FEDERATED
SHORT-TERM
MUNICIPAL
TRUST
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
DECEMBER 31, 1994
(formerly, Short-Term Municipal Trust)
[logo] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
825253107
825253206
8020108 (2/95) [logo]
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Short-Term Municipal Trust (the "Trust"), formerly Short-Term Municipal Trust,
for the six-month period ended
December 31, 1994.
We begin this report with our customary investment review from the portfolio
manager, Jonathan C. Conley, Vice President, Federated Advisers. Mr. Conley will
discuss market activity for the past six months, and then outline the Trust's
performance and his management strategies for the period, relative to market
activity. Following the Investment Review are the Trust's Portfolio of
Investments and Financial Statements. In addition, separate Financial Highlights
tables have been included for both classes of shares of the Trust
("Institutional Shares" and "Institutional Service Shares").
As always, the Trust strives to bring you competitive monthly income that is
free from federal regular income tax,* by investing in a diverse portfolio of
high-quality municipal securities. At the end of this report period, the Trust
was invested in 70 municipal securities from 30 states and the District of
Columbia.
During the report period, dividends paid to shareholders exceeded $6 million or
$0.20 per share. The Trust's net assets are, as of this report, $250.5 million,
and the Trust's share price stands at $9.96 for both Institutional Shares and
Institutional Service Shares.
We appreciate your continued interest in the Trust, and we welcome your comments
or questions.
Sincerely,
Glen R. Johnson
President
February 15, 1995
*Income may be subject to the federal alternative minimum tax and state and
local taxes.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
For the six month period ended December 31, 1994, the short-term, fixed-income
securities markets exhibited marked levels of volatility, as the yield curves in
the taxable and tax-exempt sectors both rose and flattened, albeit to a varying
extent. From June 30, 1994 to December 31, 1994, three-year Treasury note yields
rose from 6.53% to 7.79% while "AA" municipal general obligation rates rose from
4.59% to 5.22%. During this time, the yield spread between three-year and
one-year maturities shrank by 45 basis points for Treasury issues and by 40
basis points for "AA" municipal issues.
The above-average performance of short-term municipal bonds to short-term
Treasury notes reflected the 44% decline in municipal bond issuance for the six
months ended December 31, 1994, compared to the same period in 1993. This
relative dearth of origination was led by the 73% reduction in "refunding"
issuance as higher nominal and real interest rates prevailed.
From June 30, 1994 to December 31, 1994, net assets of the Trust fell from
$348.3 million to $250.5 million. Reflecting the ascent of market rates, the
30-day yield increased from 3.73% and 3.48%, respectively, to 4.47% and 4.22%,
respectively, for Institutional Shares and Institutional Service Shares,
respectively.
During the report period, the Trust maintained a high quality portfolio. At
December 31, 1994, the credit quality of the Trust's holdings, expressed as a
percent of aggregate market value, was: 35.9% in "AAA" issues; 49.7% in "AA"
issues; 10.9% in "A" issues; and 3.5% in the highest quality tax-exempt,
short-term issues.
In determining the creditworthiness of issues for possible investment by the
Trust, the adviser concentrates on a variety of economic and financial
parameters. Demographic constitution, income distribution, industry
concentration, provision of governmental services, debt authorization, and
management/investment practices and policies are weighed when assessing general
obligation issues. For revenue obligations, cash generation, product/service
pricing elasticity, competition and industry make-up, debt structure, debt
service coverage, financial flexibility, and contingent liabilities become
subject to scrutiny.
At December 31, 1994, the portfolio effective maturity stood at 2.84 years. In
conjunction with an average coupon rate of 5.93%, and an average bond price of
101.107% of face value, the portfolio effective duration measured 2.57 years.
During the report period, an investor in the Trust experienced a total return of
0.13% for Institutional Shares and of 0.01% for Institutional Service Shares.*
These results were comprised of: income/reinvestment returns (net of share
expenses) of 2.00% and 1.88%, respectively; and 1.87% depreciation in the net
asset value per share for both Institutional Shares and Institutional Service
Shares. These figures are not annualized.
