President's Message
- - --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the 11th Annual Report to
Shareholders for
Tax-Free Instruments Trust (the "Trust") for the 12-month
period ended March 31, 1994. The Trust consists of two
classes of shares known as Investment Shares and
Institutional Service Shares. The
report begins with an interview with the Trust's
portfolio manager,
Jeff A. Kozemchak, Vice President, Federated Management
and follows with the Portfolio of Investments and
Financial Statements.
As taxes take more of our income than ever, we believe
that the Trust offers a convenient way to keep more of
what you earn by pursuing money market income free from
federal regular income tax.* The Trust offers stability
of principal,** with daily access to your money.
At the end of the report period, the Trust's portfolio
was highly diversified among short-term municipal
securities from 36 states and Puerto Rico. Net assets
were $1.7 billion.
Thank you for your participation in Tax-Free Instruments
Trust. We'll continue to keep you up to date on your
investment, and we welcome your comments and suggestions.
Sincerely,
Glen R. Johnson
President
May 16, 1994
*INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM
TAX AND STATE AND LOCAL TAXES.
**WHILE NO MONEY MARKET MUTUAL FUND CAN GUARANTEE THAT A
STABLE NET ASSET VALUE WILL BE MAINTAINED, THE TRUST
HAS DONE SO SINCE ITS INCEPTION IN 1982.
Investment Review
- - --------------------------------------------------------------------------------
Q WHAT HAS HAPPENED TO INTEREST RATES AND THE
MUNICIPAL MONEY MARKETS SINCE OUR LAST REPORTING?
A Throughout most of last year, economic numbers
continued to be more anemic than anticipated,
and inflation appeared to be under control. With
little threat of inflation, the municipal
markets responded with some of the lowest
yields over the past decade in both the bond and
the money markets. Despite the low yield
environment, total assets of municipal money
market funds reached an all-time high of over
Jeff A. Kozemchak, $116 billion in March, 1994, illustrating the
CFA attractiveness of tax-exempt investments
Vice President, relative to taxable alternatives.
Federated Management
In the first quarter of 1994, signs of economic
strength prompted the Federal Reserve Board (the
"Fed") to twice "tighten" or increase short-term
interest rates, moving the
Federal Funds rate target from 3.00% to
3.50%. The municipal money market reacted with a
corresponding back-up in rates, which was
somewhat exacerbated by $3.2 billion of new
fixed-rate supply offered by the State of
California in mid-February. With renewed
concerns of economic recovery and inflation,
investors immediately began to demand higher
liquidity premiums to invest further out the
yield curve, causing rates on 1-year notes to
rise to their highest levels since June, 1992.
Q HOW ARE YOU MANAGING THE PORTFOLIO TO CAPITALIZE
ON THIS RATE ENVIRONMENT?
A Unlike most of last year, when expectations of
stable to lower interest rates were commonplace,
we now are in an environment of rising interest
rate expectations. For most of last year, I
maintained a longer average maturity in the
Trust, to take advantage of the yield premium
available on fixed-rate notes relative to
variable rate demand notes. Since July of 1993,
I have allowed the average maturity of the Trust
to slowly decrease from 74 days to 48 days at the
end of March, 1994. I believe that a shorter
average maturity, combined with a higher
percentage of liquid variable rate demand notes,
should allow the Trust to be even more
responsive to an increasing rate environment.
- - --------------------------------------------------------------------------------
Q GOING FORWARD, WHAT IS YOUR OUTLOOK FOR THE
TAX-FREE MONEY MARKETS AND THE TRUST?
A I believe that interest rates will continue to
rise over the year, and that the Federal Funds
rate target will be 4.0% by mid-year and 4.25%
or higher by year-end. In a rising rate
environment, stable net asset value money market
funds like the Trust are a key component in any
strategy to preserve capital. The Trust's yield
should improve if interest rates rise (of
course, Fund performance is not guaranteed). I
also believe that tax-free cash vehicles like
the Trust will continue to outperform taxable
money fund alternatives as they have over the
past several years. With interest rates rising,
I anticipate keeping the average maturity short
and the portfolio liquid, while choosing
carefully and selectively along the yield curve
as attractive fixed-rate opportunities appear.
3
Tax-Free Instruments Trust
Portfolio of Investments
- - --------------------------------------------------------------------------------
March 31, 1994
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--98.6%
- - ---------------------------------------------------------------------------------
ALABAMA--2.4%
------------------------------------------------------------------
$ 9,710,000 Alabama Special Care Facilities Finance Authority, Weekly VRDNs
(Daughters of Charity Health Systems Guaranty) VMIG1 $ 9,710,000
------------------------------------------------------------------
1,600,000 Bon Air, AL, IDB Weekly VRDNs (Avondale Mills, Inc.)/(Trust Co.
Bank LOC) P-1 1,600,000
------------------------------------------------------------------
1,400,000 Decatur, AL, IDB Weekly VRDNs Revenue Refunding Bonds (Series
1993)/(Allied Signal, Inc. Guaranty) A-1 1,400,000
------------------------------------------------------------------
4,950,000 Eutaw, AL, IDB Weekly VRDNs (Mississippi Power Company Guaranty) VMIG1 4,950,000
------------------------------------------------------------------
8,900,000 Homewood, AL, IDA Weekly VRDNs (Mountain Brook Ltd.)/(SouthTrust
Bank of Alabama LOC) P-1 8,900,000
------------------------------------------------------------------
2,000,000 Mobile, AL, IDB, PCR Weekly VRDNs (Series 1993A)/ (Alabama Power
Company Guaranty) A-1 2,000,000
------------------------------------------------------------------
7,000,000 Mobile, AL, IDB, PCR Weekly VRDNs (Series 1993B)/ (Alabama Power
Company Guaranty) A-1 7,000,000
------------------------------------------------------------------
6,355,000 Vincent, AL, Industrial Development Board Weekly VRDNs
(Headquarters Partnership)/(National Australia Bank Ltd. LOC) P-1 6,355,000
------------------------------------------------------------------ ----------------
Total 41,915,000
------------------------------------------------------------------ ----------------
ARIZONA--2.1%
------------------------------------------------------------------
5,000,000 Apache County, AZ, PCR Weekly VRDNs (Tucson Electric Power
Company)/(Chemical Bank LOC) P-1 5,000,000
------------------------------------------------------------------
12,000,000 Arizona Agricultural Improvement & Power District, 2.30% CP (Salt
River Project Guaranty), Mandatory Tender 4/11/94 A-1+ 12,000,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
ARIZONA--CONTINUED
------------------------------------------------------------------
$ 888,200 Gilbert, AZ, IDA Weekly VRDNs (Foxworth-Galbrath Lumber Co.)/(Bank
One, Arizona LOC) P-1 $ 888,200
------------------------------------------------------------------
1,929,000 Maricopa County, AZ, IDA Weekly VRDNs (Chaparral City Water
Services)/(Bank One, Arizona LOC) P-1 1,929,000
------------------------------------------------------------------
9,725,000 Maricopa County, AZ, IDA Weekly VRDNs (Series 1984)/(Gannett Co.
