[LOGO] FEDERATED
TAX-FREE
INSTRUMENTS
TRUST
12th SEMI-ANNUAL REPORT
September 30, 1994
Established 1981
PRESIDENT'S MESSAGE
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Tax-Free
Instruments Trust (the "Trust") for the six-month period ended September 30,
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. The Trust's Portfolio of
Investments and Financial Statements follow the interview. In addition,
Financial Highlights tables have been included for Investment Shares and
Institutional Service Shares.
In today's high-tax environment, the Trust offers a convenient way to keep more
of what you earn by pursuing money market income that is free from Federal
regular income tax.* In addition, the Trust offers stability of principal**
with daily access to your money.
At the end of the report period, the Trust's net assets were $1.6 billion, and
dividends paid to shareholders during the report period totaled $18.9 million.
The portfolio continues to be highly diversified among short-term municipal
securities from 35 states and Puerto Rico.
Thank you for your participation in Tax-Free Instruments Trust. We will continue
to keep you up to date on your investment, and we welcome your comments and
suggestions.
Sincerely,
Glen R. Johnson
President
November 15, 1994
* Income may be subject to the federal alternative minimum tax and state and
local taxes.
** No money market mutual fund can guarantee that a stable net asset value will
be maintained. An investment in the Trust is neither insured nor guaranteed
by the U.S. government.
INVESTMENT REVIEW
Q Recently, there has been a lot of concern, as well as news coverage, about
the subject of derivatives. What are derivatives?
A The term "derivative" has been applied to many different types of
investments. In the context of money market funds, derivatives generally refer
to adjustable rate securities designed to speculate on changes in interest
rates. These speculative derivatives provide above-market yields when interest
rates fall or remain stable, or when the yield curve is steep. They provide
below-market yields, however, when interest rates rise or become more volatile,
or when the yield curve flattens. All three of these conditions occurred in
1994. As a result, many of these speculative securities lost a significant part
of their value, enough to threaten the $1.00 per share price of some money
market funds.
It is important to distinguish these speculative derivatives from adjustable
rate securities that are indexed to money market interest rates. These indexed
securities are designed to track changes in market rates, and should
approximate their par value in all reasonably foreseeable market conditions. In
tax-exempt money market funds like the Trust, the fund normally has the right
to tender these securities for purchase at their par value. Money market funds
have used these securities for decades, through several interest rate cycles,
without jeopardizing their stable net asset value.
Q Do Federated Investors' money market funds invest in the derivatives that
have been in the headlines recently?
A No. None of Federated Investors' money market funds has invested in any of
the types of derivatives that have been in the headlines lately. Our mutual
funds only invest in adjustable rate securities that track changes in money
market interest rates.
With respect to speculative derivatives, we determined from the outset that the
potential volatility of these securities was contrary to the intent of the
rules governing the use of variable rate securities by money market funds. We
also realized the potential for these securities to deviate significantly from
par and threaten the $1.00 per share price of a money market fund. We spoke out
against the use of these securities by money market funds at industry
conferences throughout 1993, when the securities still offered attractive
yields. Our views were vindicated when, in June 1994, the Securities and
Exchange Commission ("SEC") sent a letter to the Investment Company Institute
requiring money market funds to divest themselves of these securities in an
orderly manner. This caused some investment advisers to buy these securities
from their funds.
Q Interest rates have turned upward since the early part of the year, thanks
to the Federal Reserve Board (the "Fed"). Can you bring us up to date on the
series of rate increases, and how it has affected the municipal market?
A In February, 1994, amid signs of a strong economy, the Fed began to push
short-term interest rates upward, hoping to slow the economy to a sustainable
growth rate and reduce inflation further. Since then, the Federal funds rate
target has been increased by the Fed a total of four more times, moving the
target from 3.0% to 4.75% over this period. Municipal tax-free interest rates
have followed the upward movement in taxable rates but to a slightly lesser
degree, as they are more affected by supply and demand imbalances. Demand for
municipal tax-free money market funds has remained solid this year, although
overall assets are down 2.6% from the peak of $116 billion in March, 1994.
Q How has the Trust's yield reacted to these rate increases?
A Naturally, the Trust's yield also has increased in response to the Fed's
moves and a stronger economy. For the six-month reporting period of April 1,
1994 to September 30, 1994, the Trust's annualized seven-day net yield
increased from 1.85% to 3.06% for the Institutional Service Shares and from
1.70% to 2.91% for the Investment Shares. This represents an increase of 1.21%
over the period. At September 30, 1994, these seven-day yields were equivalent
to taxable yields of 5.07% (Institutional Service Shares) and 4.82% (Investment
Shares)* for those investors subject to the highest federal tax bracket. These
numbers illustrate the Trust's attractiveness relative to taxable investments.
* Data quoted represents past performance and are not indicative of future
results. Yield will vary.
Q In this rising rate atmosphere, have you made any strategic changes to the
Trust's portfolio?
A In January, 1994, the Trust's average maturity was 57 days, reflecting a
neutral interest rate outlook. After the Fed made its first move in
early February, 1994 we began to move the average maturity of the Trust slowly
downward reaching a low of 41 days by early June, 1994. Beginning in June, 1994
when local and state governments came to market to issue their annual cash
management notes, we extended the average maturity back into the mid 50 day
range because of attractive yield opportunities of
these fixed-rate notes. At the end of
September, 1994, the Trust's average maturity remains in this range, but is
likely to shorten further as we remain more bearish on the direction of
interest rates.
Q What is your outlook for the markets and the Trust?
A The economy continues to show surprising resilience to the Fed's attempts to
bring growth under control. We believe the Fed is likely to raise the Federal
funds rate target by another 50 basis points by the end of the year, and
another 50 basis points in the first quarter of 1995. At that point, the
Federal funds target would be about 5.75%. In this environment, stable net
asset value money market funds like the Trust will continue to be an important
component in preserving capital, and should reflect rising short-term interest
rates with increasing net yields.
TAX-FREE INSTRUMENTS TRUST
PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
September 30, 1994
(unaudited)
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--100.1%
- ----------------------------------------------------------------------------------
ALABAMA--2.0%
-------------------------------------------------------------------
$ 9,310,000 Alabama Special Care Facilities Finance Authority Weekly VRDNs
(Daughters of Charity Health Systems Guaranty) VMIG1 $ 9,310,000
-------------------------------------------------------------------
3,500,000 Birmingham, AL, Medical Clinic Board Daily VRDNs (University of
Alabama Health Services Foundation)/
(Morgan Guaranty Trust Co. LOC) A-1+ 3,500,000
-------------------------------------------------------------------
1,000,000 Decatur, AL, IDB Weekly VRDNs Revenue Refunding Bonds (Series
1993)/(Allied Signal, Inc. Guaranty) A-1 1,000,000
-------------------------------------------------------------------
5,450,000 Eutaw, AL, IDB Weekly VRDNs (Mississippi Power Company Guaranty) VMIG1 5,450,000
-------------------------------------------------------------------
6,400,000 Homewood, AL, IDA Weekly VRDNs (Mountain Brook Ltd.)/(SouthTrust
Bank of Alabama LOC) P-1 6,400,000
-------------------------------------------------------------------
2,000,000 Mobile, AL, IDB, PCR Weekly VRDNs (Series 1993B)/
(Alabama Power Company Guaranty) A-1 2,000,000
-------------------------------------------------------------------
4,000,000 Vincent, AL, IDA Weekly VRDNs (Headquarters Partnership)/(National
Australia Bank Ltd. LOC) P-1 4,000,000
------------------------------------------------------------------- ----------------
Total 31,660,000
------------------------------------------------------------------- ----------------
ARIZONA--1.2%
-------------------------------------------------------------------
790,200 Gilbert, AZ, IDA Weekly VRDNs (Foxworth-Galbrath Lumber Co.)/(Bank
One, Arizona LOC) P-1 790,200
-------------------------------------------------------------------
1,853,000 Maricopa County, AZ, IDA Weekly VRDNs (Chaparral City Water
Services)/(Bank One, Arizona LOC) P-1 1,853,000
-------------------------------------------------------------------
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
-------------------------------------------------------------------
$ 2,015,000 Pima County, AZ, IDA Weekly VRDNs (BJR Investments, Inc.)/(Bank
One, Arizona LOC) P-1 $ 2,015,000
------------------------------------------------------------------- ----------------
Total 19,586,200
------------------------------------------------------------------- ----------------
CALIFORNIA--14.1%
-------------------------------------------------------------------
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
-------------------------------------------------------------------
7,900,000 California Pollution Control Finance Authority Weekly VRDNs (Series
1991)/(North County Recycling & Energy Recovery Centre)/(Union Bank
of Switzerland LOC) A-1+ 7,900,000
-------------------------------------------------------------------
2,165,000 California Pollution Control Finance Authority, 4.25% Annual TOBs
(San Diego Gas & Electric), Mandatory Tender 8/1/95 P-1 2,165,000
-------------------------------------------------------------------
7,000,000 California School Cash Reserve Program Authority, 4.50% TRANs
(Series 1994A)/(lndustrial Bank of Japan Ltd. LOC), 6/28/95 MIG1 7,032,415
-------------------------------------------------------------------
25,000,000 California School Cash Reserve Program Authority, 4.50% TRANs
(Series 1994A)/(California School Cash Reserve Program), 7/5/95 MIG1 25,136,982
-------------------------------------------------------------------
25,600,000 California State, 3.75% RANs, 12/21/94 SP-1 25,636,445
-------------------------------------------------------------------
23,900,000 California State, 5.00% RANs (Series A), 6/28/95 SP-1+ 24,038,671
-------------------------------------------------------------------
10,000,000 California State, Daily VRDNs (Series C)/(Dai-lchi Kangyo Bank Ltd.
