[LOGO] Federated Investors
Tax-Free
Instruments
Trust
13th Semi-Annual Report
September 30, 1995
Established 1981
MONEY MARKETS
President's Message
Dear Shareholder:
I am pleased to present the 13th Semi-Annual Report to Shareholders for
Tax-Free Instruments Trust for the six-month period ended September 30, 1995.
The report begins with an interview with the fund's portfolio manager, Jeff
Kozemchak, Vice President, Federated Management, and follows with a complete
list of the fund's holdings and its financial statements. In addition,
Financial Highlights tables have been included for Institutional Service Shares
and Investment Shares.
As a shareholder in this money market mutual fund, you're putting your cash to
work pursuing daily income free from federal regular income tax.* And, you have
daily access to your invested cash, which is managed to remain stable in
value.**
At the end of the report period, the fund's portfolio was highly diversified
among short-term money market securities issued by municipalities across the
U.S. Dividends paid to shareholders during the period totaled $0.02 per
Investment Share and $0.02 per Institutional Service Share. Net assets stood at
$1.7 billion on the last day of the period.
Thank you for selecting Tax-Free Instruments Trust to pursue tax-free income
from your cash. We'll continue to keep you up to date on your investment, and
we welcome your comments and suggestions.
Sincerely,
Glen R. Johnson
President
November 15, 1995
*Income may be subject to the federal alternative minimum tax, state and local
taxes.
**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. An
investment in this fund is neither insured nor guaranteed by the U.S.
government.
Investment Review
Jeff A. Kozemchak, CFA
Vice President
Federated Management
Q Let's begin with an overview of the economic and interest rate environment
during the six month reporting period.
A In early July, amid concerns that economic reports were continuing to show
weakness in various sectors of the economy, and that the effects of the seven
Federal Funds rate increases that began in February of 1994 were finally
taking hold, the Federal Reserve Board (``Fed'') signaled a change in the
direction of monetary policy by cutting the Federal Funds target rate from
6.00% to 5.75%.
In the second quarter, consumer spending remained sluggish, and business
spending on plant and equipment rose less rapidly than in other recent
quarters. With final sales lagging, firms sought to hold down production and
employment in order to keep inventories under control. Broad indexes of
consumer and producer prices, a measure of inflation, showed a slowing after
having picked up early in the year. Growth of labor compensation costs also
remained subdued.
In the third quarter, signs of a pick-up in economic activity emerged again.
Real Gross Domestic Product grew at a brisk rate of 4.2%. Consumer spending
appeared to be growing at a moderate rate, housing demand seemed to be
rebounding sharply, and business investment remained on a solid upward trend.
However, inflationary pressures have failed to materialize.
Over this six-month period, short-term interest rates have declined as market
participants have adjusted their expectations regarding economic growth and the
need for future short-term interest rate cuts by the Fed. The yield on the
three-month Treasury bill fell from 5.94% at the beginning of April to 5.40% on
September 29. Over the same period, the yield on one-year Treasury bills fell
from 6.50% to 5.65%, a decline of 85 basis points.
Q How has the fund's yield responded to this rate environment?
A The fund's portfolio and yield are affected not only by Fed policy, but by
supply and demand imbalances unique to the municipal money markets. Because
of these imbalances, over time, the fund's yield may exhibit more upward and
downward movement than Treasury yields. The seven-day net yield of the fund's
Institutional Service Shares began the period at 3.66% and ended the period at
3.67%. Over the six month period, the seven-day net yield averaged 3.56%, which
corresponds to a tax-equivalent yield (pre-tax yield) of 5.89% for those
investors at the highest federal tax rate.*
For the Investment Shares, the seven-day net yield was 3.51% at the beginning,
3.52% at the end, and averaged 3.41% over the six month period. This 3.41%
seven-day net yield average corresponds to a tax-equivalent yield (pre-tax
yield) of 5.65% for those investors at the highest federal tax rate.*
Q Have you made any strategic changes to the fund's portfolio in response to
market developments?
A We continued to add to the fund's holdings of variable rate demand notes
(VRDNs) in order to position the fund to take advantage of year-end supply
and demand technical factors. VRDNs increase both the liquidity and the
responsiveness of the portfolio allowing the fund to capture potential yield
premiums due to the imbalances of supply and demand in December.
Also, we extended the average maturity of the fund from a target range of 40-50
days in the second quarter, to 55-65 days in the third quarter. This extension
was accomplished with fixed-rate note purchases that allow us to lock-in
attractive interest rates and help dampen the negative effect on the fund's
yield of possible future cuts in short-term interest rates by the Fed.
*Performance quoted represents past performance and is not indicative of future
results. Yield will vary.
Q As 1996 approaches, what is your outlook on rates and portfolio strategy?
A In light of recent signs of economic growth in the third quarter, we expect
interest rate policy at the Fed to remain on hold through the end of the
year. We still believe the Fed's next move for the Federal Funds target
rate will be downward, and that the economy will show more signs of slowing in
the fourth quarter and the first quarter of 1996. With restrained inflation and
improved chances for a balanced budget agreement, the Fed could have
significant room to cut short-term interest rates in 1996. Notwithstanding Fed
policy, we expect that tax-free supply and demand technicals will dominate our
market in December and January, and we are positioning the composition of the
fund accordingly. Reflecting this outlook, we will continue to look for value
in fixed-rate notes out the municipal money market yield curve, so as to
lock-in yields when they are attractive relative to comparable taxable
securities.
[LOGO] FEDERATED FUNDS
Where Experts Invest
Federated Securities Corp. is the distributor of the fund.
A Subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 876924101
Cusip 876924200
8110107 (11/95)
Tax-Free Instruments Trust
Portfolio of Investments
- --------------------------------------------------------------------------------
September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--99.2%
- ----------------------------------------------------------------------------------
ALABAMA--1.0%
-------------------------------------------------------------------
$ 1,500,000 Alabama State IDA, Revenue Bonds Weekly VRDNs (Southern Bag
Corporation, Ltd.)/(SouthTrust Bank of Alabama, Birmingham LOC) P-1 $ 1,500,000
-------------------------------------------------------------------
3,800,000 Homewood, AL IDA Weekly VRDNs (Mountain Brook Inn (Homewood
AL))/(SouthTrust Bank of Alabama, Birmingham LOC) P-1 3,800,000
-------------------------------------------------------------------
7,575,000 St. Clair County, AL IDB, (Series 1993) Weekly VRDNs (Ebsco
Industries, Inc.)/(National Australia Bank Ltd., Melbourne LOC) A-1+ 7,575,000
-------------------------------------------------------------------
5,000,000 Sumter County, AL IDA, Industrial Revenue Bonds (Series 1995A)
Weekly VRDNs (Fulghum Fibres Project (AL))/(First Alabama Bank,
Birmingham LOC) P-1 5,000,000
------------------------------------------------------------------- ----------------
Total 17,875,000
------------------------------------------------------------------- ----------------
ARIZONA--1.1%
-------------------------------------------------------------------
692,200 Gilbert, AZ IDA Weekly VRDNs (Foxworth-Galbraith Lumber Co.)/(Bank
One, Arizona N.A. LOC) P-1 692,200
-------------------------------------------------------------------
9,725,000 Maricopa County, AZ, IDA (Series 1984) Weekly VRDNs (Gannett Co.,
Inc.) P-1 9,725,000
-------------------------------------------------------------------
1,701,000 Maricopa County, AZ, IDA Weekly VRDNs (Chaparral City Water
Services)/(Bank One, Arizona N.A. LOC) P-1 1,701,000
-------------------------------------------------------------------
1,835,000 Pima County, AZ IDA Weekly VRDNs (A & P Investments)/(Bank One,
Arizona N.A. LOC) P-1 1,835,000
-------------------------------------------------------------------
5,203,000 Pima County, AZ IDA Weekly VRDNs (BJR Investments, Inc.)/(Bank One,
Arizona N.A. LOC) P-1 5,203,000
------------------------------------------------------------------- ----------------
Total 19,156,200
------------------------------------------------------------------- ----------------
ARKANSAS--0.4%
-------------------------------------------------------------------
3,685,000 Little Rock, AR Pulaski County School District, (Series 1995),
4.20% TRANs, 12/28/1995 MIG1 3,685,000
-------------------------------------------------------------------
$ 2,500,000 Pocahontas, AR , IDRB (Series 1995) Weekly VRDNs (MacLean ESNA L.P.
