2,000 2,000,000
Illinois Development Finance
Authority IDRB (Citizens
Utility Company Project)
AMT (A-1+)
4.15%(1)............ 06/07/97 6,000 6,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Development Finance
Authority IDRB (Henry Valve
Company Project) Series 1995
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
4.15%(1)............ 06/07/97 $ 4,475 $ 4,475,000
Illinois Development Finance
Authority IDRB (Prairie
Packaging Incorporated
Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.15%(1)............ 06/07/97 5,000 5,000,000
Illinois Development Finance
Authority IDRB (Royal
Continental Box Project)
Series B AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.15%(1)............ 06/07/97 3,450 3,450,000
Illinois Development Finance
Authority RB (La Salle
Foundation Project) DN (FNB
Chicago LOC) (A-1+)
4.00%(1)............ 06/07/97 7,500 7,500,000
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation Project)
(A-1+, VMIG-1)
3.85%............... 10/15/97 5,000 5,000,000
Illinois Housing Development
Finance Authority RB
Homeownership Mortgage Bonds
AMT (Morgan Stanley Group LOC)
(A-1+, VMIG-1)
3.70%............... 12/18/97 4,300 4,300,000
Lake County IDRB (Northpoint
Project) AMT (Bank One
Columbus LOC) (A-1+)
4.05%(1)............ 06/07/97 6,000 6,000,000
Naperville Economic Development
Authority (Independence
Village Associates) DN
(National City Bank LOC)
4.05%(1)............ 06/07/97 2,915 2,915,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1992 AMT
(Mellon LOC) (VMIG-1)
4.05%(1)............ 06/07/97 3,200 3,200,000
</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>
ILLINOIS (CONTINUED)
Sangamon County IDRB (Contech
Construction Project Incorporated)
Series 1994 AMT (Mellon LOC)
(VMIG-1)
4.05%(1)............ 06/07/97 $ 4,000 $ 4,000,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1997 AMT
(Mellon LOC)
4.10%(1)............ 06/07/97 1,500 1,500,000
Southwestern Illinois
Development Authority
Environmental Improvement RB
(Shell Oil Company Wood River
Project) Series 1995 AMT
(A-1+, VMIG-1)
4.25%(1)............ 06/01/97 1,000 1,000,000
Southwestern Illinois
Development Authority Solid
Waste Disposal RB (Shell Oil
Company Wood River Project)
Series 1992 AMT (A-1+, VMIG-1)
4.25%(1)............ 06/01/97 5,700 5,700,000
Village of North Aurora IDRB
(Oberweis Dairy Incorporated
Project) Series 1995 AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+, VMIG-1)
4.15%(1)............ 06/07/97 2,800 2,800,000
------------
93,185,000
------------
INDIANA -- 2.05%
Indiana Development Finance
Authority IDRB (Enterprise
Center V Project) Series 1992
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
4.15%(1)............ 06/07/97 5,000 5,000,000
Indianapolis Economic
Development Authority RB
(White Arts, Incorporated
Project) AMT (Fifth Third Bank
LOC)
4.05%(1)............ 06/07/97 5,000 5,000,000
Jasper County Economic
Development RB (Wabash Valley
Produce Project) AMT (Bank One
Columbus LOC)
4.05%(1)............ 06/07/97 2,000 2,000,000
------------
12,000,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
KANSAS -- 0.43%
Shawnee Private Activity RB
(Simmons Company Project) AMT
(Sun Trust LOC) (A-1+, VMIG-1)
4.00%(1)............ 06/07/97 $ 2,500 $ 2,500,000
------------
KENTUCKY -- 6.93%
City of Maysville Solid Waste
Disposal Facilities Revenue
Bonds (Inland Container
Corporation Project) Series
1992 AMT (A-1, P-1)
3.95%............... 06/27/97 2,800 2,800,000