Guaranty) P-1 9,725,000
------------------------------------------------------------------
5,203,000 Pima County, AZ, IDA Weekly VRDNs (A&P Investments)/(Bank One,
Arizona LOC) P-1 5,203,000
------------------------------------------------------------------
2,105,000 Pima County, AZ, IDA Weekly VRDNs (BJR Investments, Inc.)/(Bank
One, Arizona LOC) P-1 2,105,000
------------------------------------------------------------------ ----------------
Total 36,850,200
------------------------------------------------------------------ ----------------
CALIFORNIA--10.7%
------------------------------------------------------------------
8,500,000 ABAG Finance Authority for Non-Profit Corporations, COPs Weekly
VRDNs (Series 1993)/(Lucile Salter Packard Children's Hospital at
Stanford)/(AMBAC Insured) VMIG1 8,500,000
------------------------------------------------------------------
6,900,000 Antioch, CA, Unified School District Tax, 3.00% TRANs, 6/30/94 MIG1 6,904,129
------------------------------------------------------------------
1,900,000 California Health Facilities Authority Weekly VRDNs (Catholic
Healthcare System)/(MBIA Insured) A-1+ 1,900,000
------------------------------------------------------------------
980,000 California Health Facilities Authority Weekly VRDNs (O'Connor
Hospital and St. Vincent's Medical Center, Inc.)/(Daughters of
Charity Health System Guaranty) VMIG1 980,000
------------------------------------------------------------------
11,715,000 California School Cash Reserve Program Authority, 2.85% TANs
(California School Boards Pooled Loan Project)/(Series
1993)/(lndustrial Bank of Japan Ltd. LOC), 6/21/94 SP-1+ 11,715,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
CALIFORNIA--CONTINUED
------------------------------------------------------------------
$ 17,000,000 California School Cash Reserve Program Authority, 3.40% TANs
(California School Boards Pooled Loan Project)/(Series 1993A),
7/5/94 SP-1+ $ 17,021,460
------------------------------------------------------------------
16,000,000 California State Weekly VRDNs SP-1 16,000,000
------------------------------------------------------------------
10,900,000 California State, 3.50% RANs (Series 1994A), 6/28/94 SP-1 10,931,470
------------------------------------------------------------------
20,000,000 California State, 3.50% RANs (Series 1994B), 7/26/94 SP-1 20,040,679
------------------------------------------------------------------
15,000,000 Clovis Unified School District, CA, 3.00% TRANs,
6/29/94 MIG1 15,008,888
------------------------------------------------------------------
2,970,000 Eastern Municipal Water District of Riverside County, CA, Weekly
VRDNs (Series 1993B)/(Industrial Bank of Japan LOC) VMIG1 2,970,000
------------------------------------------------------------------
8,000,000 Fremont Union High School District, CA, 3.00% TRANs, 6/30/94 MIG1 8,005,355
------------------------------------------------------------------
5,100,000 Kern County, CA, COPs Weekly VRDNs (Series 1986)/ (Public
Facilities Project)/(Sanwa Bank Ltd. LOC) A-1+ 5,100,000
------------------------------------------------------------------
4,000,000 Livermore, CA, 3.00% TRANs, 6/30/94 MIG1 4,002,591
------------------------------------------------------------------
5,800,000 Monterey County, CA, 3.00% TRANs, 6/30/94 MIG1 5,803,757
------------------------------------------------------------------
5,100,000 Oakland, CA, Redevelopment Agency Weekly VRTCs (Prerefunded), R NR(1) 5,100,000
------------------------------------------------------------------
9,400,000 Orange County, CA, 3.40% TRANs, 8/11/94 SP-1+ 9,411,215
------------------------------------------------------------------
6,400,000 Orange County, CA, Weekly VRDNs (Series 1991A)/ (Apartment
Development The Lakes)/(Citibank N.A. LOC) A-1 6,400,000
------------------------------------------------------------------
19,000,000 San Bernadino County, CA, 3.25% TRANs (Series 1993) 7/29/94 A-1+ 19,028,881
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
CALIFORNIA--CONTINUED
------------------------------------------------------------------
$ 3,000,000 Santa Clara County, CA, Housing Authority Weekly VRDNs (Series
1985G)/(Benton Park Central Apartments)/(Citibank N.A. LOC) P-1 $ 3,000,000
------------------------------------------------------------------
6,200,000 Student Education Loan Marketing Corp., CA, 2.65% Annual TOBs
(Series 1993A)/(Dresdner Bank AG LOC), Mandatory Tender 11/1/94 A-1+ 6,200,000
------------------------------------------------------------------ ----------------
Total 184,023,425
------------------------------------------------------------------ ----------------
COLORADO--0.9%
------------------------------------------------------------------
10,000,000 Arapahoe County, CO, Improvement Authority, 2.90% Semi-Annual TOBs
(Societe Generale LOC), Optional Tender 8/31/94 SP-1+ 10,000,000
------------------------------------------------------------------
4,800,000 Moffat County, CO, PCR Weekly VRDNs (Series 1984)/ (Colorado UTE
Electric Association)/(NRUCFC
Guaranty) A-1 4,800,000
------------------------------------------------------------------ ----------------
Total 14,800,000
------------------------------------------------------------------ ----------------
CONNECTICUT--2.5%
------------------------------------------------------------------
9,500,000 Connecticut Development Healthcare Authority Weekly VRDNs
(Independence Living, Inc.)/(Credit Commercial de France LOC) VMIG1 9,500,000
------------------------------------------------------------------
16,200,000 Connecticut State Transportation Infrastructure Authority Weekly
VRDNs (Industrial Bank of Japan Ltd. LOC) VMIG1 16,200,000
------------------------------------------------------------------
7,000,000 Connecticut State, 2.70% Quarterly Tender Option Certificates,
VRTCs (AMBAC Insured), 5/17/94, R A-1+ 7,000,000
------------------------------------------------------------------
10,000,000 Connecticut State, HFA, 2.80% Annual TOBs (Series
1993E-1)/(Housing Mortgage Finance Program), Mandatory Tender
11/15/94 A-1+ 10,000,000
------------------------------------------------------------------ ----------------
Total 42,700,000
------------------------------------------------------------------ ----------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
DELAWARE--1.8%
------------------------------------------------------------------
$ 5,000,000 Delaware EDA Weekly VRDNs (Series A)/(MBIA Insured) VMIG1 $ 5,000,000
------------------------------------------------------------------
25,194,000 Delaware Health Facilities Authority Weekly VRDNs (Series 1985
BTP-19A)/(The Medical Center of Delaware)/(MBIA Insured), R NR(1) 25,194,000
------------------------------------------------------------------ ----------------
Total 30,194,000
------------------------------------------------------------------ ----------------
FLORIDA--11.3%
------------------------------------------------------------------
4,050,000 Broward County Health Facility Authority Revenue Bonds Weekly
VRDNs (John Knox Village of Florida)/ (First Union National Bank
LOC) P-1 4,050,000
------------------------------------------------------------------
4,100,000 Columbia County, FL, Health Facility Authority Weekly VRDNs
(Series 1991)/(Lake Shore Hospital)/(Sumitomo Bank Ltd. LOC) A-1+ 4,100,000
------------------------------------------------------------------
4,770,000 Dade County, FL, IDA Weekly VRDNs (Smith Terminal Warehouse
Co.)/(First Union National Bank LOC) P-1 4,770,000
------------------------------------------------------------------
20,000,000 Dade County, FL, Water & Sewer System Revenue Bonds, Weekly VRDNs
(Series 1994)/(FGIC Insured) A-1+ 20,000,000
------------------------------------------------------------------
16,225,000 Eustis Health Facilities Authority, FL, Weekly VRDNs (Series
1985)/(Waterman Medical Center, Inc.)/(Banque Paribas LOC) VMIG1 16,225,000
------------------------------------------------------------------
16,000,000 Floating Rate Trust Certificate Weekly VRDNs (Dade County, FL,
School District)/(FGIC Insured), R P-1 16,000,000
------------------------------------------------------------------
4,250,000 Floating Rate Trust Certificate Weekly VRDNs (Dade County, FL,
School District)/(FGIC Insured), R P-1 4,250,000
------------------------------------------------------------------
11,000,000 Florida Department of Environment Protection, VRDCs (Series
1994A)/(AMBAC Insured), R A-1 11,000,000
------------------------------------------------------------------
14,615,000 Florida HFA Weekly VRDNs (Cornerstone)/(PNC Bank, N.A. LOC) A-1 14,615,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
FLORIDA--CONTINUED
------------------------------------------------------------------
$ 10,210,000 Florida HFA Weekly VRDNs (Series 1985AA)/(Parrot's
Landing)/(Citibank N.A. LOC) A-1 $ 10,210,000
------------------------------------------------------------------
10,000,000 Florida Local Government Finance Authority Weekly VRDNs (Series
1986A)/(Governmental Unit Loan Program)/(First Union National Bank
LOC) A-1 10,000,000
------------------------------------------------------------------
5,965,000 Florida State Board of Education Capital Outlay, 2.70% Semi-Annual
TOBs (GR 48)/(Citibank N.A. BPA), 6/1/94 NR(2) 5,965,000
------------------------------------------------------------------
6,035,000 Florida State Board of Education Capital Outlay, 2.70% Semi-Annual
TOBs (GR 48D)/(Citibank N.A. BPA),
6/1/94 NR(2) 6,035,000
------------------------------------------------------------------
3,405,000 Florida State Board of Education Capital Outlay, 2.70% Semi-Annual
TOBs (CR49)/(Citibank N.A. BPA), 6/1/94 NR(2) 3,405,000
------------------------------------------------------------------
3,695,000 Florida State Board of Education Capital Outlay, 2.70% Semi-Annual
TOBs (CR49D)/(Citibank N.A. BPA),
6/1/94 NR(2) 3,695,000
------------------------------------------------------------------
10,000,000 Florida State Department of Environmental Protection Weekly VRDNs
Revenue Refunding Bonds (AMBAC Insured)/(Landesbank Hessen LIQ), R A-1+ 10,000,000
------------------------------------------------------------------
1,000,000 Hillsborough County, FL, IDA Weekly VRDNs (Series 1988)/(Florida
Steel Corp.)/(Bankers Trust Co. LOC) P-1 1,000,000
------------------------------------------------------------------
4,000,000 Jacksonville, FL, IDR Daily VRDNs (River Garden)/ (Banque Paribas
LOC) A-1 4,000,000
------------------------------------------------------------------
5,210,000 Jacksonville, FL, IDR Daily VRDNs (River Garden)/ (Banque Paribas
LOC) A-1 5,210,000
------------------------------------------------------------------
5,000,000 Jacksonville, FL, PCR, 2.50% CP (Series 1994)/(Florida Power &
Light Company), Mandatory Tender 5/13/94 A-1 5,000,000
------------------------------------------------------------------
5,710,000 Manatee County, FL, HFA Weekly VRDNs (Carriage Club)/(Mellon Bank
N.A. LOC) VMIG1 5,710,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
FLORIDA--CONTINUED
------------------------------------------------------------------
$ 14,000,000 Mount Dora, FL, Health Facility Weekly VRDNs (Series
1989)/(Waterman Village)/(Sumitomo Bank Ltd. LOC) A-1+ $ 14,000,000
------------------------------------------------------------------
2,000,000 Orange County, FL, Health Facilities Authority Weekly VRDNs
(Mayflower Retirement Community, Inc.)/
(Banque Paribas LOC) A-1 2,000,000
------------------------------------------------------------------
7,945,000 Saint Lucie County, FL, IDR Bonds Weekly VRDNs (Series
1985)/(Savannah Hospital)/(Nationsbank of Georgia N.A. LOC) P-1 7,945,000
------------------------------------------------------------------
5,000,000 Seminole County, FL, Health Facility Authority IDA Weekly VRDNs
(Series 1991)/(Florida Living Nursing Center)/(Barnett Bank of
Central Florida N.A. LOC) VMIG1 5,000,000
------------------------------------------------------------------ ----------------
Total 194,185,000
------------------------------------------------------------------ ----------------
GEORGIA--1.8%
------------------------------------------------------------------
4,945,000 Bartow County, GA, IDA Weekly VRDNs (Princeton Carpets)/(First
Union National Bank LOC) P-1 4,945,000
------------------------------------------------------------------
4,935,000 Cobb County, GA, IDR Weekly VRDNs (Atlanta RDC Co.)/(First Union
National Bank LOC) P-1 4,935,000
------------------------------------------------------------------
1,500,000 Fulton County, GA, IDA Weekly VRDNs (Automated Data Processing Co.