Project)/(Northern Trust Co., Chicago, IL LOC) A-1+ $ 2,500,000
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
ARKANSAS--CONTINUED
-------------------------------------------------------------------
Total 6,185,000
------------------------------------------------------------------- ----------------
CALIFORNIA--10.8%
-------------------------------------------------------------------
10,000,000 California HFA, Home Mortgage Revenue Bonds (1995 Series E), 4.60%
TOBs (FGIC INS), Mandatory Tender
2/1/1996 A-1+ 10,000,000
-------------------------------------------------------------------
8,400,000 California PCFA, (Series 1991) Weekly VRDNs (North County, CA
Recycling & Energy Recovery)/(Union Bank of Switzerland, Zurich
LOC) A-1+ 8,400,000
-------------------------------------------------------------------
19,000,000 California School Cash Reserve Program Authority, (Series 1995 A),
4.75% TRANs (MBIA Insurance Corporation INS), 7/3/1996 SP-1+ 19,138,015
-------------------------------------------------------------------
4,000,000 California State, 8.50% BONDs, 11/1/1995 NR(3) 4,012,109
-------------------------------------------------------------------
38,200,000 California State, Revenue Anticipation Warrants (Series C), 5.75%
RANs (Bank of America NT and SA, San Francisco, Bank of Nova
Scotia, Toronto, Banque Nationale de Paris, Canadian Imperial Bank
of Commerce, Toronto, Chemical Bank, New York, Citibank NA, New
York, Credit Suisse, Zurich, Morgan Guaranty Trust Co., New York,
National Westminster Bank, PLC, London, Societe Generale North
America, Inc., Sumitomo Bank Ltd., Osaka, Swiss Bank Corp., Basle,
Toronto-Dominion Bank and Westdeutsche Landesbank Girozentrale
LOCs), 4/25/1996 SP-1 38,397,718
-------------------------------------------------------------------
$ 10,000,000 (a)Clipper CA Tax-Exempt Trust, (94-2) Weekly VRDNs (California
State)/(State Street Bank and Trust Co. LIQ)/ (Bank of America NT
and SA, San Francisco, Bank of Nova Scotia, Toronto, Banque
Nationale de Paris, Canadian Imperial Bank of Commerce, Toronto,
Chemical Bank, New York, Citibank NA, New York, Credit Suisse,
Zurich, Morgan Guaranty Trust Co., New York, National Westminster
Bank, PLC, London, Societe Generale North America, Inc., Sumitomo
Bank Ltd., Osaka, Swiss Bank Corp., Basle, Toronto-Dominion Bank
and Westdeutsche Landesbank Girozentrale LOCs) VMIG1 $ 10,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
CALIFORNIA--CONTINUED
-------------------------------------------------------------------
11,000,000 Kern County, CA Board of Education, 4.50% TRANs,
6/28/1996 SP-1+ 11,043,096
-------------------------------------------------------------------
1,500,000 Los Angeles County, CA Metropolitan Transportation Authority,
General Revenue Bonds, (Series 1995-A) Weekly VRDNs (Union Station
Gateway Project)/(FSA INS)/(Societe Generale, Paris LIQ) A-1+ 1,500,000
-------------------------------------------------------------------
10,000,000 Los Angeles County, CA Unified School District, 4.50% TRANs,
7/3/1996 SP-1+ 10,058,157
-------------------------------------------------------------------
11,200,000 Moreno Valley Unified School District, CA, 4.50% TRANs, 7/5/1996 MIG1 11,257,324
-------------------------------------------------------------------
1,200,000 Orange County, CA IDA, (Series 1985B--Niguel Summit II) Weekly
VRDNs (Hon Development Corp.)/(Bank of America NT and SA, San
Francisco LOC) VMIG1 1,200,000
-------------------------------------------------------------------
33,850,000 Orange County, CA IDA, (Series 1991A) Weekly VRDNs (The
Lakes)/(Citibank NA, New York LOC) A-1 33,850,000
-------------------------------------------------------------------
6,000,000 Orange County, CA Local Transportation Authority, Sales Tax Revenue
Notes, 3.70% CP (Industrial Bank of Japan Ltd., Tokyo LOC),
Mandatory Tender 10/10/1995 P-1 6,000,000
-------------------------------------------------------------------
12,000,000 Paramount Unified School District, CA, 4.50% TRANs,
7/5/1996 MIG1 12,061,419
-------------------------------------------------------------------
$ 7,800,000 Riverside County, CA, (Series A) Weekly VRDNs (Riverside, CA Public
Facility Finance)/(Sanwa Bank Ltd, Osaka LOC) MIG1 $ 7,800,000
------------------------------------------------------------------- ----------------
Total 184,717,838
------------------------------------------------------------------- ----------------
COLORADO--0.9%
-------------------------------------------------------------------
4,000,000 Denver, CO City & County Airport Authority, (Series 1991-B) Weekly
VRDNs (Sanwa Bank Ltd, Osaka LOC) A-1+ 4,000,000
-------------------------------------------------------------------
4,800,000 Moffat County, CO, PCR (Series 1984) Weekly VRDNs (Colorado--UTE
Electric Associates.)/(NRUCFC GTD) A-1 4,800,000
-------------------------------------------------------------------
6,690,000 Weld County, CO, IDRB (Series 1994) Weekly VRDNs (The Dovatron
International Inc Project)/(Norwest Bank Minnesota, Minneapolis
LOC) P-1 6,690,000
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
COLORADO--CONTINUED
-------------------------------------------------------------------
Total 15,490,000
------------------------------------------------------------------- ----------------
CONNECTICUT--3.8%
-------------------------------------------------------------------
5,000,000 (a)Clipper Connecticut Tax Exempt Trust, (Series 1994-1) Weekly
VRDNs (State Street Bank and Trust Co. LIQ) VMIG1 5,000,000
-------------------------------------------------------------------
7,500,000 Connecticut Development Authority, PCR (Series 1993A) Weekly VRDNs
(Western Mass Electric Co.)/(Union Bank of Switzerland, Zurich LOC) A-1 7,500,000
-------------------------------------------------------------------
17,305,000 Connecticut Development Health Care Facilities Weekly VRDNs
(Independence Living)/(Chemical Bank, New York LOC) VMIG1 17,305,000
-------------------------------------------------------------------
32,000,000 Connecticut State Transportation Infrastructure Authority Weekly
VRDNs (Connecticut State)/(Industrial Bank of Japan Ltd., Tokyo
LOC) A-1 32,000,000
-------------------------------------------------------------------
2,100,000 Hartford, CT Redevelopment Authority Weekly VRDNs (Underwood
Towers)/(FSA INS)/(Barclays Bank PLC, London LIQ) A-1+ 2,100,000
------------------------------------------------------------------- ----------------
Total 63,905,000
------------------------------------------------------------------- ----------------
FLORIDA--2.7%
-------------------------------------------------------------------
$ 2,000,000 Alachua County, FL Health Facilities Authority, Health Facility
Revenue Bonds (Series 1991) Weekly VRDNs (North Florida Retirement
Village)/(Kredietbank N.V., Brussels LOC) A-1 $ 2,000,000
-------------------------------------------------------------------
1,970,000 Florida HFA Weekly VRDNs (Cornerstone)/(PNC Bank, N.A. LOC) A-1 1,970,000
-------------------------------------------------------------------
6,895,000 Florida State Board of Education Administration, (CR 48)/(Series
1989A), 4.00% TOBs (Citibank NA, New York LIQ), Optional Tender
12/1/1995 NR(2) 6,895,000
-------------------------------------------------------------------
7,340,000 Florida State Board of Education Administration, (CR 48D)/(Series
1989A), 4.00% TOBs (Citibank NA, New York LIQ), Optional Tender
12/1/1995 NR(2) 7,340,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
FLORIDA--CONTINUED
-------------------------------------------------------------------
3,615,000 Florida State Board of Education Administration, (CR 49)/(Series
1989A), 4.00% TOBs (Citibank NA, New York LIQ), Optional Tender
12/1/1995 NR(2) 3,615,000
-------------------------------------------------------------------
3,910,000 Florida State Board of Education Administration, (CR55), (Series
1989A), 4.00% TOBs (Citibank NA, New York LIQ), Optional Tender
12/1/1995 NR(2) 3,910,000
-------------------------------------------------------------------
3,000,000 (a)Florida State Board of Education Administration, Puttable
Tax-Exempt Receipts (Series 10) Weekly VRDNs (Florida
State)/(Morgan Guaranty Trust Co., New York LIQ) VMIG1 3,000,000
-------------------------------------------------------------------
3,000,000 Greater Orlando (FL) Aviation Authority, Airport Facilities
Subordinated CP Notes (Series B), 3.90% CP, Mandatory Tender
11/28/1995 P-1 3,000,000
-------------------------------------------------------------------
5,500,000 Hillsborough County, FL Aviation Authority, Bond Anticipation
Commercial Paper Notes, 3.90% CP (Tampa International
Airport)/(National Westminster Bank, PLC, London LOC), Mandatory
Tender 11/9/1995 A-1+ 5,500,000
-------------------------------------------------------------------
1,000,000 Hillsborough County, FL IDA, (Series 1988) Weekly VRDNs (Florida
Steel Corp.)/(Bankers Trust Co., New York LOC) P-1 1,000,000
-------------------------------------------------------------------
$ 3,000,000 Jacksonville, FL HFDC, Health Facilities Revenue Bonds (Series
1994) Weekly VRDNs (River Garden/The Coves Project)/(First Union
National Bank, Charlotte, N.C. LOC) A-1 $ 3,000,000
-------------------------------------------------------------------
4,500,000 Martin County, FL School District, District Operating Millage Tax
Anticipation Notes (Series 1995), 4.25% TANs, 6/8/1996 NR 4,502,879
-------------------------------------------------------------------
400,000 Suwannee County, FL, (Series 1989) Weekly VRDNs (Advent Christian
Village Project)/(Barnett Bank of Jacksonville LOC) VMIG1 400,000
------------------------------------------------------------------- ----------------
Total 46,132,879
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
GEORGIA--4.6%
-------------------------------------------------------------------
2,500,000 Atlanta, GA, Urban Residential Finance Authority, Multifamily
Rental Housing Revenue Refunding Bonds (Series 1988A), 3.70% TOBs
(West Paces Club Towers Project)/(Sanwa Bank Ltd, Osaka LOC),
Optional Tender 11/1/1995 A-1+ 2,500,000
-------------------------------------------------------------------
3,445,000 Bartow County School District, GA, (Series 1995), 4.68% TANs,
12/29/1995 NR(3) 3,447,023
-------------------------------------------------------------------
4,950,000 Douglas County School District, GA, (Series 1995), 4.00% TANs,
12/29/1995 NR(3) 4,953,544
-------------------------------------------------------------------
2,900,000 Fulco, GA Hospital Authority, (Series 1989), 3.55% CP (St. Joseph's
Hospital of Atlanta)/(Trust Company Bank, Atlanta LOC), Mandatory
Tender 10/3/1995 A-1+ 2,900,000
-------------------------------------------------------------------
4,000,000 Fulton County, GA Housing Authority, Multifamily Housing Revenue
Refunding Bonds (Series 1994) Weekly VRDNs (Spring Creek Crossing
Project)/(Wachovia Bank of Georgia NA, Atlanta LOC) A-1+ 4,000,000
-------------------------------------------------------------------
28,246,004 Georgia Municipal Association Weekly VRDNs (Credit Suisse, Zurich
LIQ)/(MBIA Insurance Corporation LOC) A-1+ 28,246,004
-------------------------------------------------------------------
4,850,000 Georgia State HFA, (Series 1987B), 4.00% TOBs (Citibank NA, NY
LIQ), Optional Tender 12/1/1995 NR(2) 4,850,000
-------------------------------------------------------------------
$ 3,650,000 Glynn County, GA, (Series 1995), 4.00% TANs,
12/29/1995 NR $ 3,651,290
-------------------------------------------------------------------
3,180,000 La Grange, GA, Multi-Family Housing Authority, Revenue Bonds, 4.45%
TOBs (Lee's Crossing Project Phase II)/(Barnett Bank of
Jacksonville LOC), Optional Tender 11/1/1995 P-1 3,180,000
-------------------------------------------------------------------
3,000,000 La Grange, GA, Multi-Family Housing Authority, Revenue Bonds, 4.45%
TOBs (Lee's Crossing Project Phase I)/(Barnett Bank of Jacksonville
LOC), Optional Tender 11/1/1995 P-1 3,000,000
-------------------------------------------------------------------
1,600,000 Municipal Electric Authority of Georgia, 3.70% CP, Mandatory Tender
10/6/1995 VMIG1 1,600,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
GEORGIA--CONTINUED
-------------------------------------------------------------------
4,500,000 Richmond County, GA Development Authority, Solid Waste Disposal
Revenue Bonds, (Series 1995) Weekly VRDNs (Federal Paper Board Co.,
Inc.)/(Wachovia Bank of Georgia NA, Atlanta LOC) A-1+ 4,500,000
-------------------------------------------------------------------
5,500,000 Rockdale County, GA Hospital Authority, Revenue Anticipation
Certificates (Series 1994) Weekly VRDNs (Rockdale Hospital)/(Trust
Company Bank, Atlanta LOC) VMIG1 5,500,000
-------------------------------------------------------------------
5,000,000 Savannah, GA EDA, (Series 1995A) Weekly VRDNs (Home Depot, Inc.) P-1 5,000,000
------------------------------------------------------------------- ----------------
Total 77,327,861
------------------------------------------------------------------- ----------------
ILLINOIS--7.1%
-------------------------------------------------------------------
1,650,000 Champaign, IL, IDRB Weekly VRDNs (Christie Clinic)/ (National City
Bank, Indiana LOC) A-1 1,650,000
-------------------------------------------------------------------
1,033,000 Illinois Development Finance Authority Weekly VRDNs (Newlywed
Food)/(Mellon Bank NA, Pittsburgh LOC) A-1 1,033,000
-------------------------------------------------------------------
4,000,000 Illinois Development Finance Authority, Adjustable
Rate IDRB (Series 1995) Weekly VRDNs (Dickson Weatherproof Nail Co.
