<PAGE> 1
[PROVIDENT
INSTITUTIONAL ---------------------------------------------------------
FUNDS 400 Bellevue Parkway, Wilmington, DE 19809 Phone:
LOGO] 302-792-2555 Fax: 302-792-5876
G. Willing Pepper
Chairman TRUST FOR FEDERAL SECURITIES
June 5, 1996
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of Trust
for Federal Securities for the period ended April 30, 1996.
The accompanying Investment Adviser's Report provides information on recent
activity in the money markets and on the performance of our funds. I urge you to
read the report.
Provident Institutional Funds are committed to quality service and
competitive returns, with liquidity and stability of principal a primary focus.
Credit quality is the premier ingredient in our investment strategy.
Provident Institutional Funds offer a broad range of high quality taxable
and tax-exempt Money Market Funds to meet the varied needs of our investors.
Please feel free to contact your Provident Distributors, Inc. account
representative or our Client Service Center at (800) 821-7432 to discuss your
investment options.
Thank you for your continued confidence in Provident Institutional Funds.
We welcome the opportunity to service your investment needs.
Sincerely,
/s/ G. WILLING PEPPER
---------------------
G. Willing Pepper
Chairman
<PAGE> 2
TRUST FOR FEDERAL SECURITIES
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
The pace of economic activity rose sharply in the first quarter of 1996, in
stark contrast to the meager 0.5% gain in gross domestic product in the final
quarter of 1995. Inflationary pressures also re-emerged in the first quarter,
led by strong increases in the prices of commodities such as oil and grain. As a
result, these trend reversals precipitated a rise in both short-term and long
term interest rates, and a shift to a positively sloped yield curve for the
first time in almost a year.
Federal Reserve monetary policy was biased towards ease as the new year
began. Housing activity, consumer confidence and retail sales were all weak as
1995 ended, and the government shutdowns and blizzards experienced in January
pointed to an inauspicious start. The Fed moved quickly to respond to these
signs of weakness and lowered the federal funds rate twice, once in December to
5 1/2%, and again in January to 5 1/4%. The reversal in the Fed's outlook
occurred in early March when a series of reports showed a strong rebound from
January levels. Employment, housing and industrial production all showed
strength. Inflation concerns also expanded and fixed income yields rose quickly.
In the money market sector, the most significant change was the shift from a
negatively sloped to positively sloped yield curve. Instead of giving up yield
when extending investments, 3, 6 and 9-month instruments now afforded the funds
a pick up of 25-50 basis points versus overnight investments.
Consequently, the investment strategy during the period evolved from
managing maturities near the shorter end of our target range to extending them
toward 50 days. Investments were moved out of "overnights" and into longer dated
securities to enhance the portfolios' yields. At the present time, it seems
likely that monetary policy will remain unchanged for at least several months,
until more reliable reports on economic activity are available. If GDP and
inflation remain in a range of 2-3% growth, then short-term interest rates could
possibly stay at current levels through year-end. With this scenario in mind,
the Trust's portfolios will maintain their longer positioning, taking advantage
of the positively sloped yield curve.
Two of the Trust's portfolios, T-Fund and FedFund, were recognized by
Lipper as the top performers in their respective categories for the 15-year
period ended December 31, 1995. For the year 1995, both portfolios were also top
decile performers.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
June 3, 1996
2
<PAGE> 3
FEDFUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
April 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
U.S. AGENCY & INSTRUMENTALITY
OBLIGATIONS--61.3%
Federal Farm Credit Bank Bonds
5.58%............. 05/01/96 $ 5,000 $ 5,000,000
6.38.............. 05/01/96 10,000 10,000,000
5.75.............. 08/01/96 5,000 4,997,894
5.40.............. 04/01/97 20,000 19,982,906
--------------
39,980,800
--------------
Federal Farm Credit Bank Discount Notes
5.09.............. 06/07/96 9,350 9,301,087
--------------
Federal Farm Credit Bank Variable Rate Notes+
5.18.............. 05/01/96 40,000 39,977,918
5.24.............. 05/01/96 50,000 49,983,056
--------------
89,960,974
--------------
Federal Home Loan Bank Bonds
6.01.............. 05/23/96 10,715 10,716,256
6.05.............. 06/05/96 10,000 9,998,903
--------------
20,715,159
--------------
Federal Home Loan Bank Discount Notes
5.07.............. 06/14/96 15,000 14,907,050
5.10.............. 09/06/96 20,000 19,637,333
--------------
34,544,383
--------------
Federal Home Loan Bank Variable Rate Notes+
5.195............. 05/01/96 25,000 24,996,665
5.25.............. 05/01/96 17,000 17,000,000
--------------
41,996,665
--------------
Federal Home Loan Mortgage Corporation Bonds
4.72.............. 02/20/97 4,500 4,488,033
--------------
Federal Home Loan Mortgage Corporation
Discount Notes
5.60.............. 05/10/96 5,000 4,993,000
5.175............. 07/22/96 25,000 24,705,313
--------------
29,698,313
--------------
Federal National Mortgage Association Bonds
5.97.............. 05/16/96 5,000 5,000,417
8.00.............. 07/10/96 5,000 5,020,067
6.00.............. 08/15/96 3,000 3,000,237
5.68.............. 10/07/96 20,000 20,005,951
5.60.............. 11/01/96 20,000 20,000,000
5.47.............. 11/14/96 25,000 24,982,776
--------------
78,009,448
--------------
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
Federal National Mortgage Association
Discount Notes
5.18%............. 06/03/96 $ 7,975 $ 7,937,132
5.10.............. 06/24/96 10,550 10,469,293
--------------
18,406,425
--------------
Federal National Mortgage Association
Medium Term Notes
5.59.............. 06/21/96 17,500 17,507,538
5.37.............. 12/18/96 25,000 24,975,764
--------------
42,483,302
--------------
Federal National Mortgage Association
Variable Rate Notes+
5.19.............. 05/01/96 15,000 14,998,377
5.21.............. 05/01/96 80,000 79,973,082
5.24.............. 05/01/96 20,000 19,995,425
5.435............. 05/01/96 25,000 24,996,947
5.29.............. 05/07/96 40,000 40,000,000
--------------
179,963,831
--------------
Student Loan Marketing Association
Discount Notes
5.17.............. 06/28/96 45,000 44,625,175
--------------
Student Loan Marketing Association
Variable Rate Notes+
5.30.............. 05/07/96 51,850 51,844,480
5.32.............. 05/07/96 38,545 38,484,765
5.33.............. 05/07/96 10,000 10,000,000
5.34.............. 05/07/96 10,000 10,004,893
5.46.............. 05/07/96 11,600 11,603,032
5.48.............. 05/07/96 4,475 4,474,037
5.505............. 05/07/96 71,520 71,569,818
5.53.............. 05/07/96 18,700 18,725,933
5.47875........... 07/04/96 8,000 8,000,000
--------------
224,706,958
--------------
Total............................... 858,880,553
--------------
U.S. GOVERNMENT SECURITIES--10.4%
U.S. Treasury Bills
4.835............. 02/06/97 25,000 24,056,503
--------------
U.S. Treasury Notes
7.25.............. 11/15/96 25,000 25,242,611
6.875............. 02/28/97 20,000 20,306,190
6.875............. 03/31/97 55,000 55,662,478
6.50.............. 04/30/97 20,000 20,145,529
--------------
121,356,808
--------------
Total............................... 145,413,311
--------------
</TABLE>
3
<PAGE> 4
FEDFUND PORTFOLIO
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--28.0%
Donaldson, Lufkin & Jenrette Securities Corp.