BPA)/(Bank of America NT&SA,
Banque Nationale de Paris, Bank of Nova Scotia, Canadian Imperial
Bank of Commerce, Chemical Bank, Citibank N.A., Credit Suisse,
Morgan Guaranty Trust Co., National Westminster Bank, PLC, London,
Societe Generale North America, Inc., Sumitomo Bank Ltd., Swiss
Bank Corp., Westdeutsche Landesbank Girozentrale & Toronto-Dominion
Bank LOCs), R MIG1 10,000,000
-------------------------------------------------------------------
$ 25,393,565 California State, FB California Trust/Floating Rate Trust
Certificate, Weekly VRDNs (Series 10)/(Credit Suisse Financial
Products BPA)/(Bank of America NT&SA,
Banque Nationale de Paris, Bank of Nova Scotia, Canadian Imperial
Bank of Commerce, Chemical Bank, Citibank N.A., Credit Suisse,
Morgan Guaranty Trust Co., National Westminster Bank, PLC, London,
Societe Generale North America, Inc., Sumitomo Bank Ltd., Swiss
Bank Corp., Westdeusche Landesbank Girozentrale & Toronto Dominion
Bank LOCs), R MIG1 $ 25,393,565
-------------------------------------------------------------------
17,500,000 California State, Monthly Variable Rate Notes (Series C), 6/28/95 SP-1+ 17,500,000
-------------------------------------------------------------------
4,200,000 California Statewide Communities Development Authority Weekly VRDNs
(Series A)/(Barton Memorial Hospital)/(Banque Nationale de Paris
LOC) VMIG1 4,200,000
-------------------------------------------------------------------
4,365,000 Kern County Community College District, CA, 4.625% BANs (1994
Project Refunding Notes), 7/15/95 MIG1 4,383,963
-------------------------------------------------------------------
3,700,000 Los Angeles, CA, Wastewater System, 3.30% CP, Mandatory Tender
12/15/94 A-1+ 3,700,000
-------------------------------------------------------------------
5,100,000 Oakland, CA, Redevelopment Agency Weekly VRTCs (Prerefunded), R NR(1) 5,100,000
-------------------------------------------------------------------
10,000,000 Orange County, CA, 4.50% TRANs (Series A), 7/19/95 SP-1+ 10,057,509
-------------------------------------------------------------------
36,000,000 San Bernadino County, CA, 4.50% TRANs, 7/31/95 SP-1+ 36,171,571
-------------------------------------------------------------------
2,000,000 Southern California Metropolitan Water District, CA, 3.45% CP,
Mandatory Tender 12/21/94 A-1+ 2,000,000
-------------------------------------------------------------------
8,340,000 Stanislaus County, CA, Office of Education, 4.25% TRANs, 7/10/95 SP-1+ 8,374,115
-------------------------------------------------------------------
$ 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 225,970,236
------------------------------------------------------------------- ----------------
COLORADO--2.2%
-------------------------------------------------------------------
30,000,000 Araphoe County, CO, Improvement Authority, 3.90% Semi-Annual TOBs
(Series F)/(Societe Generale GIC), Optional Tender 2/28/95 SP-1+ 30,000,000
-------------------------------------------------------------------
4,800,000 Moffat County, CO, PCR Weekly VRDNs (Series 1984)/ (Colorado UTE
Electric Association)/(NRUCFC
Guaranty) A-1 4,800,000
------------------------------------------------------------------- ----------------
Total 34,800,000
------------------------------------------------------------------- ----------------
CONNECTICUT--1.7%
-------------------------------------------------------------------
5,000,000 Clipper Connecticut Tax Exempt Trust, Weekly VRDNs (Series 1994-1),
R VMIG1 5,000,000
-------------------------------------------------------------------
8,035,000 Connecticut Development Authority Weekly VRDNs (Independence
Living, Inc.)/(Credit Commercial de France LOC) VMIG1 8,035,000
-------------------------------------------------------------------
3,110,000 Connecticut State HFA, 2.80% Annual TOBs (Series
1993E-1)/(Housing Mortgage Finance Program), Mandatory Tender
11/15/94 A-1+ 3,110,000
-------------------------------------------------------------------
4,000,000 Connecticut State HFA, 3.55% Annual TOBs (Series
G-1)/(Housing Mortgage Finance Program), Mandatory Tender 5/15/95 A-1+ 4,000,000
-------------------------------------------------------------------
7,000,000 Connecticut State Transportation Infrastructure Authority Weekly
VRDNs (Industrial Bank of Japan Ltd. LOC) A-1 7,000,000
------------------------------------------------------------------- ----------------
Total 27,145,000
------------------------------------------------------------------- ----------------
DELAWARE--1.9%
-------------------------------------------------------------------
$ 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
-------------------------------------------------------------------
5,600,000 Delaware HFA Pooled Loan Program Weekly VRDNs (Series 1988)/(MBIA
Insured) A-1+ 5,600,000
------------------------------------------------------------------- ----------------
Total 30,794,000
------------------------------------------------------------------- ----------------
FLORIDA--10.9%
-------------------------------------------------------------------
4,050,000 Broward County, FL, Health Facility Authority Revenue Bonds Weekly
VRDNs (John Knox Village of Florida)/ (First Union National Bank
LOC) NR(2) 4,050,000
-------------------------------------------------------------------
2,500,000 Charlotte County School District, FL, 4.50% TANs (Series 1994),
6/30/95 MIG1 2,510,875
-------------------------------------------------------------------
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
-------------------------------------------------------------------
4,670,000 Dade County, FL, IDA Weekly VRDNs (Smith Terminal Warehouse
Co.)/(First Union National Bank LOC) P-1 4,670,000
-------------------------------------------------------------------
1,625,000 Eustis Health Facilities Authority, FL, Weekly VRDNs (Series
1985)/(Waterman Medical Center, Inc.)/(Banque Paribas LOC) A 1,625,000
-------------------------------------------------------------------
16,000,000 Floating Rate Trust Certificate Weekly VRDNs (Dade County, FL,
School District)/(FGIC Insured), R P-1 16,000,000
-------------------------------------------------------------------
2,250,000 Floating Rate Trust Certificate Weekly VRDNs (Dade County, FL,
School District)/(FGIC Insured), R P-1 2,250,000
-------------------------------------------------------------------
11,000,000 Florida Department of Environment Protection, VRDCs/ IVRCs Trust
(Series 1994A)/(AMBAC Insured), R A-1 11,000,000
-------------------------------------------------------------------
12,545,000 Florida HFA Weekly VRDNs (Cornerstone)/(PNC N.A. LOC) A-1 12,545,000
-------------------------------------------------------------------
$ 7,135,000 Florida HFA Weekly VRDNs (Series 1985AA)/(Parrot's
Landing)/(Citibank N.A. LOC) A-1 $ 7,135,000
-------------------------------------------------------------------
2,000,000 Florida Local Government Finance Authority Weekly VRDNs (Series
1986A)/(Governmental Unit Loan Program)/(First Union National Bank
LOC) A-1 2,000,000
-------------------------------------------------------------------
4,000,000 Florida Municipal Loan Council, 3.40% CP (Series
1985-1)/(Florida League of Cities)/(Sumitomo Bank Ltd. LOC),
Mandatory Tender 11/7/94 VMIG1 4,000,000
-------------------------------------------------------------------
7,340,000 Florida State Board of Education Capital Outlay, 3.50% Semi-Annual
TOBs (CR 48D)/(Series 1989A)/(Citibank BPA), Optional Tender
12/1/94 NR(2) 7,340,000
-------------------------------------------------------------------
6,895,000 Florida State Board of Education Capital Outlay, 3.55% Semi-Annual
TOBs (CR 48)/(Series 1989A), Optional Tender 12/1/94 NR(2) 6,895,000
-------------------------------------------------------------------
3,595,000 Florida State Board of Education Capital Outlay, 3.55% Semi-Annual
TOBs (CR 49)/(Series 1989A)/(Citibank BPA), 12/1/94 NR(2) 3,595,000
-------------------------------------------------------------------
3,910,000 Florida State Board of Education Capital Outlay, 3.55% Semi-Annual
TOBs (CR 55)/(Series 1989A), Optional Tender 12/1/94 NR(2) 3,910,000
-------------------------------------------------------------------
1,000,000 Hillsborough County, FL, IDA Weekly VRDNs (Series 1988)/(Florida
Steel Corp.)/(Bankers Trust Co. LOC) P-1 1,000,000
-------------------------------------------------------------------
1,500,000 Jacksonville, FL, Health Facility Authority Weekly VRDNs (Series
1994)/(River Garden/The Coves)/(First Union National Bank of North
Carolina LOC) P-1 1,500,000
-------------------------------------------------------------------
4,000,000 Jacksonville, FL, HFDC Daily VRDNs (River Garden)/ (Banque Paribas
LOC) A-1 4,000,000
-------------------------------------------------------------------
$ 2,860,000 Lee County, FL, HFDC Daily VRDNs (Series 1985)/
(Christian & Missionary Alliance Foundation)/(Banque
Paribas LOC) A-1 $ 2,860,000
-------------------------------------------------------------------
5,710,000 Manatee County, FL, HFA Weekly VRDNs (Carriage Club)/(Mellon Bank
N.A. LOC) VMIG1 5,710,000
-------------------------------------------------------------------
14,000,000 Mount Dora, FL, Health Facility Weekly VRDNs (Series
1989)/(Waterman Village)/(Sumitomo Bank Ltd. LOC) A-1 14,000,000
-------------------------------------------------------------------
8,686,000 Orange County, FL, 3.35% CP, Mandatory Tender
11/7/94 A-1+ 8,686,000
-------------------------------------------------------------------
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
-------------------------------------------------------------------
18,000,000 Saint Lucie County, FL, PCR Refunding Bonds, 3.20% CP, (Series
1992)/(Florida Power & Light Co. Guaranty), Mandatory Tender
1/24/95 A-1 18,000,000
-------------------------------------------------------------------
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
-------------------------------------------------------------------
10,000,000 Sunshine State Governmental Finance Commission, FL, 3.10% CP
(Morgan Guaranty Trust Co., National Westminster Bank PLC and Union
Bank of Switzerland LOCs), Mandatory Tender 10/13/94 VMIG1 10,000,000
-------------------------------------------------------------------
400,000 Suwannee County, FL, Weekly VRDNs (Series 1989)/ (Advent Christian
Village)/(Barnett Bank of Jacksonville LOC) VMIG1 400,000
------------------------------------------------------------------- ----------------
Total 174,726,875
------------------------------------------------------------------- ----------------
GEORGIA--1.4%
-------------------------------------------------------------------
$ 4,605,000 Cobb County, GA, IDR Weekly VRDNs (Atlanta RDC Co.)/(First Union
National Bank LOC) P-1 $ 4,605,000
-------------------------------------------------------------------
7,015,000 Columbus, GA, Industrial and Port Development Commission Weekly
VRDNs (Series 1992)/(Main Street Village Partnership)/(Columbus
Bank & Trust Co. LOC) A-1 7,015,000
-------------------------------------------------------------------
1,500,000 Fulton County, GA, IDA Weekly VRDNs (Automated Data Processing Co.