Project)/(Bank One, Chicago LOC) P-1 4,000,000
-------------------------------------------------------------------
$ 30,000,000 Illinois Development Finance Authority, Var/Fixed Rate Demand
Revenue Bonds (Series 1994) Weekly VRDNs (Chicago Symphony
Orchestra Project)/(Northern Trust Co., Chicago, IL and Sanwa Bank
Ltd, Osaka LOCs) A-1+ $ 30,000,000
-------------------------------------------------------------------
2,500,000 Illinois Development Finance Authority, Variable Rate EDRB (Series
1995) Weekly VRDNs (Evapco, Inc. Project)/(Nationsbank of Maryland,
N.A. LOC) A-1 2,500,000
-------------------------------------------------------------------
7,500,000 Illinois Educational Facilities Authority, 3.70% CP (Field Museum
of Natural History)/(Sanwa Bank Ltd, Osaka LOC), Mandatory Tender
11/8/1995 VMIG1 7,500,000
-------------------------------------------------------------------
40,000,000 Illinois Health Facilities Authority, Variable Rate Demand Revenue
Bonds (Series 1985B) Weekly VRDNs (OSF Health Care Systems)/(Bank
of America Illinois LIQ) VMIG1 40,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
ILLINOIS--CONTINUED
-------------------------------------------------------------------
18,600,000 Lisle (Village of), IL, Multi-Family Housing Mortgage Revenue
Bonds, (1985 Series A) Weekly VRDNs (Four Lakes Project)/(Chemical
Bank, New York LOC) A-1 18,600,000
-------------------------------------------------------------------
2,200,000 Martinsville, IL, Adjustable Rate IDRB (Series 1995) Weekly VRDNs
(PAP-R Products Company Project)/ (Bank One, Chicago LOC) P-1 2,200,000
-------------------------------------------------------------------
4,750,000 Mendota, IL, Variable Rate Demand IDRB (Series 1995) Weekly VRDNs
(Minnesota Diversified Products, Inc. Project)/(Norwest Bank
Minnesota, Minneapolis LOC) A-1+ 4,750,000
-------------------------------------------------------------------
2,000,000 Naperville, IL, Economic Development Revenue Refunding Bonds
(Series 1994) Weekly VRDNs (Independence Village Associates, Ltd
Project)/(First Bank NA, Minneapolis LOC) P-1 2,000,000
-------------------------------------------------------------------
3,000,000 Oakbrook Terrace, IL, IDR (Series 1993) Weekly VRDNs (La Quinta
Inns, Inc. )/(Nationsbank of Texas, N.A. LOC) P-1 3,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
ILLINOIS--CONTINUED
-------------------------------------------------------------------
$ 2,635,000 Rockford, IL, EDRB, 4.95% TOBs (Independence Village of
Rockford)/(Banque Paribas, Paris LOC), Optional Tender 12/1/1995 A-1 $ 2,635,000
------------------------------------------------------------------- ----------------
Total 119,868,000
------------------------------------------------------------------- ----------------
INDIANA--2.8%
-------------------------------------------------------------------
2,200,000 Bluffton, IN, Economic Development Refunding Revenue Bonds Weekly
VRDNs (Blount, Inc.)/(Morgan Guaranty Trust Co., New York LOC) P-1 2,200,000
-------------------------------------------------------------------
6,600,000 Elkhart, IN, Community Schools, 5.75% TANs, 12/29/1995 NR(2) 6,605,723
-------------------------------------------------------------------
3,330,000 Hamilton County, IN, Variable Rate Demand EDRB (Series 1995) Weekly
VRDNs (Fabcon L.L.C. Project)/ (Norwest Bank Minnesota, Minneapolis
LOC) P-1 3,330,000
-------------------------------------------------------------------
2,900,000 Huntington County, IN Community School Corp., 5.00% TANs,
12/29/1995 NR(3) 2,902,702
-------------------------------------------------------------------
25,000,000 Indiana Bond Bank, Advance Funding Program Notes (Series 1995 A-3)
VRNs, 1/10/1996 SP-1+ 25,000,000
-------------------------------------------------------------------
7,000,000 Richmond, IN EDA Weekly VRDNs (Gannett Co., Inc.) P-1 7,000,000
------------------------------------------------------------------- ----------------
Total 47,038,425
------------------------------------------------------------------- ----------------
IOWA--0.4%
-------------------------------------------------------------------
3,500,000 Des Moines, IA, IDR Bonds (Series 1994) Weekly VRDNs (Printer,
Inc.)/(Norwest Bank Minnesota, Minneapolis LOC) A-1+ 3,500,000
-------------------------------------------------------------------
3,000,000 Marshalltown Community School District, IA, (Series 1995), 4.375%
RANs, 6/28/1996 NR 3,006,927
------------------------------------------------------------------- ----------------
Total 6,506,927
------------------------------------------------------------------- ----------------
KANSAS--0.5%
-------------------------------------------------------------------
6,000,000 Kansas Development Finance Authority, Adjustable Rate Multifamily
Housing Revenue Bonds (Series 1995) Weekly VRDNs (First Kansas
State Partnership, L.P.)/ (Boatmen's National Bank of St. Louis
LOC) VMIG1 6,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
KANSAS--CONTINUED
-------------------------------------------------------------------
$ 2,000,000 Olathe, KS, Industrial Revenue Bonds (Series 1995) Weekly VRDNs
(Garmin International, Inc. Project)/ (Boatmen's National Bank of
St. Louis LOC) A-1 $ 2,000,000
------------------------------------------------------------------- ----------------
Total 8,000,000
------------------------------------------------------------------- ----------------
KENTUCKY--4.4%
-------------------------------------------------------------------
5,100,000 Clark County, KY, Adjustable Rate Industrial Building Revenue
Refunding Bonds (Series 1995) Weekly VRDNs (International
Processing Corp)/(Bank One, Lexington, NA LOC) P-1 5,100,000
-------------------------------------------------------------------
20,450,000 Daviess County, KY Hospital Revenue Authority Weekly VRDNs
(Owensboro Daviess Hospital)/(Sumitomo Bank Ltd., Osaka LOC) P-1 20,450,000
-------------------------------------------------------------------
2,160,000 Jefferson County, KY, Adjustable Rate Industrial Building Revenue
Bonds (Series 1995) Weekly VRDNs (Derby Industries, Inc.
Project)/(Liberty National Bank & Trust Co. LOC) P-1 2,160,000
-------------------------------------------------------------------
45,800,000 Kentucky Pollution Abatement & Water Resource Finance Authority
Daily VRDNs (Toyota Motor Credit Corp.) A-1+ 45,800,000
-------------------------------------------------------------------
1,800,000 Owensboro, KY, Limited Obligation Revenue Bonds, 4.00% TOBs (Dart
Polymers)/(NBD Bank, N.A., Detroit, MI LOC), Optional Tender
11/30/1995 P-1 1,800,000
------------------------------------------------------------------- ----------------
Total 75,310,000
------------------------------------------------------------------- ----------------
MAINE--0.2%
-------------------------------------------------------------------
2,750,000 Gardner, ME IDB Weekly VRDNs (Associated Grocers)/ (Westpac
Banking, Corp., Sydney LOC) P-1 2,750,000
------------------------------------------------------------------- ----------------
MARYLAND--0.2%
-------------------------------------------------------------------
1,300,000 Maryland Health & Higher Educational Facilities Authority, (Series
1992A) Weekly VRDNs (Carroll County, MD General
Hospital)/(Nationsbank of Maryland, N.A. LOC) P-1 1,300,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
MARYLAND--CONTINUED
-------------------------------------------------------------------
$ 1,965,000 Maryland State IDFA Kelly Springfield Tire, (Series 1991) Weekly
VRDNs (Maryland Academy of Sciences Facility)/(Nationsbank of North
Carolina N.A. LOC) VMIG1 $ 1,965,000
-------------------------------------------------------------------
600,000 Maryland State IDFA Kelly Springfield Tire, Economic Development
Revenue Refunding Bonds (Series 1994) Weekly VRDNs (Johnson
Controls, Inc.) VMIG1 600,000
------------------------------------------------------------------- ----------------
Total 3,865,000
------------------------------------------------------------------- ----------------
MASSACHUSETTS--6.1%
-------------------------------------------------------------------
6,000,000 Attleboro, MA, (Lot A), 4.10% BANs, 12/14/1995 NR(4) 6,001,193
-------------------------------------------------------------------
11,879,500 (a)Clipper, MA Tax Exempt Trust Weekly VRDNs (State Street Bank and
Trust Co. LIQ) VMIG1 11,879,500
-------------------------------------------------------------------
6,300,000 Massachusetts Bay Transit Authority, (Series A), 5.50% RANs,
3/1/1996 SP-1 6,348,020
-------------------------------------------------------------------
9,100,000 Massachusetts Bay Transit Authority, (Series C), 3.70% CP
(Westdeutsche Landesbank Girozentrale LOC), Mandatory Tender
10/16/1995 SP-1+ 9,100,000
-------------------------------------------------------------------
16,000,000 Massachusetts Bay Transit Authority, (Series C), 3.80% CP
(Westdeutsche Landesbank Girozentrale LOC), Mandatory Tender
10/17/1995 SP-1+ 16,000,000
-------------------------------------------------------------------
5,650,000 Massachusetts HEFA, (Series E) Weekly VRDNs (Capital Asset
Program)/(First National Bank of Chicago LIQ)/ (Sanwa Bank Ltd,
Osaka LOC) VMIG1 5,650,000
-------------------------------------------------------------------
5,400,000 Massachusetts Municipal Wholesale Electric Company, Variable Rate
Power Supply System Revenue Bonds (1994 Series C) Weekly VRDNs
(Canadian Imperial Bank of Commerce, Toronto LOC) A-1+ 5,400,000
-------------------------------------------------------------------
26,800,000 Massachusetts Water Resources Authority, (Series 1994), 3.80% CP
(Morgan Guaranty Trust Co., New York LOC), Mandatory Tender
1/16/1996 A-1+ 26,800,000
-------------------------------------------------------------------
5,000,000 Massachusetts Water Resources Authority, (Series 1994), 3.80% CP
(Morgan Guaranty Trust Co., New York LOC), Mandatory Tender
11/13/1995 A-1+ 4,998,750
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
MASSACHUSETTS--CONTINUED
-------------------------------------------------------------------
$ 2,000,000 Massachusetts, IFA, (Series 1992A) Weekly VRDNs (Ogden
Haverhill)/(Union Bank of Switzerland, Zurich LOC) A-1+ $ 2,000,000
-------------------------------------------------------------------
4,500,000 Massachusetts, IFA, (Series 1992B), 3.80% CP (New England Power
Co.), Mandatory Tender 1/16/1996 A-1 4,500,000
-------------------------------------------------------------------
4,300,000 Massachusetts, IFA, Adjustable Rate IDRB (Series 1995) Weekly VRDNs
(Dunsirn Industries, Inc. Project)/(Bank One, Milwaukee, WI N.A.
