<PAGE> 1
PROVIDENT
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809 M Phone:
302-792-2555 M Fax: 302-792-5876
FUNDS
G. Willing Pepper
Chairman
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
July 13, 1998
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, 1998. The
accompanying Investment Adviser's Report provides information on the economy,
money markets, and our Funds.
Provident Institutional Funds offer a variety of high quality taxable and
tax-exempt money market funds to meet the varied needs of our investors. Please
contact your account representative or call our Client Service Center at (800)
821-7432 to discuss your investment options. We welcome the opportunity to serve
you.
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 six months ended May 31, 1998, short-term interest rates continued
a declining trend which was established earlier last year, after a peak in rates
that followed the Federal Reserve's increase in the federal funds rate to 5.50%.
During the period, the market was punctuated with volatility driven by
fundamental and technical factors. Consumer demand remained strong and continued
to fuel economic growth and strong corporate profits. The unemployment rate in
May was reported at 4.3%, the lowest level since February 1970, and inflation
indicators, such as the Producer Price Index and Consumer Price Index, remained
well below the Federal Reserve's threshold level. Wholesale prices, in fact,
were down 1.5% for the first five months of the year. The effect of the Asian
crisis and Japan's fiscal initiatives have also weighed heavily on the markets.
Their impact on U.S. economic strength and inflation will keep the Federal
Reserve vigilant and in a pre-emptive mood to counter any perceived inflation
threat.
Tax-exempt money market fund assets continued to reach new highs during the
first half of the year. These assets reached an all-time high of $176.2 billion
for the week ended April 14, 1998, 10.5% higher than last November, according to
IBC's Money Fund Report. During the following four weeks, however, $11 billion
of withdrawals occurred in tax-exempt money funds due to April's tax-related
redemptions. These withdrawals stabilized by the end of May and assets rebounded
slightly to finish the six-month period at $168.5 billion. Tax-exempt yields
followed their normal path during the 1998 tax season. Yields fell in the early
part of the year due to limited supplies of securities and an increase in money
fund assets. Shortly after April 15, 1998, yields rose to their highest levels
in over six months, with weekly variable rate demand notes offered as high as
4.25%.
Investment strategy during the last six months primarily focused on
preparing for the April 15 tax payment deadline. With the need for liquidity
very high due to anticipated large fund withdrawals, variable rate demand notes
comprised a larger than usual portion of each of the portfolios. Approximately
60-70% of assets were invested in variable rate demand notes, compared to a
normal weighting of 50-60% of assets.
As of May 31, 1998, MuniFund's average weighted maturity stood at 36 days
while MuniCash's average weighted maturity was 29 days. The two portfolios
continued to remain competitive within their peer groups. MuniFund was ranked #5
in total return among 12 Standard & Poor's AAA-rated tax-free funds while
MuniCash was ranked #6 in total return among 66 tax-free institutions-only funds
for the 12 months ended May 31, 1998, according to IBC's Money Fund Report. Both
of the portfolios continue their emphasis on superior credit quality and
liquidity.
BLACKROCK INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
MUNIFUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ALABAMA -- 5.33%
Alabama Housing Finance
Authority Multifamily Housing
RB (Rime Huntsville Project)
Series B DN (Federal National
Mortgage Association)(A-1+)
3.85%(1)............ 06/07/98 $ 3,775 $ 3,775,000
Calhoun County Economic
Development Council IDRB
(Craft Corporation Project) DN
(Amsouth Bank of Alabama LOC)
(A-1+, VMIG-1)
4.00%(1)............ 06/07/98 3,710 3,710,000
City of Huntsville Health Care
Authority RB Series 1998 DN
(Amsouth Bank of Alabama LOC)
(A-1)
3.80%(1)............ 06/07/98 6,100 6,100,000
City of Montgomery BMC Special
Care Facilities Authority
Hospital RB (Baptist Medical
Center) Series A DN (Amsouth
Bank of Alabama LOC) (VMIG-1)
3.80%(1)............ 06/07/98 9,900 9,900,000
City of Montgomery BMC Special
Care Facilities Authority
Hospital RB (Montgomery County
Loan Project) Series 1985G DN
(AMBAC Insurance)(A-1, VMIG-1)
3.75%(1)............ 06/07/98 3,000 3,000,000
City of Montgomery BMC Special
Care Facilities Authority
Hospital RB (VHA of Alabama,
Inc. Capital Asset Financing)
Series 1985G DN (AMBAC
Insurance)(A-1)
3.75%(1)............ 06/07/98 1,075 1,075,000
------------
27,560,000
------------
CALIFORNIA -- 7.42%
Alameda-Contra Costa School
Financing Authority (Capital
Improvements Financing
Project) Series C DN (National
Westminster LOC) (A-1+)
3.55%(1)............ 06/07/98 200 200,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
California RAN (SP-1+, MIG-1)
4.50%............... 06/30/98 $ 2,500 $ 2,501,387
Los Angeles Convention &
Exposition Center Authority RB
Series D DN (Bank of New York
LOC) (A-1+, VMIG-1)
4.00%(1)............ 06/07/98 15,900 15,900,000
Los Angeles County TRAN (SP-1+,
MIG-1)
4.50%............... 06/30/98 19,750 19,762,394
------------
38,363,781
------------
COLORADO -- 4.39%
Colorado General Fund TRAN
Series A (SP-1+, MIG-1)
4.50%............... 06/26/98 15,000 15,006,427
Colorado Housing Finance
Authority Multifamily Housing
RB (Huntington Project) Series
J DN (Federal National
Mortgage Association)(A-1+)
3.85%(1)............ 06/07/98 4,160 4,160,000
Moffat County PCRB (Tri-State)
Series 1984 DN (AMBAC
Insurance)(A-1+, P-1)
3.95%(1)............ 06/07/98 3,500 3,500,000
------------
22,666,427
------------
CONNECTICUT -- 1.55%
Connecticut GO Series B DN
(A-1+, VMIG-1)
3.75%(1)............ 06/07/98 8,000 8,000,000
------------
DISTRICT OF COLUMBIA -- 0.64%
District of Columbia Refunding
Bonds Series 1992A-L DN
(National Westminster LOC)
4.15%(1)............ 06/01/98 3,300 3,300,000
