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INTERMEDIATE
- --------------------------------------------------------------------------------
MUNICIPAL
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TRUST
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SEMI-ANNUAL REPORT
TO SHAREHOLDERS
NOVEMBER 30, 1993
------------------------------------------
FEDERATED SECURITIES CORP.
(LOGO)
- --------------------------------
----------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER ----------------------------------------
PITTSBURGH, PA 15222-3779
8010413 (1/94) ----------------------------------------
PRESIDENT'S MESSAGE
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Dear Investor:
I am pleased to present you with the Semi-Annual Report to Shareholders for
Intermediate Municipal Trust (the "Trust") for the 6-month period ended November
30, 1993. The Report begins with our Investment Review, which is a brief
commentary on the municipal market from the Trust's portfolio manager. Following
the Investment Review, you will find Financial Statements containing the
Portfolio of Investments. In addition, Financial Highlights have been included
for Institutional Shares and Institutional Service Shares.
The Trust pursues monthly income that is free from federal regular income taxes
by investing in a highly diverse portfolio of municipal securities. (Income may
be subject to the federal alternative minimum tax and state and local taxes.) As
of November 30, 1993, the Trust was primarily invested in intermediate-term
issues from 28 states.
Over the 6-month report period, dividends paid to shareholders totaled $7.2
million. Total assets continued to rise, reaching $325 million at the period's
end.
In today's atmosphere, the tax-free earning power of Intermediate Municipal
Trust means more than ever. We will continue to keep you up to date on the
Trust's performance, and we welcome your questions, comments, or suggestions.
Sincerely,
Glen R. Johnson
President
January 6, 1994
INVESTMENT REVIEW
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The six months ending November, 1993 bestowed kindness to investors in
intermediate, fixed-income securities.
Economic growth overall has been modest, and inflation -- the scourge of
fixed-income issues -- has been subdued. Real (inflation-adjusted) Gross
Domestic Product ("GDP") has been advancing over the past twelve months at an
annual pace of 3.1 percent. During this time, the Producer Price Index has
escalated at annual rates of 2.1 percent as of May, 1993; and a mere 0.3 percent
as of November, 1993.
The growth in the economy has been achieved by increased productivity of capital
and labor resources. Capacity utilization of the nation's mines and factories
has increased modestly from 79.3 percent to 84.1 percent. Meanwhile, the growth
in real per capita disposable income and in total non-farm payroll has been less
than that for real GDP -- 1.7 percent and 1.8 percent respectively. These
conditions, as well as announcements by major corporations for personnel
reduction, do not portend sudden acceleration in economic growth.
Interest rates for intermediate, fixed-income issues responded to economic
developments and prospects with sizeable declines. From May, 1993, to November,
1993, yields for ten-year U.S. Treasury bonds fell from 6.10 percent to 5.85
percent. Over this period, rates for ten-year, "AA"-rated general obligation
municipal bonds descended from 5.10 percent to 4.80 percent. The yield reduction
within the intermediate Treasury sector exceeded that in the municipal sector in
part due to: the shift by the U.S. government to semi-annual auctions of longer
issues, and to the record pace of municipal issuance in 1993 -- 28 percent over
that for the first eleven months of 1992. Since over 63 percent of the current
issuance constituted refundings, demand surged by municipalities for
intermediate Treasuries as escrow collateral to defease higher-coupon municipal
debt, thereby forcing Treasury yields down.
From May, 1993, to November, 1993, net assets of Intermediate Municipal Trust
(the "Trust") grew from $263.3 million to $325.4 million. In response to market
activity, the net asset value ("NAV") per share of the Trust rose from $10.74 to
$10.89. Meanwhile, the thirty-day "SEC" yield -- derived on the NAV -- for
Institutional Shares fell from 4.22 percent to 3.81 percent.* The thirty-day
"SEC" yield -- derived on the NAV -- for Institutional Service Shares as of
November 30, 1993 was 3.56 percent. As of November, 1993, the credit quality of
the long-term portfolio holdings was as follows: 35.1% in "AAA" issues; 57.0% in
"AA" issues; and 6.4% in "A" issues. Issues with the highest short-term credit
rating were as follows: 1.5% in "A-1, P-1, VMIG-1" issues.
When ascertaining the credit quality of issues for potential investment by the
Trust, the adviser focuses upon a variety of economic and financial parameters.
For general obligation issues, analysis is directed towards demographic
constitution, income distribution, property value levels and growth, provision
of governmental services, and debt authorization. For revenue issues,
examination is also made of issuer cash flow generation, sensitivity to product
or service pricing, competition and industry/sector make-up, debt structure,
debt service coverage, financial flexibility, and contingent liabilities.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
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Issues held or purchased by the Trust during the past twelve months consisted
largely of: obligations of governmental entities such as municipal electric
systems; water system revenue obligations; college and university tuition and
fee revenue issues; and general obligation issues of state and local
governments.
At no time did any of the holdings of the Trust feature interest which would be
subject to the federal alternative minimum tax for individuals.
For the six months ending November, 1993, an investor in the Trust for
Institutional Shares experienced a non-annualized "total return" of 3.86
percent. This performance was comprised of 2.46 percent income and reinvestment
return (net of Trust expenses) and of 1.40 percent appreciation in the net asset
value per share of the Trust. For the period ending November, 1993, an investor
in the Trust for Institutional Services Shares experienced a non-annualized
"total return" of 0.06%. This performance was comprised of 1.05 percent income
and reinvestment return (net of Trust expenses) and of 0.99 percent depreciation
in the net asset value per share of the Trust. Past investment performance is
neither indicative nor predictive of future investment performance.