- ---------
*Performance quoted represents past performance. Investment return and principal
value will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--97.4%
- ------------------------------------------------------------------------------------
ALABAMA--2.4%
---------------------------------------------------------------------
$ 4,000,000 Alabama, 5.55% UT GO Bonds, 9/1/97 AA $ 4,027,200
---------------------------------------------------------------------
1,850,000 Alabama, 5.70% UT GO Bonds, 9/1/98 AA 1,870,535
--------------------------------------------------------------------- --------------
Total 5,897,735
--------------------------------------------------------------------- --------------
ARIZONA--1.0%
---------------------------------------------------------------------
2,500,000 Salt River Agricultural Improvement & Power District, AZ, 4.00% Power
Supply Revenue Bonds (Original Issue Yield: 4.05%), 1/1/96 Aa 2,463,875
--------------------------------------------------------------------- --------------
CALIFORNIA--13.6%
---------------------------------------------------------------------
4,000,000 California, 10.00% UT GO Bonds, 4/1/98 A+ 4,502,200
---------------------------------------------------------------------
7,500,000 California, 6.50% Various Purpose GO Bonds, 11/1/97 A+ 7,687,800
---------------------------------------------------------------------
1,250,000 Los Angeles County, CA, Transportation Commission, 4.30% Sales Tax
Revenue Bonds (Series 1992A)/(MBIA Insured), 7/1/95 Aaa 1,248,450
---------------------------------------------------------------------
13,000,000 Los Angeles, CA, Waste Water System, 6.70% Revenue Bonds (Series
D)/(MBIA Insured)/(Original Issue Yield: 6.769%), Prerefunded,
12/1/2000 (@102) AAA 13,878,410
---------------------------------------------------------------------
3,045,000 University of California, 8.00% Refunding Revenue Bonds (UCLA Medical
Center)/(MBIA Insured), 12/1/97 AAA 3,257,663
---------------------------------------------------------------------
3,310,000 University of California, 8.00% Refunding Revenue Bonds (UCLA Medical
Center)/(MBIA Insured), 12/1/98 AAA 3,600,386
--------------------------------------------------------------------- --------------
Total 34,174,909
--------------------------------------------------------------------- --------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
COLORADO--1.2%
---------------------------------------------------------------------
$ 2,995,000 Denver, City & County, CO, 7.625% GO Bonds (Series 1992C), 8/1/95 Aa $ 3,037,379
--------------------------------------------------------------------- --------------
DELAWARE--0.8%
---------------------------------------------------------------------
2,000,000 Delaware, 6.80% UT GO Bonds, 5/1/95 Aa 2,015,220
--------------------------------------------------------------------- --------------
DISTRICT OF COLUMBIA--0.8%
---------------------------------------------------------------------
1,000,000 District of Columbia, 5.50% GO Bonds (FGIC Insured),
6/1/95 Aaa 1,002,910
---------------------------------------------------------------------
1,000,000 District of Columbia, 8.00% UT GO Bonds (Prerefunded),
6/1/96 (@102) AAA 1,056,790
--------------------------------------------------------------------- --------------
Total 2,059,700
--------------------------------------------------------------------- --------------
FLORIDA--0.6%
---------------------------------------------------------------------
1,390,000 Miami Beach, FL, Health Facilities Authority, 4.45% Hospital Revenue
Refunding Bonds (Mount Sinai Medical Center)/(Capital Guaranty
Insured), 11/15/95 AAA 1,381,118
--------------------------------------------------------------------- --------------
GEORGIA--2.5%
---------------------------------------------------------------------
4,060,000 Georgia, 8.40% UT GO Bonds, 6/1/97 AA+ 4,352,442
---------------------------------------------------------------------
1,820,000 Gwinnett County, GA, School District, 4.90% GO School Bonds (Series
A), 2/1/95 Aa 1,819,873
--------------------------------------------------------------------- --------------
Total 6,172,315
--------------------------------------------------------------------- --------------
HAWAII--8.4%
---------------------------------------------------------------------
5,500,000 Hawaii, 5.40% GO Bonds, 11/1/97 Aa 5,506,710
---------------------------------------------------------------------
5,000,000 Hawaii, 7.10% GO Bonds (Prerefunded), 6/1/98 (@101-1/2) Aaa 5,306,650
---------------------------------------------------------------------
6,000,000 Honolulu, City & County, HI, 4.20% UT GO Bonds (Original Issue Yield:
4.30%), 10/1/97 AA 5,774,700
---------------------------------------------------------------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