3.90%............... 09/09/97 5,165 5,165,000
3.90%............... 09/19/97 7,035 7,035,000
Davies County Solid Waste
Disposal Facilities (Scott
Paper Company Project) Series
1993A AMT
(Morgan Guaranty LOC)
(A-1+, VMIG-1)
4.15%(1)............ 06/01/97 21,500 21,500,000
Elsmere IDRB (International Mold
Steel, Incorporated Project)
AMT (Star Banc Corp. LOC)
4.13%(1)............ 06/07/97 2,000 2,000,000
Kentucky State Housing Finance
Authority Series D RB
(A-1+, VMIG-1)
4.00%............... 12/31/97 2,000 2,000,000
------------
40,500,000
------------
LOUISIANA -- 1.04%
Calcasieu Parish IDRB (Citgo
Petroleum Corporation Project)
Series 1994 AMT (Banque
Nationale de Paris LOC)
(A-1+, VMIG-1)
4.35%(1)............ 06/01/97 6,100 6,100,000
------------
MAINE -- 0.51%
City of Portland Revenue
Obligation Securities (Barber
Foods Project) Series 1996 AMT
(Society National Bank of
Cleveland LOC)
4.25%(1)............ 06/07/97 3,000 3,000,000
------------
MARYLAND -- 1.86%
Baltimore IDRB (Wicomico
Industrial Center Facility)
AMT (First Union Bank LOC)
(A-1)
3.80%(1)............ 06/07/97 3,300 3,300,000
</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>
MARYLAND (CONTINUED)
Maryland State Economic
Development Corporation RB
(Atlantic Pharmaceutical Services
Incorporated) AMT (FNB Maryland
LOC) (A-1)
4.24%(1)............ 06/07/97 $ 5,500 $ 5,500,000
Wicomico County Economic
Development RB (Plymouth Tube
Company Project) AMT (FNB
Chicago LOC)
(VMIG-1)
4.15%(1)............ 06/07/97 2,100 2,100,000
------------
10,900,000
------------
MASSACHUSETTS -- 0.58%
Massachusetts Health &
Educational Facilities
Authority (Capital Asset
Program) Series G DN (Credit
Suisse LOC) (A-1+, VMIG-1)
3.60%(1)............ 06/07/97 3,400 3,400,000
------------
MICHIGAN -- 1.28%
Delta County Education
Environmental Improvement RB
(Mead Escanah Project) DN
(A-1+)
4.00%(1)............ 06/01/97 2,000 2,000,000
Michigan State Strategic Fund RB
(Pioneer Metal Finishing
Company Project) AMT (National
City Bank of Cleveland LOC)
(A-1)
4.05%(1)............ 06/07/97 5,500 5,500,000
------------
7,500,000
------------
NEBRASKA -- 0.22%
Stanton County IDRB (Nucor
Corporation Project) AMT
(A-1+, P-1)
4.00%(1)............ 06/07/97 1,300 1,300,000
------------
NEW JERSEY -- 4.76%
Essex County Public Improvement
Authority RB (County Asset
Sale Project) DN (Morgan
Guaranty LOC) (VMIG-1)
3.75%(1)............ 06/07/97 2,500 2,500,000
Hopewell Township BAN
4.25%............... 05/22/98 1,000 1,002,791
Middlesex County BAN
3.90%............... 06/25/97 1,000 1,000,032
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
NEW JERSEY (CONTINUED)
Morris County BAN
(SP-1+, VMIG-1)
3.97%............... 08/08/97 $ 3,000 $ 3,000,212
New Jersey Sports & Exhibition
Authority Series 1992C DN
(MBIA Insurance) (A-1+)
3.65%(1)............ 06/07/97 10,050 10,050,000
New Jersey State Economic
Development Authority RB
(Hillcrest Health Services
Systems Project) DN
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
3.85%(1)............ 06/07/97 3,700 3,700,000
New Jersey Turnpike Authority RB
Series 1991D DN (Societe
Generale LOC)
(A-1+, VMIG-1)
3.70%(1)............ 06/07/97 4,100 4,100,000
Princeton Township BAN
4.375%.............. 08/27/97 1,000 1,001,332
Salem County PCRB (Public
Service Electric & Gas Company
Project) AMT (MBIA Insurance)
(A-1+, VMIG-1)
3.70%(1)............ 06/07/97 1,500 1,500,000
------------
27,854,367
------------
NEW YORK -- 5.95%
City of New York Municipal