Guaranty) P-1 1,500,000
------------------------------------------------------------------
10,116,487 Georgia Municipal Association Pooled Loan Program Weekly VRDNs
(Series 1990)/(MBIA Insured), R A-1+ 10,116,487
------------------------------------------------------------------
3,190,000 Georgia State Residential Finance Authority, SFM, 2.60%
Semi-Annual TOBs (Series 1987A), Optional Tender 6/1/94 NR(2) 3,190,000
------------------------------------------------------------------
3,000,000 La Grange, GA, Housing Authority, 2.75% Semi-Annual TOBs (Lee's
Crossing Phase l)/(Barnett Bank of Jacksonville LOC), Optional
Tender 5/2/94 P-1 3,000,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
GEORGIA--CONTINUED
------------------------------------------------------------------
$ 3,180,000 La Grange, GA, Housing Authority, 2.75% Semi-Annual TOBs (Lee's
Crossing Phase II)/(Barnett Bank of Jacksonville LOC), Optional
Tender 5/2/94 P-1 $ 3,180,000
------------------------------------------------------------------ ----------------
Total 30,866,487
------------------------------------------------------------------ ----------------
ILLINOIS--2.1%
------------------------------------------------------------------
1,800,000 Champaign, IL, IDRB Weekly VRDNs (Christie Clinic)/ (National City
Bank, Indiana LOC) A-1 1,800,000
------------------------------------------------------------------
10,000,000 Chicago, IL, GO Notes, 2.90% Semi-Annual TOBs (Series
1993B)/(Dai-lchi Kangyo Bank Ltd., Sanwa Bank Ltd., Mitsubishi
Bank Ltd., Industrial Bank of Japan Ltd. and Sumitomo Bank Ltd.
LOCs), Optional Tender 5/1/94 SP-1 10,000,000
------------------------------------------------------------------
2,600,000 Illinois Development Finance Authority PCR Daily VRDNs (Diamond
Star Motors)/(Mitsubishi Bank, LOC) VMIG1 2,600,000
------------------------------------------------------------------
1,033,000 Illinois Development Finance Authority Weekly VRDNs (Newlywed
Food)/(Mellon Bank N.A. LOC) A-1 1,033,000
------------------------------------------------------------------
3,000,000 Illinois Educational Facilities Authority Weekly VRDNs (Series
1992)/(DePaul University)/(Sanwa Bank Ltd. LOC) VMIG1 3,000,000
------------------------------------------------------------------
10,300,000 Illinois State Toll Highway Authority Weekly VRDNs (Series
1993B)/(MBIA Insured) VMIG1 10,300,000
------------------------------------------------------------------
3,750,000 Oakbrook Terrace, IL, IDR Weekly VRDNs (Series 1993)/(La Quinta
Motor Inns, Inc.)/(Nationsbank of Texas N.A. LOC) P-1 3,750,000
------------------------------------------------------------------
2,450,000 Rockford, IL, EDRB, 3.00% TOBs (Independence Village of
Rockford)/(Banque Paribas, Paris LOC), Optional Tender 12/1/94 P-1 2,450,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
ILLINOIS--CONTINUED
------------------------------------------------------------------
$ 1,500,000 Savanna, IL, IDA Weekly VRDNs (Metform Corp.)/ (Mellon Bank N.A.
LOC) P-1 $ 1,500,000
------------------------------------------------------------------ ----------------
Total 36,433,000
------------------------------------------------------------------ ----------------
INDIANA--3.4%
------------------------------------------------------------------
6,500,000 Elkhart, IN, 3.00% TANs, 12/30/94 NR 6,514,206
------------------------------------------------------------------
4,000,000 Gary, IN, Environment Improvement Refunding Bonds, 3.10% CP
(S-86)/(USX, Inc.)/(Long Term Credit Bank of Japan Ltd. LOC),
Mandatory Tender 5/19/94 A-2 4,000,000
------------------------------------------------------------------
2,600,000 Hamilton County, IN, Hospital Authority Weekly VRDNs (Daughters of
Charity Health Systems
Guaranty) VMIG1 2,600,000
------------------------------------------------------------------
25,000,000 Indiana Bond Bank, 3.03% RANs (Series A2), 1/17/95 SP-1+ 25,054,163
------------------------------------------------------------------
3,000,000 Mishawaka, IN, Temporary Loan Warrants, 3.625% TANs, 12/30/94 NR(3) 3,008,190
------------------------------------------------------------------
7,000,000 Richmond, IN, EDA Weekly VRDNs (Gannett Co. Guaranty) P-1 7,000,000
------------------------------------------------------------------
9,400,000 Vigo County, IN, School Corporation, 2.85% TANs,
12/30/94 NR 9,408,227
------------------------------------------------------------------ ----------------
Total 57,584,786
------------------------------------------------------------------ ----------------
KANSAS--1.6%
------------------------------------------------------------------
5,600,000 Burlington, KS, PCR, 2.70% CP (Kansas City Power & Light
Co.)/(Societe Generale LOC) Mandatory Tender 5/18/94 P-1 5,600,000
------------------------------------------------------------------
21,940,000 La Cygne, KS, Weekly VRDNs (Kansas City Power & Light Co.) P-1 21,940,000
------------------------------------------------------------------ ----------------
Total 27,540,000
------------------------------------------------------------------ ----------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
KENTUCKY--1.7%
------------------------------------------------------------------
$ 20,450,000 Daviess County, KY, Hospital Revenue Authority Weekly VRDNs
(Owensboro Daviess Hospital)/ (Sumitomo Bank Ltd. LOC) P-1 $ 20,450,000
------------------------------------------------------------------
7,400,000 Kentucky Housing Corp., 2.80% Annual TOBs Housing Revenue Bonds
(Series 1993E), Mandatory Tender
10/27/94 A-1+ 7,400,000
------------------------------------------------------------------
1,800,000 Owensboro, KY, Limited Obligation Revenue Bonds, 2.85% TOBs (Dart
Polymers)/(NBD Bank LOC), 5/31/94 P-1 1,800,000
------------------------------------------------------------------ ----------------
Total 29,650,000
------------------------------------------------------------------ ----------------
LOUISIANA--0.7%
------------------------------------------------------------------
11,600,000 Louisiana PFA Hospital Revenue Bonds, 2.50% CP (Our Lady of
Lake)/(FSA Insured), Mandatory Tender
5/13/94 VMIG1 11,600,000
------------------------------------------------------------------ ----------------
MAINE--1.0%
------------------------------------------------------------------
2,440,000 Gardiner, ME, IDB Weekly VRDNs (Associated
Grocers)/(Westpac Banking Corp. LOC) P-1 2,440,000
------------------------------------------------------------------
7,000,000 Portland, ME, Water District, 2.70% BANs (Series A),
4/1/94 NR(3) 7,000,000
------------------------------------------------------------------
7,000,000 Portland, ME, Water District, 2.85% BANs (Series B), 11/23/94 NR(3) 7,000,000
------------------------------------------------------------------ ----------------
Total 16,440,000
------------------------------------------------------------------ ----------------
MARYLAND--4.1%
------------------------------------------------------------------
1,864,000 Howard County, MD, Weekly VRDNs (Series 1990)/ (Nick B. & Mary C.
Mangione)/(Nationsbank of
Maryland LOC) P-1 1,864,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
MARYLAND--CONTINUED
------------------------------------------------------------------
$ 1,180,000 Maryland State Department of Housing & Community Development,
3.30% Annual TOBs Single Family Bonds (Series 1994)/(Maryland
Community Development Administration), Mandatory Tender 3/30/95 VMIG1 $ 1,180,000
------------------------------------------------------------------
2,000,000 Maryland State Department of Transportation, 2.85% Semi-Annual
TOBs VRTCs (Sanwa Bank LIQ),
6/16/94, R VMIG1 2,000,000
------------------------------------------------------------------
11,500,000 Maryland State Department of Transportation, 2.85% Semi-Annual
TOBs (Sanwa Bank LIQ), 6/16/94, R VMIG1 11,500,000
------------------------------------------------------------------
2,245,000 Maryland State, EDA Weekly VRDNs (Series 1991)/ (Maryland Academy
of Sciences Facility)/(Nationsbank of North Carolina N.A. LOC) VMIG1 2,245,000
------------------------------------------------------------------
4,020,000 Maryland State, GO Bonds Weekly VRDNs P-Floats (First Series,
1993), R VMIG1 4,020,000
------------------------------------------------------------------
6,700,000 Maryland State, HEFA Weekly VRDNs (Dai-lchi Kangyo Bank Ltd. LOC) VMIG1 6,700,000
------------------------------------------------------------------
2,000,000 Maryland State, HEFA Weekly VRDNs (Series 1992A)/ (Carroll Co.
