<PAGE> 1
PROVIDENT
- -------------------------------------------------------------------------------
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809 Phone:
FUNDS 302-792-2555 Fax: 302-792-5876
G. Willing Pepper
Chairman TRUST FOR FEDERAL SECURITIES
December 11, 1995
Dear Shareholder:
Enclosed is the Annual Report to Shareholders of Trust for Federal
Securities for the year ended October 31, 1995.
I urge you to read the Investment Adviser's Report which contains
interesting comments on the economy.
Provident Institutional Funds remains committed to providing its
shareholders with quality service, liquidity, competitive returns and stability
of principal.
If you have any questions about Trust for Federal Securities, please
contact your Provident Distributors, Inc. account representative or our Client
Service Center at (800) 821-7432. They will also be able to provide information
about other portfolios offered by Provident Institutional Funds.
Your continued confidence in Provident Institutional Funds is greatly
appreciated.
Sincerely,
/s/ G. WILLING PEPPER
---------------------
G. Willing Pepper
<PAGE> 2
TRUST FOR FEDERAL SECURITIES
ANNUAL INVESTMENT ADVISER'S REPORT
Economic activity rebounded in the third quarter from the very sluggish
pace of the second quarter. The preliminary report on Gross Domestic Product
(GDP) growth showed a jump to 4.2% from 1.3% in the prior quarter. Much of the
rebound can be traced to the interest rate sensitive sectors of the economy. The
nearly 200 basis point decline in bond yields from November 1994 to the present
has provided considerable stimulus to the housing and automobile markets. Sales
of computers were also very strong in the third quarter. New home sales rose by
37% from February to July and existing home sales climbed to their highest level
since May 1994. After a soft second quarter, automobile dealers are reporting
higher sales and manufacturers have begun hiking production schedules. Further
contributing to growth during the fourth quarter will be the absence of
inventory overhang. The inventory correction has largely passed and
manufacturers are finding themselves with few goods on the shelf. Capacity
utilization rates have risen to 84.3%, and both factory orders and durable goods
advanced as the fourth quarter began.
Not all the economic news is robust, however. Several factors should
constrain growth to its longer term potential of 2.5%. Most notable is the sharp
increase in consumer debt which could inhibit growth in household spending.
Concurrent with the increase in debt has been a modest pace of job growth. Both
these factors should combine to erode consumer confidence.
The most encouraging reports continue to be the ongoing moderation in
inflation. On a year-over-year basis through October, the Producer Price Index
and the Consumer Price Index increased by only 2.0-2.5%. Sluggish growth and
competition have hampered the pricing power of many companies, and as monthly
employment growth is averaging less than 150,000 jobs, wage pressures should
also remain constrained.
Finally, moderate growth and subdued inflation should permit the Federal
Reserve ("Fed") to keep short-term interest rates where they are. However, the
Fed seems to be predisposed toward easing. Indeed, it would be most unusual for
the Fed to only ease once, as they did on July 6. Recent indications of economic
weakness may be enough to tip the scale at the next Federal Open Market
Committee meeting on December 19. Market sentiment is clearly shifting toward
another cut in the federal funds rate. One year bills, for example, are trading
almost 50 basis points below overnight levels, a strong indicator of a 25-50
basis point easing in monetary policy.
The Trust's seven investment portfolios had combined assets of $5.1 billion
on October 31. The portfolios' investments were predominantly in short
maturities as the interest rate environment offered little incentive to extend.
The average weighted maturities of the Money Market Portfolios were maintained
in a moderate range of 35-45 days for most of the past quarter. As the Trust's
fiscal year came to a close, the most significant market factors were the
extension of the debt ceiling and the debate over a balanced federal budget.
Market sentiment was quite optimistic about both issues, pushing long-term
interest rates to two-year lows. With the likelihood of lower short-term rates,
the portfolios will look to prudently extend maturities during the final two
months of the year.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
TRUST FOR FEDERAL SECURITIES
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHORT GOVERNMENT SHARES
AND THE LEHMAN 1-3 YEAR GOVERNMENT INDEX
(FOR EACH YEAR ENDED OCTOBER 31)
<TABLE>
<CAPTION>
LEHMAN 1-3
SHORT YEAR
MEASUREMENT PERIOD GOVERNMENT GOVERNMENT
(FISCAL YEAR COVERED) SHARES INDEX
<S> <C> <C>
4/7/95 10000 10000
1987 10201 10365
10588 10762
1988 10975 11159
11466 11687
1989 11958 12216
12479 12756
1990 13000 13296
13683 14042
1991 14367 14789
14956 15389
1992 15545 15990
16042 16451
1993 16539 16912
16547 17010
1994 16555 17108
17192 17798
1995 17828 18488
</TABLE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHORT GOVERNMENT DOLLAR
SHARES
AND THE LEHMAN 1-3 YEAR GOVERNMENT INDEX
(FOR EACH YEAR ENDED OCTOBER 31)
<TABLE>
<CAPTION>
LEHMAN 1-3
SHORT YEAR
MEASUREMENT PERIOD GOVERMENT GOVERNMENT
(FISCAL YEAR COVERED) DOLLAR SHARES INDEX
<S> <C> <C>
1/4/88 10000 10000
1988 10695 10638
11159 11141
1989 11623 11645
12060 12159
1990 12498 12674
13138 13386
1991 13778 14098
14326 14670
1992 14874 15243
15335 15683
1993 15797 16123
15780 16196
1994 15764 16270
16576 16951
1995 17388 17632
</TABLE>
3
<PAGE> 4
FEDFUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
U.S. AGENCY & INSTRUMENTALITY
OBLIGATIONS--59.9%
Federal Farm Credit Bank Bonds
6.33%............. 11/01/95 $ 990 $ 990,000
6.38.............. 05/01/96 10,000 10,028,685
5.75.............. 08/01/96 5,000 4,993,728
--------------
16,012,413
--------------
Federal Farm Credit Bank
Discount Notes
5.55.............. 11/03/95 5,000 4,998,458
5.55.............. 11/20/95 12,000 11,964,850
5.52.............. 12/18/95 10,000 9,927,933
5.58.............. 12/18/95 15,000 14,890,725
5.55.............. 02/15/96 9,000 8,852,925
--------------
50,634,891
--------------
Federal Farm Credit Bank
Variable Rate Notes+
5.65.............. 11/01/95 40,000 39,956,877
5.71.............. 11/01/95 50,000 49,971,195
--------------
89,928,072
--------------
Federal Home Loan Bank Bonds
6.41.............. 11/22/95 3,900 3,901,395
9.50.............. 12/26/95 10,000 10,042,061
7.305............. 01/19/96 10,000 10,031,286
7.145............. 01/26/96 15,000 14,999,431
6.787............. 02/15/96 4,855 4,863,808
6.85.............. 02/28/96 17,400 17,439,348
8.10.............. 03/25/96 2,000 2,017,599
9.80.............. 03/25/96 5,400 5,482,366
6.01.............. 05/23/96 10,715 10,726,643
6.17.............. 06/05/96 10,000 9,993,201
--------------
89,497,138
--------------
Federal Home Loan Bank Discount
Notes
5.48.............. 04/12/96 2,000 1,950,376
--------------
Federal Home Loan Bank Variable
Rate Notes+
5.53.............. 11/01/95 17,000 17,000,000
5.725............. 11/01/95 25,000 24,987,738
--------------
41,987,738
--------------
Federal Home Loan Mortgage
Corporation Bonds
7.24.............. 02/05/96 3,150 3,160,056
6.84.............. 02/28/96 14,115 14,147,200
6.005............. 05/13/96 20,000 20,010,002
--------------
37,317,258
--------------
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
Federal Home Loan Mortgage
Corporation Discount Notes
5.55%............. 11/30/95 $ 13,150 $ 13,091,209
5.60.............. 01/05/96 13,500 13,363,500
5.60.............. 02/09/96 5,000 4,922,222
5.60.............. 05/10/96 5,000 4,851,444
--------------
36,228,375
--------------
Federal National Mortgage
Association Bonds
6.48.............. 03/27/96 22,000 22,065,725
5.97.............. 05/16/96 5,000 5,005,477
8.00.............. 07/10/96 5,000 5,072,242
6.00.............. 08/15/96 3,000 3,000,643
5.8125............ 09/27/96 25,000 24,993,217
--------------
60,137,304
--------------
Federal National Mortgage
Association Discount Notes
5.56.............. 11/13/95 8,800 8,783,691
5.81.............. 11/13/95 20,000 19,961,267
5.85.............. 12/11/95 5,000 4,967,500
5.52.............. 12/13/95 16,220 16,115,543
5.60.............. 02/12/96 10,700 10,528,562
5.50.............. 02/20/96 10,000 9,830,417
5.62.............. 04/12/96 20,000 19,491,078
--------------
89,678,058
--------------
Federal National Mortgage
Association Medium Term Notes
6.37.............. 11/14/95 5,750 5,751,089
6.67.............. 03/15/96 9,900 9,933,056
--------------
15,684,145
--------------
Federal National Mortgage
Association Variable Rate
Notes+
5.66.............. 11/01/95 15,000 14,995,393
5.68.............. 11/01/95 40,000 39,985,691
5.71.............. 11/01/95 20,000 19,990,438
5.78.............. 11/01/95 40,000 39,967,483
5.55.............. 11/07/95 40,000 40,000,000
--------------
154,939,005
--------------
Private Export Funding
Corporation Bonds
9.00.............. 01/31/96 17,375 17,504,150
--------------
Student Loan Marketing
Association Bonds
6.831............. 02/21/96 2,190 2,196,861
5.90.............. 10/04/96 8,000 8,000,000
--------------
10,196,861
--------------
</TABLE>
4
<PAGE> 5
FEDFUND PORTFOLIO
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
U.S. AGENCY & INSTRUMENTALITY
OBLIGATIONS (CONTINUED)
Student Loan Marketing
Association Variable Rate
Notes+
5.60%............. 11/07/95 $ 4,000 $ 4,001,402
5.62.............. 11/07/95 47,850 47,841,348
5.64.............. 11/07/95 38,545 38,471,957
5.65.............. 11/07/95 35,000 35,000,000
5.66.............. 11/07/95 10,000 10,005,795
5.78.............. 11/07/95 11,600 11,604,041
5.80.............. 11/07/95 4,475 4,473,759
5.825............. 11/07/95 71,520 71,612,994
5.85.............. 11/07/95 18,700 18,743,611
--------------
241,754,907
--------------
Total.................... 953,450,691
--------------
REPURCHASE AGREEMENTS--40.0%
Donaldson, Lufkin & Jenrette
Securities Corp.