Assistance Corporation (Public
Benefit Corporation of The
State of New York) TECP (A-1+,
P-1)
3.65%............... 06/02/97 15,800 15,800,000
New York State Energy, Research
& Development Authority PCRB
(Niagara Mohawk Power
Corporation) Series 1987B AMT
(Morgan Guaranty LOC) (A-1+)
4.25%(1)............ 06/01/97 9,000 9,000,000
New York State Housing Finance
Authority RB (250 West 50th
Street Project) AMT (Fleet
Bank LOC) (VMIG-1)
3.90%(1)............ 06/07/97 10,000 10,000,000
------------
34,800,000
------------
</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>
NORTH DAKOTA -- 0.53%
Mercer County Solid Waste
Disposal RB (United Power
Association Project) AMT
(A-1+, P-1)
3.55%............... 09/02/97 $ 3,100 $ 3,100,000
------------
OHIO -- 12.71%
Clermont County Health
Facilities Authority RB (Mercy
Health System Project) Series
1993A (Credit Suisse LOC)
(VMIG-1)
3.85%(1)............ 06/07/97 8,400 8,400,000
Clermont County Hospital
Facilities Authority RB (Mercy
Health System Project) Series
1994B DN (A-1, VMIG-1)
3.85%(1)............ 06/07/97 3,500 3,500,000
Cleveland School District RAN
(AMBAC Insurance) (SP-1+, MIG)
4.50%............... 06/01/97 5,000 5,000,000
Greene County BAN GO Bonds
4.40%............... 06/04/97 1,782 1,782,068
4.50%............... 06/04/97 3,300 3,300,088
4.00%............... 03/26/98 3,747 3,752,833
4.10%............... 03/26/98 2,000 2,005,193
4.50%............... 05/07/98 5,000 5,020,121
Hamilton County BAN
4.20%............... 06/13/97 7,480 7,480,708
Lucas County Health Facilities
Authority RB (Lutheran Homes
Society Project) DN (Bank One
Columbus LOC) (A-1+)
3.95%(1)............ 06/07/97 3,300 3,300,000
Ohio Air Quality Development
Authority (JMG Funding
Company) Series 1994A AMT
(Societe Generale LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/97 9,200 9,200,000
Ohio Air Quality Development
Authority (JMG Funding
Company) Series 1995 AMT
(Societe Generale LOC) (A-1)
3.90%(1)............ 06/07/97 3,100 3,100,000
Ohio Air Quality Development
Authority PCRB (Duquesne Light
Company Project) TECP AMT
(A-1+)
3.50%............... 06/13/97 1,000 1,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Ohio Air Quality Development
Authority PCRB (PPG Industries
Incorporated) Series 1988A DN
(A-1)
4.10%(1)............ 06/07/97 $ 4,500 $ 4,500,000
Ohio Air Quality Development
Authority PCRB (Timken Company
Project) Series 1992 DN
(Credit Suisse LOC) (A-1+,
P-1)
3.90%(1)............ 06/07/97 1,700 1,700,000
Rocky River BAN
4.15%............... 09/05/97 1,000 1,000,707
Stark County BAN
4.12%............... 06/19/97 2,000 2,000,208
Toledo City Services Special
Assessment GO Notes RB DN
(Canadian Imperial Bank LOC)
(VMIG-1)
3.90%(1)............ 06/07/97 3,000 3,000,000
Toledo GO Notes
4.50%............... 10/15/97 4,000 4,008,746
Village of Evandale (SHV Real
Estate Incorporated Project)
DN (Algemene LOC) (P-1)
3.80%(1)............ 06/07/97 1,300 1,300,000
------------
74,350,672
------------
OKLAHOMA -- 3.08%
Garfield County IDA PCRB
(Oklahoma Gas & Electric
Company) DN (A-1+, VMIG-1)
3.95%(1)............ 06/07/97 10,000 10,000,000
Oklahoma State Health Systems
IDRB (Baptist Medical Center
of Oklahoma Incorporated
Project) DN Series A (A-1+,
VMIG-1)
4.00%(1)............ 06/07/97 8,000 8,000,000
------------
18,000,000
------------
OREGON -- 0.43%
Oregon State Housing Authority
Community Services Department
Mortgage Revenue Bonds (Single
Family Mortgage Program)
Series C AMT (Escrowed in U.S.
