- --------------------------------------------------------------------------------
FEDERATED
INTERMEDIATE
MUNICIPAL
TRUST
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
NOVEMBER 30, 1996
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
Cusip 458810108
458810207 LOGO
8010413 (1/97)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present you with the Semi-Annual Report to Shareholders for
Federated Intermediate Municipal Trust for the six-month period ended November
30, 1996. 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.
The fund 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, the fund achieved a total return of 4.73%
through dividends totaling $0.27 per share and a 2% share price increase.**
Total assets stood at $220.2 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,
LOGO
Glen R. Johnson
President
January 15, 1997
* Income may be subject to the 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
- --------------------------------------------------------------------------------
At the end of the six month period ended November 30, 1996, the municipal yield
curve remained considerably steeper than the Treasury yield curve. This was due
mainly to supply and demand imbalances which exist along different segments of
the maturity spectrum. Currently, the spread between bonds of 5 and 10 years in
maturity is in excess of 50 basis points while the spread in the same maturity
range of the Treasury yield curve is approximately 20 basis points. The ratio of
"AAA" rated general obligation municipal bond yields to Treasury bond yields
narrowed considerably over the fiscal year in the 5 to 10 year portion of the
municipal yield curve. This ratio provides some indication as to the richness or
cheapness of municipal bonds versus comparable maturity Treasury securities.
This ratio has narrowed, or municipal bonds have become more expensive relative
to Treasury securities, as a result of significant institutional interest
(property and casualty insurance companies and commercial banks) in intermediate
maturities.
The second half of 1996 became a better market environment for fixed income
investors. The Federal Reserve Board (the "Fed") remained on hold, the economy
was showing signs of slowing or providing at best moderate growth and inflation
remained under control. As a result, yields trended lower into the winter of
1996 and have settled into a trading range around the 6.50% level. The municipal
bond market experienced a considerable uptick in supply as rates fell during the
second half of the year and finished approximately 14% ahead of last year's
supply figures, mainly with the assistance of additional refunding activity. The
presidential election ended quite favorably for the municipal market with the
threat of major tax reform dying with the republican presidential candidates
hopes for the White House. The major investment themes which characterize the
municipal bond market include narrow credit spreads, a flat yield curve beyond
the 15 year maturity range, the prevalence of bond insurance and uncertainty as
to the Fed's next move. As a result of these conditions which currently exist in
the marketplace, management is stressing credit quality and attempting to swap
into higher quality credits with minimal yield give up. At this late stage of
the business cycle it is important to pay attention to the trade off between
risk and return. The traditionally higher yielding sectors of the municipal
market (such as healthcare, housing, and electric utilities) have performed
strongly this year as investors have chased yield and we are assessing our
exposures to these sectors and making appropriate adjustments in the portfolio.
Management intends to continue to maintain a neutral duration target relative to
our peer group until the markets direction becomes clearer. We feel that
structure will continue to be an important aspect of performance in 1997 so
particular attention must be paid to call protection, coupon and convexity.
The fund's performance over the past six months reflects the fund's intermediate
maturity and duration position relative to the fund's peer group. The fund's
total return was 4.73% for the period June 1, 1996 to November 30, 1996.* The
concentration of high coupon premium bonds in the portfolio helped to dampen net
asset value volatility over the period. However, the fund is managed
predominately for tax-exempt income and posted a 30-day distribution rate of
5.02% as of November 30, 1996, which is comparable to a tax-equivalent yield of
8.31%, assuming a top marginal tax rate of 39.6%. The fund's 30-day SEC yield
for the period ended November 30, 1996 was 4.12%.*
* 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.
- --------------------------------------------------------------------------------
SHAREHOLDER MEETING RESULTS
A Special meeting of Shareholders of The Starburst Municipal Income Fund was
held on October 29, 1996. On August 26, 1996, the record date for shareholders
voting at the meetings, there were 1,150,490 total outstanding shares. The
following items were considered by shareholders and the results of their voting
were as follows:
AGENDA ITEM: To approve the proposed agreement and plan or reorganization
between Starburst Municipal Income Fund ("TSMIF") and Federated
Intermediate Municipal Trust whereby the fund would acquire all of
the assets of TSMIF in exchange for shares of the fund to be
distributed pro rata by TSMIF to the shareholders in complete
liquidation of TSMIF.
<TABLE>
<CAPTION>
SHARES FOR SHARES AGAINST ABSTAIN
- ------------ ---------------- --------
<S> <C> <C>
607,571 20,702 52,231
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--97.8%
- ------------------------------------------------------------------
ALABAMA--1.0%
---------------------------------------------------
$1,500,000 Alabama Water PCA, PCR Bonds, 6.35%
(AMBAC INS), 8/15/2001 AAA $ 1,628,760
---------------------------------------------------
500,000 Birmingham, AL Waterworks & Sewer Board, Refunding
Revenue Bonds, 6.25% (Original Issue Yield: 6.30%),
1/1/2008 AA 536,110
--------------------------------------------------- ------------
Total 2,164,870
--------------------------------------------------- ------------
ARIZONA--3.1%
---------------------------------------------------
1,500,000 Phoenix, AZ, UT GO Refunding Bonds (Series A),
7.40%, 7/1/2000 AA 1,660,455
---------------------------------------------------
5,000,000 Salt River Project, AZ Agricultural Improvement &
Power District, Electric System Revenue Bonds
(Series A), 7.10%, 1/1/2000 AA 5,259,100
--------------------------------------------------- ------------
Total 6,919,555
--------------------------------------------------- ------------
CALIFORNIA--4.2%
---------------------------------------------------
2,250,000 California State, UT GO Bonds ,Series AV, 7.80%,
10/1/2000 AA 2,533,973
---------------------------------------------------
1,800,000 Los Angeles, CA Department of Water & Power,
Electric Plant Revenue Bonds, 2nd Issue, 9.00%,
6/1/2000 AA 2,077,974
---------------------------------------------------
1,875,000 Los Angeles, CA Department of Water & Power,
Electric Plant Revenue Bonds, 2nd Issue, 9.00%,
6/1/2001 AA 2,231,213
---------------------------------------------------
2,000,000 Los Angeles, CA Department of Water & Power,
Electric Plant Revenue Refunding Bonds, 9.00%,
2/1/2001 AA 2,354,080
--------------------------------------------------- ------------
Total 9,197,240
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
FLORIDA--2.4%
---------------------------------------------------
$2,000,000 Florida State Board of Education Administration,
UT GO Capital Outlay Bonds (Series C), 6.25%
(Florida State), 6/1/2001 AA $ 2,160,320
---------------------------------------------------
3,000,000 Florida State Board of Education Administration,
UT GO Capital Outlay Bonds, 6.00% (Florida State),
6/1/2001 AA 3,212,580
--------------------------------------------------- ------------
Total 5,372,900
--------------------------------------------------- ------------
GEORGIA--4.0%
---------------------------------------------------
2,000,000 Georgia Municipal Electric Authority, Revenue Bonds
(Series U), 6.50%, 1/1/2000 AA- 2,132,160
---------------------------------------------------
1,000,000 Georgia Municipal Electric Authority, Revenue Bonds
(Series U), 6.60%, 1/1/2001 AA- 1,083,990
---------------------------------------------------
5,000,000 Georgia State, UT GO Bonds (Series A), 7.70%,
2/1/2001 AA+ 5,661,900
--------------------------------------------------- ------------
Total 8,878,050
--------------------------------------------------- ------------
HAWAII--4.6%
---------------------------------------------------
5,000,000 Hawaii State, UT GO Bonds (Series BT), 8.00%,
2/1/2001 AA 5,700,300
---------------------------------------------------
1,000,000 Hawaii State, UT GO Bonds (Series BU), 5.85%
(Original Issue Yield: 5.95%), 11/1/2001 AA 1,069,670
---------------------------------------------------
3,000,000 Honolulu, HI City & County, UT GO Bonds (Series A),
6.30% (Original Issue Yield: 6.40%), 8/1/2001 AA 3,254,610
--------------------------------------------------- ------------
Total 10,024,580
--------------------------------------------------- ------------
ILLINOIS--7.1%
---------------------------------------------------
3,500,000 Cook County, IL, GO Capital Improvement Bonds
(Series 1996), 5.40% (FGIC INS), 11/15/2007 AAA 3,648,470
---------------------------------------------------
3,100,000 Cook County, IL, GO Capital Improvement Bonds
(Series 1996), 5.50% (FGIC INS), 11/15/2008 AAA 3,233,951
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
ILLINOIS--CONTINUED
---------------------------------------------------
$3,000,000 Du Page, IL Water Commission, UT GO Bonds, 6.05%,
3/1/2002 AA+ $ 3,228,180
---------------------------------------------------
3,000,000 Illinois Municipal Electric Agency, Power Supply
System Revenue Bonds (Series A), 6.20%
(AMBAC INS), 2/1/2001 AAA 3,200,490
---------------------------------------------------
2,000,000 University of Illinois, Auxiliary Facilities
Revenue Bonds, 6.40% (Original Issue Yield: 6.45%),
4/1/2001 AA 2,160,800
--------------------------------------------------- ------------
Total 15,471,891
--------------------------------------------------- ------------
MARYLAND--1.0%
---------------------------------------------------
1,000,000 University of Maryland, Auxiliary Facility &
Tuition Revenue Bonds (Series A), 5.80% (Original
Issue Yield: 5.85%), 2/1/2002 AA+ 1,067,110
---------------------------------------------------
1,000,000 Washington Suburban Sanitation District, MD,
GO UT Revenue Bonds (Second Series), 6.90%
(United States Treasury PRF), 6/1/2001 (@102) AA 1,125,270
--------------------------------------------------- ------------
Total 2,192,380
