<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 13, 1997
Dear Shareholder:
Enclosed is the Annual Report to Shareholders of Municipal Fund for
Temporary Investment for the year ended November 30, 1996.
I invite your attention to the Investment Adviser's Report which provides
interesting information on the economy and on the performance of our portfolios.
Provident Institutional Funds is committed to providing its shareholders
with quality service, liquidity, competitive returns and stability of principal.
Please contact your Provident Distributors, Inc. account representative or
our Client Service Center at (800) 821-7432 if you have any questions about
Municipal Fund for Temporary Investment or any of the other portfolios offered
by Provident Institutional Funds.
We thank you for the opportunity to service your investment needs.
Sincerely,
/s/ G. WILLLING PEPPER
-----------------------
G. Willing Pepper
Chairman
<PAGE> 2
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Annual Report of the Investment Adviser
In the past year, the twin issues of economic growth and inflation
dominated market movements and investor expectations. In a smaller way, budget
impasses, government shutdowns and a presidential election year also took their
turns as market forces. However, the preoccupation with accelerating business
activity and the belief that this would lead to higher inflation, were the key
issues on the minds of Federal Reserve policymakers and watchers alike.
As the year progressed, economic activity continued to rebound from last
year's very weak fourth quarter. The Federal Reserve's last easing of monetary
policy occurred in late January. First quarter economic reports showed a strong
rebound that peaked at mid-year at a growth rate of 4.5% in the nation's gross
domestic product. Strong employment reports, which showed solid new job creation
numbers, also contributed to a growing belief that the next Fed move would be to
tighten monetary policy. The July, August and September FOMC meetings were
thought to be particularly likely dates for such a move. However, a funny thing
happened each time a Fed move seemed imminent. A series of weaker than expected
economic reports and good news on inflation would suddenly dash the market's
expectations of higher short-term interest rates. One significant change that
did occur was a shift in the yield curve to a positive slope; that is, yields
were higher as maturities lengthened. For much of the previous year, the yield
curve was inverted based on expectations of continued Fed easing. In 1996, the
situation was reversed.
The tax-exempt money market experienced record growth during the twelve
months ended November 30, 1996. Assets flowed into the market during the first
four months of the year as a weak economy caused investor nervousness over the
direction of interest rates. Money fund assets remained in a narrow range of
$134-138 billion during the third quarter and ended November at $138.9 billion,
up 12% from last year.
Yields in the tax-exempt market were a function of supply and demand during
the year. Interest rates fell during the first quarter of 1996 due to a lack of
new supply. With Federal Reserve policy on hold, fund managers generally were
defensive, preferring shorter maturities in anticipation of higher yields in the
future. Rates rose in late June through September as new issuance of short-term
debt from states and municipalities caused dealer inventory to grow. Tax-exempt
securities were priced at attractive after-tax yields and portfolio managers
began to extend their maturities with longer-term investments. Yields declined
in November as it appeared the Federal Reserve would not raise interest rates
due to a weak economy.
Due to a relatively flat yield curve and expectations of higher rates in
the summer, MuniFund and MuniCash kept their average weighted maturities shorter
than the IBC/Donoghue's benchmark during the first six months of the year. As
new issuance grew and supply increased, the Funds took advantage of these higher
rates and extended investments out along the yield curve. Investments were
staggered into 1997 in anticipation of lower yields during the first three
months of the new year. As of the end of November, MuniFund's average weighted
maturity stood at 45 days while MuniCash's was 57 days. The two portfolios
continue to remain competitive within their peer groups. According to Lipper
Analytical Services, MuniCash was ranked #3 in total return for the year ended
November 30, 1996 versus 75 institutional tax-exempt funds. Both funds continue
their emphasis on high credit quality and liquidity with MuniFund maintaining
its AAA Standard & Poor's rating.
Yields in the longer-term tax-exempt market were volatile during the
twelve-month period ended November 30, 1996, as the economy exhibited mixed
signs of growth. The Bond Buyer Index (BBI) ranged between a low of 5.63% on
January 4 to a high of 6.34% on June 13 and ended the period at 5.54%. The
Revenue Bond Index (RBI) also moved in a wide band, hitting a low of 5.33% on
February 15 and reaching a high of 6.12% on June 13 while closing at 5.80%.
Municipal bond issuance totalled $158.2 billion, up 14% from $139.0 billion sold
for the year ended November 30, 1995. The average maturity of the Intermediate
Municipal Fund remained constant at 6.07 years. The Portfolio continues to
emphasize high quality issues and seeks to minimize volatility of the net asset
value by maintaining a lower average maturity and duration.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
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>
INTERMEDIATE LEHMAN BR OTHERS
MEASUREMENT PERIOD INTERMEDIATE MUNICIPAL DOLLAR STATE GENERAL
(FISCAL YEAR COVERED) MUNICIPAL SHARES SHARES OBLIGATION INDEX
<S> <C> <C> <C>
1986 10000 10000 10000
1987 10133 10108 9926
1988 10764 10711 10807
1989 11551 11467 11862
1990 12421 12303 12765
1991 13525 13365 13952
1992 14706 14500 15287
1993 15849 15589 16918
1994 15433 15140 16174
1995 17318 16952 18971
1996 18075 17650 20109
</TABLE>
- --------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION
During the fiscal year ended November 30, 1996, 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, 63.94% 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 1997, 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 1996.
- --------------------------------------------------------------------------------
3
<PAGE> 4
MUNIFUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1996
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C>
ALABAMA -- 2.81%
Calhoun County Economic
Development Council IDRB
(Craft Corporation Project) DN
(First Alabama Bank LOC)
(A-1+, VMIG-1)
3.75%(1)............ 12/07/96 $ 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)
3.55%(1)............ 12/07/96 10,000 10,000,000
City of Montgomery BMC Special
Care Facilities Authority (VHA
of Alabama) Series 1985A DN
(FNB Chicago LOC) (A-1,
VMIG-1)
3.60%(1)............ 12/07/96 2,570 2,570,000
------------
16,600,000
------------
ARIZONA -- 0.66%
Apache County IDA PCRB (Tucson
Electric Power Company) Series
1983C DN (Bankers Trust LOC)
(A-1+, VMIG-1)
3.55%(1)............ 12/07/96 400 400,000
Pima County IDA PCRB (Tucson
Electric Power Company) Series
1983A DN (Barclays Bank LOC)
(A-1+, VMIG-1)
3.60%(1)............ 12/07/96 3,500 3,500,000
------------
3,900,000
------------
CALIFORNIA -- 3.22%
Los Angeles County TRAN (Credit
Suisse LOC) (SP-1+, MIG-1)
4.50%............... 06/30/97 19,000 19,070,259
------------
19,070,259
------------
COLORADO -- 2.47%
Colorado Health Facilities
Authority (Boulder Community
Hospital Project) Series C DN
(Rabo Bank Nederland LOC)
(A-1+, VMIG-1)
3.45%(1)............ 12/07/96 3,400 3,400,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------- ------- -----------
<S> <C> <C>
COLORADO (CONTINUED)
Colorado Health Facilities
Authority (Sisters of Charity
Health Facilities) DN (Toronto
Dominion LOC) (A-1+, VMIG-1)
3.45%(1)............ 12/07/96 $ 2,300 $ 2,300,000
Colorado State General Fund TRAN
Series A (SP-1+, MIG-1)
4.50%............... 06/27/97 5,000 5,020,020
Moffat County PCRB (Tri-State)
Series 1984 DN (Ambac
Insurance) (A-1+, P-1)
3.50%(1)............ 12/07/96 3,900 3,900,000
------------
14,620,020
------------
FLORIDA -- 2.66%
Sunshine State Governmental
Financing Commission
(Government Financing Program)
TECP (National Westminster
LOC) (VMIG-1)
3.70%............... 12/13/96 7,895 7,895,000
Volusia County Health Facilities
Authority Hospital RB (S.W.