------------
FLORIDA -- 4.72%
City of Jacksonville TECP (A-1,
P-1)
3.45%............... 06/12/98 6,500 6,500,000
Orange County Housing Finance
Authority Multifamily RB (Post
Fountains At Lee Vista) Series
1997E DN (Federal National
Mortgage Association)(A-1+)
3.85%(1)............ 06/07/98 5,100 5,100,000
</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>
FLORIDA (CONTINUED)
Orange County Housing Finance
Authority Multifamily RB (Post
Lake Apartments Project) DN
(Federal National Mortgage
Association) (A-1+)
3.85%(1)............ 06/07/98 $ 6,000 $ 6,000,000
St. Petersburg Capital
Improvement RB (Apartment &
Golf Course Project) Series B
DN (Suntrust Bank LOC)
3.90%(1)............ 06/07/98 1,580 1,580,000
Sunshine State Governmental
Finance Commission TECP
(Canadian Imperial Bank LOC)
(A-1+, P-1)
3.80%............... 06/19/98 5,240 5,240,000
------------
24,420,000
------------
GEORGIA -- 7.72%
Cobb County Housing Authority
Multifamily Housing RB (Post
Bridge Project) DN (Federal
National Mortgage Association)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/98 900 900,000
Fulton County IDA (Arthritis
Foundation Incorporated) DN
(Suntrust Bank LOC)
3.90%(1)............ 06/07/98 1,000 1,000,000
Fulton County IDA (Epstein
School Project) DN (Suntrust
Bank LOC)
3.90%(1)............ 06/07/98 2,000 2,000,000
Fulton County IDA RB (Metro
Atlanta YMCA Project) DN
(Wachovia Bank LOC)
3.80%(1)............ 06/07/98 12,500 12,500,000
Gwinnett County Development
Authority (Wesleyan School
Project) Series 1997 DN
(Suntrust Bank LOC)
3.90%(1)............ 06/07/98 1,500 1,500,000
Metropolitan Atlanta Rapid
Transit Authority Trust
Receipts DN (MBIA
Insurance)(VMIG-1)
4.05%(1)............ 06/07/98 16,400 16,400,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
GEORGIA (CONTINUED)
Smyrna Housing Authority
Multifamily Housing RB (F&M
Villages Project) Series 1997
DN (Federal National Mortgage
Association) (A-1+)
3.85%(1)............ 06/07/98 $ 4,300 $ 4,300,000
Smyrna Housing Authority
Multifamily Housing RB (Post
Valley Project) Series 1995 DN
(Federal National Mortgage
Association) (A-1+)
3.85%(1)............ 06/07/98 1,300 1,300,000
------------
39,900,000
------------
IDAHO -- 1.45%
Idaho TAN (SP-1+, MIG-1)
4.625%.............. 06/30/98 7,500 7,504,272
------------
ILLINOIS -- 14.24%
Chicago Board of Education Trust
Receipts Series 3 DN (Bank of
New York LOC) (A-1+, VMIG-1)
4.00%(1)............ 06/07/98 10,100 10,100,000
Chicago GO Tender Notes (Morgan
Guaranty LOC) (A-1+, VMIG-1)
3.55%............... 10/29/98 13,000 13,000,000
3.55%............... 02/04/99 10,000 10,000,000
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) (Canadian
Imperial Bank LOC) (A-1+,
VMIG-1)
3.55%............... 11/05/98 8,500 8,500,000
Illinois Development Finance
Authority PCRB (The Uno-Ven
Company) DN (NBD Bank
Corporation LOC) (A-1+, P-1)
3.80%(1)............ 06/07/98 7,900 7,900,000
Illinois Development Finance
Authority RB (Chicago Symphony
Project) DN (Bank of America
LOC) (A-1+, VMIG-1)
3.80%(1)............ 06/07/98 5,100 5,100,000
</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) (A-1+, VMIG-1)
3.90%............... 07/31/98 $ 5,000 $ 5,000,000
3.60%............... 08/31/98 4,000 4,000,000
3.70%............... 03/01/99 10,000 10,000,000
------------
73,600,000
------------
KENTUCKY -- 2.71%
Jefferson County Board of
Education RAN (SP-1+, MIG-1)
3.86%............... 06/30/98 7,000 7,000,051
Kentucky Asset Liability
Commission General Fund Notes
Series 1998 RB (Bayerische
Landesbank Girozentrale LOC)
(A-1+, P-1)
3.55%............... 06/04/98 7,000 7,000,000
------------
14,000,051
------------
LOUISIANA -- 1.22%
Louisiana Offshore Terminal
Authority Deepwater Port
Refunding RB (Loop LLC) Series
1997A DN (Morgan Guaranty LOC)
(A-1+, VMIG-1)
3.85%(1)............ 06/07/98 1,310 1,310,000
Plaquesmines Port Harbor &
Terminal District Port
Facilities RB (Chevron
Pipeline Company) Series A
(A-1+, P-1)
3.85%............... 09/01/98 5,000 5,003,044
------------
6,313,044
------------
MARYLAND -- 8.99%
Frederick County (Homewood
Incorporated Facility) DN (FNB
Maryland LOC)(A-1)
3.85%(1)............ 06/07/98 19,950 19,950,000
Maryland Health & Higher
Education Facilities Authority
RB (Doctors Community
Hospital) Series 1997 DN (A-1)
3.95%(1)............ 06/07/98 7,800 7,800,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
MARYLAND (CONTINUED)
Maryland Industrial Development
Finance Authority (McDonough
School Project) DN (FNB
Maryland LOC) (A-1)
3.90%(1)............ 06/07/98 $ 4,000 $ 4,000,000
Maryland State Economic
Development Corporation RB
(Pooled Financing) DN
(NationsBank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 10,000 10,000,000
Maryland State IDA (McDonough
School Income Facility) DN
(FNB Maryland LOC) (A-1,
VMIG-1)
3.90%(1)............ 06/07/98 4,735 4,735,000
------------
46,485,000
------------
NEW HAMPSHIRE -- 0.97%
New Hampshire GO Series 1998
TECP (A-1+, P-1)
3.80%............... 06/11/98 5,000 5,000,000
------------
NEW JERSEY -- 2.85%
New Jersey Sports & Exhibition
Authority Series 1992C DN
(Barclays Bank LOC) (A-1+,
VMIG-1)
3.65%(1)............ 06/07/98 7,205 7,205,000
New Jersey Transportation Trust
Fund Transportation Authority
System Bonds Series 1995B DN
(Bank of New York LOC)
(VMIG-1)
3.90%(1)............ 06/07/98 7,500 7,500,000
------------
14,705,000
------------
NEW YORK -- 6.06%
City of New York Municipal
Acceptance Corporation Trust
Receipts DN (National
Westminster LOC) (VMIG-1)
4.05%(1)............ 06/07/98 11,700 11,700,000
New York RAN Series 1997A
(SP-1+, MIG-1)
4.50%............... 06/30/98 19,600 19,614,714
------------
31,314,714
------------
</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>
NORTH CAROLINA -- 4.18%
Charlotte-Mecklenburg Hospital
Authority RB Series 1996C DN
(A-1+, VMIG-1)
3.80%(1)............ 06/07/98 $ 9,600 $ 9,600,000
Mecklenburg County GO Series
1996C DN (NationsBank LOC)
(A-1, VMIG-1)
3.80%(1)............ 06/07/98 2,600 2,600,000
North Carolina Educational
Facilities RB (The Bowman Gray
School of Medicine Project)
Series 1997 DN (Wachovia Bank
LOC) (VMIG-1)
3.90%(1)............ 06/07/98 1,000 1,000,000
North Carolina Medical Care
Community Hospital (Moses H.