--------------------------------------------------- ------------
MICHIGAN--4.9%
---------------------------------------------------
2,000,000 Michigan State Building Authority, Revenue Bonds
(Series II), 6.25% (AMBAC INS)/(Original Issue
Yield: 6.35%), 10/1/2000 AAA 2,141,260
---------------------------------------------------
3,705,000 Michigan State Housing Development Authority,
(Series B) Rental Housing Revenue Bonds, 5.65%
(MBIA Insurance Corporation INS), 10/1/2007 AAA 3,784,472
---------------------------------------------------
3,605,000 Michigan State Housing Development Authority,
(Series B) Rental Housing Revenue Bonds, 5.65%
(MBIA Insurance Corporation INS), 4/1/2007 AAA 3,681,138
---------------------------------------------------
1,000,000 Royal Oak, MI Hospital Finance Authority,
Revenue Refunding Bonds, 7.40% (William Beaumont
Hospital, MI), 1/1/2000 AA 1,091,900
--------------------------------------------------- ------------
Total 10,698,770
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
MISSOURI--5.0%
---------------------------------------------------
$5,000,000 Missouri State HEFA, Health Facilities Revenue
Bonds (Series A), 6.00% (BJC Health System, MO)/
(Original Issue Yield: 6.05%), 5/15/2005 AA $ 5,442,100
---------------------------------------------------
5,000,000 Missouri State HEFA, Health Facilities Revenue
Bonds (Series A), 6.10% (BJC Health System, MO)/
(Original Issue Yield: 6.15%), 5/15/2006 AA 5,404,800
--------------------------------------------------- ------------
Total 10,846,900
--------------------------------------------------- ------------
NEVADA--0.5%
---------------------------------------------------
1,000,000 Clark County, NV School District, LT GO Bonds
(Series A), 9.75% (MBIA Insurance Corporation INS),
6/1/2000 AAA 1,176,490
--------------------------------------------------- ------------
NEW HAMPSHIRE--1.3%
---------------------------------------------------
2,555,000 New Hampshire State, UT GO Bonds (Series A), 6.40%,
6/15/2001 AA 2,775,931
--------------------------------------------------- ------------
NEW YORK--8.0%
---------------------------------------------------
1,500,000 Municipal Assistance Corp of New York, Revenue
Bonds (Series 62), 6.60%, 7/1/2000 AA- 1,555,215
---------------------------------------------------
2,000,000 Municipal Assistance Corp of New York, Revenue
Bonds (Series 66), 7.00% (Original Issue Yield:
7.05%), 7/1/1997 AA- 2,040,140
---------------------------------------------------
6,000,000 New York City, NY, UT GO Bonds (Series E), 5.30%
(FGIC INS)/(Original Issue Yield: 5.40%), 8/1/2009 AAA 6,045,300
---------------------------------------------------
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 A- 2,756,825
---------------------------------------------------
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 4,273,880
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------------
$1,000,000 Triborough Bridge & Tunnel Authority, NY, Revenue
Bonds (Series S), 6.625% (Original Issue Yield:
6.70%), 1/1/2001 A+ $ 1,089,210
--------------------------------------------------- ------------
Total 17,760,570
--------------------------------------------------- ------------
NORTH CAROLINA--6.6%
---------------------------------------------------
2,720,000 Charlotte-Mecklenburg Hospital Authority, NC,
Health Care Revenue Bonds (Series 1996A), 5.50%
(Charlotte-Mecklenburg Hospital, NC)/(Original
Issue Yield: 5.60%), 1/15/2008 AA 2,843,107
---------------------------------------------------
3,355,000 Charlotte-Mecklenburg Hospital Authority, NC,
Health Care System Revenue Bonds, 5.90% (Original
Issue Yield: 5.95%), 1/1/2002 AA 3,550,731
---------------------------------------------------
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 5,685,445
---------------------------------------------------
2,000,000 North Carolina Municipal Power Agency No. 1,
Catawba Electric Revenue Refunding Bonds, 7.25%,
1/1/2007 A 2,333,160
--------------------------------------------------- ------------
Total 14,412,443
--------------------------------------------------- ------------
OHIO--4.8%
---------------------------------------------------
2,500,000 Hamilton County, OH Sewer System, Improvement &
Revenue Refunding Bonds (Series A), 6.20%,
12/1/2000 AA- 2,673,925
---------------------------------------------------
3,195,000 Lucas County, OH, Hospital Revenue Refunding
Bonds (Series 1996), 5.50% (ProMedica Healthcare
Obligated Group)/(MBIA Insurance Corporation
INS)/(Original Issue Yield: 5.75%), 11/15/2008 AAA 3,315,547
---------------------------------------------------
2,840,000 Lucas County, OH, Hospital Revenue Refunding Bonds
(Series 1996), 6.00% (ProMedica Healthcare
Obligated Group)/(MBIA Insurance Corporation INS),
11/15/2007 AAA 3,103,694
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
OHIO--CONTINUED
---------------------------------------------------
$1,400,000 Montgomery County, OH Health Facilities Authority,
Revenue Bonds (Series A), 6.20% (Sisters of Charity
Health Care System)/(MBIA Insurance Corporation
INS)/(Original Issue Yield: 6.30%), 5/15/2001 AAA $ 1,503,908
--------------------------------------------------- ------------
Total 10,597,074
--------------------------------------------------- ------------
OKLAHOMA--1.0%
---------------------------------------------------
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 2,113,660
--------------------------------------------------- ------------
PENNSYLVANIA--9.5%
---------------------------------------------------
4,570,000 Harrisburg, PA Authority, Revenue Bonds
(Pooled Bond Program) (Series I of 1996) , 5.35%
(MBIA Insurance Corporation INS)/(Original
Issue Yield: 5.50%), 4/1/2008 AAA 4,692,887
---------------------------------------------------
1,500,000 Pennsylvania Infrastructure Investment Authority,
Revenue Bonds, 6.15% (Pennvest), 9/1/2001 AA 1,611,945
---------------------------------------------------
3,500,000 Pennsylvania Intergovernmental Co-op Authority,
Special Tax Revenue Bonds, 5.45% (FGIC INS)/
(Original Issue Yield: 5.55%), 6/15/2008 AAA 3,571,260
---------------------------------------------------
3,880,000 Pennsylvania Intergovernmental Co-op Authority,
Special Tax Revenue Refunding Bonds, Philadelphia
Funding Program, 5.30% (FGIC INS)/
(Original Issue Yield: 5.42%), 6/15/2008 AAA 3,951,159
---------------------------------------------------
3,000,000 Pennsylvania State Higher Education Facilities
Authority, Health Services Revenue Bonds (Series
A), 5.50% (Allegheny Delaware Valley Obligated
Group)/(MBIA Insurance Corporation INS)/(Original
Issue Yield: 5.60%), 11/15/2008 AAA 3,135,120
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
---------------------------------------------------
$4,000,000 Pennsylvania State Higher Education Facilities
Authority, Refunding Revenue Bonds (Series A),
5.50% (University of Pennsylvania)/(Original Issue
Yield: 5.55%), 1/1/2009 AA $ 4,111,840
--------------------------------------------------- ------------
Total 21,074,211
--------------------------------------------------- ------------
SOUTH CAROLINA--2.5%
---------------------------------------------------
730,000 Columbia, SC Waterworks & Sewer System, Refunding
Revenue Bonds, 6.40% (United States Treasury
COL)/(Original Issue Yield: 6.45%), 2/1/2001 AAA 790,393
---------------------------------------------------
4,270,000 Columbia, SC Waterworks & Sewer System, Revenue
Bonds, 6.40% (Original Issue Yield: 6.45%),
2/1/2001 AA 4,608,013
--------------------------------------------------- ------------
Total 5,398,406
--------------------------------------------------- ------------
TENNESSEE--1.9%
---------------------------------------------------
3,000,000 Memphis, TN Electric System, Revenue Refunding
Bonds, 5.625% (Original Issue Yield: 5.775%),
1/1/2002 AA 3,169,290
---------------------------------------------------
1,065,000 Metropolitan Government Nashville & Davidson
County, TN HEFA, Revenue Bonds (Series B), 5.85%
(Vanderbilt University)/(Original Issue Yield:
5.90%), 10/1/2001 AA 1,135,162
--------------------------------------------------- ------------
Total 4,304,452
--------------------------------------------------- ------------
TEXAS--15.7%
---------------------------------------------------
1,755,000 Dallas, TX Waterworks & Sewer System, Revenue
Refunding & Improvement Bonds, 6.60% (United States
Treasury PRF), 4/1/1997 (@101.5) AA 1,798,963
---------------------------------------------------
1,000,000 Dallas, TX Waterworks & Sewer System, Revenue
Refunding and Improvement Bonds (Series A), 9.50%,
10/1/1998 AA 1,033,860
---------------------------------------------------
500,000 Dallas, TX, GO LT Revenue Bonds, 6.20%, 1/1/2003 AAA 540,590
---------------------------------------------------
4,000,000 Garland, TX, LT GO Bonds, 5.80% (Original Issue
Yield: 5.90%), 8/15/2001 AA 4,261,040
---------------------------------------------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
TEXAS--CONTINUED
---------------------------------------------------
$4,500,000 Houston, TX Independent School District, LT GO
Bonds, 8.375% (PSFG GTD), 8/15/2000 AAA $ 5,131,800
---------------------------------------------------
500,000 Plano, TX, Refunding & Improvement Bonds, 5.60%
(AMBAC INS)/(Original Issue Yield: 5.85%), 9/1/2005 AAA 523,320
---------------------------------------------------
1,650,000 San Antonio, TX Electric & Gas, Revenue Bonds,
9.90%, 2/1/1998 AA 1,764,791
---------------------------------------------------
2,000,000 San Antonio, TX Electric & Gas, Revenue Refunding
Bonds (Series A), 7.00%, 2/1/1999 AA 2,122,420
---------------------------------------------------
2,500,000 San Antonio, TX Water Authority, Revenue Refunding
Bonds, 6.00% (FGIC INS)/(Original Issue Yield:
6.15%), 5/15/2001 AAA 2,670,275
---------------------------------------------------
1,475,000 San Antonio, TX, UT GO General Improvement Bonds,
8.625%, 8/1/2000 AA 1,692,946
---------------------------------------------------
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 6,873,039
---------------------------------------------------
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 6,417,480
--------------------------------------------------- ------------
Total 34,830,524
--------------------------------------------------- ------------
UTAH--1.0%
---------------------------------------------------
2,000,000 Intermountain Power Agency, UT, Power Supply
Revenue Refunding Bonds (Series B), 7.20%, 7/1/1999 A+ 2,134,720
--------------------------------------------------- ------------
VIRGINIA--2.2%
---------------------------------------------------
1,995,000 Virginia Beach, VA, UT GO Bonds (Series A), 6.30%,
3/1/2000 AA 2,123,897
---------------------------------------------------
1,995,000 Virginia Beach, VA, UT GO Bonds (Series A), 6.30%,
3/1/2001 AA 2,152,126
---------------------------------------------------