INTERMEDIATE MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1993
(UNAUDITED)
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<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--1.3%
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ALABAMA--0.2%
---------------------------------------------------
$ 600,000 Birmingham, AL, Medical Clinic Board, Daily VRDNs,
(University of Alabama Health Services
Foundation)/(Morgan Guaranty Trust Co. LOC) A-1+ $ 600,000
--------------------------------------------------- ------------
MICHIGAN--0.5%
---------------------------------------------------
1,600,000 Monroe County, MI, EDA Daily VRDNs (Detroit
Edison)/(Barclays Bank PLC LOC) VMIG1 1,600,000
--------------------------------------------------- ------------
PUERTO RICO--0.4%
---------------------------------------------------
1,450,000 Government Development Bank of Puerto Rico Weekly
VRDNs (Credit Suisse and Sumitomo Bank Ltd. LOCs) A-1+ 1,450,000
--------------------------------------------------- ------------
TENNESSEE--0.1%
---------------------------------------------------
100,000 Chattanooga-Hamilton County, TN, Hospital Authority
Daily VRDNs (Erlanger Medical Center Guaranty) A-1 100,000
--------------------------------------------------- ------------
TEXAS--0.1%
---------------------------------------------------
500,000 Houston, TX, HFDC Daily VRDNs (Methodist Hospital
Guaranty) A-1+ 500,000
--------------------------------------------------- ------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(AT AMORTIZED COST) (NOTE 2A) 4,250,000
--------------------------------------------------- ------------
LONG-TERM MUNICIPAL SECURITIES--97.0%
- ------------------------------------------------------------------
ALABAMA--2.8%
---------------------------------------------------
5,000,000 Alabama Public School & College Authority, 4.63%
OID Refunding Bonds (Series 1993)/(Original Issue
Yield: 4.77%), 12/1/2002 Aa 4,998,100
---------------------------------------------------
</TABLE>
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
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ALABAMA--CONTINUED
---------------------------------------------------
$1,500,000 Alabama Water Pollution Control Authority, 6.35%
State Revolving Fund Loan Bonds, (Series
1991)/(AMBAC Insured), 8/15/2001 AAA $ 1,656,315
---------------------------------------------------
2,250,000 Birmingham, AL, Medical Center, 10.00% Hospital
Revenue Bonds, (Prerefunded), 7/1/95 (callable
@102) AAA 2,526,660
--------------------------------------------------- ------------
Total 9,181,075
--------------------------------------------------- ------------
ARIZONA--8.2%
---------------------------------------------------
1,000,000 Arizona State Department of Transportation, 5.50%
OID Revenue Bonds (Series 1992B)/(Original Issue
Yield: 5.60%)/(AMBAC Insured), 7/1/2002 Aaa 1,058,110
---------------------------------------------------
1,500,000 Maricopa County, AZ, 8.20% Revenue Bonds
(MBIA Insured), 12/1/96 Aaa 1,654,560
---------------------------------------------------
1,000,000 Mesa, AZ, 7.125% GO Bonds, 7/1/99 A1 1,105,270
---------------------------------------------------
5,000,000 Phoenix, AZ, 4.90% GO Bonds, (Series
1993A)/Original Issue Yield: 4.95%), 7/1/2002 AA+ 5,108,750
---------------------------------------------------
1,500,000 Phoenix, AZ, 7.40% GO Bonds, (Series A), 7/1/2000 AA+ 1,745,475
---------------------------------------------------
2,900,000 Pima County, AZ, Tucson Unified School District #1,
4.80% School Improvement Bonds, (Series
1993E)/(Original Issue Yield: 4.90%), (FGIC
Insured), 7/1/2003 AAA 2,902,088
---------------------------------------------------
3,000,000 Salt River Project Agricultural Improvement & Power
District, 4.75% Electric System Revenue Bonds
(Original Issue Yield: 4.85%), 1/1/2003 AA 2,997,630
---------------------------------------------------
2,500,000 Salt River Project Agricultural Improvement & Power
District, 5.20% OID Power Supply Revenue Bonds
(Original Issue Yield: 5.25%), 1/1/2002 Aa 2,589,950
---------------------------------------------------
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
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ARIZONA--CONTINUED
---------------------------------------------------
$2,000,000 Salt River Project Agricultural Improvement & Power
District, 5.30% OID Power Supply Revenue Bonds
(Original Issue Yield: 5.35%), 1/1/2003 Aa $ 2,075,820
---------------------------------------------------
5,000,000 Salt River Project Agricultural Improvement & Power
District, 7.10% Electric Supply Revenue Bonds,
1/1/2000 AA 5,551,450
--------------------------------------------------- ------------
Total 26,789,103
--------------------------------------------------- ------------
ARKANSAS--2.1%
---------------------------------------------------
4,000,000 North Little Rock, AR, 9.50% Hydro-Electric Revenue
Bonds, (Prerefunded), 7/1/95 (callable @103) Aaa 4,499,920
---------------------------------------------------
2,300,000 Pulaski County, AR, Health Facility Board, 5.60%
OID Revenue Bonds (St. Vincent Infirmary, Sisters
of Charity of Nazareth Health)/(Original Issue
Yield: 5.70%)/(MBIA Insured), 11/1/2002 Aaa 2,440,691
--------------------------------------------------- ------------
Total 6,940,611
--------------------------------------------------- ------------
CALIFORNIA--3.9%
---------------------------------------------------
2,250,000 California State Veterans Affairs, 7.80% GO Bonds
(Series AV), 10/1/2000 AAA 2,656,418
---------------------------------------------------
2,000,000 Los Angeles, CA, Department of Water & Power, 9.00%
Electric Plant Revenue Bonds, 2/1/2001 AA 2,505,620
---------------------------------------------------
1,800,000 Los Angeles, CA, Department of Water & Power, 9.00%
Electric Plant Revenue Bonds, 6/1/2000 AA 2,229,336
---------------------------------------------------
1,875,000 Los Angeles, CA, Department of Water & Power, 9.00%
Electric Plant Revenue Bonds, 6/1/2000 AA 2,367,600
---------------------------------------------------
2,500,000 Northern California Power Agency, 9.50% Revenue
Bonds (Prerefunded), 7/1/95 (callable @102) Aaa 2,791,975
--------------------------------------------------- ------------
Total 12,550,949
--------------------------------------------------- ------------
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
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DELAWARE--0.3%
---------------------------------------------------
$1,000,000 Delaware State, 5.20% GO Bonds (Series 1992B),
7/1/2002 Aa $ 1,044,270
--------------------------------------------------- ------------
FLORIDA--6.7%
---------------------------------------------------
3,000,000 Dade County, FL, 10.00% Solid Waste Revenue Bonds
(Prerefunded), 10/1/95 (callable @102) Aaa 3,416,130
---------------------------------------------------