5.40%............. 05/01/96 $ 75,000 $ 75,000,000
(Agreement dated 04/30/96
to be repurchased at
$75,011,250,
collateralized by
$43,712,385 Federal Home
Loan Mortgage Corporation
Bonds 5.50% to 16.25% due
from 02/01/99 to
03/01/26; $23,467,762
Federal National Mortgage
Association Bonds 6.00%
to 15.50% due from
03/01/00 to 05/01/26;
$461,882,121 Federal
National Mortgage
Association STRIPS due
from 08/01/10 to
01/01/24. The market
value is $77,252,248.)
Merrill Lynch & Co., Inc.
5.40.............. 05/01/96 50,000 50,000,000
(Agreement dated 04/30/96
to be repurchased at
$50,007,500,
collateralized by
$20,830,444 Federal Home
Loan Mortgage Corporation
Bonds 0.00% to 9.50% due
from 09/01/97 to
04/01/26; $14,082,164
Federal National Mortgage
Association Bonds 0.00%
to 9.00% due from
03/01/10 to 03/01/25;
$43,725,392 Government
National Mortgage
Association Bonds 6.50%
to 9.00% due from
11/15/07 to 04/15/26. The
market value is
$51,014,800.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
Morgan Stanley & Co.
5.38%............. 05/01/96 $200,000 $ 200,000,000
(Agreement dated 04/30/96
to be repurchased at
$200,029,889,
collateralized by
$278,607,539 Federal
National Mortgage
Association STRIPS 6.00%
to 10.00% due from
08/01/07 to 06/01/25. The
market value is
$204,688,522.)
PaineWebber Incorporated
5.38.............. 05/01/96 67,100 67,100,000
(Agreement dated 04/30/96
to be repurchased at
$67,110,028,
collateralized by
$34,465,000 Federal Home
Loan Bank Bonds 0.00% to
6.94% due from 03/14/97
to 02/16/11; $5,000
Federal National Mortgage
Association Bonds 8.05%
due 07/14/04; $3,510,000
Federal National Mortgage
Association Discount
Notes due from 05/17/96
to 06/10/96; $3,315,000
Federal National Mortgage
Association Medium Term
Notes 5.59% to 7.18% due
from 07/01/96 to
07/01/00; $26,695,000
Student Loan Marketing
Association Floating Rate
Notes due 06/30/97;
$850,000 Tennessee Valley
Authority Discount Notes
due 05/14/96. The market
value is $69,113,448.)
--------------
Total............................. 392,100,000
--------------
</TABLE>
4
<PAGE> 5
FEDFUND PORTFOLIO
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,396,393,864*)....... 99.7% $1,396,393,864
OTHER ASSETS IN EXCESS OF
LIABILITIES.................. 0.3 3,899,579
------ --------------
NET ASSETS (equivalent to $1.00
per share based on
1,260,457,490 FedFund and
140,048,192 FedFund Dollar
shares of beneficial interest
outstanding)................. 100.0% $1,400,293,443
------ --------------
------ --------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($1,400,293,443 / 1,400,505,682)........ $1.00
-----
-----
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable rate obligations--the rate shown is the rate as of April 30, 1996,
and the maturity date shown is the date the principal amount can be recovered
upon demand or put.
- ------------------------------------------------------
FEDFUND
Maturity Schedule of Portfolio
April 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $956,505,000 68.4%
31- 60 Days 115,375,000 8.3
61- 90 Days 38,000,000 2.7
91-120 Days 8,000,000 0.6
121-150 Days 20,000,000 1.4
Over 150 Days 259,500,000 18.6
Average Weighted Maturity--61 Days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
T-FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
April 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--27.4%
U.S. Treasury Bills
4.875%............ 11/14/96 $ 4,000 $ 3,893,292
--------------
U.S. Treasury Notes
4.25.............. 05/15/96 10,000 9,994,708
7.375............. 05/15/96 102,000 102,068,163
5.875............. 05/31/96 4,000 4,001,064
6.125............. 07/31/96 15,000 15,025,541
7.25.............. 08/31/96 20,000 20,082,554
6.50.............. 09/30/96 30,000 30,081,963
8.00.............. 10/15/96 1,000 1,012,025
7.25.............. 11/15/96 10,000 10,099,783
7.25.............. 11/30/96 30,000 30,308,351
7.50.............. 12/31/96 35,500 35,969,931
7.50.............. 01/31/97 66,000 67,040,431
6.875............. 02/28/97 36,500 37,003,059
6.875............. 03/31/97 10,000 10,114,874
--------------
372,802,447
--------------
Total............................... 376,695,739
--------------
REPURCHASE AGREEMENTS--72.4%
Donaldson, Lufkin & Jenrette Securities Corp.
5.25.............. 07/01/96 60,000 60,000,000
(Agreement dated 04/22/96
to be repurchased at
$60,008,750,
collateralized by
$59,000,000 U.S. Treasury
Notes 6.50% due 05/15/97.
The market value is
$61,188,900.)
Goldman, Sachs & Co.
5.30.............. 05/01/96 65,000 65,000,000
(Agreement dated 04/30/96
to be repurchased at
$65,009,569,
collateralized by
$65,529,226 U.S. Treasury
Bonds and Notes 6.50% to
12.75% due from 04/30/99
to 11/15/10. The market
value is $66,300,528.)
5.33.............. 05/01/96 90,000 90,000,000
(Agreement dated 04/30/96
to be repurchased at
$90,013,325,
collateralized by
$90,732,774 U.S. Treasury
Bonds and Notes 6.50% to
12.75% due from 04/30/99
to 11/15/10. The market
value is $91,800,732.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
Lehman Government Securities, Inc.
5.32%............. 05/01/96 $ 65,000 $ 65,000,000
(Agreement dated 04/30/96
to be repurchased at
$65,009,606,
collateralized by
$66,425,000 U.S. Treasury
Notes 5.875% due
04/30/98. The market
value is $66,300,787.)
5.34.............. 05/01/96 70,000 70,000,000
(Agreement dated 04/30/96
to be repurchased at
$70,010,383,
collateralized by
$73,015,000 U.S. Treasury
Bills due 10/03/96. The
market value is
$71,403,560.)
Merrill Lynch & Co., Inc.
5.32.............. 05/01/96 90,000 90,000,000
(Agreement dated 04/30/96
to be repurchased at
$90,013,300,
collateralized by
$85,708,000 U.S. Treasury
Notes 6.375% to 9.125%
due from 04/15/99 to
07/15/99. The market
value is $91,802,585.)
Morgan (J.P.) Securities, Inc.
5.30.............. 05/01/96 150,000 150,000,000
(Agreement dated 04/30/96
to be repurchased at
$150,022,083,
collateralized by
$137,683,000 U.S.
Treasury Bonds 7.875% due
02/15/21. The market
value is $153,000,234.)
5.125............. 05/31/96 50,000 50,000,000
(Agreement dated 03/04/96
to be repurchased at
$50,626,389,
collateralized by
$53,057,000 U.S. Treasury
Bills due 12/12/96. The
market value is
$51,001,041.)
Morgan Stanley & Co.
5.335............. 05/01/96 257,100 257,100,000
(Agreement dated 04/30/96
to be repurchased at
$257,138,101,
collateralized by
$261,040,000 U.S.
Treasury Notes 6.125% due
03/31/98. The market
value is $262,620,623.)
</TABLE>
6
<PAGE> 7
T-FUND PORTFOLIO
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Swiss Bank Corp.