5.95.............. 11/01/95 50,000 50,000,000
(Agreement dated 10/31/95
to be repurchased at
$50,008,264,
collateralized by
$8,985,809 Federal Home
Loan Mortgage Corporation
Adjustable Rate Notes
6.394% to 7.95% due from
09/01/23 to 06/01/35;
$8,772,210 Federal Home
Loan Mortgage Corporation
Bonds 6.50% to 8.50% due
from 06/01/99 to
07/01/23; $4,803,744
Federal National Mortgage
Association Adjustable
Rate Notes 5.438% to
7.476% due from 10/01/21
to 01/01/35; $15,199,641
Federal National Mortgage
Association Bonds 6.00%
to 7.50% due from
02/01/01 to 10/01/25;
$113,906,497 Federal
National Mortgage
Association Strips due
from 08/01/10 to
01/01/24. The market
value is $51,500,005.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
Goldman, Sachs & Co.
5.95%............. 11/01/95 $150,000 $ 150,000,000
(Agreement dated 10/31/95
to be repurchased at
$150,024,792,
collateralized by
$769,080,650 Federal Home
Loan Mortgage Corporation
Bonds 0.00% to 13.982%
due from 06/15/97 to
05/15/24; $27,047,192
Federal Home Loan
Mortgage Corporation
Strips 7.50% to 8.00% due
from 10/01/22 to
02/01/24; $332,728,702
Federal National Mortgage
Association Notes 0.00%
to 17.708% due from
07/25/98 to 04/25/24;
$601,071,284 Federal
National Mortgage
Association Strips 0.00%
to 10.00% due from
12/01/01 to 07/01/23. The
market value is
$154,500,000.)
Lehman Government Securities,
Inc.
5.80.............. 11/01/95 75,000 75,000,000
(Agreement dated 10/31/95
to be repurchased at
$75,012,083,
collateralized by
$74,780,000 U.S. Treasury
Notes 5.875% to 9.25% due
08/15/98. The market
value is $76,482,719.)
</TABLE>
5
<PAGE> 6
FEDFUND PORTFOLIO
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Merrill Lynch & Co., Inc.
5.85%............. 11/01/95 $ 60,000 $ 60,000,000
(Agreement dated 10/31/95
to be repurchased at
$60,009,750,
collateralized by
$43,545,000 U.S. Treasury
Notes and Bonds 8.00% to
15.75% due from 05/15/01
to 11/15/02. The market
value is $61,206,786.)
5.90.............. 11/01/95 70,000 70,000,000
(Agreement dated 10/31/95
to be repurchased at
$70,011,742,
collateralized by
$5,060,000 Federal Farm
Credit Bank Discount
Notes due from 01/03/96
to 02/01/96; $5,943,000
Federal Home Loan Bank
Bonds 5.13% to 9.50% due
from 11/20/95 to
02/25/04; $5,325,000
Federal Home Loan Bank
Discount Notes due
01/02/96; $235,000
Federal Home Loan Bank
Medium Term Notes 6.72%
to 6.73% due 08/02/05;
$3,767,000 Federal Land
Bank Bonds 7.35% to 7.95%
due from 10/21/96 to
01/20/97; $49,800,000
Federal National Mortgage
Association Bonds 5.80%
to 9.40% due from
08/10/98 to 09/12/05. The
market value is
$72,101,926.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
Morgan Stanley & Co.
5.95%............. 11/01/95 $150,000 $ 150,000,000
(Agreement dated 10/31/95
to be repurchased at
$150,024,792,
collateralized by
$178,957,200 Federal
National Mortgage
Association Notes 5.75%
to 7.00% due from
09/25/16 to 10/25/23. The
market value is
$155,020,303.)
PaineWebber Incorporated
5.93.............. 11/01/95 80,900 80,900,000
(Agreement dated 10/31/95
to be repurchased at
$80,913,326,
collateralized by
$144,894,000 U.S.
Treasury Strips 0.00% to
8.75% due from 11/15/95
to 11/15/24. The market
value is $82,519,123.)
--------------
Total.................. 635,900,000
--------------
</TABLE>
6
<PAGE> 7
FEDFUND PORTFOLIO
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,589,350,691*)....... 99.9% $1,589,350,691
OTHER ASSETS IN EXCESS OF
LIABILITIES.................. 0.1 1,001,270
------ --------------
NET ASSETS (equivalent to $1.00
per share based on
1,377,353,815 FedFund and
213,207,736 FedFund Dollar
shares of beneficial interest
outstanding)................. 100.0% $1,590,351,961
------ --------------
------ --------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($1,590,351,961 / 1,590,561,551)........ $1.00
-----
-----
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable rate obligations--the rate shown is the rate as of October 31, 1995,
and the maturity date shown is the date the principal amount can be recovered
upon demand or put.
- --------------------------------------------------------
FEDFUND
Maturity Schedule of Portfolio
October 31, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- -------------- ----------
<S> <C> <C>
1- 30 Days $1,234,180,000 77.6%
31- 60 Days 56,220,000 3.5
61- 90 Days 38,500,000 2.4
91-120 Days 93,785,000 5.9
Over 120 Days 168,015,000 10.6
</TABLE>
Average Weighted Maturity--35 Days
- --------------------------------------------------------
See accompanying notes to financial statements.
7
<PAGE> 8
T-FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES--19.3%
U.S. Treasury Bills
5.29%............. 05/30/96 $ 10,000 $ 9,689,947
--------------
U.S. Treasury Notes
4.625............. 02/29/96 20,000 19,895,695
5.125............. 03/31/96 50,000 49,748,121
9.375............. 04/15/96 20,000 20,320,302
5.50.............. 04/30/96 30,000 29,972,399
7.625............. 04/30/96 20,000 20,150,502
4.25.............. 05/15/96 10,000 9,925,919
7.375............. 05/15/96 40,000 40,347,265
7.25.............. 08/31/96 20,000 20,205,709
6.50.............. 09/30/96 30,000 30,180,104
--------------
240,746,016
--------------
Total............................... 250,435,963
--------------
REPURCHASE AGREEMENTS--81.4%
Aubrey G. Lanston & Co., Inc.
5.90.............. 11/01/95 60,000 60,000,000
(Agreement dated 10/31/95
to be repurchased at
$60,009,833,
collateralized by
$39,235,000 U.S. Treasury
Bonds 11.25% due
02/15/15. The market
value is $61,375,311.)
Donaldson, Lufkin & Jenrette
Securities Corp.
5.71.............. 11/16/95 135,000 135,000,000
(Agreement dated 10/17/95
to be repurchased at
$135,642,375,
collateralized by
$114,050,000 U.S.
Treasury Notes 7.50% to
8.875% due from 11/15/16
to 08/15/20. The market
value is $136,658,930.)
First (The) Boston Corp.
5.70.............. 11/16/95 40,000 40,000,000
(Agreement dated 10/26/95
to be repurchased at
$40,133,000,
collateralized by
$40,320,000 U.S. Treasury
Notes 6.50% due 09/30/96.
The market value is
$40,824,000.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
Goldman, Sachs & Co.
5.88%............. 11/01/95 $240,000 $ 240,000,000
(Agreement dated 10/31/95
to be repurchased at
$240,039,200,
collateralized by
$254,250,000 U.S.
Treasury Bonds, Notes and
Strips 5.375% to 9.00%
due from 08/15/97 to
08/15/22. The market
value is $244,800,823.)
Lehman Government Securities,
Inc.
5.92.............. 11/01/95 60,000 60,000,000
(Agreement dated 10/31/95
to be repurchased at
$60,009,867,
collateralized by
$58,420,000 U.S. Treasury
Notes 6.00% to 7.875% due
from 11/30/97 to
01/15/98. The market
value is $61,203,620.)
Merrill Lynch & Co., Inc.
5.85.............. 11/01/95 60,000 60,000,000
(Agreement dated 10/31/95
to be repurchased at
$60,009,750,
collateralized by
$60,540,000 U.S. Treasury
Notes 4.75% to 7.50% due
from 01/31/97 to
03/31/97. The market
value is $61,200,345.)
Morgan (J.P.) Securities, Inc.
5.70.............. 11/09/95 40,000 40,000,000
(Agreement dated 10/26/95
to be repurchased at
$40,088,667,
collateralized by
$40,547,000 U.S. Treasury
Notes 4.375% due
11/15/96. The market
value is $40,800,419.)
Morgan Stanley & Co.
5.835............. 11/01/95 247,600 247,600,000
(Agreement dated 10/31/95
to be repurchased at
$247,640,132,
collateralized by
$195,465,000 U.S.
Treasury Bills, Bonds and
Notes 6.125% to 15.75%
due from 11/16/95 to
08/15/25. The market
value is $252,590,493.)
</TABLE>
8
<PAGE> 9
T-FUND PORTFOLIO
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Smith Barney, Inc.
5.80%............. 11/01/95 $ 60,000 $ 60,000,000
(Agreement dated 10/31/95
to be repurchased at
$60,009,667,
collateralized by
$63,940,000 U.S. Treasury
Bills and Notes 6.75% due
from 04/18/96 to
05/31/97. The market
value is $61,304,330.)
Swiss Bank Corp.