3,000,000 Florida State Board of Education, 6.00% UT GO
Capital Outlay Bonds, (Series 1991B), 6/1/2001 AA 3,275,850
---------------------------------------------------
2,000,000 Florida State Board of Education, 6.25% Public
Education Capital Outlay Bonds, (Series 1991C),
6/1/2001 Aa 2,212,720
---------------------------------------------------
3,000,000 Florida State Board of Regents, 4.75% University
System Improvement Revenue Bonds (Series 1993)/
(AMBAC Insured), 7/1/2002 AAA 3,025,110
---------------------------------------------------
5,500,000 Jacksonville, FL, Electric Authority, 6.70%
Electric Revenue Bonds, (St. John's River Park
Power Project), 10/1/99 AA 5,912,995
---------------------------------------------------
1,000,000 Miami Beach, FL, HFDA 5.60% OID Revenue Bonds
(Mount Sinai Medical Center)/(Original Issue Yield:
5.65%)/(Capital Guaranty), 11/15/2002 Aaa 1,061,390
---------------------------------------------------
1,500,000 Orlando, FL, Utilities Commission, 5.40% OID
Revenue Bonds (Series 1992)/(Original Issue Yield:
5.50%), 10/1/2002 Aa1 1,577,310
---------------------------------------------------
1,050,000 Plantation, FL, Water & Sewer Authority, 8.70%
Revenue Bonds, (MBIA Insured)/(ETM), 3/1/96 Aaa 1,168,398
--------------------------------------------------- ------------
Total 21,649,903
--------------------------------------------------- ------------
GEORGIA--4.2%
---------------------------------------------------
2,000,000 Georgia Municipal Electric Authority, 6.50% Power
Supply Revenue Bonds, (Series U), 1/1/2000 AA 2,207,420
---------------------------------------------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
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GEORGIA--CONTINUED
---------------------------------------------------
$1,000,000 Georgia Municipal Electric Authority, 6.60% Power
Supply Revenue Bonds, (Series U), 1/1/2001 AA $ 1,117,160
---------------------------------------------------
5,000,000 Georgia State, 7.70% GO Bonds, 2/1/2001 AA+ 5,963,950
---------------------------------------------------
4,095,000 Private Colleges & Universities Authority, 5.60%
Revenue Bonds, (Series 1992C)/(Emory University
Project), 10/1/2001 AA 4,369,856
--------------------------------------------------- ------------
Total 13,658,386
--------------------------------------------------- ------------
HAWAII--4.6%
---------------------------------------------------
3,000,000 City & County of Honolulu, HI, 6.30% GO Bonds,
(Series 1991A), 8/1/2001 AA 3,305,850
---------------------------------------------------
2,000,000 Hawaii State, 5.00% GO Bonds (Series CC), 2/1/2003 Aa 2,039,660
---------------------------------------------------
1,000,000 Hawaii State, 5.85% OID GO Bonds (Series 1991BU)/
(Original Issue Yield: 5.95%), 11/1/2001 Aa 1,083,520
---------------------------------------------------
2,000,000 Hawaii State, 6.25% GO Bonds (Series 1992BZ),
10/1/2002 Aa 2,231,080
---------------------------------------------------
5,000,000 Hawaii State, 8.00% GO Bonds (Series 1991BT),
2/1/2001 Aa 6,172,250
--------------------------------------------------- ------------
Total 14,832,360
--------------------------------------------------- ------------
ILLINOIS--6.0%
---------------------------------------------------
1,930,000 Chicago, IL, 5.00% OID GO Bonds (Series 1993A)/
(Original Issue Yield: 5.05%)/(MBIA Insured),
1/1/2003 AAA 1,950,979
---------------------------------------------------
400,000 Chicago, IL, O'Hare International Airport, 9.20%
Revenue Bonds, 1/1/96 A1 414,156
---------------------------------------------------
2,000,000 Chicago, IL, School Finance Authority, 8.00%
Revenue Bonds, (FGIC Insured), 6/1/97 Aaa 2,177,860
---------------------------------------------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
ILLINOIS--CONTINUED
---------------------------------------------------
$3,000,000 Du Page Water Commission, 6.05% GO Water Refunding
Bonds, (Du Page, Cook and Will Counties)/(Series
1992), 3/1/2002 Aaa $ 3,267,690
---------------------------------------------------
3,000,000 Illinois Municipal Electric Agency, Power Supply
System, 6.20% Revenue Bonds, (Series 1991A)/(AMBAC
Insured), 2/1/2001 AAA 3,274,740
---------------------------------------------------
1,840,000 Illinois State Highway Authority, 9.125% Revenue
Bonds, (Northern Illinois Toll Highway)/
(Prerefunded), 1/1/96 (callable @102) AAA 2,082,181
---------------------------------------------------
4,000,000 Illinois State Sales Tax Revenue Bonds, 4.75%
(Original Issue Yield: 5.05%), 6/15/2002 AAA 4,016,640
---------------------------------------------------
2,000,000 University Of Illinois Board of Trustees, 6.40%
Auxiliary Facilities System, Revenue Bonds, (Series
1991), 4/1/2001 AA- 2,218,540
--------------------------------------------------- ------------
Total 19,402,786
--------------------------------------------------- ------------
MARYLAND--0.3%
---------------------------------------------------
1,000,000 University of Maryland, 5.85% Tuition Revenue
Bonds, (Series A)/(System Auxiliary Facility),
2/1/2002 Aa 1,078,040
--------------------------------------------------- ------------
MICHIGAN--4.3%
---------------------------------------------------
4,500,000 Detroit, MI, School District, 4.85% UT GO Bonds (Q-
SBLF Program)/(Original Issue Yield: 4.95%),
5/1/2004 AA- 4,441,860
---------------------------------------------------
1,250,000 Jackson County, MI, Hospital Finance Authority,
4.80% Revenue Bonds (Series A)/(Original Issue
Yield: 4.90%)/(FGIC Insured), 6/1/2005 AAA 1,222,963
---------------------------------------------------
5,750,000 Michigan Municipal Bond Authority, Zero Coupon
Capital Appreciation Revenue Bonds, (Series 1991A)/
(Local Government Loan Program)/(Original Issue
Yield: 6.35%)/(FGIC Insured), 12/1/2000 AAA 4,099,520
---------------------------------------------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
MICHIGAN--CONTINUED
---------------------------------------------------
$2,000,000 Michigan State Building Authority, 6.25% Revenue
Bonds (Series II)/(AMBAC Insured), 10/1/2000 AAA $ 2,205,060
---------------------------------------------------
1,000,000 Michigan State Hospital Finance Authority, 5.50%
Revenue Bonds (Series 1992A)/(Henry Ford Health
System)/(Original Issue Yield: 5.55%), 9/1/2001 Aa 1,062,070
---------------------------------------------------
1,000,000 Royal Oak, MI, Hospital Finance Authority, 7.40%
Hospital Revenue Bonds (William Beaumont Hospital),
1/1/2000 Aa 1,108,690
--------------------------------------------------- ------------
Total 14,140,163
--------------------------------------------------- ------------
NEBRASKA--1.1%
---------------------------------------------------
2,500,000 Omaha, NE, Public Power District Electric System,
5.00% Revenue Bonds (Series 1993), 2/1/2003 AA 2,543,975
