- --------------------------------------------------------------------------------
FEDERATED
- --------------------------------------------------------------------------------
INTERMEDIATE
- --------------------------------------------------------------------------------
MUNICIPAL
- --------------------------------------------------------------------------------
TRUST
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
NOVEMBER 30, 1995
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
Cusip 458810108 LOGO
8010413 (1/96)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Intermediate Municipal Trust (formerly, Intermediate Municipal Trust) for the
six-month period ended November 30, 1995. The Report begins with an investment
review, which is a brief commentary on the municipal market from the fund's
portfolio manager. Following the investment review, you will find the fund's
portfolio of investments and its financial statements.
Federated Intermediate Municipal Trust pursues monthly income that is free from
federal regular income taxes by investing in a highly diverse portfolio of
intermediate-term securities issued by municipalities across the nation.*
Over the six-month reporting period ended November 30, 1995, the fund achieved a
total return of 3.55%.** Dividends paid to shareholders totaled $5.8 million, or
$0.3 per share. The fund's share price increased by $0.10 from the first day of
the period to the last day of the period. Total assets stood at $226.3 million
at the period's end.
Thank you for your confidence in the tax-free earning power of Federated
Intermediate Municipal Trust. We will continue to keep you up-to-date on the
fund's performance, and we welcome your questions, comments, or suggestions.
Sincerely,
/s/ Glen R. Johnson
Glen R. Johnson
President
January 15, 1996
* Income may be subject to federal alternative minimum tax and state and local
taxes.
** 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.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
For the six-month period ended November 30, 1995, interest rates for the
intermediate-term, fixed-income securities markets in the U.S. declined
markedly, as evidence of reasonable economic growth without rampant inflation
continued to be reported. From May 31, 1995, to November 30, 1995, yields for
7-year U.S. Treasury notes dropped from 6.20% to 5.70%, with an interim peak of
6.55% reached on August 14, 1995. In the municipal sector, interest rates for
7-year "AA" general obligation bonds as rated by Standard & Poor's Ratings
Group, descended from 4.75% to 4.45%, despite a pinnacle of 4.90% on June 16,
1995.
In this environment, the fund used the proceeds of the sale or redemption of
$18.5 million par value of pre-refunded issues to purchase $17.5 million par
value of state housing finance agency obligations and of high-grade industrial
development bonds of obligors such as Cargill, Inc. In so doing, the average
coupon rate of portfolio holdings was reduced from 6.72% to 6.40%. The effective
maturity of the portfolio was extended modestly from 5.71 years to 5.83 years.
Both factors led to an increase in portfolio modified duration from 4.58 to
4.75. Part of the aforementioned proceeds were used to accommodate shareholder
redemptions during the six-month interval. Fund shares outstanding declined by
2.3%, from 21.7 million to 21.2 million, while the net asset value per share
grew from $10.55 to $10.65.
During the six-month period ended November 30, 1995, a high quality profile was
maintained for the portfolio of the fund. Expressed as a percentage of aggregate
market value (with accrued interest), the quality of the fund's holdings as
rated by Standard & Poor's Ratings Group was as follows on November 30, 1995:
36.5% in "AAA" issues; 56.3% in "AA" issues; 6.5% in "A" issues; and 0.7% in the
highest quality tax-exempt, money-market equivalent issues.
For the six-month period ended November 30, 1995, an investor in Federated
Intermediate Municipal Trust experienced a total return of 3.55%. This outcome
was comprised of 0.95% appreciation in the net asset value per share and of
2.60% net income return. The Lipper Intermediate Municipal Debt Fund Average,*
for the period, registered a total return of 4.08%, split between 1.78% price
appreciation and of 2.30% net dividend return.
* Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the respective categories indicated. These figures do not reflect sales
charges.
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--97.8%
- ------------------------------------------------------------------
ALABAMA--0.7%
---------------------------------------------------
$1,500,000 Alabama Water PCA, PCR Bonds, 6.35% (AMBAC INS),
8/15/2001 Aaa $ 1,646,505
--------------------------------------------------- ------------
ARIZONA--6.0%
---------------------------------------------------
1,000,000 Arizona State Transportation Board, Excise Tax
Revenue Bonds (Series B), 5.50% (Maricopa Cnty, AZ
Regional Area Roads)/(AMBAC INS)/(Original Issue
Yield: 5.60%), 7/1/2002 Aaa 1,057,870
---------------------------------------------------
1,500,000 Maricopa County, AZ, IDA, Hospital Facility Revenue
Bonds (Series 1985A), 8.20% (Samaritan Health
Services, AZ)/(MBIA INS), 12/1/1996 Aaa 1,530,195
---------------------------------------------------
1,000,000 Mesa, AZ, UT GO Bonds, 7.125%, 7/1/1996 (@102) A+ 1,040,280
---------------------------------------------------
1,500,000 Phoenix, AZ, UT GO Refunding Bonds (Series A),
7.40%, 7/1/2000 AA 1,696,590
---------------------------------------------------
2,900,000 Pima County, AZ Unified School District No. 1, UT
GO Bonds (Series 1989E), 4.80% (FGIC INS)/
(Original Issue Yield: 4.90%), 7/1/2003 Aaa 2,941,325
---------------------------------------------------
5,000,000 Salt River Project, AZ Agricultural Improvement &
Power District, Electric System Revenue Bonds
(Series A), 7.10%, 1/1/2000 AA 5,370,350
--------------------------------------------------- ------------
Total 13,636,610
--------------------------------------------------- ------------
CALIFORNIA--4.2%
---------------------------------------------------
2,250,000 California State, UT GO Bonds, Series AV, 7.80%,
10/1/2000 AA 2,602,485
---------------------------------------------------
1,800,000 Los Angeles, CA Department of Water & Power,
Electric Plant Revenue Bonds, 2nd Issue, 9.00%,
6/1/2000 AA 2,147,868
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
CALIFORNIA--CONTINUED
---------------------------------------------------
$1,875,000 Los Angeles, CA Department of Water & Power,
Electric Plant Revenue Bonds, 2nd Issue, 9.00%,
6/1/2001 AA $ 2,290,125
---------------------------------------------------
2,000,000 Los Angeles, CA Department of Water & Power,
Electric Plant Revenue Refunding Bonds, 9.00%,
2/1/2001 AA 2,416,220
--------------------------------------------------- ------------
Total 9,456,698
--------------------------------------------------- ------------
FLORIDA--3.4%
---------------------------------------------------
2,000,000 Florida State Board of Education Administration, UT
GO Capital Outlay Bonds (Series C), 6.25% (Florida
State), 6/1/2001 AA 2,189,820
---------------------------------------------------
3,000,000 Florida State Board of Education Administration, UT
GO Capital Outlay Bonds, 6.00% (Florida State),
6/1/2001 AA 3,248,310
---------------------------------------------------
1,000,000 Miami Beach, FL Health Facilities Authority,
Hospital Revenue Refunding Bonds, 5.60% (Mt. Sinai
Medical Center, FL)/(CGIC INS)/(Original Issue
Yield: 5.65%), 11/15/2002 AAA 1,072,790
---------------------------------------------------
1,050,000 Plantation, FL Water & Sewer System, Revenue Bonds
(Series A), 8.70% (United States Treasury COL)/
(MBIA INS), 3/1/1996 Aaa 1,063,755
--------------------------------------------------- ------------
Total 7,574,675
--------------------------------------------------- ------------
GEORGIA--4.0%
---------------------------------------------------
2,000,000 Georgia State Municipal Electric Authority, Revenue
Bonds (Series U), 6.50%, 1/1/2000 AA- 2,159,680
---------------------------------------------------
1,000,000 Georgia State Municipal Electric Authority, Revenue
Bonds (Series U), 6.60%, 1/1/2001 AA- 1,096,850
---------------------------------------------------
5,000,000 Georgia State, UT GO Bonds (Series A), 7.70%,
2/1/2001 Aaa 5,798,900
--------------------------------------------------- ------------
Total 9,055,430
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
HAWAII--5.5%
---------------------------------------------------
$5,000,000 Hawaii State, UT GO Bonds (Series BT), 8.00%,
2/1/2001 AA $ 5,830,000
---------------------------------------------------
1,000,000 Hawaii State, UT GO Bonds (Series BU), 5.85%
(Original Issue Yield: 5.95%), 11/1/2001 AA 1,078,850
---------------------------------------------------
2,000,000 Hawaii State, UT GO Bonds (Series BZ), 6.25%,
10/1/2002 AA 2,210,660
---------------------------------------------------
3,000,000 Honolulu, HI City & County, UT GO Bonds (Series A),
6.30% (Original Issue Yield: 6.40%), 8/1/2001 AA 3,295,650
--------------------------------------------------- ------------
Total 12,415,160
--------------------------------------------------- ------------
ILLINOIS--4.7%
---------------------------------------------------
3,000,000 Du Page, IL Water Commission, UT GO Bonds, 6.05%,
3/1/2002 Aaa 3,248,190
---------------------------------------------------
3,000,000 Illinois Municipal Electric Agency, Power Supply
System Revenue Bonds (Series A), 6.20% (AMBAC INS),
2/1/2001 Aaa 3,234,090
---------------------------------------------------
1,840,000 Illinois State Toll Highway Authority, Revenue
Refunding Bonds, 9.125% (Northern Illinois Toll
Highway)/(United States Treasury PRF), 1/1/1996
(@102) Aaa 1,885,393
---------------------------------------------------
2,000,000 University of Illinois, Auxiliary Facilities
Revenue Bonds, 6.40% (Original Issue Yield: 6.45%),
4/1/2001 AA 2,188,760
--------------------------------------------------- ------------
Total 10,556,433
--------------------------------------------------- ------------
MARYLAND--0.5%
---------------------------------------------------
1,000,000 University of Maryland, Auxiliary Facility &
Tuition Revenue Bonds (Series A), 5.80% (Original
Issue Yield: 5.85%), 2/1/2002 AA+ 1,071,790
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
MICHIGAN--7.2%
---------------------------------------------------
$4,500,000 Detroit, MI City School District, UT GO Refunding
Bonds, 4.85% (Michigan State GTD)/(Original Issue
Yield: 4.95%), 5/1/2004 AA $ 4,505,985
---------------------------------------------------
1,250,000 Jackson County, MI Hospital Finance Authority,
Hospital Revenue Refunding Bonds (Series A), 4.80%
(W.A. Foote Memorial Hospital, MI)/(FGIC INS)/
(Original Issue Yield: 4.90%), 6/1/2005 Aaa 1,242,938
---------------------------------------------------
2,000,000 Michigan State Building Authority, Revenue Bonds
(Series II), 6.25% (AMBAC INS)/(Original Issue
Yield: 6.35%), 10/1/2000 Aaa 2,168,980
---------------------------------------------------
3,705,000 Michigan State HDA, (Series B) Rental Housing
Revenue Bonds, 5.65% (MBIA INS), 10/1/2007 Aaa 3,734,307
---------------------------------------------------
3,605,000 Michigan State HDA, (Series B) Rental Housing
Revenue Bonds, 5.65% (MBIA INS), 4/1/2007 Aaa 3,632,902
---------------------------------------------------
1,000,000 Royal Oak, MI Hospital Finance Authority, Revenue
Refunding Bonds, 7.40% (William Beaumont Hospital,
MI), 1/1/2000 AA 1,073,990
--------------------------------------------------- ------------
Total 16,359,102
--------------------------------------------------- ------------
MISSOURI--4.8%
---------------------------------------------------
5,000,000 Missouri St. HEFA, Health Facilities Revenue Bonds
(Series A), 6.00% (BJC Health System, MO)/(Original
Issue Yield: 6.05%), 5/15/2005 AA 5,412,200
---------------------------------------------------
5,000,000 Missouri St. HEFA, Health Facilities Revenue Bonds
(Series A), 6.10% (BJC Health System, MO)/(Original
Issue Yield: 6.15%), 5/15/2006 AA 5,427,450
--------------------------------------------------- ------------
Total 10,839,650
--------------------------------------------------- ------------