Cone Memorial Hospital
Project) Series 1993 DN
(Wachovia Bank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 8,400 8,400,000
------------
21,600,000
------------
OHIO -- 1.30%
Columbus GO Unlimited Tax DN
(Westdeutsche Landesbank
Girozentrale LOC) (A-1+,
VMIG-1)
3.55%(1)............ 06/07/98 800 800,000
Franklin County Hospital
Facilities Referral &
Improvement RB (U.S. Health
Corporation of Columbus)
Series 1996A DN (Morgan
Guaranty LOC)(VMIG-1)
3.90%(1)............ 06/07/98 500 500,000
Lucas County Health Facilities
Authority RB (Lutheran Homes
Society Project) DN (Bank One
Columbus LOC)(A-1+)
3.90%(1)............ 06/07/98 5,400 5,400,000
------------
6,700,000
------------
OKLAHOMA -- 2.21%
Oklahoma Water Resource Board
State Loan Program RB (Swiss
Bank LOC)(A-1+)
3.55%............... 09/01/98 11,400 11,400,000
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- 0.43%
Emmaus General Authority Local
Government RB Series 1989B DN
(Bayerische Landesbank
Girozentrale LOC)(A-1+)
3.95%(1)............ 06/07/98 $ 2,200 $ 2,200,000
------------
SOUTH CAROLINA -- 0.93%
South Carolina Economic
Development Authority Hospital
Facilities RB (Tuomey Regional
Medical Center) Series B DN
(Wachovia Bank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 4,800 4,800,000
------------
TENNESSEE -- 9.77%
City of Chattanooga Health,
Education & Housing Authority
RB (Baylor School Project) DN
(Suntrust Bank LOC)
3.90%(1)............ 06/07/98 700 700,000
City of Chattanooga Health,
Education & Housing Authority
RB (Girls Preparatory School
Project) Series 1998 DN
(Amsouth Bank of Alabama LOC)
(VMIG-1)
3.80%(1)............ 06/07/98 9,700 9,700,000
City of Tusculum Health,
Education & Housing Facility
Board Educational Facilities
RB (Tusculum College Project)
Series 1998 DN (Suntrust Bank
LOC)
3.90%(1)............ 06/07/98 6,000 6,000,000
Dickson County IDRB DN (The
Renaissance Learning Center)
Series 1997 DN (Suntrust Bank
LOC)
3.90%(1)............ 06/07/98 4,000 4,000,000
Metropolitan Government
Nashville Davidson County
Health & Education Board
(Belmont University Project)
DN (Suntrust Bank LOC)
3.90%(1)............ 06/07/98 3,700 3,700,000
Metropolitan Government
Nashville Davidson County
Health & Education Board
(Harpeth Hall School Project)
DN (Suntrust Bank LOC)
3.90%(1)............ 06/07/98 480 480,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
6
<PAGE> 7
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
Montgomery County Public
Building Authority Pooled
Financing GO (Montgomery
County Loan Pool) Series 1995
DN (NationsBank LOC) (A-1+,
VMIG-1) 3.90%(1).... 06/07/98 $10,000 $ 10,000,000
Montgomery County Public
Building Authority Pooled
Financing GO (Montgomery
County Loan Pool) Series 1996
DN (NationsBank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 3,000 3,000,000
Montgomery County Public
Building Authority Pooled
Financing GO (Tennessee County
Loan Pool) Series 1995 DN
(NationsBank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 3,200 3,200,000
Rutherford Industrial
Development Board (Square D
Company Project) DN (Societe
Generale LOC) (VMIG-1)
3.80%(1)............ 06/07/98 3,100 3,100,000
Tennessee GO BAN Series 1996E DN
(SP-1+, VMIG-1)
3.90%(1)............ 06/07/98 4,800 4,800,000
Washington County IDRB
(Springbrook Properties
Project) Series 1996 DN
(Suntrust Bank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 1,800 1,800,000
------------
50,480,000
------------
TEXAS -- 5.11%
Harris County GO Series A TECP
(Union Bank of Switzerland
LOC)(A-1+, P-1)
3.80%............... 06/19/98 2,400 2,400,000
Hockley County IDA PCRB (Amoco
Project) (A-1+, P-1)
3.65%............... 11/01/98 14,500 14,500,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Houston TRAN (SP-1+, MIG-1)
4.50%............... 06/30/98 $ 5,000 $ 5,002,485
Lower Colorado River Authority
DN (Federal National Mortgage
Association) (A-1+, VMIG-1)
3.90%(1)............ 06/07/98 4,500 4,500,000
------------
26,402,485
------------
UTAH -- 2.51%
Utah Environmental Improvement
RB (USX Corporation Project)
(Wachovia Bank LOC) (A-1+,
VMIG-1)
3.60%............... 06/15/98 3,000 3,000,000
Utah Highway Authority GO Series
B TECP (A-1+, P-1)
3.75%............... 06/11/98 10,000 10,000,000
------------
13,000,000
------------
VIRGINIA -- 0.16%
Hampton Roads Regional Jail
Authority (Regional Jail
Facility Project) Series 1996B
DN (Wachovia Bank LOC)(A-1+,
VMIG-1)
3.85%(1)............ 06/07/98 700 700,000
Louisa County IDA (Pooled
Financing) DN (NationsBank
LOC) (A-1+, VMIG-1)
3.90%(1)............ 06/07/98 300 300,000
------------
1,000,000
------------
WASHINGTON -- 0.02%
Chelan County Public Utility
District No.1 (Chelan Hydro
Consolidated System) Series
1995A DN (Credit Suisse LOC)
(A-1+, VMIG-1)
3.80%(1)............ 06/07/98 100 100,000
------------
WISCONSIN -- 2.32%
Wisconsin Operating Notes
(SP-1+, MIG-1)
4.50%............... 06/15/98 12,000 12,004,259
------------
</TABLE>
---------------------------------------------------------
(1) Variable rate
7
<PAGE> 8
MUNIFUND PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $512,819,033*)............ 99.20% $512,819,033
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.80 4,115,822
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 452,865,549
MuniFund Shares and 64,167,646
MuniFund Dollar Shares
outstanding).................... 100.00% $516,934,855
------- ------------
------- ------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($516,934,855 / 517,033,195)............. $1.00
-----
-----
</TABLE>
- ---------------
* Aggregate cost for federal income tax purposes is substantially the same.
(1) Variable rate
<TABLE>
<S> <C> <C> <C> <C>
- ------------------------------------------------------
</TABLE>
MUNIFUND PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1998
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C> <C> <C>
1- 30 Days $431,370,000 84.1%
61- 90 Days 5,000,000 1.0
91-120 Days 20,400,000 4.0
Over 150 Days 56,000,000 10.9
Average Weighted Maturity -- 36 Days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
MUNICASH PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
May 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ARIZONA -- 0.80%
Phoenix IDRB (Leggett & Platt
Incorporated Project) AMT
(Wachovia Bank LOC)
3.95%(1)............ 06/07/98 $ 5,170 $ 5,170,000
------------
ARKANSAS -- 1.83%
Arkansas State Development
Finance Authority Single
Family Mortgage RB Series D
AMT (Canadian Imperial Bank
LOC) (A-1+)
4.05%............... 07/01/98 3,900 3,900,000
City of Hope Solid Waste
Disposal RB (Temple-Inland
Forest Products Corporation
Project) AMT (P-1)
3.80%............... 06/15/98 7,900 7,900,000
------------
11,800,000
------------
CALIFORNIA -- 1.29%
Los Angeles Convention &
Exposition Center RB Series D
DN (Bank of New York LOC)
(A-1+, VMIG-1)
4.00%(1)............ 06/07/98 25 25,000
Southeast Resource Recovery
Facility Authority Lease
Revenue Refunding Bonds Series
A DN (Industrial Bank of Japan
LOC) (A-1, VMIG-1)
4.55%(1)............ 06/07/98 8,300 8,300,000
------------
8,325,000
------------
COLORADO -- 0.16%
Jefferson County RB (Rocky
Mountain Butterfly Consortium
Project) DN (Norwest Bank LOC)