---------------------------------------------------
1,000,000 Omaha, NE, Public Power District Electric System,
4.70% Revenue Bonds (Series D), 2/1/2003 AA 995,520
--------------------------------------------------- ------------
Total 3,539,495
--------------------------------------------------- ------------
NEVADA--0.4%
---------------------------------------------------
1,000,000 Clark County, NV, 9.75% LT GO School Improvement
Bonds (MBIA Insured), 6/1/2000 AAA 1,285,970
--------------------------------------------------- ------------
NEW HAMPSHIRE--0.9%
---------------------------------------------------
2,555,000 New Hampshire State, 6.40% GO Bonds,
(Series 1991A), 6/15/2001 AA 2,850,384
--------------------------------------------------- ------------
NEW JERSEY--1.0%
---------------------------------------------------
3,000,000 New Jersey, 5.40% OID GO Bonds UT (Original Issue
Yield: 5.60%), 2/15/2003 AA+ 3,178,260
--------------------------------------------------- ------------
NEW YORK--3.3%
---------------------------------------------------
1,500,000 Municipal Assistance Corp. of New York, 6.60%
Revenue Bonds, (Series 62), 7/1/2000 AA- 1,632,390
---------------------------------------------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------------
$2,000,000 Municipal Assistance Corp. of New York, 7.00%
Resolution Revenue Bonds, 7/1/97 AA- $ 2,208,340
---------------------------------------------------
2,000,000 New York City, NY, Water & Sewer Finance Authority,
5.00% Revenue Bonds (Series B)/(Original Issue
Yield: 5.10%), 6/15/2003 A- 1,961,300
---------------------------------------------------
2,550,000 New York State Power Authority, 5.90% Revenue and
General Purpose Bonds, 1/1/2002 Aa 2,762,645
---------------------------------------------------
1,000,000 New York State Urban Development Corp., 9.20%
Revenue Bonds, (Prerefunded), 1/1/96 (callable
@102) Aaa 1,134,660
---------------------------------------------------
1,000,000 Triborough Bridge & Tunnel Authority, NY, 6.63%
General Purpose Revenue Bonds, (Series S), 1/1/2001 A+ 1,125,070
--------------------------------------------------- ------------
Total 10,824,405
--------------------------------------------------- ------------
NORTH CAROLINA--6.3%
---------------------------------------------------
3,355,000 Charlotte-Mecklenburg Hospital Authority, NC, 5.90%
Health Care System Revenue Bonds (Original Issue
Yield: 5.95%), 1/1/2002 Aa 3,576,564
---------------------------------------------------
4,225,000 North Carolina Eastern Municipal Power, 5.125%
Revenue Bonds (Series C)/(Original Issue Yield:
5.25%), 1/1/2003 A- 4,306,247
---------------------------------------------------
2,000,000 North Carolina Eastern Municipal Power, 5.25%
Revenue Bonds (Series C)/(Original Issue Yield:
5.40%), 1/1/2004 A- 2,045,480
---------------------------------------------------
5,000,000 North Carolina Municipal Power Agency, 5.90%
Revenue Bonds (Catawba Electric)/(Original Issue
Yield: 5.95%), 1/1/2003 A 5,347,650
---------------------------------------------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
---------------------------------------------------
$5,020,000 North Carolina Municipal Power, 6.00% Revenue Bonds
(Catawba Electric)/(Original Issue Yield: 6.05%),
1/1/2004 A $ 5,376,621
--------------------------------------------------- ------------
Total 20,652,562
--------------------------------------------------- ------------
OHIO--3.7%
---------------------------------------------------
1,450,000 Columbus, OH, 5.00% GO Various Purpose UT Bonds
(Series 1993I), 9/15/2002 Aa1 1,504,172
---------------------------------------------------
1,330,000 Franklin County, OH, 5.30% Hospital Facility
Revenue Bonds (Series 1993A)/(Riverside United
Methodist Hospital)/(Original Issue Yield: 5.40%),
5/15/2002 Aa 1,347,144
---------------------------------------------------
1,500,000 Hamilton County, OH, Sewer System, 5.00%
Revenue Bonds (Series 1993A)/(Metropolitan Sewer
District of Greater Cincinnati), 12/1/2002 AA- 1,540,455
---------------------------------------------------
2,500,000 Hamilton County, OH, Sewer System, 6.20%
Improvement & Refunding Revenue Bonds,
(Series 1991A)/(Metropolitan Sewer District of
Greater Cincinnati), 12/1/2000 AA- 2,754,425
---------------------------------------------------
1,400,000 Montgomery County, OH, 6.20% Revenue Bonds,
(Series 1991A)/(Sisters of Charity Healthcare
Systems, Inc.)/(MBIA Insured), 5/15/2001 AAA 1,537,718
---------------------------------------------------
3,000,000 Ohio State Building Authority, 9.63% Revenue Bonds,
(Prerefunded), 10/1/95 (callable @103) Aaa 3,425,130
--------------------------------------------------- ------------
Total 12,109,044
--------------------------------------------------- ------------
OKLAHOMA--0.6%
---------------------------------------------------
2,000,000 Tulsa, OK, 5.15% GO Refunding Bonds, 6/1/2003 AA 2,052,900
--------------------------------------------------- ------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
PENNSYLVANIA--4.7%
---------------------------------------------------
$1,000,000 Allegheny County, PA, HDA 5.50% OID Revenue Bonds
(Presbyterian University Health System)/ (Original
Issue Yield: 5.60%)/(MBIA Insured), 11/1/2002 Aaa $ 1,053,970
---------------------------------------------------
1,500,000 Allegheny County, PA, HDA, 6.88% Revenue Bonds
(Mercy Hospital of Pittsburgh)/(BIGI Insured),
10/1/99 Aaa 1,640,370
---------------------------------------------------
1,500,000 Pennsylvania Infrastructure Investment Authority,
6.15% Revenue Bonds, (Series 1990B)/(Pennvest Loan
Pool Program), 9/1/2001 AA 1,632,915
---------------------------------------------------
8,000,000 Philadelphia, PA, 5.00% Water and Wastewater
Revenue Bonds (Original Issue Yield: 5.25%)/
(CGIC Insured), 6/15/2002 AAA 8,184,000
---------------------------------------------------
1,475,000 Washington County, PA, Hospital Authority, 5.50%
OID Revenue Bonds (Shadyside Hospital)/(Original
Issue Yield: 5.60%)/(AMBAC Insured), 12/15/2001 Aaa 1,566,406
---------------------------------------------------
1,155,000 Westmoreland County, PA, 4.70% GO Refunding Bonds
(Series D)/(MBIA Insured), 8/1/2002 AAA 1,167,208
--------------------------------------------------- ------------
Total 15,244,869
--------------------------------------------------- ------------
SOUTH CAROLINA--3.2%
---------------------------------------------------
1,290,000 Charleston, SC, Waterworks & Sewer System, 9.63%
Revenue Bonds, (Prerefunded), 1/1/96 (callable
@102) AAA 1,472,664
---------------------------------------------------
5,000,000 Columbia, SC, Waterworks & Sewer System, 6.40%
Revenue Bonds, 2/1/2001 AA 5,535,701
---------------------------------------------------
3,000,000 South Carolina Public Service Authority, 9.50%
Electric Revenue Bonds (Prerefunded), 7/1/95
(callable @103) Aaa 3,374,940