LOC) A-1+ 4,300,000
------------------------------------------------------------------- ----------------
Total 102,977,463
------------------------------------------------------------------- ----------------
MICHIGAN--2.0%
-------------------------------------------------------------------
3,500,000 Auburn Hills, MI EDC, Limited Obligation Multi-Option Revenue Bonds
(Series 1995) Weekly VRDNs (Suburban Tool, Inc.
Project)/(Huntington National Bank, Columbus, OH LOC) A-1+ 3,500,000
-------------------------------------------------------------------
950,000 Dearborn, MI Economic Development Corp, (Series 1990) Weekly VRDNs
(Exhibit Productions, Inc. Project)/ (First of America Bank,
Illinois LOC) P-1 950,000
-------------------------------------------------------------------
2,200,000 Kalamazoo, MI Economic Development Corp., 1995 Limited Obligation
Revenue Refunding Bonds Weekly VRDNs (Wyndham Project, MI)/(First
of America Bank, Illinois LOC) A1 2,200,000
-------------------------------------------------------------------
1,000,000 Michigan Job Development Authority, Variable Rate Demand Limited
Obligation Revenue Bonds Weekly VRDNs (Andersons Project)/(Credit
Lyonnais, Paris LOC) P-2 1,000,000
-------------------------------------------------------------------
2,390,000 Michigan State Hospital Finance Authority, (Series 1994) Weekly
VRDNs (Mt. Clemens General Hospital)/ (Comerica Bank, Detroit, MI
LOC) VMIG1 2,390,000
-------------------------------------------------------------------
2,300,000 Michigan State Hospital Finance Authority, (Series A) Weekly VRDNs
(OSF Health Care Systems) P-1 2,300,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
MICHIGAN--CONTINUED
-------------------------------------------------------------------
$ 1,000,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Series
1991) Weekly VRDNs (Martin Luther Memorial Home, Inc.)/(National
Australia Bank Ltd., Melbourne LOC) A-1 $ 1,000,000
-------------------------------------------------------------------
5,630,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Series
1995) Weekly VRDNs (United Waste Systems, Inc.)/(Bank of America
Illinois LOC) A-1 5,630,000
-------------------------------------------------------------------
3,500,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds (Series
1995) Weekly VRDNs (Wellness Plan Project)/(NBD Bank, N.A.,
Detroit, MI LOC) A-1+ 3,500,000
-------------------------------------------------------------------
4,820,000 Michigan Strategic Fund, Obligation Revenue Bonds (Series 1995)
Weekly VRDNs (Wayne Disposal-Oakland, Inc. Project)/(Comerica Bank,
Detroit, MI LOC) A-1 4,820,000
-------------------------------------------------------------------
1,000,000 Michigan Strategic Fund, Variable Rate Demand Limited Obligation
Revenue Bonds (Series 1995) Weekly VRDNs (Hercules Drawn Steel
Corporation Project)/(Society National Bank, Cleveland, OH LOC) P-1 1,000,000
-------------------------------------------------------------------
1,750,000 Michigan Strategic Fund, Variable Rate Demand Limited Obligation
Revenue Bonds, Series 1995 Weekly VRDNs (Welch Properties
Project)/(Old Kent Bank & Trust Co., Grand Rapids LOC) P-1 1,750,000
-------------------------------------------------------------------
2,600,000 Sterling Heights, MI EDC Weekly VRDNs (PPG Industries, Inc.) P-1 2,600,000
------------------------------------------------------------------- ----------------
Total 32,640,000
------------------------------------------------------------------- ----------------
MINNESOTA--1.4%
-------------------------------------------------------------------
7,900,000 Becker, MN, PCR (Series 1993A & B), 3.80% CP (Northern States Power
Co.), Mandatory Tender
11/22/1995 P-1 7,900,000
-------------------------------------------------------------------
5,000,000 Rochester, MN Health Care Facility Authority Weekly VRDNs (Mayo
Foundation) VMIG1 5,000,000
-------------------------------------------------------------------
8,500,000 Rochester, MN Health Care Facility Authority Weekly VRDNs (Mayo
Foundation) VMIG1 8,500,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
MINNESOTA--CONTINUED
-------------------------------------------------------------------
$ 2,950,000 Rosemount, MN, PCR (Series 1984) Weekly VRDNs (Koch Refining Co.) A-1+ $ 2,950,000
------------------------------------------------------------------- ----------------
Total 24,350,000
------------------------------------------------------------------- ----------------
MISSISSIPPI--0.2%
-------------------------------------------------------------------
4,000,000 Warren County, MS IDA Weekly VRDNs (Vesper Corp.)/(PNC Bank, N.A.
LOC) P-1 4,000,000
------------------------------------------------------------------- ----------------
MISSOURI--0.8%
-------------------------------------------------------------------
5,180,000 Missouri Development Finance Board, (Series 1995) Weekly VRDNs
(Wilson Trailer Sales, Inc. Project)/ (Norwest Bank Minnesota,
Minneapolis LOC) AA 5,180,000
-------------------------------------------------------------------
2,000,000 Missouri St. Health & Education Facility Authority Daily VRDNs
(Washington University)/(Morgan Guaranty Trust Co., New York LIQ) A-1+ 2,000,000
-------------------------------------------------------------------
5,000,000 Missouri State Environmental Improvement & Energy Authority, 4.00%
CP (Kansas City Power And Light Co.), Mandatory Tender 10/11/1995 A-1 5,000,000
-------------------------------------------------------------------
1,800,000 Sedalia, MO IDA Weekly VRDNs (Cooper Industries, Inc.)/(Sanwa Bank
Ltd, Osaka LOC) P-1 1,800,000
------------------------------------------------------------------- ----------------
Total 13,980,000
------------------------------------------------------------------- ----------------
MONTANA--0.4%
-------------------------------------------------------------------
4,000,000 Forsyth, Rosebud County MT, PCR Bonds Weekly VRDNs (Portland
General Electric Company)/(Swiss Bank Corp., Basle LOC) A-1+ 4,000,000
-------------------------------------------------------------------
2,300,000 Forsyth, Rosebud County MT, PCR Daily VRDNs (Pacificorp)/(Deutsche
Bank, AG LOC) P-1 2,300,000
------------------------------------------------------------------- ----------------
Total 6,300,000
------------------------------------------------------------------- ----------------
NEBRASKA--0.3%
-------------------------------------------------------------------
2,000,000 Douglas County, NE Weekly VRDNs (Majors Plastics, Inc.)/(Norwest
Bank Minnesota, Minneapolis LOC) P-1 2,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
NEBRASKA--CONTINUED
-------------------------------------------------------------------
$ 1,250,000 Douglas County, NE, Industrial Development Revenue Refunding Bonds
(Series 1994) Weekly VRDNs (Omaha Fixture Manufacturing
Project)/(NBD Bank, N.A., Detroit, MI LOC) P-1 $ 1,250,000
-------------------------------------------------------------------
2,225,000 Douglas County, NE, Variable Rate Demand Subordinated IDRB (Series
1995) Weekly VRDNs (Aksarben Foods, Inc. Project)/(Norwest Bank
Minnesota, Minneapolis LOC) P-1 2,225,000
------------------------------------------------------------------- ----------------
Total 5,475,000
------------------------------------------------------------------- ----------------
NEW HAMPSHIRE--1.7%
-------------------------------------------------------------------
9,000,000 New Hampshire Business Finance Authority, PCR Bonds (Series A),
4.00% CP (New England Power Co.), Mandatory Tender 12/13/1995 P-1 9,000,000
-------------------------------------------------------------------
13,900,000 New Hampshire Business Finance Authority, PCR Bonds (Series A),
4.00% CP (New England Power Co.), Mandatory Tender 12/14/1995 P-1 13,900,000
-------------------------------------------------------------------
2,100,000 New Hampshire Business Finance Authority, PCR Bonds (Series A),
4.20% CP (New England Power Co.), Mandatory Tender 10/18/1995 A-1 2,100,000
-------------------------------------------------------------------
3,500,000 New Hampshire Business Finance Authority, PCR Bonds (Series A),
4.20% CP (New England Power Co.), Mandatory Tender 10/19/1995 A-1 3,500,000
------------------------------------------------------------------- ----------------
Total 28,500,000
------------------------------------------------------------------- ----------------
NEW JERSEY--0.9%
-------------------------------------------------------------------
4,800,000 Mercer County, NJ Improvement Authority Weekly VRDNs (Mercer
County, NJ Pooled Governmental Loan Program)/(Credit Suisse, Zurich
LOC) A-1+ 4,800,000
-------------------------------------------------------------------
1,873,000 Moorestown Township, NJ, 3.99% BANs, 9/5/1996 NR(3) 1,873,529
-------------------------------------------------------------------
4,000,000 New Jersey EDA Weekly VRDNs (Center-For-Aging-- Applewood
Estates)/(Banque Paribas, Paris LOC) A-1 4,000,000
-------------------------------------------------------------------
$ 1,800,000 New Jersey EDA Weekly VRDNs (Church and Dwight, Inc.)/(Bank of Nova
Scotia, Toronto LOC) P-1 $ 1,800,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
NEW JERSEY--CONTINUED
-------------------------------------------------------------------
394,497 New Jersey EDA Weekly VRDNs (H.L. Bhasin)/(Dai-Ichi Kangyo Bank
Ltd., Tokyo LOC) P-1 394,497
-------------------------------------------------------------------
1,700,000 New Jersey EDA, Natural Gas Facilities Refunding Revenue Bonds
(Series 1995A) Daily VRDNs (New Jersey Natural Gas Company)/(AMBAC
INS)/(Union Bank of Switzerland, Zurich LIQ) VMIG1 1,700,000
------------------------------------------------------------------- ----------------
Total 14,568,026
------------------------------------------------------------------- ----------------
NEW MEXICO--0.6%
-------------------------------------------------------------------
3,300,000 Albuquerque, NM, Refunding Revenue Bonds (Series 1992) Weekly VRDNs
(Charter Hospital of Albuquerque, Inc.)/(Bankers Trust Co., New
York LOC) A1 3,300,000
-------------------------------------------------------------------
7,100,000 Las Cruces, NM, Variable Rate Demand IDRB (Series 1994A) Weekly
VRDNs (F & A Dairy Products, Inc. Project)/(Norwest Bank Minnesota,
Minneapolis LOC) P-1 7,100,000
------------------------------------------------------------------- ----------------
Total 10,400,000
------------------------------------------------------------------- ----------------
NEW YORK--6.1%
-------------------------------------------------------------------
10,000,000 Brentwood Union Free School District, NY, 4.375% TANs, 6/28/1996 NR 10,019,509
-------------------------------------------------------------------
40,000,000 New York City, NY, (Fiscal 1996 Series A), 4.50% RANs, 4/11/1996 SP-1+ 40,164,470
-------------------------------------------------------------------
6,820,000 New York State HFA Weekly VRDNs (Special Surgery
Hospital)/(Chemical Bank, New York LOC) VMIG1 6,820,000
-------------------------------------------------------------------
10,000,000 New York State Local Government Assistance Corp., (Series E) Weekly
VRDNs (Canadian Imperial Bank of Commerce, Toronto LOC) A-1+ 10,000,000
-------------------------------------------------------------------
12,250,000 (a)New York State Medical Care Facilities Finance Agency, Tender