NEVADA--0.5%
---------------------------------------------------
1,000,000 Clark County, NV School District, LT GO Bonds
(Series A), 9.75% (MBIA INS), 6/1/2000 Aaa 1,218,440
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
NEW HAMPSHIRE--1.2%
---------------------------------------------------
$2,555,000 New Hampshire State, UT GO Bonds (Series A), 6.40%,
6/15/2001 Aa1 $ 2,813,719
--------------------------------------------------- ------------
NEW YORK--6.9%
---------------------------------------------------
1,500,000 Municipal Assistance Corp. of New York, Revenue
Bonds (Series 62), 6.60%, 7/1/2000 AA- 1,586,985
---------------------------------------------------
2,000,000 Municipal Assistance Corp. of New York, Revenue
Bonds (Series 66), 7.00% (Original Issue Yield:
7.05%), 7/1/1997 AA- 2,095,160
---------------------------------------------------
2,500,000 New York State Environmental Facilities Corp.,
State Water Pollution Control Bonds (Series 1994E),
6.15% (Original Issue Yield: 6.25%), 6/15/2004 Aa 2,746,100
---------------------------------------------------
2,550,000 New York State Power Authority, Revenue & General
Purpose Bonds (Series BB), 5.90% (Original Issue
Yield: 5.95%), 1/1/2002 AA 2,738,802
---------------------------------------------------
4,000,000 New York State Thruway Authority, Highway & Bridge
Fund Revenue Bonds (Series B), 5.625% (FGIC
INS)/(Original Issue Yield: 5.75%), 4/1/2005 Aaa 4,253,440
---------------------------------------------------
1,000,000 New York State Urban Development Corp.,
Correctional Facilities Revenue Bonds (Series A),
9.20% (United States Treasury PRF)/(Original Issue
Yield: 9.297%), 1/1/1996 (@102) Aaa 1,024,800
---------------------------------------------------
1,000,000 Triborough Bridge & Tunnel Authority, NY, Revenue
Bonds (Series S), 6.625% (Original Issue Yield:
6.70%), 1/1/2001 Aa 1,103,960
--------------------------------------------------- ------------
Total 15,549,247
--------------------------------------------------- ------------
NORTH CAROLINA--6.0%
---------------------------------------------------
3,355,000 Charlotte-Mecklenburg Hospital Authority, NC,
Health Care System Revenue Bonds, 5.90% (Original
Issue Yield: 5.95%), 1/1/2002 AA 3,602,296
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
---------------------------------------------------
$2,000,000 North Carolina Municipal Power Agency No. 1,
Catawba Electric Revenue Refunding Bonds, 5.90%
(Original Issue Yield: 5.95%), 1/1/2003 A $ 2,092,840
---------------------------------------------------
5,350,000 North Carolina Municipal Power Agency No. 1,
Catawba Electric Revenue Refunding Bonds, 6.00%
(Original Issue Yield: 6.05%), 1/1/2004 A 5,625,739
---------------------------------------------------
2,000,000 North Carolina Municipal Power Agency No. 1,
Catawba Electric Revenue Refunding Bonds, 7.25%,
1/1/2007 A 2,325,500
--------------------------------------------------- ------------
Total 13,646,375
--------------------------------------------------- ------------
OHIO--3.7%
---------------------------------------------------
2,615,000 Franklin County, OH Hospital Facility Authority,
Refunding Revenue Bonds, 5.25% (Holy Cross Health
System Corp.)/(MBIA INS)/(Original Issue Yield:
5.60%), 6/1/2008 Aaa 2,649,780
---------------------------------------------------
1,330,000 Franklin County, OH Hospital Facility Authority,
Revenue Refunding Bonds (Series A), 5.30%
(Riverside United Methodist Hospital)/(Original
Issue Yield: 5.40%), 5/15/2002 Aa 1,394,877
---------------------------------------------------
2,500,000 Hamilton County, OH Sewer System, Improvement &
Revenue Refunding Bonds (Series A), 6.20%,
12/1/2000 AA- 2,712,350
---------------------------------------------------
1,400,000 Montgomery County, OH Health Facilities Authority,
Revenue Bonds (Series A), 6.20% (Sisters of Charity
Health Care System)/(MBIA INS)/(Original Issue
Yield: 6.30%), 5/15/2001 Aaa 1,522,836
--------------------------------------------------- ------------
Total 8,279,843
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
OKLAHOMA--2.8%
---------------------------------------------------
$2,000,000 Oklahoma State Industrial Authority, Health System
Revenue Bonds (Series C), 5.70% (Baptist Medical
Center, OK)/(AMBAC INS)/(Original Issue Yield:
5.80%), 8/15/2002 Aaa $ 2,117,320
---------------------------------------------------
2,100,000 Tulsa's Port of Catoosa, OK Facilities Authority,
(Series 1995) Industrial Development Refunding
Revenue Bonds, 5.35% (Cargill, Inc.), 9/1/2006 Aa3 2,127,426
---------------------------------------------------
2,000,000 Tulsa, OK, UT GO Refunding Bonds, 5.15%, 6/1/2003 AA 2,078,780
--------------------------------------------------- ------------
Total 6,323,526
--------------------------------------------------- ------------
PENNSYLVANIA--4.1%
---------------------------------------------------
1,500,000 Allegheny County, PA HDA, Revenue Bonds, 6.875%
(Mercy Health Systems)/(MBIA INS)/(Original Issue
Yield: 7.00%), 10/1/1999 Aaa 1,566,255
---------------------------------------------------
1,000,000 Allegheny County, PA HDA, Revenue Refunding Bonds
(Series B), 5.50% (Presbyterian University
Hospital)/(MBIA INS)/(Original Issue Yield: 5.60%),
11/1/2002 Aaa 1,053,390
---------------------------------------------------
1,500,000 Pennsylvania Infrastructure Investment Authority,
Revenue Bonds, 6.15% (Pennvest), 9/1/2001 AA 1,624,890
---------------------------------------------------
3,500,000 Pennsylvania Intergovernmental Coop Authority,
Special Tax Revenue Bonds, 5.45% (FGIC INS)/
(Original Issue Yield: 5.55%), 6/15/2008 Aaa 3,556,105
---------------------------------------------------
1,475,000 Washington County, PA Hospital Authority, Hospital
Revenue Refunding Bonds, 5.50% (Shadyside Hospital,
PA)/(AMBAC INS)/(Original Issue Yield: 5.60%),
12/15/2001 Aaa 1,562,232
--------------------------------------------------- ------------
Total 9,362,872
--------------------------------------------------- ------------
SOUTH CAROLINA--2.4%
---------------------------------------------------
730,000 Columbia, SC Waterworks & Sewer System, Refunding
Revenue Bonds, 6.40% (United States Treasury COL)/
(Original Issue Yield: 6.45%), 2/1/2001 AA 799,620
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
SOUTH CAROLINA--CONTINUED
---------------------------------------------------
$4,270,000 Columbia, SC Waterworks & Sewer System, Revenue
Bonds, 6.40% (Original Issue Yield: 6.45%),
2/1/2001 AA $ 4,665,872
--------------------------------------------------- ------------
Total 5,465,492
--------------------------------------------------- ------------
TENNESSEE--1.9%
---------------------------------------------------
3,000,000 Memphis, TN Electric System, Revenue Refunding
Bonds, 5.625% (Original Issue Yield: 5.775%),
1/1/2002 AA 3,183,540
---------------------------------------------------
1,065,000 Metropolitan Government Nashville & Davidson
Counties, TN HEFA, Revenue Bonds (Series B), 5.85%
(Vanderbilt University)/(Original Issue Yield:
5.90%), 10/1/2001 AA 1,143,938
--------------------------------------------------- ------------
Total 4,327,478
--------------------------------------------------- ------------
TEXAS--20.1%
---------------------------------------------------
1,000,000 Canyon, TX Independent School District, UT GO,
8.20% (MBIA INS), 2/15/1996 Aaa 1,009,580
---------------------------------------------------
5,000,000 Central Texas Higher Education Authority, Revenue
Refunding Bonds (Series C), 4.85%, 12/1/2002 Aaa 4,994,400
---------------------------------------------------
2,000,000 Dallas County, TX, UT GO Bonds, 8.75%, 1/10/1996 Aaa 2,011,420
---------------------------------------------------
1,755,000 Dallas, TX Waterworks & Sewer System, Revenue
Refunding & Improvement Bonds, 6.60%, 4/1/2000 AA 1,845,242
---------------------------------------------------
1,000,000 Dallas, TX Waterworks & Sewer System, Revenue
Refunding and Improvement Bonds (Series A), 9.50%,
10/1/1998 AA 1,060,740
---------------------------------------------------
4,000,000 Garland, TX, LT GO Bonds, 5.80% (Original Issue
Yield: 5.90%), 8/15/2001 AA 4,295,320
---------------------------------------------------
4,500,000 Houston, TX Independent School District, LT GO
Bonds, 8.375% (PSFG GTD), 8/15/2000 Aaa 5,270,715
---------------------------------------------------
1,650,000 San Antonio, TX Electric & Gas, Revenue Bonds,
9.90%, 2/1/1998 AA 1,846,911
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
TEXAS--CONTINUED
---------------------------------------------------
$2,000,000 San Antonio, TX Electric & Gas, Revenue Refunding
Bonds (Series A), 7.00%, 2/1/1999 AA $ 2,167,800
---------------------------------------------------
2,500,000 San Antonio, TX Water Authority, Revenue Refunding
Bonds, 6.00% (FGIC INS)/(Original Issue Yield:
6.15%), 5/15/2001 Aaa 2,695,300
---------------------------------------------------
1,475,000 San Antonio, TX, UT GO General Improvement Bonds,
8.625%, 8/1/2000 AA 1,742,963
---------------------------------------------------
6,370,000 Socorro, TX Independent School District, UT GO
Refunding Bonds (Series A), 6.25% (PSFG GTD)/
(Original Issue Yield: 6.30%), 8/15/2001 Aaa 6,933,554
---------------------------------------------------
3,000,000 Texas State Public Property Finance Corp., Revenue
Refunding Bonds, 5.10% (Mental Health &
Retardation)/(CGIC INS), 9/1/2003 Aaa 3,063,300
---------------------------------------------------
6,000,000 Texas Water Development Board, State Revolving Fund
Sr. Lien Revenue Bonds, 5.80% (Original Issue
Yield: 5.90%), 7/15/2002 AA 6,451,080
--------------------------------------------------- ------------
Total 45,388,325
--------------------------------------------------- ------------
UTAH--1.0%
---------------------------------------------------
2,000,000 Intermountain Power Agency, UT, Power Supply
Revenue Refunding Bonds (Series B), 7.20%, 7/1/1999 AA 2,179,140
--------------------------------------------------- ------------
VIRGINIA--2.8%
---------------------------------------------------
2,025,000 Newport News, VA, UT GO Refunding Improvement Bonds
(Series B), 5.40% (Original Issue Yield: 5.50%),
7/1/2002 AA- 2,100,654
---------------------------------------------------
1,995,000 Virginia Beach, VA, UT GO Bonds (Series A), 6.30%,
3/1/2000 AA 2,152,824
---------------------------------------------------
1,995,000 Virginia Beach, VA, UT GO Bonds (Series A), 6.30%,
3/1/2001 AA 2,176,246
--------------------------------------------------- ------------
Total 6,429,724
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
WASHINGTON--3.4%
---------------------------------------------------
$1,020,000 Seattle, WA, LT GO Refunding Bonds, 6.00% (Original
Issue Yield: 6.10%), 3/1/2002 AA+ $ 1,106,833
---------------------------------------------------
1,500,000 Tacoma, WA Sewer Authority, Revenue Refunding Bonds
(Series B), 5.70% (FGIC INS)/(Original Issue Yield:
5.85%), 12/1/2005 Aaa 1,606,860
---------------------------------------------------
2,570,000 Washington State, UT GO (Series A), 6.60%, 2/1/2002 AA 2,861,387
---------------------------------------------------
2,000,000 Washington State, UT GO Motor Vehicle Fuel Tax
Refunding Bonds, 5.60% (Original Issue Yield:
5.70%), 9/1/2001 AA 2,123,280
--------------------------------------------------- ------------
Total 7,698,360
--------------------------------------------------- ------------
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $208,501,611) 221,294,594
--------------------------------------------------- ------------
SHORT-TERM MUNICIPAL SECURITIES--0.7%
- ------------------------------------------------------------------
TEXAS--0.7%
---------------------------------------------------
1,700,000 Harris County, TX HFDC Daily VRDNs (St. Luke's
Episcopal Hospital) A-1+ 1,700,000
--------------------------------------------------- ------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(AT AMORTIZED COST) 1,700,000
--------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $210,201,611)(a) $222,994,594
--------------------------------------------------- ------------
</TABLE>
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
(a) The cost of investments for federal tax purposes amounts to $210,201,611.