5.90.............. 11/01/95 50,000 50,000,000
(Agreement dated 10/31/95
to be repurchased at
$50,008,194,
collateralized by
$32,570,000 U.S. Treasury
Bonds 11.25% due
02/15/15. The market
value is $51,056,732.)
UBS Securities, Inc.
5.87.............. 11/01/95 60,000 60,000,000
(Agreement dated 10/31/95
to be repurchased at
$60,009,783,
collateralized by
$58,150,000 U.S. Treasury
Notes 6.875% due
07/31/99. The market
value is $61,231,950.)
--------------
Total............................. 1,052,600,000
--------------
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,303,035,963*)....... 100.7% $1,303,035,963
LIABILITIES IN EXCESS OF OTHER
ASSETS....................... (0.7)% (9,314,038)
------ --------------
NET ASSETS (equivalent to $1.00
per share based on
1,211,196,665 T-Fund and
82,499,343 T-Fund Dollar
shares of beneficial interest
outstanding)................. 100.0% $1,293,721,925
------ --------------
------ --------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($1,293,721,925 / 1,293,696,008)........ $1.00
-----
-----
</TABLE>
- ---------------
* Cost for federal income tax purposes is $1,303,043,001.
- --------------------------------------------------------
T-FUND
Maturity Schedule of Portfolio
October 31, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- -------------- ----------
<S> <C> <C>
1- 30 Days $1,052,600,000 80.8%
121-150 Days 20,000,000 1.5
Over 150 Days 230,000,000 17.7
</TABLE>
Average Weighted Maturity--42 Days
- --------------------------------------------------------
See accompanying notes to financial statements.
9
<PAGE> 10
FEDCASH PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
U.S. AGENCY & INSTRUMENTALITY
OBLIGATIONS--70.5%
Federal Farm Credit Bank Discount
Notes
5.55%................ 11/03/95 $ 5,000 $ 4,998,458
5.59................. 02/12/96 8,000 7,872,051
5.55................. 02/15/96 2,000 1,967,317
------------
14,837,826
------------
Federal Farm Credit Bank Notes
5.75................. 08/01/96 5,000 4,993,728
------------
Federal Farm Credit Bank Variable
Rate Notes+
5.71................. 11/01/95 35,000 34,978,776
------------
Federal Home Loan Bank Discount
Notes
6.00................. 12/22/95 5,000 4,957,500
------------
Federal Home Loan Bank Notes
9.75................. 02/09/96 1,140 1,151,576
------------
Federal Home Loan Bank Variable
Rate Notes+
5.655................ 11/02/95 5,000 4,998,470
------------
Federal Home Loan Mortgage
Corporation Discount Notes
5.60................. 02/09/96 5,000 4,922,222
5.60................. 05/10/96 5,000 4,851,444
5.43................. 06/12/96 2,955 2,855,160
------------
12,628,826
------------
Federal Home Loan Mortgage
Corporation Notes
6.005................ 05/13/96 5,000 5,009,104
------------
Federal National Mortgage
Association Discount Notes
5.85................. 12/11/95 5,000 4,967,500
5.58................. 01/09/96 5,000 4,946,525
5.58................. 01/25/96 10,000 9,868,250
------------
19,782,275
------------
Federal National Mortgage
Association Notes
6.37................. 11/14/95 2,375 2,375,422
6.72................. 02/28/96 3,210 3,213,781
6.48................. 03/27/96 5,000 5,012,625
8.00................. 07/10/96 5,000 5,072,242
5.8125............... 09/27/96 10,000 9,997,287
------------
25,671,357
------------
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
Federal National Mortgage
Association Variable Rate Notes+
5.78%................ 11/01/95 $10,000 $ 9,991,871
5.83................. 11/01/95 10,000 10,000,000
5.55................. 11/07/95 18,000 18,000,000
------------
37,991,871
------------
Student Loan Marketing Association
Notes
4.53................. 11/09/95 10,225 10,221,712
------------
Student Loan Marketing Association
Variable Rate Notes+
5.62................. 11/07/95 25,000 25,006,536
5.64................. 11/07/95 10,000 10,000,000
5.66................. 11/07/95 10,000 10,000,000
5.67................. 11/07/95 7,545 7,547,045
5.80................. 11/07/95 10,000 10,037,435
5.825................ 11/07/95 8,000 8,013,978
5.85................. 11/07/95 5,000 5,005,742
------------
75,610,736
------------
Total................................. 252,833,757
------------
REPURCHASE AGREEMENTS--29.4%
Donaldson, Lufkin & Jenrette
Securities Corp.
5.95................. 11/01/95 50,000 50,000,000
(Agreement dated 10/31/95 to
be repurchased at
$50,008,264, collateralized
by $33,359,523 Federal Home
Loan Mortgage Corporation
Floating Rate Notes and
Bonds 6.383% to 8.214% due
from 03/01/19 to 06/01/30;
$9,611,072 Federal Home Loan
Mortgage Corporation Notes
and Bonds 7.07% to 13.00%
due from 07/01/99 to
05/15/22; $10,510,818
Federal National Mortgage
Association Floating Rate
Notes 6.125% to 7.755% due
from 09/01/17 to 09/01/27;
$33,601,378 Federal National
Mortgage Association Notes
and Bonds 0.00% to 15.317%
due from 09/01/00 to
12/25/23. The market value
is $51,501,891.)
</TABLE>
10
<PAGE> 11
FEDCASH PORTFOLIO
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Merrill Lynch & Co., Inc.
5.90%................ 11/01/95 $30,000 $ 30,000,000
(Agreement dated 10/31/95 to
be repurchased at
$30,004,917, collateralized
by $51,967,000 Resolution
Trust Fund Company Strips
due from 01/15/02 to
01/15/05. The market value
is $30,902,764.)
PaineWebber Incorporated
5.93................. 11/01/95 25,500 25,500,000
(Agreement dated 10/31/95 to
be repurchased at
$25,504,200, collateralized
by $36,210,000 U.S. Treasury
Strips 7.75% to 8.00% due
from 02/15/01 to 08/15/01.
The market value is
$26,011,587.)
------------
Total............................... 105,500,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $358,333,757*)............ 99.9% 358,333,757
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.1 271,402
------ ------------
NET ASSETS (equivalent to $1.00
per share based on 356,679,113
FedCash and 2,006,078 FedCash
Dollar shares of beneficial
interest outstanding)........... 100.0% $358,605,159
------ ------------
------ ------------
<CAPTION>
<S> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($358,605,159 / 358,685,191).............. $1.00
-----
-----
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as
of October 31, 1995, and the maturity date shown is the
date the principal amount can be recovered upon demand or
put.
- ------------------------------------------------------
FEDCASH
Maturity Schedule of Portfolio
October 31, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $276,645,000 77.1%
31- 60 Days 10,000,000 2.8
61- 90 Days 15,000,000 4.2
91-120 Days 19,350,000 5.4
121-150 Days 5,000,000 1.4
Over 150 Days 32,955,000 9.1
</TABLE>
Average Weighted Maturity--39 days
- ------------------------------------------------------
See accompanying notes to financial statements.
11
<PAGE> 12
T-CASH PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--19.2%
U.S. Treasury Notes
5.125%............... 03/31/96 $10,000 $ 9,949,624
5.50................. 04/30/96 10,000 9,988,050
7.625................ 04/30/96 10,000 10,075,251
7.375................ 05/15/96 20,000 20,171,289
7.25................. 08/31/96 10,000 10,114,761
------------
Total................................. 60,298,975
------------
REPURCHASE AGREEMENTS--81.0%
Aubrey G. Lanston & Co., Inc.
5.90................. 11/01/95 15,000 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,458, collateralized
by $14,905,000 U.S. Treasury
Notes 6.25% due 08/31/00.
The market value is
$15,301,473.)
Donaldson, Lufkin & Jenrette
Securities Corp.
5.71................. 11/16/95 30,000 30,000,000
(Agreement dated 10/17/95 to
be repurchased at
$30,142,750, collateralized
by $23,125,000 U.S. Treasury
Notes 8.75% due 08/15/20.
The market value is
$30,605,938.)
Goldman, Sachs & Co.
5.88................. 11/01/95 60,000 60,000,000
(Agreement dated 10/31/95 to
be repurchased at
$60,009,800, collateralized
by $61,279,000 U.S. Treasury
Notes 4.75% due 02/15/97.
The market value is
$61,200,304.)
Hong Kong Shanghai Bank Corp.
5.85................. 11/01/95 15,000 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,438, collateralized
by $14,250,000 U.S. Treasury
Notes 5.625% to 7.625% due
from 06/15/97 to 02/15/25.
The market value is
$15,326,375.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
Lehman Government Securities, Inc.
5.92%................ 11/01/95 $15,000 $ 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,467, collateralized
by $14,600,000 U.S. Treasury
Notes 7.25% due 02/15/98.
The market value is
$15,302,302.)
Merrill Lynch & Co., Inc.
5.85................. 11/01/95 30,000 30,000,000
(Agreement dated 10/31/95 to
be repurchased at
$30,004,875, collateralized
by $29,710,000 U.S. Treasury
Notes 6.50% to 8.50% due
from 03/31/97 to 04/30/97.
The market value is
$30,600,343.)
Morgan (J.P.) Securities, Inc.
5.875................ 11/01/95 15,000 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,448, collateralized
by $10,365,000 U.S. Treasury
Bonds 12.00% due 05/15/05.
The market value is
$15,301,331.)
Morgan Stanley & Co.
5.835................ 11/01/95 28,900 28,900,000
(Agreement dated 10/31/95 to
be repurchased at
$28,904,684, collateralized
by $28,740,000 U.S. Treasury
Notes 5.875% due 05/31/96.
The market value is
$29,481,633.)
Smith Barney, Inc.
5.80................. 11/01/95 15,000 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,417, collateralized
by $15,470,000 U.S. Treasury
Bills and Notes 0.00% to
6.50% due from 03/14/96 to
05/15/97. The market value
is $15,314,299.)