Option Certificate (Series 1995A) Weekly VRDNs (Monte Fiore Medical
Center)/(AMBAC INS) A-1 12,250,000
-------------------------------------------------------------------
$ 6,500,000 Niagara County, NY IDA Weekly VRDNs (Allegheny Ludlum Corp.)/(PNC
Bank, N.A. LOC) A-1 $ 6,500,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
NEW YORK--CONTINUED
-------------------------------------------------------------------
17,700,000 Niagara County, NY IDA, Solid Waste Disposal Facility Revenue Bonds
(Series 1994C), 4.25% CP (American Ref-Fuel Company)/(Air Products
& Chemicals, Inc. and Browning-Ferris Industries, Inc. GTDs),
Mandatory Tender 10/16/1995 A-1 17,700,000
------------------------------------------------------------------- ----------------
Total 103,453,979
------------------------------------------------------------------- ----------------
NORTH CAROLINA--10.0%
-------------------------------------------------------------------
1,000,000 Alamance County, NC Industrial Facilities Authority, (Series A)
Weekly VRDNs (Culp, Inc.)/(First Union National Bank, Charlotte,
N.C. LOC) VMIG1 1,000,000
-------------------------------------------------------------------
1,200,000 Bladen County, NC Industrial Facilities & Pollution Control
Financing Authority, (Series 1993) Weekly VRDNs (BCH Energy,
Limited Partnership)/(Bank of Tokyo Ltd., Tokyo LOC) VMIG1 1,200,000
-------------------------------------------------------------------
2,600,000 Catawba County, NC Industrial Facilities & Pollution Control
Financing Authority, (Series 1994) Weekly VRDNs (Ethan Allen Inc
Project)/(Bankers Trust Co., New York LOC) P-1 2,600,000
-------------------------------------------------------------------
5,030,000 (a)Charlotte, NC, Refunding Revenue Certificates of Participation
(PA-46) Weekly VRDNs (Convention Facility)/(AMBAC INS)/(Merrill
Lynch Capital Services, Inc. LIQ) VMIG1 5,030,000
-------------------------------------------------------------------
55,000,000 (a)Charlotte-Mecklenburg Hospital Authority, NC, Loan Participation
Certificates (1995) VRNs (The Charlotte-Mecklenburg Hospital
Authority), 5/22/1996 NR(2) 55,000,000
-------------------------------------------------------------------
1,000,000 Cleveland County, NC IDA Weekly VRDNs (PPG Industries, Inc.) P-1 1,000,000
-------------------------------------------------------------------
2,400,000 (a)Fayetteville, NC Public Works Commission, Revenue Refunding
Bonds Weekly VRDNs (FGIC INS)/(Merrill Lynch Capital Services, Inc.
LIQ) VMIG1 2,400,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
-------------------------------------------------------------------
$ 2,600,000 Greensboro, NC, Certificates of Participation 1994 Equipment
Project Weekly VRDNs (Greensboro, NC Center City Corp.)/(Wachovia
Bank of Georgia NA, Atlanta LIQ) A-1+ $ 2,600,000
-------------------------------------------------------------------
2,500,000 Halifax County, NC Industrial Facilities & PCFA Weekly VRDNs
(Flambeau Airmold Project)/(Norwest Bank Minnesota, Minneapolis
LOC) P-1 2,500,000
-------------------------------------------------------------------
4,500,000 Lee County, NC Industrial Facility & PCFA, (Series 1989) Weekly
VRDNs (Avondale Mills, Inc.)/(Trust Company Bank, Atlanta LOC) P-1 4,500,000
-------------------------------------------------------------------
8,400,000 Lenoir County, NC Industrial Facilities & PCFA, IDRB Weekly VRDNs
(Kinston Neuse Corp Project (NC))/ (Branch Banking & Trust Co,
Wilson LOC) P-1 8,400,000
-------------------------------------------------------------------
20,000,000 Martin County, NC IFA, (Series 1993) Weekly VRDNs (Weyerhaeuser
Co.) A-1 20,000,000
-------------------------------------------------------------------
3,680,000 Mecklenberg County, NC Industrial Facility & PCFA, (Series 1988)
Weekly VRDNs (Florida Steel Corp.)/ (Bankers Trust Co., New York
LOC) P-1 3,680,000
-------------------------------------------------------------------
1,310,000 (a)NCNB Pooled Tax-Exempt Trust, (Series 1990A) Weekly VRDNs (NCNB
Tax Exempt Trust 1990a)/(Nationsbank of North Carolina N.A. LOC) P-1 1,310,000
-------------------------------------------------------------------
6,070,000 (a)NCNB Pooled Tax-Exempt Trust, (Series 1990B) Weekly VRDNs (NCNB
Tax-Exempt Trust 1990b)/(Nationsbank of North Carolina N.A. LOC) P-1 6,070,000
-------------------------------------------------------------------
6,000,000 New Hanover County, NC PCFA, (Series 1984) Weekly VRDNs (American
Hoist & Derrick Company Project)/ (First Union National Bank,
Charlotte, N.C. LOC) P-1 6,000,000
-------------------------------------------------------------------
2,250,000 New Hanover County, NC, GO School Bonds, (Series 1995) Weekly VRDNs
(Wachovia Bank of NC, NA, Winston-Salem LIQ) A-1+ 2,250,000
-------------------------------------------------------------------
$ 2,250,000 New Hanover County, NC, GO School Bonds, (Series 1995) Weekly VRDNs
(Wachovia Bank of NC, NA, Winston-Salem LIQ) A-1+ $ 2,250,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
-------------------------------------------------------------------
2,260,000 (a)North Carolina Eastern Municipal Power Agency,
(P-Floats)/(Series PA-34B) Weekly VRDNs (Merrill Lynch Capital
Services, Inc. LIQ)/(United States Treasury PRF) VMIG1 2,260,000
-------------------------------------------------------------------
4,000,000 North Carolina Educational Facilities Finance Agency, (Series 1990)
Weekly VRDNs (Bowman Gray School of Medicine)/(Wachovia Bank of NC,
NA, Winston-Salem LOC) VMIG1 4,000,000
-------------------------------------------------------------------
7,600,000 North Carolina Medical Care Commission Hospital, Revenue Bonds
(Series 1992B) Weekly VRDNs (North Carolina Baptist) A-1+ 7,600,000
-------------------------------------------------------------------
3,200,000 North Carolina Medical Care Commission Hospital, Revenue Bonds
(Series 1993) Weekly VRDNs (Moses H. Cone Memorial) A-1+ 3,200,000
-------------------------------------------------------------------
9,000,000 North Carolina Medical Care Commission Hospital, Revenue Bonds
(Series 1993A) Weekly VRDNs (Duke University) A-1+ 9,000,000
-------------------------------------------------------------------
4,000,000 Onslow County, NC Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Mine Safety Appliances
Co.)/(Sanwa Bank Ltd, Osaka LOC) A-1+ 4,000,000
-------------------------------------------------------------------
3,000,000 Orange County, NC Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Mebane Packaging Corp)/(First
Union National Bank, Charlotte, N.C. LOC) A-1+ 3,000,000
-------------------------------------------------------------------
2,100,000 Randolph County, NC IDA, (Series 1990) Weekly VRDNs (Wayne Steel,
Inc.)/(Bank One, Akron, N.A. LOC) P-1 2,100,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
-------------------------------------------------------------------
$ 6,350,000 University of North Carolina, (Series 1989) Weekly VRDNs
(University of North Carolina at Chapel Hill General Alumni
Association)/(Credit Suisse, Zurich LOC) VMIG1 $ 6,350,000
------------------------------------------------------------------- ----------------
Total 169,300,000
------------------------------------------------------------------- ----------------
NORTH DAKOTA--0.2%
-------------------------------------------------------------------
3,675,000 Fargo, ND, Variable Rate Demand IDRB (Series 1994) Weekly VRDNs
(Pan-O-Gold Baking Co. Project)/ (Norwest Bank Minnesota,
Minneapolis LOC) A-1+ 3,675,000
------------------------------------------------------------------- ----------------
OHIO--0.9%
-------------------------------------------------------------------
6,000,000 Brecksville-Broadview Heights CSD, OH, GO Unlimited Tax School
Improvement , 5.71% BANs, 1/18/1996 NR(3) 6,001,863
-------------------------------------------------------------------
500,000 Cuyahoga County, OH IDA Weekly VRDNs (Health Hill)/(Society Bank,
N.A. LOC) P-1 500,000
-------------------------------------------------------------------
1,600,000 Hamilton County, OH Hospital Facilities Authority, Revenue Bonds
(Series 1986A) Weekly VRDNs (Good Samaritan Hospital) A-1 1,600,000
-------------------------------------------------------------------
6,000,000 North Olmsted, OH, Various Purpose Improvement Notes, (Series
1995), 4.67% BANs, 6/20/1996 NR(3) 6,017,341
-------------------------------------------------------------------
550,000 Oakwood Village, OH IDA Weekly VRDNs (Oak Leaf Industries)/(Society
Bank, N.A. LOC) P-1 550,000
------------------------------------------------------------------- ----------------
Total 14,669,204
------------------------------------------------------------------- ----------------
OKLAHOMA--3.1%
-------------------------------------------------------------------
5,500,000 Broken Arrow, OK EDA Weekly VRDNs (Blue Bell Creameries)/(Banque
Nationale de Paris LOC) VMIG1 5,500,000
-------------------------------------------------------------------
2,295,000 Claremore, OK IDA Weekly VRDNs (Baldor Electric Co.)/(Wachovia Bank
of Georgia NA, Atlanta LOC) P-1 2,295,000
-------------------------------------------------------------------
$ 10,000,000 Oklahoma Industries Authority, Flexible Rate Hospital Revenue Bonds
(Series 1990B), 4.00% CP (Baptist Medical Center, OK), Mandatory
Tender 11/17/1995 A-1 $ 10,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
OKLAHOMA--CONTINUED
-------------------------------------------------------------------
$ 10,000,000 Oklahoma Industries Authority, Flexible Rate Hospital Revenue Bonds
(Series 1990B), 4.00% CP (Baptist Medical Center, OK), Mandatory
Tender 11/27/1995 A-1 $ 10,000,000
-------------------------------------------------------------------
9,125,000 Oklahoma Industries Authority, Health System Revenue Bonds (Series
1995A), 4.00% CP (Baptist Medical Center, OK), Mandatory Tender
12/11/1995 A-1 9,125,000
-------------------------------------------------------------------
11,000,000 Oklahoma Industries Authority, Health System Revenue Bonds (Series
1995A), 4.10% CP (Baptist Medical Center, OK), Mandatory Tender
10/18/1995 A-1 11,000,000
-------------------------------------------------------------------
4,400,000 Southeastern Oklahoma Industries Authority Weekly VRDNs
(Weyerhaeuser Co.) A-1 4,400,000
------------------------------------------------------------------- ----------------
Total 52,320,000
------------------------------------------------------------------- ----------------
PENNSYLVANIA--2.8%
-------------------------------------------------------------------
5,000,000 Beaver County, PA IDA, PCR Refunding Bonds (1994 Series), 4.50% CP
(Duquesne Light Power Co.)/(Swiss Bank Corp., Basle LOC), Mandatory
Tender 10/10/1995 A-1+ 5,000,000
-------------------------------------------------------------------
5,000,000 Berks County, PA, (Series 1995), 5.20% TRANs,
12/31/1995 NR(3) 5,000,000
-------------------------------------------------------------------
3,100,000 Erie County, PA Hospital Authority Weekly VRDNs (St. Mary's
Hospital Erie, PA)/(PNC Bank, N.A. LOC) P-1 3,100,000
-------------------------------------------------------------------
1,000,000 Erie County, PA Hospital Authority Weekly VRDNs (St. Vincent Health
System)/(Fuji Bank, Ltd., Tokyo LOC) A-1 1,000,000
-------------------------------------------------------------------
2,000,000 Montgomery County, PA IDA Weekly VRDNs (Plymouth Woods)/(PNC Bank,