Volusia Healthcare
Corporation)
Series 1994A DN (First
Union Bank LOC) (A-1)
3.50%(1)............ 12/07/96 7,830 7,830,000
------------
15,725,000
------------
GEORGIA -- 7.21%
Atlanta Urban Residential
Finance Authority RB
(Residential Construction -
Summerhill Project) DN
(First Union Bank LOC) (A-1,
VMIG-1)
3.60%(1)............ 12/07/96 3,850 3,850,000
Burke County IDA PCRB (Georgia
Power & Light Company Vogtle
Project) DN (A-1, VMIG-1)
4.10%(1)............ 12/01/96 4,600 4,600,000
Cobb County Housing Authority
Multifamily Housing RB (Post
Bridge Project) DN (Federal
National Mortgage Association
LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/07/96 10,450 10,450,000
</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)
Cobb County Housing Authority
Multifamily Housing RB (Post
Mill
Project) Series 1995 DN (Federal
National Mortgage Association
LOC)
(A-1+, VMIG-1)
3.50%(1)............ 12/07/96 $ 6,280 $ 6,280,000
Dekalb County Housing Authority
Multifamily Housing RB
(Clairmont Crest Project) DN
(Federal National Mortgage
Association LOC) (A-1+,
VMIG-1)
3.60%(1)............ 12/07/96 4,000 4,000,000
Gwinett County Housing Authority
Multifamily Housing RB (Post
Corners Project) DN (Federal
National Mortgage Association
LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/07/96 5,000 5,000,000
Rosewell Housing Authority
Multifamily RB (Azalea
Project) DN (Federal National
Mortgage Association LOC)
(A-1+, VMIG-1)
3.50%(1)............ 12/07/96 3,000 3,000,000
Rosewell Housing Authority
Multifamily RB (Post Canyon
Project) DN (Federal National
Mortgage Association LOC)
(A-1+, VMIG-1)
3.50%(1)............ 12/07/96 5,500 5,500,000
------------
42,680,000
------------
HAWAII -- 0.73%
Hawaii State Department of
Budget and Finance Special
Purpose RB (Kaiser Permanente)
(A-1+)
3.65%............... 03/03/97 4,300 4,300,000
------------
ILLINOIS -- 14.75%
Illinois Development Finance
Authority (Chicago Symphony
Project) DN (A-1+, VMIG-1)
3.55%(1)............ 12/07/96 10,000 10,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------- ------- -----------
<S> <C> <C>
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) (Canadian
Imperial Bank LOC) (A-1+,
VMIG-1)
3.85%............... 02/13/97 23,500 23,500,000
ILLINOIS (CONTINUED)
Illinois Educational Facilities
Authority (Pooled Financing)
TECP (Northern Trust LOC)
(A-1+)
3.70%............... 01/24/97 $ 7,509 $ 7,509,000
Illinois Health Facilities
Authority (Carle Foundation
Project) DN (Northern Trust
LOC) (VMIG-1)
3.60%(1)............ 12/07/96 5,950 5,950,000
Illinois Health Facilities
Authority (Pooled Financing)
Series 1985C DN (FNB Chicago
LOC) (VMIG-1)
3.50%(1)............ 12/07/96 14,000 14,000,000
Illinois Health Facilities
Authority (University of
Chicago Hospital Project)
Series 1994C DN (Comerica Bank
LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/07/96 5,300 5,300,000
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation Project)
(VMIG-1)
3.75%............... 02/28/97 5,000 5,000,000
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 (Lutheran
Institute)
Series 1985 DN (Credit Suisse
LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/30/96 1,000 1,000,000
Illinois Health Facilities
Authority Revolving Fund
Pooled Financing (University
of Chicago Project) (A-1+,
VMIG-1)
3.75%............... 01/30/97 5,000 5,000,000
------------
87,259,000
------------
</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>
INDIANA -- 1.52%
Indiana Employment Commission
IDA (Miles Laboratories) DN
(Barclays Bank LOC) (A-1+)
3.60%(1)............ 12/01/96 $ 7,000 $ 7,000,000
Indiana Health Facilities
Financing Authority (Daughters
of Charity) Series B DN
(VMIG-1)
3.50%(1)............ 12/01/96 2,000 2,000,000
------------
9,000,000
------------
IOWA -- 0.68%
Council Bluffs PCRB (Iowa-
Illinois Gas & Electric
Company Project) DN (A-1+,
VMIG-1)
3.60%(1)............ 12/07/96 4,050 4,050,000
------------
LOUISIANA -- 3.65%
Plaquemines Port, Harbor and
Terminal District Marine
Terminal Facilities Revenue
Refunding Bonds (Electro-Coal
Transfer Corporation Project)
(P-1)
3.50%............... 03/12/97 21,600 21,600,000
------------
MARYLAND -- 8.11%
Maryland Health & Higher
Education Facilities Authority
(Capitol College Project) DN
(FNB Maryland LOC) (VMIG-1)
3.65%(1)............ 12/07/96 8,000 8,000,000
Maryland Health & Higher
Education Facilities Authority
(Daughters of Charity National
Health System) Series 1994 DN
(VMIG-1)
3.50%(1)............ 12/07/96 7,500 7,500,000
Maryland State Economic
Development Corporation
Revenue Bonds (Pooled
Financing) DN (NationsBank
LOC) (A-1, VMIG-1)
3.55%(1)............ 12/07/96 10,000 10,000,000
Maryland State IDA (McDonough
School Income Facility) DN
(FNB Maryland LOC) (A-1,
VMIG-1)
3.77%(1)............ 12/07/96 5,000 5,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------- ------- -----------
<S> <C> <C> <C>
MARYLAND (CONTINUED)
Washington Suburban Sanitary
District BAN DN (Westdeutsche
Landesbank Girozentrale LOC)
(SP-1+, VMIG-1)
3.50%(1)............ 12/07/96 $17,500 $ 17,500,000
------------
48,000,000
------------
MASSACHUSETTS -- 0.19%
Massachusetts Health &
Educational Facilities
Authority RB (Capital Asset
Program Issue) Series C DN
(MBIA Insurance) (A-1+,
VMIG-1)
4.05%(1)............ 12/01/96 1,100 1,100,000
------------
MISSISSIPPI -- 0.35%
Jackson County Port Facility
(Chevron, Inc.) Series 1993 DN
(VMIG-1)
4.15%(1)............ 12/01/96 2,100 2,100,000
------------
MISSOURI -- 1.72%
Missouri Health & Educational
Facilities Authority RB
(Washington University) Series
B DN (A-1+, VMIG-1)
4.20%(1)............ 12/01/96 1,200 1,200,000
Missouri Health & Educational
Facilities Authority RB
(Sisters of Mercy Health
System) DN (A-1+, VMIG-1)
3.40%(1)............ 12/07/96 9,000 9,000,000
------------
10,200,000
------------
NEBRASKA -- 0.17%
Nebraska Higher Education Loan
Program Student Loan Program
Revenue Bonds Series 1985D DN
(Student Loan Marketing
Association LOC) (VMIG-1)
3.50%(1)............ 12/07/96 1,000 1,000,000
------------
NEVADA -- 0.85%
Clark County IDRB (Nevada Power
Company Project) DN (Barclays
Bank LOC) (A-1+, VMIG-1)
3.55%(1)............ 12/07/96 5,000 5,000,000
------------
</TABLE>
- ---------------------------------------------------------
(1) Variable rate
6
<PAGE> 7
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C>
NEW HAMPSHIRE -- 0.96%
New Hampshire Health & Higher
Education Facilities Authority
(VHA of New England Capital
Asset Financing Program)
Series 1985B DN (FNB Chicago
LOC) (A-1, VMIG-1)
3.55%(1)............ 12/07/96 $ 600 $ 600,000
New Hampshire Health & Higher
Education Facilities Authority
(VHA of New England Capital
Asset Financing Program)
Series 1985F DN (FNB Chicago
LOC) (A-1, VMIG-1)
3.55%(1)............ 12/07/96 5,050 5,050,000
------------
5,650,000
------------
NEW JERSEY -- 2.89%
New Jersey Sports and Exhibition
Authority Series 1992C DN
(Barclays Bank LOC) (A-1+,
VMIG-1)
3.20%(1)............ 12/07/96 7,400 7,400,000
New Jersey Turnpike Authority RB
Series 1991D DN (Swiss Bank
LOC) (A-1+, VMIG-1)
3.30%(1)............ 12/07/96 3,200 3,200,000
Salem County Industrial
Financing Authority PCRB (E.I.