Treasuries LOC) (VMIG-1)
4.05%............... 05/15/98 2,500 2,500,000
------------
</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>
PENNSYLVANIA -- 2.70%
Berks County IDA (Continental
Assurance Company) Series 1982
DN (A-1+)
3.85%(1)............ 06/07/97 $ 2,800 $ 2,800,000
Elk County IDRB (Willamette
Industries Incorporated
Project) AMT (Deutsche Bank
LOC) (A-1)
3.95%(1)............ 06/07/97 13,000 13,000,000
------------
15,800,000
------------
RHODE ISLAND -- 0.84%
Rhode Island Housing & Mortgage
Authority Finance Corporation
Home Ownership Opportunity
Bonds Series 22-A AMT (FGIC
Insurance) (A-1+,VMIG-1)
3.70%............... 12/02/97 4,900 4,900,000
------------
SOUTH CAROLINA -- 1.03%
Chesterfield County IDRB (Culp
Incorporated Project) AMT
(Wachovia Bank LOC)
4.00%(1)............ 06/07/97 6,000 6,000,000
------------
TENNESSEE -- 3.15%
Chattanooga IDRB (Southern
Foundry Supply Company
Project) AMT (Sun Trust LOC)
4.00%(1)............ 06/07/97 3,000 3,000,000
City of Henderson IDRB (Premier
Manufacturing Corporation
Project) AMT (National City
Bank LOC)
4.10%(1)............ 06/07/97 5,300 5,300,000
Jackson City IDRB (Quadion
Corporation Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
4.10%(1)............ 06/07/97 3,800 3,800,000
Knox County IDRB (Travis Meats,
Incorporated Project) AMT (Sun
Trust LOC)
4.05%(1)............ 06/07/97 1,800 1,800,000
Morristown IDRB (BOS Automotive
Products, Incorporated
Project) AMT (Bayerische
Landesbank Girozentrale LOC)
4.00%(1)............ 06/07/97 2,000 2,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
Tennessee Housing Development
Authority (Homeownership
Program) Series 3 AMT
(Escrowed in U.S. Treasuries
LOC) (A-1+, VMIG-1)
3.75%............... 02/19/98 $ 2,500 $ 2,500,000
------------
18,400,000
------------
TEXAS -- 15.20%
Angelina & Neches River
Authority Solid Waste Disposal
Revenue Bonds (Temple-Eastex
Incorporated Project) AMT
(P-1)
4.10%............... 08/14/97 7,450 7,450,000
3.90%............... 09/09/97 8,650 8,650,000
Brazos River Harbor Navigation
District (Dow Chemical Company
Project) Series 1993 AMT (A-1)
4.35%(1)............ 06/01/97 14,800 14,800,000
Brownsville County IDRB (Rich-
Seapak Corporation Project)
AMT (Sun Trust LOC)
4.00%(1)............ 06/07/97 2,500 2,500,000
City of Haltom IDRB (Molded
Products Company Project)
Series 1995 AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
4.15%(1)............ 06/07/97 3,450 3,450,000
Gulf Coast IDA (Texas Marine
Terminal Project) AMT (A-1+,
VMIG-1)
4.25%(1)............ 06/01/97 6,000 6,000,000
Gulf Coast Waste Disposal
Authority PCRB (Amoco Oil
Incorporated Project) Series
1994 AMT (A-1+, VMIG-1)
4.25%(1)............ 06/01/97 9,000 9,000,000
Harris County IDRB (Deer Park
Limited Project) AMT
(A-1, VMIG-1)
4.35%(1)............ 06/01/97 1,900 1,900,000
Matagorda County Navigational
District (Houston Power &
Light Company) AMT (AMBAC
Insurance) (VMIG-1)
4.15%(1)............ 06/01/97 11,300 11,300,000
</TABLE>
- -----------------
(1) Variable rate
16
<PAGE> 17
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
TEXAS (CONTINUED)
McKinney City IDRB (Delta
Dailyfood Texas Incorporated
Project) AMT (Rabo Bank Nederland
LOC)
4.00%(1)............ 06/07/97 $ 7,500 $ 7,500,000
Montgomery County IDRB (Sawyer
Research Products
Incorporated) AMT (Society
National Bank of Cleveland
LOC)
4.25%(1)............ 06/07/97 1,915 1,915,000