500,000 Virginia State Housing Development Authority,
Refunding Revenue Bonds (Series E), 5.45%,
11/1/2007 AA+ 505,115
--------------------------------------------------- ------------
Total 4,781,138
--------------------------------------------------- ------------
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- --------------------------------------------------- ------------ ------------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------
WASHINGTON--5.5%
---------------------------------------------------
$1,020,000 Seattle, WA, LT GO Refunding Bonds, 6.00%
(Original Issue Yield: 6.10%), 3/1/2002 AA+ $ 1,095,897
---------------------------------------------------
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 1,611,960
---------------------------------------------------
4,500,000 Washington Health Care Facilities Authority,
Revenue Bonds (Series 1996), 5.375% (Kadlec Medical
Center, Richland)/(AMBAC INS)/(Original Issue
Yield: 5.63%), 12/1/2010 NR 4,454,190
---------------------------------------------------
5,000,000 Washington State Public Power Supply System,
(Nuclear Project No. 3) Refunding & Revenue Bonds
(Series B), 5.70% (Original Issue Yield: 5.793%),
7/1/2010 AA- 5,065,400
--------------------------------------------------- ------------
Total 12,227,447
--------------------------------------------------- ------------
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $203,387,351) 215,354,202
--------------------------------------------------- ------------
SHORT-TERM MUNICIPAL SECURITIES--0.8%
- ------------------------------------------------------------------
PUERTO RICO--0.8%
---------------------------------------------------
1,850,000 Puerto Rico Government Development Bank
Weekly VRDNs (Credit Suisse, Zurich LOC)
(at amortized cost) AA+ 1,850,000
--------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST 205,237,351)(a) $217,204,202
--------------------------------------------------- ------------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $205,237,351.
The net unrealized appreciation of investments on a federal tax basis
amounts to $11,966,851, which is comprised of all appreciation at November
30, 1996.
* 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
($220,189,599) at November 30, 1996.
FEDERATED 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
GO -- General Obligation
GTD -- Guaranty
HEFA -- Health and Education Facilities Authority
INS -- Insured
LOC -- Letter of Credit
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
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost
$205,237,351) $217,204,202
- -------------------------------------------------------------------------------
Income receivable 3,819,643
- -------------------------------------------------------------------------------
Receivable for shares sold 301,560
- ------------------------------------------------------------------------------- ------------
Total assets 221,325,405
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Income distribution payable $920,855
- --------------------------------------------------------------------
Payable to Bank 210,518
- --------------------------------------------------------------------
Accrued expenses 4,433
- -------------------------------------------------------------------- --------
Total liabilities 1,135,806
- ------------------------------------------------------------------------------- ------------
Net Assets for 20,723,599 shares outstanding $220,189,599
- ------------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital $214,608,812
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 11,966,851
- -------------------------------------------------------------------------------
Accumulated net realized loss on investments (6,386,064)
- ------------------------------------------------------------------------------- ------------
Total Net Assets $220,189,599
- ------------------------------------------------------------------------------- ------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------
$220,189,599 / 20,723,599 shares outstanding $ 10.63
- ------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------------------------------------------
Interest $6,060,378
- -----------------------------------------------------------------------------------
EXPENSES:
- -----------------------------------------------------------------------------------
Investment advisory fee $429,615
- -----------------------------------------------------------------------
Administrative personnel and services fee 81,189
- -----------------------------------------------------------------------
Custodian fees 13,747
- -----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 17,507
- -----------------------------------------------------------------------
Directors'/Trustees' fees 2,562
- -----------------------------------------------------------------------
Auditing fees 8,601
- -----------------------------------------------------------------------
Legal fees 2,470
- -----------------------------------------------------------------------
Portfolio accounting fees 30,502
- -----------------------------------------------------------------------
Shareholder services fee 268,509
- -----------------------------------------------------------------------
Share registration costs 7,869
- -----------------------------------------------------------------------
Printing and postage 5,155
- -----------------------------------------------------------------------
Insurance premiums 3,111
- -----------------------------------------------------------------------
Taxes 4,026
- -----------------------------------------------------------------------
Miscellaneous 1,464
- ----------------------------------------------------------------------- --------
Total expenses 876,327
- -----------------------------------------------------------------------
Waivers --
- -----------------------------------------------------------------------
Waiver of investment advisory fee $ (61,135)
- -----------------------------------------------------------
Waiver of shareholder services fee (204,067)
- ----------------------------------------------------------- ---------
Total waivers (265,202)
- ----------------------------------------------------------------------- --------
Net expenses 611,125
- ----------------------------------------------------------------------------------- ----------
Net investment income 5,449,253
- ----------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -----------------------------------------------------------------------------------
Net realized gain on investments 502,919
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 4,021,433
- ----------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 4,524,352
- ----------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $9,973,605
- ----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED
1996 MAY 31, 1996
------------ -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 5,449,253 $ 11,295,121
- -------------------------------------------------------------
Net realized gain (loss) on investments ($502,919 net gain
and $3,670,810, net loss respectively, as computed for
federal tax purposes) 502,919 (96,242)
- -------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 4,021,433 (2,535,429)
- ------------------------------------------------------------- ----------- -------------
Change in net assets resulting from operations 9,973,605 8,663,450
- ------------------------------------------------------------- ----------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------
Distributions from net investment income (5,449,253) (11,295,121)
- ------------------------------------------------------------- ----------- -------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------
Proceeds from sale of shares 36,582,047 77,775,142
- -------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of distributions declared 924,979 2,174,227
- -------------------------------------------------------------
Cost of shares redeemed (40,235,655) (88,208,508)
- ------------------------------------------------------------- ----------- -------------
Change in net assets resulting from share transactions (2,728,629) (8,259,139)
- ------------------------------------------------------------- ----------- -------------
Change in net assets 1,795,723 (10,890,810)
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 218,393,876 229,284,686
- ------------------------------------------------------------- ----------- -------------
End of period $220,189,599 $ 218,393,876
- ------------------------------------------------------------- ----------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
FINANCIAL HIGHLIGHTS*
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED MAY 31,
------------ --------------------------------------------------------------------------------------
1996 1996 1995 1994 1993 1992 1991 1990 1989 1988
------------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $10.41 $10.55 $10.52 $10.74 $10.31 $10.09 $ 9.84 $ 9.81 $ 9.81 $ 9.83
- --------------------------
INCOME FROM INVESTMENT
OPERATIONS
- --------------------------
Net investment income 0.27 0.53 0.54 0.52 0.56 0.59 0.63 0.64 0.64 0.62
- --------------------------
Net realized and
unrealized gain (loss)
on investments 0.22 (0.14) 0.03 (0.22) 0.43 0.22 0.25 0.03 -- (0.02)
- -------------------------- ------ ----- ----- ----- ----- ----- ----- ----- ----- -----
Total from investment
operations 0.49 0.39 0.57 0.30 0.99 0.81 0.88 0.67 0.64 0.60
- -------------------------- ------ ----- ----- ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
- --------------------------
Distributions from net
investment income (0.27) (0.53) (0.54) (0.52) (0.56) (0.59) (0.63) (0.64) (0.64) (0.62)
- -------------------------- ------ ----- ----- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF
PERIOD $10.63 $10.41 $10.55 $10.52 $10.74 $10.31 $10.09 $ 9.84 $ 9.81 $ 9.81
- -------------------------- ------ ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL RETURN(B) 4.73% 3.78% 5.67% 2.79% 9.80% 8.19% 9.22% 7.02% 6.77% 6.34%
- --------------------------
RATIOS TO AVERAGE NET
ASSETS
- --------------------------
Expenses 0.57%(a) 0.57% 0.59% 0.61% 0.48% 0.47% 0.49% 0.50% 0.48% 0.49%
- --------------------------
Net investment income 5.07%(a) 5.05% 5.23% 4.82% 5.27% 5.73% 6.32% 6.49% 6.56% 6.25%
- --------------------------
Expense waiver/
reimbursement(c) 0.25%(a) 0.24% 0.00% 0.01% 0.14% 0.22% 0.30% 0.38% 0.39% 0.31%
- --------------------------
SUPPLEMENTAL DATA
- --------------------------
Net assets, end of
period (000 omitted) $220,190 $218,394 $229,285 $302,663 $263,283 $173,702 $116,577 $95,738 $82,211 $91,195
- --------------------------
Portfolio turnover 24% 19% 11% 7% 3% 9% 43% 14% 25% 119%
- --------------------------
</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.