Dupont) Series A DN (Lloyds
Bank Ltd. LOC) (A-1+, P-1)
3.65%(1)............ 12/07/96 6,500 6,500,000
------------
17,100,000
------------
NEW YORK -- 6.57%
New York City GO Series A-7 DN
(Morgan Guaranty LOC) (A-1+,
VMIG-1)
4.00%(1)............ 12/01/96 800 800,000
New York City GO Series F-6 DN
(Morgan Guaranty LOC) (A-1+,
VMIG-1)
3.70%(1)............ 12/07/96 3,000 3,000,000
New York City Municipal Water
Finance Authority DN (MBIA
Insurance) (A-1+, VMIG-1)
4.10%(1)............ 12/01/96 1,000 1,000,000
New York City RAN Series A
(SP-1+, MIG-1)
4.50%............... 04/15/97 25,000 25,072,590
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C>
NEW YORK (CONTINUED)
New York City RAN Series B
(Canadian Imperial Bank LOC)
(SP-1+, MIG-1)
4.50%............... 06/30/97 $ 5,000 $ 5,021,140
New York Local Government
Assistance Corporation Series
1994B DN (Credit Suisse LOC)
(A-1+, VMIG-1)
3.30%(1)............ 12/07/96 2,400 2,400,000
New York Local Government
Assistance Corporation Series
1995F DN (Toronto Dominion
LOC) (A-1+, VMIG-1)
3.30%(1)............ 12/07/96 700 700,000
New York State Energy Research &
Development Authority (Niagara
Mohawk Power) Series 1985C DN
(Toronto Dominion LOC) (P-1,
VMIG-1)
4.20%(1)............ 12/01/96 700 700,000
New York State Thruway General
Revenue Series B DN (FGIC
Insurance)(A-1+, VMIG-1)
4.15%(1)............ 12/01/96 200 200,000
------------
38,893,730
------------
NORTH CAROLINA -- 6.06%
Charlotte-Mecklenburg Hospital
Authority Health Care RB
Series 1996B DN (NationsBank
LOC) (A-1, VMIG-1)
3.50%(1)............ 12/07/96 9,350 9,350,000
Mecklenburg County GO Series
1996C DN (NationsBank LOC)
(A-1, VMIG-1)
3.45%(1)............ 12/07/96 15,225 15,225,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) DN (A-1+, VMIG-1)
3.40%(1)............ 12/07/96 3,800 3,800,000
North Carolina Medical Care
Community Hospital (Pooled
Financing Project) Series A DN
(VMIG-1)
4.05%(1)............ 12/01/96 6,900 6,900,000
</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>
NORTH CAROLINA (CONTINUED)
Wake County IDA PCRB (Carolina
Power & Light Company Project) DN
(VMIG-1)
3.65%(1)............ 12/07/96 $ 600 $ 600,000
------------
35,875,000
------------
OHIO -- 0.49%
Clermont Hospital Facilities RB
(Mercy Health Care System,
Providence of Cincinnati)
Series 1985B DN (Morgan
Guaranty LOC) (A-1+, VMIG-1)
3.55%(1)............ 12/07/96 1,000 1,000,000
Montgomery County Economic
Development Authority Revenue
Bonds (Dayton Art Institute
Project) DN (National City
Bank of Cleveland LOC) (A-1,
VMIG-1)
3.60%(1)............ 12/07/96 1,900 1,900,000
------------
2,900,000
------------
OKLAHOMA -- 0.80%
Oklahoma Water Resources Board
State Loan Program Revenue
Bonds (Swiss Bank LOC) (A-1+)
3.70%............... 03/03/97 4,730 4,730,000
------------
PENNSYLVANIA -- 1.12%
Allegheny County Hospital
Development Authority
(Allegheny County Hospital
Project) Series 1995B DN
(Morgan Guaranty LOC) (A-1+,
VMIG-1)
3.55%(1)............ 12/07/96 3,800 3,800,000
City of York, General Authority
Pooled Financing RB Series
1996 DN (First Union Bank LOC)
(A-1, VMIG-1)
3.50%(1)............ 12/07/96 2,800 2,800,000
------------
6,600,000
------------
TENNESSEE -- 7.28%
Clarksville Public Building
Authority (Pooled Financing
Tennessee Municipal Bond Fund)
Series 1995 DN (NationsBank
LOC) (A-1)
3.55%(1)............ 12/07/96 5,000 5,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C>
TENNESSEE (CONTINUED)
Clarksville Public Building
Authority (Pooled Loan Finance
Service) Series 1990 DN (MBIA
Insurance) (A-1+, VMIG-1)
3.50%(1)............ 12/07/96 $ 300 $ 300,000
Knox County Health, Educational
& Housing Facilities Authority
(Mercy Health Care) Series B
DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
3.55%(1)............ 12/07/96 1,745 1,745,000
Knox County Health, Educational
& Housing Facilities Authority
(Mercy Health Care) Series
1994B DN (A-1+, VMIG-1)
3.55%(1)............ 12/07/96 2,200 2,200,000
Knox County IDA (Weisgarber
Partners) DN (Credit Suisse
LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/16/96 1,600 1,600,000
Knox County IDRB (Professional
Plaza Project) DN (Credit
Suisse LOC) (VMIG-1)
3.50%(1)............ 12/30/96 2,800 2,800,000
Memphis GO Series A DN
(Westdeutsche Landesbank
Girozentrale LOC) (A-1+,
VMIG-1)
3.60%(1)............ 12/07/96 2,500 2,500,000
Metropolitan Nashville Airport
Improvement Bonds DN (Credit
Locale de France LOC) (A-1+,
VMIG-1)
3.50%(1)............ 12/07/96 11,900 11,900,000
Metropolitan Nashville Airport
Improvement Bonds DN (Societe
Generale LOC) (A-1+, VMIG-1)
3.50%(1)............ 12/07/96 3,000 3,000,000
Montgomery County Public
Building Authority Pooled
Financing GO (Montgomery
County Loan Pool) DN
(NationsBank LOC) (A-1,
VMIG-1)
3.55%(1)............ 12/07/96 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>
TENNESSEE (CONTINUED)
Montgomery County Public Building
Authority Pooled Financing GO
(Tennessee County Loan Pool)
Series 1995 DN (NationsBank LOC)
(A-1, VMIG-1)
3.55%(1)............ 12/07/96 $ 7,000 $ 7,000,000
------------
43,045,000
------------
TEXAS -- 8.75%
Bexar County Multifamily Housing
Bonds (Fountainhead
Apartments) DN (Federal
National Mortgage Association
LOC) (A-1+, VMIG-1)
3.65%(1)............ 12/07/96 6,275 6,275,000
Board of Regents Texas A & M
University TECP (A-1+, P-1)
3.60%............... 12/16/96 7,000 7,000,000
City of Houston Water & Sewer
System Series A TECP (A-1+,
P-1)
3.50%............... 03/12/97 7,000 7,000,000
Harris County Health Facilities
Development Corporation RB
(Methodist Hospital) DN (A-1+,
VMIG-1)
4.10%(1)............ 12/01/96 6,000 6,000,000
Harris County Toll Road Series G
DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
3.55%(1)............ 12/07/96 2,800 2,800,000
Harris County Toll Road
Unlimited Tax and Subordinate
Lien RB Series 1994H DN (A-1+,
VMIG-1)
3.55%(1)............ 12/07/96 3,800 3,800,000
Houston GO Series A TECP
(Toronto Dominion LOC) (A-1+,
P-1)
3.55%............... 03/13/97 11,000 11,000,000
Nueces County Health Facilities
Authority (Driscoll Children's
Hospital) DN (Barclays Bank
LOC) (VMIG-1)
3.55%(1)............ 12/07/96 2,750 2,750,000
Port of Port Arthur Navigation
District PCRB (Texaco) Series
1994 DN (A-1, VMIG-1)
4.20%(1)............ 12/01/96 600 600,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- ------- ------------
<S> <C> <C>
TEXAS (CONTINUED)