(A-1+)
3.95%(1)............ 06/07/98 1,000 1,000,000
------------
CONNECTICUT -- 0.65%
Connecticut Development
Authority PCRB (Connecticut
Light & Power) Series 1993B
AMT (Union Bank of Switzerland
LOC) (A-1+, VMIG-1)
3.85%(1)............ 06/07/98 4,200 4,200,000
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
FLORIDA -- 0.27%
St. Lucie County Solid Waste
Disposal RB (Florida Power &
Light Project) Series 1993 AMT
(A-1+, VMIG-1)
4.15%(1)............ 06/01/98 $ 1,700 $ 1,700,000
Volusia County Health
Facilities Authority
RB (Volusia Health
Systems Project) DN
(First Union Bank
LOC) (A-1)
3.75%(1)............ 06/07/98 15 15,000
------------
1,715,000
------------
GEORGIA -- 7.68%
Bulloch County Development
Authority IDRB (Gold Kist
Incorporated Project) Series
1995 AMT (Wachovia Bank LOC)
3.95%(1)............ 06/07/98 5,700 5,700,000
Carrollton County IDRB (Flowers
Baking Villa Company) AMT (Sun
Trust LOC)
4.00%(1)............ 06/07/98 6,125 6,125,000
Cobb County IDRB (John W. Rooker
Company Project) AMT (First
Union Bank LOC)
4.05%(1)............ 06/07/98 2,200 2,200,000
Dawson County Development
Authority IDRB (World Wide
Manufacturing Inc, Project)
AMT (Wachovia Bank LOC)
3.95%(1)............ 06/07/98 3,500 3,500,000
Dekalb County Housing Finance
Authority Multifamily Housing
RB (Eagle Trace Apartments
Project) AMT (Key Corp. Bank,
N.A. LOC)(A-1)
3.86%(1)............ 06/07/98 4,675 4,675,000
Glenn-Brunswick Memorial
Hospital Authority Revenue
Anticipation Certificates
Series E DN (MBIA Insurance)
(A-1+, VMIG-1)
4.00%(1)............ 06/07/98 3,900 3,900,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
9
<PAGE> 10
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)
3.95%(1)............ 06/07/98 $ 2,500 $ 2,500,000
Henry County Development Finance
Authority Solid Waste Disposal
RB (Atlas Roofing Corporation
Project) AMT (Sun Trust LOC)
4.00%(1)............ 06/07/98 4,100 4,100,000
Lafayette Education Development
Authority (The Dixie Group
Incorporated Project) AMT (Sun
Trust LOC)
4.00%(1)............ 06/07/98 2,000 2,000,000
Metropolitan Atlanta Rapid
Transit Authority Trust
Receipts DN (MBIA Insurance)
(VMIG-1)
4.00%(1)............ 06/07/98 75 75,000
Middle Georgia Regional
Development Finance Authority
IDRB (Tolleson Lumber Company
Project) AMT (Wachovia Bank
LOC)
3.95%(1)............ 06/07/98 5,000 5,000,000
Rockdale County Development
Authority IDRB (Takabashi
Works USA Incorporated
Project) AMT (Sanwa Bank
LOC)(P-1)
4.80%(1)............ 06/07/98 4,030 4,030,000
Rosewell Housing Authority
Multifamily (Azalea Park
Apartments Project) DN
(Federal National Mortgage
Association) (A-1+)
3.95%(1)............ 06/07/98 4,600 4,600,000
Valdosta & Lowndes County
Hospital Authority RB (South
Georgia Medical Center
Project) DN (FSA Insurance)
(A-1+)
3.85%(1)............ 06/07/98 1,000 1,000,000
------------
49,405,000
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
HAWAII -- 0.16%
Hawaii Department of Budget &
Finance Special Purpose
Mortgage RB (Ewa Plain Water
Development Authority) (Bank
of Hawaii LOC) (VMIG-1)
3.95%............... 10/01/98 $ 1,000 $ 1,000,000
------------
IDAHO -- 0.39%
Idaho TAN (SP-1+, MIG-1)
4.625%.............. 06/30/98 2,500 2,501,424
------------
ILLINOIS -- 13.82%
Belvidere IDRB (R&D Thiel
Incorporated Project) AMT
(First Bank Systems, N.A LOC)
(A-1)
4.15%(1)............ 06/07/98 1,630 1,630,000
Chicago GO Tender Notes (Morgan
Guaranty LOC) (A-1+, VMIG-1)
3.55%............... 02/04/99 5,000 5,000,000
Chicago GO Tender Notes TECP
(Societe Generale LOC) (A-1+,
VMIG-1)
3.75%............... 10/31/98 5,000 5,000,000
Chicago IDRB (Bullen Midwest
Incorporated Project) AMT
(Bank One Columbus LOC)
4.00%(1)............ 06/07/98 2,200 2,200,000
Chicago IDRB (Enterprise Center
IX Project) AMT (Banc One N.A.
LOC) (A-1+)
3.95%(1)............ 06/07/98 4,750 4,750,000
Chicago IDRB (Enterprise Center
VII Project) AMT (Banc One
N.A. LOC) (A-1+)
3.95%(1)............ 06/07/98 7,200 7,200,000
Chicago IDRB (Goose Island Beer
Company Project) AMT (First
Bank Systems, N.A. LOC)
4.20%(1)............ 06/07/98 1,900 1,900,000
City of Harvey Multifamily
Housing RB (Bethlehem Village
Project) AMT (Federal Home
Loan Bank LOC)(A-1+)
4.05%(1)............ 06/07/98 3,400 3,400,000
Crawford County Manufacturing
Facilities RB (Fair-Rite
Products Corporation) AMT
(Corestates Bank N.A. LOC)
4.05%(1)............ 06/07/98 4,075 4,075,000
</TABLE>
---------------------------------------------------------
(1) Variable rate
10
<PAGE> 11
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Development Finance
Authority (Azteca Foods Project
Incorporated) AMT (ABN-AMRO Bank
N.V. LOC)(A-1+)
3.95%(1)............ 06/07/98 $ 3,400 $ 3,400,000
Illinois Development Finance
Authority IDRB (Bhagvan H.
Patel Project) AMT (Bank One
Columbus LOC)(A-1+)
4.00%(1)............ 06/07/98 2,305 2,305,000
Illinois Development Finance
Authority IDRB (Big Bolt
Corporation Project) AMT
(ABN-AMRO Bank N.V. LOC)
4.15%(1)............ 06/07/98 3,300 3,300,000
Illinois Development Finance
Authority IDRB (Henry Valve
Company Project) Series 1995
AMT (ABN-AMRO Bank N.V.
LOC)(A-1+)
3.95%(1)............ 06/07/98 3,995 3,995,000
Illinois Development Finance
Authority IDRB (Prairie
Packaging Incorporated
Project) AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.95%(1)............ 06/07/98 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+)
3.95%(1)............ 06/07/98 3,250 3,250,000
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation) MB
(A-1+, VMIG-1)
3.90%............... 10/15/98 5,000 5,000,000
Lake County Central School
District Temporary Loan
Warrants GO Bonds
4.10%............... 06/30/98 3,500 3,500,544
Lake County IDRB (Northpoint
Project) AMT (Bank One
Columbus LOC)(A-1+)
3.95%(1)............ 06/07/98 6,000 6,000,000
Lake Zurich IDRB (Screenflex
Portable Partitions
Incorporated Project) AMT
(ABN-AMRO Bank N.V. LOC)(A-1+)
3.95%(1)............ 06/07/98 2,575 2,575,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Naperville Economic Development
Authority (Independence
Village Associates) DN
(National City Bank LOC)
3.95%(1)............ 06/07/98 $ 2,815 $ 2,815,000
Quad Cities Regional Development
Authority IDRB (Whitey's Ice
Cream Manufacturers
Incorporated) Series 1995 AMT
(Banc One N.A. LOC)
4.00%(1)............ 06/07/98 1,780 1,780,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1992 AMT
(Mellon Bank N.A. LOC)(VMIG-1)
4.00%(1)............ 06/07/98 3,000 3,000,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1994 AMT
(Mellon Bank N.A. LOC)(VMIG-1)
4.00%(1)............ 06/07/98 3,800 3,800,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1997 AMT
(Mellon Bank N.A. LOC)
4.05%(1)............ 06/07/98 1,500 1,500,000
Village of North Aurora IDRB
(Oberweis Dairy Incorporated
Project) Series 1995 AMT
(ABN-AMRO Bank N.V. LOC)(A-1+,
VMIG-1)
3.95%(1)............ 06/07/98 2,570 2,570,000
------------
88,945,544
------------
INDIANA -- 3.79%
Bartholomew School District TAN
4.15%............... 06/30/98 5,150 5,151,410
4.15%............... 12/31/98 5,651 5,660,583
</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>
INDIANA (CONTINUED)
Indiana Development Finance