5.32%............. 05/01/96 $100,000 $ 100,000,000
(Agreement dated 04/30/96
to be repurchased at
$100,014,778,
collateralized by
$83,266,000 U.S. Treasury
Bonds and Notes 8.75% due
05/15/17. The market
value is $101,767,705.)
--------------
Total............................. 997,100,000
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,373,795,739*)....... 99.8% 1,373,795,739
OTHER ASSETS IN EXCESS OF
LIABILITIES.................. 0.2 2,818,822
------ --------------
NET ASSETS (equivalent to $1.00
per share based on
1,207,270,854 T-Fund and
169,338,235 T-Fund Dollar
shares of beneficial interest
outstanding)................. 100.0% $1,376,614,561
------ --------------
------ --------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
($1,376,614,561 / 1,376,609,089)........ $1.00
-----
-----
- ---------------
* Cost for federal income tax purposes.
- ------------------------------------------------------
</TABLE>
T-FUND
Maturity Schedule of Portfolio
April 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $999,100,000 72.9%
31- 60 Days 54,000,000 3.9
61- 90 Days 60,000,000 4.4
91-120 Days 15,000,000 1.1
121-150 Days 20,000,000 1.4
Over 150 Days 223,000,000 16.3
Average Weighted Maturity--49 Days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
FEDCASH PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
April 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
U.S. AGENCY & INSTRUMENTALITY
OBLIGATIONS--69.3%
Federal Farm Credit Bank Variable Rate Notes+
5.20%................ 05/01/96 $10,000 $ 9,996,611
5.24................. 05/01/96 25,000 24,990,437
------------
34,987,048
------------
Federal Home Loan Bank Notes
8.25................. 05/27/96 2,000 2,004,203
------------
Federal National Mortgage Association
Variable Rate Notes+
5.21................. 05/01/96 10,000 9,994,727
5.435................ 05/01/96 10,000 9,998,779
5.29................. 05/07/96 18,000 18,000,000
------------
37,993,506
------------
Student Loan Marketing Association
Variable Rate Notes+
5.05................. 05/07/96 8,000 8,007,488
5.30................. 05/07/96 25,000 25,004,868
5.32................. 05/07/96 10,000 10,000,000
5.34................. 05/07/96 10,000 10,000,000
5.48................. 05/07/96 10,000 10,028,089
------------
63,040,445
------------
Total................................. 138,025,202
------------
REPURCHASE AGREEMENTS--30.4%
Donaldson, Lufkin & Jenrette Securities Corp.
5.40................. 05/01/96 20,000 20,000,000
(Agreement dated 04/30/96 to
be repurchased at
$20,003,000, collateralized
by $1,501,984 Federal Home
Loan Mortgage Corporation
Adjustable Rate Notes due
07/01/18; $29,547,271
Federal National Mortgage
Association Adjustable Rate
Notes 0.00% to 8.305% due
03/01/17 to 11/01/28. The
market value is
$20,601,997.)
Morgan Stanley & Co.
5.38................. 05/01/96 20,000 20,000,000
(Agreement dated 04/30/96 to
be repurchased at
$20,002,989, collateralized
by $53,975,434 Federal
National Mortgage
Association Notes 6.00% to
8.00% due 02/01/07 to
05/01/09. The market value
is $20,494,505.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
PaineWebber Incorporated
5.38%................ 05/01/96 $20,500 $ 20,500,000
(Agreement dated 04/30/96 to
be repurchased at
$20,503,064, collateralized
by $10,500,000 Federal Farm
Credit Bank Medium Term
Notes 6.60% to 7.65%, due
01/24/97 to 04/11/11;
$10,590,000 Federal Home
Loan Bank Bonds 0.00% to
7.915% due 11/20/96 to
02/16/11. The market value
is $20,892,609.)
------------
Total............................... 60,500,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $198,525,202*)............ 99.7% 198,525,202
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.3 595,197
------ ------------
NET ASSETS (equivalent to $1.00
per share based on 195,754,768
FedCash and 3,423,110 FedCash
Dollar shares of beneficial
interest outstanding)........... 100.0% $199,120,399
------ ------------
------ ------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($199,120,399 / 199,177,878).............. $1.00
-----
-----
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--the rate shown is the rate as
of April 30, 1996, and the maturity date shown is the
date the principal amount can be recovered upon demand or
put.
- ------------------------------------------------------
</TABLE>
FEDCASH
Maturity Schedule of Portfolio
April 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1-30 Days $198,500,000 100.0%
Average Weighted Maturity--4 days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
T-CASH PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
April 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--36.0%
U.S. Treasury Bills
4.875%............... 09/05/96 $ 8,000 $ 7,862,417
------------
U.S. Treasury Notes
7.375................ 05/15/96 35,000 35,022,612
7.875................ 07/15/96 5,000 5,023,037
7.25................. 08/31/96 10,000 10,046,055
6.875................ 10/31/96 10,000 10,075,544
6.50................. 11/30/96 3,000 3,016,836
7.25................. 11/30/96 5,000 5,050,057
7.50................. 12/31/96 11,000 11,142,472
7.50................. 01/31/97 18,000 18,273,584
6.875................ 02/28/97 5,000 5,058,177
------------
102,708,374
------------
Total................................. 110,570,791
------------
REPURCHASE AGREEMENTS--63.7%
Goldman, Sachs & Co.
5.33................. 05/01/96 60,000 60,000,000
(Agreement dated 04/30/96 to
be repurchased at
$60,008,883, collateralized
by $51,640,000 U.S. Treasury
Bonds 8.50% due 02/15/20.
The market value is
$61,200,409.)
Lehman Government Securities, Inc.
5.34................. 05/01/96 30,000 30,000,000
(Agreement dated 04/30/96 to
be repurchased at
$30,004,450, collateralized
by $28,530,000 U.S. Treasury
Notes 7.50% due 02/15/05.
The market value is
$30,602,513.)
Merrill Lynch & Co., Inc.
5.32................. 05/01/96 60,000 60,000,000
(Agreement dated 04/30/96 to
be repurchased at
$60,008,867, collateralized
by $58,867,000 U.S. Treasury
Notes 6.375% to 8.00% due
from 07/15/99 to 08/15/99.
The market value is
$61,201,679.)
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
Morgan Stanley & Co.
5.335%............... 05/01/96 $45,300 $ 45,300,000
(Agreement dated 04/30/96 to
be repurchased at
$45,306,713, collateralized
by $45,995,000 U.S. Treasury
Notes 6.125% due 03/31/98.
The market value is
$46,273,504.)
------------
Total............................... 195,300,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $305,870,791*)............ 99.7% 305,870,791
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.3 895,916
------ ------------
NET ASSETS (equivalent to $1.00
per share based on 259,089,098
T-Cash and 47,675,249 T-Cash
Dollar shares of beneficial
interest outstanding)........... 100.0% $306,766,707
------ ------------
------ ------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($306,766,707 / 306,764,347).............. $1.00
=====
- ---------------
* Cost for federal income tax purposes.