--------------------------------------------------- ------------
Total 10,383,305
--------------------------------------------------- ------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
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AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
TENNESSEE--3.2%
---------------------------------------------------
$4,000,000 Knox County, TN, 4.80% UT GO Bonds (Original Issue
Yield: 4.85%), 3/1/2003 AA $ 4,002,360
---------------------------------------------------
2,000,000 Memphis, TN, 4.90% Water Division Revenue Refunding
Bonds (Series 1993), 1/1/2003 AA 2,012,980
---------------------------------------------------
3,000,000 Memphis, TN, 5.63% Electric System Revenue Bonds,
1/1/2002 Aa 3,207,630
---------------------------------------------------
1,065,000 Metropolitan Government of Nashville & Davidson
County, TN, 5.85% OID Health & Educational
Facilities Board Revenue Bonds, (Series 1991B)/(The
Vanderbilt University)/(Original Issue Yield:
5.95%), 10/1/2001 AA 1,153,118
--------------------------------------------------- ------------
Total 10,376,088
--------------------------------------------------- ------------
TEXAS--15.0%
---------------------------------------------------
1,000,000 Canyon, TX, ISD, 8.20% GO Bonds (MBIA Insured),
2/15/96 Aaa 1,094,270
---------------------------------------------------
5,000,000 Central Texas Higher Education Authority, 4.85%
(Series C), 12/1/2002 Aa 5,007,150
---------------------------------------------------
2,000,000 Dallas County, TX, 8.75% UT GO Bonds, 1/10/96 Aaa 2,210,880
---------------------------------------------------
1,755,000 Dallas, Denton & Collins Townships, TX, Waterworks
& Sewer System, 6.60% Revenue Bonds, 4/1/97 Aa 1,926,358
---------------------------------------------------
1,000,000 Dallas, Denton & Collins Townships, TX, Waterworks
& Sewer System, 9.50% Revenue Bonds, 10/1/98 Aa 1,165,850
---------------------------------------------------
4,000,000 Garland, TX, 5.80% OID UT GO Bonds, (Dallas
County)/(Original Issue Yield: 5.90%), 8/15/2001 Aa 4,286,760
---------------------------------------------------
3,000,000 Houston, TX, ISD, 5.40% LT Schoolhouse Refunding
Bonds (Permanent School Fund Guaranty), 8/15/2001 Aaa 3,161,970
---------------------------------------------------
4,500,000 Houston, TX, ISD, 8.38% LT Schoolhouse Bonds
(Series 1991), 8/15/2000 Aaa 5,479,155
---------------------------------------------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
TEXAS--CONTINUED
---------------------------------------------------
$2,500,000 San Antonio, TX, 6.00% Water System Revenue
Refunding Bonds (Series 1992)/(Original Issue
Yield, 6.15%)/(FGIC Insured), 5/15/2001 Aaa $ 2,720,425
---------------------------------------------------
1,475,000 San Antonio, TX, 8.63% GO Bonds, 8/1/2000 AA 1,811,551
---------------------------------------------------
2,000,000 San Antonio, TX, Electric & Gas System, 5.30%
Revenue Bonds, 2/1/2002 Aa 2,073,600
---------------------------------------------------
2,000,000 San Antonio, TX, Electric & Gas System, 7.00%
Revenue Bonds, 2/1/99 Aa 2,220,360
---------------------------------------------------
1,650,000 San Antonio, TX, Electric & Gas System, 9.90%
Revenue Bonds, 2/1/98 Aa 1,984,389
---------------------------------------------------
6,370,000 Socorro, TX, ISD, 6.25% OID UT GO Refunding Bonds,
(Series 1991A)/(Texas Permanent School Fund
Guaranty)/(Original Issue Yield, 6.30%), 8/15/2001 AAA 6,997,318
---------------------------------------------------
6,000,000 Texas Water Development Board, 5.80% OID Revenue
Bonds (Series 1992)/(Original Issue Yield: 5.90%),
7/15/2002 Aa 6,436,740
--------------------------------------------------- ------------
Total 48,576,776
--------------------------------------------------- ------------
UTAH--2.2%
---------------------------------------------------
5,000,000 Intermountain Power Agency, UT, 4.80% Power Supply
Revenue Bonds (Series 1993C), 7/1/2003 AA 5,022,650
---------------------------------------------------
2,000,000 Intermountain Power Agency, UT, 7.20% Power Supply
Revenue Bonds, 7/1/99 AA 2,251,340
--------------------------------------------------- ------------
Total 7,273,990
--------------------------------------------------- ------------
VERMONT--0.3%
---------------------------------------------------
1,000,000 Vermont State, 5.93% GO Bonds, (Series 1992A),
2/1/2002 Aa 1,073,820
--------------------------------------------------- ------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
VIRGINIA--3.9%
---------------------------------------------------
$2,025,000 Newport News, VA, 5.40% General Improvement GO
Refunding Bonds (Series 1992B), 7/1/2002 Aa $ 2,109,584
---------------------------------------------------
6,000,000 Norfolk, VA, 5.00% GO Capital Improvement and
Refunding Bonds, 2/1/2003 Aa 6,096,600
---------------------------------------------------
1,995,000 Virginia Beach, VA, 6.30% GO Bonds, 3/1/2000 AA 2,200,066
---------------------------------------------------
1,995,000 Virginia Beach, VA, 6.30% GO Bonds, 3/1/2001 AA 2,212,315
--------------------------------------------------- ------------
Total 12,618,565
--------------------------------------------------- ------------
WASHINGTON--3.0%
---------------------------------------------------
3,650,000 Seattle, WA, 4.60% OID UT GO Bonds (Original Issue
Yield: 4.70%), 12/1/2002 AA+ 3,642,007
---------------------------------------------------
1,020,000 Seattle, WA, 6.10% LT GO Refunding Bonds (Series
B), 3/1/2002 AA+ 1,109,014
---------------------------------------------------
2,000,000 Washington State, 5.70% GO Motor Vehicle Fuel Tax
Refund Bonds, (Series D), 9/1/2001 Aa 2,133,020
---------------------------------------------------
2,570,000 Washington State, 6.60% UT GO Bonds (Series A),
2/1/2002 Aa 2,886,727
--------------------------------------------------- ------------
Total 9,770,768
--------------------------------------------------- ------------
</TABLE>
INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
WISCONSIN--0.8%
---------------------------------------------------
$2,500,000 Wisconsin State, 5.20% OID GO Bonds (Original Issue
Yield: 5.30%), 11/1/2002 Aa $ 2,614,175
--------------------------------------------------- ------------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $298,815,560) 315,693,022
--------------------------------------------------- ------------
TOTAL MUNICIPAL SECURITIES
(IDENTIFIED COST, $303,065,560) $319,943,022+
--------------------------------------------------- ------------
</TABLE>
* See Notes to Portfolio of Investments:
+ The cost of investments for federal tax purposes amounts to $303,065,560. The
net unrealized appreciation of investments on a federal tax basis amounts to
$16,877,462 which is comprised of $17,159,445 appreciation and $281,983
depreciation at November 30, 1993.