Port of Corpus Christi Sewage &
Solid Waste Disposal RB (Citgo
Petroleum Corporation Project)
Series 1996 AMT (Banque
Nationale de Paris LOC)
(VMIG-1)
4.35%(1)............ 06/01/97 5,400 5,400,000
South Texas Higher Education
Authority AMT (MBIA Insurance)
(VMIG-1)
3.95%(1)............ 06/07/97 5,000 5,000,000
Texas TRAN (SP-1+, MIG-1)
4.75%............... 08/29/97 4,000 4,008,090
------------
88,873,090
------------
UTAH -- 0.43%
Intermountain Power Agency RB
Series 1985F (Morgan Guaranty
LOC)
(A-1+, VMIG-1)
3.93%............... 06/16/97 2,500 2,500,000
------------
WASHINGTON -- 1.01%
Pilchuck Public Development
Corporation Revenue Bonds
(Holden-McDaniels Partners,
Project) AMT (Society National
Bank of Cleveland LOC)
4.25%(1)............ 06/07/97 2,300 2,300,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- --------- -------- ------------
<S> <C> <C> <C>
WASHINGTON (CONTINUED)
Washington State Housing Finance
Authority Single Family
Mortgage Revenue Bonds AMT
(FGIC Insurance) (VMIG-1)
3.75%............... 11/01/97 $ 3,600 $ 3,600,000
------------
5,900,000
------------
WEST VIRGINIA -- 2.23%
Grant County Municipal Solid
Waste Disposal IDRB (Virginia
Electric Power Company
Project) AMT (A-1, VMIG-1)
3.55%............... 08/21/97 10,000 10,000,000
West Virginia Economic
Development Authority IDRB
(North American Processing
Company Project) AMT (National
City Bank of Cleveland LOC)
4.10%(1)............ 06/07/97 3,050 3,050,000
------------
13,050,000
------------
WISCONSIN -- 0.97%
City of Janesville IDRB (Freedom
Plastics Incorporated Project)
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
4.15%(1)............ 06/07/97 3,200 3,200,000
City of Mequon IDRB (Johnson
Level Company Project) AMT
(Bank One Columbus LOC)
4.05%(1)............ 06/07/97 2,500 2,500,000
------------
5,700,000
------------
</TABLE>
- -----------------
(1) Variable rate
17
<PAGE> 18
MUNICASH PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $579,968,129*)............ 99.16% $579,968,129
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.84 4,893,002
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 482,186,419
MuniCash Shares and 102,843,395
MuniCash Dollar Shares
outstanding).................... 100.00% $584,861,131
======= ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($584,861,131 / 585,029,814).............. $1.00
=====
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same. Market value of securities
subject to federal alternative minimum tax is 69.44% of
the total market value.
(1) Variable rate.
- --------------------------------------------------------
</TABLE>
MUNICASH PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1997
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C>
1- 30 Days $477,397,034 82.3%
61- 90 Days 34,520,000 6.0
91-120 Days 24,950,000 4.3
121-150 Days 9,000,000 1.5
Over 150 Days 34,047,000 5.9
Average Weighted Maturity -- 31 Days
- --------------------------------------------------------
</TABLE>
------------------------------------------------------
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
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
MB Municipal Bond
PCRB Pollution Control Revenue Bond
RAN Revenue Anticipation Note
RB Revenue Bond
TECP Tax-Exempt Commercial Paper
TRAN Tax and Revenue Anticipation Note
</TABLE>
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, 1997.
See accompanying notes to financial statements.