The net unrealized appreciation of investments on a federal tax basis
amounts to $12,792,983 which is comprised of $12,799,759 appreciation and
$6,776 depreciation at November 30, 1995.
Note: The categories of investments are shown as a percentage of net assets
($226,301,013) at November 30, 1995.
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
CGIC -- Capital Guaranty Insurance Corporation
COL -- Collateralized
FGIC -- Financial Guaranty Insurance Company
GO -- General Obligation
GTD -- Guaranty
HDA -- Hospital Development Authority
HEFA -- Health and Education Facilities Authority
HFDC -- Health Facility Development Corporation
IDA -- Industrial Development Authority
INS -- Insured
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
PCA -- Pollution Control Authority
PCR -- Pollution Control Revenue
PRF -- Prerefunded
PSFG -- Permanent School Fund Guarantee
UT -- Unlimited Tax
VRDNs -- Variable Rate Demand Notes
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost
$210,201,611) $222,994,594
- -------------------------------------------------------------------------------
Income receivable 4,255,285
- -------------------------------------------------------------------------------
Receivable for shares sold 107,724
- ------------------------------------------------------------------------------- ------------
Total assets 227,357,603
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Income distribution payable $945,120
- --------------------------------------------------------------------
Payable to Bank 29,563
- --------------------------------------------------------------------
Accrued expenses 81,907
- -------------------------------------------------------------------- --------
Total liabilities 1,056,590
- ------------------------------------------------------------------------------- ------------
NET ASSETS for 21,242,893 shares outstanding $226,301,013
- ------------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital $226,941,767
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 12,792,983
- -------------------------------------------------------------------------------
Accumulated net realized loss on investments (13,433,737)
- ------------------------------------------------------------------------------- ------------
Total Net Assets $226,301,013
- ------------------------------------------------------------------------------- ------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------
$226,301,013 / 21,242,893 shares outstanding $10.65
- ------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------------------------------------------
Interest $6,454,083
- -----------------------------------------------------------------------------------
EXPENSES:
- -----------------------------------------------------------------------------------
Investment advisory fee $454,780
- -----------------------------------------------------------------------
Administrative personnel and services fee 86,067
- -----------------------------------------------------------------------
Custodian fees 18,951
- -----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 20,465
- -----------------------------------------------------------------------
Directors'/Trustees' fees 4,941
- -----------------------------------------------------------------------
Auditing fees 9,333
- -----------------------------------------------------------------------
Legal fees 2,013
- -----------------------------------------------------------------------
Portfolio accounting fees 35,132
- -----------------------------------------------------------------------
Shareholder services fee 284,237
- -----------------------------------------------------------------------
Share registration costs 7,137
- -----------------------------------------------------------------------
Printing and postage 9,150
- -----------------------------------------------------------------------
Insurance premiums 4,575
- -----------------------------------------------------------------------
Taxes 4,758
- -----------------------------------------------------------------------
Miscellaneous 1,647
- ----------------------------------------------------------------------- --------
Total expenses 943,186
- -----------------------------------------------------------------------
Waivers --
- -----------------------------------------------------------------------
Waiver of investment advisory fee $ (63,558)
- -----------------------------------------------------------
Waiver of shareholder services fee (226,131)
- ----------------------------------------------------------- ---------
Total waivers (289,689)
- ----------------------------------------------------------------------- --------
Net expenses 653,497
- ----------------------------------------------------------------------------------- ----------
Net investment income 5,800,586
- ----------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -----------------------------------------------------------------------------------
Net realized gain on investments 8,590
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 2,312,136
- ----------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 2,320,726
- ----------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $8,121,312
- ----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED
1995 MAY 31, 1995
------------ -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 5,800,586 $ 13,563,390
- -------------------------------------------------------------
Net realized gain (loss) on investments ($8,590 net gain and
$2,484,394 net loss, respectively, as computed for federal
tax purposes) 8,590 (5,402,939)
- -------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 2,312,136 4,350,977
- ------------------------------------------------------------- ------------ --------------
Change in net assets resulting from operations 8,121,312 12,511,428
- ------------------------------------------------------------- ------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------
Distributions from net investment income
- -------------------------------------------------------------
Institutional Shares (5,800,586) (13,516,478)
- -------------------------------------------------------------
Institutional Service Shares 0 (46,912)
- ------------------------------------------------------------- ------------ --------------
Change in net assets resulting from distributions to
shareholders (5,800,586) (13,563,390)
- ------------------------------------------------------------- ------------ --------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------
Proceeds from sale of shares 40,842,589 67,745,760
- -------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of distributions declared 727,559 2,440,705
- -------------------------------------------------------------
Cost of shares redeemed (46,874,547) (144,228,224)
- ------------------------------------------------------------- ------------ --------------
Change in net assets resulting from share transactions (5,304,399) (74,041,759)
- ------------------------------------------------------------- ------------ --------------
Change in net assets (2,983,673) (75,093,721)
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 229,284,686 304,378,407
- ------------------------------------------------------------- ------------ --------------
End of period $226,301,013 $ 229,284,686
- ------------------------------------------------------------- ------------ -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
FINANCIAL HIGHLIGHTS*
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED MAY 31,
------------ --------------------------------------------------------------------------------------
1995 1995 1994 1993 1992 1991 1990 1989 1988 1987
------------ ------ ------ ------ ------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $10.55 $10.52 $10.74 $10.31 $10.09 $ 9.84 $ 9.81 $ 9.81 $ 9.83$ 9.97
- --------------------------
INCOME FROM INVESTMENT
OPERATIONS
- --------------------------
Net investment income 0.27 0.54 0.52 0.56 0.59 0.63 0.64 0.64 0.62 0.58
- --------------------------
Net realized and
unrealized gain (loss)
on investments 0.10 0.03 (0.22) 0.43 0.22 0.25 0.03 -- (0.02)(0.14)
- -------------------------- -------- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 0.37 0.57 0.30 0.99 0.81 0.88 0.67 0.64 0.60 0.44
- --------------------------
LESS DISTRIBUTIONS
- --------------------------
Distributions from net
investment income (0.27) (0.54) (0.52) (0.56) (0.59) (0.63) (0.64) (0.64) (0.62)(0.58)
- -------------------------- -------- ----- ----- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF
PERIOD $10.65 $10.55 $10.52 $10.74 $10.31 $10.09 $ 9.84 $ 9.81 $ 9.81$ 9.83
- -------------------------- -------- ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL RETURN(A) 3.55% 5.67% 2.79% 9.80% 8.19% 9.22% 7.02% 6.77% 6.34% 4.25%
- --------------------------
RATIOS TO AVERAGE NET
ASSETS
- --------------------------
Expenses 0.57%** 0.59% 0.61% 0.48% 0.47% 0.49% 0.50% 0.48% 0.49% 0.47%
- --------------------------
Net investment income 5.10%** 5.23% 4.82% 5.27% 5.73% 6.32% 6.49% 6.56% 6.25% 5.63%
- --------------------------
Expense waiver/
reimbursement(b) 0.25%** -- 0.01% 0.14% 0.22% 0.30% 0.38% 0.39% 0.31% 0.27%
- --------------------------
SUPPLEMENTAL DATA
- --------------------------
Net assets, end of
period (000 omitted) $226,301 $229,285 $302,663 $263,283 $173,702 $116,577 $95,738 $82,211$91,195$120,162
- --------------------------
Portfolio turnover 8% 11% 7% 3% 9% 43% 14% 25% 119% 81%
- --------------------------
</TABLE>
* During the period from September 6, 1993, to December 21, 1994, the Fund
offered two classes of shares, Institutional Shares and Institutional Service
Shares. As of December 21, 1994, Institutional Service Shares ceased
operations and the class designation for Institutional Shares was eliminated.
The table above does not reflect Institutional Service Shares.
** Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES*
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
---------------------
1995(a) 1994(b)
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.52 $11.00
- ------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------
Net investment income 0.28 0.36
- ------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.44) (0.48)
- ------------------------------------------------------------------ ------- -------
Total from investment operations (0.16) (0.12)
- ------------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------
Distributions from net investment income (0.28) (0.36)
- ------------------------------------------------------------------ ------- -------
NET ASSET VALUE, END OF PERIOD $10.08 $10.52
- ------------------------------------------------------------------ ------- -------
TOTAL RETURN(c) (1.53%) (1.10%)
- ------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------
Expenses 0.84%** 0.89%**
- ------------------------------------------------------------------
Net investment income 4.88%** 4.66%**
- ------------------------------------------------------------------
Expense waiver/reimbursement(d) 0.14%** 0.14%**
- ------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------
Net assets, end of period (000 omitted) $0 $1,715
- ------------------------------------------------------------------
Portfolio turnover 11% 7%
- ------------------------------------------------------------------
</TABLE>
* As of December 21, 1994, Institutional Service Shares were no longer offered
and ceased to exist. Prior to that date, the Fund had offered two classes of
shares, known as Institutional Shares and Institutional Service Shares.
** Computed on an annualized basis.
(a) Reflects operations for the period from June 1, 1994 to December 21, 1994
(date Institutional Service Shares ceased operations.)
(b) Reflects operations for the period from September 6, 1993 (date of initial
public offering) to May 31, 1994.
(c) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(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)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Intermediate Municipal Trust (the "Trust") is registered under the
Investment Company Act of 1940, (the "Act"), as an open-end, management
investment company. The Trust consists of two non-diversified portfolios and one
diversified portfolio. The financial statements included herein are only those
of Federated Intermediate Municipal Trust (the "Fund"), a diversified portfolio.
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
Effective December 19, 1994, the Board of Trustees ("Trustees") changed the name
of the Fund from Intermediate Municipal Trust to Federated Intermediate
Municipal Trust.
(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--Short-term securities with remaining maturities of
sixty days or less at the time of purchase may be valued at amortized cost,
which approximates fair market value. All other securities are valued at
prices provided by an independent pricing service.
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 Fund'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 May 31, 1995, the Fund, for federal tax purposes, had a capital loss
carryforward of $7,088,018, which will reduce the Fund'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
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
shareholders which would otherwise be necessary to relieve the Fund of any
liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire as follows:
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
--------------- -----------------
<S> <C>
1996 $ 3,974,606
1997 $ 215,810
1998 $ 170,468
2001 $ 242,740
2003 $ 2,484,394
</TABLE>
Additionally, net capital losses of $3,679,399 attributable to security
transactions incurred after October 31, 1994 are treated as arising on the
first day of the Fund's next taxable year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund 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.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED NOVEMBER
30, 1995 YEAR ENDED MAY 31, 1995*
---------------------------- ----------------------------
SHARES DOLLARS SHARES DOLLARS
- ----------------------------------------------- ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 3,869,028 $ 40,842,589 6,524,563 $ 67,387,240
- -----------------------------------------------
Shares issued to shareholders in payment of
distributions declared 68,968 727,559 233,106 2,407,168
- -----------------------------------------------
Shares redeemed (4,437,888) (46,874,547) (13,796,581) (142,201,578)
- ----------------------------------------------- ---------- ------------ ----------- -------------
Net change resulting from Institutional
Shares transactions (499,892) $ (5,304,399) (7,038,912) $ (72,407,170)
- ----------------------------------------------- ---------- ------------ ----------- -------------
</TABLE>
* Until December 21, 1994, the Fund offered two classes of shares,
Institutional Shares and Institutional Service Shares. As of December 21,
1994, Institutional Service Shares ceased operations and the class
designation for Institutional Shares was eliminated.