- ------------------------------------------------------
</TABLE>
T-CASH
Maturity Schedule of Portfolio
April 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $230,300,000 75.5%
61- 90 Days 5,000,000 1.6
121-150 Days 18,000,000 5.9
Over 150 Days 52,000,000 17.0
Average Weighted Maturity--53 Days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
FEDERAL TRUST FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
April 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
U.S. AGENCY AND INSTRUMENTALITY
OBLIGATIONS--100.1%
Federal Farm Credit Bank Bonds
5.75%.............. 08/01/96 $ 750 $ 751,132
------------
Federal Farm Credit Bank Discount Notes
5.22............... 05/03/96 250 249,928
5.23............... 05/06/96 5,000 4,996,368
5.22............... 05/09/96 6,000 5,993,040
5.19............... 05/20/96 5,000 4,986,304
5.22............... 05/22/96 10,000 9,969,550
5.15............... 06/10/96 1,150 1,143,419
5.21............... 07/02/96 10,000 9,910,272
5.23............... 07/03/96 2,700 2,675,288
------------
39,924,169
------------
Federal Farm Credit Bank Variable Rate Notes+
5.18............... 05/01/96 5,000 4,997,240
5.25............... 05/01/96 15,000 14,994,917
------------
19,992,157
------------
Federal Home Loan Bank Discount Notes
4.99............... 05/01/96 695 695,000
5.24............... 05/01/96 4,505 4,505,000
5.25............... 05/01/96 10,000 10,000,000
4.98............... 05/15/96 20 19,961
5.18............... 07/12/96 10,000 9,896,400
------------
25,116,361
------------
Federal Home Loan Bank Variable Rate Notes+
5.25............... 05/02/96 20,000 19,993,961
------------
Student Loan Marketing Association
Variable Rate Notes+
5.30............... 05/07/96 5,000 4,998,553
5.31............... 05/07/96 16,360 16,360,543
5.33............... 05/07/96 30,000 30,000,000
5.35............... 05/07/96 15,000 14,997,522
5.505.............. 05/07/96 5,000 5,003,121
5.53............... 05/07/96 5,000 5,006,934
------------
76,366,673
------------
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
Tennessee Valley Authority Discount Notes
5.20%.............. 05/03/96 $ 5,000 $ 4,998,556
5.20............... 05/09/96 5,000 4,994,222
5.22............... 05/16/96 10,000 9,978,250
5.23............... 05/16/96 10,000 9,978,208
5.21............... 06/07/96 15,000 14,919,679
5.20............... 06/13/96 10,000 9,937,889
------------
54,806,804
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $236,951,257*).......... 100.1% 236,951,257
LIABILITIES IN EXCESS OF
OTHER ASSETS.................. (0.1) (142,397)
------ ------------
NET ASSETS (equivalent to $1.00
per share based on 220,617,567
Federal Trust and 16,390,716
Federal Trust Dollar shares of
beneficial interest
outstanding).................. 100.0% $236,808,860
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($236,808,860 / 237,008,283)............ $1.00
=====
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--the rate shown is the rate as
of April 30, 1996, and the maturity date shown is the
date the principal amount can be recovered upon demand
or put.
- -----------------------------------------------------
</TABLE>
FEDERAL TRUST FUND
Maturity Schedule of Portfolio
April 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------ ------------ ----------
<S> <C> <C>
1- 30 Days $187,830,000 79.1%
31- 60 Days 26,150,000 11.0
61- 90 Days 22,700,000 9.6
Over 90 Days 750,000 0.3
Average Weighted Maturity--17 Days
- -----------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
TREASURY TRUST FUND PORTFOLIO
Trust for Federal Securities
Statement of Net Assets
April 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--99.4%
U.S. Treasury Bills
4.95%............. 05/02/96 $ 35,000 $ 34,995,188
5.16.............. 05/02/96 49,200 49,192,948
5.195............. 05/02/96 7,400 7,398,932
5.215............. 05/02/96 100,000 99,985,514
5.22.............. 05/02/96 25,000 24,996,375
4.67.............. 05/09/96 5,100 5,094,707
4.80.............. 05/16/96 8,000 7,984,000
4.91.............. 05/16/96 100,000 99,795,416
4.91.............. 05/30/96 100,000 99,604,472
4.97.............. 07/05/96 50,000 49,551,319
4.975............. 07/05/96 50,000 49,550,869
5.125............. 10/03/96 50,000 48,896,702
--------------
577,046,442
--------------
U.S. Treasury Notes
7.375............. 05/15/96 195,500 195,657,852
5.875............. 05/31/96 139,775 139,855,305
7.625............. 05/31/96 25,000 25,051,033
6.125............. 07/31/96 25,000 25,051,575
4.375............. 08/15/96 25,000 24,936,342
6.50.............. 09/30/96 125,000 125,618,585
--------------
536,170,692
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,113,217,134*)....... 99.4% $1,113,217,134
OTHER ASSETS IN EXCESS OF
LIABILITIES.................. 0.6 7,143,549
------ --------------
NET ASSETS (equivalent to $1.00
per share based on
868,828,312 Treasury Trust
and 251,837,265 Treasury
Trust Dollar shares of
beneficial interest
outstanding)................. 100.0% $1,120,360,683
===== ==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($1,120,360,683 / 1,120,665,577)........ $1.00
=====
- ---------------
* Cost for federal income tax purposes.
- ------------------------------------------------------
</TABLE>
TREASURY TRUST FUND
Maturity Schedule of Portfolio
April 30, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C>
1- 30 Days $625,200,000 56.1%
31- 60 Days 164,775,000 14.8
61- 90 Days 100,000,000 9.0
91-120 Days 50,000,000 4.4
Over 150
Days.......... 175,000,000 15.7
Average Weighted Maturity--46 Days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
TRUST FOR FEDERAL SECURITIES
Statements of Operations
Six Months Ended April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FEDERAL TREASURY
TRUST TRUST
FEDFUND T-FUND FEDCASH T-CASH FUND FUND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ---------- ---------- ---------- -----------
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Interest income............................ $40,874,789 $37,942,707 $8,805,032 $9,829,582 $7,607,969 $32,013,894
----------- ----------- ----------- ----------- ----------- -----------
Expenses:
Investment advisory fee.................... 946,510 877,154 204,043 226,487 179,569 771,315
Administration fee......................... 946,510 877,154 204,043 226,487 179,569 771,315
Trustees' fees and officer's salary........ 14,293 13,189 3,127 3,425 2,697 11,643
Transfer agent fee......................... 66,530 44,722 5,377 11,934 22,393 57,895
Custodian fee.............................. 114,709 110,063 37,576 41,425 34,105 102,452
Shareholder computer access program........ 4,183 4,331 -- -- -- 3,888
Legal and audit............................ 23,277 21,525 5,048 5,575 4,405 18,962
Organization expense....................... -- -- 2,573 1,531 -- --
Registration fees and expenses............. 13,102 8,630 7,738 8,335 10,124 7,430
Printing................................... 5,968 5,774 3,436 2,983 1,791 6,565
Other...................................... 25,083 35,867 4,182 11,940 8,370 31,235
----------- ----------- ----------- ----------- ----------- -----------
2,160,165 1,998,409 477,143 540,122 443,023 1,782,700
Service Organization fees--Dollar shares... 136,135 155,136 4,921 70,353 32,817 296,054
----------- ----------- ----------- ----------- ----------- -----------
2,296,300 2,153,545 482,064 610,475 475,840 2,078,754
Less fees waived........................... (779,067 ) (714,899 ) (196,543 ) (209,713 ) (180,147 ) (656,541 )
----------- ----------- ----------- ----------- ----------- -----------
Total expenses........................... 1,517,233 1,438,646 285,521 400,762 295,693 1,422,213
----------- ----------- ----------- ----------- ----------- -----------
Net investment income...................... 39,357,556 36,504,061 8,519,511 9,428,820 7,312,276 30,591,681
Realized gain (loss) on investments:
Net realized gain (loss) from security
transactions............................. (2,649 ) 12,510 22,553 2,360 (10,511 ) (243,982 )
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets resulting from
operations............................... $39,354,907 $36,516,571 $8,542,064 $9,431,180 $7,301,765 $30,347,699
=========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 13
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FEDFUND PORTFOLIO T-FUND PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................ $ 39,357,556 $ 89,217,078 $ 36,504,061 $ 71,963,216
Net gain (loss) on investments................... (2,649 ) (45,794) 12,510 82,827
--------------- ---------------- --------------- ----------------
Net increase in net assets resulting from
operations..................................... 39,354,907 89,171,284 36,516,571 72,046,043
--------------- ---------------- --------------- ----------------
Distributions to shareholders:
From net investment income:
FedFund shares................................. (36,552,395 ) (83,746,687) -- --
FedFund Dollar shares.......................... (2,805,161 ) (5,470,391) -- --
