[LOGO]FEDERATED INVESTORS
Tax-Free
Instruments
Trust
12th Annual Report
March 31, 1995
Established 1981
MONEY MARKET
President's Message
Dear Fellow Shareholder:
I am pleased to present the 12th Annual Report to Shareholders for Tax-Free
Instruments Trust for the 12-month period ended March 31, 1995. The report
begins with an interview with the Trust's portfolio manager and follows with
the Portfolio of Investments and Financial Statements.
The Trust is a convenient way to put your cash to work pursuing income free
from federal regular income tax.* The Trust seeks to keep the value of your
investment stable,** while giving you daily access to your money.
At the end of the report period, the Trust's portfolio was highly diversified
among short-term municipal securities issued across the nation. Total net
assets stood at $1.6 billion. Dividends paid to shareholders during the period
totaled $0.026 per Investment Share and $0.028 per Institutional Service Share.
Thank you for your participation in Tax-Free Instruments Trust. We'll continue
to keep you up to date on your investment, and we welcome your comments and
suggestions.
Sincerely,
Glen R. Johnson
President
May 15, 1995
*Income may be subject to the federal alternative minimum tax and state
and local taxes.
**No money market mutual fund can guarantee that a stable net asset value will
be maintained. An investment in the Trust is neither insured nor
guaranteed by the U.S. government.
Investment Review
Jeff A Kozemchak, CFA
Vice President,
Federated Advisers
Q. During the reporting period, interest rates finally turned up in a dramatic
fashion, thanks to a series of rate increases by the Federal Reserve Board.
Can you comment?
A. Since February 1994, the Federal Reserve Board, also known as the Fed, has
hiked the Federal Funds target rate on seven separate occasions from 3% to its
current 6% level. Over that same period, banks followed suit by raising the
prime rate from 6% to 9%. Concerned by strength in the economy and the
potential of that strength creating inflationary pressures, the Fed took what
were thought to be preemptive steps in the first half of 1994 to control the
rise of inflation by removing what many market participants thought to be an
accommodative stance in monetary policy. In the face of resiliency in economic
growth and pressures on resource utilization, the Fed continued to tighten
monetary policy throughout the year and into 1995. The most recent move by the
Fed on February 1, 1995, increased the target rate 50 basis points to 6%. Over
the period of tightenings, short-term interest rates reflected the Fed's upward
moves. The yield on the three-month Treasury bill rose from 3.56% at the
beginning of the reporting period to 6.06% on February 1, 1995. The yield on
the one-year Treasury bill rose from 4.50% at the beginning of the reporting
period to a high of 7.32% in early January, 1995.
February and March, however, brought economic reports that pointed to a slowing
in sectors of the economy, an indication that the policy moves by the Fed over
the previous 12 months were beginning to take hold. As a result, short-term
interest rates declined over this period as market participants adjusted their
expectations regarding the extent of future tightenings by the Fed. Reflecting
the change in expectations, the three-month Treasury bill declined to 5.88% on
March 31, 1995, while the one-year Treasury bill fell to 6.35%, a decline of
close to 1.0% from the high in January, 1995.
Q. How have the municipal money markets and the Trust's yield reacted to this
rate rise?
A. Municipal money market rates also moved upward in likewise fashion, but to a
slightly lesser degree. Yields on seven-day variable rate demand notes (VRDNs),
the core component of a tax-free money market fund, rose from 2.29% at the
beginning of the reporting period to 4.15% on March 31, 1995. Yield levels
also moved upward for one-year fixed-rate notes, increasing from 3.26% at the
start of the reporting period to 4.42% on March 31, 1995.
The portfolio of the Trust responded relatively well to the increase in
short-term interest rates over the reporting period. The seven-day yield of
the Trust's Institutional Service Shares rose from 1.85% at the beginning of
the reporting period to 3.63% on March 31, 1995.* For the Trust's Investment
Shares, the seven-day yield rose from 1.70% at the beginning of the reporting
period to 3.48% on March 31, 1995.*
Q. Did you make any strategic changes to the Trust's portfolio in this rate
atmosphere?
A. We added to the Trust's holdings of short maturity commercial paper (CP) and
VRDNs in order to increase the responsiveness to changes in short-term interest
rates. VRDNs adjust quickly to changes in Fed policy as well as supply and
demand imbalances that are unique to the municipal money markets. The purchase
of CP allows us to pick up an additional yield premium over VRDNs over time
while still retaining portfolio responsiveness to further rate increases.
Also, the average maturity of the Trust was targeted within a range of 45 to 55
days, with an emphasis on the shorter end of the target range.
*Performance quoted is past performance and is not indicative of future
results. Yield will vary.
Q. What is your overall outlook for rates in the near future?
A. Amid reports of a slightly slowing economy and restrained inflation, it
appears that the Fed may be nearing the end of its tightening cycle. We would
expect that Fed policy will be neutral in the near term, as the Fed scrutinizes
upcoming releases on the economy and inflation for signs that either one is
stronger than expectations. As such, short-term interest rates should trade
within a range in the near future. Reflecting this neutral outlook, we have
begun to look for value further out the municipal money market yield curve, so
as to lock-in fixed rate note yields when they are attractive versus comparable
taxable securities. On March 31, 1995, the end of the reporting period, the
average maturity of the Trust was 56 days.
Tax-Free Instruments Trust
Portfolio of Investments
--------------------------------------------------------------------------------
March 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
------------- ------------------------------------------------------------------- ---------- ----------------
SHORT-TERM MUNICIPAL SECURITIES--99.5%
----------------------------------------------------------------------------------
ALABAMA--2.0%
-------------------------------------------------------------------
$ 9,310,000 Alabama Special Care Facilities Finance Authority Weekly VRDNs
(Daughters of Charity Health Systems Guaranty) VMIG1 $ 9,310,000
-------------------------------------------------------------------
4,000,000 Alabama State, IDA Revenue Bonds Weekly VRDNs (Southern Bag Corp.
Ltd.)/(SouthTrust Bank of Alabama LOC)/(Subject to AMT) P-1 4,000,000
-------------------------------------------------------------------
3,000,000 Alabama State, IDA Weekly VRDNs (Columbus Mills Inc.)/(Trust
Company Bank LOC)/(Subject to AMT) P-1 3,000,000
-------------------------------------------------------------------
1,450,000 Eutaw, AL, IDB Weekly VRDNs (Mississippi Power Company Guaranty) VMIG1 1,450,000
-------------------------------------------------------------------
6,300,000 Homewood, AL, IDA Weekly VRDNs (Mountain Brook Inn)/(SouthTrust
Bank of Alabama LOC) P-1 6,300,000
-------------------------------------------------------------------
4,575,000 St. Clair County, AL, IDB Weekly VRDNs (Series 1993)/ (EBSCO
Industries, Inc.)/(National Australia Bank Ltd. LOC)/(Subject to
AMT) A-1+ 4,575,000
-------------------------------------------------------------------
4,000,000 Vincent, AL, IDA Weekly VRDNs (Headquarters
Partnership)/(National Australia Bank Ltd. LOC) P-1 4,000,000
------------------------------------------------------------------- ----------------
Total 32,635,000
------------------------------------------------------------------- ----------------
ARIZONA--1.2%
-------------------------------------------------------------------
790,200 Gilbert, AZ, IDA Weekly VRDNs (Foxworth-Galbrath Lumber Co.)/(Bank
One, Arizona LOC) P-1 790,200
-------------------------------------------------------------------
1,777,000 Maricopa County, AZ, IDA Weekly VRDNs (Chaparral City Water
Services)/(Bank One, Arizona LOC) P-1 1,777,000
-------------------------------------------------------------------
9,725,000 Maricopa County, AZ, IDA Weekly VRDNs (Series 1984)/(Gannett Co.,
Inc. Guaranty) P-1 9,725,000
-------------------------------------------------------------------
5,203,000 Pima County, AZ, IDA Weekly VRDNs (A&P
Investments)/(Bank One, Arizona LOC) P-1 5,203,000
-------------------------------------------------------------------
1,925,000 Pima County, AZ, IDA Weekly VRDNs (BJR
Investments, Inc.)/(Bank One, Arizona LOC) P-1 1,925,000
------------------------------------------------------------------- ----------------
Total 19,420,200
------------------------------------------------------------------- ----------------
CALIFORNIA--16.1%
-------------------------------------------------------------------
$ 960,000 California Health Facilities Authority Weekly VRDNs (O'Conner
Hospital and St. Vincent's Medical Center, Inc.)/(Daughters of
Charity Health System Guaranty) VMIG1 $ 960,000
-------------------------------------------------------------------
20,000,000 California HFA Home Mortgage Revenue Bonds, 4.60% Annual TOBs
(Series 1995E)(FGIC Insured)/(Subject to AMT) Mandatory Tender
2/1/1996 A-1+ 20,000,000
-------------------------------------------------------------------
2,165,000 California Pollution Control Finance Authority, 4.25% Annual TOBs
(San Diego Gas & Electric), Mandatory Tender 8/1/1995 P-1 2,165,000
-------------------------------------------------------------------
6,000,000 California Pollution Control Finance Authority Weekly VRDNs (Series
1991)/(North County, CA Recycling & Energy Recovery)/(Union Bank of
Switzerland LOC) AAA 6,000,000
-------------------------------------------------------------------
7,000,000 California School Cash Reserve Program Authority, 4.50% TRANs
(Series 1994A)/(lndustrial Bank of Japan Ltd. LOC), 6/28/1995 MIG1 7,010,565
-------------------------------------------------------------------
25,000,000 California School Cash Reserve Program Authority, 4.50% TRANs