18
<PAGE> 19
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Operations
Six Months Ended May 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MUNIFUND MUNICASH
PORTFOLIO PORTFOLIO
----------- ----------
<S> <C> <C>
Investment income:
Interest income.................................................................................. $12,551,654 $8,358,083
----------- -----------
Expenses:
Investment advisory fee.......................................................................... 613,129 395,200
Administration fee............................................................................... 613,129 395,200
Trustees' fees and officer's salary.............................................................. 45,800 25,974
Transfer agent fee............................................................................... 36,807 21,402
Custodian fee.................................................................................... 72,729 52,179
Shareholder computer access program.............................................................. 6,694 6,400
Legal and audit.................................................................................. 29,599 21,902
Registration expenses............................................................................ 15,378 14,630
Printing......................................................................................... 9,000 6,542
Other............................................................................................ 17,820 8,278
----------- -----------
1,460,085 947,707
Less fees waived................................................................................. (514,801) (541,310)
----------- -----------
945,284 406,397
Service Organization fees -- Dollar Shares....................................................... 74,553 128,448
----------- -----------
Total expenses.............................................................................. 1,019,837 534,845
----------- -----------
Net investment income............................................................................ 11,531,817 7,823,238
----------- -----------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions..................................................... (18,423) (2,000)
Increase in amortized market discount............................................................ 690 --
----------- -----------
Net loss on investments.......................................................................... (17,733) (2,000)
----------- -----------
Net increase in net assets resulting from operations............................................. $11,514,084 $7,821,238
=========== ===========
</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
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996 MAY 31, 1997 NOVEMBER 30, 1996
---------------- ----------------- ---------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................. $ 11,531,817 $ 24,029,392 $ 7,823,238 $ 14,292,759
Net gain (loss) on investments......... (17,733) 57,554 (2,000) 4,477
--------------- ------------- --------------- ---------------
Net increase in net assets resulting
from operations.................... 11,514,084 24,086,946 7,821,238 14,297,236
--------------- ------------- --------------- ---------------
Dividends to shareholders from net
investment income:
MuniFund Shares........................ (10,618,504) (22,454,678) -- --
MuniFund Dollar Shares................. (913,313) (1,574,714) -- --
MuniCash Shares........................ -- -- (6,144,620) (11,053,941)
MuniCash Dollar Shares................. -- -- (1,678,618) (3,238,818)
--------------- ------------- --------------- ---------------
Total dividends to shareholders...... (11,531,817) (24,029,392) (7,823,238) (14,292,759)
--------------- ------------- --------------- ---------------
Capital share transactions (at $1 per
share):
Proceeds from sale of shares........... 3,618,413,627 5,212,511,683 3,204,216,101 5,121,589,834
Value of shares issued in reinvestment
of dividends......................... 2,283,483 4,177,069 3,683,641 6,746,509
Cost of shares repurchased............. (3,392,018,405) (5,351,938,462) (3,006,108,112) (5,168,334,969)
--------------- ------------- --------------- ---------------
Increase (decrease) in net assets
derived from capital share
transactions....................... 228,678,705 (135,249,710) 201,791,630 (39,998,626)
--------------- ------------- --------------- ---------------
Total increase (decrease) in net
assets............................. 228,660,972 (135,192,156) 201,789,630 (39,994,149)
Net assets:
Beginning of period........................ 591,600,015 726,792,171 383,071,501 423,065,650
--------------- ------------- --------------- ---------------
End of period.............................. $ 820,260,987 $ 591,600,015 $ 584,861,131 $ 383,071,501
=============== ============= =============== ===============
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
MUNIFUND SHARES MUNIFUND DOLLAR SHARES
------------------------------------------------------------------- ---------------------------