Guaranty) P-1 1,500,000
-------------------------------------------------------------------
2,415,000 Georgia State Residential Finance Authority, SFM, 3.40% Semi-Annual
TOBs (Series 1987A), Optional Tender
12/1/94 NR(2) 2,415,000
-------------------------------------------------------------------
3,000,000 La Grange, GA, Multi-Family Housing Authority Revenue Bonds, 3.20%
Semi-Annual TOBs (Lee's Crossing Project Phase I)/(Barnett Bank of
Jacksonville N.A. LOC), Optional Tender 11/1/94 P-1 3,000,000
-------------------------------------------------------------------
3,180,000 La Grange, GA, Multi-Family Housing Authority Revenue Bonds, 3.20%
Semi-Annual TOBs (Lee's Crossing Project Phase II)/(Barnett Bank of
Jacksonville N.A. LOC), Optional Tender 11/1/94 P-1 3,180,000
------------------------------------------------------------------- ----------------
Total 21,715,000
------------------------------------------------------------------- ----------------
ILLINOIS--5.7%
-------------------------------------------------------------------
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, 3.85% SB (Dai-lchi Kangyo Bank Ltd., Sanwa
Bank Ltd., Mitsubishi Bank Ltd., Industrial Bank of Japan Ltd. and
Sumitomo Bank Ltd. LOCs),
10/31/94 MIG1 10,000,950
-------------------------------------------------------------------
23,000,000 Illinois Development Authority Weekly VRDNs (Lyric Opera of
Chicago)/(Northern Trust Co., NBD Bank, N.A., Harris Trust &
Savings Bank and Caisse Nationale de Credit Agricole LOCs) A-1+ 23,000,000
-------------------------------------------------------------------
$ 4,000,000 Illinois Development Finance Authority PCR Daily VRDNs (Diamond
Star Motors)/(Mitsubishi Bank, Ltd. LOC) VMIG1 $ 4,000,000
-------------------------------------------------------------------
15,000,000 Illinois Development Finance Authority PCR, 3.30% CP (Series
A)/(Illinois Power Co.)/(Canadian Imperial Bank of Commerce LOC),
Mandatory Tender 11/17/94 P-1 15,000,000
-------------------------------------------------------------------
1,033,000 Illinois Development Finance Authority Weekly VRDNs (Newlywed
Food)/(Mellon Bank N.A. LOC) A-1 1,033,000
-------------------------------------------------------------------
20,000,000 Illinois Development Finance Authority Weekly VRDNs (Series
1994)/(Museum of Contemporary Art)/(NBD Bank, N.A., Harris Trust &
Savings Bank, Northern Trust Co., and LaSalle National Bank LOCs) A-1+ 20,000,000
-------------------------------------------------------------------
3,000,000 Illinois Educational Facilities Authority Weekly VRDNs (Series
1992)/(DePaul University)/(Sanwa Bank Ltd. LOC) VMIG1 3,000,000
-------------------------------------------------------------------
7,500,000 Illinois Educational Facilities Authority, 3.25% CP (Field Museum
of Natural History)/(Sanwa Bank Ltd. LOC), Mandatory Tender 12/8/94 VMIG1 7,500,000
-------------------------------------------------------------------
3,500,000 Oakbrook Terrace, IL, IDR Weekly VRDNs (Series 1993)/ (La Quinta
Motor Inns, Inc.)/(NationsBank of Texas N.A. LOC) P-1 3,500,000
-------------------------------------------------------------------
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
------------------------------------------------------------------- ----------------
Total 91,283,950
------------------------------------------------------------------- ----------------
INDIANA--4.5%
-------------------------------------------------------------------
2,200,000 Bluffton, IN, Economic Development Refunding Revenue Bonds Weekly
VRDNs (Blount, Inc.)/(Credit Lyonnais, Paris LOC) P-2 2,200,000
-------------------------------------------------------------------
$ 6,500,000 Elkhart, IN, 3.00% TANs, 12/30/94 NR $ 6,504,683
-------------------------------------------------------------------
4,000,000 Gary, IN, Environment Improvement Refunding Bonds, 3.70% CP (Series
1986)/(USX Marathon Group)/(Long Term Credit Bank of Japan Ltd.
LOC) Mandatory Tender 10/25/94 P-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+ 25,020,102
-------------------------------------------------------------------
12,600,000 Indianapolis, IN, Local Public Improvement Bond Bank Notes, 3.75%
TANs (Series 1994B)/(Indianapolis Bond Bank), 1/16/95 SP-1+ 12,621,697
-------------------------------------------------------------------
3,000,000 Mishawaka, IN, Temporary Loan Warrants, 3.625% TANs, 12/30/94 NR(3) 3,002,700
-------------------------------------------------------------------
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 9,402,712
------------------------------------------------------------------- ----------------
Total 72,351,894
------------------------------------------------------------------- ----------------
KANSAS--0.3%
-------------------------------------------------------------------
5,600,000 Burlington, KS, PCR, 3.25% CP (Kansas City Power & Light
Co.)/(Societe Generale, Paris LOC), Mandatory Tender 10/26/94 P-1 5,600,000
------------------------------------------------------------------- ----------------
KENTUCKY--1.9%
-------------------------------------------------------------------
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, 3.55% Semi-Annual
TOBs (Dart Polymers)/(NBD Bank, N.A. LOC), Optional Tender 11/30/94 P-1 $ 1,800,000
------------------------------------------------------------------- ----------------
Total 29,650,000
------------------------------------------------------------------- ----------------
LOUISIANA--2.3%
-------------------------------------------------------------------
5,770,000 Louisiana PFA Advance Funding Notes, 4.60% TANs (Series 1994C)/(St.