(Series 1994A)/(California School Cash Reserve Program), 7/5/1995 MIG1 25,046,979
-------------------------------------------------------------------
4,000,000 California State, 8.50% SB, 11/1/1995 A1 4,083,590
-------------------------------------------------------------------
17,500,000 California State Monthly VRNs (Series C), 6/30/1995 SP-1+ 17,500,000
-------------------------------------------------------------------
35,000,000 California State, Revenue Anticipation Warrants, 5.75% RANs (Series
C)/(Toronto-Dominion Bank, Bank of Nova Scotia, Banque Nationale de
Paris, Canadian Imperial Bank of Commerce, Chemical Bank, Citibank,
N.A. Credit Suisse, Morgan Guaranty Trust Co., National Westminster
Bank PLC, Societe General North America, Inc., Sumitomo Bank Ltd.,
Swiss Bank Corporation, New York, Westdeutsche Landesbank, Bank of
America NT & SA LOCs), 6/30/1995 SP-1 35,327,946
-------------------------------------------------------------------
$ 10,000,000 **Clipper, CA, Tax-Exempt Trust (94-2) Weekly VRDNs (State Street
Bank & Trust Co. BPA)/(Toronto-Dominion Bank, Bank of Nova Scotia,
Banque Nationale de Paris, Canadian Imperial Bank of Commerce,
Chemical Bank, Citibank N.A. & Credit Suisse LOCs) VMIG1 $ 10,000,000
-------------------------------------------------------------------
4,365,000 Kern County Community College District, CA, 4.625% BANs (1994
Project Refunding Notes), 7/15/1995 MIG1 4,371,937
-------------------------------------------------------------------
24,250,000 Los Angeles County, CA, Metropolitan Transportation Authority,
3.95% CP (ABN AMRO Bank N.V., Banque Nationale de Paris, Canadian
Imperial Bank of Commerce, National Westminster Bank, PLC, London
and Bank of California N.A. LOCs), Mandatory Tender
4/10/1995 A-1 24,241,755
-------------------------------------------------------------------
6,600,000 Los Angeles County, CA, Metropolitan Transportation Authority,
4.05% CP (ABN AMRO Bank N.V., Banque Nationale de Paris, Canadian
Imperial Bank of Commerce, National Westminster Bank, PLC and Bank
of California N.A. LOCs), Mandatory Tender 4/13/1995 A-1 6,600,000
-------------------------------------------------------------------
6,000,000 Los Angeles County, CA, Metropolitan Transportation Authority
General Revenue Bonds Weekly VRDNs (Series 1995A)/(Union Station
Gateway)/(FSA Insured)/ (Societe Generale, Paris BPA) A-1+ 6,000,000
-------------------------------------------------------------------
3,700,000 Los Angeles, CA, Wastewater System, 4.25% CP, Mandatory Tender
5/19/1995 A-1 3,700,000
-------------------------------------------------------------------
400,000 Orange County, CA, IDA Weekly VRDNs (Hon Development Corp.)/(Series
1985B--Niguel Summit II)/ (Bank of America NT and SA LOC) VMIG1 400,000
-------------------------------------------------------------------
17,250,000 Orange County, CA, IDA Weekly VRDNs (Series 1991A)/ (The
Lakes)/(Citibank N.A. LOC) A-1 17,250,000
-------------------------------------------------------------------
8,725,000 Riverside County, CA, 4.25% TRANs, 6/30/1995 SP-1+ 8,677,013
-------------------------------------------------------------------
36,000,000 San Bernardino County, CA, 4.50% TRANs, 7/31/1995 SP-1+ 36,068,515
-------------------------------------------------------------------
$ 20,175,000 San Diego, CA, Area Local Governments Certificates of
Participation, 4.50% TRANs (Series 1994)/(MBIA Insured), 6/30/1995 AAA $ 20,099,344
-------------------------------------------------------------------
8,340,000 Stanislaus County, CA, Office of Education, 4.25% TRANs, 7/10/1995 SP-1+ 8,352,098
------------------------------------------------------------------- ----------------
Total 263,854,742
------------------------------------------------------------------- ----------------
COLORADO--4.0%
-------------------------------------------------------------------
30,000,000 Arapahoe County, CO, Improvement Authority, 4.45% Semi-Annual TOBs
(Series M)/(E-470 Project)/(Swiss Bank Corp., New York LOC),
Optional Tender 8/31/1995 SP-1+ 30,000,000
-------------------------------------------------------------------
15,000,000 Lower Colorado River Authority, 4.25% CP (Series B), Mandatory
Tender 5/11/1995 A-1 15,000,000
-------------------------------------------------------------------
2,100,000 Lower Colorado River Authority, 4.05% CP, (Series C)/ (Morgan
Guaranty BPA), Mandatory Tender 4/24/1995 A-1 2,100,000
-------------------------------------------------------------------
4,400,000 Lower Colorado River Authority, 4.05% CP (Series B)/ (Morgan
Guaranty BPA), Mandatory Tender 4/25/1995 A-1 4,400,000
-------------------------------------------------------------------
10,000,000 Lower Colorado River Authority, 4.25% CP, (Series D), Mandatory
Tender 5/11/1995 A-1 10,000,000
-------------------------------------------------------------------
4,800,000 Moffat County, CO, PCR Weekly VRDNs (Series 1984)/ (Colorado UTE
Electric Association)/(NRUCFC Guaranty) A-1+ 4,800,000
------------------------------------------------------------------- ----------------
Total 66,300,000
------------------------------------------------------------------- ----------------
CONNECTICUT--1.0%
-------------------------------------------------------------------
5,000,000 **Clipper Connecticut Tax Exempt Trust Weekly VRDNs (Series 1994-1) VMIG1 5,000,000
-------------------------------------------------------------------
10,300,000 Connecticut Development Health Care Facilities Weekly VRDNs
(Independence Living, Inc.)/(Credit Commercial de France LOC) VMIG1 10,300,000
-------------------------------------------------------------------
$ 1,300,000 Connecticut State HFA, 3.55% Annual TOBs (Series
G-1)/(Housing Mortgage Finance Program), Mandatory Tender 5/15/1995 A-1+ $ 1,300,000
------------------------------------------------------------------- ----------------
Total 16,600,000
------------------------------------------------------------------- ----------------
DELAWARE--1.5%
-------------------------------------------------------------------
25,194,000 **Delaware Health Facilities Authority Weekly VRDNs (Series 1985
BTP-19A)/(The Medical Center of Delaware)/(MBIA Insured) 25,194,000
------------------------------------------------------------------- ----------------
FLORIDA--5.2%
-------------------------------------------------------------------
2,500,000 Charlotte County School District, FL, 4.50% TANs (Series 1994)
6/30/1995 MIG1 2,503,598
-------------------------------------------------------------------
16,000,000 **Floating Rate Trust Certificate Weekly VRDNs (Dade County, FL,
School District)/(FGIC Insured) P-1 16,000,000
-------------------------------------------------------------------
2,250,000 **Floating Rate Trust Certificate Weekly VRDNs (Dade County, FL,
School District)/(FGIC Insured) P-1 2,250,000
-------------------------------------------------------------------
6,980,000 Florida HFA Weekly VRDNs (Cornerstone)/(PNC Bank N.A. LOC) A-1 6,980,000
-------------------------------------------------------------------
20,400,000 Florida Municipal Loan Council, 4.25% CP (Series
1985-1)/(Florida League of Cities)/(Sumitomo Bank Ltd. LOC),
Mandatory Tender 5/15/1995 VMIG1 20,400,000
-------------------------------------------------------------------
6,895,000 Florida State Board of Education Capital Outlay, 4.30% Semi-Annual
TOBs (CR 48)/(Series 1989A)/(Citibank, N.A. BPA), Optional Tender
7/1/1995 NR(2) 6,895,000
-------------------------------------------------------------------
7,340,000 Florida State Board of Education Capital Outlay, 4.30% Semi-Annual
TOBs (CR 48D)/(Series 1989A)/(Citibank, N.A. BPA), Optional Tender
6/1/1995 NR(2) 7,340,000
-------------------------------------------------------------------
3,615,000 Florida State Board of Education Capital Outlay, 4.30% Semi-Annual
TOBs (CR 49)/(Series 1989A)/(Citibank, N.A. BPA), Optional Tender
7/1/1995 NR(2) 3,615,000
-------------------------------------------------------------------
$ 3,910,000 Florida State Board of Education Capital Outlay, 4.30% Semi-Annual
TOBs (CR 55)/(Series 1989A)/(Citibank, N.A. BPA), Optional Tender
7/1/1995 AA $ 3,910,000
-------------------------------------------------------------------
5,500,000 Hillsborough County, FL, Aviation Authority, 4.15% CP (Tampa
International Airport)/(National Westminster Bank, PLC, London
LOC)/(Subject to AMT), Mandatory Tender 5/18/1995 A-1+ 5,500,000
-------------------------------------------------------------------
1,000,000 Hillsborough County, FL, IDA Weekly VRDNs (Series 1988)/(Florida
Steel Corp.)/(Bankers Trust Co. LOC) P-1 1,000,000
-------------------------------------------------------------------
1,500,000 Jacksonville, FL, Health Facility Authority Weekly VRDNs (Series
1994)/(River Garden/The Coves)/(First Union National Bank of North
Carolina LOC) A+ 1,500,000
-------------------------------------------------------------------
6,046,000 Orange County, FL, 4.15% CP, Mandatory Tender
4/7/1995 A-1+ 6,046,000
-------------------------------------------------------------------
400,000 Suwannee County, FL, Weekly VRDNs (Series 1989)/ (Advent Christian
Village)/(Barnett Bank of Jacksonville LOC) VMIG1 400,000
------------------------------------------------------------------- ----------------
Total 84,339,598
------------------------------------------------------------------- ----------------
GEORGIA--2.2%
-------------------------------------------------------------------
3,445,000 Bartow County, GA, School District, 4.68% TANs, (Series 1995),
12/29/1995 NR(3) 3,451,182
-------------------------------------------------------------------
6,900,000 Cherokee County, GA, Development Authority, IDRB Weekly VRDNs
(Series 1995)/MVE, Inc.)/(Bank One, Milwaukee N.A. LOC)/(Subject to
AMT) P-1 6,900,000
-------------------------------------------------------------------
4,275,000 Cobb County, GA, IDR Weekly VRDNs (Atlanta RDC Co.)/(First Union
National Bank LOC) P-1 4,275,000
-------------------------------------------------------------------
6,905,000 Columbus, GA, Industrial and Port Development Commission Weekly
VRDNs (Series 1992)/(Main Street Village Partnership)/(Columbus
Bank & Trust Co. LOC) A-1 6,905,000
-------------------------------------------------------------------
1,500,000 Fulton County, GA, IDA Weekly VRDNs (Automated Data Processing Co.