SIX SIX
MONTHS MONTHS YEAR ENDED
ENDED YEAR ENDED NOVEMBER 30, ENDED NOVEMBER 30,
MAY 31, -------------------------------------------------------- MAY 31, -----------------
1997 1996 1995 1994 1993 1992 1997 1996 1995
-------- -------- -------- -------- ---------- ---------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------ ------ ------ ------ ------ ----- ------ ------
Income From Investment
Operations:
Net Investment
Income............... .0165 .0326 .0360 .0255 .0224 .0285 .0152 .0301 .0335
------- ------ ------ ------ ------ ------ ----- ------ ------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... (.0165) (.0326) (.0360) (.0255) (.0224) (.0285) (.0152) (.0301) (.0335)
------- ------ ------ ------ ------ ------ ----- ------ ------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ====== ====== ====== ====== ===== ====== ======
Total Return............ 3.35%(2) 3.31% 3.66% 2.58% 2.27% 2.89% 3.10%(2) 3.06% 3.41%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... 755,065 530,204 720,318 687,895 1,019,749 1,006,324 65,196 61,396 6,474
Ratio of Expenses to
Average Daily Net
Assets(1).............. .27%(2) .27% .27% .26% .25% .30% .52%(2) .52% .52%
Ratio of Net Investment
Income to Average Daily
Net Assets............. 3.31%(2) 3.26% 3.59% 2.53% 2.24% 2.86% 3.06%(2) 3.01% 3.34%
<CAPTION>
1994 1993 1992
------- ------- -------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Income From Investment
Operations:
Net Investment
Income............... .0230 .0199 .0260
------ ------ ------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... (.0230) (.0199) (.0260)
------ ------ ------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total Return............ 2.33% 2.02% 2.64%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... 2,785 6,783 1,414
Ratio of Expenses to
Average Daily Net
Assets(1).............. .51% .50% .55%
Ratio of Net Investment
Income to Average Daily
Net Assets............. 2.28% 1.99% 2.61%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.42% (annualized) for
the six months ended May 31, 1997 and 0 .42%, 0.41%, 0.41%, 0.41% and 0.41%,
respectively, for the years ended November 30, 1996, 1995, 1994, 1993 and
1992 for MuniFund Shares and 0.67% (annualized) for the six months ended May
31, 1997 and 0.67%, 0.66%, 0.66%, 0.66% and 0.66%, respectively, for the
years ended November 30, 1996, 1995, 1994, 1993 and 1992 for MuniFund Dollar
Shares.
(2) Annualized.
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>
MUNICASH SHARES MUNICASH DOLLAR SHARES
------------------------------------------------------------------- ---------------------------
SIX SIX
MONTHS MONTHS YEAR ENDED
ENDED YEAR ENDED NOVEMBER 30, ENDED NOVEMBER 30,
MAY 31, -------------------------------------------------------- MAY 31, -----------------
1997 1996 1995 1994 1993 1992 1997 1996 1995
-------- -------- -------- -------- ---------- ---------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------ ------ ------ ------ ------ ----- ------ ------
Income From Investment
Operations:
Net Investment
Income............... .0175 .0350 .0382 .0266 .0235 .0300 .0163 .0325 .0357
------- ------ ------ ------ ------ ------ ----- ------ ------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... (.0175) (.0350) (.0382) (.0266) (.0235) (.0300) (.0163) (.0325) (.0357)
------- ------ ------ ------ ------ ------ ----- ------ ------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ====== ====== ====== ====== ===== ====== ======
Total Return............ 3.57%(2) 3.56% 3.89% 2.69% 2.38% 3.04% 3.32%(2) 3.31% 3.64%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... 482,051 281,544 321,642 273,439 572,482 857,812 102,810 101,528 101,424
Ratio of Expenses to
Average Daily Net
Assets(1).............. .18%(2) .18% .18% .19% .20% .20% .43%(2) .43% .43%
Ratio of Net Investment
Income to Average Daily
Net Assets............. 3.52%(2) 3.50% 3.83% 2.59% 2.36% 2.90% 3.27%(2) 3.25% 3.58%
<CAPTION>
1994 1993 1992
------- ------- -------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Income From Investment
Operations:
Net Investment
Income............... .0241 .0210 .0275
------ ------ ------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... (.0241) (.0210) (.0275)
------ ------ ------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total Return............ 2.44% 2.13% 2.79%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... 99,688 95,225 81,669
Ratio of Expenses to
Average Daily Net
Assets(1).............. .44% .45% .45%
Ratio of Net Investment
Income to Average Daily
Net Assets............. 2.34% 2.11% 2.65%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.42% (annualized) for
the six months ended May 31, 1997 and 0.42%, 0.41%, 0.42%, 0.42% and 0.40%
respectively, for the years ended November 30, 1996, 1995, 1994, 1993 and
1992 for MuniCash Shares and 0.67% (annualized) for the six months ended May
31, 1997 and 0.67%, 0.66%, 0.67%, 0.67% and 0.65%, respectively, for the
years ended November 30, 1996, 1995, 1994, 1993 and 1992 for MuniCash Dollar
Shares.