HAWAII--CONTINUED
---------------------------------------------------------------------
$ 4,500,000 Honolulu, City & County, HI, 4.80% UT GO Bonds (Series B)/(Original
Issue Yield: 4.90%), 6/1/98 AA $ 4,385,745
--------------------------------------------------------------------- --------------
Total 20,973,805
--------------------------------------------------------------------- --------------
ILLINOIS--2.4%
---------------------------------------------------------------------
3,000,000 Illinois, 5.50% UT GO Bonds, 8/1/99 AA- 2,984,250
---------------------------------------------------------------------
2,900,000 Illinois, 5.625% Sales Tax Revenue Bonds (Series V),
6/15/98 AAA 2,912,093
--------------------------------------------------------------------- --------------
Total 5,896,343
--------------------------------------------------------------------- --------------
IOWA--0.9%
---------------------------------------------------------------------
1,095,000 Sioux City, IA, 4.15% Hospital Revenue Refunding Bonds (Series
1993O)/(Sisters of Mercy Health Corp.), 8/15/96 A 1,056,653
---------------------------------------------------------------------
1,140,000 Sioux City, IA, 4.15% Hospital Revenue Bonds (Sisters of Mercy Health
Corp.), 8/15/97 A 1,092,599
--------------------------------------------------------------------- --------------
Total 2,149,252
--------------------------------------------------------------------- --------------
MARYLAND--1.9%
---------------------------------------------------------------------
2,055,000 University of Maryland System, 4.75% Facility & Tuition Revenue Bonds
(Series A), 2/1/95 Aa 2,054,877
---------------------------------------------------------------------
2,650,000 Washington Suburban Sanitary District, MD, 7.20% UT GO Bonds, 6/1/95 Aa1 2,679,256
--------------------------------------------------------------------- --------------
Total 4,734,133
--------------------------------------------------------------------- --------------
MICHIGAN--4.4%
---------------------------------------------------------------------
5,000,000 Detroit, MI, City School District, 5.30% Refunding Bonds (Q-SBLF
Guaranty), 5/1/99 AA- 4,901,150
---------------------------------------------------------------------
2,120,000 Michigan State Hospital Finance Authority, 4.00% Hospital Revenue
Refunding Bonds (Series 1993P)/(Sisters of Mercy Health Corp.),
8/15/96 A 2,038,422
---------------------------------------------------------------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
MICHIGAN--CONTINUED
---------------------------------------------------------------------
$ 4,345,000 Michigan State Hospital Finance Authority, 4.00% Revenue Refunding
Bonds (Series 1993P)/(Sisters of Mercy Health Corp.)/(MBIA Insured),
8/15/97 Aaa $ 4,132,530
--------------------------------------------------------------------- --------------
Total 11,072,102
--------------------------------------------------------------------- --------------
MINNESOTA--2.8%
---------------------------------------------------------------------
5,000,000 Minnesota, 4.70% UT GO Bonds, 8/1/97 AA+ 4,911,600
---------------------------------------------------------------------
2,000,000 Southern Minnesota Municipal Power Agency, 9.125% Power Supply
Revenue Bonds (Prerefunded), 1/1/96 (@102) Aaa 2,117,360
--------------------------------------------------------------------- --------------
Total 7,028,960
--------------------------------------------------------------------- --------------
MISSOURI--1.6%
---------------------------------------------------------------------
2,310,000 Kansas City, MO, 5.65% Sewer Revenue Bonds, 3/1/95 Aa 2,314,019
---------------------------------------------------------------------
1,580,000 Kansas City, MO, School District, 5.70% Missouri Building Corp.
Refunding Leasehold Revenue Bonds (Series 1991A)/(FGIC Insured),
2/1/95 Aaa 1,580,079
--------------------------------------------------------------------- --------------
Total 3,894,098
--------------------------------------------------------------------- --------------
NEBRASKA--0.4%
---------------------------------------------------------------------
1,000,000 Omaha, NE, 4.70% Electric System Revenue Bonds,
(Series A)/(Public Power District), 2/1/95 Aa 999,940
--------------------------------------------------------------------- --------------
NEVADA--6.2%
---------------------------------------------------------------------
2,000,000 Clark County, NV, School District, 7.10% LT GO Bonds (Series A),
3/1/97 A+ 2,065,620
---------------------------------------------------------------------
8,500,000 Nevada, 4.75% Highway Improvement Motor Vehicle Fuel Tax Revenue
Bonds (Original Issue Yield: 4.90%), 4/1/98 AA 8,240,495
---------------------------------------------------------------------