Guaranty) P-1 1,500,000
-------------------------------------------------------------------
$ 5,000,000 Fulton County, GA, Multi-Family Housing Authority Revenue Refunding
Weekly VRDNs (Series 1994)/ (Spring Creek Crossing)/(Wachovia Bank
of Atlanta, GA N.A. LOC) A-1+ $ 5,000,000
-------------------------------------------------------------------
2,100,000 Gwinnett County, GA, IDA Daily VRDNs (Volvo of America,
Inc.)/(Union Bank of Switzerland LOC)/
(Subject to AMT) P-1 2,100,000
-------------------------------------------------------------------
3,000,000 La Grange, GA, Multi-Family Housing Authority Revenue Bonds, 3.95%
Semi-Annual TOBs (Lee's Crossing Project Phase I)/(Barnett Bank of
Jacksonville N.A. LOC), Optional Tender 5/1/1995 P-1 3,000,000
-------------------------------------------------------------------
3,180,000 La Grange, GA, Multi-Family Housing Authority Revenue Bonds, 3.95%
Semi-Annual TOBs (Lee's Crossing Project Phase II)/(Barnett Bank of
Jacksonville N.A. LOC), Optional Tender 5/1/1995 P-1 3,180,000
------------------------------------------------------------------- ----------------
Total 36,311,182
------------------------------------------------------------------- ----------------
ILLINOIS--4.7%
-------------------------------------------------------------------
1,650,000 Champaign, IL, IDRB Weekly VRDNs (Christie Clinic)/ (National City
Bank LOC) A-1 1,650,000
-------------------------------------------------------------------
4,000,000 Illinois Development Finance Authority, PCR Daily VRDNs (Diamond
Star Motors)/(Mitsubishi Bank, Ltd. LOC) VMIG1 4,000,000
-------------------------------------------------------------------
1,033,000 Illinois Development Finance Authority Weekly VRDNs (Newlywed
Food)/(Mellon Bank N.A. LOC) A-1 1,033,000
-------------------------------------------------------------------
2,500,000 Illinois Development Finance Authority EDRB Weekly VRDNs (Series
1995)/(Evapco, Inc.)/(Nationsbank of Maryland, N.A. LOC)/(Subject
to AMT) A-1 2,500,000
-------------------------------------------------------------------
4,000,000 Illinois Development Finance Authority, IDRB Weekly VRDNs (Series
1995)/(Dickson Weatherproof Nail Co.)/ (Bank One, Chicago
LOC)/(Subject to AMT) P-1 4,000,000
-------------------------------------------------------------------
$ 3,000,000 Illinois Educational Facilities Authority Weekly VRDNs (Series
1992)/(DePaul University)/(Sanwa Bank Ltd. LOC) VMIG1 $ 3,000,000
-------------------------------------------------------------------
7,500,000 Illinois Educational Facilities Authority, 4.25% CP (Field Museum
of Natural History)/(Sanwa Bank Ltd. LOC), Mandatory Tender
5/10/1995 VMIG1 7,500,000
-------------------------------------------------------------------
40,000,000 Illinois Health Facilities Authority, 4.17% CP (Series 1985B)/(OSF
Health Care Systems)/(Swiss Bank Corp., New York LOC), Mandatory
Tender 4/5/1995 A-1+ 40,000,000
-------------------------------------------------------------------
5,000,000 Mendota, IL, IDRB Weekly VRDNs (Series 1995)/ (Minnesota
Diversified Products, Inc.)/(Norwest Bank Minnesota LOC)/(Subject
to AMT) A-1+ 5,000,000
-------------------------------------------------------------------
2,000,000 Naperville, IL, EDRB Weekly VRDNs (Series 1994)/ (Independence
Village Associates Ltd.)/(First Bank N.A. LOC) P-1 2,000,000
-------------------------------------------------------------------
3,500,000 Oakbrook Terrace, IL, IDR Weekly VRDNs (Series 1993)/ (La Quinta
Motor Inns, Inc.)/(NationsBank of Texas N.A. LOC) P-1 3,500,000
-------------------------------------------------------------------
2,635,000 Rockford, IL, EDRB, 4.95% Annual TOBs (Independence Village of
Rockford)/(Banque Paribas LOC), Optional Tender 12/1/1995 A-1 2,635,000
------------------------------------------------------------------- ----------------
Total 76,818,000
------------------------------------------------------------------- ----------------
INDIANA--3.3%
-------------------------------------------------------------------
2,200,000 Bluffton, IN, Economic Development Refunding Revenue Bonds Weekly
VRDNs (Blount, Inc.)/(Credit Lyonnais, Paris LOC) P-1 2,200,000
-------------------------------------------------------------------
6,600,000 Elkhart, IN, Community Schools, 5.75% TANs, 12/29/1995 NR 6,617,492
-------------------------------------------------------------------
2,565,000 Hamilton County, IN, Hospital Authority Weekly VRDNs (Daughters of
Charity Health Systems Guaranty) VMIG1 2,565,000
-------------------------------------------------------------------
2,900,000 Huntington County, IN, Community School Corporation, 5.00% TANs,
12/29/1995 NR 2,908,258
-------------------------------------------------------------------
$ 25,000,000 Indiana Bond Bank Advance Funding Program Notes, VRNs (Series 1995
A-3), 1/10/1996 SP-1+ $ 25,000,000
-------------------------------------------------------------------
7,000,000 Indianapolis, IN, Economic Development Revenue Bonds Weekly VRDNs
(Series 1995)/(Veltri Stamping Corporation)/(NBD Bank, N.A.,
Detroit LOC)/(Subject to AMT) P-1 7,000,000
-------------------------------------------------------------------
7,000,000 Richmond, IN, EDA Weekly VRDNs (Gannett Co. Guaranty) P-1 7,000,000
------------------------------------------------------------------- ----------------
Total 53,290,750
------------------------------------------------------------------- ----------------
IOWA--0.2%
-------------------------------------------------------------------
3,500,000 Des Moines, IA, IDR, Weekly VRDNs (Series 1994)/(The Printer,
Inc.)/(Norwest Bank Minnesota LOC)/(Subject to AMT) A-1+ 3,500,000
------------------------------------------------------------------- ----------------
KANSAS--0.7%
-------------------------------------------------------------------
4,000,000 Burlington, KS, PCR, 4.35% CP (Kansas City Power & Light
Co.)/(Societe Generale, Paris LOC), Mandatory Tender 5/18/1995 P-1 4,000,000
-------------------------------------------------------------------
6,000,000 Kansas State Development Finance Authority Weekly VRDNs Multifamily
Housing Revenue Bonds (Series 1995)/(First Kansas State
Partnership, L.P.)/(Boatmen's National Bank of St. Louis
LOC)/(Subject to AMT) VMIG1 6,000,000
-------------------------------------------------------------------
2,000,000 Olathe, KS, Industrial Revenue Bonds Weekly VRDNs (Series
1995)/(Garmin International, Inc.)/(Boatmen's National Bank of St.
Louis LOC)/(Subject to AMT) A-1 2,000,000
------------------------------------------------------------------- ----------------
Total 12,000,000
------------------------------------------------------------------- ----------------
KENTUCKY--4.2%
-------------------------------------------------------------------
5,100,000 Clark County, KY, IDRB Weekly VRDNs (Series 1995)/ (International
Processing Corp)/(Bank One, Lexington, N.A. LOC)/Subject to AMT) P-1 5,100,000
-------------------------------------------------------------------
$ 20,450,000 Daviess County, KY, Hospital Revenue Authority Weekly VRDNs
(Owensboro Daviess Hospital)/(Sumitomo Bank Ltd. LOC) P-1 $ 20,450,000
-------------------------------------------------------------------
2,160,000 Jefferson County, KY, Industrial Building Revenue Bonds Weekly
VRDNs (Series 1995)/Derby Industries, Inc.)/ (Liberty National Bank
& Trust Co. LOC)/(Subject to AMT) P-1 2,160,000
-------------------------------------------------------------------
39,100,000 Kentucky Pollution Abatement & Water Resource Finance Authority
Daily VRDNs (Toyota Motor Corp. Guaranty)/(Subject to AMT) A-1+ 39,100,000
-------------------------------------------------------------------
1,800,000 Owensboro, KY, Limited Obligation Revenue Bonds, 4.45% Semi-Annual
TOBs (Dart Polymers)/(NBD Bank, NS, Detroit LOC), Optional Tender
5/31/1995 P-1 1,800,000
------------------------------------------------------------------- ----------------
Total 68,610,000
------------------------------------------------------------------- ----------------
LOUISIANA--1.0%
-------------------------------------------------------------------
5,770,000 Louisiana PFA Advance Funding Notes, 4.60% TANs (Series 1994C)/(St.
Charles Parish School Board),
8/31/1995 SP-1+ 5,779,245
-------------------------------------------------------------------
10,900,000 Louisiana PFA, 4.40% CP (Our Lady of Lake Hospital)/ (FSA Insured),
Mandatory Tender 5/11/1995 A-1 10,900,000
------------------------------------------------------------------- ----------------
Total 16,679,245
------------------------------------------------------------------- ----------------
MAINE--0.2%
-------------------------------------------------------------------
2,750,000 Gardner, ME, IDB Weekly VRDNs (Associated Grocers)/ (Westpac
Banking Corp. LOC) P-1 2,750,000
------------------------------------------------------------------- ----------------
MARYLAND--0.8%
-------------------------------------------------------------------
1,587,000 Anne Arundel County, MD, Weekly VRDNs (Series 1988)/(Oakland Hills
L.P. Facility)/(NationsBank of Virginia N.A. LOC) P-1 1,587,000
-------------------------------------------------------------------
1,864,000 Howard County, MD, Weekly VRDNs (Series 1990)/
(Nick B. & Mary C. Mangione)/(NationsBank of Maryland LOC) P-1 1,864,000
-------------------------------------------------------------------
$ 600,000 Maryland IFA Weekly VRDNs (Series 1994)/(Johnson Controls, Inc.
Guaranty) VMIG1 $ 600,000
-------------------------------------------------------------------
1,965,000 Maryland State, EDA Weekly VRDNs (Series 1991)/ (Maryland Academy
of Sciences Facility)/(NationsBank of North Carolina N.A. LOC) VMIG1 1,965,000
-------------------------------------------------------------------
1,700,000 Maryland State, HEFA Weekly VRDNs (Series 1992A)/ (Carroll Co.