</TABLE>
12
<PAGE> 13
T-CASH PORTFOLIO
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Swiss Bank Corp.
5.85%................ 11/01/95 $15,000 $ 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,438, collateralized
by $9,770,000 U.S. Treasury
Notes 11.25% due 02/15/15.
The market value is
$15,364,302.)
UBS Securities, Inc.
5.87................. 11/01/95 15,000 15,000,000
(Agreement dated 10/31/95 to
be repurchased at
$15,002,446, collateralized
by $14,645,000 U.S. Treasury
Notes 6.875% due 03/31/00.
The market value is
$15,315,741.)
------------
Total............................... 253,900,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $314,198,975*)............ 100.2% 314,198,975
LIABILITIES IN EXCESS OF OTHER
ASSETS.......................... (0.2) (620,811)
------ ------------
<CAPTION>
VALUE
------------
<S> <C> <C>
NET ASSETS (equivalent to $1.00
per share based on 250,036,829
T-Cash and 63,535,883 T-Cash
Dollar shares of beneficial
interest outstanding)........... 100.0% $313,578,164
------ ------------
------ ------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($313,578,164 / 313,572,712).............. $1.00
-----
-----
</TABLE>
- ---------------
* Cost for federal income tax purposes.
- -----------------------------------------------------
T-CASH
Maturity Schedule of Portfolio
October 31, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------ ------------ ----------
<S> <C> <C>
1- 30 Days $253,900,000 80.9%
151-180 Days 60,000,000 19.1
</TABLE>
Average Weighted Maturity--41 Days
- -----------------------------------------------------
See accompanying notes to financial statements.
13
<PAGE> 14
FEDERAL TRUST FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
U.S. AGENCY AND INSTRUMENTALITY
OBLIGATIONS--100.1%
Federal Farm Credit Bank
Discount Notes
5.60%.............. 11/16/95 $10,000 $ 9,976,667
5.59............... 11/17/95 10,000 9,975,156
5.60............... 11/21/95 10,000 9,968,888
5.55............... 11/22/95 5,070 5,053,586
5.63............... 11/22/95 3,220 3,209,425
5.65............... 11/22/95 4,000 3,986,817
5.52............... 11/28/95 935 931,129
5.63............... 11/28/95 1,545 1,538,477
------------
44,640,145
------------
Federal Farm Credit Bank Notes
6.10............... 11/01/95 2,700 2,700,000
------------
Federal Farm Credit Bank
Variable Rate Notes+
5.65............... 11/01/95 5,000 4,994,610
5.71............... 11/01/95 15,000 14,991,359
------------
19,985,969
------------
Federal Home Loan Bank Discount
Notes
5.62............... 11/06/95 15,000 14,988,290
5.57............... 11/08/95 1,180 1,178,722
5.60............... 11/14/95 10,000 9,979,778
5.61............... 11/20/95 15,000 14,955,588
5.55............... 12/05/95 235 233,768
5.58............... 01/03/96 10,000 9,902,350
5.58............... 01/10/96 1,400 1,384,810
5.52............... 02/12/96 2,310 2,273,517
------------
54,896,823
------------
Federal Home Loan Bank Variable
Rate Notes+
5.688.............. 11/02/95 20,000 19,986,824
------------
Student Loan Marketing
Association Variable Rate
Notes+
5.62............... 11/07/95 5,000 4,998,092
5.63............... 11/07/95 16,360 16,368,149
5.65............... 11/07/95 34,000 33,998,248
5.67............... 11/07/95 10,000 9,999,447
5.825.............. 11/07/95 5,000 5,005,827
5.85............... 11/07/95 5,000 5,011,660
------------
75,381,423
------------
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C>
Tennessee Valley Authority
Discount Notes
5.61%.............. 11/06/95 $ 5,000 $ 4,996,104
5.56............... 12/01/95 8,000 7,962,933
5.57............... 12/01/95 5,000 4,976,792
5.58............... 12/08/95 6,000 5,965,590
5.59............... 12/08/95 5,000 4,971,274
5.58............... 12/12/95 10,000 9,936,450
5.58............... 01/18/96 10,000 9,879,100
------------
48,688,243
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $266,279,427*).......... 100.1% 266,279,427
LIABILITIES IN EXCESS OF
OTHER ASSETS.................. (0.1) (159,545)
------ ------------
NET ASSETS (equivalent to $1.00
per share based on 237,903,787
Federal Trust and 28,405,007
Federal Trust Dollar shares of
beneficial interest
outstanding).................. 100.0% $266,119,882
------ ------------
------ ------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($266,119,882 / 266,308,794)............ $1.00
-----
-----
</TABLE>
- ---------------
* Cost for federal income tax purposes is $266,281,904.
+ Variable Rate Obligations--the rate shown is the rate as
of October 31, 1995, and the maturity date shown is the
date the principal amount can be recovered upon demand
or put.
- ------------------------------------------------------
FEDERAL TRUST FUND
Maturity Schedule of Portfolio
October 31, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $209,010,000 78.3%
31- 60 Days 34,235,000 12.8
61- 90 Days 21,400,000 8.0
Over 90 Days 2,310,000 0.9
</TABLE>
Average Weighted Maturity--19 Days
- ------------------------------------------------------
See accompanying notes to financial statements.
14
<PAGE> 15
TREASURY TRUST FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES--99.5%
U.S. Treasury Bills
5.415%............ 11/02/95 $ 20,000 $ 19,996,992
5.16.............. 11/16/95 6,100 6,086,885
5.17.............. 11/16/95 4,641 4,631,003
5.18.............. 11/16/95 100 99,784
5.19.............. 11/16/95 4,700 4,689,836
5.21.............. 11/16/95 50,000 49,891,458
5.24.............. 11/16/95 116,000 115,746,734
5.425............. 11/16/95 19,462 19,418,008
5.45.............. 11/16/95 7,445 7,428,094
5.22.............. 11/24/95 47,986 47,825,967
5.31.............. 12/07/95 5,000 4,973,450
5.35.............. 12/07/95 50,000 49,732,500
5.335............. 01/04/96 50,000 49,525,778
5.29.............. 01/11/96 35,200 34,832,756
5.30.............. 01/18/96 50,000 49,425,833
5.315............. 01/18/96 25,000 24,712,104
5.30.............. 02/01/96 39,000 38,471,767
5.44.............. 02/08/96 25,000 24,626,000
5.445............. 02/08/96 50,000 49,251,312
5.47.............. 02/08/96 20,000 19,699,150
5.48.............. 02/08/96 50,000 49,246,500
5.46.............. 02/15/96 25,000 24,598,083
5.39.............. 03/07/96 20,000 19,619,706
--------------
714,529,700
--------------
U.S. Treasury Notes
5.125............. 11/15/95 167,250 167,220,440
9.50.............. 11/15/95 103,000 103,148,699
4.25.............. 11/30/95 143,357 143,218,440
4.625............. 02/15/96 75,000 74,793,131
4.625............. 02/29/96 65,000 64,799,721
7.50.............. 02/29/96 50,000 50,310,820
--------------
603,491,251
--------------
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,318,020,951*)....... 99.5% $1,318,020,951
OTHER ASSETS IN EXCESS OF
LIABILITIES.................. 0.5 7,084,698
------ --------------
NET ASSETS (equivalent to $1.00
per share based on
1,101,887,481 Treasury Trust
and 223,279,080 Treasury
Trust Dollar shares of
beneficial interest
outstanding)................. 100.0% $1,325,105,649
------ --------------
------ --------------
NET ASSET VALUE, OFFERING AND
REDEMPTION
PRICE PER SHARE ($1,325,105,649 /
1,325,166,561).......................... $1.00
</TABLE>
- ---------------
* Cost for federal income tax purposes is $1,318,030,637.
- -----------------------------------------------------
TREASURY TRUST FUND
Maturity Schedule of Portfolio
October 31, 1995
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $690,041,000 52.1%
31- 60 Days 55,000,000 4.2
61- 90 Days 160,200,000 12.1
Over 90 Days 419,000,000 31.6
</TABLE>
Average Weighted Maturity--54 Days
- -----------------------------------------------------
See accompanying notes to financial statements.
15
<PAGE> 16
SHORT GOVERNMENT FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------ ----------
<S> <C> <C>
U.S. TREASURY NOTES--134.8%
4.25%................... 12/31/95 $ 200 $ 199,584
7.50.................... 01/31/97 200 204,548
8.625................... 08/15/97 215 225,855
5.875................... 08/15/98 200 200,972
7.00.................... 04/15/99 200 207,726
----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,034,900*)................. 134.8% 1,038,685
NET PAYABLE FOR FUND SHARES
REDEEMED........................... (36.8) (283,428)
OTHER ASSETS IN EXCESS OF OTHER
LIABILITIES........................ 2.0 15,199
------ ----------
NET ASSETS (equivalent to $9.42 per
share based on 70,974 Short
Government and 10,855 Short
Government Dollar shares of
beneficial interest outstanding)... 100.0% $ 770,456
------ ----------
------ ----------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($770,456 / 81,829)......................... $9.42
- ---------------
* Cost for federal income tax purposes.
Net unrealized appreciation for all
securities is as follows:
Excess of value over tax cost............... $3,785
- ----------------------------------------------------
</TABLE>
SHORT GOVERNMENT FUND
Maturity Schedule of Portfolio
October 31, 1995
Average Weighted Maturity--1.90 years
----------------------------------------------------
See accompanying notes to financial statements.