5,000,000 Nevada, 7.00% Highway Improvement Motor Vehicle Fuel Tax Revenue
Bonds, 4/1/99 AA 5,245,650
--------------------------------------------------------------------- --------------
Total 15,551,765
--------------------------------------------------------------------- --------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
NEW HAMPSHIRE--1.3%
---------------------------------------------------------------------
$ 3,310,000 New Hampshire, 4.20% Capital Improvement Refunding GO Bonds (Series
1992), 9/1/95 Aa $ 3,286,797
--------------------------------------------------------------------- --------------
NEW JERSEY--5.9%
---------------------------------------------------------------------
7,000,000 New Jersey, 6.50% Refunding GO Bonds (Series C),
1/15/2002 AA+ 7,218,260
---------------------------------------------------------------------
7,000,000 New Jersey, 7.20% UT GO Bonds, 4/15/99 AA+ 7,467,880
--------------------------------------------------------------------- --------------
Total 14,686,140
--------------------------------------------------------------------- --------------
NEW MEXICO--4.2%
---------------------------------------------------------------------
2,250,000 Albuquerque, NM, 4.00% Joint Water & Sewer System Refunding &
Improvement Revenue Bonds (Series 1994A)/ (Original Issue Yield:
4.10%), 7/1/99 AA 2,043,248
---------------------------------------------------------------------
8,650,000 Albuquerque, NM, 4.60% UT GO Bonds (Series A), 7/1/98 AA 8,359,620
--------------------------------------------------------------------- --------------
Total 10,402,868
--------------------------------------------------------------------- --------------
NEW YORK--8.1%
---------------------------------------------------------------------
4,600,000 New York City, NY, 10.25% GO Bonds (Series C)/ (Prerefunded), 3/15/95
(@103) Aaa 4,793,844
---------------------------------------------------------------------
680,000 New York City, NY, Municipal Water Finance Authority, 6.50% Water &
Sewer System Revenue Bonds (Series C)/ (Prerefunded), 6/15/97 A- 708,002
---------------------------------------------------------------------
5,000,000 New York City, NY, Municipal Water Finance Authority, 7.20% Water &
Sewer System Revenue Bonds (Series A), 6/15/99 A- 5,315,650
---------------------------------------------------------------------
9,540,000 New York State, 5.75% UT GO Bonds, 9/15/99 A- 9,585,792
--------------------------------------------------------------------- --------------
Total 20,403,288
--------------------------------------------------------------------- --------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
OHIO--1.5%
---------------------------------------------------------------------
$ 4,000,000 Ohio State Public Facilities Corporation, 4.25% Higher Education
Capital Facilities Revenue Bonds (Series II-A)/ (AMBAC Insured),
12/1/97 AAA $ 3,842,720
--------------------------------------------------------------------- --------------
OREGON--1.5%
---------------------------------------------------------------------
2,000,000 Oregon State Department of Transportation, 5.375% Regional Light Rail
Extension Revenue Bonds (MBIA Insured), 6/1/99 AAA 1,978,640
---------------------------------------------------------------------
2,000,000 Oregon State Department of Transportation, 5.50% Regional Light Rail
Extension Revenue Bonds (MBIA Insured), 6/1/2000 AAA 1,976,880
--------------------------------------------------------------------- --------------
Total 3,955,520
--------------------------------------------------------------------- --------------
PENNSYLVANIA--5.6%
---------------------------------------------------------------------
1,155,000 Dauphin County, PA, General Authority 4.35% Revenue Bonds (Series
A)/(West Penn Hospital)/(MBIA Insured),
7/1/95 Aaa 1,153,291
---------------------------------------------------------------------
1,175,000 Dauphin County, PA, General Authority 4.35% Revenue Bonds (Series
B)/(West Penn Hospital)/(MBIA Insured),
7/1/95 Aaa 1,173,261
---------------------------------------------------------------------
5,000,000 Commonwealth of Pennsylvania, 4.75% GO Bonds, 6/15/98 AA- 4,851,100
---------------------------------------------------------------------
7,000,000 Pennsylvania Intergovernmental Cooperation Authority, 5.75% Special
Tax Revenue Bonds (City of Philadelphia)/ (FGIC Insured)/(Original
Issue Yield: 5.85%), 6/15/99 AAA 7,032,480
--------------------------------------------------------------------- --------------
Total 14,210,132
--------------------------------------------------------------------- --------------
SOUTH CAROLINA--1.5%
---------------------------------------------------------------------
2,300,000 South Carolina, 7.00% UT GO Capital Improvement Bonds, 3/1/95 Aaa 2,309,338