Note: The categories of investments are shown as a percentage of net assets
($325,436,841) at November 30, 1993.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corp.
BIGI -- Bond Investors Guaranty Inc.
CGIC -- Capital Guaranty Insurance Corporation
EDA -- Economic Development Authority
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
GO -- General Obligations
HDA -- Housing Development Authority
HFDA -- Health Facility Development Authority
HFDC -- Health Facility Development Corporation
ISD -- Independent School District
LOC -- Letter of Credit
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
OID -- Original Issue Discount
Q-SBLF -- Qualified State Bond Loan Fund
UT -- Unlimited Tax
VRDN -- Variable Rate Demand Note
</TABLE>
(See Notes which are an integral part of the Financial Statements)
INTERMEDIATE MUNICIPAL TRUST
NOTES TO PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
Moody's Investors Service, Inc. ("Moody's") highest rating for state, municipal,
and other short-term notes is MIG1/VMIG1. Short-term municipal securities rated
MIG1/VMIG1 are the best quality. They have strong protection from established
cash flows for their servicing or from established and broad-based access to the
market for refinancing or both. The VMIG1 rating denotes that the security has a
variable rate and is payable on demand.
The three highest ratings of Moody's for municipal bonds are Aaa, Aa and A.
Bonds rated Aaa are judged to be the "best quality." The rating Aa is assigned
to bonds which are of "high quality by all standards," but as to which margins
of protection or other elements make long-term risks appear somewhat larger than
Aaa-rated bonds. The Aaa and Aa rated bonds comprise what are generally known as
"high-grade bonds." Bonds which are rated A by Moody's possess many favorable
investment attributes and are considered "upper medium-grade obligations."
Factors giving security to principal and interest of A-rated bonds are
considered adequate, but elements may be present which suggest a susceptibility
to impairment sometime in the future. The bonds in the A group which Moody's
believes possess the strongest investment attributes are designated by the
symbol A1.
Moody's applies numerical modifiers 1, 2, and 3 in each generic rating
classification from Aa through B in its corporate or municipal bond rating
system. The modifier 1 indicates that the security ranks in the higher end of
its generic rating category; the modifier 2 indicates a mild-range ranking; and
the modifier 3 indicates that the issue ranks in the lower end of its generic
rating category.
Standard & Poor's Corporation's ("Standard & Poor's") highest rating for
municipal commercial paper is A-1. Short-term municipal commercial paper rated
A-1 is of the best quality. The rating Prime 1 (P-1) is the highest municipal
commercial paper rating assigned by Moody's.
The three highest ratings of Standard & Poor's for municipal bonds are AAA
(Prime), AA (High Grade) and A (Good Grade). Bonds rated AAA have the highest
rating assigned by Standard & Poor's to a debt obligation. The capacity to pay
interest and repay principal is extremely strong. Bonds rated AA have a very
strong capacity to pay interest and repay principal and differ from the highest
rated issues only by a small degree. Bonds rated A have a strong capacity to pay
interest and repay principal although they are somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than bonds
in higher rated categories. The ratings from AA to A may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
NR indicates the bonds are not currently rated by Moody's or Standard & Poor's.
However, management considers them to be of good comparable quality to the above
mentioned quality ratings.
INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments in securities, at value (Note 2A)
(Identified and tax cost $303,065,560) $319,943,022
- --------------------------------------------------------------------------------
Cash 18,427
- --------------------------------------------------------------------------------
Interest receivable 6,164,191
- --------------------------------------------------------------------------------
Receivable for Trust shares sold 508,438
- -------------------------------------------------------------------------------- ------------
Total assets 326,634,078
- --------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------
Dividends payable (Note 3) $1,079,175
- -------------------------------------------------------------------
Payable for Trust shares redeemed 99,082
- -------------------------------------------------------------------
Accrued expenses and other liabilities 18,980
- ------------------------------------------------------------------- ----------
Total liabilities 1,197,237
- -------------------------------------------------------------------------------- ------------
NET ASSETS for 29,891,207 shares of beneficial interest outstanding $325,436,841
- -------------------------------------------------------------------------------- ------------
NET ASSETS CONSISTS OF:
- --------------------------------------------------------------------------------
Paid in capital $315,837,913
- --------------------------------------------------------------------------------
Unrealized appreciation of investments 16,877,462
- --------------------------------------------------------------------------------
Accumulated undistributed net realized loss on investments (7,278,534)
- -------------------------------------------------------------------------------- ------------
Total $325,436,841
- -------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share
Institutional Shares (net assets of $324,763,434 / 29,829,350 shares of
beneficial interest outstanding) $10.89
- -------------------------------------------------------------------------------- ------------
Institutional Service Shares (net assets of $673,407 / 61,857 shares of
beneficial interest outstanding) $10.89
- -------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Interest income (Note 2B) $ 8,088,462
- --------------------------------------------------------------------------------
EXPENSES--
- --------------------------------------------------------------------------------
Investment advisory fee (Note 5) $603,080
- ---------------------------------------------------------------------
Trustees' fees 5,746
- ---------------------------------------------------------------------
Administrative personnel and services (Note 5) 159,929
- ---------------------------------------------------------------------
Custodian, transfer agent and dividend disbursing agent fees and
expenses 75,534
- ---------------------------------------------------------------------
Trust share registration costs 42,261
- ---------------------------------------------------------------------
Auditing fees 9,875
- ---------------------------------------------------------------------
Legal fees 8,011
- ---------------------------------------------------------------------
Printing and postage 17,076
- ---------------------------------------------------------------------
Insurance premiums 4,757
- ---------------------------------------------------------------------
Distribution services fees (Note 5) 109
- ---------------------------------------------------------------------
Taxes 3,477
- ---------------------------------------------------------------------
Miscellaneous 2,594
- --------------------------------------------------------------------- --------
Total expenses 932,449
- ---------------------------------------------------------------------
DEDUCT--Waiver of investment advisory fee (Note 5) 80,717