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED NOVEMBER YEAR ENDED MAY 31, 1995**
30, 1995
-------------------------- -----------------------------
INSTITUTIONAL SERVICE SHARES SHARES DOLLARS SHARES DOLLARS
- ---------------------------------------------- ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold -- $ -- 34,479 $ 358,520
- ----------------------------------------------
Shares issued to shareholders in payment of
distributions declared -- -- 3,242 33,537
- ----------------------------------------------
Shares redeemed -- -- (200,816) (2,026,646)
- ---------------------------------------------- ---------- ------------ ----------- -------------
Net change resulting from Institutional
Service Shares transactions -- -- (163,095) (1,634,589)
- ---------------------------------------------- ---------- ------------ ----------- -------------
Net change resulting from Fund Share
transactions -- $ -- (7,202,007) $ (74,041,759)
- ---------------------------------------------- ---------- ------------ ----------- -------------
</TABLE>
** For the period from June 1, 1994 to December 21, 1994 (date Institutional
Service Shares ceased operations.)
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser,
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .40 of 1% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive any portion of its fee. The Adviser can modify or
terminate this voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services, under the Administrative
Services Agreement, provides the Fund with administrative personnel and
services. This fee is based on the level of average aggregate daily net assets
of all funds advised by subsidiaries of Federated Investors for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to .25 of
1% of average daily net assets of the Trust for the period. This fee is to
obtain certain services for shareholders and to maintain shareholder accounts.
FSS may voluntarily choose to waive any portion of its fee. FSS can modify or
terminate this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated Services
Company ("FServ") serves as transfer and dividend disbursing agent for the Fund.
The fee paid to FServ is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also maintains the Trust's accounting records
for which it receives a fee. The fee is based on the level of the Trust's
average daily net assets for the period, plus out-of-pocket expenses.
FEDERATED INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
INTERFUND TRANSACTIONS--During the period ended November 30, 1995, the Fund
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common
Directors/Trustees, and/or common Officers. These purchase and sale transactions
were made at current market value pursuant to Rule 17a-7 under the Act amounting
to $53,400,000 and $51,700,000, respectively.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1995, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
Purchases $15,464,308
- ------------------------------------------------------------------------------- -----------
Sales $20,982,500
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- -----------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. Edward C. Gonzales
Glen R. Johnson Executive Vice President
Peter E. Madden John W. McGonigle
Gregor F. Meyer Executive Vice President and
John E. Murray, Jr. Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
David M. Taylor
Treasurer
S. Elliott Cohan
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.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
- --------------------------------------------------------------------------------
FEDERATED
- --------------------------------------------------------------------------------
OHIO
- --------------------------------------------------------------------------------
INTERMEDIATE
- --------------------------------------------------------------------------------
MUNICIPAL TRUST
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
NOVEMBER 30, 1995
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
Cusip 458810405 LOGO
007148 (1/96)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Ohio Intermediate Municipal Trust (formerly, Ohio Intermediate Municipal Trust)
for the six-month period ended November 30, 1995. The Report begins with an
investment review, which is a commentary on the municipal market from the fund's
portfolio manager. Following the investment review, you will find the fund's
portfolio of investments and its financial statements.
Federated Ohio Intermediate Municipal Trust pursues monthly income that is free
from federal income tax and Ohio personal income tax by investing in a portfolio
of intermediate-term securities issued by Ohio municipalities.*
Over the six-month reporting period ended November 30, 1995, the fund achieved a
total return of 4.32%.** Dividends paid to shareholders totaled $0.24 per share.
The fund's share price increased by $0.18 from the first day of the period to
the last day of the period. Total assets stood at $7.3 million at the period's
end.
Thank you for your confidence in the tax-free earning power of Federated Ohio
Intermediate Municipal Trust. We will continue to keep you up-to-date on the
fund's performance, and we welcome your questions, comments, or suggestions.
Sincerely,
/s/ Glen R. Johnson
Glen R. Johnson
President
January 15, 1996
* Income may be subject to the federal alternative minimum tax.
** 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.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The U.S. economy has begun to display many of the characteristics inherent in
the late stages of a business cycle. During the late summer of 1995, several
economic statistics began to indicate that the U.S. economy was slowing to a
greater extent than was acceptable. As a result, The Federal Reserve Board (the
"Fed") felt it was necessary to cut the federal funds target rate to 5.75% in
July of 1995. The soft landing scenario which the Fed attempted to orchestrate
appears to have taken hold in the second half of 1995. Interest rates
consistently trended lower as the economy maintained a low inflation, moderate
growth path. The fixed income markets have discounted much of the good news that
is expected concerning the budget negotiations in Washington, D.C., and the
possibility of further cuts in short-term interest rates by the Fed. The future
direction of interest rates will depend to a considerable degree on the outcome
of these events. Currently, economic fundamentals have weakened with most
sectors of the U.S. economy barely growing. Slow income growth and excessive
debt levels are expected to limit consumer spending. However, expected interest
rate reductions in the U.S. and Europe should lead to stronger growth by the
second half of 1996.
As of November 30, 1995, the nation's capacity utilization rate remained firm at
83.1% while unemployment continued to remain in the full employment range,
declining to 5.5%. Inflation stayed surprisingly benign during this period as
the core Producer Price Index* showed no increase for the entire month of
October 1995. There is considerable economic evidence to suggest that inflation
may be near its cyclical trough. The municipal yield curve steepened over the
six-month period ended November 30, 1995, while the treasury yield curve
flattened during the same period. The basis point spread between the two-year
and twenty-five year maturities was 68 basis points and 168 basis points for the
treasury and municipal yield curves, respectively. The municipal yield curve has
remained steeper than the treasury yield curve due to the segmentation of demand
along the curve. The bulk of new municipal bond issuance in the market is
concentrated in the long end of the curve (20 years and longer) while demand has
been concentrated on the shorter end of the municipal yield curve (10 years and
under).
During the six-month period ended November 30, 1995, yields in the municipal
bond market, as measured by the Bond Buyer Index**, rose to a high of 6.44% on
August 17, 1995. Municipal bond yields then began to decline from their August
high as a result of market supply and demand technicals and signs of weakness in
the U.S. economy. The Bond Buyer Revenue Index* ended the six-month period at
5.78% on November 30, 1995. The municipal bond market continued to lag the rally
in the treasury market as a result of the concern over the effect of a flat tax
on municipal bonds, the low yields available in the marketplace, investors'
memory of the difficult bond market in 1994, and the continuing saga of the
Orange County default in the press. The U.S. Treasury bond market also reached
its high for market yields in August, 1995. The long (30 year) treasury reached
a high of 6.99% on August 11, 1995, and finished the six-month period at 6.13%
on November 30, 1995.
* The Producer Price Index is a measure of change in wholesale prices, as
released monthly by the U.S. Bureau of Labor Statistics.
** The Bond Buyer Index measures municipal bond yields.
- --------------------------------------------------------------------------------
From June 1, 1995, to November 30, 1995, net assets of the fund increased from
$6.6 million to $7.3 million. Reflecting market activity, the net asset value of
the fund increased from $9.79 on June 1, 1995, to $9.97 on November 30, 1995. On
that date, the credit breakdown of the holdings of the fund as rated by Standard
& Poor's Ratings Group ("S&P") was: 43.7% in "AAA" issues; 25.7% in "AA" issues;
23.6% in "A" issues; 0% in "BBB" issues; 3.0% in "non-rated" issues and 4.0% in
municipal cash equivalents within the highest rating category.
Federated Ohio Intermediate Municipal Trust was established in December 1993 to
provide investors the ability to invest in a non-diversified portfolio of Ohio
municipal issues which are rated "A" or better by a nationally recognized
statistical rating agency. The investment objective of the fund is to provide
current income which is exempt from the federal regular income tax and the
personal income taxes of the State of Ohio and Ohio municipalities.**
The fund's management is currently maintaining a neutral average maturity target
as a result of our outlook on interest rates and the economy. There remains
enough uncertainty in the available economic data and the municipal yield curve
is sufficiently steep to make the yield give-up from initiating a defensive
position unwarranted. The municipal bond market has significantly underperformed
the treasury market this year. This is reflected by a municipal/treasury yield
ratio, for the long end of the yield curve, well in excess of 85%. This
underperformance can be attributed to several factors, the most important of
which being the possibility of a significant change in the way municipal bonds
are treated for tax purposes relative to other investment alternatives (i.e.,
treasuries and corporate bonds). As a result, for much of calendar year 1995
there has been limited retail participation in the municipal bond market leaving
cash flows into municipal bond funds negative to flat.
Management is currently stressing credit quality. Credit spreads are narrow by
historical standards reflecting the limited amount of new municipal bond
issuance relative to prior years and the low level of absolute yields available
which encourages investors to reach for yield and the penetration of the
municipal bond insurers (approximately 40% of the new issue market). At this
juncture trading down in credit quality does not seem prudent. The average
credit quality of the portfolio is "AA" with approximately 69% of its assets
invested in securities rated AA or better by S&P. The portfolio's income
objective involved booking attractive income streams for distribution to
shareholders. Management continues to focus on "essential service" revenue bonds
of stable established projects which generate strong cash flow. Examples of such
projects would include electric power authorities and water and sewer utilities.
Management is currently reducing exposure to the healthcare sector which has
become fairly valued.
** Income may be subject to the federal alternative minimum tax.
- --------------------------------------------------------------------------------
Management has avoided debt backed by municipal leases such as certificates of
participation ("COPs"). These debt instruments are subject to annual
appropriation and present risks which are not present in bonds backed by a
general obligation, full faith and credit pledge. Insured municipal bonds have
also been purchased in the fund. However, the use of bond insurance is limited
to monoline bond insurers who indemnify municipal obligations only. General
obligation issues are also being stressed as the economies strength translates
into improved revenues and larger reserves at the state and local government
level. The emphasis has been on issues that are considered upgrade candidates.
Municipal securities subject to the alternative minimum tax ("AMT") have been
included in the portfolio due to the favorable yield spreads available from
those issues. An additional 20 to 30 basis points can be gained currently as a
result of increased issuance of AMT securities in the municipal marketplace. The
latest Internal Revenue Service figures for 1993 report only 0.28% of the total
returns filed being subject to the AMT. Management continues to avoid market
discount securities, priced beyond the de minimus rule, so as to avoid
distributing ordinary income to shareholders.
Municipal bonds purchased at a market discount are treated differently for tax
purposes as a result of the Omnibus Budget Reconciliation Act of 1993.
Tax-exempt obligations purchased after April 30, 1993 must recognize ordinary
interest income for tax purposes from any gain realized on the sale of a market
discount bond, to the extent of the accrued market discount. The entire amount
of accrued market discount calculated is not recognized as ordinary interest
income until there is a disposition of the bond at a gain. A de minimus
exemption is allowed if the market discount is less than one quarter of one
percent of the stated redemption price at maturity multiplied by the number of
complete years to maturity after acquisition of the bond.
When determining the credit quality of issues for potential investment by the
fund, the investment adviser focuses upon a variety of economic and financial
parameters. For general obligation issues, analysis is directed towards
demographic data, income distribution, property value levels and growth,
provision of governmental services, and debt authorization. For revenue issues,
the investment adviser also examines issuer cash flow generation, sensitivity to
product/service pricing, competition and industry/sector make-up, debt
structure, debt service coverage, financial flexibility, and contingent
liabilities.
Securities bought by the fund during the past twelve months consisted largely
of: public and private colleges and universities-both insured and uninsured;
water & sewer issues; single-family mortgage revenue issues; and state and local
general obligation issues. The average purchase yield for new investments by the
fund was 5.49%.
For the six-month period ended November 30, 1995, an investor in the fund
experienced a total return of 4.32%.