Authority IDRB (Cives Corporation
Project) Series 1992 AMT (Wachovia
Bank LOC)(A-1+)
3.95%(1)............ 06/07/98 $ 3,600 $ 3,600,000
Indiana Development Finance
Authority IDRB (Enterprise
Center II Project) Series 1992
AMT (Bank One Columbus LOC)
(A-1)
3.95%(1)............ 06/07/98 3,000 3,000,000
Indiana Development Finance
Authority IDRB (Enterprise
Center V Project) Series 1992
AMT (Banc One N.A. LOC)(A-1+)
3.95%(1)............ 06/07/98 5,000 5,000,000
Jasper County Economic
Development RB (Wabash Valley
Produce Project) AMT (Bank One
Columbus LOC)
4.00%(1)............ 06/07/98 2,000 2,000,000
------------
24,411,993
------------
KANSAS -- 0.39%
Shawnee Private Activity RB
(Simmons Company Project) AMT
(Sun Trust LOC) (A-1+, VMIG-1)
4.00%(1)............ 06/07/98 2,500 2,500,000
------------
KENTUCKY -- 3.15%
City of Maysville Solid Waste
Disposal Facilities RB (Inland
Container Corporation Project)
Series 1992 AMT (P-1)
3.80%............... 07/14/98 7,035 7,035,000
3.80%............... 09/04/98 5,165 5,165,000
Elsmere IDRB (International Mold
Steel, Incorporated Project)
AMT (Star Banc Corporation
LOC)
4.10%(1)............ 06/07/98 1,945 1,945,000
Pulaski County Solid Waste
Disposal RB (Eastern Kentucky
Power Project) Series B AMT
(National Rural Utilities LOC)
3.50%............... 08/15/98 6,100 6,099,719
------------
20,244,719
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
LOUISIANA -- 1.86%
Lincoln Parish Facilities RB
(Willamette Industries
Project) AMT (A-1)
4.00%(1)............ 06/07/98 $11,500 $ 11,500,000
Louisiana Public Facilities
Authority (College & Equipment
Project) Series A DN (Societe
Generale LOC)(A-1+, VMIG-1)
3.90%(1)............ 06/07/98 500 500,000
------------
12,000,000
------------
MARYLAND -- 2.56%
Baltimore County IDRB (Equipment
Supply Company Incorporated
Project) AMT (First Union Bank
LOC)
4.00%(1)............ 06/07/98 1,000 1,000,000
Baltimore County PCRB (Baltimore
Gas & Electric Company
Project)(A-1, VMIG-1)
3.65%............... 07/06/98 3,000 3,000,000
Maryland State Economic
Development Corporation RB
(Atlantic Pharmaceutical
Services Incorporated) AMT
(FNB Maryland LOC) (A-1)
4.10%(1)............ 06/07/98 5,500 5,500,000
Ocean County RB (Harrison Inn
Fifty-Eight Limited
Partnership Facility) AMT (FNB
Maryland LOC)(A-1)
4.15%(1)............ 06/07/98 4,895 4,895,000
Wicomico County Economic
Development RB (Plymouth Tube
Company Project) AMT (NBD Bank
Corp LOC) (VMIG-1)
3.95%(1)............ 06/07/98 2,100 2,100,000
------------
16,495,000
------------
MICHIGAN -- 0.80%
Michigan State Strategic Fund RB
(Pioneer Metal Finishing
Company Project) AMT (National
City Bank of Cleveland LOC)
(A-1)
4.00%(1)............ 06/07/98 5,135 5,135,000
------------
</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>
MINNESOTA -- 0.40%
Minnesota Agricultural Economic
Development Authority (Como
Partnership Project) AMT
(First Bank Systems, N.A. LOC)
4.20%(1)............ 06/07/98 $ 2,550 $ 2,550,000
------------
MISSOURI -- 2.02%
Maries County IDA Solid Waste
Management RB (Kingsford
Products Company Project) AMT
(A-1)
4.00%(1)............ 06/07/98 13,000 13,000,000
------------
NEW HAMPSHIRE -- 0.68%
New Hampshire State Business
Finance Authority IDRB (Felton
Brush Incorporated Project)
AMT (Key Corporation Bank,
N.A. LOC)
4.01%(1)............ 06/07/98 2,600 2,600,000
New Hampshire State Housing
Finance Authority Multifamily
RB (Countryside L.P. Project)
AMT (General Electric Capital
Corporation LOC)(VMIG-1)
4.00%(1)............ 06/07/98 1,800 1,800,000
------------
4,400,000
------------
NEW JERSEY -- 6.88%
East Brunswick BAN
4.125%.............. 11/03/98 2,050 2,052,267
Fair Lawn BAN
3.95%............... 12/17/98 3,000 3,003,468
Galloway Township BAN
4.25%............... 10/30/98 1,800 1,803,043
New Jersey Economic Development
Authority RB (Logan Project)
Series 1992 AMT (Union Bank of
Switzerland LOC) (A-1+,
VMIG-1)
3.70%............... 06/16/98 3,000 3,000,000
New Jersey Sports & Exhibition
Authority Series 1992C DN
(MBIA Insurance)(A-1+)
3.65%(1)............ 06/07/98 7,700 7,700,000
New Jersey State Economic
Development Authority RB
(Cranes Mill Project) Series C
DN (Banque Paribas
LOC)(VMIG-1)
3.85%(1)............ 06/07/98 7,900 7,900,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NEW JERSEY (CONTINUED)
New Jersey State Economic
Development Authority RB
(Winchester Gardens Ward
Homestead Project) DN (Banque
Paribas LOC) (VMIG-1)
3.85%(1)............ 06/07/98 $ 3,000 $ 3,000,000
New Jersey State Higher
Education Assistance Authority
Student Loan RB (New Jersey
Class Loan Program) Series B
(MBIA Insurance) (A-1+)
3.90%............... 06/01/98 2,000 2,000,000
Ocean City GO Bonds (FSA
Insurance)
3.75%............... 04/01/99 700 700,733
Old Bridge Township GO (FGIC
Insurance)
4.60%............... 03/15/99 375 377,814
Paramus Borough BAN
3.82%............... 08/13/98 2,070 2,070,079
Port Authority of New York & New
Jersey (Bank of Nova Scotia
LOC)(A-1+, P-1)
3.75%............... 06/16/98 1,900 1,900,000
Rahway BAN
4.125%.............. 10/09/98 2,630 2,632,019
Randolf Township BAN
3.82%............... 06/19/98 2,757 2,757,039
Salem County IDA PCRB (E.I.
Dupont de Nemours & Company
Project) Series 1982A DN
(A-1+, VMIG-1)
3.90%(1)............ 06/07/98 3,400 3,400,000
------------
44,296,462
------------
NEW YORK -- 4.21%
City of New York GO Series
1995F-6 DN (Morgan Guaranty
LOC) (A-1+, VMIG-1)
4.00%(1)............ 06/07/98 13,900 13,900,000
City of New York Municipal
Acceptance Corporation Trust
Receipts DN (National
Westminster LOC) (VMIG-1)
4.05%(1)............ 06/07/98 700 700,000
</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> <C>
NEW YORK (CONTINUED)
Dormitory Authority of The State
of New York (Memorial Sloan-
Kettering Cancer Center) RB
Series 1996 (Morgan Guaranty
LOC) (A-1+, VMIG-1)
3.85%............... 06/08/98 $12,500 $ 12,500,000
------------
27,100,000
------------
NORTH CAROLINA -- 5.26%
City of Mecklenburg Industrial
Facility & Pollution Control
Finance IDRB (Aplix
Incorporated Project) Series
1996 AMT (Wachovia Bank LOC)
3.90%(1)............ 06/07/98 4,200 4,200,000
North Carolina Medical Care
Community Hospital RB
(Baptists Hospitals Project)
DN (Wachovia Bank LOC)(A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 2,900 2,900,000
North Carolina Medical Care
Community Hospital RB (Pooled
Equipment Financing Project)
Series 1985 DN (MBIA
Insurance) (A-1+)
3.80%(1)............ 06/07/98 2,000 2,000,000
North Carolina Municipal Power
Agency Number 1 (Catawba
Project) (Morgan Guaranty LOC)
(A-1+, P-1)
3.40%............... 07/17/98 14,500 14,485,929
Wake County IDA PCRB (Carolina
Power & Light Company Project)
Series 1985C DN (Sumitomo Bank
LOC) (A-1+, VMIG-1)
4.70%(1)............ 06/07/98 7,150 7,150,000
Washington County Industrial
Facilities & Pollution Control
Finance Authority RB (Mackeys
Ferry Sawmill Incorporated
Project) AMT (Wachovia Bank
LOC)
3.90%(1)............ 06/07/98 3,100 3,100,000
------------
33,835,929
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NORTH DAKOTA -- 0.33%
Mercer County Solid Waste
Disposal RB (United Power
Association Project) Series U
AMT (A-1+, P-1)