- --------------------------------------------------------------------- --------
Net expenses 851,732
- -------------------------------------------------------------------------------- -----------
Net investment income 7,236,730
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) --
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 3,549,135
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized gain (loss) on investments 3,549,135
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $10,785,865
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
<S> <C> <C>
1994* 1993
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 7,236,730 $ 11,109,442
- -------------------------------------------------------------
Net realized gain (loss) on investment transactions ($0 and
$242,740 net loss, respectively, as computed for federal tax
purposes) (Note 2C) -- (242,740)
- -------------------------------------------------------------
Change in unrealized appreciation of investments 3,549,135 7,725,575
- ------------------------------------------------------------- ------------ ------------
Change in net assets from operations 10,785,865 18,592,277
- ------------------------------------------------------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- -------------------------------------------------------------
Dividends to shareholders from net investment income:
- -------------------------------------------------------------
Institutional Shares (7,234,612) (11,109,442)
- -------------------------------------------------------------
Institutional Service Shares (2,118) --
- ------------------------------------------------------------- ------------ ------------
Change in net assets from distributions to shareholders (7,236,730) (11,109,442)
- ------------------------------------------------------------- ------------ ------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- -------------------------------------------------------------
Proceeds from sale of shares 103,598,184 165,053,543
- -------------------------------------------------------------
Net asset value of shares issued to shareholders electing to
receive payment of dividends in Trust shares 1,232,718 1,634,529
- -------------------------------------------------------------
Cost of shares redeemed (46,226,038) (84,589,739)
- ------------------------------------------------------------- ------------ ------------
Change in net assets resulting from Trust share
transactions 58,604,864 82,098,333
- ------------------------------------------------------------- ------------ ------------
Change in net assets 62,153,999 89,581,168
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 263,282,842 173,701,674
- ------------------------------------------------------------- ------------ ------------
End of period $325,436,841 $263,282,842
- ------------------------------------------------------------- ------------ ------------
</TABLE>
* Six months ended November 30, 1993 (unaudited).
(See Notes which are an integral part of the Financial Statements)
INTERMEDIATE MUNICIPAL TRUST
INSTITUTIONAL SHARES
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
--------------------------------------------------------------------------------------------------------
1994** 1993 1992 1991 1990 1989 1988 1987 1986*
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.74 $ 10.31 $ 10.09 $ 9.84 $ 9.81 $ 9.81 $ 9.83 $ 9.97 $ 10.00
- ---------------------
INCOME FROM
INVESTMENT
OPERATIONS
- ---------------------
Net investment
income 0.26 0.56 0.59 0.63 0.64 0.64 0.62 0.58 0.29
- ---------------------
Net realized and
unrealized gain
(loss) on
investments 0.15 0.43 0.22 0.25 0.03 -- (0.02) (0.14) (0.03)
- --------------------- ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from
investment
operations 0.41 0.99 0.81 0.88 0.67 0.64 0.60 0.44 0.26
- ---------------------
LESS DISTRIBUTIONS
- ---------------------
Dividends to
shareholders from
net
investment income (0.26) (0.56) (0.59) (0.63) (0.64) (0.64) (0.62) (0.58) (0.29)
- --------------------- ------ ------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE,
END OF PERIOD $ 10.89 $ 10.74 $ 10.31 $ 10.09 $ 9.84 $ 9.81 $ 9.81 $ 9.83 $ 9.97
- --------------------- ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL RETURN*** 3.86% 9.80% 8.19% 9.22% 7.02% 6.77% 6.34% 4.25% 2.60%
- ---------------------
RATIOS TO AVERAGE
NET ASSETS
- ---------------------
Expenses 0.56%(b) 0.48% 0.47% 0.49% 0.50% 0.48% 0.49% 0.47% .003%(b)
- ---------------------
Net investment
income 4.80%(b) 5.27% 5.73% 6.32% 6.49% 6.56% 6.25% 5.63% 6.46%(b)
- ---------------------
Expense
waiver/
reimbursement(a) 0.06%(b) 0.14% 0.22% 0.30% 0.38% 0.39% 0.31% 0.27% 0.57%(b)
- ---------------------
SUPPLEMENTAL DATA
- ---------------------
Net assets, end of
period (000
omitted) $324,763 $263,283 $173,702 $116,577 $95,738 $82,211 $91,195 $120,162 $3,450
- ---------------------
Portfolio turnover
rate(c) 0% 3% 9% 43% 14% 25% 119% 81% 23%
- ---------------------
</TABLE>
* Reflects operations for the period from December 26, 1985 (date of initial
public offering) through May 31, 1986. For the period from the start of
business, October 15, 1985 to December 25, 1985, net investment income per
share aggregating $0.108424 ($1,084) was distributed to an affiliate of the
Trust's adviser. Such distribution represented the net income of the Trust
prior to the initial public offering of the Trust shares which commenced
December 26, 1985.
** Six months ended November 30, 1993 (unaudited).
*** Based on net asset value, which does not reflect the sales load or
redemption fee, if applicable.
(a) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(b) Computed on an annualized basis.
(c) Represents portfolio turnover for the entire Trust.
(See Notes which are an integral part of the Financial Statements)
INTERMEDIATE MUNICIPAL TRUST
INSTITUTIONAL SERVICE SHARES
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
MAY 31,
1994*
-----------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.00
- ----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------
Net investment income 0.12
- ----------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.11)
- ---------------------------------------------------------------------------- --------
Total from investment operations 0.01
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.12)
- ---------------------------------------------------------------------------- --------
NET ASSET VALUE, END OF PERIOD $ 10.89
- ---------------------------------------------------------------------------- --------
TOTAL RETURN** 0.06%
- ----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------
Expenses 0.81%(b)
- ----------------------------------------------------------------------------
Net investment income 4.86%(b)
- ----------------------------------------------------------------------------
Expense waiver/reimbursement (a) 0.07%(b)
- ----------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 673
- ----------------------------------------------------------------------------
Portfolio turnover rate (c) 0%
- ----------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from September 6, 1993 (date of initial
public offering) to November 30, 1993 (unaudited).
** Based on net asset value, which does not reflect the sales load or
redemption fee, if applicable.
(a) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(b) Computed on an annualized basis.
(c) Represents portfolio turnover for the entire Trust.
(See Notes which are an integral part of the Financial Statements)
INTERMEDIATE MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Intermediate Municipal Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company.