T-Fund shares.................................. -- -- (33,323,931 ) (67,772,884)
T-Fund Dollar shares........................... -- -- (3,180,130 ) (4,190,332)
From net realized gains:
T-Fund shares.................................. -- -- (30,186 ) --
T-Fund Dollar shares........................... -- -- (2,769 ) --
--------------- ---------------- --------------- ----------------
Total distributions to shareholders.......... (39,357,556 ) (89,217,078) (36,537,016 ) (71,963,216)
--------------- ---------------- --------------- ----------------
Capital share transactions (at $1 per share):
Sale of shares................................... 6,937,367,013 16,892,053,417 7,238,781,697 11,150,517,492
Reinvestment of dividends........................ 9,762,496 18,244,413 9,865,979 21,879,407
Repurchase of shares............................. (7,137,185,378 ) (17,013,231,572) (7,165,734,595 ) (10,913,929,463)
--------------- ---------------- --------------- ----------------
Increase (decrease) in net assets derived from
capital share transactions..................... (190,055,869 ) (102,933,742) 82,913,081 258,467,436
--------------- ---------------- --------------- ----------------
Total increase (decrease) in net assets...... (190,058,518 ) (102,979,536) 82,892,636 258,550,263
Net assets:
Beginning of period................................ 1,590,351,961 1,693,331,497 1,293,721,925 1,035,171,662
--------------- ---------------- --------------- ----------------
End of period...................................... $ 1,400,293,443 $ 1,590,351,961 $ 1,376,614,561 $ 1,293,721,925
=============== ================ =============== ================
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 14
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FEDCASH T-CASH
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................ $ 8,519,511 $ 26,662,214 $ 9,428,820 $ 18,877,853
Net gain (loss) on investments................... 22,553 (22,449 ) 2,360 8,562
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations..................................... 8,542,064 26,639,765 9,431,180 18,886,415
--------------- --------------- --------------- ---------------
Distributions to shareholders:
From net investment income:
FedCash shares................................. (8,418,867 ) (25,627,701 ) -- --
FedCash Dollar shares.......................... (100,644 ) (1,034,513 ) -- --
T-Cash shares.................................. -- -- (7,973,843 ) (15,329,472 )
T-Cash Dollar shares........................... -- -- (1,454,977 ) (3,548,381 )
From net realized gain:
T-Cash shares.................................. -- -- (4,530 ) --
T-Cash Dollar shares........................... -- -- (922 ) --
--------------- --------------- --------------- ---------------
Total distributions to shareholders.......... (8,519,511 ) (26,662,214 ) (9,434,272 ) (18,877,853 )
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Sale of shares................................... 1,423,650,175 3,928,025,201 1,223,155,135 2,375,887,078
Reinvestment of dividends........................ 1,456,703 4,123,020 972,340 1,364,407
Repurchase of shares............................. (1,584,614,191 ) (4,225,466,780 ) (1,230,935,840 ) (2,370,885,047 )
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions..................... (159,507,313 ) (293,318,559 ) (6,808,365 ) 6,366,438
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets...... (159,484,760 ) (293,341,008 ) (6,811,457 ) 6,375,000
Net assets:
Beginning of period................................ 358,605,159 651,946,167 313,578,164 307,203,164
--------------- --------------- --------------- ---------------
End of period...................................... $ 199,120,399 $ 358,605,159 $ 306,766,707 $ 313,578,164
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 15
TRUST FOR FEDERAL SECURITIES
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FEDERAL TRUST TREASURY TRUST
FUND PORTFOLIO FUND PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................ $ 7,312,276 $ 15,556,733 $ 30,591,681 $ 71,612,012
Net gain (loss) on investments................... (10,511) (28,332 ) (243,982 ) 207,807
------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations..................................... 7,301,765 15,528,401 30,347,699 71,819,819
------------- --------------- --------------- ---------------
Distributions to shareholders:
From net investment income:
Federal Trust shares........................... (6,650,050) (14,527,800 ) -- --
Federal Trust Dollar shares.................... (662,226) (1,028,933 ) -- --
Treasury Trust shares.......................... -- -- (24,780,962 ) (61,302,514 )
Treasury Trust Dollar shares................... -- -- (5,810,719 ) (10,309,498 )
------------- --------------- --------------- ---------------
Total distributions to shareholders.......... (7,312,276) (15,556,733 ) (30,591,681 ) (71,612,012 )
------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Sale of shares................................... 854,295,533 2,175,257,820 3,697,300,446 6,693,714,678
Reinvestment of dividends........................ 2,091,579 3,867,949 9,101,408 20,785,978
Repurchase of shares............................. (885,687,623) (2,239,024,990 ) (3,910,902,838 ) (6,588,171,696 )
------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions..................... (29,300,511) (59,899,221 ) (204,500,984 ) 126,328,960
------------- --------------- --------------- ---------------
Total increase (decrease) in net assets...... (29,311,022) (59,927,553 ) (204,744,966 ) 126,536,767
Net assets:
Beginning of period................................ 266,119,882 326,047,435 1,325,105,649 1,198,568,882
------------- --------------- --------------- ---------------
End of period...................................... $ 236,808,860 $ 266,119,882 $ 1,120,360,683 $ 1,325,105,649
============= =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 16
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FEDFUND SHARES
---------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED ------------------------------------------------------------------
APRIL 30, 1995 1994 1993 1992 1991
1996 ---------- ---------- ---------- ---------- ----------
-----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
Income From Investment
Operations:
Net Investment Income.... .0268 .0571 .0377 .0308 .0397 .0637
Net Capital Gains........ -- -- -- .0001 .0010 --
---------- ---------- ---------- ---------- ---------- ----------
Total From Investment
Operations........... .0268 .0571 .0377 .0309 .0407 .0637
---------- ---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0268) (.0571) (.0377) (.0308) (.0397) (.0637)
Net Capital Gains........ -- -- -- (.0001) (.0010) --
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions.... (.0268) (.0571) (.0377) (.0309) (.0407) (.0637)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total Return.............. 5.45%(2) 5.86% 3.84% 3.12% 4.15% 6.56%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $1,260,275 $1,377,175 $1,557,562 $1,290,971 $2,976,954 $1,918,966
Ratio of Expenses to
Average Daily Net
Assets................... .19(1,2) .18%(1) .18%(1) .20%(1) .27% .30%
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.36%(2) 5.71% 3.76% 3.08% 3.91% 6.36%
<CAPTION>
FEDFUND DOLLAR SHARES
------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ------- -------- -------- -------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- -------- -------- -------- -------
Income From Investment
Operations:
Net Investment Income.... .0255 .0546 .0352 .0283 .0372 .0612
Net Capital Gains........ -- -- -- .0001 .0010 --
-------- ------- -------- -------- -------- -------
Total From Investment
Operations........... .0255 .0546 .0352 .0284 .0382 .0612
-------- ------- -------- -------- -------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0255) (.0546) (.0352) (.0283) (.0372) (.0612)
Net Capital Gains........ -- -- -- (.0001) (.0010) --
-------- ------- -------- -------- -------- -------
Total Distributions.... (.0255) (.0546) (.0352) (.0284) (.0382) (.0612)
-------- ------- -------- -------- -------- -------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== ======== ======== =======
Total Return.............. 5.20%(2) 5.61% 3.59% 2.87% 3.90% 6.31%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $140,018 $213,177 $135,769 $169,877 $148,363 $62,842
Ratio of Expenses to
Average Daily Net
Assets................... .44%(1,2) . 43%(1) .43%(1) .45%(1) .52% .55%
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.11%(2) 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% (annualized) for
the six months ended April 30, 1996 and .29%, .30% and .27%, respectively,
for the years ended October 31, 1995, 1994, and 1993 for FedFund shares and
.54% (annualized) for the six months ended April 30, 1996 and .54%, .55% and
.52%, respectively, for the years ended October 31, 1995, 1994 and 1993, for
FedFund Dollar shares.