3.80%............... 06/01/98 $ 2,100 $ 2,100,000
------------
OHIO -- 10.07%
Akron Metropolitan Housing
Finance Authority Facilities
Improvement RB (Administration
Building Project) DN (Star
Banc Corporation LOC)
4.10%(1)............ 06/07/98 7,000 7,000,000
Cincinnati School District TAN
4.08%............... 12/31/98 3,000 3,008,127
City of Allen BAN
4.05%............... 04/13/99 2,000 2,005,004
City of Berea BAN
4.05%............... 07/02/98 1,125 1,125,211
City of Newark BAN
4.00%............... 03/12/99 1,081 1,083,834
Cuyahoga County Hospital
Improvement RB Series 1985
(Cleveland Project) DN
(Dai-Ichi Kangyo LOC) (A-1+,
VMIG-1)
4.55%(1)............ 06/01/98 8,500 8,500,000
Cuyahoga County IDRB (Northstar
Project) AMT (Key Corp. Bank,
N.A. LOC)
4.01%(1)............ 06/07/98 3,555 3,555,000
Green County BAN GO Bonds
(MIG-1)
4.15%............... 06/04/98 2,590 2,590,134
Medina County Health Care
Facilities RB (The Oaks At
Medina Project) Series 1997B
DN (Bank One Columbus LOC)
3.90%(1)............ 06/07/98 2,600 2,600,000
Ohio Air Quality Development
Authority PCRB (PPG Industries
Incorporated) Series 1988A DN
(A-1)
4.00%(1)............ 06/07/98 6,000 6,000,000
Ohio Environmental Improvement
RB (United States Steel
Corporation Project) Series
1986 DN (Sanwa Bank LOC)(P-1)
3.85%(1)............ 06/07/98 6,400 6,400,000
</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>
OHIO (CONTINUED)
Ohio Higher Education
Facilities Authority (Oberlin
College Project) DN (Bank of
Tokyo LOC) (A-1+)
3.85%(1)............ 06/07/98 $ 1,100 $ 1,100,000
Ohio State Higher Education
Facility Commission RB (Pooled
Financing 1998 Program) DN
(Fifth Third Bank LOC)
3.90%(1)............ 06/07/98 2,000 2,000,000
Ohio Water Development Authority
PCRB (Cleveland Electric
Illuminating Company) Series
1997B DN (NBD Bank Corp LOC)
(A-1+, P-1)
3.80%(1)............ 06/07/98 3,300 3,300,000
Sandusky County IDRB (Brighton
Manor Company Project) Series
1986 AMT (Bank One Columbus
LOC) (VMIG-1)
4.00%(1)............ 06/07/98 1,500 1,500,000
Student Loan Funding Corporation
of Cincinnati RB (Ohio Student
Loan Project) Series A-2 AMT
(Bank of America LOC)(A-1,
P-1)
3.95%(1)............ 06/07/98 10,000 10,000,000
Toledo Special Assessment GO
Notes RB DN (Canadian Imperial
Bank LOC)(VMIG-1)
3.90%(1)............ 06/07/98 3,000 3,000,000
------------
64,767,310
------------
OKLAHOMA -- 3.22%
Oklahoma City Industrial &
Cultural Facilities RB
(Oklahoma Christian College)
AMT (Sumitomo Bank LOC) (A-1,
VMIG-1)
4.325%(1)........... 06/07/98 4,200 4,200,000
Oklahoma State Health Systems
IDRB (Baptist Medical Center
of Oklahoma Incorporated
Project) Series A DN (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 10,000 10,000,000
Oklahoma Water Resources Board
State Loan Program RB (Swiss
Bank LOC) (A-1+)
3.55%............... 09/01/98 6,500 6,500,000
------------
20,700,000
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
OREGON -- 1.15%
Oregon State Housing Authority
Community Services Department
Mortgage RB (Single Family
Mortgage Program) Series K AMT
(MIG-1)
3.875%.............. 12/03/98 $ 5,000 $ 5,000,000
Portland Multifamily Housing RB
(Village of Lovejoy Fountain)
AMT (Key Corporation Bank,
N.A. LOC)(A-1)
3.86%(1)............ 06/07/98 2,400 2,400,000
------------
7,400,000
------------
PENNSYLVANIA -- 0.06%
State of Pennsylvania Public
School Building Authority
(Pennsbury School District
Project) Series C
4.50%............... 01/15/99 400 401,851
------------
SOUTH CAROLINA -- 5.59%
Berkeley County IDRB (Nucor
Corporation Project) Series
1995 AMT (A-1+, P-1)
4.00%(1)............ 06/07/98 3,500 3,500,000
Berkeley County IDRB (Nucor
Corporation Project) Series
1997 AMT (A-1+, P-1)
4.00%(1)............ 06/07/98 9,000 9,000,000
Chesterfield County IDRB (Culp
Incorporated Project) AMT
(Wachovia Bank LOC)
3.95%(1)............ 06/07/98 6,000 6,000,000
Piedmont Municipal Power Agency
Electric Refunding RB Series B
DN (Credit Suisse LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 17,500 17,500,000
------------
36,000,000
------------
</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>
TENNESSEE -- 2.87%
Chattanooga IDRB (Southern
Foundry Supply Company
Project) AMT (Sun Trust LOC)
4.00%(1)............ 06/07/98 $ 2,700 $ 2,700,000
City of Clarksville Public
Building Authority Pooled
Financing RB (Tennessee
Municipal Bond Fund) Series
1997 DN (NationsBank LOC)
(VMIG-1)
3.95%(1)............ 06/07/98 6,900 6,900,000
City of Henderson IDRB (Premier
Manufacturing Corporation
Project) AMT (National City
Bank LOC)
4.05%(1)............ 06/07/98 5,100 5,100,000
City of Jackson IDRB (Quadion
Corporation Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
4.10%(1)............ 06/07/98 3,800 3,800,000
------------
18,500,000
------------
TEXAS -- 8.48%
Angelina & Neches River
Authority Solid Waste Disposal
RB (Temple-Eastex Incorporated
Project) AMT (P-1)
3.80%............... 09/04/98 8,650 8,650,000
Brazos River Authority (Texas
Utilities Electric Company)
AMT (AMBAC Insurance) (A-1,
VMIG-1)
4.15%(1)............ 06/01/98 7,400 7,400,000
Brazos River Harbor Navigation
District of Brazoria County RB
(The Dow Chemical Company
Project) Series 1998 AMT (A-1,
P-1)
4.20%(1)............ 06/01/98 4,200 4,200,000
Brownsville County IDRB (Rich-
Seapak Corporation Project)
AMT (Sun Trust LOC)
4.00%(1)............ 06/07/98 2,500 2,500,000
City of Haltom IDRB (Molded
Products Company Project)
Series 1995 AMT (ABN-AMRO Bank
N.V. LOC)(A-1+)
3.95%(1)............ 06/07/98 3,300 3,300,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Gulf Coast Waste Disposal
Authority PCRB (Amoco Oil
Company Project) Series 1996
AMT (A-1+, P-1)
4.15%(1)............ 06/01/98 $ 3,200 $ 3,200,000
Hockley County IDA PCRB (Amoco
Project) (A-1+, P-1)
3.65%............... 11/01/98 5,440 5,440,000
Lower Colorado River Authority
Refunding RB DN (AMBAC
Insurance)(A-1+, VMIG-1)
3.90%(1)............ 06/07/98 12,500 12,500,000
Mesquite County IDRB (Morrison
Products Incorporated Project)
Series 1994 AMT (Society
National Bank of Cleveland
LOC) (VMIG-1)
3.86%(1)............ 06/07/98 1,500 1,500,000
Montgomery County IDRB (Sawyer
Research Products
Incorporated) AMT (Key
Corporation Bank, N.A. LOC)
4.01%(1)............ 06/07/98 1,830 1,830,000
Sulphur Springs IDRB (CMH
Manufacturing Incorporated
Project) AMT (Wachovia Bank
LOC)
3.95%(1)............ 06/07/98 4,030 4,030,000
------------
54,550,000
------------
UTAH -- 1.93%
Utah County Environmental
Improvement RB (USX
Corporation Project) (Wachovia
Bank LOC) (A-1+, VMIG-1)
3.60%............... 06/15/98 7,000 7,000,000
Utah State Board of Regents
Student Loan RB Series 1988B
DN (Swiss Bank LOC) (A-1+,
VMIG-1)
3.90%(1)............ 06/07/98 5,400 5,400,000
------------
12,400,000
------------
VERMONT -- 1.24%
Vermont IDRB (Wallace Computer
Services Project) DN (Wachovia
Bank LOC)
3.85%(1)............ 06/07/98 8,000 8,000,000
------------
</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>
VIRGINIA -- 1.55%
King George County IDA RB
(Birchwood Power Partners,
L.P. Project) Series 1997 AMT
(Credit Suisse LOC)(A-1+)
4.20%(1)............ 06/01/98 $ 600 $ 600,000
Metropolitan Washington D.C.