The Trust provides two classes of shares ("Institutional Shares" and
"Institutional Service Shares"). Institutional Service Shares are identical in
all respects to Institutional Shares except that Institutional Service Shares
are sold pursuant to a distribution plan ("Plan") adopted in accordance with
Investment Company Act Rule 12b-1.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--Municipal bonds are valued at fair value. An
independent pricing service values the Trust's municipal bonds taking into
consideration yield, stability, risk, quality, coupon, maturity, type of
issue, trading characteristics, special circumstances of a security or
trading market, and any other factors or market data it deems relevant in
determining valuations for normal institutional size trading units of debt
securities and does not rely exclusively on quoted prices. The Trustees have
determined that the fair value of debt securities with remaining maturities
of 60 days or less shall be their amortized cost value unless the particular
circumstances of the security indicate otherwise.
B. INCOME--Interest income is recorded on the accrual basis. Interest income
includes interest earned net of premium, and original issue discount as
required by the Internal Revenue Code.
C. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of the
Internal Revenue Code available to investment companies and distribute to
shareholders each year all of its taxable income, including any net realized
gain on investments. Accordingly, no provision for federal income tax is
necessary. At May 31, 1993, the Trust, for federal income tax purposes, had a
capital loss carryforward of $7,278,604 which will reduce the Trust's taxable
income arising from future net realized gain on investments, if any, to the
extent permitted by the Internal Revenue Code and thus will reduce the amount
of the capital gains distributions to shareholders which would otherwise be
necessary to relieve the Trust of any liability for federal income tax.
Pursuant to the Code, such capital loss carryforward will expire in 1995
($2,674,980), 1996 ($3,974,606), 1997 ($215,810), 1998 ($170,468) and 2001
($242,740). Dividends paid by the Trust from net interest earned on tax-
exempt municipal bonds are not includable by shareholders as gross income for
federal regular income tax purposes, because the Trust intends to meet
certain requirements of the Internal
INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
Revenue Code applicable to regulated investment companies which will enable
the Trust to pay tax-exempt interest dividends.
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. To the extent the Trust engages
in such transactions, it will do so for the purpose of acquiring portfolio
securities consistent with its investment objective and policies and not for
the purpose of investment leverage. The Trust will record a when-issued
security and the related liability on the trade date. Until the securities
are received and paid for, the Trust will maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
E. OTHER--Investment transactions are accounted for on the date of the
transaction.
(3) DIVIDENDS
The Trust computes its net income daily and, immediately prior to the
calculation of its net asset value at the close of business, declares and
records dividends to shareholders of record with respect to shares for which
payment in federal funds has been received. Payment of dividends is made monthly
in cash, or in additional shares at the net asset value on the payable date.
Capital gains realized by the Trust are distributed at least once every twelve
months and are recorded on the ex-dividend date.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. Transactions in Trust shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
---------------------------------------------------------
1994* 1993
--------------------------- --------------------------
INSTITUTIONAL SHARES SHARES DOLLARS SHARES DOLLARS
- ---------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares outstanding, beginning of period 24,518,093 $257,233,049 16,850,508 $175,134,716
- ----------------------------------------
Shares sold 9,428,070 102,921,540 15,482,627 165,053,543
- ----------------------------------------
Shares issued to shareholders electing
to receive payment of dividends in
Trust shares 112,753 1,230,998 153,583 1,634,529
- ----------------------------------------
Shares redeemed (4,229,566) (46,225,887) (7,968,625) (84,589,739)
- ---------------------------------------- ---------- ------------ ---------- ------------
Shares outstanding, end of period 29,829,350 $315,159,700 24,518,093 $257,233,049
- ---------------------------------------- ---------- ------------ ---------- ------------
</TABLE>
* Six months ended November 30, 1993.
INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED
MAY 31, 1994*
--------------------
INSTITUTIONAL SERVICE SHARES SHARES DOLLARS
- --------------------------------------------------------------------- ------- --------
<S> <C> <C>
Shares outstanding, beginning of period -- $ --
- ---------------------------------------------------------------------
Shares sold 61,713 676,644
- ---------------------------------------------------------------------
Shares issued to shareholders electing to receive payment of
dividends in Trust shares 158 1,720
- ---------------------------------------------------------------------
Shares redeemed (14) (151)
- --------------------------------------------------------------------- ------- --------
Shares outstanding, end of period 61,857 $678,213
- --------------------------------------------------------------------- ------- --------
* For the period from September 6, 1993 (date of initial public offering) to November 30,
1993.
</TABLE>
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Federated Management, the Trust's investment adviser (the "Adviser"), receives
for its services an annual investment advisory fee equal to .40% of the Trust's
average daily net assets. The Adviser will waive its fee and reimburse the Trust
a portion of their annual operating expenses. The voluntary waiver and
reimbursement may be terminated at any time by the Adviser in its sole
discretion. For the six months ended November 30, 1993, the investment advisory
fee amounted to $603,080, of which $80,717 was voluntarily waived in accordance
with such undertaking. Administrative personnel and services were provided at
approximate cost by Federated Administrative Services, Inc. Certain of the
Officers and Trustees of the Trust are Officers and Directors of the above
corporations.
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Trust will compensate Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of the
Trust, for the fees it paid which relate to the distribution and administration
of the Trust's Institutional Service Shares. The Plan provides that the Trust
will incur distribution expenses up to 0.25% of 1% of the average daily net
assets of the Institutional Service Shares, annually, to pay commissions,
maintenance fees and to compensate FSC. For the period from September 6, 1993
(effective date of Institutional Service Shares) to November 30, 1993, FSC
earned $109 in distribution service fees.
For the six months ended November 30, 1993, the Trust engaged in purchase and
sale transactions with other funds advised by the Adviser pursuant to Rule 17a-7
of the Investment Company Act of 1940 amounting to $53,100,000 and $58,050,000,
respectively. These purchases and sales were conducted on an arms-length basis
insofar as they were transacted for cash consideration only, at independent
current market prices and without brokerage commission, fee or other
remuneration.
INTERMEDIATE MUNICIPAL TRUST
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(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six
months ended November 30, 1993 were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES-- $64,724,523
- ------------------------------------------------------------------------------- -----------
SALES-- --
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
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John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Glen R. Johnson
James E. Dowd President
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Glen R. Johnson Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer Edward C. Gonzales
Wesley W. Posvar Vice President and Treasurer
Marjorie P. Smuts John W. McGonigle
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
G. Andrew Bonnewell
Assistant Secretary
</TABLE>
"Mutual funds are not obligations of or insured by any bank nor are they insured
by the federal government or any of its agencies. Investment in these shares
involves risk, including the possible loss of principal."
"This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the [Trust's/Fund's] prospectus which contains facts
concerning its
objective and policies, management fees, and other information."