Texas TRAN (SP-1+, MIG-1)
4.75%............... 08/29/97 $ 4,500 $ 4,525,132
------------
51,750,132
------------
UTAH -- 3.83%
Intermountain Power Agency Power
Supply Revenue and Refunding
Bonds (Swiss Bank LOC) (A-1+,
VMIG-1)
3.60%............... 01/23/97 7,550 7,550,000
Salt Lake City PCRB (British
Petroleum) DN (A-1+, VMIG-1)
4.20%(1)............ 12/01/96 1,100 1,100,000
Salt Lake City PCRB (Pooled
Hospital Financing) DN (A-1+,
VMIG-1)
3.55%(1)............ 12/07/96 14,000 14,000,000
------------
22,650,000
------------
VERMONT -- 1.99%
Vermont Educational & Health
Buildings Finance Agency
Hospital RB (VHA of New
England Capital Asset
Financing Program) Series
1985C DN (FNB Chicago LOC)
(A-1)
3.55%(1)............ 12/07/96 1,800 1,800,000
Vermont GO TECP (Toronto
Dominion LOC) (A-1+, P-1)
3.70%............... 01/24/97 10,000 10,000,000
------------
11,800,000
------------
VIRGINIA -- 1.05%
Louisa County IDA (Pooled
Financing) DN (NationsBank
LOC) (A-1, VMIG-1)
3.55%(1)............ 12/07/96 1,500 1,500,000
Lynchburg IDA Hospital Revenue
Bonds (VHA Mid-Atlantic States
Capital Asset Fund) Series
1985G DN (FNB Chicago LOC)
(A-1, VMIG-1)
3.60%(1)............ 12/07/96 4,700 4,700,000
------------
6,200,000
------------
WASHINGTON -- 3.83%
King County Sewer Revenue Notes
Series A TECP (A-1, P-1)
3.70%............... 12/12/96 15,000 15,000,000
</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>
WASHINGTON (CONTINUED)
Washington Public Power Supply
Project DN (Bank of America
LOC) (A-1, VMIG-1)
3.65%(1)............ 12/07/96 $ 7,660 $ 7,660,000
------------
22,660,000
------------
WEST VIRGINIA -- 0.51%
Marshall County PCRB (PPG
Industries Project) DN (A-1,
VMIG-1)
3.65%(1)............ 12/07/96 3,000 3,000,000
------------
WISCONSIN -- 0.84%
City of Oak Creek PCRB
(Wisconsin Electric Power) DN
(VMIG-1)
3.65%(1)............ 12/07/96 800 800,000
Wisconsin Health Facilities
Authority RB (Daughters of
Charity St. Mary's Hospital)
DN (VMIG-1)
3.50%(1)............ 12/07/96 4,150 4,150,000
------------
4,950,000
------------
WYOMING -- 1.15%
Sweetwater County PCRB (Chevron
Project) (A-1+, VMIG-1)
3.80%............... 06/15/97 6,850 6,850,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $590,858,141*)............ 99.87%.. $590,858,141
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.13 741,874
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 530,269,784
MuniFund Shares and 61,400,317
MuniFund Dollar Shares
outstanding).................... 100.00%.. $591,600,015
======== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($591,600,015 / 591,670,101).............. $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, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C>
1- 30 days $408,110,000 69.1%
31- 60 days 25,059,000 4.3
61- 90 days 33,500,000 5.7
91-120 days 48,630,000 8.2
121-150 days 25,000,000 4.2
over 150 days 50,350,000 8.5
</TABLE>
Average Weighted Maturity -- 45 days
See accompanying notes to financial statements.
10
<PAGE> 11
MUNICASH PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1996
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C>
ALABAMA -- 1.83%
Phenix IDRB Enviromental
Improvement Authority (Mead
Coated Board Project) Series A
AMT (Mitsubishi Bank LOC)
(A-1)
4.20%(1)............ 12/01/96 $ 7,000 $ 7,000,000
------------
ARIZONA -- 2.71%
Cochise County Pollution Control
Solid Waste Disposal
Facilities RB (Arizona
Electric Power Cooperative
Incorporated Project) AMT
(National Rural Utilities LOC)
(A-1+, VMIG-1)
3.70%............... 03/01/97 5,200 5,200,000
Phoenix IDRB (Leggett & Platt
Incorporated Project) AMT
(Wachovia Bank LOC)
3.65%(1)............ 12/07/96 5,170 5,170,000
------------
10,370,000
------------
ARKANSAS -- 0.52%
Independence County IDRB
(Townsends of Arkansas
Incorporated Project) AMT
(Rabo Bank Nederland LOC)
3.55%(1)............ 12/07/96 2,000 2,000,000
------------
CALIFORNIA -- 4.71%
California RAN Series 1996-97
(SP-1+, MIG-1)
4.50%............... 06/30/97 10,000 10,029,463
California Solid Waste Disposal
RB (Shell Oil Company Project)
AMT (P-1)
4.20%(1)............ 12/01/96 1,000 1,000,000
Los Angeles County TRAN (Credit
Suisse LOC)
(SP-1+, VMIG-1)
4.50%............... 06/30/97 7,000 7,023,930
------------
18,053,393
------------
COLORADO -- 4.01%
City & County of Denver Airport
System Subordinated Revenue
Bonds AMT (Sanwa Bank LOC)
(A-1, P-1)
3.70%............... 01/31/97 9,070 9,070,000
Colorado Housing Finance
Authority IDRB (Dawn Baker Boy
Incorporated Project) AMT (FNB
Chicago LOC)
3.80%(1)............ 12/07/96 1,255 1,255,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------- ------- -----------
<S> <C> <C>
COLORADO (CONTINUED)
Colorado State General Fund TRAN
Series A (SP-1+)
4.50%............... 06/27/97 $ 5,000 $ 5,017,823
------------
15,342,823
------------
GEORGIA -- 5.66%
Bulloch County Development
Authority IDRB (Gold Kist
Incorporated Project)
Series 1995 AMT
(Wachovia Bank LOC)
3.65%(1)............ 12/07/96 4,700 4,700,000
Burke County Development
Authority PCRB (Oglethorpe
Power Corporation Vogtile
Project) Series 1994A DN
(A-1, VMIG-1)
4.10%(1)............ 12/01/96 8,700 8,700,000
Cobb County IDRB (John W. Rooker
Company Project) AMT (First
Union Bank LOC)
3.75%(1)............ 12/07/96 2,300 2,300,000
Decatur County & Bainbridge IDRB
(Thomas & Betts Corporation
Project) AMT (Wachovia Bank
LOC)
3.65%(1)............ 12/07/96 3,500 3,500,000
Haralson County Development
Authority IDRB (Gold Kist
Incorporated Project)
Series 1995 AMT
(Wachovia Bank LOC)
3.65%(1)............ 12/07/96 2,500 2,500,000
------------
21,700,000
------------
ILLINOIS -- 17.85%
Belvidere IDRB (R&D Thiel
Incorporated Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
3.80%(1)............ 12/07/96 1,890 1,890,000
Chicago Gas Supply RB (Peoples
Gas Light & Coke) AMT (A-1+,
VMIG-1)
3.85%............... 12/02/96 7,000 7,000,000
Chicago IDRB (Enterprise Center
IX Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.80%(1)............ 12/07/96 4,750 4,750,000
Chicago IDRB (Enterprise Center
VII Project) AMT (ABN-AMRO
Bank N.V. LOC) (A-1+)
3.80%(1)............ 12/07/96 7,200 7,200,000
</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 Development Finance
Authority (Azteca Foods Project
Incorporated) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.80%(1)............ 12/07/96 $ 4,200 $ 4,200,000
Illinois Development Finance
Authority IDRB (Bhagvan H.