N.A. LOC) P-1 2,000,000
-------------------------------------------------------------------
1,100,000 Pennsylvania Education Development Authority, (1995 Series E)
Weekly VRDNs (Home Nursing Agency Affiliates Project)/(PNC Bank,
N.A. LOC) A1 1,100,000
-------------------------------------------------------------------
800,000 Philadelphia Redevelopment Authority, Multi-Family Revenue Bonds
(Series 1985) Weekly VRDNs (Franklin Town Towers)/(Marine Midland
Bank N.A., Buffalo, NY LOC) P-2 800,000
-------------------------------------------------------------------
$ 29,000,000 Philadelphia, PA, (Series A), 4.50% TRANs, 6/27/1996 SP-1 $ 29,113,392
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
-------------------------------------------------------------------
Total 47,113,392
------------------------------------------------------------------- ----------------
PUERTO RICO--0.9%
-------------------------------------------------------------------
15,900,000 Puerto Rico Government Development Bank Weekly VRDNs (Credit
Suisse, Zurich LOC) A-1+ 15,900,000
------------------------------------------------------------------- ----------------
SOUTH CAROLINA--1.4%
-------------------------------------------------------------------
3,030,000 Berkeley, SC IRB, (Series 1989) Weekly VRDNs (W.W. Williams Company
Project)/(Bank One, Columbus, N.A. LOC) Aa2 3,030,000
-------------------------------------------------------------------
5,175,000 Greenville County, SC Hospital Authority, (Series 1989) Weekly
VRDNs (Charter Hospital St. Louis)/(Bankers Trust Co., New York
LOC) VMIG1 5,175,000
-------------------------------------------------------------------
2,500,000 South Carolina Education Facilities Authority, Educational
Facilities Revenue Bonds (Series 1993) Weekly VRDNs (Presbyterian
College Project)/(Wachovia Bank of SC, NA, Columbia LOC) A-1+ 2,500,000
-------------------------------------------------------------------
5,255,000 South Carolina Job Development Authority, Hospital Facilities
Revenue Bonds, (Series 1994) Weekly VRDNs (Rolling Green Village
Project)/(Branch Banking & Trust Co, Wilson LOC) P-1 5,255,000
-------------------------------------------------------------------
7,300,000 University of South Carolina, Athletic Facilities (Series 1995),
5.25% BANs, 3/1/1996 NR(3) 7,315,825
------------------------------------------------------------------- ----------------
Total 23,275,825
------------------------------------------------------------------- ----------------
SOUTH DAKOTA--0.2%
-------------------------------------------------------------------
775,000 Mitchell, SD, IDR Weekly VRDNs (Holiday Inn)/(First Bank NA,
Minneapolis LOC) P-1 775,000
-------------------------------------------------------------------
1,530,000 Rapid City, SD Weekly VRDNs (Gillette Dairy Black Hills,
Inc.)/(Mitsubishi Bank Ltd, Tokyo LOC) P-1 1,530,000
-------------------------------------------------------------------
1,880,000 Watertown, SD, (Series 1991) Weekly VRDNs (Tescom Corp.)/(Norwest
Bank Minnesota, Minneapolis LOC) P-1 1,880,000
------------------------------------------------------------------- ----------------
Total 4,185,000
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
TENNESSEE--0.2%
-------------------------------------------------------------------
$ 3,500,000 Greenfield, TN IDB, IDRB (Series 1995) Weekly VRDNs (Plastic
Products Company Project)/(Norwest Bank Minnesota, Minneapolis LOC) P-1 $ 3,500,000
------------------------------------------------------------------- ----------------
TEXAS--6.7%
-------------------------------------------------------------------
900,000 Corpus Christi, TX IDC Weekly VRDNs (Grainger (W.W.), Inc.) P-1 900,000
-------------------------------------------------------------------
2,625,000 Harris County, TX Cultural Education Facilities Finance Corp.
Weekly VRDNs (Houston Museum of Natural Sciences)/(Bank One, Texas
N.A. LOC) P-1 2,625,000
-------------------------------------------------------------------
18,700,000 Harris County, TX HFDC, (Series 1994) Daily VRDNs (Methodist
Hospital, Houston, TX) A-1+ 18,700,000
-------------------------------------------------------------------
955,000 Harris County, TX IDC Weekly VRDNs (Grainger (W.W.), Inc.) P-1 955,000
-------------------------------------------------------------------
25,000,000 Houston, TX, (Series 1995), 4.50% TRANs, 6/27/1996 SP-1+ 25,142,353
-------------------------------------------------------------------
2,720,000 Liberty County, TX IDA Weekly VRDNs (Insteel Industries,
Inc.)/(First Union National Bank, Charlotte, N.C. LOC) P-1 2,720,000
-------------------------------------------------------------------
15,000,000 Lower Colorado River Authority, TX, (Series B), 3.85% CP, Mandatory
Tender 11/20/1995 P-1 15,000,000
-------------------------------------------------------------------
3,400,000 Lubbock, TX IDC Daily VRDNs (McLane Co., Inc.)/ (Nationsbank of
North Carolina N.A. LOC) P-1 3,400,000
-------------------------------------------------------------------
1,880,000 North Richland Hills, TX IDC Weekly VRDNs (Tecnol,
Inc.)/(Nationsbank of North Carolina N.A. LOC) P-1 1,880,000
-------------------------------------------------------------------
6,000,000 Tarrant County, TX IDC Weekly VRDNs (Holden Business
Forms)/(Norwest Bank Minnesota, Minneapolis LOC) A-1+ 6,000,000
-------------------------------------------------------------------
1,600,000 Tarrant County, TX, HFA Daily VRDNs (Cumberland Rest, Inc.)/(Banque
Paribas, Paris LOC) A-1 1,600,000
-------------------------------------------------------------------
25,000,000 Texas State, (Series 1995A), 4.75% TRANs, 8/30/1996 SP-1+ 25,142,684
-------------------------------------------------------------------
$ 9,585,000 Tyler, TX Health Facilities Development Corp., Hospital Revenue
Bonds (Series 1994) Weekly VRDNs (East Texas Medical
Center)/(Nationsbank of Texas, N.A. LOC) P-1 $ 9,585,000
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
TEXAS--CONTINUED
-------------------------------------------------------------------
Total 113,650,037
------------------------------------------------------------------- ----------------
UTAH--2.1%
-------------------------------------------------------------------
2,900,000 Emery County, UT, PCR Refunding Bonds (Series 1994) Daily VRDNs
(Pacificorp)/(AMBAC INS)/(Bank of Nova Scotia, Toronto LIQ) A-1+ 2,900,000
-------------------------------------------------------------------
8,500,000 Intermountain Power Agency, UT, (Series E), 3.85% TOBs, Optional
Tender 6/17/1996 A-1 8,500,000
-------------------------------------------------------------------
7,400,000 Salt Lake County, UT, Multi-Family Housing Revenue Refunding Bonds
(Series 1992) Weekly VRDNs (Santa Fe Apartments)/(First Security
Bank of Utah, NA LOC) VMIG1 7,400,000
-------------------------------------------------------------------
12,500,000 Tooele County, UT, Waste Treatment, 4.30% CP (Union Pacific Corp.),
Mandatory Tender 10/16/1995 P-1 12,500,000
-------------------------------------------------------------------
2,000,000 Utah County, UT, (Series 1995), 4.65% TRANs, 12/29/1995 NR(3) 2,001,184
-------------------------------------------------------------------
2,515,000 Utah State HFA, Single Family Mortgage Bonds, (1995 Series 2)
Weekly VRDNs (Westdeutsche Landesbank Girozentrale LIQ) P-1 2,515,000
------------------------------------------------------------------- ----------------
Total 35,816,184
------------------------------------------------------------------- ----------------
VIRGINIA--5.2%
-------------------------------------------------------------------
5,552,000 Alexandria, VA IDA Weekly VRDNs (American Red Cross)/(Sanwa Bank
Ltd, Osaka LOC) A-1+ 5,552,000
-------------------------------------------------------------------
8,000,000 Arlington County, VA Weekly VRDNs (Ballston Public
Parking)/(Citibank NA, New York LOC) A-1 8,000,000
-------------------------------------------------------------------
4,000,000 Campbell County, VA IDA, Solid Waste Disposal Facilities Revenue
Aces Weekly VRDNs (Georgia-Pacific Corp.)/(Industrial Bank of Japan
Ltd., Tokyo LOC) A-1 4,000,000
-------------------------------------------------------------------
$ 1,305,000 Fairfax County, VA EDA, Facilities Revenue Refunding Bonds (Series
1993) Weekly VRDNs (Future Homemakers of America)/(Nationsbank of
Virginia, N.A. LOC) P-1 $ 1,305,000
-------------------------------------------------------------------
9,000,000 Fairfax County, VA Housing Authority Weekly VRDNs (Chase Commons
Associates)/(Bankers Trust Co., New York LOC) P-1 9,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
VIRGINIA--CONTINUED
-------------------------------------------------------------------
1,900,000 Fairfax County, VA IDA Weekly VRDNs (Fairfax Hospital
System)/(Dai-Ichi Kangyo Bank Ltd., Tokyo LOC) A-1 1,900,000
-------------------------------------------------------------------
3,000,000 Fairfax County, VA IDA, (Series 1993B), 4.15% CP (Inova Health
System), Mandatory Tender 10/10/1995 A-1 3,000,000
-------------------------------------------------------------------
2,500,000 Fauquier County, VA IDA, Various Rate Demand Refunding Revenue
Bonds Weekly VRDNs (Warrenton Development Co.)/(Nationsbank of
Maryland, N.A. LOC) P-1 2,500,000
-------------------------------------------------------------------
4,500,000 Front Royal & Warren County, VA IDA, IDRB (Series 1995) Weekly
VRDNs (Pen-Tab Industries, Inc. Project)/ (Bank of America Illinois
LOC) P-1 4,500,000
-------------------------------------------------------------------
3,450,000 Hampton, VA Redevelopment & Housing Authority, (Series 1984) Weekly
VRDNs (Nationsbank of Virginia, N.A. LOC) P-1 3,450,000
-------------------------------------------------------------------
3,000,000 Newport News, VA Redevelopment & Housing Authority, (Series 1990)
Weekly VRDNs (Fredericksburg-Oxford)/(Bankers Trust Co., New York
LOC) VMIG1 3,000,000
-------------------------------------------------------------------
5,400,000 Richmond, VA Redevelopment & Housing Authority, (Series 1989)
Weekly VRDNs (Belmont Apartment)/ (Nationsbank of North Carolina
N.A. LOC) P-1 5,400,000
-------------------------------------------------------------------
8,100,000 Richmond, VA Redevelopment & Housing Authority, (Series B-1) Weekly
VRDNs (Richmond, VA Red Tobacco Row)/(Westdeutsche Landesbank
Girozentrale LOC) VMIG1 8,100,000
-------------------------------------------------------------------
$ 5,000,000 Richmond, VA Redevelopment & Housing Authority, (Series B-2) Weekly
VRDNs (Richmond, VA Red Tobacco Row)/(Westdeutsche Landesbank
Girozentrale LOC) VMIG1 $ 5,000,000
-------------------------------------------------------------------
3,555,000 Richmond, VA Redevelopment & Housing Authority, (Series B-6) Weekly
VRDNs (Richmond, VA Red Tobacco Row)/(Westdeutsche Landesbank
Girozentrale LOC) VMIG1 3,555,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
VIRGINIA--CONTINUED
-------------------------------------------------------------------
3,555,000 Richmond, VA Redevelopment & Housing Authority, (Series B-8) Weekly
VRDNs (Richmond, VA Red Tobacco Row)/(Westdeutsche Landesbank
Girozentrale LOC) VMIG1 3,555,000
-------------------------------------------------------------------
4,650,000 Suffolk, VA Redevelopment & Housing Authority Weekly VRDNs
(Terry/Peterson Development Corp.)/ (Nationsbank of Virginia, N.A.