Charles Parish School Board),
8/31/95 SP-1+ 5,790,315
-------------------------------------------------------------------
10,900,000 Louisiana PFA Hospital Revenue 3.40% CP (Our Lady of Lake
Hospital)/(FSA Insured), Mandatory Tender 11/7/94 A-1 10,900,000
-------------------------------------------------------------------
19,665,000 Louisiana PFA, 3.30% CP (Our Lady of Lake Hospital)/ (FSA Insured),
Mandatory Tender 10/14/94 A-1+ 19,665,000
------------------------------------------------------------------- ----------------
Total 36,355,315
------------------------------------------------------------------- ----------------
MAINE--0.6%
-------------------------------------------------------------------
3,150,000 Gardner, ME, IDB Weekly VRDNs (Associated Grocers)/ (Westpac
Banking Corp. LOC) P-1 3,150,000
-------------------------------------------------------------------
7,000,000 Portland, ME, Water District, 2.85% BANs (Series B),
11/23/94 NR(3) 7,000,000
------------------------------------------------------------------- ----------------
Total 10,150,000
------------------------------------------------------------------- ----------------
MARYLAND--3.1%
-------------------------------------------------------------------
1,587,000 Anne Arundel County, MD, Weekly VRDNs (Series 1988)/(Oakland Hills
L.P. Facility)/(NationsBank of
Virginia N.A. LOC) P-1 1,587,000
-------------------------------------------------------------------
1,864,000 Howard County, MD, Weekly VRDNs (Series 1990)/
(Nick B. & Mary C. Mangione)/(NationsBank of Maryland LOC) P-1 1,864,000
-------------------------------------------------------------------
20,150,000 Maryland State Community Development Administration, 3.90%
Semi-Annual TOBs (Series 1985-2), Optional Tender 4/1/95 NR(2) 20,150,000
-------------------------------------------------------------------
$ 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
-------------------------------------------------------------------
370,000 Maryland State Weekly VRDNs GO Bonds P-Floats (First Series, 1993),
R VMIG1 370,000
-------------------------------------------------------------------
2,105,000 Maryland State, EDA Weekly VRDNs (Series 1991)/ (Maryland Academy
of Sciences Facility)/(NationsBank of North Carolina N.A. LOC) VMIG1 2,105,000
-------------------------------------------------------------------
1,700,000 Maryland State, HEFA Weekly VRDNs (Series 1992A)/ (Carroll Co.
General Hospital)/(NationsBank of Maryland LOC) P-1 1,700,000
-------------------------------------------------------------------
8,000,000 Montgomery County, MD, EDA Weekly VRDNs
(Howard Hughes Medical Institute Guaranty) A-1+ 8,000,000
-------------------------------------------------------------------
3,900,000 Montgomery County, MD, EDA Weekly VRDNs (U.S. Pharmacopeial
Convention Facility)/(Chemical Bank LOC) VMIG1 3,900,000
-------------------------------------------------------------------
1,100,000 Montgomery County, MD, Housing Opportunities
Commission Weekly VRDNs (Series 1985)/(Overlook II
Project)/(NationsBank of Virginia N.A. LOC) VMIG1 1,100,000
-------------------------------------------------------------------
7,580,000 Washington Suburban Sanitary District, MD, Weekly VRDNs (Series
PT-13), R VMIG1 7,580,000
------------------------------------------------------------------- ----------------
Total 49,536,000
------------------------------------------------------------------- ----------------
MASSACHUSETTS--3.9%
-------------------------------------------------------------------
12,000,000 Massachusetts Bay Transit Authority, 3.75% BANs, 3/1/95 SP-1 12,028,843
-------------------------------------------------------------------
4,455,000 Massachusetts HEFA Weekly VRDNs (Harvard University Guaranty) A-1+ 4,455,000
-------------------------------------------------------------------
500,000 Massachusetts HEFA Weekly VRDNs (Series D)/(Capital Asset
Program)/(MBIA Insured) VMIG1 500,000
-------------------------------------------------------------------
$ 1,300,000 Massachusetts HEFA Weekly VRDNs (Series E)/(Capital Asset
Program)/(Sanwa Bank Ltd. LOC) A-1+ $ 1,300,000
-------------------------------------------------------------------
12,000,000 Massachusetts HEFA, 3.10% CP (Harvard University), Mandatory Tender
10/28/94 A-1+ 12,000,000
-------------------------------------------------------------------
4,750,000 Massachusetts HFA, SFH Puttable Tax-Exempt Receipts Weekly VRDNs
(Series 13-B)/(AMBAC Insured), R VMIG1 4,750,000
-------------------------------------------------------------------
12,000,000 Massachusetts IFA, 3.25% CP (Series 1993A)/(New England Power Co.
Guaranty), Mandatory Tender
10/26/94 A-1 12,000,000
-------------------------------------------------------------------
6,000,000 Massachusetts IFA, PCR Refunding Bonds, 2.90% CP (Series
1993-B)/(New England Power Co.), Mandatory Tender 10/17/94 A-1 6,000,000
-------------------------------------------------------------------
2,000,000 North Adams, MA, 3.83% BANs, 6/30/95 NR(3) 2,000,418
-------------------------------------------------------------------
4,000,000 North Adams, MA, 4.25% BANs, 6/30/95 NR(3) 4,012,875
-------------------------------------------------------------------
2,899,333 North Adams, MA, 4.50% BANs, 6/30/95 NR(3) 2,913,853
------------------------------------------------------------------- ----------------
Total 61,960,989
------------------------------------------------------------------- ----------------
MICHIGAN--1.0%
-------------------------------------------------------------------
1,000,000 Flint, MI, EDA Weekly VRDNs (PPG Industries, Inc. Guaranty) P-1 1,000,000
-------------------------------------------------------------------
2,800,000 Michigan State Hospital Finance Authority Weekly VRDNs (Series
1994)/(Mt. Clemens General Hospital)/ (Comercia Bank LOC) VMIG1 2,800,000
-------------------------------------------------------------------
2,700,000 Michigan State Hospital Finance Authority Weekly VRDNs (Series
A)/(Sisters of the Third Order of St. Francis)/(Swiss Bank Corp.
LOC) P-1 2,700,000
-------------------------------------------------------------------
5,000,000 Michigan State Housing Development Authority Weekly VRDNs (Series
1992B)/(Sumitomo Bank Ltd. LOC) A-1 5,000,000
-------------------------------------------------------------------
2,600,000 Sterling Heights, MI, Economic Development Corp. Weekly VRDNs (PPG
Industries, Inc. Guaranty) P-1 2,600,000
-------------------------------------------------------------------
$ 2,000,000 Wayne County, MI, Downriver Sewage Disposal System, 3.55% CP
(Series 1994B)/(Comerica Bank LOC), Mandatory Tender 12/15/94 VMIG1 $ 2,000,000
------------------------------------------------------------------- ----------------
Total 16,100,000
------------------------------------------------------------------- ----------------
MINNESOTA--1.4%
-------------------------------------------------------------------
4,500,000 Eagan, MN, Multi-Family Housing Weekly VRDNs (Series
1992A)/(Cinnamon Ridge)/(Mellon Bank N.A. LOC) VMIG1 4,500,000
-------------------------------------------------------------------
1,000,000 Rochester, MN, Health Care Facility Weekly VRDNs (Mayo Clinic
Foundation Guaranty) VMIG1 1,000,000
-------------------------------------------------------------------
2,000,000 Rochester, MN, Health Care Facility Authority Weekly VRDNs (Mayo
Clinic Foundation Guaranty) VMIG1 2,000,000
-------------------------------------------------------------------
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
-------------------------------------------------------------------
4,200,000 University of Minnesota, 3.60% Semi-Annual TOBs (Series G)/(Regents
of University of Minnesota
Guaranty), Optional Tender 2/1/95 A-1+ 4,200,000
-------------------------------------------------------------------
3,110,000 Washington County, MN, Housing & Redevelopment Authority Weekly
VRDNs (Series 90)/(Granada Pond Apartments)/(Sumitomo Bank Ltd.
LOC) A-1 3,110,000
------------------------------------------------------------------- ----------------
Total 21,810,000
------------------------------------------------------------------- ----------------
MISSOURI--0.7%
-------------------------------------------------------------------
3,300,000 Missouri State Environmental Improvement & Energy Resource
Authority, 3.25% CP (Series 1985A)/(Union Electric Co.)/(Union Bank
of Switzerland LOC), Mandatory Tender 11/23/94 A-1+ 3,300,000
-------------------------------------------------------------------
$ 5,000,000 Missouri State Environmental Improvement & Energy Resource
Authority, 3.45% CP (Kansas City Power and Light Co.), Mandatory
Tender 12/7/94 A-1+ $ 5,000,000
-------------------------------------------------------------------
2,850,000 Sedalia, MO, IDA Weekly VRDNs (Cooper Industries)/ (Sanwa Bank Ltd.