Patel Project) AMT (Bank One
Columbus LOC) (A-1+)
3.65%(1)............ 12/07/96 2,405 2,405,000
Illinois Development Finance
Authority IDRB (Big Bolt
Corporation Project) AMT
(ABN-AMRO Bank N.V. LOC)
4.00%(1)............ 12/07/96 2,000 2,000,000
Illinois Development Finance
Authority IDRB (Henry Valve
Company Project) Series 1995
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.80%(1)............ 12/07/96 4,780 4,780,000
Illinois Development Finance
Authority IDRB (Prairie
Packaging Incorporated
Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.80%(1)............ 12/07/96 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+)
3.90%(1)............ 12/07/96 3,650 3,650,000
Illinois Development Finance
Authority PCRB (Amoco Oil
Company Project) Series 1994
DN (A-1+, VMIG-1)
4.15%(1)............ 12/01/96 1,400 1,400,000
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation Project)
(A-1+, VMIG-1)
3.85%............... 10/15/97 5,000 5,000,000
Lake County IDRB (Northpoint
Project) AMT (Bank One
Columbus LOC) (A-1+)
3.70%(1)............ 12/07/96 6,000 6,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C>
ILLINOIS (CONTINUED)
Naperville Economic Development
Authority (Independence
Village Associates) DN
(National City Bank LOC)
3.80%(1)............ 12/07/96 2,995 2,995,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) AMT (Mellon LOC)
(VMIG-1)
3.70%(1)............ 12/07/96 $ 4,000 $ 4,000,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1992 AMT
(Mellon LOC) (VMIG-1)
3.70%(1)............ 12/07/96 3,200 3,200,000
Village of North Aurora IDRB
(Oberweis Dairy Incorporated
Project) Series 1995 AMT
(ABN-AMRO Bank N.V. LOC) (A-1,
VMIG-1)
3.80%(1)............ 12/07/96 2,900 2,900,000
------------
68,370,000
------------
INDIANA -- 3.81%
Greenwood City Economic
Development Refunding Revenue
Bonds (Endress & Hauser
Incorporated Project) AMT
(Deutsche Bank LOC)
3.65%(1)............ 12/07/96 4,000 4,000,000
Indiana Development Finance
Authority IDRB (Cives
Corporation Project) Series
1992 AMT (Wachovia Bank LOC)
(A-1+)
3.65%(1)............ 12/07/96 3,600 3,600,000
Indiana Development Finance
Authority IDRB (Enterprise
Center V Project) Series 1992
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.80%(1)............ 12/07/96 5,000 5,000,000
Jasper County Economic
Development RB (Wabash Valley
Produce Project) AMT (Bank One
Columbus LOC)
3.65%(1)............ 12/07/96 2,000 2,000,000
------------
14,600,000
------------
</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>
KENTUCKY -- 1.14%
City of Maysville Solid Waste
Disposal Facilities Revenue
Bonds (Inland Container
Corporation Project) Series
1992 AMT (A-1, P-1)
3.70%............... 01/31/97 $ 2,800 $ 2,800,000
3.65%............... 03/21/97 1,565 1,565,000
------------
4,365,000
------------
MAINE -- 0.78%
City of Portland Revenue
Obligation Securities (Barber
Foods Project) Series 1996 AMT
(Society National Bank of
Cleveland LOC)
3.80%(1)............ 12/07/96 3,000 3,000,000
------------
MARYLAND -- 3.29%
Baltimore IDRB (Wicomico
Industrial Center Facility)
AMT (First Union Bank LOC)
(A-1)
3.65%(1)............ 12/01/96 2,000 2,000,000
Maryland State Economic
Development Corporation RB
(Atlantic Pharmaceutical
Services Incorporated) AMT
(FNB Maryland LOC) (A-1)
3.77%(1)............ 12/07/96 5,500 5,500,000
Wicomico County Economic
Development RB (Plymouth Tube
Company Project) AMT (FNB
Chicago LOC)
(VMIG-1)
3.75%(1)............ 12/07/96 5,100 5,100,000
------------
12,600,000
------------
MICHIGAN -- 1.44%
Michigan State Strategic Fund RB
(Pioneer Metal Finishing
Company Project) AMT (National
City Bank of Cleveland LOC)
(A-1)
3.75%(1)............ 12/07/96 5,500 5,500,000
------------
MISSISSIPPI -- 0.68%
Jackson County Industrial Sewage
Facilities RB (Chevron
Incorporated Project) AMT
4.25%(1)............ 12/01/96 2,600 2,600,000
------------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C>
MISSOURI -- 1.04%
St. Louis Health & Education
Authority (Sisters of Mercy
Health System Project) Series
1992B DN (A-1+, VMIG-1)
3.55%(1)............ 12/07/96 $ 4,000 $ 4,000,000
------------
NEBRASKA -- 2.79%
Stanton County Nebraska IDRB
(Nucor Corporation Project)
AMT (A-1+, P-1)
3.65%(1)............ 12/07/96 10,700 10,700,000
------------
NEVADA -- 0.05%
Clark County Airport System
Revenue Bonds Series 1995 AMT
(Toronto Dominion LOC) (A-1+,
VMIG-1)
3.60%(1)............ 12/07/96 200 200,000
------------
NEW HAMPSHIRE -- 1.96%
New Hampshire Solid Waste
Disposal IDRB (The United
Illuminating Company Project)
AMT (Barclays Bank LOC)
(VMIG-1)
3.75%............... 03/03/97 3,000 3,000,000
New Hampshire State Housing
Finance Authority Single
Family Housing Bonds AMT (FGIC
Insurance) (VMIG-1)
3.65%............... 01/15/97 4,500 4,500,000
------------
7,500,000
------------
NEW JERSEY -- 2.80%
Essex County Public Improvement
Authority RB (County Asset
Sale Project) DN (Morgan
Guaranty LOC) (VMIG-1)
3.25%(1)............ 12/07/96 2,500 2,500,000
Middlesex County BAN
3.90%............... 06/25/97 1,000 1,000,272
Morris County BAN
(SP-1+, VMIG-1)
3.97%............... 08/08/97 3,000 3,000,780
New Jersey State Economic
Development Authority RB
(Hillcrest Health Services
Systems Project) DN
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
3.60%(1)............ 12/07/96 1,700 1,700,000
</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)
Parsippany Troy Hills Township BAN
(VMIG-1)
4.00%............... 05/07/97 $ 1,500 $ 1,502,239
Princeton Township BAN
4.375%.............. 08/27/97 1,000 1,004,120
------------
10,707,411
------------
NEW YORK -- 2.87%
New York City Municipal Water
Finance Authority Water and
Sewer System RB Series 1994G
DN (FGIC Insurance) (A-1+,
VMIG-1)
4.00%(1)............ 12/01/96 5,000 5,000,000
New York City Municipal Water
TECP (Canadian Imperial Bank
LOC) (A-1+, P-1)
3.60%............... 01/13/97 6,000 6,000,000
------------
11,000,000
------------
NORTH CAROLINA -- 3.08%
Charlotte-Mecklenburg Hospital
Authority (North Carolina
Health Care Service) Series D
DN (NationsBank LOC)
(A-1, VMIG-1)
3.40%(1)............ 12/07/96 2,200 2,200,000
North Carolina Medical Care
Community Hospital (Baptist
Hospitals Project) DN
(Wachovia Bank LOC)
(A-1+, VMIG-1)
3.40%(1)............ 12/07/96 3,300 3,300,000
Person County Industrial
Facilities Authority PCRB
(Carolina Power & Light)
Series 1992A DN
(A-1, VMIG-1)
3.65%(1)............ 12/07/96 1,200 1,200,000
Wake County IDA PCRB (Carolina
Power & Light Company Project)
Series 1985C DN (Sumitomo Bank
LOC) (A-1+, VMIG-1)
3.65%(1)............ 12/07/96 900 900,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
Wake County Industrial
Facilities & Pollution Control
Finance Authority PCRB
(Carolina Power & Light
Company Project) Series 1985A
DN (Credit Suisse LOC)
(A-1+, P-1)
3.45%(1)............ 12/07/96 $ 4,200 $ 4,200,000
------------
11,800,000
------------
OHIO -- 6.80%
Cuyahoga County Hospital RB (St.
Lukes Hospital Project) DN
(FNB Chicago LOC) (VMIG-1)
3.55%(1)............ 12/07/96 3,300 3,300,000
Franklin County Hospital
Improvement RB (U.S.