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- ------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--98.0%
- -------------------------------------------------------------------------
OHIO--95.2%
----------------------------------------------------------
$200,000 Akron, OH, Various Purpose LT GO, 5.50% (MBIA INS),
12/1/2005 Aaa $ 211,752
----------------------------------------------------------
200,000 Cleveland, OH Airport System, Revenue Bonds (Series A),
5.40% (FGIC INS)/(Original Issue Yield: 5.55%), 1/1/2004 Aaa 208,294
----------------------------------------------------------
250,000 Cleveland, OH, LT GO Bonds, 6.00% (MBIA INS)/(Original
Issue Yield: 6.10%), 11/15/2004 Aaa 274,972
----------------------------------------------------------
500,000 Columbus, OH Municipal Airport Authority, Revenue Bonds,
5.55% (Port Columbus Intl Airport)/(MBIA INS)/(Original
Issue Yield: 5.65%), 1/1/2004 Aaa 525,205
----------------------------------------------------------
100,000 Columbus, OH Water System, Revenue Refunding Bonds,
6.375%, 11/1/2010 AA- 107,312
----------------------------------------------------------
150,000 Columbus, OH, LT GO Bonds, 5.50% (Original Issue Yield:
5.55%), 5/15/2004 AA+ 159,855
----------------------------------------------------------
400,000 Cuyahoga County, OH Hospital Authority, Revenue Refunding
Bonds, 5.00% (Fairview General Hospital)/(Original Issue
Yield: 5.10%), 8/15/2004 A1 396,436
----------------------------------------------------------
150,000 Findlay, OH Waterworks System, Refunding Revenue Bonds
(Series 1995), 4.55% (MBIA INS), 11/1/2000 Aaa 152,140
----------------------------------------------------------
250,000 Franklin County, OH Mortgage Revenue, Mortgage Revenue
Bonds, 5.875% (Seton Square North, OH)/(FHA GTD)/
(Original Issue Yield: 6.00%), 10/1/2004 Aa 263,260
----------------------------------------------------------
500,000 Hamilton County, OH Hospital Facilities Authority,
Refunding Revenue Bonds (Series 1992), 6.80% (Episcopal
Retirement Homes, Inc.)/(Fifth Third Bank, Cincinnati
LOC), 1/1/2008 Aa2 546,275
----------------------------------------------------------
490,000 Hamilton County, OH Hospital Facilities Authority, Revenue
Refunding Bonds (Series A), 5.50% (Bethesda Hospital, OH)/
(Original Issue Yield: 5.65%), 1/1/2000 A1 512,153
----------------------------------------------------------
</TABLE>
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- ------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
OHIO--CONTINUED
----------------------------------------------------------
$400,000 Hamilton County, OH Sewer System, Improvement & Revenue
Refunding Bonds (Series A), 4.55% (FGIC INS), 12/1/2000 Aaa $ 405,808
----------------------------------------------------------
100,000 Kings Local School District, OH, UT GO Bonds, 6.25%,
12/1/2001 NR 109,171
----------------------------------------------------------
100,000 Kings Local School District, OH, UT GO Bonds, 6.50%,
12/1/2003 NR 111,962
----------------------------------------------------------
150,000 Miami Valley Regional Transit Authority, OH, LT GO Bonds,
5.40%, 12/1/2004 A 156,628
----------------------------------------------------------
150,000 North Canton OH City School District, LT GO Energy
Conservation Bonds, 5.50%, 12/1/2003 A 157,214
----------------------------------------------------------
300,000 Ohio Enterprise Bond Fund, (Series 1995-3) State Economic
Development Revenue Bonds, 5.60% (Smith Steelite),
12/1/2003 A- 303,663
----------------------------------------------------------
150,000 Ohio HFA, Residential Mortgage Revenue Bonds (Series A-1),
5.40% (GNMA COL), 3/1/2004 AAA 153,293
----------------------------------------------------------
605,000 Ohio HFA, Residential Mortgage Revenue Bonds (Series B-1),
5.80% (GNMA COL), 9/1/2005 AAA 628,686
----------------------------------------------------------
250,000 Ohio State, UT GO Bonds, 5.60% (Original Issue Yield:
5.65%), 8/1/2002 AA 267,683
----------------------------------------------------------
250,000 Olentangy, OH Local School District, UT GO Bonds (Series
A), 5.60% (Original Issue Yield: 5.70%), 12/1/2004 AA- 265,890
----------------------------------------------------------
195,000 Stow, OH, LT GO Safety Center Construction Bonds, 7.75%,
12/1/2003 A1 234,218
----------------------------------------------------------
260,000 Summit County, OH, LT Various Purpose GO Bonds, 5.75%
(AMBAC INS), 12/1/2005 Aaa 279,976
----------------------------------------------------------
200,000 Toledo, OH Sewer System, Revenue Bonds, 5.75% (AMBAC
INS)/(Original Issue Yield: 5.85%), 11/15/2005 Aaa 215,636
----------------------------------------------------------
</TABLE>
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- ------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
OHIO--CONTINUED
----------------------------------------------------------
$300,000 University of Cincinnati, OH, (Series U) General Receipts
Revenue Bonds, 5.00%, 6/1/2006 AA- $ 302,070
---------------------------------------------------------- -----------
Total 6,949,552
---------------------------------------------------------- -----------
VIRGIN ISLANDS--2.8%
----------------------------------------------------------
200,000 Virgin Islands HFA, SFM Revenue Refunding Bonds (Series
A), 5.70% (GNMA COL), 3/1/2004 AAA 205,624
---------------------------------------------------------- -----------
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $6,871,068) 7,155,176
---------------------------------------------------------- -----------
SHORT-TERM MUNICIPAL SECURITIES--4.1%
- -------------------------------------------------------------------------
PUERTO RICO--4.1%
----------------------------------------------------------
300,000 Puerto Rico Government Development Bank Weekly VRDNs
(Credit Suisse, Zurich LOC) VMIG-1 300,000
---------------------------------------------------------- -----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(AT AMORTIZED COST) 300,000
---------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $7,171,068)(A) $ 7,455,176
---------------------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $7,171,068. The
net unrealized appreciation of investments on a federal tax basis amounts to
$284,108 which is comprised of $284,880 appreciation and $772 depreciation
at November 30, 1995.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
Note: The categories of investments are shown as a percentage of net assets
($7,304,224) at November 30, 1995.
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
COL -- Collateralized
FGIC -- Financial Guaranty Insurance Company
FHA -- Federal Housing Administration
GNMA -- Government National Mortgage Association
GO -- General Obligation
GTD -- Guaranty
HFA -- Housing Finance Authority
INS -- Insured
LOC -- Letter of Credit
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
SFM -- Single Family Mortgage
UT -- Unlimited Tax
VRDNs -- Variable Rate Demand Notes
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost
$7,171,068) $7,455,176
- ---------------------------------------------------------------------------------
Cash 13,127
- ---------------------------------------------------------------------------------
Income receivable 128,549
- ---------------------------------------------------------------------------------
Prepaid expenses 22,740
- ---------------------------------------------------------------------------------
Deferred expenses 13,001
- --------------------------------------------------------------------------------- ----------
Total assets 7,632,593
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $301,667
- ----------------------------------------------------------------------
Income distribution payable 26,702
- ---------------------------------------------------------------------- --------
Total liabilities 328,369
- --------------------------------------------------------------------------------- ----------
NET ASSETS for 732,474 shares outstanding $7,304,224
- --------------------------------------------------------------------------------- ----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $7,213,937
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 284,108
- ---------------------------------------------------------------------------------
Accumulated net realized loss on investments (193,821)
- --------------------------------------------------------------------------------- ----------
Total Net Assets $7,304,224
- --------------------------------------------------------------------------------- ----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ---------------------------------------------------------------------------------
$7,304,224 / 732,474 shares outstanding $9.97
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------
Interest $177,753
- ----------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------
Investment advisory fee $ 16,863
- ----------------------------------------------------------------------------
Administrative personnel and services fee 62,500
- ----------------------------------------------------------------------------
Custodian fees 7,723
- ----------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 6,509
- ----------------------------------------------------------------------------
Directors'/Trustees' fees 1,464
- ----------------------------------------------------------------------------
Auditing fees 6,039
- ----------------------------------------------------------------------------
Legal fees 1,281
- ----------------------------------------------------------------------------
Portfolio accounting fees 20,911
- ----------------------------------------------------------------------------
Shareholder services fee 8,432
- ----------------------------------------------------------------------------
Share registration costs 8,784
- ----------------------------------------------------------------------------
Printing and postage 6,222
- ----------------------------------------------------------------------------
Insurance premiums 2,013
- ----------------------------------------------------------------------------
Taxes 183
- ----------------------------------------------------------------------------
Miscellaneous 5,307
- ---------------------------------------------------------------------------- --------
Total expenses 154,231
- ----------------------------------------------------------------------------
Waivers and reimbursements --
- ----------------------------------------------------------------------------
Waiver of investment advisory fee $ (16,863)
- ----------------------------------------------------------------
Waiver of shareholder services fee (6,745)
- ----------------------------------------------------------------
Reimbursement of other operating expenses (115,297)
- ---------------------------------------------------------------- ---------
Total waivers and reimbursements (138,905)
- ---------------------------------------------------------------------------- --------
Net expenses 15,326
- ---------------------------------------------------------------------------------------- --------
Net investment income 162,427
- ---------------------------------------------------------------------------------------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------------
Net realized gain on investments 59,207
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 74,732
- ---------------------------------------------------------------------------------------- --------
Net realized and unrealized gain on investments 133,939
- ---------------------------------------------------------------------------------------- --------
Change in net assets resulting from operations $296,366
- ---------------------------------------------------------------------------------------- --------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, 1995 MAY 31, 1995
----------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------
OPERATIONS--
- ------------------------------------------------------
Net investment income $ 162,427 $ 266,114
- ------------------------------------------------------
Net realized gain (loss) on investments ($59,207 net
gain and $179,603, net loss respectively, as
computed for federal tax purposes) 59,207 (196,543)
- ------------------------------------------------------
Net change in unrealized appreciation (depreciation) 74,732 376,266
----------
- ------------------------------------------------------ ---------------
Change in net assets resulting from operations 296,366 445,837
----------
- ------------------------------------------------------ ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ------------------------------------------------------
Distributions from net investment income (162,427) (266,114)
----------
- ------------------------------------------------------ ---------------
SHARE TRANSACTIONS--
- ------------------------------------------------------
Proceeds from sale of shares 3,796,999 8,891,447
- ------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 19,123 39,693
- ------------------------------------------------------
Cost of shares redeemed (3,252,927) (5,882,314)
----------
- ------------------------------------------------------ ---------------
Change in net assets resulting from share
transactions 563,195 3,048,826
----------
- ------------------------------------------------------ ---------------
Change in net assets 697,134 3,228,549
- ------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------
Beginning of period 6,607,090 3,378,541
----------
- ------------------------------------------------------ ---------------
End of period $ 7,304,224 $ 6,607,090
----------
- ------------------------------------------------------ ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED MAY 31,
NOVEMBER 30, ----------------------
1995 1995 1994(a)
------------ ------ -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.79 $9.53 $10.00
- --------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------
Net investment income 0.24 0.47 0.22
- --------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.18 0.26 (0.47)
- -------------------------------------------------------- -------- ----- ------
Total from investment operations 0.42 0.73 (0.25)
- -------------------------------------------------------- -------- ----- ------
LESS DISTRIBUTIONS
- --------------------------------------------------------
Distributions from net investment income (0.24) (0.47) (0.22)
- -------------------------------------------------------- -------- ----- ------
NET ASSET VALUE, END OF PERIOD $9.97 $9.79 $9.53
- -------------------------------------------------------- -------- ----- ------
TOTAL RETURN (b) 4.32% 7.98% (2.52%)
- --------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------
Expenses 0.45%* 0.45% 0.24%*
- --------------------------------------------------------
Net investment income 4.80%* 5.05% 4.69%*
- --------------------------------------------------------
Expense waiver/reimbursement 4.11%*(c) 4.80%(d) 3.07%*(c)
- --------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------
Net assets, end of period (000 omitted) $7,304 $6,607 $3,379
- --------------------------------------------------------
Portfolio turnover 31% 56% 48%
- --------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from December 2, 1993 (date of initial
public investment) to May 31, 1994.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) The Adviser waived $26,346 of the investment advisory fee and reimbursed
$115,674 of other expenses, which represent 0.50% and 2.20% of average net
assets, respectively, to comply with certain state expense limitations. The
remainder of the waiver/reimbursement was voluntary. This 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)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Intermediate Municipal Trust (the "Trust") is registered under the Investment
Company Act of 1940, (the "Act"), as an open-end management investment company.