LOC) P-1 2,850,000
------------------------------------------------------------------- ----------------
Total 11,150,000
------------------------------------------------------------------- ----------------
NEW JERSEY--1.9%
-------------------------------------------------------------------
3,500,000 Mercer County, NJ, Improvement Authority Weekly VRDNs (Credit
Suisse LOC) A-1+ 3,500,000
-------------------------------------------------------------------
3,000,000 New Jersey EDA Weekly VRDNs (Center for Aging, Inc.)/(Banque
Paribas LOC) A-1 3,000,000
-------------------------------------------------------------------
487,317 New Jersey EDA Weekly VRDNs (H.L. Bhasin)/(Dai-Ichi Kangyo Bank
Ltd. LOC and Ford Motor Credit BPA) P-1 487,317
-------------------------------------------------------------------
1,245,000 New Jersey EDA Weekly VRDNs (Series 1992L)/(Kent Place
School)/(Banque Nationale de Paris LOC) VMIG1 1,245,000
-------------------------------------------------------------------
3,300,000 New Jersey EDA Weekly VRDNs (YM-MWHA of Bergen County)/(Bank of New
York LOC) VMIG1 3,300,000
-------------------------------------------------------------------
5,055,000 New Jersey HFA, 3.40% Semi-Annual TOBs (Series 1992A)/(Citibank
N.A. BPA), Optional Tender 11/1/94 NR(2) 5,055,000
-------------------------------------------------------------------
4,300,000 New Jersey Transportation Trust Fund Agency Weekly VRDNs (Series
1993A)/(FSA Insured) VMIG1 4,300,000
-------------------------------------------------------------------
2,220,000 Passaic Valley, NJ, Water Commission Supply Revenue Bonds Weekly
VRDNs (PA-52)/(FGIC Insured), R VMIG1 2,220,000
-------------------------------------------------------------------
3,833,000 Sussex Borough, NJ, 3.75% BANs, 2/27/95 NR(3) 3,839,036
-------------------------------------------------------------------
3,300,000 Union City, NJ, Pollution Control Finance Authority, 3.05% CP
(Series 1994)/(Exxon Corp.), Mandatory Tender 10/14/94 A-1+ 3,300,000
------------------------------------------------------------------- ----------------
Total 30,246,353
------------------------------------------------------------------- ----------------
NEW YORK--3.0%
-------------------------------------------------------------------
$ 3,000,000 Nassau County, NY, IDA Civic Facilities Revenue Bonds Daily VRDNs
(Cold Spring Harbor Laboratory)/(Morgan Guaranty Trust Co., LOC) A-1+ $ 3,000,000
-------------------------------------------------------------------
5,500,000 New Rochelle, NY, IDA Weekly VRDNs (Charles Sadek Import Co.)/(Bank
of New York LOC) A-1 5,500,000
-------------------------------------------------------------------
2,800,000 New York City, NY, 4.25% TANs (Series A), 2/15/95 SP-1+ 2,806,609
-------------------------------------------------------------------
8,780,000 New York City, NY, 4.50% RANs (Series A), 4/12/95 SP-1 8,816,009
-------------------------------------------------------------------
4,400,000 New York City, NY, Daily VRDNs (FSA Insured) A-1 4,400,000
-------------------------------------------------------------------
3,900,000 New York City, NY, GO Bonds Daily VRDNs (Series
H-5)/(MBIA Insured)/(Landesbank Hessen-Thueringen BPA) A-1+ 3,900,000
-------------------------------------------------------------------
14,320,000 New York State HFA Weekly VRDNs (Special Surgery
Hospital)/(Chemical Bank LOC) VMIG1 14,320,000
-------------------------------------------------------------------
1,500,000 Niagara County, NY, IDA Weekly VRDNs (Allegheny Ludlum Corp.)/(PNC
Bank N.A. LOC) A-1 1,500,000
-------------------------------------------------------------------
3,500,000 Niagara Falls, NY, Toll Bridge System Revenue Bonds Weekly VRDNs
(Series 1993A)/(FGIC Insured) A-1+ 3,500,000
------------------------------------------------------------------- ----------------
Total 47,742,618
------------------------------------------------------------------- ----------------
NORTH CAROLINA--7.3%
-------------------------------------------------------------------
1,000,000 Alamance County, NC, Industrial Facilities Authority Weekly VRDNs
(Series A)/(Culp, Inc.)/(First Union National Bank, Charlotte LOC) VMIG1 1,000,000
-------------------------------------------------------------------
4,300,000 Charlotte, NC, Airport Refunding Revenue Bonds Weekly VRDNs (Series
1993A)/(MBIA Insured)/
(Industrial Bank of Japan Ltd. LOC) A-1+ 4,300,000
-------------------------------------------------------------------
3,000,000 Charlotte, NC, Revenue Refunding Certificates of Participation
Weekly VRDNs (PA-46)/(AMBAC Insured)/
(Merrill Lynch Capital Services, Inc. LIQ), R VMIG1 3,000,000
-------------------------------------------------------------------
$ 1,000,000 Cleveland County, NC, IDA Weekly VRDNs (PPG Industries Guaranty) P-1 $ 1,000,000
-------------------------------------------------------------------
2,000,000 Durham, NC, Public Improvement Bonds Weekly VRDNs (Series 1993) A-1+ 2,000,000
-------------------------------------------------------------------
6,720,000 Fayetteville, NC, Public Works Commission Revenue Refunding Bonds
Weekly VRDNs (FGIC Insured)/
(Merrill Lynch Capital Services, Inc. LIQ), R VMIG1 6,720,000
-------------------------------------------------------------------
7,000,000 Greensboro, NC, Certificates of Participation Weekly VRDNs (Series
1994)/(Greensboro Center City Corp.)/ (Wachovia Bank BPA) A-1+ 7,000,000
-------------------------------------------------------------------
3,000,000 Lee County, NC, Industrial Facilities & Pollution Control Financing
Authority Weekly VRDNs (Series 1989)/ (Avondale Mills, Inc.)/(Trust
Company Bank LOC) P-1 3,000,000
-------------------------------------------------------------------
20,000,000 Martin County, NC, IFA Weekly VRDNs (Series 1993)/ (Weyerhauser,
Inc. Guaranty) A-1 20,000,000
-------------------------------------------------------------------
3,680,000 Mecklenberg County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Series 1988)/(Florida Steel
Corp.)/(Bankers Trust Company LOC) P-1 3,680,000
-------------------------------------------------------------------
2,260,000 North Carolina Eastern Municipal Power Agency, Weekly VRDNs
(P-Floats)/(Series PA-34B)/(Prerefunded), R VMIG1 2,260,000
-------------------------------------------------------------------
2,000,000 North Carolina Educational Facilities Finance Agency Weekly VRDNs
(Series 1987A)/(Duke University
Guaranty) A-1+ 2,000,000
-------------------------------------------------------------------
7,000,000 North Carolina Educational Facilities Finance Agency Weekly VRDNs
(Series 1990)/(Bowman Gray School of Medicine)/(Wachovia Bank &
Trust Co. N.A. LOC) VMIG1 7,000,000
-------------------------------------------------------------------
$ 8,200,000 North Carolina Medical Care Commission Hospital
Revenue Bonds Weekly VRDNs (Series 1992B)/(North
Carolina Baptist Hospital) A-1+ $ 8,200,000
-------------------------------------------------------------------
2,600,000 North Carolina Medical Care Commission Hospital
Revenue Bonds Weekly VRDNs (Series 1993)/(Moses H. Cone Memorial
Hospital) A-1+ 2,600,000
-------------------------------------------------------------------
6,500,000 North Carolina Medical Care Commission Hospital
Revenue Bonds Weekly VRDNs (Series 1993A)/(Duke
University Hospital Guaranty) A-1+ 6,500,000
-------------------------------------------------------------------
5,000,000 North Carolina Medical Care Commission Hospital
Revenue Bonds Weekly VRDNs (Series 1994)/(Hugh
Chatham Memorial/Rutherford Hospitals)/(First Union National Bank
LOC) VMIG1 5,000,000
-------------------------------------------------------------------
2,000,000 Onslow County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Mine Safety Appliances
Co.)/(Sanwa Bank Ltd. LOC) A-1+ 2,000,000
-------------------------------------------------------------------
4,300,000 Wake County, NC, Industrial Facilities & Pollution
Control Finance Authority, 2.90% CP (Series 1990A)/
(Carolina Power & Light Co.)/(Fuji Bank Ltd. LOC), Mandatory Tender
10/21/94 A-1 4,300,000
-------------------------------------------------------------------
7,400,000 Wake County, NC, Industrial Facilities & Pollution
Control Finance Authority, 3.35% CP (Series 1990A)/
(Carolina Power & Light Co.), Mandatory Tender
11/23/94 A-1 7,400,000
-------------------------------------------------------------------
2,200,000 Wake County, NC, Industrial Facilities & Pollution
Control Finance Authority, 3.35% CP (Series 1990B)/
(Carolina Power & Light Co.)/(Fuji Bank Ltd. LOC), Mandatory Tender
10/27/94 A-1 2,200,000
-------------------------------------------------------------------
$ 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
-------------------------------------------------------------------
6,000,000 Wake County, NC, Industrial Facilities & Pollution
Control Financing Authority, 3.35% CP (Series 1990B)/
(Carolina Power & Light Co.)/ (Fuji Bank Ltd. LOC), Mandatory
Tender 11/7/94 A-1 6,000,000
-------------------------------------------------------------------
3,000,000 Winston-Salem, NC, Weekly VRDNs GO Bonds (Series 1990)/(Credit
Suisse BPA) VMIG1 3,000,000
------------------------------------------------------------------- ----------------
Total 116,590,000
------------------------------------------------------------------- ----------------
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, IDA Weekly VRDNs (Health Hill
Hospital)/(Society National Bank, Cleveland LOC) P-1 900,000
-------------------------------------------------------------------
3,500,000 Hamilton County, OH, Hospital Authority Revenue Bonds Weekly VRDNs
(Series 1986A)/(Good Samaritan Hospital Guaranty) A-1 3,500,000
-------------------------------------------------------------------
4,600,000 Lucas County, OH, HFA Weekly VRDNs (Riverside Hos-
pital)/(Huntington National Bank LOC) P-1 4,600,000
-------------------------------------------------------------------
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
-------------------------------------------------------------------
2,050,000 Montgomery County, OH, IDA Weekly VRDNs (Bethesda Two Ltd.