General Hospital)/(NationsBank of Maryland LOC) P-1 1,700,000
-------------------------------------------------------------------
3,900,000 Montgomery County, MD, EDA Weekly VRDNs (U.S. Pharmacopeial
Convention Facility)/(Chemical Bank LOC) VMIG1 3,900,000
-------------------------------------------------------------------
1,100,000 Montgomery County, MD, Housing Opportunities
Commission, Weekly VRDNs (Series 1985)/(Overlook II
Project)/(NationsBank of Virginia N.A. LOC) VMIG1 1,100,000
------------------------------------------------------------------- ----------------
Total 12,716,000
------------------------------------------------------------------- ----------------
MASSACHUSETTS--3.7%
-------------------------------------------------------------------
4,000,000 Boston, MA, Water & Sewer Commission Weekly VRDNs (Series
1994A)/(State Street Bank and Trust Co. LOC) VMIG1 4,000,000
-------------------------------------------------------------------
16,879,500 **Clipper, MA, Tax Exempt Trust Weekly VRDNs (State Street Bank
BPA) VMIG1 16,879,500
-------------------------------------------------------------------
6,000,000 Massachusetts Bay Transit Authority, 4.10% CP (Industrial Bank of
Japan Ltd. LOC), Mandatory
Tender 5/23/1995 VMIG1 6,000,000
-------------------------------------------------------------------
2,650,000 Massachusetts HEFA Weekly VRDNs (Series E)/(Capital Asset
Program)/(Sanwa Bank Ltd. LOC) A-1+ 2,650,000
-------------------------------------------------------------------
5,350,000 Massachusetts HEFA, 4.15% CP (Harvard University), Mandatory Tender
5/22/1995 A-1+ 5,350,000
-------------------------------------------------------------------
2,500,000 Massachusetts IFA Weekly VRDNs (Kendall Square, Inc.)/(National
Westminster Bank PLC LOC) A-1+ 2,500,000
-------------------------------------------------------------------
$ 14,000,000 Massachusetts IFA, 4.05% CP (Series 1993A)/(New England Power Co.
Guaranty), Mandatory Tender
4/25/1995 A-1 $ 14,000,000
-------------------------------------------------------------------
2,000,000 North Adams, MA, 3.83% BANs, 6/30/1995 NR(3) 2,000,138
-------------------------------------------------------------------
4,000,000 North Adams, MA, 4.25% BANs, 6/30/1995 NR(3) 4,004,260
-------------------------------------------------------------------
2,899,333 North Adams, MA, 4.50% BANs, 6/30/1995 NR(3) 2,904,137
------------------------------------------------------------------- ----------------
Total 60,288,035
------------------------------------------------------------------- ----------------
MICHIGAN--3.4%
-------------------------------------------------------------------
1,000,000 Cornell, MI, Economic Development Corp., IDRB, 4.15% CP (Series
1990)/(Mead-Escanaba Paper Co.)/(Credit Suisse LOC), Mandatory
Tender 7/27/1995 A-1+ 1,000,000
-------------------------------------------------------------------
500,000 Delta County, MI, Economic Development Corp., 3.70% CP (Series
1985B)/ (Mead-Escanaba Paper Co.)/(Union Bank of Switzerland LOC),
Mandatory Tender 5/25/1995 P-1 500,000
-------------------------------------------------------------------
1,000,000 Flint, MI, EDA Weekly VRDNs (PPG Industries, Inc. Guaranty) P-1 1,000,000
-------------------------------------------------------------------
2,700,000 Michigan State Hospital Finance Authority Weekly VRDNs (Series
A)/(Sisters of the Third Order of St. Francis)/(Swiss Bank Corp.
LOC) P-1 2,700,000
-------------------------------------------------------------------
2,800,000 Michigan State Hospital Finance Authority Weekly VRDNs (Series
1994)/(Mt. Clemens General Hospital)/ (Comerica Bank LOC) VMIG1 2,800,000
-------------------------------------------------------------------
4,300,000 Michigan State Housing Development Authority Weekly VRDNs (Series
1992B)/(Sumitomo Bank Ltd. LOC) A-1 4,300,000
-------------------------------------------------------------------
3,100,000 Michigan State Job Development Authority Weekly VRDNs (Andersons
Project)/(Credit Lyonnais, Paris LOC) VMIG1 3,100,000
-------------------------------------------------------------------
3,500,000 Michigan State Strategic Fund Limited Obligation Revenue Bonds
Weekly VRDNs (Series 1995)/(Wellness Plan)/(NBD Bank, N.A., Detroit
LOC) A-1+ 3,500,000
-------------------------------------------------------------------
$ 3,500,000 Michigan State Strategic Fund Solid Waste Disposal Revenue Bonds,
3.90% CP (Series 1987B)/(SD Warren Company Project)/(Sumitomo Bank
Ltd. LOC), Mandatory Tender 5/25/1995 A-1 $ 3,500,000
-------------------------------------------------------------------
30,000,000 Michigan State, GO Notes, 5.00% TRANs, 9/29/1995 SP-1+ 30,114,854
-------------------------------------------------------------------
2,600,000 Sterling Heights, MI, Economic Development Corp. Weekly VRDNs (PPG
Industries, Inc. Guaranty) P-1 2,600,000
------------------------------------------------------------------- ----------------
Total 55,114,854
------------------------------------------------------------------- ----------------
MINNESOTA--1.3%
-------------------------------------------------------------------
8,000,000 Becker, MN, PCR, 4.40% CP (Series 1992A)/(Northern States Power Co.
Guaranty), Mandatory Tender
7/21/1995 VMIG1 8,000,000
-------------------------------------------------------------------
7,900,000 Becker, MN, PCR, 4.15% CP (Series 1993A & B)/
Northern States Power Co. Guaranty), Mandatory Tender 8/18/1995 VMIG1 7,900,000
-------------------------------------------------------------------
5,000,000 Becker, MN, PCR, 4.40% CP (Series 1993A & B)/
Northern States Power Company Guaranty), Mandatory Tender 7/21/1995 VMIG1 5,000,000
------------------------------------------------------------------- ----------------
Total 20,900,000
------------------------------------------------------------------- ----------------
MISSISSIPPI--0.2%
-------------------------------------------------------------------
4,000,000 Warren County, MS, IDA Weekly VRDNs (Vesper Corp.)/(PNC Bank, N.A.
LOC)/(Subject to AMT) P-1 4,000,000
------------------------------------------------------------------- ----------------
MISSOURI--1.1%
-------------------------------------------------------------------
5,000,000 Missouri State Environmental Improvement & Energy Authority, 3.90%
CP (Kansas City Power and Light Co. Guaranty), Mandatory Tender
5/25/1994 A-1 5,000,000
-------------------------------------------------------------------
10,000,000 Missouri State HEFA, 4.30% CP (Series 1988C)/(SSM Health
Care)/(Mitsubishi Bank Ltd. LOC), Mandatory Tender 5/23/1995 VMIG1 10,000,000
-------------------------------------------------------------------
$ 2,400,000 Sedalia, MO, IDA Weekly VRDNs (Cooper Industries)/ (Sanwa Bank Ltd.
LOC) $ 2,400,000
------------------------------------------------------------------- ----------------
Total 17,400,000
------------------------------------------------------------------- ----------------
MONTANA--0.1%
-------------------------------------------------------------------
1,600,000 Forsyth, Rosebud County, MT, PCR Daily VRDNs
(Pacificorp)/(Mitsubishi Bank Ltd. LOC)/(Subject to AMT) P-1 1,600,000
------------------------------------------------------------------- ----------------
NEBRASKA--0.1%
-------------------------------------------------------------------
1,250,000 Douglas County, NE, IDRB Weekly VRDNs (Series 1994)/(Omaha Fixture
Manufacturing)/(NBD Bank, N.A. LOC) P-1 1,250,000
------------------------------------------------------------------- ----------------
NEW HAMPSHIRE--0.9%
-------------------------------------------------------------------
2,100,000 New Hampshire Business Finance Authority, PCR, 4.45% CP (Series
1990A)/(New England Power Co.)/(Subject to AMT), Mandatory Tender
5/18/1995 A-1 2,100,000
-------------------------------------------------------------------
12,600,000 New Hampshire Business Finance Authority, PCR, 4.45% CP (Series
A)/(New England Power Co.)/(Subject to AMT), Mandatory Tender
7/27/1995 A-1 12,600,000
------------------------------------------------------------------- ----------------
Total 14,700,000
------------------------------------------------------------------- ----------------
NEW JERSEY--1.6%
-------------------------------------------------------------------
5,000,000 Mercer County, NJ, 5.50% BANs, 9/20/1995 NR(3) 5,013,596
-------------------------------------------------------------------
4,100,000 Mercer County, NJ, Improvement Authority Weekly VRDNs (Pooled
Governmental Loan)/(Credit Suisse LOC) A-1+ 4,100,000
-------------------------------------------------------------------
5,800,000 New Jersey EDA Weekly VRDNs (Centu-For-Aging-- Applewood
Estates)/(Banque Paribas LOC) A-1 5,800,000
-------------------------------------------------------------------
800,000 New Jersey EDA Weekly VRDNs (Church & Dwight, Inc.)/(Bank of Nova
Scotia LOC) P-1 800,000
-------------------------------------------------------------------
440,907 New Jersey EDA Weekly VRDNs (H.L. Bhasin)/(Dai-Ichi Kangyo Bank
Ltd. LOC and Ford Motor Credit BPA) P-1 440,907
-------------------------------------------------------------------
$ 5,000,000 New Jersey State HFA, 4.00% Semi-Annual TOBs Custody Receipts
(Series 1992A), Optional Tender
5/1/1995 NR(2) $ 5,000,000
-------------------------------------------------------------------
4,300,000 **New Jersey Transportation Trust Fund Agency Weekly VRDNs (Series
1993A)/(FSA Insured) VMIG1 4,300,000
------------------------------------------------------------------- ----------------
Total 25,454,503
------------------------------------------------------------------- ----------------
NEW MEXICO--0.6%
-------------------------------------------------------------------
9,400,000 Farmington, NM, PCR Daily VRDNs (Series 1994C)/
(Arizona Public Service Corp.)/(Union Bank of Switzerland
LOC)/(Subject to AMT) A-1+ 9,400,000
------------------------------------------------------------------- ----------------
NEW YORK--6.2%
-------------------------------------------------------------------
4,350,000 Erie Co., NY, 4.75% RANs (Union Bank of Switzerland LOC), 8/15/1995 MIG1 4,356,956
-------------------------------------------------------------------
2,000,000 Herkimer County, NY, IDA, Weekly VRDNs (Series 1994)/(Granny's
Kitchens, Ltd.)/(Bank of New York, New York LOC)/(Subject to AMT) A-1 2,000,000
-------------------------------------------------------------------
8,780,000 New York City, NY, 4.50% RANs (Series A), 4/12/1995 SP-1 8,782,052
-------------------------------------------------------------------
6,000,000 New York City, NY, Monthly VRDNs (Series B) SP-1 6,000,000
-------------------------------------------------------------------
8,000,000 **New York City, NY, Municipal Water Finance Authority Weekly VRDNs
(Series 1992A)/(MBIA Insured, Hong Kong & Shanghai Banking Corp.