General Hospital)/(NationsBank of Maryland LOC) P-1 2,000,000
------------------------------------------------------------------
12,100,000 Montgomery County, MD, EDA Weekly VRDNs (U.S. Pharmacopeial,
Inc.)/(Chemical Bank LOC) VMIG1 12,100,000
------------------------------------------------------------------
27,580,000 Washington Suburban Sanitary District, MD, Weekly VRDNs (Series
PT-13), R VMIG1 27,580,000
------------------------------------------------------------------ ----------------
Total 71,189,000
------------------------------------------------------------------ ----------------
MASSACHUSETTS--0.7%
------------------------------------------------------------------
12,000,000 Massachusetts Bay Transit Authority, 3.75% BANs,
3/1/95 A-1 12,063,799
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
MASSACHUSETTS--CONTINUED
------------------------------------------------------------------
$ 500,000 Massachusetts HEFA Weekly VRDNs (Series D)/
(Capital Asset Program)/(MBIA Insured) VMIG1 $ 500,000
------------------------------------------------------------------ ----------------
Total 12,563,799
------------------------------------------------------------------ ----------------
MICHIGAN--1.6%
------------------------------------------------------------------
1,000,000 Flint, Ml, EDA Weekly VRDNs (PPG Industries, Inc. Guaranty) P-1 1,000,000
------------------------------------------------------------------
2,700,000 Michigan State Hospital Finance Authority Weekly VRDNs (Sisters of
the Third Order of St. Francis)/ (Swiss Bank Corp. LOC) P-1 2,700,000
------------------------------------------------------------------
9,800,000 Michigan State Housing Development Authority Weekly VRDNs (Series
1992B)/(Sumitomo Bank Ltd. LOC) A-1 9,800,000
------------------------------------------------------------------
11,900,000 Michigan Strategic Fund Adjustable Rate Demand Limited Obligation
Revenue Refunding Bonds, 2.65% Annual TOBs (Series
1993A)/(Consumers Power Company)/(Canadian Imperial Bank of
Commerce LOC), Mandatory Tender 6/15/94 P-1 11,900,000
------------------------------------------------------------------
2,600,000 Sterling Heights, Ml, Economic Development Corp. Weekly VRDNs (PPG
Industries, INC. Guaranty) P-1 2,600,000
------------------------------------------------------------------ ----------------
Total 28,000,000
------------------------------------------------------------------ ----------------
MINNESOTA--1.7%
------------------------------------------------------------------
4,500,000 Eagan, MN, Multi-Family Housing Weekly VRDNs (Series
1992A)/(Cinnamon Ridge)/(Mellon Bank N.A. LOC) VMIG1 4,500,000
------------------------------------------------------------------
5,000,000 Rochester, MN, Health Care Facility Weekly VRDNs (Mayo Clinic
Foundation Guaranty) VMIG1 5,000,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
MINNESOTA--CONTINUED
------------------------------------------------------------------
$ 5,000,000 Saint Cloud, MN, Hospital Facility Authority Weekly VRDNs (Series
1990A)/(St. Cloud Hospital)/ (Kredeitbank N.V. LOC) A-1 $ 5,000,000
------------------------------------------------------------------
2,000,000 Shakopee, MN, Hospital Finance Authority Weekly VRDNs (St. Francis
Regional Medical Center)/(Citibank N.A. LOC) A-1 2,000,000
------------------------------------------------------------------
13,110,000 Washington County, MN, Housing & Redevelopment Authority Weekly
VRDNs (Series 90)/(Granada Pond Apartments)/(Sumitomo Bank Ltd.
LOC) A-1 13,110,000
------------------------------------------------------------------ ----------------
Total 29,610,000
------------------------------------------------------------------ ----------------
MISSOURI--0.4%
------------------------------------------------------------------
3,400,000 Missouri HEFA Weekly VRDNs (Series D)/(Sisters of Mercy Guaranty) A-1+ 3,400,000
------------------------------------------------------------------
3,300,000 Sedalia, MO, IDA Weekly VRDNs (Cooper Industries)/ (Sanwa Bank
Ltd. LOC) P-1 3,300,000
------------------------------------------------------------------ ----------------
Total 6,700,000
------------------------------------------------------------------ ----------------
NEW JERSEY--5.1%
------------------------------------------------------------------
1,600,000 Mercer County, NJ, Improvement Authority Weekly VRDNs (Credit
Suisse LOC) A-1+ 1,600,000
------------------------------------------------------------------
533,727 New Jersey EDA Weekly VRDNs (H.L. Bhasin)/(Dai-lchi Kangyo Bank
Ltd. LOC and Ford Motor Credit BPA) P-1 533,727
------------------------------------------------------------------
1,280,000 New Jersey EDA Weekly VRDNs (Series 1992L)/(Kent Place
School)/(Banque Nationale de Paris LOC) VMIG1 1,280,000
------------------------------------------------------------------
7,130,000 New Jersey HFA, 2.75% Semi-Annual TOBs (Series 1992A), Optional
Tender 5/1/94 NR(2) 7,130,000
------------------------------------------------------------------
55,930,000 New Jersey State, 3.00% TRANs (Series 1992B), 6/15/94 SP-1+ 56,016,402
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
NEW JERSEY--CONTINUED
------------------------------------------------------------------
$ 10,000,000 New Jersey Transportation Trust Fund Agency Weekly VRDNs (Series
1993A)/(FSA Insured), R VMIG1 $ 10,000,000
------------------------------------------------------------------
4,000,000 New Jersey Turnpike Authority Weekly VRDNs (Series 1991D)/(FGIC
Insured) A-1+ 4,000,000
------------------------------------------------------------------
2,220,000 Passaic Valley, NJ, Water Commission Supply Revenue Bonds Weekly
VRDNs (PA-52)/(FGIC Insured), R VMIG1 2,220,000
------------------------------------------------------------------
5,586,000 Sussex, NJ, 2.74% BANs, 5/4/94 NR(3) 5,586,192
------------------------------------------------------------------ ----------------
Total 88,366,321
------------------------------------------------------------------ ----------------
NEW YORK--3.1%
------------------------------------------------------------------
7,000,000 Longwood Central School District, NY, 3.25% TANs,
6/30/94 NR 7,002,509
------------------------------------------------------------------
5,500,000 New Rochelle, NY, IDA Weekly VRDNs (Charles Sadek Import
Co.)/(Bank of New York LOC) P-1 5,500,000
------------------------------------------------------------------
18,000,000 New York City, NY, 3.50% RANs, 4/15/94 SP-1 18,004,686
------------------------------------------------------------------
8,000,000 Niagara County, NY, IDA Weekly VRDNs (Allegheny Ludlum Steel
Corp.)/(PNC Bank N.A. LOC) A-1 8,000,000
------------------------------------------------------------------
15,000,000 Suffolk County, NY, 2.70% TANs (Series 1994I)/
(Mitsubishi Bank Ltd. LOC), 8/16/94 MIG1 15,036,238
------------------------------------------------------------------ ----------------
Total 53,543,433
------------------------------------------------------------------ ----------------
NORTH CAROLINA--5.0%
------------------------------------------------------------------
1,000,000 Alamance County, NC, IDA Weekly VRDNs (Series B)/ (Culp,
Inc.)/(First Union National Bank LOC) P-1 1,000,000
------------------------------------------------------------------
2,000,000 Charlotte, NC, Revenue Refunding Certificates of Participation
Weekly VRDNs (AMBAC Insured), R VMIG1 2,000,000
------------------------------------------------------------------
1,000,000 Cleveland County, NC, IDA Weekly VRDNs (PPG Industries Guaranty) P-1 1,000,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
------------------------------------------------------------------
$ 1,800,000 Fayetteville, NC, Public Works Commission Revenue Refunding Bonds
Weekly VRDNs (FGIC Insured), R VMIG1 $ 1,800,000
------------------------------------------------------------------
3,500,000 Lee County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Series 1989)/ (Avondale Mills,
Inc.)/(Trust Company Bank LOC) P-1 3,500,000
------------------------------------------------------------------
20,000,000 Martin County, NC, IFA Weekly VRDNs (Series 1993)/ (Weyerhauser,
Inc. Guaranty) A-1 20,000,000
------------------------------------------------------------------
2,180,000 Mecklenberg County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Series 1988)/(Florida Steel
Corp.)/(Bankers Trust
Company LOC) P-1 2,180,000
------------------------------------------------------------------
2,725,000 NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990A)/(Nationsbank of North Carolina N.A. LOC), R P-1 2,725,000
------------------------------------------------------------------
8,250,000 NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990B)/(Nationsbank of North Carolina N.A. LOC), R P-1 8,250,000
------------------------------------------------------------------
3,400,000 North Carolina Eastern Municipal Power Agency, 2.35% CP (Series
1988B)/(Morgan Guaranty Trust Co. and Union Bank of Switzerland
LOCs), Mandatory Tender 5/23/94 A-1+ 3,400,000
------------------------------------------------------------------
3,000,000 North Carolina Eastern Municipal Power Agency, 2.55% CP
(Industrial Bank of Japan Ltd. LOC), Mandatory Tender 5/20/94 A-1+ 3,000,000
------------------------------------------------------------------
2,660,000 North Carolina Eastern Municipal Power Agency, Weekly VRDNs
(P-Floats)/(Series PA-34B)/
(Prerefunded), R VMIG1 2,660,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
------------------------------------------------------------------
$ 1,000,000 North Carolina Medical Care Commission Hospital Revenue Bonds
Weekly VRDNs (Series 1992B)/(North Carolina Baptist Hospital) A-1+ $ 1,000,000
------------------------------------------------------------------
1,600,000 North Carolina Medical Care Commission Hospital Revenue Bonds
Weekly VRDNs (Series 1993)/(Moses H. Cone Memorial Hospital) A-1+ 1,600,000
------------------------------------------------------------------
10,000,000 North Carolina Municipal Power Agency Pound1, 2.30% CP (Catawba
Electric), Mandatory Tender 4/11/94 A-1 10,000,000
------------------------------------------------------------------
9,000,000 North Carolina Municipal Power Agency Pound1, 2.40% CP (Catawba
Electric), Mandatory Tender 4/18/94 A-1 9,000,000
------------------------------------------------------------------
2,000,000 University of North Carolina, 2.30% CP (Series 1989)/ (University
of NC at Chapel Hill Foundation, Inc.)/ (Credit Suisse LOC),
Mandatory Tender 4/19/94 VMIG1 2,000,000
------------------------------------------------------------------
4,300,000 Wake County, NC, Industrial Facilities & Pollution Control
Financing Authority, 2.45% CP (Series 1990A)/ (Carolina Power &
Light Co.)/(Fuji Bank Ltd. LOC), Mandatory Tender 4/26/94 A-1 4,300,000
------------------------------------------------------------------
6,430,000 Wake County, NC, Industrial Facilities & Pollution Control
Financing Authority, 2.75% CP (Series 1990A)/ (Carolina Power &
Light Co.)/(Fuji Bank Ltd. LOC), Mandatory Tender 10/14/94 A-1 6,430,000
------------------------------------------------------------------ ----------------
Total 85,845,000
------------------------------------------------------------------ ----------------
OHIO--1.6%
------------------------------------------------------------------
3,400,000 Cincinnati-Hamilton County, OH, Port Authority Weekly VRDNs (4th
Street Limited Partnership)/(PNC Bank, Kentucky LOC) P-1 3,400,000
------------------------------------------------------------------
900,000 Cuyahoga County, OH, Hospital Authority Weekly VRDNs (Health Hill
Hospital)/(Union Bank of Switzerland LOC) P-1 900,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
OHIO--CONTINUED
------------------------------------------------------------------
$ 4,800,000 Lucas County, OH, HFA Weekly VRDNs (Riverside
Hospital)/(Huntington National Bank LOC) P-1 $ 4,800,000
------------------------------------------------------------------
2,200,000 Mahoning County, OH, HFA Weekly VRDNs (Shepard of the Valley
Lutheran Home & Retirement Center)/ (PNC Bank, Ohio, N.A. LOC) P-1 2,200,000
------------------------------------------------------------------
5,000,000 Mansfield City School District, OH, 2.60% TANs,
6/24/94 NR(3) 5,000,000
------------------------------------------------------------------
2,100,000 Montgomery County, OH, IDR Weekly VRDNs (Bethesda Two Ltd.