Partnership)/(Huntington National Bank LOC) P-1 2,050,000
-------------------------------------------------------------------
$ 600,000 Oakwood Village, OH, IDA Weekly VRDNs (Oak Leaf
Industries)/(Society National Bank, Cleveland LOC) P-1 $ 600,000
-------------------------------------------------------------------
3,000,000 Ohio State Public Facilities Weekly VRDNs (AMBAC Insured) VMIG1 3,000,000
-------------------------------------------------------------------
3,810,000 Richland County, OH, Madison-Marlow Sewer Improvement Notes, 4.85%
BANs, 9/14/95 NR(3) 3,830,908
-------------------------------------------------------------------
1,500,000 Scioto County, OH, Hospital Authority Weekly VRDNs (AMBAC Insured) A-1 1,500,000
------------------------------------------------------------------- ----------------
Total 25,580,908
------------------------------------------------------------------- ----------------
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--4.5%
-------------------------------------------------------------------
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
-------------------------------------------------------------------
4,780,000 Allegheny County, PA, IDA Weekly VRDNs (Eye & Ear Hospital)/(PNC
Bank N.A. LOC) P-1 4,780,000
-------------------------------------------------------------------
9,900,000 Allegheny County, PA, IDA, 3.70% CP (USX Marathon Group)/(Long-Term
Credit Bank of Japan Ltd. LOC), Mandatory Tender 10/25/94 A-2 9,900,000
-------------------------------------------------------------------
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 Hospital)/(Marine Bank LOC) NR(3) 3,200,000
-------------------------------------------------------------------
$ 23,100,000 Erie County, PA, Hospital Authority Weekly VRDNs
(St. Vincent Health System)/(Fuji Bank Ltd. LOC) A-1 $ 23,100,000
-------------------------------------------------------------------
2,000,000 Montgomery County, PA, IDA Weekly VRDNs (Plymouth Woods)/(PNC Bank
N.A. LOC) P-1 2,000,000
-------------------------------------------------------------------
2,500,000 Montgomery County, PA, IDA Weekly VRDNs Commercial Development
Revenue Bonds (Series 1992)/(Hickory Pointe)/(Fidelity Bank LOC) P-1 2,500,000
-------------------------------------------------------------------
2,550,000 Moon Township, PA, IDA Weekly VRDNs (Airport Hotel
Associates)/(ABN-AMRO Bank N.V., Amsterdam LOC) A-1+ 2,550,000
-------------------------------------------------------------------
4,000,000 Pennsylvania Floating Rate Trust Certificate, 3.10% Monthly TOBs
(Series 1993H)/(Commonwealth of Pennsylvania)/(AMBAC Insured),
Optional Tender 10/6/94 NR(2) 4,000,000
-------------------------------------------------------------------
2,150,000 Philadelphia, PA, GO Bonds, 2.95% CP (Series 1990)/ (Fuji Bank Ltd.
LOC), Mandatory Tender 10/21/94 A-1 2,150,000
-------------------------------------------------------------------
10,000,000 Philadelphia, PA, Redevelopment Authority Weekly VRDNs (Series
1985)/(Franklin Town Towers)/(Marine Midland Bank N.A. LOC) A-2 10,000,000
-------------------------------------------------------------------
2,600,000 Quakertown, PA, Weekly VRDNs (Hapsco Group)/(First National Bank,
Chicago LOC) VMIG1 2,600,000
------------------------------------------------------------------- ----------------
Total 71,810,000
------------------------------------------------------------------- ----------------
PUERTO RICO--0.1%
-------------------------------------------------------------------
2,000,000 Government Development Bank of Puerto Rico Weekly VRDNs (Credit
Suisse and Sumitomo Bank Ltd. LOCs) A-1 2,000,000
------------------------------------------------------------------- ----------------
SOUTH CAROLINA--0.8%
-------------------------------------------------------------------
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
-------------------------------------------------------------------
$ 7,300,000 Rock Hill School District No. 3, SC, 4.50% TANs (Series 1994),
3/1/95 NR(3) $ 7,314,781
------------------------------------------------------------------- ----------------
Total 12,539,781
------------------------------------------------------------------- ----------------
SOUTH DAKOTA--0.3%
-------------------------------------------------------------------
885,000 Mitchell, SD, IDR Weekly VRDNs (Holiday Inn)/(First Bank N.A. LOC) P-1 885,000
-------------------------------------------------------------------
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 4,485,000
------------------------------------------------------------------- ----------------
TENNESSEE--2.0%
-------------------------------------------------------------------
15,000,000 Clarksville, TN, Public Building Authority, Pooled Finance Revenue
Bonds Weekly VRDNs (Series 1994)/ (Tennessee Municipal Bond
Fund)/(NationsBank of Tennessee LOC) A-1 15,000,000
-------------------------------------------------------------------
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
-------------------------------------------------------------------
5,000,000 Tennessee State, Weekly VRDNs GO BANs (Series 1994A) A-1+ 5,000,000
------------------------------------------------------------------- ----------------
Total 32,749,000
------------------------------------------------------------------- ----------------
TEXAS--3.1%
-------------------------------------------------------------------
$ 900,000 Corpus Christi, TX, IDC Weekly VRDNs (W.W. Grainger, Inc, Guaranty) P-1 $ 900,000
-------------------------------------------------------------------
4,700,000 Dallas County, TX, 3.60% Annual TOBs (Series C), Optional Tender
6/15/95 A-1+ 4,700,000
-------------------------------------------------------------------
16,000,000 Harris County, TX, 4.00% TANs (Series 1994), 2/28/95 SP-1+ 16,021,788
-------------------------------------------------------------------
3,000,000 Harris County, TX, Cultural Education Facilities Finance
Corporation Weekly VRDNs (Houston Museum of Natural Science)/(Bank
One, Texas N.A. LOC) P-1 3,000,000
-------------------------------------------------------------------
955,000 Harris County, TX, IDC Weekly VRDNs (W.W. Grainger, Inc. Guaranty) P-1 955,000
-------------------------------------------------------------------
1,700,000 Houston, TX, Certificates of Obligation Weekly VRDNs (Series
1993A)/(Morgan Guaranty Trust Co. BPA) A-1+ 1,700,000
-------------------------------------------------------------------
3,060,000 Liberty County, TX, IDA Weekly VRDNs (Insteel Industries,
Inc.)/(First Union Bank LOC) P-1 3,060,000
-------------------------------------------------------------------
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, HFA Daily VRDNs (Cumberland Rest, Inc.)/(Banque
Paribas LOC) A-1 3,800,000
-------------------------------------------------------------------
7,500,000 Texas Association of School Boards, 4.75% TANs (Series 1994A),
8/31/95 MIG1 7,539,669
-------------------------------------------------------------------
4,500,000 Texas State, Public Finance Authority Weekly VRDNs
(P-Floats)/(Series 1992C), R VMIG1 4,500,000
------------------------------------------------------------------- ----------------
Total 50,156,457
------------------------------------------------------------------- ----------------
UTAH--1.7%
-------------------------------------------------------------------
4,000,000 Davis County, UT, 3.75% TANs, 12/30/94 NR(2) 4,006,290
-------------------------------------------------------------------
$ 15,000,000 Intermountain Power Agency, UT, 3.55% Annual TOBs, Optional Tender
6/15/95 A-1 $ 15,000,000
-------------------------------------------------------------------
7,400,000 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 7,400,000
------------------------------------------------------------------- ----------------
Total 26,406,290
------------------------------------------------------------------- ----------------
VIRGINIA--4.1%
-------------------------------------------------------------------
5,552,000 Alexandria, VA, IDA Weekly VRDNs (American Red Cross)/(Sanwa Bank
Ltd. LOC) A-1+ 5,552,000
-------------------------------------------------------------------
5,000,000 Arlington County, VA, Weekly VRDNs (Ballston Public
Parking)/(Citibank N.A. LOC) A-1 5,000,000
-------------------------------------------------------------------
1,500,000 Chesterfield, VA, IDA, 2.85% CP (Series 1987A)/(Virginia Electric
Power Co.), Mandatory Tender 10/20/94 A-1 1,500,000
-------------------------------------------------------------------
9,000,000 Fairfax County, VA, Housing Authority Weekly VRDNs (Chase Commons
Associates)/(Bankers Trust Company LOC) VMIG1 9,000,000
-------------------------------------------------------------------
2,000,000 Fairfax County, VA, IDA Weekly VRDNs (Fairfax Hospital System,
Inc.)/(Dai-lchi Kangyo Bank Ltd. LOC) A-1 2,000,000
-------------------------------------------------------------------
1,140,000 Fairfax County, VA, Water Authority Revenue Bonds Weekly VRDNs
(Series PA-9)/(Series 1992)/(Merrill Lynch Capital Services BPA), R VMIG1 1,140,000
-------------------------------------------------------------------
3,540,000 Hampton, VA, Redevelopment & Housing Authority Commercial
Development Rehabilitation Weekly VRDNs (Series 1984)/(NationsBank
of Virginia N.A. LOC) P-1 3,540,000
-------------------------------------------------------------------
3,000,000 Newport News, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1990)/(Fredericksburg-Oxford)/(Bankers Trust Co. LOC) VMIG1 3,000,000
-------------------------------------------------------------------
8,400,000 Richmond, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1989)/(Belmont Apartments)/ (NationsBank of North Carolina
N.A. LOC) P-1 8,400,000
-------------------------------------------------------------------
$ 2,000,000 Roanoke County, VA, Water System Revenue Weekly VRDNs
(P-Floats)/(FGIC Insured), R A-1+ $ 2,000,000
-------------------------------------------------------------------
4,000,000 Roanoke, VA, IDA Hospital Revenue Bonds Daily VRDNs (Series
1992A)/(Carilion Health System)/(Morgan Guaranty Trust Co. LOC) A-1+ 4,000,000
-------------------------------------------------------------------
2,815,000 Suffolk, VA, Redevelopment and Housing Authority Weekly VRDNs
(Terry/Peterson Development Corp.)/ (NationsBank of Virginia N.A.