---------------------------------------------------------------------
1,500,000 South Carolina, 7.60% GO Bonds (Series U), 2/1/95 Aaa 1,500,075
--------------------------------------------------------------------- --------------
Total 3,809,413
--------------------------------------------------------------------- --------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
TENNESSEE--1.2%
---------------------------------------------------------------------
$ 3,000,000 Tennessee, 6.75% GO Bonds (Series 1992A), 7/1/95 AA+ $ 3,033,900
--------------------------------------------------------------------- --------------
TEXAS--3.9%
---------------------------------------------------------------------
2,425,000 Texas Public Property Finance Corp., 4.30% Refunding Revenue Bonds
(Series 1993)/(Mental Health & Mental Retardation Center), 9/1/97 AAA 2,323,368
---------------------------------------------------------------------
4,440,000 Texas, 8.00% UT GO Bonds, 10/1/99 AA 4,894,212
---------------------------------------------------------------------
2,500,000 Texas Water Development Board, 4.35% Senior Lien Revenue Bonds
(Series 1992), 7/15/95 AA 2,485,325
--------------------------------------------------------------------- --------------
Total 9,702,905
--------------------------------------------------------------------- --------------
VERMONT--1.0%
---------------------------------------------------------------------
2,500,000 Vermont, 7.50% GO Bonds (Series A), 2/1/95 Aa 2,500,125
--------------------------------------------------------------------- --------------
VIRGINIA--3.0%
---------------------------------------------------------------------
7,500,000 Fairfax County, VA, 8.25% Public Improvement Bonds (Series 1992A),
4/1/95 Aaa 7,568,325
--------------------------------------------------------------------- --------------
WASHINGTON--5.6%
---------------------------------------------------------------------
1,445,000 Seattle, WA, 4.75% Various Purpose LT GO Bonds, 3/1/95 Aa1 1,445,361
---------------------------------------------------------------------
1,500,000 Washington, 4.50% Various Purpose GO Refunding Bonds (Series 1992A),
2/1/95 (@106) Aa 1,499,925
---------------------------------------------------------------------
1,000,000 Washington, 6.80% Various Purpose GO Bonds, 4/1/95 Aa 1,005,550
---------------------------------------------------------------------
3,000,000 Washington, 5.00% Various Purpose GO Bonds (Series 1994B), 5/1/98 AA 2,955,510
---------------------------------------------------------------------
7,425,000 Washington, 5.00% Various Purpose GO Bonds (Series 1994B), 5/1/99 AA 7,247,988
--------------------------------------------------------------------- --------------
Total 14,154,334
--------------------------------------------------------------------- --------------
</TABLE>
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- --------------------------------------------------------------------- ---------- --------------
SHORT-INTERMEDIATE MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------------------
WISCONSIN--1.2%
---------------------------------------------------------------------
$ 1,970,000 Milwaukee, WI, 6.00% UT GO Public Improvement Bonds (Series CA),
6/15/95 Aa $ 1,982,981
---------------------------------------------------------------------
1,000,000 Wisconsin, 6.40% UT GO Bonds (Series A), 5/1/95 Aa 1,006,060
--------------------------------------------------------------------- --------------
Total 2,989,041
--------------------------------------------------------------------- --------------
TOTAL SHORT-INTERMEDIATE MUNICIPAL SECURITIES
(IDENTIFIED COST, $249,936,793) 244,048,157
--------------------------------------------------------------------- --------------
SHORT-TERM MUNICIPAL SECURITIES--3.5%
- ------------------------------------------------------------------------------------
ALABAMA--3.5%
---------------------------------------------------------------------
8,800,000 Birmingham, AL, Medical Clinic Board Daily VRDNs (University of
Alabama Health System)/(Morgan Guaranty Trust Co. LOC), AT AMORTIZED
COST A-1+ 8,800,000
--------------------------------------------------------------------- --------------
TOTAL INVESTMENTS (IDENTIFIED COST, $258,736,793) $ 252,848,157+
--------------------------------------------------------------------- --------------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $258,736,793. The
net unrealized depreciation of investments on a federal tax cost basis amounts
to $5,888,636, which is comprised of $30,440 appreciation and $5,919,076
depreciation at December 31, 1994.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
Note: The categories of investments are shown as a percentage of net assets
($250,467,267) at December 31, 1994.