The Trust consists of two non-diversified portfolios and one diversified
portfolio. The financial statements included herein are only those of Federated
Ohio Intermediate Municipal Trust (the "Fund"), a non-diversified portfolio. The
financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
Effective December 19, 1994, the Board of Trustees (the "Trustees") changed the
name of the Fund from Ohio Intermediate Municipal Trust to Federated Ohio
Intermediate Municipal Trust.
(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--Short-term securities with remaining maturities of
sixty days or less at the time of purchase may be valued at amortized cost,
which approximates fair market value. All other securities are valued at
prices provided by an independent pricing service.
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 Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its tax-exempt income.
Accordingly, no provisions for federal tax are necessary.
At May 31, 1995, the Fund for federal tax purposes had a capital loss
carryforward of $179,063 which will reduce the Fund'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 distributions to
shareholders which would otherwise be necessary to relieve the Fund of any
liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire as follows.
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
--------------- -----------------
<S> <C>
2003 $179,063
</TABLE>
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
Additionally, net capital losses of $73,965 attributable to security
transactions incurred after October 31, 1994, are treated as arising on the
first day of the Fund's next taxable year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund 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.
DEFERRED EXPENSES--The costs incurred by the Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering its shares have been deferred and are being
amortized using the straight-line method not to exceed a period of five
years from the Fund's commencement date.
CONCENTRATION OF CREDIT RISK--Since the Fund invests a substantial portion
of its assets in issuers located in one state, it will be more susceptible
to factors adversely affecting issuers of that state than would be a
comparable tax-exempt mutual fund that invests nationally. In order to
reduce the credit risk associated with such factors, at November 30, 1995,
58.6% of the securities in the portfolio of investments are backed by
letters of credit or bond insurance of various financial institutions and
financial guaranty assurance agencies. The value of investments insured by
or supported (backed) by a letter of credit for any one institution or
agency does not exceed 15.6% of total investments.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 1995 MAY 31, 1995
----------------- ------------
<S> <C> <C>
- ------------------------------------------------------
Shares sold 386,016 941,647
- ------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 1,943 4,237
- ------------------------------------------------------
Shares redeemed (330,529) (625,521)
- ------------------------------------------------------ ------------- --------
Net change resulting from share transactions 57,430 320,363
- ------------------------------------------------------ ------------- --------
</TABLE>
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser,
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .50 of 1% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee and reimburse certain operating
expenses of the Fund. The Adviser can modify or terminate this voluntary waiver
and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services, under the Administrative
Services Agreement, provides the Fund with administrative personnel and
services. This fee is based on the level of average aggregate daily net assets
of all funds advised by subsidiaries of Federated Investors for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of share.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholders Services ("FSS"), the Fund will pay FSS up to .25 of
1% of average daily net assets of the Fund for the period. The fee is to obtain
certain services for shareholders and to maintain shareholder accounts. FSS may
voluntarily choose to waive a portion of its fee. FSS can modify or terminate
this voluntary waiver at any time at its sole discretion.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund. The fee paid to FServ is based on the size, type, and number of
accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also maintains the Fund's accounting records
for which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $23,676 and start-up
administrative service expenses of $31,506 were borne initially by the Adviser.
The Fund has agreed to reimburse the Adviser for the organizational expenses and
start-up administrative expenses during the five year period following effective
date. For the period ended November 30, 1995, the Fund paid $0 pursuant to this
agreement.
INTERFUND TRANSACTIONS--During the period ended November 30, 1995, the Fund
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common
Directors/Trustees, and/or common Officers. These purchase and sale transactions
were made at current market value pursuant to Rule 17a-7 under the Act amounting
to $3,200,000 and $3,150,000 respectively.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, OHIO INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1995, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
Purchases $2,618,056
- -------------------------------------------------------------------------------- ----------
Sales $2,066,800
- -------------------------------------------------------------------------------- ----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. Edward C. Gonzales
Glen R. Johnson Executive Vice President
Peter E. Madden John W. McGonigle
Gregor F. Meyer Executive Vice President and Secretary
John E. Murray, Jr. Richard B. Fisher
Wesley W. Posvar Vice President
Marjorie P. Smuts David M. Taylor
Treasurer
S. Elliott Cohan
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.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
- --------------------------------------------------------------------------------
FEDERATED
- --------------------------------------------------------------------------------
PENNSYLVANIA
- --------------------------------------------------------------------------------
INTERMEDIATE
- --------------------------------------------------------------------------------
MUNICIPAL TRUST
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
NOVEMBER 30, 1995
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
Cusip 458810306
007147 (1/96)
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PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Pennsylvania Intermediate Municipal Trust (formerly, Pennsylvania Intermediate
Municipal Trust) for the six-month period ended November 30, 1995. The Report
begins with an investment review, which is a commentary on the municipal market
from the fund's portfolio manager. Following the investment review, you will
find the fund's portfolio of investments and its financial statements.
Federated Pennsylvania Intermediate Municipal Trust pursues monthly income that
is free from federal income tax and Pennsylvania personal income tax by
investing in a portfolio of intermediate-term securities issued by Pennsylvania
municipalities.*
Over the six-month reporting period ended November 30, 1995, the fund achieved a
total return of 4.50%.** Dividends paid to shareholders totaled $0.25 per share.
The fund's share price increased by $0.20 from the first day of the period to
the last day of the period. Total assets stood at $11.8 million at the period's
end.
Thank you for your confidence in the tax-free earning power of Federated
Pennsylvania Intermediate Municipal Trust. We will continue to keep you
up-to-date on the fund's performance, and we welcome your questions, comments,
or suggestions.
Sincerely,
/s/ Glen R. Johnson
Glen R. Johnson
President
January 15, 1996
* Income may be subject to the federal alternative minimum tax.
** 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.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The U.S. economy has begun to display many of the characteristics inherent in
the late stages of a business cycle. During the late summer of 1995, several
economic statistics began to indicate that the U.S. economy was slowing to a
greater extent than was acceptable. As a result, The Federal Reserve Board (the
"Fed") felt it was necessary to cut the federal funds target rate to 5.75% in
July of 1995. The soft landing scenario which the Fed attempted to orchestrate
appears to have taken hold in the second half of 1995. Interest rates
consistently trended lower as the economy maintained a low inflation, moderate
growth path. The fixed income markets have discounted much of the good news that
is expected concerning the budget negotiations in Washington, D.C., and the
possibility of further cuts in short-term interest rates by the Fed. The future
direction of interest rates will depend to a considerable degree on the outcome
of these events. Currently, economic fundamentals have weakened with most
sectors of the U.S. economy barely growing. Slow income growth and excessive
debt levels are expected to limit consumer spending. However, expected interest
rate reductions in the U.S. and Europe should lead to stronger growth by the
second half of 1996.
As of November 30, 1995, the nation's capacity utilization rate remained firm at
83.1% while unemployment continued to remain in the full employment range,
declining to 5.5%. Inflation stayed surprisingly benign during this period as
the core Producer Price Index* showed no increase for the entire month of
October 1995. There is considerable economic evidence to suggest that inflation
may be near its cyclical trough. The municipal yield curve steepened over the
six-month period ended November 30, 1995, while the treasury yield curve
flattened during the same period. The basis point spread between the two-year
and twenty-five year maturities was 68 basis points and 168 basis points for the
treasury and municipal yield curves, respectively. The municipal yield curve has
remained steeper than the treasury yield curve due to the segmentation of demand
along the curve. The bulk of new municipal bond issuance in the market is
concentrated in the long end of the curve (20 years and longer) while demand has
been concentrated on the shorter end of the municipal yield curve (10 years and
under).
During the six-month period ended November 30, 1995, yields in the municipal
bond market, as measured by the Bond Buyer Index**, rose to a high of 6.44% on
August 17, 1995. Municipal bond yields then began to decline from their August
high as a result of market supply and demand technicals and signs of weakness in
the U.S. economy. The Bond Buyer Revenue Index* ended the six-month period at
5.78% on November 30, 1995. The municipal bond market continued to lag the rally
in the treasury market as a result of the concern over the effect of a flat tax
on municipal bonds, the low yields available in the marketplace, investors'
memory of the difficult bond market in 1994, and the continuing saga of the
Orange County default in the press. The U.S. Treasury bond market also reached
its high for market yields in August, 1995. The long (30 year) treasury reached
a high of 6.99% on August 11, 1995, and finished the six-month period at 6.13%
on November 30, 1995.
* The Producer Price Index is a measure of change in wholesale prices, as
released monthly by the U.S. Bureau of Labor Statistics.
** The Bond Buyer Index measures municipal bond yields.
- --------------------------------------------------------------------------------
From June 1, 1995, to November 30, 1995, net assets of the fund increased from
$8.3 million to $11.8 million. Reflecting market activity, the net asset value
of the fund increased from $10.06 on June 1, 1995, to $10.26 on November 30,
1995. On that date, the credit breakdown of the holdings of the fund as rated by
Standard & Poor's Ratings Group ("S&P") was; 71.1% in "AAA" issues; 14.7% in
"AA" issues; 12.1% in "A" issues; 0% in "BBB" issues; 0% in "non-rated" issues
and 2.1% in municipal cash equivalents within the highest rating category.
Federated Pennsylvania Intermediate Municipal Trust was established in December
1993 to provide investors the ability to invest in a non-diversified portfolio
of Pennsylvania municipal issues which are rated "A" or better by a nationally
recognized statistical rating agency. The investment objective of the fund is to
provide current income which is exempt from the federal regular income tax and
the personal income taxes of the Commonwealth of Pennsylvania and Pennsylvania
municipalities.**
The fund's management is currently maintaining a neutral average maturity target
as a result of our outlook on interest rates and the economy. There remains
enough uncertainty in the available economic data and the municipal yield curve
is sufficiently steep to make the yield give-up from initiating a defensive
position unwarranted. The municipal bond market has significantly underperformed
the treasury market this year. This is reflected by a municipal / treasury yield
ratio, for the long end of the yield curve, well in excess of 85%. This
underperformance can be attributed to several factors, the most important of
which being the possibility of a significant change in the way municipal bonds
are treated for tax purposes relative to other investment alternatives, (i.e.,
treasuries and corporate bonds). As a result, for much of calendar year 1995
there has been limited retail participation in the municipal bond market leaving
cash flows into municipal bond funds negative to flat.
Management is currently stressing credit quality. Credit spreads are narrow by
historical standards reflecting the limited amount of new municipal bond
issuance relative to prior years and the low level of absolute yields available
which encourages investors to reach for yield and the penetration of the
municipal bond insurers (approximately 40% of the new issue market). At this
juncture trading down in credit quality does not seem prudent. The average
credit quality of the portfolio is "AA" with approximately 86% of its assets
invested in securities rated AA or better by S&P. The portfolio's income
objective involved booking attractive income streams for distribution to
shareholders. Management continues to focus on "essential service" revenue bonds
of stable established projects which generate strong cash flow. Examples of such
projects would include electric power authorities and water and sewer utilities.
Management is currently reducing exposure to the healthcare sector which has
become fairly valued.
** Income may be subject to the federal alternative minimum tax.
- --------------------------------------------------------------------------------
Management has avoided debt backed by municipal leases such as certificates of
participation ("COPs"). These debt instruments are subject to annual
appropriation and present risks which are not present in bonds backed by a
general obligation, full faith and credit pledge. Insured municipal bonds have
also been purchased in the fund. However, the use of bond insurance is limited
to monoline bond insurers who indemnify municipal obligations only. General
obligation issues are also being stressed as the economies strength translates
into improved revenues and larger reserves at the state and local government
level. The emphasis has been on issues that are considered upgrade candidates.
Municipal securities subject to the alternative minimum tax ("AMT") have been
included in the portfolio due to the favorable yield spreads available from
those issues. An additional 20 to 30 basis points can be gained currently as a
result of increased issuance of AMT securities in the municipal marketplace. The
latest Internal Revenue Service figures for 1993 report only 0.28% of the total
returns filed being subject to the AMT. Management continues to avoid market
discount securities, priced beyond the de minimus rule, so as to avoid
distributing ordinary income to shareholders.