BPA) VMIG1 8,000,000
-------------------------------------------------------------------
12,000,000 **New York State Medical Care Facilities Finance Agency Weekly
VRDNs (Series 1993G)/(St. Luke's--Roosevelt Hospital Center)/(FHA
Insured, Hong Kong & Shanghai Banking Corp. BPA) A-1+ 12,000,000
-------------------------------------------------------------------
4,650,000 **New York State Medical Care Facilities Finance Authority Hospital
& Nursing Home Mortgage Revenue Bonds Weekly VRDNs (Series
1994C)/(FHA Insured & Merrill Lynch Capital Services, Inc. BPA) A-1+ 4,650,000
-------------------------------------------------------------------
$ 3,700,000 **New York State Mortgage Agency Weekly VRDNs (Series
PA-29)/(Merrill Lynch Capital Services, Inc. BPA)/(Subject to AMT) VMIG1 $ 3,700,000
-------------------------------------------------------------------
5,000,000 **New York State Mortgage Agency Weekly VRDNs (Series
PA-87)/(Merrill Lynch Capital Services, Inc. BPA)/(Subject to AMT) VMIG1 5,000,000
-------------------------------------------------------------------
6,980,000 **New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds
Weekly VRDNs (Series PT-15B)/(Dai-Ichi Kangyo Bank BPA)/(Subject to
AMT) VMIG1 6,980,000
-------------------------------------------------------------------
13,110,000 Niagara County, NY IDA Solid Waste Disposal Facility Revenue Bonds,
4.25% CP (Series A)/(American Ref-Fuel Company)/(Browning-Ferris
Industries, Inc. Guaranty)/ (Air Products and Chemical, Inc.
Guaranty), Mandatory Tender 5/2/1995 A-1 13,110,000
-------------------------------------------------------------------
3,000,000 Niagara County, NY, IDA Weekly VRDNs (Allegheny Ludlum Corp.)/(PNC
Bank, N.A. LOC) A-1 3,000,000
-------------------------------------------------------------------
15,000,000 Suffolk County, NY, 5.25% TANs (Series I)/ (Westdeutsche Landesbank
Gironzentrale LOC),
8/15/1995 SP-1+ 15,024,498
-------------------------------------------------------------------
7,000,000 **VRDC/IVRC Trust Weekly VRDNs (Series 1993B)/(New York
Metropolitan Transportation Authority)/(AMBAC Insured) AAA 7,000,000
-------------------------------------------------------------------
2,400,000 Yonkers, NY IDA Weekly VRDNs (Series 1992A)/ (Consumers Union
Facility)/(Industrial Bank of Japan Ltd. LOC) VMIG1 2,400,000
------------------------------------------------------------------- ----------------
Total 102,003,506
------------------------------------------------------------------- ----------------
NORTH CAROLINA--6.9%
-------------------------------------------------------------------
1,000,000 Alamance County, NC, Industrial Facilities Authority Weekly VRDNs
(Series A)/(Culp, Inc.)/(First Union National Bank, Charlotte LOC) VMIG1 1,000,000
-------------------------------------------------------------------
$ 10,200,000 Bladen County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Series 1993)/(BCH Energy,
L.P.)/(Bank of Tokyo Ltd. LOC)/ (Subject to AMT) VMIG1 $ 10,200,000
-------------------------------------------------------------------
3,000,000 **Charlotte, NC, Revenue Refunding Certificates of Participation
Weekly VRDNs (PA-46)/(AMBAC Insured)/
(Merrill Lynch Capital Services, Inc. LIQ) VMIG1 3,000,000
-------------------------------------------------------------------
1,000,000 Cleveland County, NC, IDA Weekly VRDNs (PPG Industries Guaranty) P-1 1,000,000
-------------------------------------------------------------------
2,000,000 Durham, NC, Public Improvement Bonds Weekly VRDNs (Series 1993) A-1+ 2,000,000
-------------------------------------------------------------------
2,400,000 **Fayetteville, NC, Public Works Commission Revenue Refunding Bonds
Weekly VRDNs (FGIC Insured)/
(Merrill Lynch Capital Services, Inc. LIQ) VMIG1 2,400,000
-------------------------------------------------------------------
7,000,000 Greensboro, NC, Certificates of Participation Weekly VRDNs (Series
1994)/(Greensboro Center City Corp.)/ (Wachovia Bank BPA) A-1+ 7,000,000
-------------------------------------------------------------------
2,500,000 Halifax County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Flambeau Airmold Corp.)/(Norwest
Bank Minnesota LOC)/(Subject to AMT) P-1 2,500,000
-------------------------------------------------------------------
8,400,000 Lenoir County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Kinston Neuse Corp)/(Branch
Banking & Trust Co. LOC)/ (Subject to AMT) P-1 8,400,000
-------------------------------------------------------------------
20,000,000 Martin County, NC, IFA Weekly VRDNs (Series 1993)/ (Weyerhauser,
Inc. Guaranty) A-1 20,000,000
-------------------------------------------------------------------
3,680,000 Mecklenberg County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Series 1988)/(Florida Steel
Corp.)/(Bankers Trust Company LOC) P-1 3,680,000
-------------------------------------------------------------------
$ 1,725,000 **NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990A)/(NationsBank of North Carolina N.A. LOC) P-1 $ 1,725,000
-------------------------------------------------------------------
6,400,000 **NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990B)/(NationsBank of North Carolina N.A. LOC) P-1 6,400,000
-------------------------------------------------------------------
2,000,000 North Carolina Eastern Municipal Power Agency, 4.10% CP (Industrial
Bank of Japan Ltd. LOC), Mandatory Tender 6/8/1995 P-1 2,000,000
-------------------------------------------------------------------
2,260,000 **North Carolina Eastern Municipal Power Agency Weekly VRDNs
(P-Floats)/(Series PA-34B)/(Merrill Lynch Capital Services
BPA)/(Prerefunded) VMIG1 2,260,000
-------------------------------------------------------------------
2,000,000 North Carolina Educational Facilities Finance Agency Weekly VRDNs
(Series 1987A)/(Duke University
Guaranty) A-1+ 2,000,000
-------------------------------------------------------------------
1,500,000 North Carolina Educational Facilities Finance Agency Weekly VRDNs
(Series 1990)/(Bowman Gray School of Medicine)/(Wachovia Bank of
NC, NA LOC) VMIG1 1,500,000
-------------------------------------------------------------------
5,000,000 North Carolina Medical Care Commission Hospital
Revenue Bonds Weekly VRDNs (Series 1994)/(Hugh Chatham
Memorial/Rutherford Hospitals)/(First Union National Bank LOC) VMIG1 5,000,000
-------------------------------------------------------------------
300,000 North Carolina Medical Care Commission Hospital
Revenue Weekly VRDNs (Series 1993)/(Moses H. Cone Memorial
Hospital) A-1+ 300,000
-------------------------------------------------------------------
6,500,000 North Carolina Medical Care Commission Hospital
Revenue Weekly VRDNs (Series 1993A)/(Duke
University Hospital) A-1+ 6,500,000
-------------------------------------------------------------------
10,000,000 North Carolina Municipal Power Agency Pound1, 4.05% CP, 4/11/1995 A-1 10,000,000
-------------------------------------------------------------------
10,000,000 North Carolina Municipal Power Agency Pound1, 4.05% CP, 4/13/1995 A-1 10,000,000
-------------------------------------------------------------------
$ 3,500,000 Onslow County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Mine Safety Appliances
Co.)/(Sanwa Bank Ltd. LOC) A-1+ $ 3,500,000
-------------------------------------------------------------------
1,500,000 Richmond County, NC, Industrial Facilities & Pollution Control
Financing Authority Weekly VRDNs (Series 1991)/(Bibb
Company)/(Citibank, N.A. LOC)/(Subject to AMT) A-1 1,500,000
------------------------------------------------------------------- ----------------
Total 113,865,000
------------------------------------------------------------------- ----------------
OHIO--0.9%
-------------------------------------------------------------------
6,000,000 Brecksville-Broadview Heights City School District, OH, 5.71% GO
Unlimited Tax School Improvement BANs,
1/18/1996 NR(3) 6,004,992
-------------------------------------------------------------------
700,000 Cuyahoga County, OH, IDA Weekly VRDNs (Health Hill
Hospital)/(Society National Bank LOC) P-1 700,000
-------------------------------------------------------------------
1,600,000 Lucas County, OH, HFA Weekly VRDNs (Riverside
Hospital)/(Huntington National Bank LOC) P-1 1,600,000
-------------------------------------------------------------------
2,150,000 Mahoning County, OH, HFA Weekly VRDNs (Shepard of the Valley
Lutheran Home & Retirement Center)/ (PNC Bank, Ohio, N.A. LOC) P-1 2,150,000
-------------------------------------------------------------------
550,000 Oakwood Village, OH, IDA Weekly VRDNs (Oak Leaf
Industries)/(Society National Bank LOC) P-1 550,000
-------------------------------------------------------------------
3,810,000 Richland County, OH, Madison-Marlow Sewer Improvement Notes, 4.85%
BANs, 9/14/1995 NR(3) 3,819,973
------------------------------------------------------------------- ----------------
Total 14,824,965
------------------------------------------------------------------- ----------------
OKLAHOMA--0.4%
-------------------------------------------------------------------
2,295,000 Claremore, OK, IDA Weekly VRDNs (Baldor Electric Co.)/(First
National Bank, Atlanta LOC) P-1 2,295,000
-------------------------------------------------------------------