16
<PAGE> 17
TRUST FOR FEDERAL SECURITIES
Statements of Operations
Year Ended October 31, 1995
<TABLE>
<CAPTION>
FEDERAL TREASURY
TRUST TRUST
FEDFUND T-FUND FEDCASH T-CASH FUND FUND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income......................... $92,288,610 $74,450,769 $27,553,298 $19,647,085 $16,104,279 $74,485,642
----------- ----------- ----------- ----------- ----------- -----------
Expenses:
Investment advisory fee................. 1,992,524 1,620,479 599,169 428,287 353,070 1,680,822
Administration fee...................... 1,992,524 1,620,479 599,169 428,287 353,070 1,680,822
Trustees' fees and officer's salary..... 29,305 23,784 8,880 6,892 7,257 24,711
Transfer agent fee...................... 99,287 65,092 21,630 24,604 44,229 94,981
Custodian fee........................... 238,805 212,601 105,672 80,119 68,120 216,801
Shareholder computer access program..... 38,827 30,809 -- -- -- 37,414
Legal and audit......................... 50,621 41,129 15,326 10,881 8,988 42,670
Organization expense.................... -- -- 5,161 5,208 9,959 --
Registration fees and expenses.......... 24,576 20,069 21,331 15,907 16,232 23,950
Printing................................ 4,737 4,641 5,559 5,934 3,480 7,460
Other................................... 61,328 74,054 12,591 18,156 19,661 72,107
---------- ---------- ---------- ---------- ---------- ----------
4,532,534 3,713,137 1,394,488 1,024,275 884,066 3,881,738
Service Organization fees--Dollar
shares................................ 250,609 193,182 47,937 165,288 47,546 494,620
---------- ---------- ---------- ---------- ---------- ----------
4,783,143 3,906,319 1,442,425 1,189,563 931,612 4,376,358
Less fees waived........................ (1,711,611) (1,418,766) (551,341) (420,331) (384,066) (1,502,728)
---------- ---------- ---------- ---------- ---------- ----------
Total expenses........................ 3,071,532 2,487,553 891,084 769,232 547,546 2,873,630
---------- ---------- ---------- ---------- ---------- ----------
Net investment income................... 89,217,078 71,963,216 26,662,214 18,877,853 15,556,733 71,612,012
Realized gain (loss) on investments:
Net realized gain (loss) from security
transactions.......................... (45,794) 82,827 (22,449) 8,562 (28,332) 207,807
---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets resulting
from operations....................... $89,171,284 $72,046,043 $26,639,765 $18,886,415 $15,528,401 $71,819,819
=========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 18
TRUST FOR FEDERAL SECURITIES
Statements of Operations
Year Ended October 31, 1995
<TABLE>
<CAPTION>
SHORT
GOVERNMENT
FUND
PORTFOLIO
----------
<S> <C>
Investment Income:
Interest income.................................................................................................... $263,818
--------
Expenses:
Investment advisory fee............................................................................................ 8,272
Administration fee................................................................................................. 8,272
Trustees' fees and officer's salary................................................................................ 58
Transfer agent fee................................................................................................. 2,323
Custodian fee...................................................................................................... 3,931
Legal and audit.................................................................................................... 104
Registration fees and expenses..................................................................................... 19,579
Printing........................................................................................................... 2,076
Other.............................................................................................................. 1,690
--------
46,305
Service Organization fees--Dollar shares........................................................................... 8,307
--------
54,612
Less fees waived and expenses reimbursed........................................................................... (29,761)
--------
Total expenses................................................................................................... 24,851
--------
Net investment income.............................................................................................. 238, 967
--------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions....................................................................... (1,500)
Change in unrealized appreciation of investments................................................................... 23,568
--------
Net gain on investments............................................................................................ 22,068
--------
Net increase in net assets resulting from operations............................................................... $261,035
========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 19
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FEDFUND PORTFOLIO T-FUND PORTFOLIO
----------------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ---------------- ---------------- ----------------
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income............................ $ 89,217,078 $ 50,934,062 $ 71,963,216 $ 42,260,560
Net gain (loss) on investments................... (45,794) (69,818) 82,827 24,931
---------------- ---------------- ---------------- ----------------
Net increase in net assets resulting from
operations..................................... 89,171,284 50,864,244 72,046,043 42,285,491
---------------- ---------------- ---------------- ----------------
Distributions to shareholders:
From net investment income:
FedFund shares................................. (83,746,687) (46,624,473) -- --
FedFund Dollar shares.......................... (5,470,391) (4,309,589) -- --
T-Fund shares.................................. -- -- (67,772,884) (41,643,869)
T-Fund Dollar shares........................... -- -- (4,190,332) (616,691)
---------------- ---------------- ---------------- ----------------
Total distributions to shareholders.......... (89,217,078) (50,934,062) (71,963,216) (42,260,560)
---------------- ---------------- ---------------- ----------------
Capital share transactions (at $1 per share):
Sale of shares................................... 16,892,053,417 20,324,163,439 11,150,517,492 10,514,363,640
Reinvestment of dividends........................ 18,244,413 9,062,973 21,879,407 8,945,390
Repurchase of shares............................. (17,013,231,572) (20,100,673,406) (10,913,929,463) (10,863,024,585)
---------------- ---------------- ---------------- ----------------
Increase (decrease) in net assets derived from
capital share transactions..................... (102,933,742) 232,553,006 258,467,436 (339,715,555)
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets...... (102,979,536) 232,483,188 258,550,263 (339,690,624)
Net assets:
Beginning of period................................ 1,693,331,497 1,460,848,309 1,035,171,662 1,374,862,286
---------------- ---------------- ---------------- ----------------
End of period...................................... $ 1,590,351,961 $ 1,693,331,497 $ 1,293,721,925 $ 1,035,171,662
================ ================ ================ ================
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 20
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FEDCASH T-CASH
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ---------------- ---------------- ----------------
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income............................ $ 26,662,214 $ 23,630,980 $ 18,877,853 $ 15,543,622
Net gain (loss) on investments................... (22,449) (6,709) 8,562 10,453
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations..................................... 26,639,765 23,624,271 18,886,415 15,554,075
--------------- --------------- --------------- ---------------
Distributions to shareholders:
From net investment income:
FedCash shares................................. (25,627,701) (22,236,307) -- --
FedCash Dollar shares.......................... (1,034,513) (1,394,673) -- --
T-Cash shares.................................. -- -- (15,329,472) (11,980,470)
T-Cash Dollar shares........................... -- -- (3,548,381) (3,563,152)
--------------- --------------- --------------- ---------------
Total distributions to shareholders.......... (26,662,214) (23,630,980) (18,877,853) (15,543,622)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Sale of shares................................... 3,928,025,201 6,586,200,619 2,375,887,078 3,494,135,508
Reinvestment of dividends........................ 4,123,020 8,312,109 1,364,407 3,229,181
Repurchase of shares............................. (4,225,466,780) (6,449,348,793) (2,370,885,047) (3,775,988,923)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions..................... (293,318,559) 145,163,935 6,366,438 (278,624,234)
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets...... (293,341,008) 145,157,226 6,375,000 (278,613,781)
Net assets:
Beginning of period................................ 651,946,167 506,788,941 307,203,164 585,816,945
--------------- --------------- --------------- ---------------
End of period...................................... $ 358,605,159 $ 651,946,167 $ 313,578,164 $ 307,203,164
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FEDERAL TRUST TREASURY TRUST
FUND PORTFOLIO FUND PORTFOLIO
----------------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ---------------- ---------------- ----------------
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income............................ $ 15,556,733 $ 11,296,421 $ 71,612,012 $ 48,284,615
Net gain (loss) on investments................... (28,332) (71,784) 207,807 (184,663)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations..................................... 15,528,401 11,224,637 71,819,819 48,099,952
--------------- --------------- --------------- ---------------
Distributions to shareholders:
From net investment income:
Federal Trust shares........................... (14,527,800) (11,168,689) -- --
Federal Trust Dollar shares.................... (1,028,933) (127,732) -- --
Treasury Trust shares.......................... -- -- (61,302,514) (42,229,885)
Treasury Trust Dollar shares................... -- -- (10,309,498) (6,054,730)
From net realized gains:
Treasury Trust shares.......................... -- -- -- (6,557)
Treasury Trust Dollar shares................... -- -- -- (1,220)
--------------- --------------- --------------- ---------------
Total distributions to shareholders.......... (15,556,733) (11,296,421) (71,612,012) (48,292,392)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Sale of shares................................... 2,175,257,820 3,224,796,906 6,693,714,678 7,688,786,462
Reinvestment of dividends........................ 3,867,949 2,840,411 20,785,978 11,595,449
Repurchase of shares............................. (2,239,024,990) (3,159,667,718) (6,588,171,696) (7,948,238,689)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions..................... (59,899,221) 67,969,599 126,328,960 (247,856,778)
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets...... (59,927,553) 67,897,815 126,536,767 (248,049,218)
Net assets:
Beginning of period................................ 326,047,435 258,149,620 1,198,568,882 1,446,618,100
--------------- --------------- --------------- ---------------
End of period...................................... $ 266,119,882 $ 326,047,435 $ 1,325,105,649 $ 1,198,568,882
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 22
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SHORT
GOVERNMENT
FUND PORTFOLIO
-----------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income................................................................... $ 238,967 $ 331,648
Net gain (loss) on investments.......................................................... 22,068 (359,482)
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... 261,035 (27,834)
------------ ------------
Distributions to shareholders:
From net investment income:
Short Government shares............................................................... (47,448) (55,662)
Short Government Dollar shares........................................................ (191,519) (275,986)
From net realized gains:
Short Government shares............................................................... -- (67,302)
Short Government Dollar shares........................................................ -- (359,354)
------------ ------------
Total distributions to shareholders................................................. (238,967) (758,304)
------------ ------------
Capital share transactions:
Sale of shares.......................................................................... 28,184,334 22,233,001
Reinvestment of dividends............................................................... 36,924 70,596
Repurchase of shares.................................................................... (32,390,468) (22,716,105)
------------ ------------
Decrease in net assets derived from capital share transactions.......................... (4,169,210) (412,508)
------------ ------------
Total decrease in net assets........................................................ (4,147,142) (1,198,646)
Net assets:
Beginning of period....................................................................... 4,917,598 6,116,244
------------ ------------
End of period............................................................................. $ 770,456 $ 4,917,598
============ ============
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 23
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FEDFUND SHARES
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Income From Investment
Operations:
Net Investment Income....... .0571 .0377 .0308 .0397 .0637
Net Capital Gains........... -- -- .0001 .0010 --
---------- ---------- ---------- ---------- ----------
Total From Investment
Operations.............. .0571 .0377 .0309 .0407 .0637
---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0571) (.0377) (.0308) (.0397) (.0637)
Net Capital Gains........... -- -- (.0001) (.0010) --
---------- ---------- ---------- ---------- ----------
Total Distributions....... (.0571) (.0377) (.0309) (.0407) (.0637)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return.................. 5.86% 3.84% 3.12% 4.15% 6.56%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $1,377,175 $1,557,562 $1,290,971 $2,976,954 $1,918,966
Ratio of Expenses to Average
Daily Net Assets............ .18%(1) .18%(1) .20%(1) .27% .30%
Ratio of Net Investment Income
to Average Daily
Net Assets.................. 5.71% 3.76% 3.08% 3.91% 6.36%
<CAPTION>
FEDFUND DOLLAR SHARES
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
1995 1994 1993 1992 1991
--------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------
Income From Investment
Operations:
Net Investment Income....... .0546 .0352 .0283 .0372 .0612
Net Capital Gains........... -- -- .0001 .0010 --
-------- -------- -------- -------- -------
Total From Investment
Operations.............. .0546 .0352 .0284 .0382 .0612
-------- -------- -------- -------- -------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0546) (.0352) (.0283) (.0372) (.0612)
Net Capital Gains........... -- -- (.0001) (.0010) --
-------- -------- -------- -------- -------
Total Distributions....... (.0546) (.0352) (.0284) (.0382) (.0612)
-------- -------- -------- -------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== =======
Total Return.................. 5.61% 3.59% 2.87% 3.90% 6.31%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $213,177 $135,769 $ 169,877 $ 148,363 $ 62,842
Ratio of Expenses to Average
Daily Net Assets............ .43%(1) .43%(1) .45%(1) .52% .55%
Ratio of Net Investment Income
to Average Daily
Net Assets.................. 5.46% 3.51% 2.83% 3.66% 6.11%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratio of
expenses to average daily net assets would have been .29%, .30% and .27% for
each of the years ended October 31, 1995, 1994, and 1993, respectively, for
FedFund shares and .54%, .55% and .52%, for each of the years ended October
31, 1995, 1994 and 1993, respectively, for FedFund Dollar shares.