Municipal bonds purchased at a market discount are treated differently for tax
purposes as a result of the Omnibus Budget Reconciliation Act of 1993.
Tax-exempt obligations purchased after April 30, 1993 must recognize ordinary
interest income for tax purposes from any gain realized on the sale of a market
discount bond, to the extent of the accrued market discount. The entire amount
of accrued market discount calculated is not recognized as ordinary interest
income until there is a disposition of the bond at a gain. A de minimus
exemption is allowed if the market discount is less than one quarter of one
percent of the stated redemption price at maturity multiplied by the number of
complete years to maturity after acquisition of the bond.
When determining the credit quality of issues for potential investment by the
fund, the investment adviser focuses upon a variety of economic and financial
parameters. For general obligation issues, analysis is directed towards
demographic data, income distribution, property value levels and growth,
provision of governmental services, and debt authorization. For revenue issues,
the investment adviser also examines issuer cash flow generation, sensitivity to
product/service pricing, competition and industry/sector make-up, debt
structure, debt service coverage, financial flexibility, and contingent
liabilities.
Securities bought by the fund during the past twelve months consisted largely
of: public and private colleges and universities-both insured and uninsured;
water & sewer issues; single-family mortgage revenue issues; and state and local
general obligation issues. The average purchase yield for new investments by the
fund was 5.56%.
For the six-month period ended November 30, 1995, an investor in the fund
experienced a total return of 4.50%.
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------------- -------- -----------
<C> <C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--11.0%
- -------------------------------------------------------------------------
$1,300,000 Puerto Rico Government Development Bank Weekly VRDNs
(Credit Suisse, Zurich LOC) VMIG-1$1,300,000
--------------------------------------------------------- -----------
INTERMEDIATE-TERM MUNICIPAL SECURITIES--97.2%
- -------------------------------------------------------------------------
PENNSYLVANIA--95.7%
---------------------------------------------------------
350,000 Allegheny County, PA HDA, Hospital Revenue Bonds (Series
A), 5.45% (Allegheny General Hospital)/(MBIA
INS)/(Original Issue Yield: 5.55%), 9/1/2004 Aaa 366,331
---------------------------------------------------------
300,000 Allegheny County, PA HDA, Revenue Bonds (Series A), 5.90%
(South Hills Health System)/(Original Issue Yield:
6.00%), 5/1/2003 A 317,409
---------------------------------------------------------
300,000 Allegheny County, PA HDA, Revenue Bonds (Series A), 6.00%
(South Hills Health System)/(Original Issue Yield:
6.10%), 5/1/2004 A 317,439
---------------------------------------------------------
100,000 Allegheny County, PA, UT GO Bonds (Series C-39), 6.00%
(AMBAC INS)/(Original Issue Yield: 6.098%), 5/1/2012 Aaa 104,734
---------------------------------------------------------
100,000 Allegheny County, PA, UT GO Bonds, 5.40% (MBIA INS)/
(Original Issue Yield: 5.50%), 9/15/2005 Aaa 104,437
---------------------------------------------------------
100,000 Altoona, PA Area School District, UT GO Bonds, 5.35%
(FGIC INS)/(Original Issue Yield: 5.40%), 1/15/2004 Aaa 104,377
---------------------------------------------------------
100,000 Altoona, PA City Authority, Water Revenue Bonds, 5.60%
(FGIC INS)/(Original Issue Yield: 5.699%), 11/1/2004 Aaa 106,830
---------------------------------------------------------
150,000 Berks County, PA Municipal Authority, Hospital Revenue
Bonds, 5.40% (Reading Hospital & Medical Center)/(MBIA
INS)/(Original Issue Yield: 5.45%), 10/1/2004 Aaa 156,519
---------------------------------------------------------
100,000 Berks County, PA Municipal Authority, Hospital Revenue
Bonds, 5.60% (Reading Hospital & Medical Center)/(MBIA
INS)/(Original Issue Yield: 5.65%), 10/1/2006 Aaa 105,436
---------------------------------------------------------
300,000 Bethlehem, PA, UT GO Bonds, 6.30% (MBIA INS), 6/1/2003 Aaa 328,473
---------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------------- -------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 150,000 Cambria County, PA, UT GO (Series A), 5.40% (FGIC
INS)/(Original Issue Yield: 5.50%), 8/15/2004 Aaa $ 157,476
---------------------------------------------------------
100,000 Central Bucks, PA School District, UT GO Bonds, 5.40%
(FGIC INS), 5/15/2003 Aaa 102,706
---------------------------------------------------------
100,000 Central Bucks, PA School District, UT GO Bonds, 6.00%,
11/15/2003 Aa 109,623
---------------------------------------------------------
100,000 Commonwealth of Pennsylvania, UT GO Bonds (Second Series
A), 6.30% (MBIA INS)/(Original Issue Yield: 6.35%),
11/1/2002 Aaa 110,824
---------------------------------------------------------
100,000 Commonwealth of Pennsylvania, UT GO Bonds (Series A),
6.50% (Original Issue Yield: 6.60%), 11/15/2010 AA- 109,059
---------------------------------------------------------
145,000 Commonwealth of Pennsylvania, UT GO Refunding Bonds
(First Series), 5.30%, 5/1/2004 AA- 151,038
---------------------------------------------------------
150,000 Dauphin County, PA General Authority, Revenue Bonds,
6.00% (Harrisburg International Airport)/(MBIA INS),
6/1/2002 Aaa 159,740
---------------------------------------------------------
150,000 Dauphin County, PA General Authority, Revenue Bonds,
6.10% (Harrisburg International Airport)/(MBIA INS),
6/1/2003 Aaa 160,287
---------------------------------------------------------
345,000 Delaware County Authority, PA, (Series 1995) College
Revenue Bonds, 5.30% (Neumann College)/(Connie Lee
INS)/(Original Issue Yield: 5.40%), 10/1/2007 AAA 347,339
---------------------------------------------------------
300,000 Delaware County Authority, PA, Hospital Revenue Bonds,
5.90% (Riddle Memorial Hospital)/(Original Issue Yield:
6.10%), 1/1/2002 A- 315,432
---------------------------------------------------------
125,000 Eastern York, PA School District, UT GO Bonds, 5.55%
(MBIA INS), 6/1/2003 Aaa 131,855
---------------------------------------------------------
100,000 Elizabethtown, PA Area School District, UT GO Bonds,
5.45%, 2/15/2004 A 102,426
---------------------------------------------------------
125,000 Franklin Park Boro, PA, GO Bonds, 5.50% (AMBAC INS),
11/1/2004 Aaa 132,259
---------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------------- -------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 500,000 Indiana County, PA Hospital Authority, Revenue Refunding
Bonds (Series B), 6.20% (Indiana Hospital, PA)/(Connie
Lee INS)/(Original Issue Yield: 6.30%), 7/1/2006 AAA $ 541,690
---------------------------------------------------------
350,000 Lehigh County, PA, General Purpose Authority Hospital
Revenue Bonds, 5.30% (Lehigh Valley Hospital, Inc.)/
(MBIA INS)/(Original Issue Yield: 5.40%), 7/1/2005 Aaa 360,860
---------------------------------------------------------
325,000 Lower Dauphin, PA School District, UT GO Bonds, 5.75%
(AMBAC INS), 3/15/2000 (@100) Aaa 344,311
---------------------------------------------------------
500,000 Lycoming County PA Authority, Hospital Revenue Bonds,
4.80% (Divine Providence Hospital, PA)/(Connie Lee
INS)/(Original Issue Yield: 4.95%), 11/15/2002 AAA 500,870
---------------------------------------------------------
180,000 North Penn, PA Water Authority, Revenue Bonds, 5.80%
(FGIC INS)/(Original Issue Yield: 5.85%), 11/1/2005 Aaa 191,795
---------------------------------------------------------
110,000 North Penn, PA Water Authority, Revenue Bonds, 6.10%
(FGIC INS), 11/1/2003 Aaa 121,844
---------------------------------------------------------
500,000 Northeastern, PA Hospital & Education Authority, Health
Care Revenue Bonds (Series 1994 A), 6.10% (Wyoming Valley
Health Care, PA)/(AMBAC INS)/(Original Issue Yield:
6.25%), 1/1/2003 Aaa 542,065
---------------------------------------------------------
150,000 Penn Trafford, PA School District, UT GO Bonds, 5.55%
(MBIA INS), 5/1/2006 Aaa 157,658
---------------------------------------------------------
100,000 Pennsylvania Housing Finance Authority, SFM Revenue Bonds
(Series 38), 5.30%, 4/1/2003 AA 101,534
---------------------------------------------------------
100,000 Pennsylvania Housing Finance Authority, SFM Revenue Bonds
(Series 41-B), 5.90%, 10/1/2005 AA 103,614
---------------------------------------------------------
100,000 Pennsylvania Housing Finance Authority, SFM Revenue Bonds
(Series 42), 5.90%, 10/1/2004 AA 103,910
---------------------------------------------------------
345,000 Pennsylvania Housing Finance Authority, SFM Revenue Bonds
(Series 43), 6.35%, 4/1/2001 AA 360,735
---------------------------------------------------------
300,000 Pennsylvania State Higher Education Facilities Authority,
College & University Refunding Revenue Bonds, 6.00%
(Carnegie-Mellon University), 11/1/2003 AA- 328,122
---------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------------- -------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 125,000 Pennsylvania State Higher Education Facilities Authority,
Health Services Revenue Bonds (Series A), 6.00%
(University of Pennsylvania), 1/1/2003 AA- $ 136,421
---------------------------------------------------------
200,000 Pennsylvania State Higher Education Facilities Authority,
Revenue Bonds (Series L), 5.50% (State System of Higher
Education, Commonwealth of PA)/(AMBAC INS)/(Original
Issue Yield: 5.55%), 6/15/2005 Aaa 209,782
---------------------------------------------------------
125,000 Pennsylvania State Turnpike Commission, Turnpike Revenue
Bonds (Series P), 5.45%, 12/1/2002 A1 131,376
---------------------------------------------------------
100,000 Pennsylvania State University, Second Revenue Refunding
Bonds, 5.55% (AMBAC INS)/(Original Issue Yield: 5.70%),
8/15/2006 Aaa 104,735
---------------------------------------------------------
125,000 Perkiomen Valley School District, PA, UT GO Bonds, 5.50%,
2/1/2004 A1 130,115
---------------------------------------------------------
300,000 Philadelphia, PA Gas Works, Revenue Bonds (14th Series),
5.50% (FSA INS)/(Original Issue Yield: 6.10%), 7/1/2004 Aaa 314,838
---------------------------------------------------------
100,000 Philadelphia, PA Hospitals & Higher Education Facilities
Authority, Hospital Revenue Bonds (Series 1994), 5.25%
(Wills Eye Hospital, PA)/(Original Issue Yield: 5.40%),
7/1/2003 A 101,526
---------------------------------------------------------
350,000 Philadelphia, PA Hospitals & Higher Education Facilities
Authority, Revenue Bonds (Series A), 6.50% (Children's
Hospital of Philadelphia)/(Original Issue Yield: 6.85%),
2/15/2002 (@102) Aaa 395,479
---------------------------------------------------------
300,000 Philadelphia, PA School District, LT GO (Series A), 5.45%
(MBIA INS), 7/1/2004 Aaa 315,840
---------------------------------------------------------
150,000 Philadelphia, PA Water & Wastewater System, Revenue
Bonds, 5.50% (FGIC INS), 6/15/2003 Aaa 158,567
---------------------------------------------------------
300,000 Pittsburgh, PA, Refunding UT GO Bonds, 4.70% (FGIC INS)/
(Original Issue Yield: 4.80%), 3/1/2005 Aaa 297,648
---------------------------------------------------------
100,000 Richland School District, PA, UT GO Bonds, 5.30% (MBIA
INS)/(Original Issue Yield: 5.45%), 11/1/2003 Aaa 104,767
---------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------------- -------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
$ 125,000 Solanco, PA School District, UT GO Bonds, 5.60% (FGIC
INS), 2/15/2004 Aaa $ 131,925
---------------------------------------------------------
100,000 Spring Ford, PA School District, UT GO Refunding Bonds
(Series AA), 5.80% (FGIC INS), 8/1/2005 Aaa 104,153
---------------------------------------------------------
260,000 Stroudsburg, PA Area School District, GO Bonds, Series
1995, 4.90% (FGIC INS), 10/1/2004 Aaa 265,122
---------------------------------------------------------
200,000 Swarthmore Boro Authority PA, College Revenue Bonds,
6.00% (Swarthmore College)/(Original Issue Yield: 6.10%),
9/15/2006 AA 215,744
---------------------------------------------------------
185,000 Warren County, PA School District, UT GO Bonds, 5.85%
(FGIC INS), 9/1/2001 Aaa 194,335
---------------------------------------------------------
110,000 Warren County, PA School District, UT GO Bonds, 6.10%
(FGIC INS), 9/1/2003 Aaa 115,716
--------------------------------------------------------- -----------
Total 11,289,146
------------------------------------------------------ -----------
VIRGIN ISLANDS--1.5%
---------------------------------------------------------
170,000 Virgin Islands HFA, SFM Revenue Refunding Bonds (Series
A), 5.80% (GNMA COL), 3/1/2005 AAA 175,134
-------------------------------------------------------- -----------
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $10,962,167) 11,464,280
-------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $12,262,167)(a) $12,764,280
--------------------------------------------------------- -----------
</TABLE>
Securities that are subject to AMT represent 5.82% of the portfolio as
calculated based upon total portfolio market value.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
(a) The cost of investments for federal tax purposes amounts to $12,262,167. The
net unrealized appreciation of investments on a federal tax basis amounts to
$502,113 which is comprised of $502,230 appreciation and $117 depreciation
at November 30, 1995.