(a) Computed on an annualized basis.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Intermediate Municipal Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of three portfolios. 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. The investment objective of the Fund is to provide current
income exempt from federal regular income tax.
(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--Municipal bonds are valued by an independent pricing
service, taking into consideration yield, liquidity, risk, credit quality,
coupon, maturity, type of issue, and any other factors or market data the
pricing service deems relevant. Short-term securities are valued at the
prices provided by an independent pricing service. However, 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.
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, 1996, the Fund, for federal tax purposes, had a capital loss
carryforward of $6,784,222, 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
- --------------------------------------------------------------------------------
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>
1997 $ 215,810
1998 $ 170,468
2001 $ 242,740
2003 $ 2,484,394
2004 $ 3,670,810
</TABLE>
Additionally, net capital losses of $104,832 attributable to security
transactions incurred after October 31, 1995 were treated as arising on
June 1, 1996 the first day of the Fund's 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.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
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, YEAR ENDED
1996 MAY 31, 1996
---------------- -------------
SHARES SHARES
- ------------------------------------------------------------------- ---------------- -------------
<S> <C> <C>
Shares sold 3,511,697 7,363,145
- -------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 88,346 205,536
- -------------------------------------------------------------------
Shares redeemed (3,847,440) (8,340,470)
- ------------------------------------------------------------------- ---------------- -------------
Net change resulting from share transactions (247,397) (771,789)
- ------------------------------------------------------------------- ---------------- -------------
</TABLE>
FEDERATED 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 0.40% 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 Services Company ("FServ"), under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. The fee paid to FServ 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 0.25%
of average daily net assets of the Fund for the period. The fee paid to FSS is
used to finance 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--FServ, through its
subsidiary, Federated Shareholder Services Company ("FSSC") serves as transfer
and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the
size, type, and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ 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.
INTERFUND TRANSACTIONS--During the period ended November 30, 1996, 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 $65,850,000 and $53,000,000 respectively.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
FEDERATED INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1996, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
Purchases $52,149,140
- ------------------------------------------------------------------------------- -----------
Sales $56,024,104
- ------------------------------------------------------------------------------- -----------
</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,
John E. Murray, Jr. Treasurer and Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
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, 1996
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 for the six-month period ended November 30,
1996. 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.
The fund pursues monthly income that is free from federal income tax and Ohio
personal income tax by investing in a portfolio of intermediate-term, investment
grade securities issued by Ohio municipalities.*
Over the six-month reporting period, the fund achieved a total return of 4.94%
through dividends totaling $0.24 per share and a 2% share price increase.**
Total assets stood at $8.8 million at the period's end.
Thank you for your confidence in the double-tax-free earning power of Federated
Ohio Intermediate Municipal Trust. We welcome your questions, comments, or
suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
January 15, 1997
* 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
- --------------------------------------------------------------------------------
At the end of the six month period ended November 30, 1996 the municipal yield
curve remained considerably steeper than the Treasury yield curve. This was due
mainly to supply and demand imbalances which exist along different segments of
the maturity spectrum. Currently, the spread between bonds of 5 and 10 years in
maturity is in excess of 50 basis points while the spread in the same maturity
range of the Treasury yield curve is approximately 20 basis points. The ratio of
"AAA" rated general obligation municipal bond yields to Treasury bond yields
provides some indication as to the richness or cheapness of municipal bonds
versus comparable maturity Treasury securities. This ratio has narrowed, or
municipal bonds have become more expensive relative to Treasury securities, as a
result of significant institutional interest (property and casualty insurance
companies and commercial banks) in intermediate maturities.
Ohio's economy continued to perform very well. Ohio tax-exempt bonds traded 5 to
10 basis points richer than Pennsylvania or Michigan paper as a result of market
supply and demand differences. The second half of 1996 became a better market
environment for fixed income investors. The Federal Reserve Board (the "Fed")
remained on hold, the economy was showing signs of slowing or providing at best
moderate growth and inflation remained under control. As a result, yields
trended lower into the winter of 1996 and have settled into a trading range
around the 6.50% level. The municipal bond market experienced a considerable
uptick in supply as rates fell during the second half of the year and finished
approximately 14% ahead of last year's supply figures, mainly with the
assistance of additional refunding activity. The presidential election ended
quite favorably for the municipal market with the threat of major tax reform
dying with the republican presidential candidates hopes for the White House. The
major investment themes which characterize the municipal bond market include
narrow credit spreads, a flat yield curve beyond the 15 year maturity range, the
prevalence of bond insurance and uncertainty as to the Fed's next move. As a
result of these conditions which currently exist in the marketplace, management
is stressing credit quality and attempting to swap into higher quality credits
with minimal yield give up. At this late stage of the business cycle it is
important to pay attention to the trade off between risk and return. The
traditionally higher yielding sectors of the municipal market (such as
healthcare, housing, and electric utilities) have performed strongly this year
as investors have chased yield and we are assessing our exposures to these
sectors and making appropriate adjustments in the portfolio. Management intends
to continue to maintain a neutral duration target relative to our peer group
until the markets direction becomes clearer. We feel that structure will
continue to be an important aspect of performance in 1997 so particular
attention must be paid to call protection, coupon and convexity. Institutional
buying (property and casualty insurance companies and commercial banks) has been
strong in the intermediate part of the yield curve which has resulted in making
intermediate maturity municipal bonds expensive relative to longer maturity
municipal bonds.
The fund's performance over the past six months reflects the funds' intermediate
maturity and duration position relative to the funds' peer group. The funds'
total return was 4.94% for the period June 1, 1996 to November 30, 1996.* The
concentration of high coupon premium bonds in the portfolio helped to dampen net
asset value volatility over the period. However, the fund is managed
predominately for tax-exempt income and posted a 30-day distribution rate of
4.71% as of November 30, 1996, which is comparable to a tax-equivalent yield of
7.80%, assuming a top marginal tax rate of 39.6%. The fund's 30-day SEC yield
for the period ended November 30, 1996 was 4.73%.*
* 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.
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- ------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--97.6%
- -------------------------------------------------------------------------
OHIO--95.3%
----------------------------------------------------------
$200,000 Akron, OH, Various Purpose LT GO, 5.50% (MBIA INS),
12/1/2005 AAA $ 212,166
----------------------------------------------------------
400,000 Clermont County, OH , Hospital Facilities Refunding &
Revenue Bonds (Series B), 5.00% (Mercy Health
Systems)/(AMBAC INS)/(Original Issue Yield: 5.15%),
9/1/2006 AAA 403,972
----------------------------------------------------------
200,000 Cleveland, OH Airport System, Revenue Bonds (Series A),
5.40% (FGIC INS)/(Original Issue Yield: 5.55%), 1/1/2004 AAA 209,146
----------------------------------------------------------
250,000 Cleveland, OH, LT GO Bonds, 6.00% (MBIA INS)/(Original
Issue Yield: 6.10%), 11/15/2004 AAA 273,367
----------------------------------------------------------
500,000 Columbus, OH Municipal Airport Authority, Revenue Bonds,
5.55% (Port Columbus International Airport)/(MBIA
INS)/(Original Issue Yield: 5.65%), 1/1/2004 AAA 525,965
----------------------------------------------------------
100,000 Columbus, OH Water System, Revenue Refunding Bonds,
6.375%, 11/1/2010 AA- 106,067
----------------------------------------------------------
150,000 Columbus, OH, LT GO Bonds, 5.50% (Original Issue Yield:
5.55%), 5/15/2004 AA+ 159,855
----------------------------------------------------------
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 260,730
----------------------------------------------------------
300,000 Franklin County, OH, Hospital Refunding & Improvement
Revenue Bonds (1996 Series A), 5.20% (Children's
Hospital)/(Original Issue Yield: 5.30%), 11/1/2004 Aa 307,422
----------------------------------------------------------
400,000 Franklin County, OH, Hospital Revenue Bonds (Series 1996),
5.50% (Holy Cross Health System Corp.), 6/1/2004 AA 419,268
----------------------------------------------------------
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 533,535
----------------------------------------------------------
</TABLE>
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- ------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
OHIO--CONTINUED
----------------------------------------------------------
$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 A $ 504,107
----------------------------------------------------------
155,000 Huron County, OH, LT GO Correctional Facility Bonds, Issue
I, 5.30% (MBIA INS), 12/1/2006 AAA 161,914
----------------------------------------------------------
100,000 Kings Local School District, OH, UT GO Bonds, 6.25%,
12/1/2001 NR 108,091
----------------------------------------------------------
100,000 Kings Local School District, OH, UT GO Bonds, 6.50%,
12/1/2003 NR 111,206
----------------------------------------------------------
300,000 Miami County, OH, Hospital Facilities Revenue Refunding &
Improvement Bonds (Series 1996B), 5.20% (Upper Valley
Medical Center, OH)/(MBIA INS)/(Original Issue Yield:
5.30%), 5/15/2004 AAA 310,584
----------------------------------------------------------
150,000 Miami Valley Regional Transit Authority, OH, LT GO Bonds,
5.40%, 12/1/2004 A 157,602
----------------------------------------------------------
300,000 Muskingum County, OH, (Series 1995) Hospital Facilities
Refunding Revenue Bonds, 5.10% (Franciscan Sisters of
Christian Charity HealthCare Ministry, Inc.)/(Connie Lee
INS)/(Original Issue Yield: 5.30%), 2/15/2006 AAA 305,049
----------------------------------------------------------
150,000 North Canton OH City School District, LT GO Energy
Conservation Bonds, 5.50%, 12/1/2003 A 157,640
----------------------------------------------------------
300,000 Ohio Enterprise Bond Fund, (Series 1995-3) State Economic
Development Revenue Bonds, 5.60% (Smith Steelite),
12/1/2003 A- 306,615
----------------------------------------------------------