See accompanying notes to financial statements.
23
<PAGE> 24
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
T-FUND SHARES
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- -------
Income From Investment
Operations:
Net Investment Income....... .0565 .0368 .0303 .0392 .0626
---------- ---------- ---------- ---------- -------
Total From Investment
Operations.............. .0565 .0368 .0303 .0392 .0626
---------- ---------- ---------- ---------- -------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0565) (.0368) (.0303) (.0392) (.0626)
---------- ---------- ---------- ---------- -------
Total Distributions....... (.0565) (.0368) (.0303) (.0392) (.0626)
---------- ---------- ---------- ---------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== =======
Total Return.................. 5.80% 3.75% 3.07% 3.99% 6.44%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $1,211,220 $1,035,172 $1,361,624 $1,327,743 $1,592,750
Ratio of Expenses to Average
Daily Net Assets............ .18%(1) .18%(1) .20%(1) .28% .30%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.66% 3.65% 3.03% 3.93% 6.26%
<CAPTION>
T-FUND DOLLAR SHARES
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------------
1995 1994 1993 1992 1991
--------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .0540 .0343 .0278 .0367 .0601
------- ------- ------- ------- -------
Total From Investment
Operations.............. .0540 .0343 .0278 .0367 .0601
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0540) (.0343) (.0278) (.0367) (.0601)
------- ------- ------- ------- -------
Total Distributions....... (.0540) (.0343) (.0278) (.0367) (.0601)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................. 5.55% 3.50% 2.82% 3.74% 6.19%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $82,502 $22,195 $ 13,328 $ 4,915 $ 40,372
Ratio of Expenses to Average
Daily Net Assets............ .43%(1) .43%(1) .45%(1) .53% .55%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.41% 3.40% 2.78% 3.68% 6.01%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been .29%, .29% and .28%,
respectively, for each of the years ended October 31, 1995, 1994 and 1993
for T-Fund Shares and .54%, .54% and .53%, respectively, for each of the
years ended October 31, 1995, 1994 and 1993 for T-Fund Dollar shares.
See accompanying notes to financial statements.
24
<PAGE> 25
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FEDCASH SHARES
-----------------------------------------------------------------------
MAY 21,
1991(3)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income....... .0569 .0382 .0316 .0433 .0266
Net Capital Gains........... -- -- -- .0012 --
-------- -------- -------- -------- --------
Total From Investment
Operations.............. .0569 .0382 .0316 .0445 .0266
-------- -------- -------- -------- --------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0569) (.0382) (.0316) (.0433) (.0266)
Net Capital Gains........... -- -- -- (.0012) --
-------- -------- -------- -------- --------
Total Distributions....... (.0569) (.0382) (.0316) (.0445) (.0266)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return.................. 5.85% 3.89% 3.20% 4.54% 2.69%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $ 356,602 $ 629,209 $ 447,942 $ 717,978 $ 290,558
Ratio of Expenses to Average
Daily Net Assets(1)......... .18% .12% .10% .07% .00%(2)
Ratio of Net Investment Income
to Average Daily
Net Assets.................. 5.67% 3.80% 3.16% 3.99% 5.80%(2)
<CAPTION>
FEDCASH DOLLAR SHARES
DECEMBER
13,
1991(4)
YEAR ENDED YEAR ENDED YEAR ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .0544 .0357 .0291 .0349
Net Capital Gains........... -- -- -- .0012
------- ------- ------- -------
Total From Investment
Operations.............. .0544 .0357 .0291 .0361
------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0544) (.0357) (.0291) (.0349)
Net Capital Gains........... -- -- -- (.0012)
------- ------- ------- -------
Total Distributions....... (.0544) (.0357) (.0291) (.0361)
------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Total Return.................. 5.60% 3.64% 2.95% 3.67%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $2,003 $ 22,737 $ 58,847 $ 53,813
Ratio of Expenses to Average
Daily Net Assets(1)......... .43% .37% .35% .32%(2)
Ratio of Net Investment Income
to Average Daily
Net Assets.................. 5.42% 3.55% 2.91% 3.66%(2)
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees and without expense
reimbursements, the ratio of expenses to average daily net assets for
FedCash shares would have been .30%, .29%, .28% and .29%, respectively, for
each of the years ended October 31, 1995, 1994, 1993 and 1992, and .39%
(annualized) for the period ended October 31, 1991, and for FedCash Dollar
shares would have been .55%, .54% and .54%, respectively for each of the
years ended October 31, 1995, 1994, and 1993, and .54% (annualized) for the
period ended October 31, 1992.
(2) Annualized.
(3) Commencement of operations.
(4) First issuance of shares.
See accompanying notes to financial statements.
25
<PAGE> 26
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
T-CASH SHARES
-----------------------------------------------------------------------
JUNE 5,
1991(3)
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income....... .0565 .0371 .0311 .0406 .0235
-------- -------- -------- -------- --------
Total From Investment
Operations.............. .0565 .0371 .0311 .0406 .0235
-------- -------- -------- -------- --------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income....... (.0565) (.0371) (.0311) (.0406) (.0235)
-------- -------- -------- -------- --------
Total Distributions....... (.0565) (.0371) (.0311) (.0406) (.0235)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return.................. 5.80% 3.77% 3.15% 4.13% 2.38%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $ 250,041 $ 217,910 $ 424,641 $ 477,599 $ 301,526
Ratio of Expenses to Average
Daily Net Assets(1)......... .18% .11% .10% .06% .00%(2)
Ratio of Net Investment Income
to Average Daily
Net Assets.................. 5.66% 3.58% 3.11% 3.99% 5.70%(2)
<CAPTION>
T-CASH DOLLAR SHARES
--------------------------------------------------------
AUGUST 4,
1992(4)
YEAR ENDED YEAR ENDED YEAR ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- -------- -------
Income From Investment
Operations:
Net Investment Income....... .0540 .0346 .0286 .0080
------- ------- -------- -------
Total From Investment
Operations.............. .0540 .0346 .0286 .0080
------- ------- -------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income....... (.0540) (.0346) (.0286) (.0080)
------- ------- -------- -------
Total Distributions....... (.0540) (.0346) (.0286) (.0080)
------- ------- -------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== =======
Total Return.................. 5.55% 3.52% 2.90% .76%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)......................$ 63,537 $ 82,293 $ 161,176 $ 24,261
Ratio of Expenses to Average
Daily Net Assets(1)......... .43% .36% .35% .35%(2)
Ratio of Net Investment Income
to Average Daily
Net Assets.................. 5.41% 3.33% 2.86% 3.03%(2)
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees and without expense
reimbursements, the ratio of expenses to average daily net assets for T-Cash
shares would have been .30%, .30%, .29% and .29%, respectively, for each of
the years ended October 31, 1995, 1994, 1993 and 1992, and .37% (annualized)
for the period ended October 31, 1991, and for T-Cash Dollar shares would
have been .55%, .55% and .54% for the years ended October 31, 1995, 1994,
and 1993, and .58% (annualized) for the period ended October 31, 1992.
(2) Annualized.
(3) Commencement of operations.
(4) First issuance of shares.
See accompanying notes to financial statements.