Partnership)/(Huntington National Bank LOC) P-1 2,100,000
------------------------------------------------------------------
600,000 Oakwood Village, OH, IDR Weekly VRDNs (Oak Leaf
Industries)/(Society Bank, Cleveland LOC) P-1 600,000
------------------------------------------------------------------
3,800,000 Ohio State Air Quality Development Authority Weekly VRDNs (Series
1998A)/(PPG Industries, Inc. Guaranty) P-1 3,800,000
------------------------------------------------------------------
3,000,000 Ohio State Public Facilities Weekly VRDNs (AMBAC Insured) VMIG1 3,000,000
------------------------------------------------------------------
1,500,000 Scioto County, OH, Hospital Authority Weekly VRDNs (AMBAC Insured) A-1 1,500,000
------------------------------------------------------------------ ----------------
Total 27,300,000
------------------------------------------------------------------ ----------------
OKLAHOMA--0.1%
------------------------------------------------------------------
2,295,000 Claremore, OK, IDA Weekly VRDNs (Baldor Electric Co.)/(First
National Bank, Atlanta LOC) P-1 2,295,000
------------------------------------------------------------------ ----------------
PENNSYLVANIA--7.5%
------------------------------------------------------------------
2,100,000 Allegheny County, PA, ACES Weekly VRDNs (Series 1988A)/(PNC Bank
N.A. LOC) VMIG1 2,100,000
------------------------------------------------------------------
1,930,000 Allegheny County, PA, Higher Education Weekly VRDNs (Series
1985D)/(University of Pittsburgh)/(Fuji Bank Ltd. LOC) VMIG1 1,930,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
------------------------------------------------------------------
$ 4,780,000 Allegheny County, PA, IDA Weekly VRDNs (Eye & Ear Hospital)/(PNC
Bank N.A. LOC) P-1 $ 4,780,000
------------------------------------------------------------------
1,600,000 Allegheny County, PA, IDA, 2.75% CP (USX, Inc.)/ (Long-Term Credit
Bank of Japan Ltd. LOC), Mandatory Tender 4/27/94 A-2 1,600,000
------------------------------------------------------------------
9,900,000 Allegheny County, PA, IDA, 3.20% CP (USX, Inc.)/ (Long-Term Credit
Bank of Japan Ltd. LOC), Mandatory Tender 5/16/94 A-2 9,900,000
------------------------------------------------------------------
5,000,000 Allegheny County, PA, IDA, 3.20% CP (USX, Inc.)/ (Long-Term Credit
Bank of Japan Ltd. LOC), Mandatory Tender 5/16/94 A-2 5,000,000
------------------------------------------------------------------
5,000,000 Authority for Improvements in Municipalities, PA, Weekly VRDNs
(Pooled Hospital & Equipment Leasing Program)/(MBIA
Insured)/(Swiss Bank Corp. LIQ) VMIG1 5,000,000
------------------------------------------------------------------
9,000,000 Commonwealth of Pennsylvania, 3.25% TANs, 6/30/94 SP-1+ 9,011,957
------------------------------------------------------------------
1,000,000 Dauphin County, PA, General Authority Hospital Revenue Bonds
Weekly VRDNs (Jamison Memorial Hospital)/(Toronto-Dominion Bank
LOC) A-1+ 1,000,000
------------------------------------------------------------------
3,200,000 Erie County, PA, Hospital Authority Weekly VRDNs (St.
Mary's)/(Marine Bank LOC) A-1 3,200,000
------------------------------------------------------------------
3,100,000 Erie County, PA, Hospital Authority Weekly VRDNs (St. Vincent
Health System)/(Fuji Bank Ltd. LOC) A-1 3,100,000
------------------------------------------------------------------
4,170,000 Montgomery County, PA, Higher Education and Health Authority
Weekly VRDNs (Bryn Mawr Hospital)/(PNC Bank N.A. LOC) A-1 4,170,000
------------------------------------------------------------------
2,000,000 Montgomery County, PA, IDA Weekly VRDNs (Plymouth Woods)/(PNC Bank
N.A. LOC) P-1 2,000,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
------------------------------------------------------------------
$ 7,130,000 Montgomery County, PA, IDA Weekly VRDNs Commercial Development
Revenue Bonds (Series 1992)/ (Hickory Pointe)/(Fidelity Bank LOC) P-1 $ 7,130,000
------------------------------------------------------------------
2,550,000 Moon Township, PA, IDA Weekly VRDNs (Airport Hotel
Associates)/(Algemene Bank Nederland LOC) A-1+ 2,550,000
------------------------------------------------------------------
3,025,000 Penncrest School District, PA, 2.77% TRANs, 6/30/94 NR(3) 3,025,501
------------------------------------------------------------------
6,250,000 Philadelphia, PA, 2.50% GO CP (Series 1990)/(Fuji Bank Ltd. LOC),
Mandatory Tender 5/26/94 A-1 6,250,000
------------------------------------------------------------------
5,060,000 Philadelphia, PA, 2.60% GO CP (Series 1990)/(Fuji Bank Ltd. LOC),
Mandatory Tender 7/20/94 A-1 5,060,000
------------------------------------------------------------------
25,000,000 Philadelphia, PA, 3.25% TANs (Series A)/(Canadian Imperial Bank of
Commerce LOC), 6/15/94 A-1+ 25,025,000
------------------------------------------------------------------
6,110,000 Philadelphia, PA, HEFA Weekly VRDNs (Pennsylvania Hospital)/(PNC
Bank N.A. LOC) VMIG1 6,110,000
------------------------------------------------------------------
6,700,000 Philadelphia, PA, HEFA, 2.70% Annual TOBs (Pennsylvania
Hospital)/(PNC Bank N.A. LOC), Optional Tender 7/1/94 A-1 6,700,000
------------------------------------------------------------------
4,000,000 Port Authority of Allegheny County, PA, 2.90% Grant Anticipation
Notes (Series 1993A)/(PNC Bank N.A. LOC), 8/1/94 P-1 4,000,000
------------------------------------------------------------------
2,600,000 Quakertown, PA, HDA Weekly VRDNs (Hapsco Group)/(First National
Bank, Chicago LOC) VMIG1 2,600,000
------------------------------------------------------------------
1,340,000 Saucon Valley School District, PA, 2.75% TRANs,
6/30/94 NR(3) 1,340,000
------------------------------------------------------------------
4,637,263 Upper Darby School District, PA, 2.74% TRANs, 6/30/94 NR(3) 4,637,699
------------------------------------------------------------------
1,300,000 York Suburban School District, PA, 2.70% TRANs,
6/30/94 NR(3) 1,300,000
------------------------------------------------------------------ ----------------
Total 128,520,157
------------------------------------------------------------------ ----------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
PUERTO RICO--0.6%
------------------------------------------------------------------
$ 11,100,000 Government Development Bank of Puerto Rico Weekly VRDNs (Credit
Suisse and Sumitomo Bank Ltd. LOCs) A-1 $ 11,100,000
------------------------------------------------------------------ ----------------
RHODE ISLAND--1.2%
------------------------------------------------------------------
21,000,000 Pawtucket, RI, 2.50% GO BANs, 4/25/94 NR(3) 21,000,672
------------------------------------------------------------------ ----------------
SOUTH CAROLINA--0.7%
------------------------------------------------------------------
7,000,000 Dorchester County, SC, PCR Weekly VRDNs (Series 1993)/(The BOC
Group, Inc.)/(Wachovia Bank of
Georgia NA LOC) P-1 7,000,000
------------------------------------------------------------------
5,225,000 Greenville County, SC, Hospital Authority Weekly VRDNs (Series
1989)/(Charter Hospital St. Louis, Inc.)/ (Sumitomo Bank Ltd. LOC) VMIG1 5,225,000
------------------------------------------------------------------ ----------------
Total 12,225,000
------------------------------------------------------------------ ----------------
SOUTH DAKOTA--0.3%
------------------------------------------------------------------
940,000 Mitchell, SD, IDR Weekly VRDNs (Holiday Inn)/(First Bank N.A. LOC) P-1 940,000
------------------------------------------------------------------
1,720,000 Rapid City, SD, Weekly VRDNs (Gillette Dairy Black Hills,
Inc.)/(Mitsubishi Bank Ltd. LOC) P-1 1,720,000
------------------------------------------------------------------
1,880,000 Watertown, SD, Weekly VRDNs (Series 1991)/(Tescom Corp.)/(Norwest
Bank LOC) P-1 1,880,000
------------------------------------------------------------------ ----------------
Total 4,540,000
------------------------------------------------------------------ ----------------
TENNESSEE--2.2%
------------------------------------------------------------------
20,000,000 Chattanooga, TN, HEFA Weekly VRDNs (McCallie School)/(Trust
Company Bank LOC) A-1+ 20,000,000
------------------------------------------------------------------
5,600,000 Chattanooga-Hamilton County, TN, Hospital Authority Daily VRDNs
(Erlanger Medical Center Guaranty) A-1 5,600,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
TENNESSEE--CONTINUED
------------------------------------------------------------------
$ 6,969,000 Cumberland County, TN, IDB Weekly VRDNs (Series 1989)/(Crossville
Ceramics Co.)/(American National Bank LOC) A-1+ $ 6,969,000
------------------------------------------------------------------
4,300,000 Jackson County, TN, IDB Daily VRDNs (Series B)/ (Esselte
Co.)/(Morgan Guaranty Trust Co. LOC) A-1+ 4,300,000
------------------------------------------------------------------
1,480,000 Jackson, TN, IDB, PCR Weekly VRDNs (Series 1988)/ (Florida Steel
Corp.)/(Bankers Trust Co. LOC) P-1 1,480,000
------------------------------------------------------------------ ----------------
Total 38,349,000
------------------------------------------------------------------ ----------------
TEXAS--6.4%
------------------------------------------------------------------
900,000 Corpus Christi, TX, IDC Weekly VRDNs (W.W. Granger, Inc, Guaranty) P-1 900,000