LOC) P-1 4,650,000
-------------------------------------------------------------------
3,105,000 Suffolk, VA Redevelopment & Housing Authority, (Series 1994) Weekly
VRDNs (Terry/Peterson Associates II Project)/(Nationsbank of
Virginia, N.A. LOC) P-1 3,105,000
-------------------------------------------------------------------
5,100,000 Virginia Peninsula Port Authority Daily VRDNs (Kinyo Virginia,
Inc.)/(Industrial Bank of Japan Ltd., Tokyo LOC) A-1 5,100,000
-------------------------------------------------------------------
4,000,000 Williamsburg, VA IDA, (Series 1988) Weekly VRDNs (Colonial
Williamsburg Foundation Museum)/(Sanwa Bank Ltd, Osaka LOC) P-1 4,000,000
------------------------------------------------------------------- ----------------
Total 88,672,000
------------------------------------------------------------------- ----------------
WASHINGTON--0.2%
-------------------------------------------------------------------
2,850,000 (a)Washington State, GO Bonds (Series P-12A) Weekly VRDNs (Merrill
Lynch Capital Services, Inc. LIQ) VMIG1 2,850,000
------------------------------------------------------------------- ----------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
WEST VIRGINIA--1.0%
-------------------------------------------------------------------
$ 3,200,000 Berkeley County, WV County Commission, Industrial Development Bonds
(Series 1994) Weekly VRDNs (Brentwood Industries, Inc.
Project)/(Meridian Bank, Reading, PA LOC) P-1 $ 3,200,000
-------------------------------------------------------------------
14,500,000 Marshall County, WV, PCR (Series 1992) Weekly VRDNs (PPG
Industries, Inc.) A-1 14,500,000
------------------------------------------------------------------- ----------------
Total 17,700,000
------------------------------------------------------------------- ----------------
WISCONSIN--0.8%
-------------------------------------------------------------------
2,000,000 Green Bay, WI IDA, IDRB (Series 1985) Weekly VRDNs (St. Mary's
Holdings, Inc.)/(Mellon Bank NA, Pittsburgh LOC) P-1 2,000,000
-------------------------------------------------------------------
1,000,000 Rice Lake, WI, IDRB (Series 1995) Weekly VRDNs (Wright Products
Corp. Project)/(Norwest Bank Minnesota, Minneapolis LOC) A-1+ 1,000,000
-------------------------------------------------------------------
940,000 Spooner, WI, (Series 1994) Weekly VRDNs (Nash Finch Co.)/(First
Bank NA, Minneapolis LOC) P-1 940,000
-------------------------------------------------------------------
10,140,000 (a)Wisconsin Housing & Economic Development Authority, (Series B),
4.55% TOBs (FSA INS)/(Meridian Bank, Reading, PA LIQ), Optional
Tender 3/1/1996 P-1 10,140,000
------------------------------------------------------------------- ----------------
Total 14,080,000
------------------------------------------------------------------- ----------------
WYOMING--0.8%
-------------------------------------------------------------------
1,830,000 Sweetwater County, WY IDA Weekly VRDNs (FMC Gold Co.)/(Wachovia
Bank of NC, NA, Winston-Salem LOC) A-1+ 1,830,000
-------------------------------------------------------------------
11,800,000 Sweetwater County, WY IDA, PCR Refunding Bonds (Series 1994) Daily
VRDNs (Pacificorp)/(AMBAC INS)/ (Bank of New York, New York LIQ) A-1 11,800,000
------------------------------------------------------------------- ----------------
Total 13,630,000
------------------------------------------------------------------- ----------------
OTHER--1.3%
-------------------------------------------------------------------
15,000,000 (a)Clipper Tax Exempt Trust, (Series 1993-1) Weekly VRDNs (State
Street Bank and Trust Co. LIQ) A-1+ 15,000,000
-------------------------------------------------------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
- ------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------------------
OTHER--CONTINUED
-------------------------------------------------------------------
$ 2,835,538 (a)LaSalle National Bank Leasetops Trust, (Series 1994B) Weekly
VRDNs (LaSalle National Bank, Chicago LIQ)/ (LaSalle National Bank,
Chicago LOC) A-1+ $ 2,835,538
-------------------------------------------------------------------
4,104,643 (a)LaSalle National Bank Tax-Exempt Trust, (Series 1993A) Weekly
VRDNs (LaSalle National Bank, Chicago LIQ)/ (LaSalle National Bank,
Chicago LOC) A-1+ 4,104,643
------------------------------------------------------------------- ----------------
Total 21,940,181
------------------------------------------------------------------- ----------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $ 1,683,049,421
------------------------------------------------------------------- ----------------
</TABLE>
(a)Restricted securities--Investment in securities not registered under the
Securities Act of 1933. At the end of the period, these securities amounted
to 8.8% of net assets.
(b)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
($1,697,053,000) at September 30, 1995.
The following acronyms are used throughout this portfolio:
ACES-- Adjustable Convertible Extendable Securities
IDRB-- Industrial Development
Revenue Bonds
AMBAC-- American Municipal Bond Assurance
IFA-- Industrial Finance Authority
Corporation
INS-- Insured
BANs-- Bond Anticipation Notes
LIQ-- Liquidity Agreement
CP-- Commercial Paper
LOC-- Letter of Credit
EDA-- Economic Development Authority
LOCs-- Letter(s) of Credit
EDC-- Economic Development Commission
MBIA-- Municipal Bond Investors
Assurance
EDRB-- Economic Development Revenue Bonds
NRUCFC-- National Rural Utilities
Cooperative Finance
FGIC-- Financial Guaranty Insurance Company
Corporation
FSA-- Financial Security Assurance
PCFA-- Pollution Control Finance
Authority
GO-- General Obligation
PCR-- Pollution Control Revenue
GTD-- Guaranty
PLC-- Public Limited Company
GTDs-- Guarantees
PRF-- Prerefunded
HEFA-- Health and Education Facilities Authority
RANs-- Revenue Anticipation Notes
HFA-- Housing Finance Authority
SA-- Support Agreement
HFDC-- Health Facility Development Corporation
TANs-- Tax Anticipation Notes
IDA-- Industrial Development Authority
TOBs-- Tender Option Bonds
IDB-- Industrial Development Bond
TRANs-- Tax and Revenue Anticipation
Notes
IDC-- Industrial Development Corporation
UT-- Unlimited Tax
IDFA-- Industrial Development Finance Authority
VRDNs-- Variable Rate Demand Notes
IDR-- Industrial Development Revenue
VRNs-- Variable Rate Notes
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
September 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------------------------
Investments in securities, at amortized cost and value $ 1,683,049,421
- -------------------------------------------------------------------------------------------------
Cash 5,691,831
- -------------------------------------------------------------------------------------------------
Income receivable 11,621,652
- ------------------------------------------------------------------------------------------------- ---------------
Total assets 1,700,362,904
- -------------------------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------------------------
Income distribution payable $ 2,616,635
- ------------------------------------------------------------------------------------
Accrued expenses 693,269
- ------------------------------------------------------------------------------------ -----------
Total liabilities 3,309,904
- ------------------------------------------------------------------------------------------------- ---------------
NET ASSETS for 1,697,781,665 shares outstanding $ 1,697,053,000
- ------------------------------------------------------------------------------------------------- ---------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------
Paid in capital $ 1,697,781,664
- -------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (728,664)
- ------------------------------------------------------------------------------------------------- ---------------
Total Net Assets $ 1,697,053,000
- ------------------------------------------------------------------------------------------------- ---------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
Investment Shares ($1,351,712,672 / 1,352,223,610 shares outstanding) $1.00
- ------------------------------------------------------------------------------------------------- ---------------
Institutional Service Shares ($345,340,328 / 345,558,055 shares outstanding) $1.00
- ------------------------------------------------------------------------------------------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Operations
- --------------------------------------------------------------------------------
Six Months Ended September 30, 1995 (unaudited)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------------------------
Interest $ 34,559,240
- ---------------------------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------------------------
Investment advisory fee $ 4,191,667
- ------------------------------------------------------------------------------------
Administrative personnel and services fee 634,618
- ------------------------------------------------------------------------------------
Custodian fees 79,369
- ------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 834,454
- ------------------------------------------------------------------------------------
Directors'/Trustees' fees 6,618
- ------------------------------------------------------------------------------------
Auditing fees 10,461
- ------------------------------------------------------------------------------------
Legal fees 15,342
- ------------------------------------------------------------------------------------
Portfolio accounting fees 67,345
- ------------------------------------------------------------------------------------
Shareholder services fee--Investment Shares 1,646,665
- ------------------------------------------------------------------------------------
Shareholder services fee--Institutional Service Shares 449,169
- ------------------------------------------------------------------------------------
Share registration costs 50,154
- ------------------------------------------------------------------------------------
Printing and postage 106,506
- ------------------------------------------------------------------------------------
Insurance premiums 15,342
- ------------------------------------------------------------------------------------
Taxes 12,648
- ------------------------------------------------------------------------------------
Miscellaneous 10,155
- ------------------------------------------------------------------------------------ -------------
Total expenses 8,130,513
- ------------------------------------------------------------------------------------
Waivers--
- ---------------------------------------------------------------------
Waiver of investment advisory fee $ (1,350,014)
- ---------------------------------------------------------------------
Waiver of shareholder services fee--
Investment Shares (658,666)
- ---------------------------------------------------------------------
Waiver of shareholder services fee--
Institutional Service Shares (449,169)
- --------------------------------------------------------------------- -------------
Total waivers (2,457,849)
- ------------------------------------------------------------------------------------ -------------
Net expenses 5,672,664
- --------------------------------------------------------------------------------------------------- -------------
Net investment income 28,886,576
- --------------------------------------------------------------------------------------------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------------------------
Net realized gain on investments 254,236
- --------------------------------------------------------------------------------------------------- -------------
Change in net assets resulting from operations $ 29,140,812
- --------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
SEPTEMBER 30, 1995 MARCH 31, 1995
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------------------