26
<PAGE> 27
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FEDERAL TRUST SHARES
-----------------------------------------------------------------------
DECEMBER 3,
YEAR YEAR YEAR YEAR 1990(3)
ENDED ENDED ENDED ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income....... .0563 .0380 .0302 .0389 .0564
Net Capital Gains........... -- -- .0001 .0018 --
-------- -------- -------- -------- --------
Total From Investment
Operations................ .0563 .0380 .0303 .0407 .0564
-------- -------- -------- -------- --------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income....... (.0563) (.0380) (.0302) (.0389) (.0564)
Net Capital Gains........... -- -- (.0001) (.0018) --
-------- -------- -------- -------- --------
Total Distributions....... (.0563) (.0380) (.0303) (.0407) (.0564)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return.................. 5.77% 3.87% 3.06% 4.15% 5.79%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $237,718 $317,769 $257,125 $428,365 $184,060
Ratio of Expenses to Average
Daily Net Assets(1)......... .18% .18% .18% .20% .12%(2)
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.61% 3.85% 3.02% 3.75% 5.93%(2)
<CAPTION>
FEDERAL TRUST DOLLAR SHARES
-----------------------------------------------------------------------
DECEMBER
31,
YEAR YEAR YEAR YEAR 1990(4)
ENDED ENDED ENDED ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .0538 .0355 .0277 .0364 .0487
Net Capital Gains........... -- -- .0001 .0018 --
------- ------- ------- ------- -------
Total From Investment
Operations................ .0538 .0355 .0278 .0382 .0487
------- ------- ------- ------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income....... (.0538) (.0355) (.0277) (.0364) (.0487)
Net Capital Gains........... -- -- (.0001) (.0018) --
------- ------- ------- ------- -------
Total Distributions....... (.0538) (.0355) (.0278) (.0382) (.0487)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................. 5.52% 3.62% 2.81% 3.90% 4.98%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $28,402 $8,278 $1,025 $2,442 $1,681
Ratio of Expenses to Average
Daily Net Assets(1)......... .43% .43% .43% .45% .37%(2)
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.36% 3.60% 2.77% 3.50% 5.86%(2)
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees and without expense
reimbursements, the ratios of expenses to average daily net assets would
have been .32%, .31%, .29% and .30%, respectively, for each of the years
ended October 31, 1995, 1994, 1993 and 1992 and .39% (annualized) for the
period ended October 31, 1991 for Federal Trust shares, and .57%, .56%, .54%
and .55%, respectively, for each of the years ended October 31, 1995, 1994,
1993 and 1992, and .64% (annualized) for the period ended October 31, 1991
for Federal Trust Dollar shares.
(2) Annualized.
(3) Commencement of operations.
(4) First issuance of shares.
See accompanying notes to financial statements.
27
<PAGE> 28
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
TREASURY TRUST SHARES
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations:
Net Investment Income....... .0545 .0359 .0292 .0380 .0612
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations.............. .0545 .0359 .0292 .0380 .0612
----------- ----------- ----------- ----------- -----------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0545) (.0359) (.0292) (.0380) (.0612)
----------- ----------- ----------- ----------- -----------
Total Distributions....... (.0545) (.0359) (.0292) (.0380) (.0612)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return.................. 5.59% 3.65% 2.96% 3.85% 6.30%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $1,101,834 $1,016,635 $1,188,412 $1,552,207 $1,275,545
Ratio of Expenses to Average
Daily Net Assets(1)......... .18% .18% .18% .20% .20%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.45% 3.57% 2.92% 3.78% 6.00%
<CAPTION>
TREASURY TRUST DOLLAR SHARES
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations:
Net Investment Income....... .0520 .0334 .0267 .0355 .0587
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations.............. .0520 .0334 .0267 .0355 .0587
----------- ----------- ----------- ----------- -----------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.0520) (.0334) (.0267) (.0355) (.0587)
----------- ----------- ----------- ----------- -----------
Total Distributions....... (.0520) (.0334) (.0267) (.0355) (.0587)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========
Total Return.................. 5.34% 3.40% 2.71% 3.60% 6.05%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... $223,272 $181,934 $258,206 $218,320 $50,729
Ratio of Expenses to Average
Daily Net Assets(1)......... .43% .43% .43% .45% .45%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.20% 3.32% 2.67% 3.53% 5.75%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratio of
expenses to average daily net assets would have been .29%, .29%, .28%, .27%
and .32%, respectively, for each of the years ended October 31, 1995, 1994,
1993, 1992 and 1991, for Treasury Trust shares, and .54%, .54%, .53%, .52%
and .57%, respectively, for each of the years ended October 31, 1995, 1994,
1993, 1992 and 1991 for Treasury Trust Dollar shares.
See accompanying notes to financial statements.
28
<PAGE> 29
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
SHORT GOVERNMENT SHARES
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 9.28 $ 10.47 $ 10.39 $ 10.24 $ 9.99
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations:
Net Investment Income....... .5533 .5032 .0575 .6669 .7597
Net Realized and Unrealized
Gain (Loss)
on Investments............ .1400 (1.0813) .0800 .1500 .2500
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations.............. .6933 (.5781) .1375 .8169 1.0097
----------- ----------- ----------- ----------- -----------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.5533) (.5032) (.0575) (.6669) (.7597)
Net Capital Gains........... -- (.1087) -- -- --
----------- ----------- ----------- ----------- -----------
Total Distributions....... (.5533) (.6119) (.0575) (.6669) (.7597)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of
Period...................... $ 9.42 $ 9.28 $ 10.47 $ 10.39 $ 10.24
======== ========= ======== ======== ========
Total Return.................. 7.69% .04% 6.46% 8.20% 10.49%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)........................ $668 $829 $1,061 $10,874 $10,530
Ratio of Expenses to Average
Daily Net Assets(1)......... .40% .40% .40% .40% .40%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.84% 5.19% 5.65% 6.44% 7.54%
Portfolio turnover rate....... 718% 362% 66% 27% 31%
<CAPTION>
SHORT GOVERNMENT DOLLAR SHARES
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 9.28 $ 10.47 $ 10.39 $ 10.24 $ 9.99
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations:
Net Investment Income....... .5299 .4791 .0549 .6410 .7387
Net Realized and Unrealized
Gain (Loss)
on Investments............ .1400 (.6096) .0800 .1500 .2500
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations.............. .6699 (.1305) .1349 .7910 .9887
----------- ----------- ----------- ----------- -----------
Less Distributions:
Dividends to Shareholders
from:
Net Investment Income....... (.5299) (.4791) (.0549) (.6410) (.7387)
Net Capital Gains........... -- (.5804) -- -- --
----------- ----------- ----------- ----------- -----------
Total Distributions....... (.5299) (1.0595) (.0549) (.6410) (.7387)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of
Period...................... $ 9.42 $ 9.28 $ 10.47 $ 10.39 $ 10.24
======== ========= ======== ======== ========
Total Return.................. 7.44% (.21%) 6.21% 7.95% 10.24%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)........................ $102 $4,089 $5,055 $2,780 $295
Ratio of Expenses to Average
Daily Net Assets(1)......... .65% .65% .65% .65% .65%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 5.59% 4.94% 5.40% 5.98% 7.29%
Portfolio turnover rate....... 718% 362% 66% 27% 31%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees and without expense
reimbursements, the ratio of expenses to average daily net assets for Short
Government shares would have been 1.15%, .86%, .75%, .67% and .68%,
respectively, for each of the years ended October 31, 1995, 1994, 1993, 1992
and 1991. For Short Government Dollar shares, the ratio of expenses to
average daily net assets would have been 1.40%, 1.11%, 1.00%, .92% and .93%,
respectively, for each of the years ended October 31, 1995, 1994, 1993, 1992
and 1991.
See accompanying notes to financial statements.
29
<PAGE> 30
Notes to Financial Statements
A. Trust for Federal Securities (the Company) was established as a Pennsylvania
business trust under a Declaration of Trust originally dated as of May 14, 1975,
and is registered under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company. The Company consists of
seven separate portfolios, FedFund, T-Fund, FedCash, T-Cash, Federal Trust Fund,
Treasury Trust Fund and Short Government Fund. As of December 5, 1995, no Short
Government Fund shares were outstanding.
Each portfolio has two classes of shares, one class being referred to as
Dollar Shares. Dollar shares and the other class of shares of each portfolio are
identical in all respects, except that Dollar shares are sold to institutions
(Service Organizations) which provide support services to their customers who
beneficially own such shares, in consideration of the Company's payment of 0.25%
(on an annualized basis) of the average daily net asset value of the Dollar
shares held by the institutions for the benefit of their customers. The Service
Organization fee is applicable only to the earnings of the respective Dollar
shares.
B. Significant accounting policies are as follows:
Security Valuation--FedFund, T-Fund, FedCash, T-Cash, Federal Trust Fund and
Treasury Trust Fund:
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--Short Government 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).
Repurchase Agreements--The Company may purchase, for any portfolio except
Federal Trust Fund and Treasury Trust Fund, money market instruments from
financial institutions, such as banks and non-bank dealers, subject to the
seller's agreement to repurchase them at an agreed upon date and price.
Collateral for repurchase agreements may have longer maturities than the maximum
permissible remaining maturity of portfolio investments, provided the repurchase
agreements themselves mature in one year or less. The seller will be required on
a daily basis to maintain the value of the securities subject to the agreement
at no less than the repurchase price. Repurchase agreements with maturities in
excess of seven days are subject to a seven day put feature.
Dividends to Shareholders--Dividends are declared daily and paid monthly.
Dividends payable are recorded on the dividend record date. Net income for
dividend purposes includes interest accrued and discount earned, less the
amortization of market premium and applicable expenses and, for the Money Market
Portfolios,
30
<PAGE> 31
Notes to Financial Statements (Continued)
can include net realized gains on portfolio securities. Short Government Fund
will distribute net realized capital gains, if any, at least once a year.
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 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 are allocated among the portfolios
based on their relative net assets.
Costs incurred by FedCash, T-Cash, and Federal Trust Fund in connection with
their organization, registration and the initial public offering of shares have
been deferred and are being amortized using the straight-line method over a
five-year period beginning on the date on which the portfolios commenced their
investment activities.