Airports Authority Revenue
Notes AMT (NationsBank LOC)
(A-1+)
3.85%............... 08/10/98 2,500 2,500,000
3.80%............... 08/28/98 6,900 6,900,000
------------
10,000,000
------------
WASHINGTON -- 0.66%
Pilchuck Public Development
Corporation RB (Holden-
Mcdaniels Partners, Project)
(Key Corporation Bank, N.A.
LOC)
4.01%(1)............ 06/07/98 2,300 2,300,000
Washington State Housing Finance
Authority Single Family
Mortgage Program Series 5A AMT
(Bayerische Landesbank
Girozentrale LOC) (VMIG-1)
3.90%............... 12/15/98 1,925 1,925,000
------------
4,225,000
------------
WEST VIRGINIA -- 2.00%
Fayette County Community Solid
Waste Disposal Facilities RB
(Georgia Pacific Corporation
Project) AMT (Industrial Bank
of Japan LOC)
4.80%(1)............ 06/07/98 10,000 10,000,000
West Virginia Economic
Development Authority IDRB
(North American Processing
Company Project) AMT (National
City Bank of Cleveland LOC)
4.05%(1)............ 06/07/98 2,860 2,860,000
------------
12,860,000
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
WISCONSIN -- 1.49%
City of Janesville IDRB (Freedom
Plastics Incorporated Project)
AMT (ABN-AMRO Bank N.V.
LOC)(A-1+)
3.95%(1)............ 06/07/98 $ 2,800 $ 2,800,000
City of Mequon IDRB (Johnson
Level Company Project) AMT
(Bank One Columbus LOC)
4.00%(1)............ 06/07/98 2,500 2,500,000
Stevens Point RB (Consolidated
Paper Company Project) AMT
(Wachovia Bank LOC)
3.95%(1)............ 06/07/98 3,600 3,600,000
Wisconsin Health & Educational
Facilities Authority Hospital
RB (Charity Obligated Group)
Series 1997F DN (A-1+, VMIG-1)
3.90%(1)............ 06/07/98 700 700,000
------------
9,600,000
------------
WYOMING -- 0.19%
Carbon County PCRB (Amoco
Company Project) (A-1+)
3.65%............... 11/01/98 1,200 1,200,000
------------
</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 $642,735,232*)............ 99.88% $642,735,232
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.12 748,492
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 545,195,257
MuniCash Shares and 98,425,517
MuniCash Dollar Shares
outstanding).................... 100.00% $643,483,724
------- ------------
------- ------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE
($643,483,724 / 643,620,774)............. $1.00
-----
-----
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same. Market value of securities
subject to federal alternative minimum tax is 55.42% of
the total market value.
(1) Variable rate.
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
- ------------------------------------------------------
</TABLE>
MUNICASH PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
May 31, 1998
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C> <C> <C>
1- 30 Days... $523,007,000 81.4%
31- 60 Days.. 29,560,000 4.6
61- 90 Days.. 17,570,000 2.7
91-120 Days.. 20,315,000 3.2
121-150
Days......... 8,630,000 1.3
Over 150
Days......... 43,622,000 6.8
Average Weighted Maturity -- 29 Days
- ------------------------------------------------------
</TABLE>
------------------------------------------------------
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
AMT Alternative Minimum Tax
BAN Bond Demand 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
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
TRAN Tax and Revenue Anticipation Note
</TABLE>
The Moody's Investor's Service, Inc. and Standard & Poor's Ratings Service
ratings of the investments in the various Portfolios are believed to be the most
recent ratings available at May 31, 1998.
See accompanying notes to financial statements.
18
<PAGE> 19
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Operations
Six Months Ended May 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
MUNIFUND MUNICASH
PORTFOLIO PORTFOLIO
----------- -----------
<S> <C> <C>
Investment income:
Interest income......................................... $11,141,502 $10,740,582
----------- -----------
Expenses:
Investment advisory fee................................. 541,668 501,912
Administration fee...................................... 541,668 501,912
Trustees' fees and officer's salary..................... 39,693 30,627
Transfer agent fee...................................... 25,498 13,410
Custodian fee........................................... 65,387 61,589
Legal and audit......................................... 21,374 18,855
Registration expenses................................... 15,922 8,678
Printing................................................ 6,807 4,500
Other................................................... 16,857 7,388
----------- -----------
1,274,874 1,148,871
Less fees waived........................................ (439,159) (632,620)
----------- -----------
835,715 516,251
Service Organization fees -- Dollar Shares.............. 75,871 155,314
----------- -----------
Total expenses..................................... 911,586 671,565
----------- -----------
Net investment income................................... 10,229,916 10,069,017
----------- -----------
Realized gain (loss) on investments:
Net realized gain (loss) from security transactions..... (15,355) 2,882
Increase in amortized market discount................... -- 8,649
----------- -----------
Net gain (loss) on investments.......................... (15,355) 11,531
----------- -----------
Net increase in net assets resulting from operations.... $10,214,561 $10,080,548
=========== ===========
</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, 1998 NOVEMBER 30, 1997 MAY 31, 1998 NOVEMBER 30, 1997
---------------- ----------------- ---------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income...................... $ 10,229,916 $ 23,313,742 $ 10,069,017 $ 16,148,324
Net gain (loss) on investments............. (15,355) (12,899) 11,531 18,102
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations............................. 10,214,561 23,300,843 10,080,548 16,166,426
--------------- --------------- --------------- ---------------
Dividends to shareholders from net investment
income:
MuniFund Shares............................ (9,289,195) (21,420,775) -- --
MuniFund Dollar Shares..................... (940,721) (1,892,967) -- --
MuniCash Shares............................ -- -- (8,026,827) (12,338,904)
MuniCash Dollar Shares..................... -- -- (2,042,190) (3,809,420)
--------------- --------------- --------------- ---------------
Total dividends to shareholders.......... (10,229,916) (23,313,742) (10,069,017) (16,148,324)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Proceeds from sale of shares............... 3,388,584,624 6,510,103,572 3,824,345,260 6,354,866,941
Value of shares issued in reinvestment of
dividends................................ 2,470,048 4,991,057 4,161,297 7,730,075
Cost of shares repurchased................. (3,478,285,076) (6,502,501,131) (3,732,804,400) (6,197,916,583)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived
from capital share transactions........ (87,230,404) 12,593,498 95,702,157 164,680,433
--------------- --------------- --------------- ---------------
Total increase (decrease) in net
assets................................. (87,245,759) 12,580,599 95,713,688 164,698,535
Net assets:
Beginning of period............................. 604,180,614 591,600,015 547,770,036 383,071,501
--------------- --------------- --------------- ---------------
End of period................................... $ 516,934,855 $ 604,180,614 $ 643,483,724 $ 547,770,036
=============== =============== =============== ===============
</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
------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
SIX MONTHS -----------------------------------------------
ENDED
MAY 31,
1998 1997 1996 1995 1994 1993
----------- ------- ------- ------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment
Income............... .0167 .0338 .0326 .0360 .0255 .0224
-------- ------ ------ ------ ------ ------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... (.0167) (.0338) (.0326) (.0360) (.0255) (.0224)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
-------- ------ ------ ------ ------ ------
Total Return............ 3.39%(2) 3.43% 3.31% 3.66% 2.58% 2.27%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... 452,774 536,794 530,204 720,318 687,895 1,019,749
Ratio of Expenses to
Average Daily Net
Assets(1).............. .27%(2) .27% .27% .27% .26% .25%
Ratio of Net Investment
Income to Average
Daily Net Assets....... 3.34%(2) 3.38% 3.26% 3.59% 2.53% 2.24%
<CAPTION>
MUNIFUND DOLLAR SHARES
---------------------------------------------------