------------------------------------------------------------------
5,000,000 Dallas County, TX, 2.70% Annual TOBs (Series C), Optional Tender
6/15/94 A-1+ 5,000,000
------------------------------------------------------------------
6,000,000 Gulf Coast, TX, IDA Weekly VRDNs (Baytank, Inc.)/ (Morgan Guaranty
Trust Co. LOC) P-1 6,000,000
------------------------------------------------------------------
3,375,000 Harris County, TX, Cultural Education Facilities Finance
Corporation Weekly VRDNs (Houston Museum of Natural Science)/(Bank
One, Texas N.A. LOC) P-1 3,375,000
------------------------------------------------------------------
4,500,000 Harris County, TX, HFDC Daily VRDNs (Series 1992A)/ (St. Luke's
Episcopal Hospital Guaranty) A-1+ 4,500,000
------------------------------------------------------------------
955,000 Harris County, TX, IDC Weekly VRDNs (W.W. Grainger, Inc. Guaranty) P-1 955,000
------------------------------------------------------------------
3,800,000 Houston, TX, Certificates of Obligation Weekly VRDNs (Series
1993A)/(Morgan Guaranty Trust Co. BPA) A-1+ 3,800,000
------------------------------------------------------------------
3,230,000 Liberty County, TX, IDA Weekly VRDNs (Insteel Industries,
Inc.)/(First Union Bank LOC) P-1 3,230,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
TEXAS--CONTINUED
------------------------------------------------------------------
$ 2,000,000 Montgomery County, TX, IDC Weekly VRDNs IDRB (Houston Area
Research Center)/(Morgan Guaranty Trust Co. LOC) A-1+ $ 2,000,000
------------------------------------------------------------------
1,980,000 North Richland Hills, TX, IDC Weekly VRDNs (Technol,
Inc.)/(NationsBank of North Carolina N.A. LOC) P-1 1,980,000
------------------------------------------------------------------
3,800,000 Tarrant County, TX, HFDC Daily VRDNs (Cumberland Rest,
Inc.)/(Banque Paribas LOC) A-1 3,800,000
------------------------------------------------------------------
63,000,000 Texas State, 3.25% TRANs (Series 1993), 8/31/94 SP-1+ 63,196,599
------------------------------------------------------------------
4,500,000 Texas State, Public Finance Authority Weekly VRDNs
(P-Floats)/(Series 1992C) VMIG1 4,500,000
------------------------------------------------------------------
7,100,000 Texas Water Development Board Daily VRDNs
(Series A)/(Capital Asset Program)/(Canadian Imperial
Bank of Commerce LOC) A-1+ 7,100,000
------------------------------------------------------------------ ----------------
Total 110,336,599
------------------------------------------------------------------ ----------------
UTAH -- 1.3%
------------------------------------------------------------------
15,000,000 Intermountain Power Agency, UT, 2.70% Semi-Annual TOBs (Series E),
Optional Tender 6/15/94 A-1 15,000,000
------------------------------------------------------------------
3,000,000 Intermountain Power Agency, UT, 3.00% Semi-Annual TOBs, Optional
Tender 9/15/94 A-1 3,000,000
------------------------------------------------------------------
4,200,000 Salt Lake County, UT, Multi-Family Housing Revenue Refunding Bonds
Weekly VRDNs (Series 1992)/(Santa Fe Apartments)/(First Security
Bank of Utah N.A. LOC) VMIG1 4,200,000
------------------------------------------------------------------ ----------------
Total 22,200,000
------------------------------------------------------------------ ----------------
VIRGINIA--3.5%
------------------------------------------------------------------
5,552,000 Alexandria, VA, IDA Weekly VRDNs (American Red Cross)/(Sanwa Bank
Ltd. LOC) P-1 5,552,000
------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
VIRGINIA--CONTINUED
------------------------------------------------------------------
$ 10,000,000 Arlington County, VA, Weekly VRDNs (Ballston Public
Parking)/(Citibank N.A. LOC) A-1 $ 10,000,000
------------------------------------------------------------------
6,000,000 Chesterfield, VA, IDA, 2.60% CP (Virginia Electric Power Company),
Mandatory Tender 5/17/94 A-1 6,000,000
------------------------------------------------------------------
3,620,000 Hampton, VA, Redevelopment & Housing Authority Commercial
Development Rehabilitation Weekly VRDNs (Series 1984)/(NationsBank
of Virginia N.A. LOC) P-1 3,620,000
------------------------------------------------------------------
4,000,000 Louisa, VA, IDA, 2.50% CP (Series 1984)/(Virginia Electric Power
Co.), Mandatory Tender 4/21/94 A-1 4,000,000
------------------------------------------------------------------
8,600,000 Richmond, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1989)/(Belmont Apartments)/ (NationsBank of North Carolina
N.A. LOC) P-1 8,600,000
------------------------------------------------------------------
3,860,000 Roanoke County, VA, Water System Revenue Weekly VRDNs
(P-Floats)/(FGIC Insured), R A-1+ 3,860,000
------------------------------------------------------------------
2,875,000 Suffolk, VA, Redevelopment and Housing Authority Weekly VRDNs
(Terry/Peterson Development Corp.)/ (NationsBank of Virginia N.A.
LOC) P-1 2,875,000
------------------------------------------------------------------
3,000,000 Virginia HDA Commonwealth Mortgage Bonds, 2.95% Multi-Modal TOBs
(Series 1992C), Mandatory Tender 5/12/94 A-1+ 3,000,000
------------------------------------------------------------------
6,900,000 Virginia Housing Development Authority Weekly VRDNs (Series
1987A)/(AHC Service Corp.)/(Mitsubishi Bank Ltd. LOC) P-1 6,900,000
------------------------------------------------------------------
6,000,000 Virginia Peninsula Port Authority, Facility Revenue Refunding
Bonds, 2.35% CP (Series 1992)/(CSX Transportation, Inc.)/(Bank of
Nova Scotia LOC), Mandatory Tender 4/12/94 VMIG1 6,000,000
------------------------------------------------------------------ ----------------
Total 60,407,000
------------------------------------------------------------------ ----------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
WASHINGTON--0.9%
------------------------------------------------------------------
$ 2,850,000 Washington State, GO Bonds Weekly VRDNs
(P-Floats)/(Series P-12A) VMIG1 $ 2,850,000
------------------------------------------------------------------
11,750,000 Washington State, Weekly VRDNs (Series 1994A) A-1 11,750,000
------------------------------------------------------------------ ----------------
Total 14,600,000
------------------------------------------------------------------ ----------------
WEST VIRGINIA-- 1.0%
------------------------------------------------------------------
13,500,000 Marshall County, WV, PCR Weekly VRDNs (Series 1992)/(PPG
Industries Guaranty) A-1 13,500,000
------------------------------------------------------------------
3,000,000 Raleigh County, WV, Health Care System Weekly VRDNs (Series
1991)/(Appalachian Regional Healthcare, Inc.)/(Societe Generale
LOC) VMIG1 3,000,000
------------------------------------------------------------------ ----------------
Total 16,500,000
------------------------------------------------------------------ ----------------
WISCONSIN--2.2%
------------------------------------------------------------------
2,000,000 Green Bay, WI, IDRB, Weekly VRDNs (Series 1985)/(St. Mary's
Holdings, Inc.)/(Mellon Bank N.A. LOC) P-1 2,000,000
------------------------------------------------------------------
1,140,000 Spooner, WI, Weekly VRDNs (Series 1994)/(Nash-Finch
Company)/(First Bank N.A. Minneapolis LOC) P-1 1,140,000
------------------------------------------------------------------
34,000,000 Wisconsin HEFA Weekly VRDNs (St. Luke's Medical Center)/(Sumitomo
Bank Ltd. LOC) VMIG1 34,000,000
------------------------------------------------------------------ ----------------
Total 37,140,000
------------------------------------------------------------------ ----------------
WYOMING--0.2%
------------------------------------------------------------------
1,300,000 Gillette, WY, PCR, 2.65% CP (Pacificorp, Inc.)/ (Deutsche Bank AG
LOC), Mandatory Tender 5/18/94 A-1+ 1,300,000
------------------------------------------------------------------
1,830,000 Sweetwater County, WY, IDA Weekly VRDNs (FMC Corp.)/(Wachovia Bank
& Trust Co. LOC) A-1+ 1,830,000
------------------------------------------------------------------ ----------------
Total 3,130,000
------------------------------------------------------------------ ----------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
MOODY'S,
PRINCIPAL OR S&P*
AMOUNT (NOTE 5) VALUE
<C> <S> <C> <C>
- - ------------- ------------------------------------------------------------------ ------------ ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- - ---------------------------------------------------------------------------------
OTHER--3.2%
------------------------------------------------------------------
$ 15,000,000 Clipper Tax Exempt Trust, Weekly VRDNs (Series 1993-1), R A-1+ $ 15,000,000
------------------------------------------------------------------
14,773,914 LaSalle National Bank Bustops Trust Weekly VRDNs (Series
1993A)/(LaSalle National Bank BPA), R A-1+ 14,773,914
------------------------------------------------------------------
24,750,000 Tax-Exempt Weekly VRDCs Trust (Series 1993A), R A-1+ 24,750,000
------------------------------------------------------------------ ----------------
Total 54,523,914
------------------------------------------------------------------ ----------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $ 1,694,766,793
------------------------------------------------------------------ ----------------
</TABLE>
Also represents cost for federal tax purposes.
*Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
The following abbreviations are used in this portfolio:
ACES--Adjustable Convertible Extendable Securities
AMBAC--American Municipal Bond Assurance Corporation
BANs--Bond Anticipation Notes
BPA--Bond Purchase Agreement
COPs--Certificates of Participation
CP--Commercial Paper
EDA--Economic Development Authority
EDRB--Economic Development Revenue Bonds
FGIC--Financial Guaranty Insurance Company
FSA--Financial Security Assurance
GO--Government Obligation
HDA--Hospital Development Authority
HEFA--Health and Education Facilities Authority
HFA--Housing Finance Authority/Agency
HFDC--Health Facility Development Corporation
IDA--Industrial Development Authority
IDB--Industrial Development Bond
IDC--Industrial Development Corporation
IDR--Industrial Development Revenue
IDRB--Industrial Development Revenue Bonds
IFA--Industrial Finance Authority/Agency
LIQ--Liquidity Agreement
LOC--Letter of Credit
LOCs--Letters of Credit
MBIA--Municipal Bond Investors Assurance
NRUCFC--National Rural Utilities Cooperative Finance Corporation
PCR--Pollution Control Revenue
PFA--Public Facility Authority
RANs--Revenue Anticipation Notes
R--Denotes restricted securities which are subject to restrictions on resale
under Federal securities laws. These securities are considered liquid under
criteria established by the Board of Trustees.
SFM--Single Family Mortgage
TANs--Tax Anticipation Notes
TOBs--Tender Option Bonds
TRANs--Tax and Revenue Anticipation Notes
UT--Utah/Unlimited Tax
VA--Virginia/Veterans Administration
VRDCs--Variable Rate Demand Certificates
VRDNs--Variable Rate Demand Notes
VRTCs--Variable Rate Trust Certificates
Note: The categories of investments are shown as a percentage of net assets
($1,717,959,203) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Assets and Liabilities
- - --------------------------------------------------------------------------------
March 31, 1994
<TABLE>
<S> <C> <C>
ASSETS:
- - ------------------------------------------------------------------------------------------------
Investments, at amortized cost and value (Note 2A) $ 1,694,766,793
- - ------------------------------------------------------------------------------------------------
Cash 3,814,075
- - ------------------------------------------------------------------------------------------------
Receivable for Trust shares sold 12,503,550
- - ------------------------------------------------------------------------------------------------
Interest receivable 12,124,910
- - ------------------------------------------------------------------------------------------------ ----------------
Total assets $ 1,723,209,328
- - ------------------------------------------------------------------------------------------------
LIABILITIES:
- - ------------------------------------------------------------------------------------------------
Payable for Trust shares redeemed $ 3,392,442
- - ----------------------------------------------------------------------------------
Dividends payable 965,677
- - ----------------------------------------------------------------------------------
Accrued expenses and other liabilities 892,006
- - ---------------------------------------------------------------------------------- ------------
Total liabilities 5,250,125
- - ------------------------------------------------------------------------------------------------ ----------------
NET ASSETS for 1,717,969,745 shares outstanding $ 1,717,959,203
- - ------------------------------------------------------------------------------------------------ ----------------
NET ASSETS CONSIST OF:
- - ------------------------------------------------------------------------------------------------
Paid-in-capital $ 1,717,969,745
- - ------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (10,542)
- - ------------------------------------------------------------------------------------------------ ----------------
Total $ 1,717,959,203
- - ------------------------------------------------------------------------------------------------ ----------------
NET ASSET VALUE, and Offering Price Per Share:
INVESTMENT SHARES ($1,327,506,355 / 1,327,513,402 shares outstanding) $1.00
- - ------------------------------------------------------------------------------------------------ ----------------
INSTITUTIONAL SERVICE SHARES ($390,452,848 / 390,456,343 shares outstanding) $1.00
- - ------------------------------------------------------------------------------------------------ ----------------
COMPUTATION OF PROCEEDS ON REDEMPTION:
- - ------------------------------------------------------------------------------------------------
Investment Shares (99.5/100 of $1.00)* $0.995
- - ------------------------------------------------------------------------------------------------ ----------------
Institutional Service Shares $1.00
- - ------------------------------------------------------------------------------------------------ ----------------
</TABLE>
*Under certain limited conditions, a contingent deferred sales charge of .50 of
1% was imposed. See "Contingent Deferred Sales Charge" in the prospectus.
(See Notes to which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Operations
- - --------------------------------------------------------------------------------
Year Ended March 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- - --------------------------------------------------------------------------------------------------
Interest income (Note 2B) $ 42,909,635
- - --------------------------------------------------------------------------------------------------
Expenses--
- - --------------------------------------------------------------------------------------------------
Investment advisory fee (Note 4) $ 8,264,650
- - -----------------------------------------------------------------------------------
Trustees' fees 24,834
- - -----------------------------------------------------------------------------------
Administrative personnel and services fee (Note 4) 954,364
- - -----------------------------------------------------------------------------------
Custodian, and recordkeeping fees and expenses 286,628
- - -----------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses (Note 4) 1,430,965
- - -----------------------------------------------------------------------------------
Trust share registration costs 101,998
- - -----------------------------------------------------------------------------------
Auditing fees 24,595
- - -----------------------------------------------------------------------------------
Legal fees 29,622
- - -----------------------------------------------------------------------------------
Printing and postage 209,254
- - -----------------------------------------------------------------------------------
Insurance premiums 31,210
- - -----------------------------------------------------------------------------------
Taxes 12,456
- - -----------------------------------------------------------------------------------
Shareholder Service Fee--Investment Shares (Note 4) 847,950
- - -----------------------------------------------------------------------------------
Shareholder Service Fee--Institutional Service Shares (Note 4) 16,890
- - -----------------------------------------------------------------------------------
Miscellaneous 14,152
- - ----------------------------------------------------------------------------------- -------------
Total expenses 12,249,568
- - -----------------------------------------------------------------------------------
Deduct--
- - -----------------------------------------------------------------------------------
Waiver of investment advisory fee (Note 4) (2,322,865)
- - ----------------------------------------------------------------------------------- -------------
Net expenses 9,926,703
- - -------------------------------------------------------------------------------------------------- -------------
Net investment income 32,982,932
- - -------------------------------------------------------------------------------------------------- -------------
Net realized gain (loss) on investments (identified cost basis) 46,371
- - -------------------------------------------------------------------------------------------------- -------------
Change in net assets resulting from operations $ 33,029,303
- - -------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Changes in Net Assets
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1994 1993
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- - ----------------------------------------------------------------------------
OPERATIONS--
- - ----------------------------------------------------------------------------
Net investment income $ 32,982,932 $ 36,295,258
- - ----------------------------------------------------------------------------
Net realized gain (loss) on investments--identified cost basis 46,371 (39,092)
- - ---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from operations 33,029,303 36,256,166
- - ---------------------------------------------------------------------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2B)--
- - ----------------------------------------------------------------------------
Dividends to shareholders from net investment income (32,982,932) (36,295,258)
- - ---------------------------------------------------------------------------- ----------------- -----------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)--
- - ----------------------------------------------------------------------------
Proceeds from sales of shares 7,678,250,694 6,090,199,800
- - ----------------------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 24,797,388 24,817,938
- - ----------------------------------------------------------------------------
Cost of shares redeemed (7,604,666,616) (5,936,417,592)
- - ---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets from Trust share transactions 98,381,466 178,600,146
- - ---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets 98,427,837 178,561,054
- - ----------------------------------------------------------------------------
NET ASSETS:
- - ----------------------------------------------------------------------------
Beginning of period 1,619,531,366 1,440,970,312
- - ---------------------------------------------------------------------------- ----------------- -----------------
End of period $ 1,717,959,203 $ 1,619,531,366
- - ---------------------------------------------------------------------------- ----------------- -----------------
(See Notes which are an integral part of the Financial Statements)
</TABLE>
Tax-Free Instruments Trust
Financial Highlights--Investment Shares
- - --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985*
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- - ----------------
INCOME FROM
INVESTMENT
OPERATIONS
- - ----------------
Net investment
income 0.02 0.02 0.04 0.05 0.06 0.05 0.04 0.04 0.05 0.02
- - ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
LESS
DISTRIBUTIONS
- - ----------------
Dividends to
shareholders
from net
investment
income (0.02) (0.02) (0.04) (0.05) (0.06) (0.05) (0.04) (0.04) (0.05) (0.02)
- - ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- - ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN** 2.01% 2.42% 3.84% 5.40% 5.88% 5.28% 4.29% 3.84% 4.79% 1.28%
- - ----------------
RATIOS TO
AVERAGE NET
ASSETS
- - ----------------
Expenses 0.61% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%(a)
- - ----------------
Net investment
income 2.00% 2.38% 3.73% 5.25% 5.73% 5.14% 4.19% 3.74% 4.70% 5.23%(a)
- - ----------------
Expense waiver/
reimbursement
(b) 0.14% 0.10% 0.11% 0.12% 0.11% 0.08% 0.06% 0.06% 0.07% 0.08%(a)
- - ----------------
SUPPLEMENTAL
DATA
- - ----------------
Net assets, end
of period (000
omitted) 1,327,506 $1,619,531 $1,440,970 $1,214,045 $1,142,022 $1,313,391 $1,552,460 $1,661,086 $1,225,138 $1,046,591
- - ----------------
<CAPTION>
YEAR ENDED
1984
<S> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD $ 1.00
- - ----------------
INCOME FROM
INVESTMENT
OPERATIONS
- - ----------------
Net investment
income 0.05
- - ---------------- ---------------
LESS
DISTRIBUTIONS
- - ----------------
Dividends to
shareholders
from net
investment
income (0.05)
- - ---------------- ---------------
NET ASSET VALUE,
END OF PERIOD $ 1.00
- - ---------------- ---------------
TOTAL RETURN** 5.64%
- - ----------------
RATIOS TO
AVERAGE NET
ASSETS
- - ----------------
Expenses 0.54%
- - ----------------
Net investment
income 5.56%
- - ----------------
Expense waiver/
reimbursement
(b) 0.13%
- - ----------------
SUPPLEMENTAL
DATA
- - ----------------
Net assets, end
of period (000
omitted) $666,913
- - ----------------
</TABLE>
* For the four month period ended March 31, 1985. The Trust changed its
fiscal-year end from November 30 to March 31, effective March 31, 1985.