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-advisor and custodian
and PFPC Inc. (PFPC) 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 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 annualized percentage of the average net assets of each portfolio
as follows:
FedFund, T-Fund, FedCash, T-Cash, Federal Trust Fund and Treasury Trust Fund
(on a combined basis)--.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.
Short Government 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 total operating expenses
(excluding Service Organization fees) of FedFund, T-Fund, FedCash, T-Cash,
Federal Trust Fund, and Treasury Trust Fund do not exceed .18% of their
respective average net assets, and with respect to Short Government, .20%. For
the year ended October 31, 1995, the administrators and PIMC voluntarily agreed
to reimburse expenses, on an equal basis, in the total amount of $13,217 with
respect to Short Government Fund. For the year
31
<PAGE> 32
Notes to Financial Statements (Continued)
ended October 31, 1995, the administrators and PIMC waived, on an equal basis, a
total of $1,711,611 of the administration and advisory fees payable to them with
respect to FundFund, $1,418,766 with respect to T-Fund, $551,341 with respect to
FedCash, $420,331 with respect to T-Cash, $384,066 with respect to Federal Trust
Fund, $1,502,728 with respect to Treasury Trust Fund and $16,544 with respect to
Short Government Fund.
Service Organization fees of $511,092 were paid to affiliates of PNC Bank for
the year ended October 31, 1995.
D. The Company's Declaration of Trust permits the Trustees to authorize the
issuance of an unlimited number of full and fractional shares of beneficial
interest (shares) in the Company and to classify or reclassify any unissued
shares into one or more additional classes of shares.
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
FEDFUND PORTFOLIO
------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------
<S> <C> <C>
Shares sold:
FedFund........................................................ 11,897,165,860 13,216,424,487
FedFund Dollar................................................. 4,994,887,557 7,107,738,952
Shares issued in reinvestment of dividends:
FedFund........................................................ 14,676,714 6,637,408
FedFund Dollar................................................. 3,567,699 2,425,565
Shares repurchased:
FedFund........................................................ (12,092,201,363) (12,956,407,780)
FedFund Dollar................................................. (4,921,030,209) (7,144,265,626)
---------------- ----------------
Net increase (decrease) in shares........................... (102,933,742) 232,553,006
================ ================
</TABLE>
<TABLE>
<CAPTION>
T-FUND PORTFOLIO
------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------
<S> <C> <C>
Shares sold:
T-Fund....................................................... 10,751,797,471 10,373,466,042
T-Fund Dollar................................................ 398,720,021 140,897,598
Shares issued in reinvestment of dividends:
T-Fund....................................................... 21,795,447 8,928,181
T-Fund Dollar................................................ 83,960 17,209
Shares repurchased:
T-Fund....................................................... (10,575,430,244) (10,731,065,139)
T-Fund Dollar................................................ (338,499,219) (131,959,446)
---------------- ----------------
Net increase (decrease) in shares......................... 258,467,436 (339,715,555)
================ ================
</TABLE>
32
<PAGE> 33
Notes to Financial Statements (Continued)
<TABLE>
<CAPTION>
FEDCASH PORTFOLIO
-----------------------------------
YEAR ENDED
YEAR ENDED OCTOBER 31,
OCTOBER 31, 1995 1994
---------------- ---------------
<S> <C> <C>
Shares sold:
FedCash........................................................ 3,809,797,012 6,271,269,784
FedCash Dollar................................................. 118,228,189 314,930,835
Shares issued in reinvestment of dividends:
FedCash........................................................ 4,123,020 8,312,109
FedCash Dollar................................................. -- --
Shares repurchased:
FedCash........................................................ (4,086,502,161) (6,098,307,231)
FedCash Dollar................................................. (138,964,619) (351,041,562)
-------------- --------------
Net increase (decrease) in shares........................... (293,318,559) 145,163,935
============== ==============
</TABLE>
<TABLE>
<CAPTION>
T-CASH PORTFOLIO
-----------------------------------
YEAR ENDED
YEAR ENDED OCTOBER 31,
OCTOBER 31, 1995 1994
---------------- ---------------
<S> <C> <C>
Shares sold:
T-Cash......................................................... 2,011,840,549 3,078,794,751
T-Cash Dollar.................................................. 364,046,529 415,340,757
Shares issued in reinvestment of dividends:
T-Cash......................................................... 836,664 2,866,836
T-Cash Dollar.................................................. 527,743 362,345
Shares repurchased:
T-Cash......................................................... (1,980,555,519) (3,288,400,674)
T-Cash Dollar.................................................. (390,329,528) (487,588,249)
-------------- --------------
Net increase (decrease) in shares........................... 6,366,438 (278,624,234)
============== ==============
</TABLE>
33
<PAGE> 34
Notes to Financial Statements (Continued)
<TABLE>
<CAPTION>
FEDERAL TRUST FUND PORTFOLIO
------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------
<S> <C> <C>
Shares sold:
Federal Trust.................................................. 2,021,718,870 3,188,210,343
Federal Trust Dollar........................................... 153,538,950 36,586,563
Shares issued in reinvestment of dividends:
Federal Trust.................................................. 3,762,129 2,838,942
Federal Trust Dollar........................................... 105,820 1,469
Shares repurchased:
Federal Trust.................................................. (2,105,505,257) (3,130,334,569)
Federal Trust Dollar........................................... (133,519,733) (29,333,149)
--------------- ---------------
Net increase (decrease) in shares........................... (59,899,221) 67,969,599
=============== ===============
</TABLE>
<TABLE>
<CAPTION>
TREASURY TRUST FUND PORTFOLIO
------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------
<S> <C> <C>
Shares sold:
Treasury Trust................................................. 6,141,999,392 7,214,439,647
Treasury Trust Dollar.......................................... 551,715,286 474,346,815
Shares issued in reinvestment of dividends:
Treasury Trust................................................. 12,182,325 7,153,403
Treasury Trust Dollar.......................................... 8,603,653 4,442,046
Shares repurchased:
Treasury Trust................................................. (6,069,160,791) (7,393,205,005)
Treasury Trust Dollar.......................................... (519,010,905) (555,033,684)
--------------- ---------------
Net increase (decrease) in shares........................... 126,328,960 (247,856,778)
=============== ===============
</TABLE>
34
<PAGE> 35
Notes to Financial Statements (Continued)
<TABLE>
<CAPTION>
SHORT GOVERNMENT
FUND PORTFOLIO
----------------------------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
--------------------------- ---------------------------
SHARES VALUE SHARES VALUE
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Short Government........................... -- $ -- 97,814 $ 941,542
Short Government Dollar.................... 3,020,622 28,184,334 2,220,216 21,291,459
Shares issued in reinvestment of dividends:
Short Government........................... 3,956 36,924 7,288 70,596
Short Government Dollar.................... -- -- -- --
Shares repurchased:
Short Government........................... (22,293) (209,597) (117,136) (1,118,204)
Short Government Dollar.................... (3,450,205) (32,180,871) (2,262,460) (21,597,901)
----------- ------------ ----------- ------------
Net decrease in shares.................. (447,920) $ (4,169,210) (54,278) $ (412,508)
=========== ============ =========== ============
</TABLE>
E. Purchases and sales of investment securities other than short-term
obligations by Short Government Fund, for the year ended October 31, 1995, were
$22,395,861 and $24,774,249, respectively.
35
<PAGE> 36
Notes to Financial Statements (Concluded)
F. At October 31, 1995, net assets consisted of:
<TABLE>
<CAPTION>
FEDERAL TREASURY SHORT
TRUST TRUST GOVERNMENT
FEDFUND T-FUND FEDCASH T-CASH FUND FUND FUND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- ------------ ------------ ------------ -------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Paid-in Capital....... $1,590,561,551 $1,293,696,008 $358,685,191 $313,572,712 $266,308,794 $1,325,166,561 $ 900,918
Accumulated net
realized gain (loss)
on security
transactions........ (209,590) 25,917 (80,032) 5,452 (188,912) (60,912) (134,247)
Net unrealized
appreciation of
investments......... -- -- -- -- -- -- 3,785
-------------- -------------- ------------ ------------ ------------ -------------- --------
$1,590,351,961 $1,293,721,925 $358,605,159 $313,578,164 $266,119,882 $1,325,105,649 $ 770,456
============== ============== ============ ============ ============ ============== ========
</TABLE>
G. At October 31, 1995, FedFund, FedCash, Federal Trust, Treasury Trust and
Short Government Fund had capital loss carryovers amounting to $209,590,
$80,032, $186,435, $51,226, and $134,247 respectively, expiring at various times
from 2001 to 2003. The capital loss carryovers are available to offset possible
future capital gains of the related portfolios.
36
<PAGE> 37
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of Trust for Federal Securities:
We have audited the accompanying statements of net assets of the seven
investment portfolios of Trust for Federal Securities as of October 31, 1995,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods presented. 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 audit.
We conducted our audit 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 confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. 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 audit provides 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 the
seven investment portfolios of Trust for Federal Securities as of October 31,
1995, and the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended, and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
December 8, 1995
37
<PAGE> 38
- --------------------------------------------------------------------------------
BOARD OF TRUSTEES
G. Willing Pepper
Chairman
David R. Wilmerding, Jr.
Vice-Chairman
Philip E. Coldwell
Robert R. Fortune
Rodney D. Johnson
Anthony M. Santomero
OFFICERS
G. Willing Pepper
President
Edward J. Roach
Vice President and Treasurer
W. Bruce McConnel, III
Secretary
INVESTMENT ADVISER
PNC Institutional Management
Corporation
400 Bellevue Parkway
Wilmington, DE 19809
CO-ADMINISTRATORS
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
PROVIDENT DISTRIBUTORS, INC.
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-003
FEDFUND
T-FUND
FEDCASH
T-CASH
FEDERAL TRUST FUND
TREASURY TRUST FUND
SHORT GOVERNMENT FUND
Investment Portfolios
Offered by
Trust for Federal Securities
PROVIDENT
------------------
INSTITUTIONAL
FUNDS
Annual Report to Shareholders
October 31, 1995
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