(2) Annualized
See accompanying notes to financial statements.
16
<PAGE> 17
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
T-FUND SHARES
---------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
Income From Investment
Operations:
Net Investment Income......... .0269 .0565 .0368 .0303 .0392 .0626
---------- ---------- ---------- ---------- ---------- ----------
Total From Investment
Operations................ .0269 .0565 .0368 .0303 .0392 .0626
---------- ---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income......... (.0269) (.0565) (.0368) (.0303) (.0392) (.0626)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions......... (.0269) (.0565) (.0368) (.0303) (.0392) (.0626)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value,
End of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total Return................... 5.51%(2) 5.80% 3.75% 3.07% 3.99% 6.44%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)........................ $1,207,276 $1,211,220 $1,012,977 $1,361,624 $1,327,743 $1,592,750
Ratio of Expenses to Average
Daily Net Assets.............. .19(1,2) .18%(1) .18%(1) .20%(1) .28% .30%
Ratio of Net Investment
Income to Average
Daily Net Assets.............. 5.38%(2) 5.66% 3.65% 3.03% 3.93% 6.26%
<CAPTION>
T-FUND DOLLAR SHARES
----------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1996 --------------------------------------------------
----------- 1995 1994 1993 1992 1991
(UNAUDITED) ------- ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------
Income From Investment
Operations:
Net Investment Income......... .0256 .0540 .0343 .0278 .0367 .0601
-------- -------- -------- -------- -------- -------
Total From Investment
Operations................ .0256 .0540 .0343 .0278 .0367 .0601
-------- -------- -------- -------- -------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income......... (.0256) (.0540) (.0343) (.0278) (.0367) (.0601)
-------- -------- -------- -------- -------- -------
Total Distributions......... (.0256) (.0540) (.0343) (.0278) (.0367) (.0601)
-------- -------- -------- -------- -------- -------
Net Asset Value,
End of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== =======
Total Return................... 5.26%(2) 5.55% 3.50% 2.82% 3.74% 6.19%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)........................ $169,339 $82,502 $22,195 $13,328 $4,915 $40,372
Ratio of Expenses to Average
Daily Net Assets.............. .44%(1,2) .43%(1) .43%(1) .45%(1) .53% .55%
Ratio of Net Investment
Income to Average
Daily Net Assets.............. 5.13%(2) 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% (annualized) for
the six months ended April 30, 1996 and .29%, .29% and .28%, respectively,
for the years ended October 31, 1995, 1994, and 1993 for T-Fund shares and
.54% (annualized) for the six months ended April 30, 1995 and .54%, .54% and
.53%, respectively, for the years ended October 31, 1995, 1994, and 1993 for
T-Fund Dollar shares.
(2) Annualized
See accompanying notes to financial statements.
17
<PAGE> 18
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FEDCASH SHARES
--------------------------------------------------------------------------------------
MAY 21,
SIX MONTHS 1991(3)
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment
Income............... .0266 .0569 .0382 .0316 .0433 .0266
Net Capital Gains...... -- -- -- -- .0012 --
-------- -------- -------- -------- -------- --------
Total From Investment
Operations......... .0266 .0569 .0382 .0316 .0445 .0266
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends to
Shareholders from:
Net Investment
Income............... (.0266) (.0569) (.0382) (.0316) (.0433) (.0266)
Net Capital Gains...... -- -- -- -- (.0012) --
-------- -------- -------- -------- -------- --------
Total
Distributions...... (.0266) (.0569) (.0382) (.0316) (.0445) (.0266)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............ 5.46%(2) 5.85% 3.89% 3.20% 4.54% 2.69%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... $ 195,698 $ 356,602 $ 629,209 $ 447,942 $ 717,978 $ 290,558
Ratio of Expenses to
Average
Daily Net Assets(1).... .18%(2) .18% .12% .10% .07% .00%(2)
Ratio of Net Investment
Income to Average
Daily Net Assets....... 5.37%(2) 5.67% 3.80% 3.16% 3.99% 5.80%(2)
<CAPTION>
FEDCASH DOLLAR SHARES
----------------------------------------------------------------------------
DECEMBER 13,
SIX MONTHS 1991(4)
ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- ------------
(UNAUDITED)
<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............... .0254 .0544 .0357 .0291 .0349
Net Capital Gains...... -- -- -- -- .0012
------- ------- ------- ------- -------
Total From Investment
Operations......... .0254 .0544 .0357 .0291 .0361
------- ------- ------- ------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment
Income............... (.0254) (.0544) (.0357) (.0291) (.0349)
Net Capital Gains...... -- -- -- -- (.0012)
------- ------- ------- ------- -------
Total
Distributions...... (.0254) (.0544) (.0357) (.0291) (.0361)
------- ------- ------- ------- -------
Net Asset Value,
End of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return............ 5.21%(2) 5.60% 3.64% 2.95% 3.67%
Ratios/Supplemental
Data:
Net Assets, End of
Period $(000).......... $ 3,422 $ 2,003 $22,737 $58,847 $ 53,813
Ratio of Expenses to
Average
Daily Net Assets(1).... .43%(2) .43% .37% .35% .32%(2)
Ratio of Net Investment
Income to Average
Daily Net Assets....... 5.12%(2) 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% (annualized) for the six months ended
April 30, 1996 and .30%, .29%, .28% and .29%, respectively, for 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% (annualized) for the six months ended April 30, 1996 and .55%, .54% and
.53%, respectively for the years ended October 31, 1995, 1994, 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.