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
The following abbreviations are used in this portfolio:
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
GO -- General Obligation
LOC(s) -- Letter(s) of Credit
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
Q-SBLF-- Qualified State Bond Loan Fund
UT -- Utah/Unlimited Tax
VA -- Virginia/Veterans Administration
VRDNs -- Variable Rate Demand Notes
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------------------------
Investments in securities, at value (identified and tax cost, $258,736,793) $ 252,848,157
- -------------------------------------------------------------------------------------------------
Interest receivable 3,614,422
- -------------------------------------------------------------------------------------------------
Receivable for Trust shares sold 162,190
- ------------------------------------------------------------------------------------------------- --------------
Total assets 256,624,769
- -------------------------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------------------------
Payable for investments purchased $ 4,371,348
- -----------------------------------------------------------------------------------
Payable for Trust shares redeemed 917,300
- -----------------------------------------------------------------------------------
Dividends payable 677,319
- -----------------------------------------------------------------------------------
Payable to bank 163,437
- -----------------------------------------------------------------------------------
Accrued expenses 28,098
- ----------------------------------------------------------------------------------- ------------
Total liabilities 6,157,502
- ------------------------------------------------------------------------------------------------- --------------
NET ASSETS for 25,157,573 shares of beneficial interest outstanding $ 250,467,267
- ------------------------------------------------------------------------------------------------- --------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------
Paid-in capital $ 266,099,454
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (5,888,636)
- -------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (9,743,551)
- ------------------------------------------------------------------------------------------------- --------------
Total Net Assets $ 250,467,267
- ------------------------------------------------------------------------------------------------- --------------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
- -------------------------------------------------------------------------------------------------
Institutional Shares ($243,104,489 / 24,418,037 shares of beneficial interest outstanding)
$9.96
- ------------------------------------------------------------------------------------------------- --------------
Institutional Service Shares ($7,362,778 / 739,536 shares of beneficial interest outstanding)
$9.96
- ------------------------------------------------------------------------------------------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------------------
Interest income $ 6,833,167
- ----------------------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------------------
Investment advisory fee $ 612,698
- -----------------------------------------------------------------------------------------
Trustees' fees 6,000
- -----------------------------------------------------------------------------------------
Administrative personnel and services fee 115,953
- -----------------------------------------------------------------------------------------
Custodian and portfolio accounting fees 82,830
- -----------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 12,768
- -----------------------------------------------------------------------------------------
Shareholder services fee 17,210
- -----------------------------------------------------------------------------------------
Registration fees 18,224
- -----------------------------------------------------------------------------------------
Distribution services fee 19,252
- -----------------------------------------------------------------------------------------
]Auditing fees 9,306
- -----------------------------------------------------------------------------------------
Legal fees 5,500
- -----------------------------------------------------------------------------------------
Printing and postage 12,500
- -----------------------------------------------------------------------------------------
Insurance premiums 5,076
- -----------------------------------------------------------------------------------------
Taxes 1,325
- -----------------------------------------------------------------------------------------
Miscellaneous 2,550
- ----------------------------------------------------------------------------------------- ---------
Total expenses 921,192
- -----------------------------------------------------------------------------------------
Deduct--
- -----------------------------------------------------------------------------------------
Waiver of investment advisory fee $ 177,775
- ------------------------------------------------------------------------------
Waiver of distribution services fee 18,231 196,006
- ------------------------------------------------------------------------------ --------- ---------
Net expenses 725,186
- ---------------------------------------------------------------------------------------------------- -----------
Net investment income 6,107,981
- ---------------------------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions (identified cost basis) (2,884,067)
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments (2,717,885)
- ---------------------------------------------------------------------------------------------------- -----------
Net realized and unrealized gain (loss) on investments (5,601,952)
- ---------------------------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $ 506,029
- ---------------------------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
1995* 1994
<S> <C> <C>
- ------------------------------------------------------------------------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------------------------
Net investment income $ 6,107,981 $ 13,727,553
- -------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions ($2,884,067 net loss and $0
net loss, respectively, as computed for federal income tax purposes) (2,884,067) (253,551)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments (2,717,885) (7,720,690)
- ------------------------------------------------------------------------------- --------------- ---------------
Change in net assets resulting from operations 506,029 5,753,312
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------------------------
Dividends to shareholders from net investment income:
- -------------------------------------------------------------------------------