Healthcare Corporation
Project) DN (Morgan Guaranty
LOC) (VMIG-1)
3.60%(1)............ 12/07/96 6,500 6,500,000
Hamilton County BAN
4.20%............... 06/13/97 7,480 7,491,441
Ohio Higher Education Facilities
Authority (Oberlin College
Project) DN (Bank of Tokyo
LOC) (A-1+)
3.55%(1)............ 12/07/96 1,800 1,800,000
Ohio State University General
Receipts Bonds Series 1992B DN
(A-1+, VMIG-1)
3.40%(1)............ 12/07/96 1,150 1,150,000
Ohio Water Development Revenue
Refunding Series A (Timken
Company Project) DN (Credit
Suisse LOC)
(A-1+, P-1)
3.60%(1)............ 12/07/96 2,800 2,800,000
Rocky River BAN
4.15%............... 09/05/97 1,000 1,002,047
Stark County BAN
4.12%............... 06/19/97 2,000 2,002,312
------------
26,045,800
------------
OKLAHOMA -- 0.78%
Oklahoma Water Resources Board
State Loan Program Revenue
Bonds (Swiss Bank LOC) (A-1+)
3.70%............... 03/03/97 3,000 3,000,000
------------
</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>
OREGON -- 1.04%
Oregon State Housing Authority
Community Services Department
Mortgage Revenue Bonds (Single
Family Mortgage Program)
Series C AMT (Escrowed in US
Treasuries LOC) (VMIG-1)
3.85%............... 05/08/97 $ 4,000 $ 4,000,000
------------
RHODE ISLAND -- 0.68%
Rhode Island Housing & Mortgage
Finance Corporation
Convertible Home Ownership
Opportunity Bonds Series 19-D
AMT (Societe Generale LOC)
(A-1+, VMIG-1)
3.55%............... 01/30/97 2,600 2,600,000
------------
SOUTH CAROLINA -- 1.57%
Chesterfield County IDRB (Culp
Incorporated Project) AMT
(Wachovia Bank LOC)
3.65%(1)............ 12/07/96 6,000 6,000,000
------------
TENNESSEE -- 4.20%
Chattanooga IDRB (Southern
Foundry Supply Company
Project) AMT (Sun Bank LOC)
3.65%(1)............ 12/07/96 2,000 2,000,000
City of Henderson IDRB (Premier
Manufacturing Corporation
Project) AMT (National City
Bank LOC)
3.75%(1)............ 12/07/96 5,400 5,400,000
Jackson City IDRB (Quadion
Corporation Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
3.75%(1)............ 12/07/96 3,700 3,700,000
Tennessee Housing Development
Authority Home Ownership Bonds
Series 3 AMT
(A-1+, VMIG-1)
3.85%............... 05/29/97 5,000 5,000,000
------------
16,100,000
------------
TEXAS -- 10.76%
Angelina & Neches River
Authority Solid Waste Disposal
Revenue Bonds (Temple-Eastex
Incorporated Project) AMT
(A-1, P-1)
3.75%............... 01/24/97 12,450 12,450,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ------- -----------
<S> <C> <C>
TEXAS (CONTINUED)
Brazos River Authority PCRB
(Texas Utilities Electric
Company Project) AMT (AMBAC
Insurance)
(A-1, VMIG-1)
4.25%(1)............ 12/01/96 $ 4,500 $ 4,500,000
City of Haltom IDRB (Molded
Products Company Project)
Series 1995 AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.90%(1)............ 12/07/96 3,600 3,600,000
Harris County PCRB (Exxon
Project) Series 1987 AMT
(A-1+)
4.25%(1)............ 12/01/96 2,000 2,000,000
Montgomery County IDRB (Sawyer
Research Products
Incorporated) AMT (Society
National Bank of Cleveland
LOC)
3.80%(1)............ 12/07/96 2,000 2,000,000
North Texas Higher Education
Authority Incorporated Student
Loan Revenue Bonds Series
1991E AMT (AMBAC Insurance)
(A-1+, VMIG-1)
3.60%(1)............ 12/07/96 4,000 4,000,000
Texas TRAN (SP-1+, MIG-1)
4.75%............... 08/29/97 10,000 10,057,859
Trinity River Authority PCRB
(Texas Utilities Electric
Company Project) Series A AMT
4.20%(1)............ 12/01/96 2,600 2,600,000
------------
41,207,859
------------
UTAH -- 1.77%
Intermountain Power Agency RB
Series 1985F (Morgan Guaranty
LOC)
(A-1+, VMIG-1)
3.93%............... 06/16/97 2,500 2,500,000
Tooele County Hazardous Waste
Treatment RB (Rollins
Environmental Incorporated
Project) AMT (Union Bank of
Switzerland LOC) (A-1+)
3.65%............... 12/05/96 4,300 4,300,000
------------
6,800,000
------------
</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>
VIRGINIA -- 0.46%
Roanoke IDA (Roanoke Memorial
Hospital Project) Series D DN
(A-1+)
3.45%(1)............ 12/07/96 $ 1,755 $ 1,755,000
------------
WASHINGTON -- 3.11%
Washington Public Power Supply
System (Nuclear Project #1) DN
(Industrial Bank of Japan LOC)
(A-1, VMIG-1)
3.55%(1)............ 12/07/96 5,000 5,000,000
Washington State Housing Finance
Authority Single Family
Mortgage Revenue Bonds AMT
(VMIG-1)
3.75%............... 11/01/97 3,600 3,600,000
Yakima County Public Corporation
(Printing Press Project) AMT
(Bank of America LOC)
3.75%(1)............ 12/07/96 3,300 3,300,000
------------
11,900,000
------------
WEST VIRGINIA -- 4.01%
Grant County West Virginia IDRB
(Virginia Electric Power
Company Project) (A-1, VMIG-1)
3.65%............... 02/20/97 10,000 10,000,000
Pleasants County PCRB (American
Cyanamid Company Project) DN
(P-1)
3.70%(1)............ 12/07/96 2,300 2,300,000
West Virginia Economic
Development Authority IDRB
(North American Processing
Company Project) AMT (National
City Bank of Cleveland LOC)
3.75%(1)............ 12/07/96 3,050 3,050,000
------------
15,350,000
------------
WISCONSIN -- 1.49%
City of Janesville IDRB (Freedom
Plastics Incorporated Project)
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.80%(1)............ 12/07/96 3,200 3,200,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ --------- -------- ------------
<S> <C> <C>
WISCONSIN (CONTINUED)
City of Mequon IDRB (Johnson
Level Company Project) AMT
(Bank One Columbus LOC)
3.65%(1)............ 12/07/96 $ 2,500 $ 2,500,000
------------
5,700,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $381,867,286*)............ 99.69% $381,867,286
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.31 1,204,215
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 281,677,937
MuniCash Shares and 101,560,247
MuniCash Dollar Shares
outstanding).................... 100.00% $383,071,501
======= ============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE
PER SHARE
($383,071,501 / 383,238,184).............. $1.00
=====
</TABLE>
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same. Market value of securities
subject to federal alternative minimum tax is 66.39% of
the total market value.
(1) Variable rate.
- ---------------------------------------------------------
MUNICASH PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C>
1- 30 Days $252,450,000 66.1%
31- 60 Days 22,950,000 6.0
61- 90 Days 24,470,000 6.4
91-120 Days 12,765,000 3.4
Over 150 Days 69,080,000 18.1
</TABLE>
Average Weighted Maturity -- 57 Days
See accompanying notes to financial statements.