18
<PAGE> 19
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
T-CASH SHARES
--------------------------------------------------------------------------------------
JUNE 5,
SIX MONTHS 1991(3)
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income.... .0269 .0565 .0371 .0311 .0406 .0235
-------- -------- -------- -------- -------- --------
Total From Investment
Operations........... .0269 .0565 .0371 .0311 .0406 .0235
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0269) (.0565) (.0371) (.0311) (.0406) (.0235)
-------- -------- -------- -------- -------- --------
Total Distributions.... (.0269) (.0565) (.0371) (.0311) (.0406) (.0235)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return.............. 5.52%(2) 5.80% 3.77% 3.15% 4.13% 2.38%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $ 259,091 $ 250,041 $ 217,910 $ 424,641 $ 477,599 $ 301,526
Ratio of Expenses to
Average Daily Net
Assets(1)................ .19%(2) .18% .11% .10% .06% .00%(2)
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.40%(2) 5.66% 3.58% 3.11% 3.99% 5.70%(2)
<CAPTION>
T-CASH DOLLAR SHARES
---------------------------------------------------------------------------
AUGUST 4,
SIX MONTHS 1992(4)
ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<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.... .0257 .0540 .0346 .0286 .0080
------- ------- ------- -------- -------
Total From Investment
Operations........... .0257 .0540 .0346 .0286 .0080
------- ------- ------- -------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0257) (.0540) (.0346) (.0286) (.0080)
------- ------- ------- -------- -------
Total Distributions.... (.0257) (.0540) (.0346) (.0286) (.0080)
------- ------- ------- -------- -------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======== =======
Total Return.............. 5.27%(2) 5.55% 3.52% 2.90% .76%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $47,676 $63,537 $89,293 $ 161,176 $24,261
Ratio of Expenses to
Average Daily Net
Assets(1)................ .44%(2) .43% .36% .35% .35%(2)
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.15%(2) 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 .31% (annualized) for the six months ended April 30,
1996 and .30%, .30%, .29% and .29%, respectively, for 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 .56%
(annualized) for the six months ended April 30, 1996 and .55%, .55% and
.54%, respectively, 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.
19
<PAGE> 20
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
FEDERAL TRUST SHARES
---------------------------------------------------------------------------------
DECEMBER 3,
SIX MONTHS 1990(3)
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment Income.... .0263 .0563 .0380 .0302 .0389 .0564
Net Capital Gains........ -- -- -- .0001 .0018 --
-------- -------- -------- -------- -------- --------
Total From Investment
Operations........... .0263 .0563 .0380 .0303 .0407 .0564
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0263) (.0563) (.0380) (.0302) (.0389) (.0564)
Net Capital Gains........ -- -- -- (.0001) (.0018) --
-------- -------- -------- -------- -------- --------
Total Distributions.... (.0263) (.0563) (.0380) (.0303) (.0407) (.0564)
-------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return.............. 5.38%(2) 5.77% 3.87% 3.06% 4.15% 5.79%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $ 220,422 $ 237,718 $ 317,769 $ 257,125 $ 428,365 $ 184,060
Ratio of Expenses to
Average
Daily Net Assets(1)...... .19%(2) .18% .18% .18% .20% .12%(2)
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.26%(2) 5.61% 3.85% 3.02% 3.75% 5.93%(2)
<CAPTION>
FEDERAL TRUST DOLLAR SHARES
--------------------------------------------------------------------------------------
DECEMBER 13,
SIX MONTHS 1990(4)
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED TO
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1996 1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income.... .0250 .0538 .0355 .0277 .0364 .0487
Net Capital Gains........ -- -- -- .0001 .0018 --
------- ------- ------- ------- ------- -------
Total From Investment
Operations........... .0250 .0538 .0355 .0278 .0382 .0487
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0250) (.0538) (.0355) (.0277) (.0364) (.0487)
Net Capital Gains........ -- -- -- (.0001) (.0018) --
------- ------- ------- ------- ------- -------
Total Distributions.... (.0250) (.0538) (.0355) (.0278) (.0382) (.0487)
------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return.............. 5.13%(2) 5.52% 3.62% 2.81% 3.90% 4.98%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $16,387 $28,402 $ 8,278 $ 1,025 $ 2,442 $1,681
Ratio of Expenses to
Average
Daily Net Assets(1)...... .44%(2) .43% .43% .43% .45% .37%(2)
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.01%(2) 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% (annualized) for the six months ended April 30, 1996 and
.32%, .31%, .29% and .30%, respectively, for 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% (annualized) for the six months
ended April 30, 1996, and .57%, .56%, .54% and .55%, respectively, for 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.
20
<PAGE> 21
TRUST FOR FEDERAL SECURITIES
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
TREASURY TRUST SHARES
---------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ---------- ---------- ---------- ---------- ----------
Income From Investment
Operations:
Net Investment Income.... .0257 .0545 .0359 .0292 .0380 .0612
-------- ---------- ---------- ---------- ---------- ----------
Total From Investment
Operations........... .0257 .0545 .0359 .0292 .0380 .0612
-------- ---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0257) (.0545) (.0359) (.0292) (.0380) (.0612)
-------- ---------- ---------- ---------- ---------- ----------
Total Distributions.... (.0257) (.0545) (.0359) (.0292) (.0380) (.0612)
-------- ---------- ---------- ---------- ---------- ----------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ========== ========== ========== ==========
Total Return.............. 5.26%(2) 5.59% 3.65% 2.96% 3.85% 6.30%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $ 868,580 $1,101,834 $1,016,635 $1,188,412 $1,552,207 $1,275,545
Ratio of Expenses to
Average Daily Net
Assets(1)................ .19%(2) .18% .18% .18% .20% .20%
Ratio of Net Investment
Income to Average
Daily Net Assets......... 5.15%(2) 5.45% 3.57% 2.92% 3.78% 6.00%
</TABLE>
<TABLE>
<CAPTION>
TREASURY TRUST DOLLAR SHARES
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- -------- -------- -------- -------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------
Income From Investment
Operations:
Net Investment Income.... .0244 .0520 .0334 .0267 .0355 .0587
-------- -------- -------- -------- -------- -------
Total From Investment
Operations........... .0244 .0520 .0334 .0267 .0355 .0587
-------- -------- -------- -------- -------- -------
Less Distributions:
Dividends to
Shareholders from:
Net Investment Income.... (.0244) (.0520) (.0334) (.0267) (.0355) (.0587)
-------- -------- -------- -------- -------- -------
Total Distributions.... (.0244) (.0520) (.0334) (.0267) (.0355) (.0587)
-------- -------- -------- -------- -------- -------
Net Asset Value,
End of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== =======
Total Return.............. 5.01%(2) 5.34% 3.40% 2.71% 3.60% 6.05%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)................... $ 251,781 $223,272 $181,934 $258,206 $218,320 $50,729
Ratio of Expenses to
Average Daily Net
Assets(1)................ .44%(2) .43% .43% .43% .45% .45%
Ratio of Net Investment
Income to Average
Daily Net Assets......... 4.90%(2) 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 .30% (annualized) for
the six months ended April 30, 1996 and .29%, .29%, .28%, .27% and .32%,
respectively, for the years ended October 31, 1995, 1994, 1993, 1992, and
1991 for Treasury Trust shares, and .55% (annualized) for the six months
ended April 30, 1996 and .54%, .54%, .53%, .52% and .57%, respectively, for
the years ended October 31, 1995, 1994, 1993, 1992 and 1991 for Treasury
Trust Dollar shares.
(2) Annualized
See accompany notes to financial statements.
21
<PAGE> 22
Notes to Financial Statements
(Unaudited)
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 six
separate portfolios, FedFund, T-Fund, FedCash, T-Cash, Federal Trust Fund and
Treasury Trust Fund.
Each portfolio has two classes of shares, one class being referred to as
Dollar Shares. Dollar shares and the other class of shares of each portfolio are
identical in all respects, except that Dollar shares are sold to institutions
(Service Organizations) which provide support services to their customers who
beneficially own such shares, in consideration of the Company's payment of 0.25%
(on an annualized basis) of the average daily net asset value of the Dollar
shares held by the institutions for the benefit of their customers. The Service
Organization fee is applicable only to the earnings of the respective Dollar
shares.
B. Significant accounting policies are as follows:
Security Valuation: 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.
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, discount earned and net realized
gains on portfolio securities, less the amortization of market premium and
applicable expenses.