150,000 Ohio HFA, Residential Mortgage Revenue Bonds (Series A-1),
5.40% (GNMA COL), 3/1/2004 AAA 154,208
----------------------------------------------------------
590,000 Ohio HFA, Residential MortgageRevenue Bonds (Series B-1),
5.80% (GNMA COL), 9/1/2005 AAA 607,482
----------------------------------------------------------
400,000 Ohio State Building Authority, State Correctional
Facilities Revenue Refunding Bonds, Series A, 5.80%
(Original Issue Yield: 5.95%), 10/1/2006 A+ 431,276
----------------------------------------------------------
</TABLE>
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- ------- -----------
<C> <C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- -------------------------------------------------------------------------
OHIO--CONTINUED
----------------------------------------------------------
$350,000 Ohio State Turnpike Commission, Revenue Bonds (Series A),
6.00% (FSA INS), 2/15/2005 AAA $ 381,045
----------------------------------------------------------
250,000 Ohio State, UT GO Bonds, 5.60% (Original Issue Yield:
5.65%), 8/1/2002 AA 266,175
----------------------------------------------------------
250,000 Olentangy, OH Local School District, UT GO Bonds (Series
A), 5.60% (Original Issue Yield: 5.70%), 12/1/2004 AA- 266,498
----------------------------------------------------------
195,000 Stow, OH, LT GO Safety Center Construction Bonds, 7.75%,
12/1/2003 A1 232,268
----------------------------------------------------------
260,000 Summit County, OH, LT Various Purpose GO Bonds, 5.75%
(AMBAC INS), 12/1/2005 AAA 281,146
----------------------------------------------------------
200,000 Toledo, OH Sewer System, Revenue Bonds, 5.75% (AMBAC
INS)/(Original Issue Yield: 5.85%), 11/15/2005 AAA 217,114
---------------------------------------------------------- -----------
Total 8,371,513
---------------------------------------------------------- -----------
VIRGIN ISLANDS--2.3%
----------------------------------------------------------
200,000 Virgin Islands HFA, SFM Revenue Refunding Bonds (Series
A), 5.70% (GNMA COL), 3/1/2004 AAA 204,822
---------------------------------------------------------- -----------
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $8,234,613) 8,576,335
---------------------------------------------------------- -----------
SHORT-TERM MUNICIPAL SECURITIES--4.6%
- -------------------------------------------------------------------------
PUERTO RICO--4.6%
----------------------------------------------------------
400,000 Puerto Rico Government Development Bank Weekly VRDNs
(Credit Suisse, Zurich LOC) AA+ 400,000
---------------------------------------------------------- -----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(AT AMORTIZED COST) 400,000
---------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $8,634,613)(a) $ 8,976,335
---------------------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $8,634,613. The
net unrealized appreciation of investments on a federal tax basis amounts to
$341,722 which is comprised of $346,164 appreciation and $4,442 depreciation
at November 30, 1996.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
Note: The categories of investments are shown as a percentage of net assets
($8,782,899) at November 30, 1996.
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
FSA -- Financial Security Assurance
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
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost
$8,634,613) $8,976,335
- ---------------------------------------------------------------------------------
Cash 43,358
- ---------------------------------------------------------------------------------
Income receivable 149,749
- ---------------------------------------------------------------------------------
Prepaid expenses 46,878
- ---------------------------------------------------------------------------------
Deferred expenses 7,223
- --------------------------------------------------------------------------------- ----------
Total assets 9,223,543
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $398,138
- ----------------------------------------------------------------------
Payable for shares redeemed 8,785
- ----------------------------------------------------------------------
Income distribution payable 33,721
- ---------------------------------------------------------------------- --------
Total liabilities 440,644
- --------------------------------------------------------------------------------- ----------
Net Assets for 879,104 shares outstanding $8,782,899
- --------------------------------------------------------------------------------- ----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $8,667,709
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 341,722
- ---------------------------------------------------------------------------------
Accumulated net realized loss on investments (226,532)
- --------------------------------------------------------------------------------- ----------
Total Net Assets $8,782,899
- --------------------------------------------------------------------------------- ----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ---------------------------------------------------------------------------------
$8,782,899 / 879,104 shares outstanding $9.99
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------
Interest $223,449
- ----------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------
Investment advisory fee $ 21,312
- ----------------------------------------------------------------------------
Administrative personnel and services fee 62,672
- ----------------------------------------------------------------------------
Custodian fees 8,884
- ----------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 9,141
- ----------------------------------------------------------------------------
Directors'/Trustees' fees 1,586
- ----------------------------------------------------------------------------
Auditing fees 8,296
- ----------------------------------------------------------------------------
Legal fees 1,281
- ----------------------------------------------------------------------------
Portfolio accounting fees 24,927
- ----------------------------------------------------------------------------
Shareholder services fee 10,656
- ----------------------------------------------------------------------------
Share registration costs 8,723
- ----------------------------------------------------------------------------
Printing and postage 5,307
- ----------------------------------------------------------------------------
Insurance premiums 1,830
- ----------------------------------------------------------------------------
Taxes 122
- ----------------------------------------------------------------------------
Miscellaneous 7,503
- ---------------------------------------------------------------------------- --------
Total expenses 172,240
- ----------------------------------------------------------------------------
Waivers and reimbursements --
- ----------------------------------------------------------------------------
Waiver of investment advisory fee $ (21,312)
- ----------------------------------------------------------------
Waiver of shareholder services fee (6,393)
- ----------------------------------------------------------------
Reimbursement of other operating expenses (125,165)
- ---------------------------------------------------------------- ---------
Total waivers and reimbursements (152,870)
- ---------------------------------------------------------------------------- --------
Net expenses 19,370
- ---------------------------------------------------------------------------------------- --------
Net investment income 204,079
- ---------------------------------------------------------------------------------------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------------
Net realized loss on investments (20,892)
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 234,263
- ---------------------------------------------------------------------------------------- --------
Net realized and unrealized gain on investments 213,371
- ---------------------------------------------------------------------------------------- --------
Change in net assets resulting from operations $417,450
- ---------------------------------------------------------------------------------------- --------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, 1996 MAY 31, 1996
----------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------
OPERATIONS--
- ------------------------------------------------------
Net investment income $ 204,079 $ 343,551
- ------------------------------------------------------
Net realized gain (loss) on investments ($20,892 net
loss and $14,757 net gain respectively, as computed
for federal tax purposes) (20,892) 47,388
- ------------------------------------------------------
Net change in unrealized appreciation (depreciation) 234,263 (101,917)
- ------------------------------------------------------ ----------- ----------
Change in net assets resulting from operations 417,450 289,022
- ------------------------------------------------------ ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS--
- ------------------------------------------------------
Distributions from net investment income (204,079) (343,551)
- ------------------------------------------------------ ----------- ----------
SHARE TRANSACTIONS--
- ------------------------------------------------------
Proceeds from sale of shares 2,833,312 10,235,445
- ------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 45,773 75,252
- ------------------------------------------------------
Cost of shares redeemed (2,684,834) (8,487,981)
- ------------------------------------------------------ ----------- ----------
Change in net assets resulting from share
transactions 194,251 1,822,716
- ------------------------------------------------------ ----------- ----------
Change in net assets 407,622 1,768,187
- ------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------
Beginning of period 8,375,277 6,607,090
- ------------------------------------------------------ ----------- ----------
End of period $ 8,782,899 $ 8,375,277
- ------------------------------------------------------ ----------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED 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 1996 1995 1994(a)
------------ ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.75 $9.79 $9.53 $10.00
- ---------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------
Net investment income 0.24 0.47 0.47 0.22
- ---------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.24 (0.04) 0.26 (0.47)
- --------------------------------------------- ----- ----- ----- ------
Total from investment operations 0.48 0.43 0.73 (0.25)
- --------------------------------------------- ----- ----- ----- ------
LESS DISTRIBUTIONS
- ---------------------------------------------
Distributions from net investment income (0.24) (0.47) (0.47) (0.22)
- --------------------------------------------- ----- ----- ----- ------
NET ASSET VALUE, END OF PERIOD $9.99 $9.75 $9.79 $9.53
- --------------------------------------------- ----- ----- ----- ------
TOTAL RETURN (b) 4.94% 4.41% 7.98% (2.52%)
- ---------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------
Expenses 0.45%* 0.45%* 0.45% 0.24%*
- ---------------------------------------------
Net investment income 4.79%* 4.78%* 5.05% 4.69%*
- ---------------------------------------------
Expense waiver/reimbursement (c) 3.59%* 4.08%*(d) 4.80%(d) 3.07%*
- ---------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------
Net assets, end of period (000 omitted) $8,783 $8,375 $6,607 $3,379
- ---------------------------------------------
Portfolio turnover 18% 46% 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) For the years ended May 31, 1996, and May 31, 1995, the adviser waived
$35,966 and $26,346, respectively, of the investment advisory fee, which
represents 0.50% and 0.50% of average net assets, and the adviser reimbursed
other operating expenses of $128,177 and $115,674, respectively, which
represents 1.78% and 2.20% of average net assets, to comply with certain
state expense limitations. The remainder of the waiver reimbursement is
voluntary. The 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
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Intermediate Municipal Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of three portfolios. 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. The investment objective of the Fund is to
provide current income exempt from federal regular income tax and the personal
income taxes imposed by the State of Ohio.