16
<PAGE> 17
INTERMEDIATE MUNICIPAL FUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1996
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
---------------- --------- ----- --------
<S> <C> <C>
CALIFORNIA -- 4.72%
City of Sacramento Financing Authority
(Pre-Refunded 11/01/01 @ 102) RB
(Aaa)
6.70%...................... 11/01/11 $ 235 $264,669
--------
DELAWARE -- 4.62%
Delaware GO (Aa1)
5.125%..................... 04/01/06 250 259,062
--------
FLORIDA -- 4.69%
State of Florida Board of Education
Series C RB (Aa)
5.40%...................... 06/01/02 250 263,125
--------
GEORGIA -- 4.85%
Georgia GO (Aaa)
5.90%...................... 03/01/03 250 272,187
--------
MAINE -- 3.74%
Maine GO (Aa)
5.30%...................... 09/01/02 200 209,750
--------
MARYLAND -- 4.29%
Montgomery County Public Improvement GO
Series A (Aaa)
5.60%...................... 07/01/04 225 241,031
--------
MASSACHUSETTS -- 4.56%
Massachusetts GO Series A (Aaa)
5.00%...................... 01/01/05 250 255,937
--------
MINNESOTA -- 4.63%
Minnesota GO (Aa1)
5.00%...................... 08/01/03 250 260,000
--------
NEW JERSEY -- 15.46%
New Jersey State GO (Aa1)
6.00%...................... 08/01/03 250 269,688
New Jersey Transportation
Authority Series B RB (MBIA
Insurance) (Aaa)
6.00%...................... 06/15/05 300 327,000
Ocean County GO (Aa)
6.25%...................... 10/01/05 250 270,938
--------
867,626
--------
NEW YORK -- 1.78%
New York City GO Series 1993B DN (FGIC
Insurance) (A-1+, VMIG-1)
4.25%(1)................... 12/01/96 100 100,000
--------
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
-------------- -------- ----- --------
<S> <C> <C>
NORTH CAROLINA -- 9.44%
City of Durham Public Improvement Bonds
Series 1993 RB (Aa1)
5.00%...................... 02/01/06 $ 250 $254,063
Highpoint County Public
Facility (Pre-Refunded
06/01/00 @ 102) RB (Aa)
6.90%.................... 06/01/05 250 275,625
--------
529,688
--------
OHIO -- 10.11%
Franklin County GO (Escrowed To
Maturity) (Aaa)
9.00%...................... 12/01/99 500 567,500
--------
SOUTH CAROLINA -- 4.94%
South Carolina Public Service Authority
(Santee Cooper Project) RB (FGIC
Insurance) (Aaa)
6.50%...................... 01/01/04 250 277,500
--------
TENNESSEE -- 3.79%
State of Tennessee GO (Aaa)
5.50%...................... 05/01/03 200 212,500
--------
VIRGINIA -- 3.87%
Virginia Public School Authority Series
B RB (Aa)
6.00%...................... 08/01/04 200 218,000
--------
WASHINGTON -- 12.80%
City of Spokane GO (Aa)
9.125%..................... 01/01/99 420 460,950
King County GO (Aa1)
5.00%...................... 01/01/04 250 257,813
--------
718,763
--------
TOTAL INVESTMENTS IN SECURITIES
(Cost $5,432,562*)............ 98.29% 5,517,338
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 1.71 95,737
------- ----------
NET ASSETS (Equivalent to $11.08
per share based on 503,542
Intermediate Municipal Shares
and 3,094 Intermediate Municipal
Dollar Shares outstanding)...... 100.00% $5,613,075
======= ==========
</TABLE>
- ---------------
(1) Variable rate
17
<PAGE> 18
INTERMEDIATE MUNICIPAL FUND PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
----------
<S> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE ($5,613,075 /
506,636).................................... $11.08
======
- ---------------
* 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............. $ 98,868
Excess of tax cost over value............. (14,092)
--------
$ 84,776
=========
</TABLE>
(1) Variable rate
- ---------------------------------------------------------
INTERMEDIATE MUNICIPAL FUND PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1996
Average Weighted Maturity -- 6.07 years
- ---------------------------------------------------------
------------------------------------------------------
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
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 November 30, 1996. 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, 1996
<TABLE>
<CAPTION>
INTERMEDIATE
MUNIFUND MUNICASH MUNICIPAL FUND
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------------
<S> <C> <C> <C>
Investment income:
Interest income................................................................ $26,168,665 $15,290,786 $ 293,039
----------- ----------- ---------
Expenses:
Investment advisory fee........................................................ 1,298,315 727,371 11,817
Administration fee............................................................. 1,298,315 727,371 11,817
Trustees' fees and officer's salary............................................ 61,690 35,520 600
Transfer agent fee............................................................. 86,825 40,030 1,739
Custodian fee.................................................................. 148,953 95,607 2,111
Shareholder computer access program............................................ 48,896 31,250 1,370
Legal and audit................................................................ 56,181 30,747 496
Registration expenses.......................................................... 39,800 13,343 3,919
Printing....................................................................... 20,372 9,576 3,501
Service Organization fees -- Dollar Shares..................................... 130,964 248,904 83
Other.......................................................................... 40,231 16,009 2,347
----------- ----------- ---------
3,230,542 1,975,728 39,800
Less fees waived............................................................... (1,091,269) (977,701) (16,025)
----------- ----------- ---------
Total expenses............................................................ 2,139,273 998,027 23,775
----------- ----------- ---------
Net investment income.......................................................... 24,029,392 14,292,759 269,264
----------- ----------- ---------
Realized and unrealized gain (loss) on investments:
Net realized gain from security transactions................................... 60,758 4,477 146,164
Decrease in unrealized appreciation of investments............................. -- -- (169,366)
Decrease in amortized market discount.......................................... (3,204) -- --
----------- ----------- ---------
Net gain (loss) on investments................................................. 57,554 4,477 (23,202)
----------- ----------- ---------
Net increase in net assets resulting from operations........................... $24,086,946 $14,297,236 $ 246,062
=========== =========== =========
</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,
1996 1995 1996 1995
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income........................ $ 24,029,392 $ 27,468,558 $ 14,292,759 $ 14,128,703
Net gain on investments...................... 57,554 87,283 4,477 6,508
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations............................... 24,086,946 27,555,841 14,297,236 14,135,211
--------------- --------------- --------------- ---------------
Dividends to shareholders from net investment
income:
MuniFund Shares.............................. (22,454,678) (27,156,490) -- --
MuniFund Dollar Shares....................... (1,574,714) (312,068) -- --
MuniCash Shares.............................. -- -- (11,053,941) (10,572,440)
MuniCash Dollar Shares....................... -- -- (3,238,818) (3,556,263)
--------------- --------------- --------------- ---------------
Total dividends to shareholders............ (24,029,392) (27,468,558) (14,292,759) (14,128,703)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Proceeds from sale of shares................. 5,212,511,683 5,863,156,883 5,121,589,834 3,821,513,734
Value of shares issued in reinvestment of
dividends.................................. 4,177,069 3,190,495 6,746,509 5,499,849
Cost of shares repurchased................... (5,351,938,462) (5,830,322,061) (5,168,334,969) (3,777,081,235)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived
from capital share transactions.......... (135,249,710) 36,025,317 (39,998,626) 49,932,348
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets.... (135,192,156) 36,112,600 (39,994,149) 49,938,856
Net assets:
Beginning of period.............................. 726,792,171 690,679,571 423,065,650 373,126,794
--------------- --------------- --------------- ---------------
End of period.................................... $ 591,600,015 $ 726,792,171 $ 383,071,501 $ 423,065,650
=============== =============== =============== ===============
</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,
1996 1995
------------ ------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................................... $ 269,264 $ 468,579
Net gain (loss) on investments...................................... (23,202) 786,340
---------- ------------
Net increase in net assets resulting from operations.............. 246,062 1,254,919
---------- ------------
Dividends to shareholders from net investment income:
Intermediate Municipal Shares....................................... (267,831) (467,132)
Intermediate Municipal Dollar Shares................................ (1,433) (1,447)
---------- ------------
Total dividends to shareholders................................... (269,264) (468,579)
---------- ------------
Capital share transactions:
Proceeds from sale of shares........................................ 47,907 3,265,704
Value of shares issued in reinvestment of dividends................. 1,433 1,441
Cost of shares repurchased.......................................... (674,266) (14,328,104)
---------- ------------
Decrease in net assets derived from capital share transactions.... (624,926) (11,060,959)
---------- ------------
Total decrease in net assets...................................... (648,128) (10,274,619)
Net assets:
Beginning of period...................................................... 6,261,203 16,535,822
---------- ------------
End of period............................................................ $5,613,075 $ 6,261,203
========== ============
</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,
--------------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- ---------- ----------
<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....... .0326 .0360 .0255 .0224 .0285
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0326) (.0360) (.0255) (.0224) (.0285)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................. 3.31% 3.66% 2.58% 2.27% 2.89%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 530,204 720,318 687,895 1,019,749 1,006,324
Ratio of Expenses to Average
Daily Net Assets(1)......... .27% .27% .26% .25% .30%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.26% 3.59% 2.53% 2.24% 2.86%
<CAPTION>
MUNIFUND DOLLAR SHARES
-----------------------------------------------
YEAR ENDED NOVEMBER 30,
-----------------------------------------------
1996 1995 1994 1993 1992
------- ------- ------- ------- -------
<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....... .0301 .0335 .0230 .0199 .0260
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0301) (.0335) (.0230) (.0199) (.0260)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................. 3.06% 3.41% 2.33% 2.02% 2.64%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 61,396 6,474 2,785 6,783 1,414
Ratio of Expenses to Average
Daily Net Assets(1)......... .52% .52% .51% .50% .55%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.01% 3.34% 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%, 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%, 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.
