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[LOGO OF FUND FOR GOVERNMENT INVESTORS, INC. APPEARS HERE]
A MONEY MARKET FUND
SEMI-ANNUAL REPORT
June 30, 1995
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Dear Shareholders:
On June 30, 1995 Fund for Government Investors, Inc. net assets were $579
million. Net income as a percentage of net assets averaged 5.09% for the six
months ended June 30, 1995, up from 3.31% for the year ended December 31,
1994.
There has been a radical change in expectations concerning the Federal
Reserve's policy since the beginning of 1995. Early in the year, it was
expected the Federal Reserve would continue with its dramatic raising of
interest rates. That view was supported in February, when the Fed increased
the Federal Fund's rate 50 basis points to 6%. Since then, a steady stream of
weak economic news has changed expectations to a Fed easing. In July, the
Federal Reserve did indeed cut the Federal Fund's rate 25 basis points to 5
3/4%.
Looking to the remainder of the year, we expect mild growth in the economy.
There is little threat of recession since there are no sector imbalances and
interest rates have retreated from their highs. This should limit the Federal
Reserve on interest rate cuts. However, we do look for one more rate cut by
year end.
Going forward, Fund for Government Investors, Inc. will maintain its
conservative investment philosophy, and as always, safety of assets will be
our primary concern. Thank you for your continued support.
/s/ Daniel L. O'Connor /s/ Richard J. Garvey
Daniel L. O'Connor Richard J. Garvey
Chairman of the Board President
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4922 Fairmont Avenue Bethesda, Maryland 20814 800-621-7874 301-657-1517
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FUND FOR GOVERNMENT INVESTORS, INC.
STATEMENT OF NET ASSETS
June 30, 1995
<TABLE>
<CAPTION>
PAYABLE AT MATURITY YIELD AT DATE VALUE*
MATURITY DATE OF PURCHASE(%) (NOTE 1)
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UNITED STATES TREASURY BILLS
<S> <C> <C> <C> <C> <C> <C>
$ 25,000,000 ........... July 6, 1995 ........... 5.92 ........... $ 24,980,035
50,000,000 ........... July 13, 1995 ........... 5.86 ........... 49,905,000
25,000,000 ........... July 20, 1995 ........... 5.71 ........... 24,926,771
75,000,000 ........... August 3, 1995 ........... 5.88 ........... 74,606,521
50,000,000 ........... August 10, 1995 ........... 5.76 ........... 49,688,472
75,000,000 ........... August 17, 1995 ........... 5.87 ........... 74,441,712
53,000,000 ........... August 24, 1995 ........... 5.88 ........... 52,562,060
25,000,000 ........... August 31, 1995 ........... 5.80 ........... 24,761,295
75,000,000 ........... September 7, 1995 ........... 5.58 ........... 74,232,638
50,000,000 ........... September 14, 1995 ........... 5.73 ........... 49,420,313
50,000,000 ........... September 21, 1995 ........... 5.60 ........... 49,379,305
25,000,000 ........... September 28, 1995 ........... 5.34 ........... 24,670,113
------------ ------------
$578,000,000 Total Investments -- 99.05%
============ (original cost $569,989,236*) 573,574,235
Other Assets less Liabilities --
0.95% 5,510,003
------------
Net Assets -- 100.0% $579,084,238
============
Net Asset value per share
(Based on 579,084,238
shares outstanding) $1.00
=====
</TABLE>
*Same value is used for Federal income tax purposes.
Weighted Average Maturity of Portfolio: 51 Days
See Notes to Financial Statements.
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STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995
<TABLE>
<S> <C> <C>
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS:
INVESTMENT INCOME (Note 1)......................................... $15,442,916
EXPENSES
Investment Advisory Fee (Note 2)................... $1,315,156
Administrative Fee (Note 2)........................ 661,806 1,976,962
---------- -----------
NET INVESTMENT INCOME.............................................. $13,465,954
===========
</TABLE>
See Notes to Financial Statements.