LOC) P-1 2,815,000
-------------------------------------------------------------------
14,900,000 Virginia Housing Development Authority Weekly VRDNs (Series
1987A)/(AHC Service Corp.)/(Mitsubishi Bank Ltd. LOC) P-1 14,900,000
-------------------------------------------------------------------
3,000,000 Virginia Peninsula Port Authority Facility Revenue Refunding Bonds,
3.55% CP (Series 1992)/(CSX Corp)/ (Bank of Nova Scotia LOC),
Mandatory Tender 12/13/94 A-1+ 3,000,000
------------------------------------------------------------------- ----------------
Total 65,847,000
------------------------------------------------------------------- ----------------
WASHINGTON--0.2%
-------------------------------------------------------------------
2,850,000 Washington State, GO Bonds Weekly VRDNs (Series
P-12A), R VMIG1 2,850,000
------------------------------------------------------------------- ----------------
WEST VIRGINIA--1.3%
-------------------------------------------------------------------
17,500,000 Marshall County, WV, PCR Weekly VRDNs (Series 1992)/(PPG
Industries, Inc. Guaranty) A-1 17,500,000
-------------------------------------------------------------------
2,800,000 Raleigh County, WV, Health Care System Weekly VRDNs (Series
1991)/(Appalachian Regional Healthcare, Inc.)/(Societe Generale
LOC) VMIG1 2,800,000
------------------------------------------------------------------- ----------------
Total 20,300,000
------------------------------------------------------------------- ----------------
WISCONSIN--2.3%
-------------------------------------------------------------------
$ 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
-------------------------------------------------------------------
1,040,000 Spooner, WI, Weekly VRDNs (Series 1994)/(Nash-Finch Company)/(First
Bank N.A. LOC) P-1 1,040,000
-------------------------------------------------------------------
34,000,000 Wisconsin HEFA Weekly VRDNs (St. Luke's Medical Center)/(Sumitomo
Bank Ltd. LOC) VMIG1 34,000,000
------------------------------------------------------------------- ----------------
Total 37,040,000
------------------------------------------------------------------- ----------------
WYOMING--0.1 %
-------------------------------------------------------------------
1,830,000 Sweetwater County, WY, IDA Weekly VRDNs (FMC Corp.)/(Wachovia Bank
& Trust Co. LOC) A-1+ 1,830,000
------------------------------------------------------------------- ----------------
OTHER--4.9%
-------------------------------------------------------------------
15,000,000 Clipper Tax Exempt Trust, Weekly VRDNs (Series 1993-1)/ (State
Street Bank BPA), R A-1+ 15,000,000
-------------------------------------------------------------------
9,936,882 LaSalle National Bank Bustops Trust Weekly VRDNs (Series
1993A)/(LaSalle National Bank BPA), R A-1+ 9,936,882
-------------------------------------------------------------------
4,395,741 LaSalle National Bank LeaseTops Trust Weekly VRDNs (Series
1994B)/(LaSalle National Bank BPA), R A-1+ 4,395,741
-------------------------------------------------------------------
13,600,000 Merrill Lynch Puttable Floats/Rates Trust Weekly VRDNs (Series
PP2)/(Merrill Lynch Capital Services BPA), R VMIG1 13,600,000
-------------------------------------------------------------------
2,375,000 NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990A)/(NationsBank of North Carolina N.A. LOC), R P-1 2,375,000
-------------------------------------------------------------------
7,475,000 NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990B)/(NationsBank of North Carolina N.A. LOC), R P-1 7,475,000
-------------------------------------------------------------------
$ 24,750,000 Tax-Exempt Weekly VRDCs Trust (Series 1993A) A-1 $ 24,750,000
------------------------------------------------------------------- ----------------
Total 77,532,623
------------------------------------------------------------------- ----------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $ 1,600,346,489+
------------------------------------------------------------------- ----------------
</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.
Note: The categories of investments are shown as a percentage of net assets
($1,597,990,301) at September 30, 1994.
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
CP--Commercial Paper
EDA--Economic Development Authority
EDRB--Economic Development Revenue Bonds
FGIC--Financial Guaranty Insurance Company
FSA--Financial Security Assurance
GIC--Guaranteed Investment Contract
GO--General Obligation
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
IVRCs--Inverse Variable Rate Certificates
LIQ--Liquidity Agreement
LOC(s)--Letter(s) of Credit
MBIA--Municipal Bond Investors Assurance
NRUCFC--National Rural Utilities Cooperative Finance Corporation
PCR--Pollution Control Revenue
PFA--Public Facility Authority
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.
RANs--Revenue Anticipation Notes
SB--Serial Bond
SFH--Single Family Housing
SFM--Single Family Mortgage
TANs--Tax Anticipation Notes
TOBs--Tender Option Bonds
TRANs--Tax and Revenue Anticipation Notes
UT--Unlimited Tax
VA--Veterans Administration
VRDCs--Variable Rate Demand Certificates
VRDNs--Variable Rate Demand Notes
VRTCs--Variable Rate Trust Certificates
(See Notes which are an integral part of the Financial Statements)
TAX-FREE INSTRUMENTS TRUST
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
September 30, 1994
(unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------------------------
Investments, at amortized cost and value $ 1,600,346,489
- -------------------------------------------------------------------------------------------------
Cash 5,942,024
- -------------------------------------------------------------------------------------------------
Interest receivable 9,960,908
- -------------------------------------------------------------------------------------------------
Receivable for Trust shares sold 9,805,785
- ------------------------------------------------------------------------------------------------- ---------------
Total assets 1,626,055,206
- -------------------------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------------------------
Payable for investments purchased $ 20,150,000
- -----------------------------------------------------------------------------------
Payable for Trust shares redeemed 5,469,723
- -----------------------------------------------------------------------------------
Dividends payable 1,644,278
- -----------------------------------------------------------------------------------
Accrued expenses and other liabilities 800,904
- ----------------------------------------------------------------------------------- ------------
Total liabilities 28,064,905
- ------------------------------------------------------------------------------------------------- ---------------
NET ASSETS for 1,598,008,325 shares outstanding $ 1,597,990,301
- ------------------------------------------------------------------------------------------------- ---------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------
Paid-in capital $ 1,598,008,325
- -------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (18,024)
- ------------------------------------------------------------------------------------------------- ---------------
Total $ 1,597,990,301
- ------------------------------------------------------------------------------------------------- ---------------
NET ASSET VALUE, and Offering Price Per Share:
Investment Shares ($1,203,376,563 / 1,203,377,470 shares outstanding) $1.00
- ------------------------------------------------------------------------------------------------- ---------------
Institutional Service Shares ($394,613,738 / 394,630,855 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 "Redeeming Shares" in the prospectus.