** 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.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 4).
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Financial Highlights--Institutional Service Shares
- - --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
MARCH 31, 1994*
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- - ---------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- - ---------------------------------------------------------------------------------------------
Net investment income 0.01
- - --------------------------------------------------------------------------------------------- ---------------------
LESS DISTRIBUTIONS
- - ---------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.01)
- - --------------------------------------------------------------------------------------------- ---------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
- - --------------------------------------------------------------------------------------------- ---------------------
TOTAL RETURN** 0.92%
- - ---------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- - ---------------------------------------------------------------------------------------------
Expenses 0.55%(a)
- - ---------------------------------------------------------------------------------------------
Net investment income 1.99%(a)
- - ---------------------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.14%(a)
- - ---------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- - ---------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted)
$390,453
- - ---------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 15, 1993 (date of initial
public offering) to March 31, 1994.
** 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.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 4).
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Notes to Financial Statements
- - --------------------------------------------------------------------------------
March 31, 1994
(1) ORGANIZATION
Tax-Free Instruments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. The Trust provides two classes of shares, Investment 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
("GAAP").
A. INVESTMENT VALUATIONS--The Trust's use of the amortized cost method to
value its portfolio securities is in accordance with Rule 2a-7 under the
Investment Company Act of 1940.
B. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount are amortized as required by
the Internal Revenue Code ("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. Additionally, net
capital losses of $14,589 attributable to security transactions incurred
after October 31, 1993, are treated as arising on April 1, 1994 the first
day of the Trust's next taxable year.
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities 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. RESTRICTED SECURITIES--Restricted securities are securities that may only
be resold upon registration under Federal securities laws or in
transactions exempt from such registration. Many restricted securities may
be resold in the secondary market in transactions exempt from registration.
In some cases, the restricted securities may be resold without registration
upon exercise of a demand feature. Such restricted securities may be
determined to be liquid under criteria established by the Board of
Trustees. The Trust will not incur any registration costs upon such
resales. Restricted securities are valued at amortized cost in accordance
with Rule 2A-7 under the Investment Company Act of 1940. Additional
information on each restricted security held at March 31, 1994 is as
follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
<S> <C> <C>
Oakland, CA Redevelopment Agency 4/19/89-9/10/92 $ 5,100,000
Connecticut State Quarterly Tender Option Certificate 11/5/93 7,000,000
Delaware Health Facilities 8/24/93 25,194,000
Floating Rate Trust Certificate 8/12/92 20,250,000
Florida State Department of Environmental Protection 3/2/94 10,000,000
Georgia Municipal Association Pooled Loan Program 1/5/94 10,116,487
Maryland State Department of Transportation 3/16/94 13,500,000
Maryland State, GO Bonds 11/26/93 4,020,000
Washington Suburban Sanitary District 12/2/93-3/9/94 27,580,000
New Jersey Transportation Trust Fund Agency 5/12/93 10,000,000
Passaic Valley, NJ, Water Commission 12/30/93 2,220,000
Fayetteville, NC Public Works Commission 12/30/93-1/28/94 1,800,000
NCNB Pooled Tax-Exempt Trust 1/3/92 2,725,000
NCNB Pooled Tax-Exempt Trust 12/4/90 8,250,000
North Carolina Eastern Municipal Power Agency 11/22/93 2,660,000
Roanoke County, VA, Water System 11/16/93 3,860,000
Clipper Tax Exempt Trust 9/27/93 15,000,000
LaSalle National Bank Bustops Trust 3/17/93 14,773,913
Tax-Exempt Weekly VRDCs Trust 2/19/93 24,750,000
</TABLE>
F. 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 MARCH 31,
INVESTMENT SHARES 1994 1993
- - ------------------------------------------------------------------------------ ---------------- ----------------
<S> <C> <C>
Shares sold 6,721,614,467 6,090,199,800
- - ------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 24,173,179 24,817,938
- - ------------------------------------------------------------------------------
Shares redeemed (7,037,862,523) (5,936,417,592)
- - ------------------------------------------------------------------------------ ---------------- ----------------
Change in net assets resulting from Fund share transactions (292,074,877) 178,600,146
- - ------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
INSTITUTIONAL SERVICE SHARES 1994*
<S> <C>
Shares sold 956,636,227
- - -------------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 624,209
- - -------------------------------------------------------------------------------------
Shares redeemed (566,804,093)
- - ------------------------------------------------------------------------------------- ---------------------------
Change in net assets resulting from Fund share transactions 390,456,343
- - ------------------------------------------------------------------------------------- ---------------------------
</TABLE>
*For the period from October 15, 1993 (date of initial public offering) to March
31, 1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE--Federated Management, the Trust's investment adviser ("Adviser")
receives for its services an annual investment advisory fee equal to .50 of 1%
of the Trust's average daily net assets. Adviser may voluntary choose to waive a
portion of its fee. Adviser can modify or terminate this voluntary waiver at any
time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust
administrative personnel and services. Prior to March 1, 1994, these services
were provided at approximate cost. Effective March 1, 1994, the 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 any fiscal year shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
INTERFUND TRANSACTIONS--During the fiscal year ended March 31, 1994, the Trust
engaged in purchase and sale transactions with other funds advised by Adviser
pursuant to Rule 17a-7 of the Investment Company Act of 1940 amounting to
$1,579,485,000 and $1,700,060,000, respectively. These purchases and sales were
conducted on an arms-length basis and transacted for cash consideration only, at
independent current market prices and without brokerage commissions, fees or
other remuneration.
SHAREHOLDER SERVICE PLAN--Under the terms of a shareholder service agreement
with Federated Shareholder Services ("FSS"), the Trust will pay FSS up to 0.25
of 1% of average net assets of the Trust for the period. This fee is to obtain
certain personal services for shareholders and the maintenance of shareholder
accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT--Federated Services Company serves as
transfer agent and dividend disbursing agent for the Trust. The fee is based on
the size, type, and number of accounts and transactions made by shareholders.
Certain of the Officers and Trustees of the Trust are Officers and Trustees of
the above companies.
(5) CURRENT CREDIT RATINGS
Current credit ratings are unaudited.
Report of Independent Public Accountants
- - --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
TAX-FREE INSTRUMENTS TRUST
We have audited the accompanying statement of assets and liabilities of Tax-Free
Instruments Trust (a Massachusetts business trust), including the schedule of
portfolio of investments, as of March 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and diclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1994, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Instruments Trust as of March 31, 1994, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN & CO.
Pittsburgh, Pennsylvania
May 13, 1994
Trustees Officers
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Glen R. Johnson
James E. Dowd President
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
Wesley W. Posvar Edward C. Gonzales
Marjorie P. Smuts Vice President and Treasurer
John W. McGonigle
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
Charles H. Field
Assistant Secretary
</TABLE>
Mutual funds are not obligations of or insured by any bank nor are they insured
by the federal government or any of its agencies.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Trust's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
[LOGO] TAX-FREE
INSTRUMENTS
TRUST
11TH ANNUAL REPORT
MARCH 31, 1994
ESTABLISHED 1981
[LOGO] FEDERATED SECURITIES CORP.
--------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