Institutional Shares (5,846,799) (13,167,119)
- -------------------------------------------------------------------------------
Institutional Service Shares (261,182) (560,434)
- ------------------------------------------------------------------------------- --------------- ---------------
Change in net assets resulting from distributions to shareholders (6,107,981) (13,727,553)
- ------------------------------------------------------------------------------- --------------- ---------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS--
- -------------------------------------------------------------------------------
Proceeds from sale of shares 30,212,401 259,790,293
- -------------------------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 1,453,628 3,549,886
- -------------------------------------------------------------------------------
Cost of shares redeemed (123,866,541) (226,027,733)
- ------------------------------------------------------------------------------- --------------- ---------------
Change in net assets resulting from Trust share transactions (92,200,512) 37,312,446
- ------------------------------------------------------------------------------- --------------- ---------------
Change in net assets (97,802,464) 29,338,205
- -------------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------------
Beginning of period 348,269,731 318,931,526
- ------------------------------------------------------------------------------- --------------- ---------------
End of period $ 250,467,267 $ 348,269,731
- ------------------------------------------------------------------------------- --------------- ---------------
</TABLE>
* Six months ended December 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995* 1994 1993 1992 1991 1990 1989 1988 1987 1986
NET ASSET VALUE,
BEGINNING OF PERIOD $10.15 $10.37 $10.29 $10.18 $10.14 $10.10 $10.19 $10.24 $10.31 $10.22
- ---------------------
INCOME FROM
INVESTMENT OPERATIONS
- ---------------------
Net investment
income 0.20 0.40 0.44 0.53 0.60 0.60 0.57 0.54 0.51 0.60
- ---------------------
Net realized and
unrealized gain
(loss) on
investments (0.19) (0.22) 0.08 0.11 0.04 0.04 (0.09) (0.05) (0.07) 0.09
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total from
investment
operations 0.01 0.18 0.52 0.64 0.64 0.64 0.48 0.49 0.44 0.69
- ---------------------
LESS DISTRIBUTIONS
- ---------------------
Dividends to
shareholders from
net investment
income (0.20) (0.40) (0.44) (0.53) (0.60) (0.60) (0.57) (0.54) (0.51) (0.60)
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 9.96 $10.15 $10.37 $10.29 $10.18 $10.14 $10.10 $10.19 $10.24 $10.31
- --------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN** 0.13% 1.76% 5.11% 6.40% 6.47% 6.54% 4.84% 4.89% 4.37% 7.55%
- ---------------------
RATIOS TO AVERAGE NET
ASSETS
- ---------------------
Expenses 0.46(a) 0.47% 0.46% 0.46% 0.46% 0.47% 0.46% 0.47% 0.47% 0.48% 0.48%
- ---------------------
Net investment
income 4.01(a) 3.89% 4.21% 5.12% 5.89% 5.94% 5.59% 5.25% 4.95% 5.80% 5.80%
- ---------------------
SUPPLEMENTAL DATA
- ---------------------
Net assets, end of
period
(000 omitted) $243,104 $316,810 $318,932 $205,101 $142,493 $139,113 $178,978 $315,154 $483,279 $341,294
- ---------------------
Portfolio turnover
rate 22% 36% 15% 42% 40% 69% 55% 63% 57% 16%
- ---------------------
<CAPTION>
<S> <C>
1985
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.05
- ---------------------
INCOME FROM
INVESTMENT OPERATIONS
- ---------------------
Net investment
income 0.64
- ---------------------
Net realized and
unrealized gain
(loss) on
investments 0.17
- --------------------- ---------
Total from
investment
operations 0.81
- ---------------------
LESS DISTRIBUTIONS
- ---------------------
Dividends to
shareholders from
net investment
income (0.64)
- --------------------- ---------
NET ASSET VALUE,
END OF PERIOD $10.22
- --------------------- ---------
TOTAL RETURN** 7.68%
- ---------------------
RATIOS TO AVERAGE NET
ASSETS
- ---------------------
Expenses 0.47%
- ---------------------
Net investment
income 6.33%
- ---------------------
SUPPLEMENTAL DATA
- ---------------------
Net assets, end of
period (000 omitted) $192,573
- ---------------------
Portfolio turnover
rate 32%
- ---------------------
</TABLE>
* For the six months ended December 31, 1994 (unaudited).
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
<S> <C> <C>
1995** 1994*
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.15 $ 10.35
- ----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------
Net investment income 0.19 0.31
- ----------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.19) (0.20)
- ---------------------------------------------------------------------------------------- ----------- ---------
Total from investment operations -- 0.11
- ----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.19) (0.31)
- ---------------------------------------------------------------------------------------- ----------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.96 $ 10.15
- ---------------------------------------------------------------------------------------- ----------- ---------
TOTAL RETURN*** 0.01% 1.08%
- ----------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------
Expenses 0.71%(a) 0.72%(a)
- ----------------------------------------------------------------------------------------
Net investment income 3.58%(a) 3.65%(a)
- ----------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------
Net assets, end of period (000 omitted)
$7,363 $31,459
- ----------------------------------------------------------------------------------------
Portfolio turnover rate 22% 36%
- ----------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from August 31, 1993 (date of initial
public offering) to
June 30, 1994.
** For the six months ended December 31, 1994 (unaudited).
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Short-Term Municipal Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified, no
load, open-end management investment company.
The Trust provides two classes of shares, Institutional Shares and Institutional
Service Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--Municipal bonds are valued by an independent pricing
service taking into consideration yield, liquidity, risk, credit, quality,
coupon, maturity, type of issue, and any other factors or market data it
deems relevant in determining valuations for normal institutional size
trading units of debt securities. The independent pricing service does not
rely exclusively on quoted prices. Short-term securities with remaining
maturities of sixty days or less may be stated at amortized cost, which
approximates value.
B. INVESTMENT INCOME, EXPENSES, AND DISTRIBUTIONS--Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the
"Code"). Distributions to shareholders are recorded on the ex-dividend
date.
C. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its tax-exempt income.