(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 -- Municipal bonds are valued by an independent
pricing service, taking into consideration yield, liquidity, risk, credit
quality, coupon, maturity, type of issue, and any other factors or market
data the pricing service deems relevant. Short-term securities are valued
at the prices provided by an independent pricing service. However,
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.
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, 1996, the Fund, for federal tax purposes, had a capital loss
carryforward of $193,820, 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:
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
--------------- -----------------
<S> <C>
2003 $ 179,063
2004 $ 14,757
</TABLE>
Additionally, net capital losses of $11,820 attributable to security
transactions incurred after October 31, 1995 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 over a period not to exceed five years from the Fund's
commencement date.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
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, 1996 MAY 31, 1996
----------------- ------------
<S> <C> <C>
- ------------------------------------------------------
Shares sold 289,983 1,037,604
- ------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 4,666 7,616
- ------------------------------------------------------
Shares redeemed (274,723) (861,086)
- ------------------------------------------------------ -------- ---------
Net change resulting from share transactions 19,926 184,134
- ------------------------------------------------------ -------- ---------
</TABLE>
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 0.50% of the Fund's average daily net assets.
FEDERATED OHIO INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
The Adviser may voluntarily choose to waive any portion of its fee and/or
reimburse certain operating expenses of the Fund. The Adviser can modify or
terminate this voluntary waiver and/or reimbursement at any time at its sole
discretion.
ADMINISTRATIVE FEE -- Federated Services Company ("FServ"), under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. The fee paid to FServ 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 0.25%
of average daily net assets of the Fund shares for the period. The fee paid to
FSS is used to finance 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 -- FServ, through its
subsidiary, Federated Shareholder Services Company ("FSSC") serves as transfer
and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the
size, type, and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES -- FServ 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 $55,182 were borne
initially by Adviser. The Fund has agreed to reimburse Adviser for the
organizational expenses during the five year period following effective date.
For the period ended November 30, 1996, the Fund paid $13,182 pursuant to this
agreement.
INTERFUND TRANSACTIONS -- During the period ended November 30, 1996, 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 $1,000,000 and $700,000, 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
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1996, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
Purchases $1,519,590
- -------------------------------------------------------------------------------- ----------
Sales $1,780,180
- -------------------------------------------------------------------------------- ----------
</TABLE>
(6) 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, 1996, 49.8% 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 percentage of investments insured
by or supported (backed) by a letter of credit from any one institution or
agency did not exceed 16.5% of total investments.
<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,
John E. Murray, Jr. Treasurer and Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
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, 1996
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
Cusip 458810306
007147 (1/97)
-----------------------------------
-----------------------------------
-----------------------------------
-----------------------------------
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present you with the Semi-Annual Report to Shareholders for
Federated Pennsylvania Intermediate Municipal Trust for the six-month period
ended November 30, 1996. 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.
The fund 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, the fund achieved a total return of 5.37%
through dividends totaling $0.24 per share and a 3% share price increase.**
Total assets stood at $16.0 million at the period's end.
Thank you for your confidence in the double-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,
LOGO
Glen R. Johnson
President
January 15, 1997
* 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
- --------------------------------------------------------------------------------
At the end of the six month period ended November 30, 1996 the municipal yield
curve remained considerably steeper than the Treasury yield curve. This was due
mainly to supply and demand imbalances which exist along different segments of
the maturity spectrum. Currently, the spread between bonds of 5 and 10 years in
maturity is in excess of 50 basis points while the spread in the same maturity
range of the Treasury yield curve is approximately 20 basis points. The ratio of
"AAA" rated general obligation municipal bond yields to Treasury bond yields
provides some indication as to the richness or cheapness of municipal bonds
versus comparable maturity Treasury securities. This ratio has narrowed, or
municipal bonds have become more expensive relative to Treasury securities, as a
result of significant institutional interest (property and casualty insurance
companies and commercial banks) in intermediate maturities.
Pennsylvania tax-exempt bonds continued to trade 10 to 15 basis points cheaper
than Ohio or Michigan paper as a result of credit quality and market supply
differences. The second half of 1996 became a better market environment for
fixed income investors. The Federal Reserve Board (the "Fed") remained on hold,
the economy was showing signs of slowing or providing at best moderate growth
and inflation remained under control. As a result, yields trended lower into the
winter of 1996 and have settled into a trading range around the 6.50% level. The
municipal bond market experienced a considerable uptick in supply as rates fell
during the second half of the year and finished approximately 14% ahead of last
year's supply figures, mainly with the assistance of additional refunding
activity. The presidential election ended quite favorably for the municipal
market with the threat of major tax reform dying with the republican
presidential candidates hopes for the White House. The major investment themes
which characterize the municipal bond market include narrow credit spreads, a
flat yield curve beyond the 15 year maturity range, the prevalence of bond
insurance and uncertainty as to the Fed's next move. As a result of these
conditions which currently exist in the marketplace, management is stressing
credit quality and attempting to swap into higher quality credits with minimal
yield give up. At this late stage of the business cycle it is important to pay
attention to the trade off between risk and return. The traditionally higher
yielding sectors of the municipal market (such as healthcare, housing, and
electric utilities) have performed strongly this year as investors have chased
yield and we are assessing our exposures to these sectors and making appropriate
adjustments in the portfolio. We feel that structure will continue to be an
important aspect of performance in 1997 so particular attention must be paid to
call protection, coupon and convexity.
The fund's performance over the past six months reflects the fund's intermediate
maturity and duration position relative to the fund's peer group. The fund's
total return was 5.37% for the period from June 1, 1996 to November 30, 1996.*
The concentration of high coupon premium bonds in the portfolio helped to dampen
net asset value volatility over the period. However, the fund is managed
predominately for tax-exempt income and posted a 30 day-distribution rate of
4.87% as of November 30, 1996, which is comparable to a tax-equivalent yield of
8.06%, assuming a top marginal tax rate of 39.6%. The Fund's 30-day SEC yield
for the period ended November 30, 1996, was 4.53%.*
* 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.
FEDERATED PENNSYLVANIA 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--98.6%
- ------------------------------------------------------------------------
PENNSYLVANIA--96.9%
----------------------------------------------------------
$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 $ 368,028
----------------------------------------------------------
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 316,515
----------------------------------------------------------
300,000 Allegheny County, PA HDA, Revenue Bonds (Series A), 6.00%
(South Hills Health System)/(Original Issue Yield: 6.10%),
5/1/2004 AAA 317,256
----------------------------------------------------------
500,000 Allegheny County, PA, Airport Revenue Bonds (Series A),
5.30% (Pittsburgh International Airport)/(MBIA INS)/
(Original Issue Yield: 5.35%), 1/1/2003 AAA 515,705
----------------------------------------------------------
100,000 Allegheny County, PA, UT GO Bonds (Series C-39), 6.00%
(AMBAC INS)/(Original Issue Yield: 6.098%), 5/1/2012 AAA 104,775
----------------------------------------------------------
100,000 Allegheny County, PA, UT GO Bonds, 5.40% (MBIA INS)/
(Original Issue Yield: 5.50%), 9/15/2005 AAA 104,750
----------------------------------------------------------
100,000 Altoona, PA Area School District, UT GO Bonds, 5.35%
(FGIC INS)/(Original Issue Yield: 5.40%), 1/15/2004 AAA 104,725
----------------------------------------------------------
100,000 Altoona, PA City Authority, Water Revenue Bonds, 5.60%
(FGIC INS)/(Original Issue Yield: 5.699%), 11/1/2004 AAA 106,881
----------------------------------------------------------
490,000 Ben Avon Borough,PA, GO Bonds, Series 1996, 4.95%,
2/1/2005 NR 498,036
----------------------------------------------------------
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 157,309
----------------------------------------------------------
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 106,168
----------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
----------------------------------------------------------
$150,000 Cambria County, PA, UT GO (Series A), 5.40% (FGIC INS)/
(Original Issue Yield: 5.50%), 8/15/2004 AAA $ 158,053
----------------------------------------------------------
100,000 Central Bucks, PA School District, UT GO Bonds, 5.40%
(FGIC INS), 5/15/2003 AAA 103,069
----------------------------------------------------------
100,000 Central Bucks, PA School District, UT GO Bonds, 6.00%,