4,000,000 Oklahoma State Industries Authority Health System Revenue Bonds,
4.35% CP (Series 1995C)/(Baptist Medical Center), Mandatory Tender
5/18/1995 A-1 4,000,000
------------------------------------------------------------------- ----------------
Total 6,295,000
------------------------------------------------------------------- ----------------
PENNSYLVANIA--3.8%
-------------------------------------------------------------------
$ 1,700,000 Allegheny County, PA, ACES Weekly VRDNs (Series 1988A)/(PNC Bank
N.A. LOC) VMIG1 $ 1,700,000
-------------------------------------------------------------------
1,930,000 Allegheny County, PA, Higher Education Weekly VRDNs (Series
1985D)/(University of Pittsburgh)/(Fuji Bank Ltd. LOC) VMIG1 1,930,000
-------------------------------------------------------------------
4,680,000 Allegheny County, PA, IDA Weekly VRDNs (Eye & Ear Hospital)/(PNC
Bank N.A. LOC) P-1 4,680,000
-------------------------------------------------------------------
5,000,000 Beaver County, PA, IDA, PCR Refunding Bonds, 4.50% CP (Series
1994)/(Duquesne Light Power Co.)/(Swiss Bank Corp. LOC), Mandatory
Tender 10/10/1995 A-1+ 5,000,000
-------------------------------------------------------------------
5,000,000 Berks County, PA, 5.20% TRANs (Series 1995), 12/31/1995 NR(3) 5,000,000
-------------------------------------------------------------------
20,000,000 Commonwealth of Pennsylvania, 4.75% TANs (First of Series
1994-1995), 6/30/1995 SP-1+ 20,035,929
-------------------------------------------------------------------
3,100,000 Erie County, PA, Hospital Authority Weekly VRDNs
(St. Mary's Hospital)/(Marine Bank LOC) NR(3) 3,100,000
-------------------------------------------------------------------
2,000,000 Montgomery County, PA, IDA Weekly VRDNs (Plymouth Woods)/(PNC Bank
N.A. LOC) P-1 2,000,000
-------------------------------------------------------------------
2,500,000 Montgomery County, PA, IDA Weekly VRDNs Commercial Development
Revenue Bonds (Series 1992)/ (Hickory Pointe)/(First Fidelity Bank
N.A. LOC) P-1 2,500,000
-------------------------------------------------------------------
2,550,000 Moon Township, PA, IDA Weekly VRDNs (Airport Hotel
Associates)/(ABN-AMRO Bank N.V., Amsterdam LOC) A-1+ 2,550,000
-------------------------------------------------------------------
1,000,000 Pennsylvania Authority for Improvements in Municipalities Weekly
VRDNs (Pooled Hospital Equipment & Leasing Program)/(MBIA
Insured)/(Swiss Bank Corporation PTC) VMIG1 1,000,000
-------------------------------------------------------------------
10,000,000 Philadelphia, PA, GO, 4.25% CP (Series 1990)/(Fuji Bank Ltd. LOC),
Mandatory Tender 7/17/1995 A-1 10,000,000
-------------------------------------------------------------------
800,000 Philadelphia, PA, Redevelopment Authority Weekly VRDNs (Series
1985)/(Franklin Town Towers)/(Marine Midland Bank N.A., LOC) A-2 800,000
-------------------------------------------------------------------
$ 2,600,000 Quakertown, PA, Weekly VRDNs (Hapsco Group)/(First National Bank,
Chicago LOC) VMIG1 $ 2,600,000
------------------------------------------------------------------- ----------------
Total 62,895,929
------------------------------------------------------------------- ----------------
PUERTO RICO--0.1%
-------------------------------------------------------------------
1,750,000 Government Development Bank of Puerto Rico Weekly VRDNs (Credit
Suisse and Sumitomo Bank Ltd. LOCs) A-1 1,750,000
------------------------------------------------------------------- ----------------
SOUTH CAROLINA--0.9%
-------------------------------------------------------------------
5,175,000 Greenville County, SC, Hospital Authority Weekly VRDNs (Series
1989)/(Charter Hospital St. Louis, Inc.)/ (Sumitomo Bank Ltd. LOC) VMIG1 5,175,000
-------------------------------------------------------------------
2,500,000 South Carolina Educational Facilities Authority Revenue Bonds
Weekly VRDNs (Presbyterian College)/(Wachovia Bank of SC N.A. LOC) A-1+ 2,500,000
-------------------------------------------------------------------
7,300,000 University of South Carolina, Athletic Facilities, 5.25% BANs
(Series 1995), 3/1/1996 NR(3) 7,334,877
------------------------------------------------------------------- ----------------
Total 15,009,877
------------------------------------------------------------------- ----------------
SOUTH DAKOTA--0.3%
-------------------------------------------------------------------
830,000 Mitchell, SD, IDR Weekly VRDNs (Holiday Inn)/(First Bank N.A. LOC) P-1 830,000
-------------------------------------------------------------------
1,530,000 Rapid City, SD, Weekly VRDNs (Gillette Dairy Black Hills,
Inc.)/(Mitsubishi Bank Ltd. LOC) P-1 1,530,000
-------------------------------------------------------------------
1,880,000 Watertown, SD, Weekly VRDNs (Series 1991)/(Tescom Corp.)/(Norwest
Bank LOC) NR(3) 1,880,000
------------------------------------------------------------------- ----------------
Total 4,240,000
------------------------------------------------------------------- ----------------
TENNESSEE--0.5%
-------------------------------------------------------------------
6,969,000 Cumberland County, TN, IDB Weekly VRDNs (Crossville Ceramics
Co.)/(American National Bank LOC) P-1 6,969,000
-------------------------------------------------------------------
1,480,000 Jackson, TN, IDB PCR Weekly VRDNs (Series 1988)/ (Florida Steel
Corp.)/ (Bankers Trust Co. LOC) P-1 1,480,000
------------------------------------------------------------------- ----------------
Total $ 8,449,000
------------------------------------------------------------------- ----------------
TEXAS--6.3%
-------------------------------------------------------------------
$ 900,000 Corpus Christi, TX, IDC Weekly VRDNs (W.W. Grainger, Inc. Guaranty) P-1 900,000
-------------------------------------------------------------------
4,700,000 Dallas TX, 3.60% Annual TOBs (Series C), Optional Tender 6/15/1995 A-1+ 4,700,000
-------------------------------------------------------------------
3,000,000 Harris County, TX, Cultural Education Facilities Finance
Corporation Weekly VRDNs (Houston Museum of Natural Science)/(Bank
One, Texas N.A. LOC) P-1 3,000,000
-------------------------------------------------------------------
1,000,000 Harris County, TX, HFDC Daily VRDNs (Series D) (St. Luke's
Episcopal Hospital) A-1+ 1,000,000
-------------------------------------------------------------------
3,700,000 Harris County, TX, IDC Daily VRDNs (Yokohama Tire Corp)/(Industrial
Bank of Japan Ltd. LOC)/(Subject to AMT) A-1 3,700,000
-------------------------------------------------------------------
955,000 Harris County, TX, IDC Weekly VRDNs (W. W. Grainger, Inc. Guaranty) P-1 955,000
-------------------------------------------------------------------
2,890,000 Liberty County, TX, IDA Weekly VRDNs (Insteel Industries,
Inc.)/(First Union National Bank, LOC) P-1 2,890,000
-------------------------------------------------------------------
3,300,000 Lubbock, TX, IDC Daily VRDNs (McLane Co., Inc.)/ (Nationsbank of
North Carolina N.A. LOC)/(Subject to AMT) A-1 3,300,000
-------------------------------------------------------------------
1,880,000 North Richland Hills, TX, IDC Weekly VRDNs (Technol,
Inc.)/(NationsBank of North Carolina N.A. LOC) P-1 1,880,000
-------------------------------------------------------------------
15,000,000 San Antonio, TX, Electric & Gas Systems, 4.00% CP (Series A),
Mandatory Tender 4/24/1995 A-1+ 15,000,000
-------------------------------------------------------------------
3,800,000 Tarrant County, TX, HFA Daily VRDNs (Cumberland Rest, Inc.)/(Banque
Paribas LOC) A-1 3,800,000
-------------------------------------------------------------------
7,500,000 Texas Association of School Boards, 4.75% TANs (Series 1994A),
8/31/1995 MIG1 7,518,053
-------------------------------------------------------------------
20,000,000 Texas State Public Finance Authority, 4.25% CP (Series 1993A),
Mandatory Tender 5/25/1995 A-1+ 20,000,000
-------------------------------------------------------------------
$ 20,000,000 Texas State, 5.00% TRANs, 8/31/1995 SP-1+ $ 20,075,555
-------------------------------------------------------------------
4,500,000 **Texas State, Public Finance Authority Weekly VRDNs
(P-Floats)/(Series 1992C) (Merrill Lynch Capital Services BPA) VMIG1 4,500,000
-------------------------------------------------------------------
10,000,000 Tyler, TX, HFDC Hospital Revenue Bonds Weekly VRDNs (Series
1994)/(East Texas Medical Center)/ (Nationsbank of Texas N.A. LOC) P-1 10,000,000
------------------------------------------------------------------- ----------------
Total 103,218,608
------------------------------------------------------------------- ----------------
UTAH--2.3%
-------------------------------------------------------------------
15,000,000 Intermountain Power Agency, UT, 3.55% Annual TOBs, Optional Tender
6/15/1995 A-1 15,000,000
-------------------------------------------------------------------
7,400,000 Salt Lake County, UT, Multi-Family Housing Revenue Refunding Bonds
Weekly VRDNs (Series 1992)/(Santa Fe Apartments)/(First Security
Bank of Utah N.A. LOC) VMIG1 7,400,000
-------------------------------------------------------------------
14,500,000 Tooele County, UT, Waste Treatment, 4.30% CP (Union Pacific Corp.