Accordingly, no provisions for federal tax are necessary. At June 30, 1994,
the Trust, for federal tax purposes, had a capital loss carryforward of
$6,605,611, which will reduce the Trust's taxable income arising from
future net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of the distributions to
shareholders which would otherwise be necessary to relieve the Trust of any
liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire in 1995 ($1,449,467), 1996 ($2,255,334), 1997
($1,097,445), 1998 ($1,729,378), 1999 ($11,866) and 2001 ($62,121).
Additionally, net capital losses of $253,551 attributable to security
transactions incurred after October 31, 1993 are treated as arising on July
1, 1994, the first day of the Trust's next taxable year.
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
E. OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. Transactions in Trust Shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
<S> <C> <C> <C> <C>
1995* 1994
<CAPTION>
INSTITUTIONAL SHARES SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
Shares sold 2,834,461 $ 28,600,522 20,791,128 $ 215,505,746
- ----------------------------------------------------
Shares issued to shareholders in payment of
dividends declared 122,119 1,230,225 292,960 3,013,260
- ----------------------------------------------------
Shares redeemed (9,755,500) (98,098,265) (20,620,412) (213,148,873)
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
Net change resulting from Institutional Share
transactions (6,798,920) ($ 68,267,518) 463,676 $ 5,370,133
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
1995* 1994**
INSTITUTIONAL SERVICE SHARES SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
Shares sold 159,729 $ 1,611,879 4,299,696 $ 44,284,547
- ----------------------------------------------------
Shares issued to shareholders in payment of
dividends declared 22,090 223,403 52,512 536,626
- ----------------------------------------------------
Shares redeemed (2,542,133) (25,768,276) (1,252,358) (12,878,860)
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
Net change resulting from Institutional Service
Share transactions (2,360,314) ($ 23,932,994) 3,099,850 31,942,313
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
Total net change resulting from Trust
Share transactions (9,159,234) ($ 92,200,512) 3,563,526 $ 37,312,446
- ---------------------------------------------------- ----------- -------------- ------------- ---------------
</TABLE>
*Six months ended December 31, 1994.
**For the period from August 31, 1993 (date of initial public offering) to June
30, 1994.
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
ADVISORY FEE--Federated Management, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
.40 of 1% of the Trust's average daily net assets. The Adviser will waive, to
the extent of its advisory fee, the amount, if any, by which the Trust's
aggregate annual operating expenses (excluding interest, taxes, brokerage
commissions, expenses of registering and qualifying the Trust and its shares
under federal and state laws and regulations, expenses of withholding taxes, and
extraordinary expenses) exceeded .45 of 1% of average daily net assets of the
Trust.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust
with administrative personnel and services. The FAS fee is based on the level of
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors for the period. The administrative fee received during the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
DISTRIBUTION AND SHAREHOLDER SERVICES FEE--The Trust has adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the
Plan, the Trust will compensate Federated Securities Corp. ("FSC"), the
principal distributor, from the net assets of the Trust to finance activities
intended to result in the sale of the Trust's Institutional Service Shares. The
Plan provides that the Trust may incur distribution expenses up to .25 of 1% of
the average daily net assets of the Institutional Service Shares, annually, to
compensate FSC. The distributor may voluntarily choose to waive a portion of its
fee. The distributor can modify or terminate this voluntary waiver at any time
at its sole discretion.
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services ("FSS"), the Trust will pay FSS up to .25 of 1% of average net assets
for the Trust for the period. This fee is to obtain certain personal services
for shareholders and the maintenance of shareholder accounts.
INTERFUND TRANSACTIONS--During the period ended December 31, 1994, the Trust
engaged in purchase and sale transactions with other affiliated funds at current
value pursuant to Rule 17a-7 amounting to $28,850,000 and $55,440,000,
respectively.
Certain Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended
December 31, 1994, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------
PURCHASES-- $ 65,747,021
- -------------------------------------------------------------------------------------------------- --------------
SALES-- $ 161,034,277
- -------------------------------------------------------------------------------------------------- --------------
</TABLE>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Vice President
Edward L. Flaherty, Jr. Richard B. Fisher
Glen R. Johnson Vice President
Peter E. Madden Edward C. Gonzales
Gregor F. Meyer Vice President and Treasurer
Wesley W. Posvar John W. McGonigle
Marjorie P. Smuts Vice President and Secretary
David M. Taylor
Assistant Treasurer
G. Andrew Bonnewell
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board,
or any other government agency. Investment in mutual funds
involves investment risk, including possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Trust's prospectus which contains facts
concerning itsobjective and policies, management fees, expenses and other
information.
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________________