11/15/2003 Aa 109,158
----------------------------------------------------------
300,000 Chester County, PA HEFA, Hospital Revenue Bonds (Series
1996A), 5.20% (Chester County Hospital, PA)/
(MBIA INS)/(Original Issue Yield: 5.35%), 7/1/2004 AAA 311,115
----------------------------------------------------------
100,000 Commonwealth of Pennsylvania, UT GO Bonds (Second Series
A), 6.30% (MBIA INS)/(Original Issue Yield: 6.35%),
11/1/2002 AAA 109,659
----------------------------------------------------------
100,000 Commonwealth of Pennsylvania, UT GO Bonds (Series A),
6.50% (Original Issue Yield: 6.60%), 11/15/2010 AA- 108,355
----------------------------------------------------------
145,000 Commonwealth of Pennsylvania, UT GO Refunding Bonds (First
Series), 5.30%, 5/1/2004 AA- 151,641
----------------------------------------------------------
150,000 Dauphin County, PA, Revenue Bonds, 6.00% (MBIA INS),
6/1/2002 AAA 157,527
----------------------------------------------------------
150,000 Dauphin County, PA, Revenue Bonds, 6.10% (MBIA INS),
6/1/2003 AAA 157,947
----------------------------------------------------------
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 350,327
----------------------------------------------------------
300,000 Delaware County Authority, PA, Hospital Revenue Bonds,
5.90% (Riddle Memorial Hospital)/(Original Issue Yield:
6.10%), 1/1/2002 A- 313,215
----------------------------------------------------------
500,000 Dover, PA Area School District, UT GO Bonds (Series 1996),
5.30% (AMBAC INS), 4/1/2005 AAA 520,990
----------------------------------------------------------
125,000 Eastern York, PA School District, UT GO Bonds, 5.55%
(MBIA INS), 6/1/2003 AAA 132,151
----------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
----------------------------------------------------------
$100,000 Elizabethtown, PA Area School District, UT GO Bonds,
5.45%, 2/15/2004 A $ 101,918
----------------------------------------------------------
205,000 Fayette County, PA Hospital Authority, Healthcare Facility
Revenue Bonds (Series 1996A), 5.35% (Mount Macrina
Manor)/(National City, Pennsylvania LOC), 9/1/2006 A- 207,038
----------------------------------------------------------
220,000 Fayette County, PA Hospital Authority, Healthcare Facility
Revenue Bonds (Series 1996A), 5.45% (Mount Macrina
Manor)/(National City, Pennsylvania LOC), 9/1/2007 A- 222,180
----------------------------------------------------------
230,000 Fayette County, PA Hospital Authority, Healthcare Facility
Revenue Bonds (Series 1996A), 5.55% (Mount Macrina
Manor)/(National City, Pennsylvania LOC), 9/1/2008 A- 232,272
----------------------------------------------------------
500,000 Fayette County, PA Hospital Authority, Hospital Revenue
Bonds (Series 1996A), 5.20% (Uniontown Hospital)/
(Connie Lee INS)/(Original Issue Yield: 5.30%), 6/15/2004 AAA 508,720
----------------------------------------------------------
125,000 Franklin Park Boro, PA, GO Bonds, 5.50% (AMBAC INS),
11/1/2004 AAA 133,376
----------------------------------------------------------
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 540,580
----------------------------------------------------------
350,000 Lehigh County, PA General Purpose Authority, General
Purpose Authority Hospital Revenue Bonds, 5.30%
(Lehigh Valley Hospital Inc.)/(MBIA INS)/(Original Issue
Yield: 5.40%), 7/1/2005 AAA 363,682
----------------------------------------------------------
575,000 Lehigh County, PA General Purpose Authority, Hospital
Refunding Revenue Bonds (Series 1996A), 5.25% (Muhlenberg
Hospital Center)/(Original Issue Yield: 5.30%), 7/15/2004 A 584,355
----------------------------------------------------------
325,000 Lower Dauphin, PA School District, UT GO Bonds,
5.75% (AMBAC INS)/(United States Treasury PRF),
3/15/2000 (@100) AAA 340,581
----------------------------------------------------------
310,000 Luzerne County, PA Flood Protection Authority, UT GO
Bonds, 5.00% (MBIA INS)/(Original Issue Yield: 5.15%),
7/15/2006 AAA 316,758
----------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
----------------------------------------------------------
$330,000 McKeesport, PA Area School District, UT GO Bonds (Series
A), 5.40% (FSA INS)/(Original Issue Yield: 5.50%),
10/1/2006 AAA $ 346,550
----------------------------------------------------------
180,000 North Penn, PA Water Authority, Revenue Bonds, 5.80% (FGIC
INS)/(Original Issue Yield: 5.85%), 11/1/2005 AAA 191,925
----------------------------------------------------------
110,000 North Penn, PA Water Authority, Revenue Bonds, 6.10% (FGIC
INS), 11/1/2003 AAA 120,358
----------------------------------------------------------
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 540,295
----------------------------------------------------------
150,000 Penn Trafford, PA School District, UT GO Bonds, 5.55%
(MBIA INS), 5/1/2006 AAA 157,761
----------------------------------------------------------
100,000 Pennsylvania HFA, SFM Revenue Bonds (Series 38), 5.30%,
4/1/2003 AA 102,085
----------------------------------------------------------
100,000 Pennsylvania HFA, SFM Revenue Bonds (Series 41-B), 5.90%,
10/1/2005 AA 102,691
----------------------------------------------------------
100,000 Pennsylvania HFA, SFM Revenue Bonds (Series 42), 5.90%,
10/1/2004 AA 102,973
----------------------------------------------------------
345,000 Pennsylvania HFA, SFM Revenue Bonds (Series 43), 6.35%,
4/1/2001 AA 358,955
----------------------------------------------------------
500,000 Pennsylvania Intergovernmental Coop Authority, Special Tax
Revenue Refunding Bonds, Philadelphia Funding Program,
5.20% (FGIC INS)/(Original Issue Yield: 5.32%), 6/15/2007 AAA 510,360
----------------------------------------------------------
125,000 Pennsylvania State Higher Education Facilities Authority,
Health Services Revenue Bonds (Series A), 6.00%
(University of Pennsylvania), 1/1/2003 AA- 133,990
----------------------------------------------------------
500,000 Pennsylvania State Higher Education Facilities Authority,
Health Services Revenue Bonds (Series B of 1996), 5.10%
(University of Pennsylvania)/(Original Issue Yield:
5.15%), 1/1/2005 AA 513,140
----------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
----------------------------------------------------------
$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 $ 210,644
----------------------------------------------------------
110,000 Pennsylvania State Higher Education Facilities Authority,
University Revenue Bonds (Series 1996), 5.25% (Drexel
University)/(PNC Bank, N.A. LOC)/(Original Issue Yield:
5.35%), 8/1/2005 A1 111,399
----------------------------------------------------------
150,000 Pennsylvania State Higher Education Facilities Authority,
University Revenue Bonds (Series 1996), 5.35% (Drexel
University)/(PNC Bank, N.A. LOC)/(Original Issue Yield:
5.45%), 8/1/2006 A1 151,904
----------------------------------------------------------
475,000 Pennsylvania State Higher Education Facilities Authority,
University Revenue Bonds (Series 1996), 5.45% (Drexel
University)/(PNC Bank, N.A. LOC)/(Original Issue Yield:
5.55%), 8/1/2007 A1 480,420
----------------------------------------------------------
125,000 Pennsylvania State Turnpike Commission, Turnpike Revenue
Bonds (Series P), 5.45%, 12/1/2002 A 131,329
----------------------------------------------------------
100,000 Pennsylvania State University, Second Revenue Refunding
Bonds, 5.55% (AMBAC INS)/(Original Issue Yield: 5.70%),
8/15/2006 AAA 105,074
----------------------------------------------------------
125,000 Perkiomen Valley School District, PA, UT GO Bonds, 5.50%,
2/1/2004 A1 130,458
----------------------------------------------------------
300,000 Philadelphia, PA Gas Works, Revenue Bonds (14th Series),
5.50% (FSA INS)/(Original Issue Yield: 6.10%), 7/1/2004 AAA 316,137
----------------------------------------------------------
480,000 Philadelphia, PA Hospitals & Higher Education Facilities
Authority, Hospital Revenue & Refunding Bonds, 5.65%
(Albert Einstein Medical Center, PA)/(Original Issue
Yield: 5.75%), 10/1/2006 A 494,568
----------------------------------------------------------
100,000 Philadelphia, PA Hospitals & Higher Education Facilities
Authority, Hospital Revenue Bonds (Series A of 1996)
Daily VRDNs (Children's Hospital of Philadelphia)/
(Morgan Guaranty Trust Co., New York LIQ) AA 100,000
----------------------------------------------------------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
----------------------------------------------------------
$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 $ 101,608
----------------------------------------------------------
150,000 Philadelphia, PA Water & Wastewater System, Revenue Bonds,
5.50% (FGIC INS), 6/15/2003 AAA 158,636
----------------------------------------------------------
100,000 Richland School District, PA, UT GO Bonds, 5.30%
(MBIA INS)/(Original Issue Yield: 5.45%), 11/1/2003 AAA 104,800
----------------------------------------------------------
125,000 Solanco, PA School District, UT GO Bonds, 5.60% (FGIC
INS), 2/15/2004 AAA 132,470
----------------------------------------------------------
100,000 Spring Ford, PA School District, UT GO Refunding Bonds
(Series AA), 5.80% (FGIC INS), 8/1/2005 AAA 103,817
----------------------------------------------------------
200,000 Swarthmore Boro Authority PA, College Revenue Bonds, 6.00%
(Swarthmore College)/(Original Issue Yield: 6.10%),
9/15/2006 AA 215,300
----------------------------------------------------------
185,000 Warren County, PA School District, UT GO Bonds, 5.85%
(FGIC INS), 9/1/2001 AAA 193,739
----------------------------------------------------------
110,000 Warren County, PA School District, UT GO Bonds, 6.10%
(FGIC INS), 9/1/2003 AAA 115,907
---------------------------------------------------------- -----------
Total 15,474,108
---------------------------------------------------------- -----------
VIRGIN ISLANDS--1.1%
----------------------------------------------------------
170,000 Virgin Islands HFA, SFM Revenue Refunding Bonds (Series
A), 5.80% (GNMA COL), 3/1/2005 AAA 173,670
---------------------------------------------------------- -----------
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $14,909,600) 15,647,778
---------------------------------------------------------- -----------
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- --------- ---------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--0.6%
- ------------------------------------------------------------------------
PUERTO RICO--0.6%
----------------------------------------------------------
$100,000 Puerto Rico Government Development Bank Weekly VRDNs
(Credit Suisse, Zurich LOC) (at amortized cost) AA+ $ 100,000
---------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $15,109,600)(a) $15,747,778
---------------------------------------------------------- -----------
</TABLE>
At November 30, 1996, 8.0% of the total investments at market value were subject
to alternative minimum tax.