Net investment income $ 28,886,576 $ 44,660,920
- ---------------------------------------------------------------------
Net realized gain (loss) on investments ($254,236 net gain and
$18,024 net loss, respectively, as computed for federal tax purposes) 254,236 (972,359)
- --------------------------------------------------------------------- ----------------------- ------------------
Change in net assets resulting from operations 29,140,812 43,688,561
- --------------------------------------------------------------------- ----------------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------------------
Distributions from net investment income
- ---------------------------------------------------------------------
Investment Shares (22,480,409) (33,105,372)
- ---------------------------------------------------------------------
Institutional Service Shares (6,406,167) (11,555,548)
- --------------------------------------------------------------------- ----------------------- ------------------
Change in net assets resulting from distributions to
shareholders (28,886,576) (44,660,920)
- --------------------------------------------------------------------- ----------------------- ------------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------------------
Proceeds from sale of shares 2,824,688,553 6,059,965,359
- ---------------------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 21,979,832 32,944,709
- ---------------------------------------------------------------------
Cost of shares redeemed (2,786,589,401) (6,173,177,132)
- --------------------------------------------------------------------- ----------------------- ------------------
Change in net assets resulting from share transactions 60,078,984 (80,267,064)
- --------------------------------------------------------------------- ----------------------- ------------------
Change in net assets 60,333,220 (81,239,423)
- ---------------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------------
Beginning of period 1,636,719,780 1,717,959,203
- --------------------------------------------------------------------- ----------------------- ------------------
End of period $ 1,697,053,000 $ 1,636,719,780
- --------------------------------------------------------------------- ----------------------- ------------------
</TABLE>
(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>
SIX MONTHS
ENDED
(UNAUDITED)
SEPTEMBER 30, YEAR ENDED MARCH 31,
1995 1995 1994 1993 1992 1991 1990 1989 1988
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------
INCOME FROM
INVESTMENT
OPERATIONS
- ------------------
Net investment
income 0.02 0.03 0.02 0.02 0.04 0.05 0.06 0.05 0.04
- ------------------ ----- --------- --------- --------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
- ------------------
Distributions
from net
investment income (0.02) (0.03) (0.02) (0.02) (0.04) (0.05) (0.06) (0.05) (0.04)
- ------------------ ----- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------ ----- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (a) 1.72% 2.70% 2.01% 2.42% 3.84% 5.40% 5.88% 5.28% 4.29%
- ------------------
RATIOS TO AVERAGE
NET ASSETS
- ------------------
Expenses 0.71%* 0.70% 0.61% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
- ------------------
Net investment
income 3.40%* 2.66% 2.00% 2.38% 3.73% 5.25% 5.73% 5.14% 4.19%
- ------------------
Expense waiver/
reimbursement (b) 0.26%* 0.17% 0.14% 0.10% 0.11% 0.12% 0.11% 0.08% 0.06%
- ------------------
SUPPLEMENTAL DATA
- ------------------
Net assets, end
of period (000
omitted)
$1,351,713 $1,277,894 $1,327,506 $1,619,531 $1,440,970 $1,214,045 $1,142,022 $1,313,391 $1,552,460
- ------------------
<CAPTION>
1987
<S> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD $ 1.00
- ------------------
INCOME FROM
INVESTMENT
OPERATIONS
- ------------------
Net investment
income 0.04
- ------------------ ---------
LESS DISTRIBUTIONS
- ------------------
Distributions
from net
investment income (0.04)
- ------------------ ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00
- ------------------ ---------
TOTAL RETURN (a) 3.84%
- ------------------
RATIOS TO AVERAGE
NET ASSETS
- ------------------
Expenses 0.55%
- ------------------
Net investment
income 3.74%
- ------------------
Expense waiver/
reimbursement (b) 0.06%
- ------------------
SUPPLEMENTAL DATA
- ------------------
Net assets, end
of period (000
omitted) $1,661,086
- ------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(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>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
SEPTEMBER 30, MARCH 31,
1995 1995 1994(A)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
- -----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------
Net investment income 0.02 0.03 0.01
- ----------------------------------------------------------------------- ------- --------- -----------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------
Distributions from net investment income (0.02) (0.03) (0.01)
- ----------------------------------------------------------------------- ------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------- ------- --------- -----------
TOTAL RETURN (b) 1.80% 2.85% 0.92%
- -----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------
Expenses 0.56%* 0.55% 0.55%*
- -----------------------------------------------------------------------
Net investment income 3.56%* 2.82% 1.99%*
- -----------------------------------------------------------------------
Expense waiver/reimbursement (c) 0.41%* 0.17% 0.14%*
- -----------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------
Net assets, end of period (000 omitted)
$345,340 $358,826 $390,453
- -----------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from October 15, 1993 (date of initial
public investment) to March 31, 1994.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) 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, 1995 (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
management investment company. The Trust offers 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.
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.
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.
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 income. Accordingly, no
provisions for federal tax are necessary.
At September 30, 1995, the Trust, for federal tax purposes, had a capital
loss carryforward of $18,024, which will reduce the Trust's taxable income
arising from future net realized gain on investments, if any, to the extent
permitted by the Code, and thus will reduce the amount of the distributions
to shareholders which would otherwise be necessary to relieve the Trust of
any liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire in 2003. Additionally, net capital losses of
$965,259 attributable to security transactions incurred after October 31,
1994 are treated as arising on the first day of the Trust's next taxable
year.
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.
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
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
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,
1995 is as follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
<S> <C> <C>
Clipper, CA Tax Exempt Trust 10/21/94 $ 10,000,000
Clipper, Connecticut Tax Exempt Trust 5/6/94 5,000,000
Florida State Board of Education Administration 5/17/95 3,000,000
Clipper, MA, Tax Exempt Trust 1/4/95 11,879,500
New York State Medical Care Facilities Finance Agency 9/26/95 12,250,000
Charlotte, NC, Revenue Refunding Certificates Of Participation Various 5,030,000
Charlotte-Mecklenberg Hospital Authority, NC, 6/30/95 55,000,000
Fayetteville, NC, Public Works Commission 6/15/94 2,400,000
NCNB Pooled Tax-Exempt Trust 1/3/92 1,310,000
NCNB Pooled Tax-Exempt Trust 12/4/90 6,070,000
North Carolina Eastern Municipal Power Agency 11/22/93 2,260,000
Washington State, GO Bonds (Series P-12A) 12/1/93 2,850,000
Wisconsin Housing & Economic Development Authority 8/28/95 10,140,000
Clipper Tax Exempt Trust 9/24/93 15,000,000
LaSalle National Bank Leasetops Trust 1/27/95 2,835,538
LaSalle National Bank Tax Exempt Trust 3/16/93 4,104,643
</TABLE>
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. At September 30, 1995, capital paid-in aggregated
$1,697,781,664. Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1995 MARCH 31, 1995
<S> <C> <C>
INVESTMENT SHARES SHARES SHARES
Shares Sold 2,316,588,292 4,729,351,464
- ---------------------------------------------------------------------
Shares issued to shareholders
in payment of distributions declared 21,390,153 31,475,054
- ---------------------------------------------------------------------
Shares redeemed (2,264,355,067) (4,809,739,688)
- --------------------------------------------------------------------- ----------------------- ------------------
Net change resulting from Investment
share transactions 73,623,378 (48,913,170)
- --------------------------------------------------------------------- ----------------------- ------------------
</TABLE>
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1995 MARCH 31, 1995
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES SHARES SHARES
Shares Sold 508,100,261 1,330,613,895
- ---------------------------------------------------------------------
Shares issued to shareholders
in payment of distributions declared 589,679 1,469,655
- ---------------------------------------------------------------------
Shares redeemed (522,234,334) (1,363,437,444)
- --------------------------------------------------------------------- ----------------------- ------------------
Net change resulting from Institutional Service
share transactions (13,544,394) (31,353,894)
- --------------------------------------------------------------------- ----------------------- ------------------
Net change resulting from
share transactions 60,078,984 (80,267,064)
- --------------------------------------------------------------------- ----------------------- ------------------
</TABLE>
(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 .50 of 1% of the Trust's average daily net assets. The Adviser may
voluntarily choose to waive any 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"), under the
Administrative Services Agreement, provides the Trust with administrative
personnel and services. This 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 SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Trust will pay FSS up to .25 of
1% of daily average net assets of the Trust for the period. This fee is to
obtain certain services for shareholders and to maintain shareholder accounts.
TRANSFER AGENT FEES--Federated Services Company ("FServ") serves as transfer and
dividend disbursing agent for the Trust. This fee is based on the size, type,
and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also maintains the Trust's accounting records
for which it receives a fee. The fee is based on the level of the Trust's
average daily net assets for the period, plus out-of-pocket expenses.
INTERFUND TRANSACTIONS--During the period ended September 30, 1995, the Trust
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common
Directors/Trustees, and/or common Officers. These transactions
Tax-Free Instruments Trust
- --------------------------------------------------------------------------------
were made at current market value pursuant to Rule 17a-7 under the Act amounting
to $1,355,475,000 and $1,329,215,000, respectively.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
Trustees Officers
- -----------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer Edward C. Gonzales
John E. Murray, Jr. Executive Vice President
Wesley W. Posvar John W. McGonigle
Marjorie P. Smuts Executive Vice President and Secretary
David M. Taylor
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 FDIC, the Federal
Reserve Board, or any other governmental agency. Investment in mutual funds
involves 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 prospectuses which contain facts concerning its