YEAR ENDED NOVEMBER 30,
SIX MONTHS --------------------------------------
ENDED
MAY 31,
1998 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------ ------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment
Income............... .0155 .0313 .0301 .0335 .0230 .0199
-------- ------ ------ ------ ------ ------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... (.0155) (.0313) (.0301) (.0335) (.0230) (.0199)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
-------- ------ ------ ------ ------ ------
Total Return............ 3.14%(2) 3.18% 3.06% 3.41% 2.33% 2.02%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... 64,161 67,387 61,396 6,474 2,785 6,783
Ratio of Expenses to
Average Daily Net
Assets(1).............. .52%(2) .52% .52% .52% .51% .50%
Ratio of Net Investment
Income to Average
Daily Net Assets....... 3.09%(2) 3.13% 3.01% 3.34% 2.28% 1.99%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.41% (annualized) for
the six months ended May 31, 1998 and 0.41%, 0.42%, 0.41%, 0.41% and 0.41%,
respectively, for the years ended November 30, 1997, 1996, 1995, 1994 and
1993 for MuniFund Shares and 0.66% (annualized) for the six months ended May
31, 1998 and 0.66%, 0.67%, 0.66%, 0.66% and 0.66%, respectively, for the
years ended November 30, 1997, 1996, 1995, 1994 and 1993 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
------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
SIX MONTHS -----------------------------------------------
ENDED
MAY 31,
1998 1997 1996 1995 1994 1993
----------- ------- ------- ------- --------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment Income.... .0177 .0358 .0350 .0382 .0266 .0235
-------- ------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income................. (.0177) (.0358) (.0350) (.0382) (.0266) (.0235)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of
Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
-------- ------ ------ ------ ------ ------
Total Return.............. 3.60%(2) 3.63% 3.56% 3.89% 2.69% 2.38%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... 545,084 397,681 281,544 321,642 273,439 572,482
Ratio of Expenses to
Average Daily Net
Assets(1)................ .18%(2) .18% .18% .18% .19% .20%
Ratio of Net Investment
Income to Average Daily
Net Assets............... 3.57%(2) 3.58% 3.50% 3.83% 2.59% 2.36%
<CAPTION>
MUNICASH DOLLAR SHARES
---------------------------------------------------
YEAR ENDED NOVEMBER 30,
SIX MONTHS --------------------------------------
ENDED
MAY 31,
1998 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------ ------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment Income.... .0165 .0333 .0325 .0357 .0241 .0210
-------- ------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income................. (.0165) (.0333) (.0325) (.0357) (.0241) (.0210)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of
Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
-------- ------ ------ ------ ------ ------
Total Return.............. 3.35%(2) 3.38% 3.31% 3.64% 2.44% 2.13%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... 98,400 150,089 101,528 101,424 99,688 95,225
Ratio of Expenses to
Average Daily Net
Assets(1)................ .43%(2) .43% .43% .43% .44% .45%
Ratio of Net Investment
Income to Average Daily
Net Assets............... 3.32%(2) 3.33% 3.25% 3.58% 2.34% 2.11%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.40% (annualized) for
the six months ended May 31, 1998 and 0.41%, 0.42%, 0.41%, 0.42% and 0.42%,
respectively, for the years ended November 30, 1997, 1996, 1995, 1994 and
1993 for MuniCash Shares and 0.65% (annualized) for the six months ended May
31, 1998 and 0.66%, 0.67%, 0.66%, 0.67% and 0.67%, respectively, for the
years ended November 30, 1997, 1996, 1995, 1994 and 1993 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.
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 for the benefit of their customers. The Service Organization fee is
charged 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:
Use of Estimates -- 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 Blackrock Institutional Management Corporation ("BIMC"), an indirect
majority-owned subsidiary of PNC Bank, BIMC 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.
In March 1998, BIMC (formerly known as PNC Institutional Management
Corporation)
23
<PAGE> 24
Notes to Financial Statements (Continued)
assumed the responsibilities of PNC Bank, as sub-advisor, to provide research,
credit analysis and recommendations with respect to the Fund's investments and
supply certain computer facilities, personnel and other services. The personnel
and facilities related to these services have been transferred to BIMC and
BIMC's obligation to pay to PNC Bank a portion of the advisory fee has been
terminated.
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
BIMC and the Administrators each a fee, computed daily and payable monthly,
based upon an annualized 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 BIMC 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 BIMC have also agreed to reduce their fees, on an
equal basis, to the extent necessary to ensure that the total operating expenses
(excluding Service Organization fees) of MuniFund 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, 1998 the Administrators and BIMC
voluntarily waived $439,159 of the advisory and administration fees payable to
them with respect to MuniFund and $632,620 with respect to MuniCash.
There were no Service Organization fees paid to affiliates of PNC Bank for
the six months ended May 31, 1998.
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, 1998 NOVEMBER 30, 1997
----------------------- ------------------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
MuniFund......................................... 3,287,773,124 6,227,675,068
MuniFund Dollar.................................. 100,811,500 282,428,504
Shares issued in reinvestment of dividends:
MuniFund......................................... 1,618,448 3,196,915
MuniFund Dollar.................................. 851,600 1,794,142
Shares repurchased:
MuniFund......................................... (3,373,397,442) (6,224,270,348)
MuniFund Dollar.................................. (104,887,634) (278,230,783)
-------------- --------------
Net increase (decrease) in shares........... (87,230,404) 12,593,498
============== ==============
</TABLE>
<TABLE>
<CAPTION>
MUNICASH PORTFOLIO
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30, 1997
----------------------- ------------------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
MuniCash......................................... 3,645,262,230 6,053,929,400
MuniCash Dollar.................................. 179,083,030 300,937,541
Shares issued in reinvestment of dividends:
MuniCash......................................... 2,466,467 5,097,511
MuniCash Dollar.................................. 1,694,830 2,632,564
Shares repurchased:
MuniCash......................................... (3,500,334,995) (5,942,903,293)
MuniCash Dollar.................................. (232,469,405) (255,013,290)
-------------- --------------
Net increase in shares...................... 95,702,157 164,680,433
============== ==============
</TABLE>
On May 31, 1998, one shareholder held approximately 24% of the outstanding
shares of MuniFund and four shareholders held approximately 49% of the
outstanding shares of MuniCash.
E. At November 30, 1997, capital loss carryovers, expiring at various times from
1998 to 2005, were available to offset possible future capital gains of the
respective portfolios, as follows: MuniFund, $82,985 and MuniCash, $148,581.
F. At May 31, 1998, net assets consisted of the following:
<TABLE>
<CAPTION>
MUNIFUND MUNICASH
------------ ------------
<S> <C> <C>
Paid-in capital............................................. $517,033,195 $643,620,774
Accumulated net realized loss on investments................ (98,340) (145,699)
Amortized market discount................................... -- 8,649
------------ ------------
Total Net Assets............................................ $516,934,855 $643,483,724
============ ============
</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
Thomas H. Nevin
President
Lisa M. Buono
Treasurer
W. Bruce McConnel, III
Secretary
Investment Adviser
BlackRock 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-SA-009
MUNIFUND
MUNICASH
Investment Portfolios
Offered by
Municipal Fund for
Temporary Investment
LOGO
Semi-Annual Report
to Shareholders
May 31, 1998