(a) The cost of investments for federal tax purposes amounts to $15,109,600. The
net unrealized appreciation of investments on a federal tax basis amounts to
$638,178, which is comprised of all appreciation at November 30, 1996.
* Please refer to the Appendix of the Statement of Additional Information form
explanation of credit ratings.
Note: The categories of investments are shown as a percentage of net assets
($15,986,628) at November 30, 1996.
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
The following acronym(s) are used throughout this portfolio:
<TABLE>
<S> <C> <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
HEFA -- Health and Education Facilities Authority
HFA -- Housing Finance Authority
INS -- Insured
LIQ -- Liquidity Agreement
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance
PRF -- Prerefunded
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
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $15,109,600) $15,747,778
- ---------------------------------------------------------------------------------
Income receivable 239,815
- ---------------------------------------------------------------------------------
Receivable for shares sold 72,800
- ---------------------------------------------------------------------------------
Prepaid expenses 41,261
- ---------------------------------------------------------------------------------
Deferred expenses 7,078
- --------------------------------------------------------------------------------- -----------
Total assets 16,108,732
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Income distribution payable 69,648
- --------------------------------------------------------------------
Payable to bank 52,456
- -------------------------------------------------------------------- ----------
Total liabilities 122,104
- --------------------------------------------------------------------------------- -----------
Net Assets for 1,553,446 shares outstanding $15,986,628
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $15,555,401
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 638,178
- ---------------------------------------------------------------------------------
Accumulated net realized loss on investments (206,951)
- --------------------------------------------------------------------------------- -----------
Total Net Assets $15,986,628
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ---------------------------------------------------------------------------------
$15,986,628 / 1,553,446 shares outstanding $10.29
- --------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------
Interest $415,288
- -------------------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------------------
Investment advisory fee $ 39,345
- ------------------------------------------------------------------------
Administrative personnel and services fee 62,672
- ------------------------------------------------------------------------
Custodian fees 8,992
- ------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 8,480
- ------------------------------------------------------------------------
Directors'/Trustees' fees 1,586
- ------------------------------------------------------------------------
Auditing fees 7,686
- ------------------------------------------------------------------------
Legal fees 1,464
- ------------------------------------------------------------------------
Portfolio accounting fees 26,947
- ------------------------------------------------------------------------
Shareholder services fee 19,673
- ------------------------------------------------------------------------
Share registration costs 7,625
- ------------------------------------------------------------------------
Printing and postage 5,185
- ------------------------------------------------------------------------
Insurance premiums 1,769
- ------------------------------------------------------------------------
Miscellaneous 7,503
- ------------------------------------------------------------------------ ---------
Total expenses 198,927
- ------------------------------------------------------------------------
Waivers and reimbursements--
- ------------------------------------------------------------------------
Waiver of investment advisory fee $ (39,345)
- ------------------------------------------------------------
Waiver of shareholder services fee (11,017)
- ------------------------------------------------------------
Reimbursement of other operating expenses (112,808)
- ------------------------------------------------------------ ---------
Total waivers and reimbursements (163,170)
- ------------------------------------------------------------------------ ---------
Net expenses 35,757
- ------------------------------------------------------------------------------------- --------
Net investment income 379,531
- ------------------------------------------------------------------------------------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -------------------------------------------------------------------------------------
Net realized loss on investments (18,087)
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 479,565
- ------------------------------------------------------------------------------------- --------
Net realized and unrealized gain on investments 461,478
- ------------------------------------------------------------------------------------- --------
Change in net assets resulting from operations $841,009
- ------------------------------------------------------------------------------------- --------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, 1996 MAY 31, 1996
----------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 379,531 $ 547,070
- ---------------------------------------------------------
Net realized gain (loss) on investments ($18,087 and
$87,417 net losses, respectively, as computed for federal
tax purposes) (18,087) (26,717)
- ---------------------------------------------------------
Net change in unrealized appreciation (depreciation) 479,565 (126,841)
- --------------------------------------------------------- ------------ -----------
Change in net assets resulting from operations 841,009 393,512
- --------------------------------------------------------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (379,531) (547,070)
- --------------------------------------------------------- ------------ -----------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 2,761,169 13,768,008
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 64,974 118,987
- ---------------------------------------------------------
Cost of shares redeemed (2,355,199) (7,023,515)
- --------------------------------------------------------- ------------ -----------
Change in net assets resulting from share
transactions 470,944 6,863,480
- --------------------------------------------------------- ------------ -----------
Change in net assets 932,422 6,709,922
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 15,054,206 8,344,284
- --------------------------------------------------------- ------------ -----------
End of period $15,986,628 $15,054,206
- --------------------------------------------------------- ------------ -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED MAY 31,
1996 1996 1995 1994(a)
------------- ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $10.06 $ 9.85 $10.00
- -----------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------
Net investment income 0.24 0.49 0.48 0.23
- -----------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.29 (0.06) 0.21 (0.15)
- ----------------------------------------------- ------- ------ ------ -------
Total from investment operations 0.53 0.43 0.69 0.08
- ----------------------------------------------- ------- ------ ------ -------
LESS DISTRIBUTIONS
- -----------------------------------------------
Distributions from net investment income (0.24) (0.49) (0.48) (0.23)
- ----------------------------------------------- ------- ------ ------ -------
NET ASSET VALUE, END OF PERIOD $ 10.29 $10.00 $10.06 $ 9.85
- ----------------------------------------------- ------- ------ ------ -------
TOTAL RETURN (b) 5.37% 4.27% 7.35% 0.76%
- -----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------
Expenses 0.45%* 0.45% 0.45% 0.25% *
- -----------------------------------------------
Net investment income 4.82%* 4.81% 5.11% 4.76% *
- -----------------------------------------------
Expense waiver/reimbursement (c) 2.07%* 2.69%(d) 3.95%(d) 5.06% *
- -----------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------
Net assets, end of period (000 omitted) $15,987 $15,054 $8,344 $2,881
- -----------------------------------------------
Portfolio turnover 23% 11% 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) For the years ended May 31, 1996, and May 31, 1995, the adviser waived
$45,372 and $32,714, respectively, of the investment advisor fee, which
represents 0.40% and 0.50% of average net assets, and for the year ended May
31, 1995 the Adviser reimbursed other operating expenses of $86,896, which
represents 1.33% of average net assets, to comply with certain state expense
limitations. The remainder of the waiver /reimbursement is voluntary. The
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 PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Intermediate Municipal Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of three portfolios. 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.
The investment objective of the Fund is to provide current income exempt from
federal regular income tax and the personal income taxes imposed by the
Commonwealth of Pennsylvania.
(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--Municipal bonds are valued by an independent pricing
service, taking into consideration yield, liquidity, risk, credit quality,
coupon, maturity, type of issue, and any other factors or market data the
pricing service deems relevant. Short-term securities are valued at the
prices provided by an independent pricing service. However, 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.
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, 1996, the Fund, for federal tax purposes, had a capital loss
carryforward of $162,148, 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 PENNSYLVANIA 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>
2003 $74,731
2004 $87,417
</TABLE>
Additionally, net capital losses of $26,717 attributable to security
transactions incurred after October 31, 1995 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 over a period not to exceed five years from the Fund's
commencement date.
USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of 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, 1996 MAY 31, 1996
- --------------------------------------------------------- ----------------- ------------
<S> <C> <C>
Shares sold 274,146 1,358,404
- ---------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 6,437 11,708
- ---------------------------------------------------------
Shares redeemed (232,715) (694,299)
- --------------------------------------------------------- -------- -----------
Net change resulting from share transactions 47,868 675,813
- --------------------------------------------------------- -------- -----------
</TABLE>
FEDERATED 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 0.50% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive any 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 Services Company ("FServ"), under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. The fee paid to FServ 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 FSS up to 0.25% of
average daily net assets of the Fund for the period. The fee paid to FSS is used
to finance 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--FServ, through its
subsidiary, Federated Shareholder Services Company ("FSSC") serves as transfer
and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the
size, type, and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ 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 and start-up administrative service
expenses of $56,196 were borne initially by the Adviser. The Fund has agreed to
reimburse the Adviser for the organizational and start-up administrative
expenses during the five year period following effective date. For the period
ended November 30, 1996, the Fund paid $13,425 pursuant to this agreement.
INTERFUND TRANSACTIONS--During the period ended November 30, 1996, the Trust
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common
Directors/Trustees, and/or common Officers. These purchase and sale transactions
were made at current market value pursuant to Rule 17a-7 under the Act amounting
to $6,600,000 and $7,800,000, 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
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1996, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
Purchases $4,115,024
- -------------------------------------------------------------------------------- ----------
Sales $3,528,895
- -------------------------------------------------------------------------------- ----------
</TABLE>
(6) 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, 1996, 65.4% 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 percentage of investments insured
by or supported (backed) by a letter of credit from any one institution or
agency did not exceed 19.5% of total investments.
<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,
John E. Murray, Jr. Treasurer and Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
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.