(2) Annualized.
See accompanying notes to financial statements.
22
<PAGE> 23
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
two separate portfolios: MuniFund and MuniCash. The Intermediate Municipal Fund
Portfolio was liquidated on April 21, 1997.
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. Expenses,
other than the Service Organization fee, are allocated between the two classes
based on their relative assets. The Service Organization fee is an expense only
of the Dollar Shares.
B. Significant accounting policies are as follows:
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 at the
date of the financial statement and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates. The following is a summary of significant accounting policies
consistently followed by the Company in the preparation of its financial
statements.
Security Valuation: 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.
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.
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.
23
<PAGE> 24
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: .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.
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 reduced 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, and with respect to MuniCash, .18% of its average net
assets.
For the six months ended May 31, 1997 the Administrators and PIMC
voluntarily waived $514,801 of the advisory and administration fees payable to
them with respect to MuniFund and $541,310 with respect to MuniCash.
Service Organization fees of $15,051 were paid to affiliates of PNC Bank
for the six months ended May 31, 1997.
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.
24
<PAGE> 25
Notes to Financial Statements (Continued)
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO
------------------
SIX MONTHS
ENDED YEAR ENDED
MAY 31, NOVEMBER 30,
1997 1996
----------- ------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
MuniFund......................................... 3,443,290,390 4,919,582,550
MuniFund Dollar.................................. 175,123,237 292,929,133
Shares issued in reinvestment of dividends:
MuniFund......................................... 1,408,635 2,752,159
MuniFund Dollar.................................. 874,848 1,424,910
Shares repurchased:
MuniFund......................................... (3,219,821,639) (5,112,510,337)
MuniFund Dollar.................................. (172,196,766) (239,428,125)
------------------- --------------------
Net increase (decrease) in shares........... 228,678,705 (135,249,710)
=================== ====================
</TABLE>
<TABLE>
<CAPTION>
MUNICASH PORTFOLIO
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1997 NOVEMBER 30, 1996
------------------- --------------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
MuniCash......................................... 3,063,285,586 4,867,516,600
MuniCash Dollar.................................. 140,930,515 254,073,234
Shares issued in reinvestment of dividends:
MuniCash......................................... 2,643,543 4,710,660
MuniCash Dollar.................................. 1,040,098 2,035,849
Shares repurchased:
MuniCash......................................... (2,865,420,647) (4,912,328,000)
MuniCash Dollar.................................. (140,687,465) (256,006,969)
------------------- --------------------
Net increase (decrease) in shares........... 201,791,630 (39,998,626)
=================== ====================
</TABLE>
E. At November 30, 1996, capital loss carryovers, expiring at various times from
1997 to 2004, were available to offset possible future capital gains of the
respective portfolios, as follows: MuniFund, $70,086 and MuniCash, $166,683.
F. At May 31, 1997, net assets consisted of the following:
<TABLE>
<CAPTION>
MUNIFUND MUNICASH
------------ ------------
<S> <C> <C>
Paid-in capital................................................... $820,348,806 $585,029,814
Accumulated net realized loss on investments...................... (88,509) (168,683)
Amortized market discount......................................... 690 --
------------ ------------
Total Net Assets.................................................. $820,260,987 $584,861,131
============ ============
</TABLE>
25
<PAGE> 26
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
W. Bruce McConnel, III
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.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
Distributor
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
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
Investment Portfolios
Offered by
Municipal Fund for
Temporary Investment
LOGO
LOGO
Semi-Annual Report
to Shareholders
May 31, 1997