Note: The categories of investments are shown as a percentage of net assets
($11,791,845) at November 30, 1995.
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
The following acronyms are used throughout this portfolio.
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
COL -- Collateralized
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GO -- General Obligation
HDA -- Hospital Development Authority
HFA -- Housing Finance Authority
INS -- Insured
LOC -- Letter of Credit
LT -- Limited Tax
MBIA -- Municipal Bond Investors Assurance
SFM -- Single Family Mortgage
UT -- Unlimited Tax
VRDNs -- Variable Rate Demand Notes
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $12,262,167) $12,764,280
- ---------------------------------------------------------------------------------
Cash 7,543
- ---------------------------------------------------------------------------------
Income receivable 163,620
- ---------------------------------------------------------------------------------
Receivable for shares sold 12,500
- ---------------------------------------------------------------------------------
Deferred expenses 10,006
- --------------------------------------------------------------------------------------------
Total assets 12,957,949
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $1,138,621
- --------------------------------------------------------------------
Income distribution payable 45,752
- --------------------------------------------------------------------
Accrued expenses (18,269)
- -------------------------------------------------------------------- ----------
Total liabilities 1,166,104
- --------------------------------------------------------------------------------------------
NET ASSETS for 1,148,973 shares outstanding $11,791,845
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $11,447,982
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 502,113
- ---------------------------------------------------------------------------------
Accumulated net realized loss on investments (158,250)
- --------------------------------------------------------------------------------- -----------
Total Net Assets $11,791,845
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ---------------------------------------------------------------------------------
$11,791,845 / 1,148,973 shares outstanding $10.26
- --------------------------------------------------------------------------------- -------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------
Interest $259,559
- -------------------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------------------
Investment advisory fee $ 24,228
- ------------------------------------------------------------------------
Administrative personnel and services fee 62,500
- ------------------------------------------------------------------------
Custodian fees 9,061
- ------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 7,123
- ------------------------------------------------------------------------
Directors'/Trustees' fees 1,647
- ------------------------------------------------------------------------
Auditing fees 6,039
- ------------------------------------------------------------------------
Legal fees 1,281
- ------------------------------------------------------------------------
Portfolio accounting fees 23,017
- ------------------------------------------------------------------------
Shareholder services fee 12,114
- ------------------------------------------------------------------------
Share registration costs 8,967
- ------------------------------------------------------------------------
Printing and postage 6,405
- ------------------------------------------------------------------------
Insurance premiums 2,196
- ------------------------------------------------------------------------
Miscellaneous 2,856
- ------------------------------------------------------------------------ ---------
Total expenses 167,434
- ------------------------------------------------------------------------
Waivers and reimbursements--
- ------------------------------------------------------------------------
Waiver of investment advisory fee $ (24,228)
- ------------------------------------------------------------
Waiver of shareholder services fee (7,268)
- ------------------------------------------------------------
Reimbursement of other operating expenses (113,919)
- ------------------------------------------------------------ ---------
Total waivers and reimbursements (145,415)
- ------------------------------------------------------------------------ ---------
Net expenses 22,019
- -------------------------------------------------------------------------------- --------
Net investment income 237,540
- -------------------------------------------------------------------------------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -------------------------------------------------------------------------------------
Net realized gain on investments 3,897
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 216,659
- -------------------------------------------------------------------------------- --------
Net realized and unrealized gain on investments 220,556
- -------------------------------------------------------------------------------- --------
Change in net assets resulting from operations $458,096
- -------------------------------------------------------------------------------- --------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, 1995 MAY 31, 1995
----------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 237,540 $ 334,414
- ---------------------------------------------------------
Net realized gain (loss) on investments ($3,897 net gain
and $74,731 net loss, respectively, as computed for
federal tax purposes) 3,897 (124,072)
- ---------------------------------------------------------
Net change in unrealized appreciation of investments 216,659 334,985
- --------------------------------------------------------- --------------- -----------
Change in net assets resulting from operations 458,096 545,327
- --------------------------------------------------------- --------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (237,540) (334,414)
- --------------------------------------------------------- --------------- -----------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 7,705,897 15,556,453
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 36,016 34,262
- ---------------------------------------------------------
Cost of shares redeemed (4,514,908) (10,337,938)
- --------------------------------------------------------- --------------- -----------
Change in net assets resulting from share
transactions 3,227,005 5,252,777
- --------------------------------------------------------- --------------- -----------
Change in net assets 3,447,561 5,463,690
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 8,344,284 2,880,594
- --------------------------------------------------------- --------------- -----------
End of period $11,791,845 $ 8,344,284
- --------------------------------------------------------- --------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
SIX MONTHS ENDED
(UNAUDITED)
NOVEMBER 30, 1995 1995 1994(a)
------------------ ------ -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.06 $ 9.85 $10.00
- ------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------
Net investment income 0.25 0.48 0.23
- ------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.20 0.21 (0.15)
- ------------------------------------------------ ------------ ------ ------
Total from investment operations 0.45 0.69 0.08
- ------------------------------------------------ ------------ ------ ------
LESS DISTRIBUTIONS
- ------------------------------------------------
Distributions from net investment income (0.25) (0.48) (0.23)
- ------------------------------------------------ ------------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.26 $10.06 $ 9.85
- ------------------------------------------------ ------------ ------ ------
TOTAL RETURN (b) 4.50% 7.35% 0.76%
- ------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------
Expenses 0.45%* 0.45% 0.25%*
- ------------------------------------------------
Net investment income 4.90%* 5.11% 4.76%*
- ------------------------------------------------
Expense waiver/reimbursement 3.00%*(c) 3.95%(d)5.06%*(c)
- ------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------
Net assets, end of period (000 omitted) $11,792 $8,344 2,881
- ------------------------------------------------
Portfolio turnover 4% 41% 39%
- ------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from December 5, 1993 (date of initial
public investment) to May 31, 1994.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) The Adviser waived $32,714 of the investment advisory fee and reimbursed
$86,896 of other expenses, which represent 0.50% and 1.33% of average net
assets, respectively, to comply with certain state expense limitations. The
remainder of the waiver/reimbursement was voluntary. This 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)
14
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Intermediate Municipal Trust (the "Trust") is registered under the Investment
Company Act of 1940, (the "Act"), as an open-end, management investment company.
The Trust consists of two non-diversified portfolios and one diversified
portfolio. The financial statements included herein are only those of Federated
Pennsylvania Intermediate Municipal Trust (the "Fund"), a non-diversified
portfolio. The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held.
Effective December 19, 1994, the Board of Trustees ("Trustees") changed the name
of the Fund from Pennsylvania Intermediate Municipal Trust to Federated
Pennsylvania Intermediate Municipal Trust.
(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--Short-term securities with remaining maturities of
sixty days or less at the time of purchase may be valued at amortized cost,
which approximates fair market value. All other securities are valued at
prices provided by an independent pricing service.
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 Fund'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 May 31, 1995, the Fund, for federal tax purposes, had a capital loss
carryforward of $74,731, which will reduce the Fund'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 Fund of
any liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire as follows:
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
--------------- -----------------
<S> <C>
2003 $74,731
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
Additionally, net capital losses of $87,417 attributable to security
transactions incurred after October 31, 1994 are treated as arising on the
first day of the Fund's next taxable year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund 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.
DEFERRED EXPENSES--The costs incurred by the Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering its shares, have been deferred and are being
amortized using the straight-line method over a period of five years from
the Fund's commencement date.
CONCENTRATION OF CREDIT RISK--Since the Fund invests a substantial portion
of its assets in issuers located in one state, it will be more susceptible
to factors adversely affecting issuers of that state than would be a
comparable tax-exempt mutual fund that invests nationally. In order to
reduce the credit risk associated with such factors, at November 30, 1995,
72.3% of the securities in the portfolio of investments are backed by
letters of credit or bond insurance of various financial institutions and
financial guaranty assurance agencies. The value of investments insured by
or supported (backed) by a letter of credit from any one institution or
agency did not exceed 20.1% of total investments.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED YEAR ENDED
NOVEMBER 30, 1995 MAY 31, 1995
- --------------------------------------------------------- ----------------- ------------
<S> <C> <C>
Shares sold 762,926 1,596,301
- ---------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 3,561 3,517
- ---------------------------------------------------------
Shares redeemed (447,278) (1,062,458)
- --------------------------------------------------------- ------------- ------------
Net change resulting from share transactions 319,209 537,360
- --------------------------------------------------------- ------------- ------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser,
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .50 of 1% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee and reimburse certain operating
expenses of the Fund. The Adviser can modify or terminate this voluntary waiver
and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services, under the Administrative
Services Agreement, provides the Fund with administrative personnel and
services. This fee is based on the level of average aggregate daily net assets
of all funds advised by subsidiaries of Federated Investors for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay Federated
Shareholder Services up to .25 of 1% of average daily net assets of the Fund for
the period. This fee is to obtain certain services for shareholders and to
maintain shareholder accounts. FSS may voluntarily choose to waive a portion of
its fee. FSS can modify or terminate this voluntary waiver at any time at its
sole discretion.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund. The fee paid to FServ is based on the size, type, and number of
accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also maintains the Fund's accounting records
for which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $24,690 and start-up
administrative service expenses of $31,506 were borne initially by the Adviser.
The Fund has agreed to reimburse the Adviser for the organizational expenses and
start-up administrative expenses during the five year period following effective
date. For the period ended November 30, 1995, the Fund paid $0 pursuant to this
agreement.
INTERFUND TRANSACTIONS--During the period ended November 30, 1995, the Fund
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common
Directors/Trustees, and/or common Officers. These purchase and sale transactions
were made at current market value pursuant to Rule 17a-7 under the Act amounting
to $5,650,000 and $4,700,000, respectively.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
(FORMERLY, PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1995, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
Purchases 3,768,543
- -------------------------------------------------------------------------------- ----------
Sales $ 381,500
- -------------------------------------------------------------------------------- ----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. Edward C. Gonzales
Glen R. Johnson Executive Vice President
Peter E. Madden John W. McGonigle
Gregor F. Meyer Executive Vice President and
Secretary
John E. Murray, Jr. Richard B. Fisher
Wesley W. Posvar Vice President
Marjorie P. Smuts David M. Taylor
Treasurer
S. Elliott Cohan
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.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