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,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<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....... .0350 .0382 .0266 .0235 .0300
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0350) (.0382) (.0266) (.0235) (.0300)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................. 3.56% 3.89% 2.69% 2.38% 3.04%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 281,544 321,642 273,439 572,482 857,812
Ratio of Expenses to Average
Daily Net Assets(1)......... .18% .18% .19% .20% .20%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.50% 3.83% 2.59% 2.36% 2.90%
<CAPTION>
MUNICASH DOLLAR SHARES
----------------------------------------------------
YEAR ENDED NOVEMBER 30,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<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....... .0325 .0357 .0241 .0210 .0275
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0325) (.0357) (.0241) (.0210) (.0275)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................. 3.31% 3.64% 2.44% 2.13% 2.79%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 101,528 101,424 99,688 95,225 81,669
Ratio of Expenses to Average
Daily Net Assets(1)......... .43% .43% .44% .45% .45%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.25% 3.58% 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%, 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%, 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.
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,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 11.11 $ 10.39 $ 11.18 $ 10.88 $ 10.54
------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .4998 .5256 .5053 .5315 .5609
Net Realized and Unrealized
Gain (Loss) on
Investments............... (.0300) .7200 (.7900) .3000 .3400
------- ------- ------- ------- -------
Total From Investment
Operations.............. .4698 1.2456 (.2847) .8315 .9009
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.4998) (.5256) (.5053) (.5315) (.5609)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 11.08 $ 11.11 $ 10.39 $ 11.18 $ 10.88
======= ======= ======= ======= =======
Total Return.................. 4.37% 12.22% (2.63%) 7.76% 8.74%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 5,579 6,228 16,507 22,350 29,911
Ratio of Expenses to Average
Daily Net Assets(1)......... .40% .40% .40% .40% .40%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 4.56% 4.87% 4.64% 4.79% 5.20%
Portfolio Turnover Rate....... 73% 47% 40% 50% 64%
<CAPTION>
INTERMEDIATE MUNICIPAL DOLLAR SHARES
----------------------------------------------------
YEAR ENDED NOVEMBER 30,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 11.11 $ 10.39 $ 11.18 $ 10.88 $ 10.54
------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .4723 .4985 .4782 .5037 .5339
Net Realized and Unrealized
Gain (Loss) on
Investments............... (.0300) .7200 (.7900) .3000 .3400
------- ------- ------- ------- -------
Total From Investment
Operations.............. .4423 1.2185 (.3118) .8037 .8739
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.4723) (.4985) (.4782) (.5037) (.5339)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 11.08 $ 11.11 $ 10.39 $ 11.18 $ 10.88
======= ======= ======= ======= =======
Total Return.................. 4.12% 11.97% (2.88%) 7.51% 8.49%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 34 33 29 30 27
Ratio of Expenses to Average
Daily Net Assets(1)......... .65% .65% .65% .65% .65%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 4.31% 4.62% 4.39% 4.54% 4.95%
Portfolio Turnover Rate....... 73% 47% 40% 50% 64%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.67%, 0.60%, 0.53%,
0.51% and 0.50%, respectively, for the years ended November 30, 1996, 1995,
1994, 1993 and 1992 for Intermediate Municipal Shares and 0.92%, 0.85%,
0.78%, 0.76% and 0.75%, respectively, for the years ended November 30,
1996, 1995, 1994, 1993 and 1992 for Intermediate Municipal Dollar Shares.
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. Expenses, other than the Service Organization fee, are allocated between
the two classes based on their relative assets.
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 -- 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
25
<PAGE> 26
Notes to Financial Statements (Continued)
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.
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, 1996 the Administrators and PIMC
voluntarily waived $1,091,269 of the advisory and administration fees payable to
them with respect to MuniFund, $977,701 with respect to MuniCash and $16,025
with respect to Intermediate Municipal Fund.
Service Organization fees of $27,738 were paid to affiliates of PNC Bank
for the year ended November 30, 1996.
D. The Company's Declaration of Trust permits the trustees to authorize the
issuance of an unlimited number of full and fractional units of beneficial
interest ("shares") in the Company and to classify or reclassify any unissued
shares into one or more additional series of shares.
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, 1996 NOVEMBER 30, 1995
-------------------- --------------------
<S> <C> <C>
Shares sold:
MuniFund........................................ 4,919,582,550 5,495,162,575
MuniFund Dollar................................. 292,929,133 367,994,308
Shares issued in reinvestment of dividends:
MuniFund........................................ 2,752,159 3,075,518
MuniFund Dollar................................. 1,424,910 114,977
Shares repurchased:
MuniFund........................................ (5,112,510,337) (5,465,901,712)
MuniFund Dollar................................. (239,428,125) (364,420,349)
-------------------- --------------------
Net increase (decrease) in shares.......... (135,249,710) 36,025,317
==================== ====================
</TABLE>
<TABLE>
<CAPTION>
MUNICASH PORTFOLIO
--------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1995
-------------------- --------------------
<S> <C> <C>
Shares sold:
MuniCash........................................ 4,867,516,600 3,595,304,269
MuniCash Dollar................................. 254,073,234 226,209,465
Shares issued in reinvestment of dividends:
MuniCash........................................ 4,710,660 3,595,447
MuniCash Dollar................................. 2,035,849 1,904,402
Shares repurchased:
MuniCash........................................ (4,912,328,000) (3,550,703,102)
MuniCash Dollar................................. (256,006,969) (226,378,133)
-------------------- --------------------
Net increase (decrease) in shares.......... (39,998,626) 49,932,348
==================== ====================
</TABLE>
27
<PAGE> 28
Notes to Financial Statements (Concluded)
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL
FUND PORTFOLIO
-----------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1996 NOVEMBER 30, 1995
------------------- -------------------------
SHARES VALUE SHARES VALUE
------- --------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Intermediate Municipal...................... 4,422 $ 47,907 306,662 $ 3,265,704
Intermediate Municipal Dollar............... -- -- -- --
Shares issued in reinvestment of dividends:
Intermediate Municipal...................... -- -- -- --
Intermediate Municipal Dollar............... 130 1,433 134 1,441
Shares repurchased:
Intermediate Municipal...................... (61,522) (674,266) (1,335,253) (14,328,104)
Intermediate Municipal Dollar............... -- -- -- --
------- --------- ---------- ------------
Net decrease in shares................. (56,970) $(624,926) (1,028,457) $(11,060,959)
======= ========= ========== ============
</TABLE>
On November 30, 1996, one shareholder held 39.11% of the shares outstanding of
the Intermediate Municipal Fund Portfolio.
E. Purchases and sales of investment securities other than short-term
obligations, by Intermediate Municipal Fund, for the year ended November 30,
1996 were $4,180,896 and $4,686,585 respectively.
F. 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; MuniCash, $166,683 and
Intermediate Municipal Fund, $412,090.
G. At November 30, 1996, net assets consisted of the following:
<TABLE>
<CAPTION>
INTERMEDIATE
MUNICIPAL
MUNIFUND MUNICASH FUND
------------ ------------ ----------
<S> <C> <C> <C>
Paid-in capital........................................ $591,670,101 $383,238,184 $5,940,389
Accumulated net realized loss on investments........... (70,086) (166,683) (412,090)
Unrealized appreciation of investments................. -- -- 84,776
------------ ------------ ----------
Total Net Assets....................................... $591,600,015 $383,071,501 $5,613,075
============ ============ ==========
</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, 1996, 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, 1996.
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, 1996, 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 10, 1997
29
<PAGE> 30
Trustees
G. Willing Pepper
Chairman
G. Nicholas Beckwith III
Philip E. Coldwell
Robert R. Fortune
Jerrold B. Harris
Rodney D. Johnson
Officers
G. Willing Pepper
President
Edward J. Roach
Vice President and
Treasurer
Morgan R. Jones
Secretary
Investment Adviser
PNC Institutional Management
Corporation
400 Bellevue Parkway
Wilmington, DE 19809
Co-Administrators
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
Distributor
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
Transfer Agent
PFPC Inc.
P.O. Box 8950
Wilmington, DE 19885-9628
This report is submitted for
the general information of the
shareholders of the Company.
It is not authorized for
distribution to prospective
investors unless accompanied
or preceded by effective
prospectuses for each
portfolio of the Company,
which contain information
concerning the investment
policies of the portfolios as
well as other pertinent
information.
PIF-A-009
MUNIFUND
MUNICASH
INTERMEDIATE MUNICIPAL FUND
Investment Portfolios
Offered by
Municipal Fund for
Temporary Investment
[PROVIDENT INSTITUTIONAL FUNDS LOGO]
Annual Report to Shareholders
November 30, 1996