Guaranty)/(Subject to AMT), Mandatory Tender 7/24/1995 A-1 14,500,000
------------------------------------------------------------------- ----------------
Total 36,900,000
------------------------------------------------------------------- ----------------
VIRGINIA--5.2%
-------------------------------------------------------------------
1,375,000 Fairfax County, VA, EDA Weekly VRDNs (Series 1993)/ (Future
Homemakers of America)/(Nationsbank of Virginia N.A. LOC) P-1 1,375,000
-------------------------------------------------------------------
9,000,000 Fairfax County, VA, Redevelopment and Housing Finance Authority
Weekly VRDNs (Chase Commons Associates)/(Banks Trust Co. LOC) P-1 9,000,000
-------------------------------------------------------------------
1,900,000 Fairfax County, VA, IDA Weekly VRDNs (Fairfax Hospital System,
Inc.)/(Dai-Ichi Kangyo Bank Ltd. LOC) A-1 1,900,000
-------------------------------------------------------------------
2,500,000 Fauquier County, VA, IDA, Weekly VRDNs (Warrenton Development
Co.)/(Nationsbank of Maryland N.A. LOC) P-1 2,500,000
-------------------------------------------------------------------
$ 3,540,000 Hampton, VA, Redevelopment & Housing Authority Commercial
Development Rehabilitation Weekly VRDNs (Series 1984)/(NationsBank
of Virginia N.A. LOC) P-1 $ 3,540,000
-------------------------------------------------------------------
3,000,000 Newport News, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1990)/(Fredericksburg-Oxford)/(Bankers Trust Co. LOC) VMIG1 3,000,000
-------------------------------------------------------------------
2,135,000 Norfolk, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1990)/(St. Paul's Associates, L.P.)/ (NationsBank of
Virginia N.A. LOC) P-1 2,135,000
-------------------------------------------------------------------
11,400,000 Richmond, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1989)/(Belmont Apartments)/ (NationsBank of North Carolina
N.A. LOC) P-1 11,400,000
-------------------------------------------------------------------
4,100,000 Richmond, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series B-1)/(Red Tobacco Row)/
(Bayerische Landesbank LOC)/(Subject to AMT) VMIG1 4,100,000
-------------------------------------------------------------------
5,552,000 Alexandria, VA, IDA Weekly VRDNs (American Red Cross)/(Sanwa Bank
Ltd. LOC) A-1+ 5,552,000
-------------------------------------------------------------------
5,000,000 Campbell Co., VA, IDA Solid Waste Disposal Facility Revenue Bonds,
4.20% CP (Series 1994)/(Georgia-Pacific Corp.)/(Industrial Bank of
Japan Ltd. LOC)/(Subject to AMT), Mandatory Tender 5/30/1995 A-1 5,000,000
-------------------------------------------------------------------
3,500,000 Campbell Co., VA, IDA Solid Waste Disposal Facility Revenue Bonds,
4.25% CP (Series 1994)/(Georgia-Pacific Corp.)/(Industrial Bank of
Japan Ltd. LOC)/(Subject to AMT), Mandatory Tender 4/26/1995 A-1 3,500,000
-------------------------------------------------------------------
7,000,000 Fairfax County, VA, IDA, 4.00% CP (Series 1993B)/(Inova Health
System), Mandatory Tender 6/8/1995 A-1 7,000,000
-------------------------------------------------------------------
2,200,000 Richmond, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series B-2)/(Red Tobacco Row)/
(Bayerische Landesbank LOC)/(Subject to AMT) VMIG1 2,200,000
-------------------------------------------------------------------
$ 4,770,000 Suffolk, VA, Redevelopment and Housing Authority Weekly VRDNs
(Terry/Peterson Development Corp.)/ (NationsBank of Virginia N.A.
LOC) P-1 $ 4,770,000
-------------------------------------------------------------------
3,105,000 Suffolk, VA, Redevelopment and Housing Authority Weekly VRDNs
(Series 1994)/(Terry/Peterson Associates II)/(NationsBank of
Virginia N.A. LOC) P-1 3,105,000
-------------------------------------------------------------------
7,300,000 Virginia Peninsula Port Authority Daily VRDNs (Kinyo Virginia,
Inc.)/(Industrial Bank of Japan Ltd. LOC)/
(Subject to AMT) A-1 7,300,000
-------------------------------------------------------------------
4,900,000 Virginia Housing Development Authority Weekly VRDNs (Series
1987A)/(AHC Service Center)/(Mitsubishi Bank Ltd. LOC) P-1 4,900,000
-------------------------------------------------------------------
3,000,000 Fairfax County, VA, IDA, 4.05% CP (Series 1993B)/(Inova Health
System), Mandatory Tender 5/15/1995 A-1 3,000,000
------------------------------------------------------------------- ----------------
Total 85,277,000
------------------------------------------------------------------- ----------------
WASHINGTON--1.0%
-------------------------------------------------------------------
12,800,000 Port Angeles, WA, Port Industrial Development Corp. Weekly VRDNs
(Daishowa American Project)/(Industrial Bank of Japan Ltd.
LOC)/(Subject to AMT) A-1 12,800,000
-------------------------------------------------------------------
2,850,000 Washington State, GO Bonds Weekly VRDNs
(Series P-12A) VMIG1 2,850,000
------------------------------------------------------------------- ----------------
Total 15,650,000
------------------------------------------------------------------- ----------------
WEST VIRGINIA--0.4%
-------------------------------------------------------------------
3,200,000 Berkeley County, WV, County Commission IDB Weekly VRDNs (Series
1994)/(Brentwood Industries, Inc.)/ (Meridian Bank LOC)/(Subject to
AMT) P-1 3,200,000
-------------------------------------------------------------------
2,800,000 Raleigh County, WV, Health Care System Weekly VRDNs (Series
1991)/(Appalachian Regional Healthcare, Inc.)/(Societe Generale
LOC) VMIG1 2,800,000
------------------------------------------------------------------- ----------------
Total 6,000,000
------------------------------------------------------------------- ----------------
WISCONSIN--0.9%
-------------------------------------------------------------------
$ 2,000,000 Green Bay, WI, IDRB, Weekly VRDNs (Series 1985)/(St. Mary's
Holdings, Inc.)/(Mellon Bank N.A. LOC) P-1 $ 2,000,000
-------------------------------------------------------------------
1,000,000 Rice Lake, WI, IDRB Weekly VRDNs (Series 1995)/ (Wright Products
Corp.)/(Norwest Bank Minnesota LOC)/(Subject to AMT) A-1+ 1,000,000
-------------------------------------------------------------------
1,040,000 Spooner, WI, Weekly VRDNs (Series 1994)/(Nash-Finch Co.)/(First
Bank N.A. LOC) P-1 1,040,000
-------------------------------------------------------------------
10,240,000 Wisconsin Housing & Economic Development Authority, 4.50%
Semi-Annual TOBs (Series B)/(FSA Insured)/ (Meridian Bank
BPA)/(Subject to AMT), Optional Tender 5/1/1995 NR(2) 10,240,000
------------------------------------------------------------------- ----------------
Total 14,280,000
------------------------------------------------------------------- ----------------
WYOMING--0.1 %
-------------------------------------------------------------------
1,830,000 Sweetwater County, WY, IDA Weekly VRDNs (FMC Corp.)/(Wachovia Bank
& Trust Co. LOC) A-1+ 1,830,000
------------------------------------------------------------------- ----------------
OTHER--2.1%
-------------------------------------------------------------------
15,000,000 **Clipper Tax Exempt Trust Weekly VRDNs
(Series 1993-1)/(State Street Bank BPA) A-1+ 15,000,000
-------------------------------------------------------------------
3,589,645 **LaSalle National Bank Leasetops Trust Weekly VRDNs (Series
1993B)/(LaSalle National Bank BPA) A-1+ 3,589,646
-------------------------------------------------------------------
7,284,388 **LaSalle National Bank Bustops Trust Weekly VRDNs (Series
1993A)/(LaSalle National Bank BPA) A-1+ 7,284,388
-------------------------------------------------------------------
9,065,000 **Merrill Lynch Puttable Floats/Rites Trust Weekly VRDNs (Series
PP2)/(Merrill Lynch Capital Services BPA) VMIG1 9,065,000
------------------------------------------------------------------- ----------------
Total 34,939,034
------------------------------------------------------------------- ----------------
TOTAL INVESTMENTS (AT AMORTIZED COST) (A) $ 1,628,554,028
------------------------------------------------------------------- ----------------
</TABLE>
*Current credit ratings are unaudited.
**Restricted securities--Investment in securities not registered under the
Securities Act of 1933. At the end of the period, these securities amounted
to 11.1% of net assets.
(a)Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($1,636,719,780) at March 31, 1995.
Tax-Free Instruments Trust
--------------------------------------------------------------------------------
The following abbreviations are used in this portfolio:
ACES-- Adjustable Convertible Extendable Securities
AMBAC-- American Municipal Bond Assurance Corporation
AMT--Alternative Minimum Tax
BANs--Bond Anticipation Notes
BPA--Bond Purchase Agreement
CP--Commercial Paper
EDA--Economic Development Authority
EDRB--Economic Development Revenue Bonds
FGIC--Financial Guaranty Insurance Company
FHA-- Federal Housing Administration
FSA--Financial Security Assurance
GO--General Obligation
HEFA-- Health and Education Facilities Authority
HFA--Housing Finance Authority
HFDC-- Health Facility Development Corporation
IDA--Industrial Development Authority
IDB--Industrial Development Bond
IDC--Industrial Development Corporation
IDR--Industrial Development Revenue
IDRB-- Industrial Development Revenue Bonds
IFA--Industrial Finance Authority
LIQ-- Liquidity Agreement
LOCs--Letter(s) of Credit
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance
PCR--Pollution Control Revenue
PTC-- Pass Through Certificate
RANs--Revenue Anticipation Notes
SB-- Serial Bond
TANs--Tax Anticipation Notes
TOBs--Tender Option Bonds
TRANs--Tax and Revenue Anticipation Notes
UT--Unlimited Tax
VRDNs--Variable Rate Demand Notes
VRNs--Variable Rate Notes
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Assets and Liabilities
--------------------------------------------------------------------------------
March 31, 1995
<TABLE>
<S> <C> <C>
ASSETS:
-------------------------------------------------------------------------------------------------
Investments in securities, at amortized cost and value $ 1,628,554,028
-------------------------------------------------------------------------------------------------
Cash 17,407,536
-------------------------------------------------------------------------------------------------
Income receivable 15,160,259
-------------------------------------------------------------------------------------------------
Receivable for shares sold 3,028,535
------------------------------------------------------------------------------------------------- ---------------
Total assets 1,664,150,358
-------------------------------------------------------------------------------------------------
LIABILITIES:
-------------------------------------------------------------------------------------------------
Payable for investments purchased $ 14,282,301
-----------------------------------------------------------------------------------
Payable for shares redeemed 10,300,889
-----------------------------------------------------------------------------------
Income distribution payable 2,152,287
-----------------------------------------------------------------------------------
Accrued expenses 695,101
----------------------------------------------------------------------------------- ------------
Total liabilities 27,430,578
------------------------------------------------------------------------------------------------- ---------------
NET ASSETS for 1,637,702,680 shares outstanding $ 1,636,719,780
------------------------------------------------------------------------------------------------- ---------------
NET ASSETS CONSIST OF:
-------------------------------------------------------------------------------------------------
Paid in capital $ 1,637,702,680
-------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (982,900)
------------------------------------------------------------------------------------------------- ---------------
Total Net Assets $ 1,636,719,780
------------------------------------------------------------------------------------------------- ---------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
Investment Shares ($1,277,893,996 / 1,278,600,232 shares outstanding) $1.00
------------------------------------------------------------------------------------------------- ---------------
Institutional Service Shares ($358,825,784 / 359,102,448 shares outstanding) $1.00
------------------------------------------------------------------------------------------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Operations
--------------------------------------------------------------------------------
Year Ended March 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
--------------------------------------------------------------------------------------------------
Interest $ 55,687,087
--------------------------------------------------------------------------------------------------
EXPENSES:
--------------------------------------------------------------------------------------------------
Investment advisory fee $ 8,274,688
-----------------------------------------------------------------------------------
Administrative personnel and services fee 1,252,788
-----------------------------------------------------------------------------------
Custodian fees 213,951
-----------------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 1,526,129
-----------------------------------------------------------------------------------
Directors'/Trustees' fees 14,472