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STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
--------------------------------
1995 1994
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<S> <C> <C>
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS
AND DECLARED AS DIVIDENDS TO
SHAREHOLDERS (Note 1)......................... $ 13,465,954 $ 7,675,350
=============== ===============
FROM SHARE TRANSACTIONS
(at constant net asset value of $1)
Shares Purchased............................ $ 1,236,855,106 $ 1,263,499,971
Dividends Reinvested........................ 13,016,151 7,020,134
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Total....................................... 1,249,871,257 1,270,520,105
Shares Redeemed............................. (1,194,940,573) (1,321,578,807)
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Increase (Decrease) in Net Assets........... 54,930,684 (51,058,702)
NET ASSETS - Beginning of Period.............. 524,153,554 600,765,798
--------------- ---------------
NET ASSETS - End of Period.................... $ 579,084,238 $ 549,707,096
=============== ===============
</TABLE>
See Notes to Financial Statements.
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FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended December 31,
June 30, ----------------------------------
1995 1994 1993 1992 1991
------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net Asset Value -
Beginning of Period..... $1.00 $1.00 $1.00 $1.00 $1.00
------- ------- ------- ------- -------
Net Investment Income..... 0.025 0.033 0.023 0.030 0.053
Net Realized and
Unrealized Gains
on Securities............ ----- ----- ----- ----- -----
------- ------- ------- ------- -------
Net Increase in Net Asset
Value
Resulting from
Operations............... 0.025 0.033 0.023 0.030 0.053
Dividends to Shareholders. (0.025) (0.033) (0.023) (0.030) (0.053)
Distributions to
Shareholders from
Net Realized Capital
Gains.................... ----- ----- ----- ----- -----
------- ------- ------- ------- -------
Net Increase in Net Asset
Value.................... 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- -------
Net Asset Value - End of
Period................... $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= =======
Total Investment Return.... 5.13%A 3.38% 2.37% 3.02% 5.38%
Ratios to Average Net
Assets:
Expenses.................. 0.75%A 0.75% 0.75% 0.71% 0.69%
Net Investment Income..... 5.09%A 3.31% 2.32% 3.00% 5.29%
Supplementary Data:
Portfolio Turnover Rate... ----- ----- ----- ----- -----
Number of Shares
Outstanding at
End of Period (000's
omitted)................. 579,084 524,154 600,766 751,925 796,655
</TABLE>
--------
A Annualized.
See Notes to Financial Statements.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
Fund for Government Investors, Inc. is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 and invests only
in U.S. Government Securities. The following is a summary of significant
accounting policies which the Fund consistently follows:
(a) Investments are valued at amortized cost, which approximates market
value. Amortized cost is the purchase price of the security plus
accumulated discount or minus amortized premium from the date of
purchase.
(b) Investment income is recorded as earned.
(c) Net investment income is computed, and dividends are declared daily.
Dividends are paid monthly and reinvested in additional shares
unless shareholders request payment.
(d) The Fund complies with the provisions of the Internal Revenue Code
applicable to regulated investment companies and distributes all net
investment income to its shareholders. Therefore, no Federal income
tax provision is required.
2. INVESTMENT ADVISER AND SHAREHOLDER SERVICING AGENT
Investment advisory and management services are provided by Money Management
Associates under an agreement whereby the Fund pays a fee at an annual rate
based on the Fund's net assets as follows: 0.50% of the first $500 million;
0.45% of the next $250 million; 0.40% of the next $250 million; and 0.35% of
the net assets that exceed $1 billion. Certain officers and Directors of the
Fund are also officers and Directors of Money Management Associates.
Rushmore Trust and Savings, FSB, which is wholly owned by Money Management
Associates, provides custodial services, transfer agency, dividend disbursing
and other shareholder services to the Fund. Rushmore Trust is paid an
administrative fee of 0.25% of average net assets to cover the cost of these
services as well as other expenses of the Fund except for interest and
extraordinary legal expenses.
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FUND
FOR
GOVERNMENT
INVESTORS
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SEMIANNUAL REPORT
June 30, 1995
[LOGO OF RUSHMORE
APPEARS HERE]