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 and T-Cash 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.
22
<PAGE> 23
Notes to Financial Statements (Continued)
(Unaudited)
C. Under agreements among the Company, PNC Bank, National Association (PNC Bank)
and PNC Institutional Management Corporation (PIMC), an indirect wholly owned
subsidiary of PNC Bank, PIMC manages the Company's portfolios and maintains
their financial accounts. PNC Bank is the Company's sub-adviser and custodian
and PFPC Inc. (PFPC) 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 combined average net assets of each
portfolio as follows:
.175% of the first $1 billion, .15% of the next $1 billion, .125% of the next
$1 billion, .10% of the next $1 billion, .095% of the next $1 billion, .09% of
the next $1 billion, .085% of the next $1 billion and .08% of net assets in
excess of $7 billion.
If expenses borne by any portfolio in any fiscal year exceed the applicable
expense limitation imposed by state securities regulations, the administrators
and PIMC will each reimburse the portfolio for one-half of any excess expense up
to the amount of fees payable to it (except where such regulations require
reimbursement regardless of the fees payable to it).
The administrators and PIMC 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,T-Cash, Federal Trust
Fund, and Treasury Trust Fund do not exceed .20% of their respective average net
assets and, with respect to FedCash, .10% of its average net assets. For the six
months ended April 30, 1996, the administrators and PIMC waived, on an equal
basis, a total of $779,067 of the administration and advisory fees payable to
them with respect to FedFund, $714,899 with respect to T-Fund, $196,543 with
respect to FedCash, $209,713 with respect to T-Cash, $180,147 with respect to
Federal Trust Fund and $656,541 with respect to Treasury Trust Fund.
Service Organization fees of $287,463 were paid to affiliates of PNC Bank for
the six months ended April 30, 1996.
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.
23
<PAGE> 24
Notes to Financial Statements (Continued)
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
FEDFUND PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
FedFund........................................................ 5,270,327,555 11,897,165,860
FedFund Dollar................................................. 1,667,039,458 4,994,887,557
Shares issued in reinvestment of dividends:
FedFund........................................................ 7,154,757 14,676,714
FedFund Dollar................................................. 2,607,739 3,567,699
Shares repurchased:
FedFund........................................................ (5,394,378,637) (12,092,201,363)
FedFund Dollar................................................. (1,742,806,741) (4,921,030,209)
--------------- ----------------
Net decrease in shares...................................... (190,055,869) (102,933,742)
=============== ================
</TABLE>
<TABLE>
<CAPTION>
T-FUND PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
T-Fund......................................................... 6,876,993,965 10,751,797,471
T-Fund Dollar.................................................. 361,787,732 398,720,021
Shares issued in reinvestment of dividends:
T-Fund......................................................... 9,706,952 21,795,447
T-Fund Dollar.................................................. 159,027 83,960
Shares repurchased:
T-Fund......................................................... (6,890,626,728) (10,575,430,244)
T-Fund Dollar.................................................. (275,107,867) (338,499,219)
---------------- ----------------
Net increase in shares...................................... 82,913,081 258,467,436
================ ================
</TABLE>
24
<PAGE> 25
Notes to Financial Statements (Continued)
<TABLE>
<CAPTION>
FEDCASH PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
FedCash......................................................... 1,394,301,301 3,809,797,012
FedCash Dollar.................................................. 29,348,874 118,228,189
Shares issued in reinvestment of dividends:
FedCash......................................................... 1,456,703 4,123,020
FedCash Dollar.................................................. -- --
Shares repurchased:
FedCash......................................................... (1,556,682,349) (4,086,502,161)
FedCash Dollar.................................................. (27,931,842) (138,964,619)
-------------- --------------
Net decrease in shares....................................... (159,507,313) (293,318,559)
============== ==============
</TABLE>
<TABLE>
<CAPTION>
T-CASH PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
T-Cash.......................................................... 1,042,790,206 2,011,840,549
T-Cash Dollar................................................... 180,364,929 364,046,529
Shares issued in reinvestment of dividends:
T-Cash.......................................................... 766,400 836,664
T-Cash Dollar................................................... 205,940 527,743
Shares repurchased:
T-Cash.......................................................... (1,034,504,337) (1,980,555,519)
T-Cash Dollar................................................... (196,431,503) (390,329,528)
-------------- --------------
Net increase (decrease) in shares............................ (6,808,365) 6,366,438
============== ==============
</TABLE>
25
<PAGE> 26
Notes to Financial Statements (Continued)
<TABLE>
<CAPTION>
FEDERAL TRUST FUND PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
Federal Trust................................................... 770,935,400 2,021,718,870
Federal Trust Dollar............................................ 83,360,133 153,538,950
Shares issued in reinvestment of dividends:
Federal Trust................................................... 2,022,881 3,762,129
Federal Trust Dollar............................................ 68,698 105,820
Shares repurchased:
Federal Trust................................................... (790,244,501) (2,105,505,257)
Federal Trust Dollar............................................ (95,443,122) (133,519,733)
------------ ---------------
Net decrease in shares....................................... (29,300,511) (59,899,221)
============ ===============
</TABLE>
<TABLE>
<CAPTION>
TREASURY TRUST FUND PORTFOLIO
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
Shares sold:
Treasury Trust.................................................. 3,285,145,919 6,141,999,392
Treasury Trust Dollar........................................... 412,154,527 551,715,286
Shares issued in reinvestment of dividends:
Treasury Trust.................................................. 4,161,523 12,182,325
Treasury Trust Dollar........................................... 4,939,885 8,603,653
Shares repurchased:
Treasury Trust.................................................. (3,522,366,611) (6,069,160,791)
Treasury Trust Dollar........................................... (388,536,227) (519,010,905)
--------------- ---------------
Net increase (decrease) in shares............................ (204,500,984) 126,328,960
=============== ===============
</TABLE>
26
<PAGE> 27
Notes to Financial Statements (Concluded)
F. At April 30, 1996, net assets consisted of:
<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>
Paid-in capital.................... $1,400,505,682 $1,376,609,089 $199,177,878 $306,764,347 $237,008,283 $1,120,665,577
Accumulated net realized gain
(loss) on security
transactions..................... (212,239) 5,472 (57,479) 2,360 (199,423) (304,894)
-------------- -------------- ------------ ------------ ------------ --------------
$1,400,293,443 $1,376,614,561 $199,120,399 $306,766,707 $236,808,860 $1,120,360,683
============== ============== ============ ============ ============ ==============
</TABLE>
F. At October 31, 1995, FedFund, FedCash, Federal Trust and Treasury Trust had
capital loss carryovers amounting to $209,590, $80,032, $186,435 and $51,226,
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.
27
<PAGE> 28
Board of Trustees FEDFUND
G. Willing Pepper T-FUND
Chairman FEDCASH
G. Nicholas Beckwith III T-CASH
Philip E. Coldwell FEDERAL TRUST FUND
Robert R. Fortune TREASURY TRUST FUND
Jerrold B. Harris
Rodney D. Johnson
Officers
G. Willing Pepper Investment Portfolios
President Offered by
Edward J. Roach Trust for Federal Securities
Vice President and Treasurer
W. Bruce McConnel, III
Secretary
Investment Adviser
PNC Institutional Management Corporation
400 Bellevue Parkway
Wilmington, DE 19809
Co-Administrators [PROVIDENT INSTITUTIONAL FUNDS LOGO]
PFPC Inc. Semi-Annual Report to Shareholders
400 Bellevue Parkway April 30, 1996
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-T-003