-----------------------------------------------------------------------------------
Auditing fees 20,908
-----------------------------------------------------------------------------------
Legal fees 30,816
-----------------------------------------------------------------------------------
Portfolio accounting fees 66,650
-----------------------------------------------------------------------------------
Shareholder services fee--Investment Shares 2,026,957
-----------------------------------------------------------------------------------
Shareholder services fee--Institutional Service Shares 48,327
-----------------------------------------------------------------------------------
Share registration costs 112,080
-----------------------------------------------------------------------------------
Printing and postage 212,957
-----------------------------------------------------------------------------------
Insurance premiums 30,466
-----------------------------------------------------------------------------------
Taxes 26,114
-----------------------------------------------------------------------------------
Miscellaneous 21,622
----------------------------------------------------------------------------------- -------------
Total expenses 13,878,925
-----------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 2,852,758
----------------------------------------------------------------------------------- -------------
Net expenses 11,026,167
-------------------------------------------------------------------------------------------------- -------------
Net investment income 44,660,920
-------------------------------------------------------------------------------------------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
--------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (972,359)
-------------------------------------------------------------------------------------------------- -------------
Change in net assets resulting from operations $ 43,688,561
-------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Tax-Free Instruments Trust
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
----------------------------------------------------------------------------
OPERATIONS--
----------------------------------------------------------------------------
Net investment income $ 44,660,920 $ 32,982,932
----------------------------------------------------------------------------
Net realized gain (loss) on investments ($18,024 net loss and $19,801 net
gain, respectively, as computed for federal income tax purposes) (972,359) 46,371
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from operations 43,688,561 33,029,303
---------------------------------------------------------------------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
----------------------------------------------------------------------------
Distributions from net investment income
----------------------------------------------------------------------------
Investment Shares (33,105,372) (32,982,932)
----------------------------------------------------------------------------
Institutional Service Shares (11,555,548) --
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from distributions
to shareholders (44,660,920) (32,982,932)
----------------------------------------------------------------------------
SHARE TRANSACTIONS--
----------------------------------------------------------------------------
Proceeds from sale of Shares 6,059,965,359 7,678,250,694
----------------------------------------------------------------------------
Net asset value of Shares issued to shareholders
in payment of distributions declared 32,944,709 24,797,388
----------------------------------------------------------------------------
Cost of Shares redeemed (6,173,177,132) (7,604,666,616)
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from share transactions (80,267,064) 98,381,466
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets (81,239,423) 98,427,837
----------------------------------------------------------------------------
NET ASSETS:
----------------------------------------------------------------------------
Beginning of period 1,717,959,203 1,619,531,366
---------------------------------------------------------------------------- ----------------- -----------------
End of period $ 1,636,719,780 $ 1,717,959,203
---------------------------------------------------------------------------- ----------------- -----------------
</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>
YEAR ENDED MARCH 31,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------
INCOME FROM INVEST-
MENT OPERATIONS
-------------------
Net investment
income 0.03 0.02 0.02 0.04 0.05 0.06 0.05 0.04 0.04 0.05
------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
-------------------
Distributions from
net investment
income (0.03) (0.02) (0.02) (0.04) (0.05) (0.06) (0.05) (0.04) (0.04) (0.05)
------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (a) 2.70% 2.01% 2.42% 3.84% 5.40% 5.88% 5.28% 4.29% 3.84% 4.79%
-------------------
RATIOS TO AVERAGE
NET ASSETS
-------------------
Expenses 0.70% 0.61% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
-------------------
Net investment
income 2.66% 2.00% 2.38% 3.73% 5.25% 5.73% 5.14% 4.19% 3.74% 4.70%
-------------------
Expense waiver/
reimbursement (b) 0.17% 0.14% 0.10% 0.11% 0.12% 0.11% 0.08% 0.06% 0.06% 0.07%
-------------------
SUPPLEMENTAL DATA
-------------------
Net assets, end of
period (000
omitted) $1,277,894 $1,327,506 $1,619,531 $1,440,970 $1,214,045 $1,142,022 $1,313,391 $1,552,460 $1,661,086 $1,225,138
-------------------
</TABLE>
(a) Based on net asset value, which does not reflect the sales load 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>
PERIOD ENDED
MARCH 31,
1995 1994(A)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------
Net investment income 0.03 0.01
--------------------------------------------------------------------------------------------- --------- -----------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------
Distributions from net investment income (0.03) (0.01)
--------------------------------------------------------------------------------------------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
--------------------------------------------------------------------------------------------- --------- -----------
TOTAL RETURN (b) 2.85% 0.92%
---------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------------------------------------------------------------
Expenses 0.55% 0.55%(c)
---------------------------------------------------------------------------------------------
Net investment income 2.82% 1.99%(c)
---------------------------------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.17% 0.14%(c)
---------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $358,826 $390,453
---------------------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from October 15, 1993 (date of initial
public offering) to March 31, 1994.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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
--------------------------------------------------------------------------------
March 31, 1995
(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. Effective October 15, 1993, the Trust added
Institutional Service Shares. Consequently, the Trust provides two classes of
shares: Investment Shares and Institutional Service Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund 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 March 31, 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
April 1, 1995, 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 registration costs upon such resales. Restricted securities
are valued at amortized cost in accordance with Rule 2a-7 under the
Investment Company Act of 1940. Additional information on each restricted
security held at March 31, 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
Delaware Health Facilities Authority 8/23/93 25,194,000
Floating Rate Trust Certificate 8/12/92-7/8/94 18,250,000
Clipper, MA, Tax Exempt Trust 1/4/95 16,879,500
New Jersey Transportation Trust Fund Agency 5/10/93 4,300,000
New York City, NY, Municipal Water Finance Authority 9/8/94 8,000,000
New York State Medical Care Facilities Finance Agency 2/7/95 12,000,000
New York State Medical Care Facilities Finance
Authority Hospital & Nursing Home Mortgage Revenue Bonds 2/28/95 4,650,000
New York State Mortgage Agency 2/27/95 8,700,000
New York State Mortgage Agency 3/3/95-3/8/95 6,980,000
VRDC/IVRC Trust 11/9/94 7,000,000
Charlotte, NC, Revenue Refunding Certificates of
Participation 5/18/94 3,000,000
Fayetteville, NC, Public Works Commission 6/15/94 2,400,000
NCNB Pooled Tax-Exempt Trust 1/3/92 1,725,000
NCNB Pooled Tax-Exempt Trust 12/4/90 6,400,000
North Carolina Eastern Municipal Power Agency 11/22/93 2,260,000
Texas State, Public Finance Authority 11/26/93 4,500,000
Clipper Tax Exempt Trust 9/24/93 15,000,000
LaSalle National Bank Leasetops Trust 1/27/95 3,589,645
LaSalle National Bank Bustops Trust 3/16/93 7,284,388
Merrill Lynch Puttable Floats/Rites Trust 7/1/94 9,065,000
</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 March 31, 1995, capital paid-in aggregated $1,637,702,680.
Transactions in Trust shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED MARCH 31,
1995 1994
INVESTMENT SHARES SHARES SHARES
<S> <C> <C>
------------------------------------------------------------------------------ ---------------- ----------------
Shares sold 4,729,351,464 6,721,614,467
------------------------------------------------------------------------------
Shares issued to shareholders
in payment of distributions declared 31,475,054 24,173,179
------------------------------------------------------------------------------
Shares redeemed (4,809,739,688) (7,037,862,523)
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from
share transactions (48,913,170) (292,074,877)
------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED MARCH 31
1995 1994*
INSTITUTIONAL SERVICE SHARES SHARES SHARES
<S> <C> <C>
------------------------------------------------------------------------------ ----------------------------------
Shares sold 1,330,613,895 956,636,227
------------------------------------------------------------------------------
Shares issued to shareholders
in payment of distributions declared 1,469,655 624,209
------------------------------------------------------------------------------
Shares redeemed (1,363,437,444) (566,804,093)
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from
share transactions (31,353,894) 390,456,343
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from
Trust share transactions (80,267,064) 98,381,466
------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
* For the period from October 15, 1993 (date of initial public offering) to
March 31, 1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
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 a portion of its fee. The Adviser
can modify or terminate this voluntary waiver at any time at its sole
discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust
with administrative personnel and services. The FAS fee is based on the level of
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors for the period. The administrative fee received during the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services, the Trust will pay Federated Shareholder
Services up to .25 of 1% of average daily net assets of the Trust for the
period. The fee is to obtain certain services for shareholders and to maintain
the shareholder accounts.
TRANSFER AGENT FEES--Federated Services Company serves as transfer and dividend
disbursing agent for the Trust. The fee is based on the size, type, and number
of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--Federated Services Company maintains the Trust's
accounting records. The fee is based on the level of the Fund's average daily
net assets for the period plus, out-of-pocket expenses.
INTERFUND TRANSACTIONS--During the period ended March 31, 1995, the Trust
engaged in purchase and sale transactions with funds that have a common
investment advisor (or affiliated investment advisors), common
Directors/Trustees, and/or common Officers. These transactions were made at
current market value pursuant to Rule 17a-7 under the Act amounting to
$2,013,950,800 and $2,254,265,000, respectively.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Trustees or Directors of the above companies.
Report of Independent Public Accountants
--------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
TAX-FREE INSTRUMENTS TRUST:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Instruments Trust (a Massachusetts business trust), including the schedule of
portfolio investments, as of March 31, 1995, and the related statement of
operations for the year then ended, and the statement of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Instruments Trust as of March 31, 1995, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Pittsburgh, Pennsylvania
May 12, 1995
Trustees Officers
-----------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Vice President
Edward L. Flaherty, Jr. Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer Edward C. Gonzales
John E. Murray, Jr. Vice President and Treasurer
Wesley W. Posvar John W. McGonigle
Marjorie P. Smuts Vice President and Secretary
David M. Taylor
Assistant Treasurer
Charles H. Field
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses and other
information.
[LOGO]
FEDERATED SECURITIES CORP.
-------------------------------------------------------------------------------
Distributor
A Subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
876924101
876241200
8042604 (5/95)