(See Notes to which are an integral part of the Financial Statements)
TAX-FREE INSTRUMENTS TRUST
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
Six Months Ended September 30, 1994
(unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------------------------
Interest income $ 24,422,305
- ---------------------------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------------------------
Investment advisory fee $ 4,170,824
- -------------------------------------------------------------------------------------
Trustees' fees 10,000
- -------------------------------------------------------------------------------------
Administrative personnel and services fee 631,463
- -------------------------------------------------------------------------------------
Custodian and portfolio accounting fees and expenses 139,285
- -------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 833,346
- -------------------------------------------------------------------------------------
Trust share registration costs 75,040
- -------------------------------------------------------------------------------------
Auditing fees 20,908
- -------------------------------------------------------------------------------------
Legal fees 11,000
- -------------------------------------------------------------------------------------
Printing and postage 50,000
- -------------------------------------------------------------------------------------
Insurance premiums 15,555
- -------------------------------------------------------------------------------------
Taxes 12,429
- -------------------------------------------------------------------------------------
Shareholder service fee--Investment Shares 1,108,715
- -------------------------------------------------------------------------------------
Shareholder service fee--Institutional Service Shares 48,327
- -------------------------------------------------------------------------------------
Miscellaneous 7,500
- ------------------------------------------------------------------------------------- ------------
Total expenses 7,134,392
- -------------------------------------------------------------------------------------
Deduct--
- -------------------------------------------------------------------------------------
Waiver of investment advisory fee 1,581,640
- ------------------------------------------------------------------------------------- ------------
Net expenses 5,552,752
- --------------------------------------------------------------------------------------------------- -------------
Net investment income 18,869,553
- --------------------------------------------------------------------------------------------------- -------------
Net realized gain (loss) on investments (identified cost basis) (7,100)
- --------------------------------------------------------------------------------------------------- -------------
Change in net assets resulting from operations $ 18,862,453
- --------------------------------------------------------------------------------------------------- -------------
</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,
1995* 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------------------
Net investment income $ 18,869,553 $ 32,982,932
- ----------------------------------------------------------------------------
Net realized gain (loss) on investments--identified cost basis (7,100) 46,371
- ---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from operations 18,862,453 33,029,303
- ---------------------------------------------------------------------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ----------------------------------------------------------------------------
Dividends to shareholders from net investment income (18,869,553) (32,982,932)
- ---------------------------------------------------------------------------- ----------------- -----------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS--
- ----------------------------------------------------------------------------
Proceeds from sale of shares 3,233,706,169 7,678,250,694
- ----------------------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 14,031,699 24,797,388
- ----------------------------------------------------------------------------
Cost of shares redeemed (3,367,699,670) (7,604,666,616)
- ---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets from Trust share transactions (119,961,802) 98,381,466
- ---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets (119,968,902) 98,427,837
- ----------------------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------------------
Beginning of period 1,717,959,203 1,619,531,366
- ---------------------------------------------------------------------------- ----------------- -----------------
End of period $ 1,597,990,301 $ 1,717,959,203
- ---------------------------------------------------------------------------- ----------------- -----------------
</TABLE>
* For the six months ended September 30, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
TAX-FREE INSTRUMENTS TRUST
FINANCIAL HIGHLIGHTS--INVESTMENT SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995* 1994 1993 1992 1991 1990 1989 1988 1987 1986
NET ASSET VALUE,
BEGINNING OF PERIOD $ 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 0.01 0.02 0.02 0.04 0.05 0.06 0.05 0.04 0.04 0.05
- ---------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
- ----------------------
Dividends to
shareholders from net
investment income (0.01) (0.02) (0.02) (0.04) (0.05) (0.06) (0.05) (0.04) (0.04) (0.05)
- ---------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
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** 1.12% 2.01% 2.42% 3.84% 5.40% 5.88% 5.28% 4.29% 3.84% 4.79%
- ----------------------
RATIOS TO AVERAGE NET
ASSETS
- ----------------------
Expenses 0.70%(a) 0.61% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
- ----------------------
Net investment
income 2.22%(a) 2.00% 2.38% 3.73% 5.25% 5.73% 5.14% 4.19% 3.74% 4.70%
- ----------------------
Expense waiver/
reimbursement (b) 0.19%(a) 0.14% 0.10% 0.11% 0.12% 0.11% 0.08% 0.06% 0.06% 0.07%
- ----------------------
SUPPLEMENTAL DATA
- ----------------------
Net assets, end of
period (000 omitted) $1,203,376 $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
- ----------------------
</TABLE>
* For the six months ended September 30, 1994 (unaudited).
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(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 EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
MARCH 31,
1995* 1994**
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------
Net investment income 0.01 0.01
- ---------------------------------------------------------------------------------------------- ----------- -----------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.01) (0.01)
- ---------------------------------------------------------------------------------------------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------- ----------- -----------
TOTAL RETURN*** 1.20% 0.92%
- ----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------
Expenses 0.55%(a) 0.55%(a)
- ----------------------------------------------------------------------------------------------
Net investment income 2.37%(a) 1.99%(a)
- ----------------------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.19%(a) 0.14%(a)
- ----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $394,614 $390,453
- ----------------------------------------------------------------------------------------------
</TABLE>
* For the six months ended September 30, 1994 (unaudited).
** 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.
(See Notes which are an integral part of the Financial Statements)
TAX-FREE INSTRUMENTS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
September 30, 1994
(unaudited)
(1) ORGANIZATION
Tax-Free Instruments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a diversified, open-end, no-load
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.
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
Act.
B. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
C. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its tax-exempt income.
Accordingly, no provisions for federal tax are necessary. 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 on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
E. 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 September 30, 1994 is as
follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
<S> <C> <C>
California State, Daily VRDNs (Series C) 4/21/94 $ 10,034,700
California State, FB California Trust/Floating Rate Trust
Certificate, Weekly VRDNs (Series 10) 8/2/94 25,393,565
Oakland, CA, Redevelopment Agency Weekly VRTCs 4/19/89-9/10/92 5,100,000
Clipper Connecticut Tax Exempt Trust, Weekly VRDNs
(Series 1994-1) 5/6/94 5,000,000
Delaware Health Facilities Authority Weekly VRDNs
(Series 1985 BTP-19A) 8/24/93 25,194,000
Floating Rate Trust Certificate Weekly VRDNs 8/12/92 16,000,000
Floating Rate Trust Certificate Weekly VRDNs 8/12/92-7/8/94 2,250,000
Florida Department of Environment Protection, VRDCs/
IVRCs Trust (Series 1994A) 2/2/94 11,000,000
Maryland State Weekly VRDNs GO Bonds P-Floats
(First Series, 1993) 11/26/93 370,000
Washington Suburban Sanitary District, MD, Weekly VRDNs
(Series PT-13) 3/9/94 7,580,000
Massachusetts HFA, SFH Puttable Tax-Exempt Receipts
Weekly VRDNs (Series 13-B) 9/2/94 4,750,000
Passaic Valley, NJ, Water Commission Supply Revenue
Bonds Weekly VRDNs (PA-52) 12/30/93 2,220,000
Charlotte, NC, Revenue Refunding Certificates
of Participation Weekly VRDNs (PA-46) 5/18/94 3,000,000
Fayetteville, NC, Public Works Commission Revenue
Refunding Bonds Weekly VRDNs 5/13/94-6/15/94 6,720,000
NCNB Pooled Tax-Exempt Trust Weekly VRDNs
(Series 1990A) 1/3/92 2,375,000
NCNB Pooled Tax-Exempt Trust Weekly VRDNs
(Series 1990B) 8/1/91 7,475,000
North Carolina Eastern Municipal Power Agency, Weekly
VRDNs (P-Floats)/(Series PA-34B) 11/22/93 2,260,000
Texas State, Public Finance Authority Weekly VRDNs
(P-Floats)/(Series 1992C) 11/26/93 4,500,000
Fairfax County, VA, Water Authority Revenue Bonds Weekly
VRDNs (Series PA-9)/(Series 1992) 7/18/94 1,140,000
Roanoke County, VA, Water System Revenue Weekly
VRDNs (P-Floats) 8/22/94 2,000,000
Washington State, GO Bonds Weekly VRDNs (Series P-12A) 12/2/93 $ 2,850,000
Clipper Tax Exempt Trust, Weekly VRDNs (Series 1993-1) 9/27/93 15,000,000
LaSalle National Bank Bustops Trust Weekly VRDNs
(Series 1993A) 3/17/93 9,936,882
LaSalle National Bank LeaseTops Trust Weekly VRDNs
(Series 1994B) 6/15/94 4,395,741
Merrill Lynch Puttable Floats/Rates Trust Weekly VRDNs
(Series PP2) 7/1/94 13,600,000
</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,
<S> <C> <C>
INVESTMENT SHARES 1995* 1994
- ------------------------------------------------------------------------------ ---------------- ----------------
Shares sold 2,561,290,966 6,721,614,467
- ------------------------------------------------------------------------------
Shares issued to shareholders
in payment of dividends declared 13,377,093 24,173,179
- ------------------------------------------------------------------------------
Shares redeemed (2,698,803,991) (7,037,862,523)
- ------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from
Investment share transactions (124,135,932) (292,074,877)
- ------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES 1995* 1994**
- ------------------------------------------------------------------------------ ----------------------------------
Shares sold 672,415,584 956,636,227
- ------------------------------------------------------------------------------
Shares issued to shareholders
in payment of dividends declared 654,607 624,209
- ------------------------------------------------------------------------------
Shares redeemed (668,895,679) (566,804,093)
- ------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from
Institutional Services share transactions 4,174,512 390,456,343
- ------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from
Trust share transactions 119,961,420 98,381,466
- ------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
* Six months ended September 30, 1994.
** 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
INVESTMENT ADVISORY FEE--Federated Management, the Trust's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to 0.50 of 1% of the Trust's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee. The Adviser can modify or
terminate this voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust
with administrative personnel and services. The FAS fee is based on the level of
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors for the period. The administrative fee received during the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICE PLAN--Under the terms of a Shareholder Services 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. The fee is to obtain
certain personal services for shareholders and to maintain shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT FEE--Federated Services Company ("FServ")
serves as transfer and dividend disbursing agent for the Trust. The FServ fee is
based on the size, type, and number of accounts and transactions made by
shareholders.
INTERFUND TRANSACTIONS--During the six months ended September 30, 1994, the
Trust engaged in purchase and sale transactions with other affiliated Funds at
current value on the date of the transaction pursuant to Rule 17a-7 under the
Act amounting to $954,085,000 and $996,130,000, respectively.
Certain of the Officers and Trustees or Directors of the Trust are Officers and
Trustees or Directors of the above companies.
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
David M. Taylor
Assistant Treasurer
Charles H. Field
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government, the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including
possible loss of principal. Although money market funds seek to maintain a
stable net asset value of $1.00 per share, there is no assurance that they
will be able to do so.
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] FEDERATED SECURITIES CORP.
-------------------------------------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
876924101
876924200
8110107 (11/94)
