PRESIDENT'S MESSAGE
Dear Investor:
I am pleased to present the Semi-Annual Report for Federated Intermediate
Municipal Trust, a portfolio of Intermediate Municipal Trust. The report covers
the six-month period from June 1, 1997, through November 30, 1997, which is the
first half of the fund's fiscal year. It begins with an investment review, which
is a brief commentary on the municipal market and fund strategy from the
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 by
investing in a portfolio of intermediate-term securities issued by
municipalities across the U.S.*
Over the six-month reporting period, the fund achieved a total return of 3.89%**
through dividends totaling $0.27 per share and a 1% share price increase. Assets
totaled $217 million at the reporting period's end.
Thank you for relying on the tax-free earning power of Federated Intermediate
Municipal Trust to help you keep more of what you earn. We will continue to keep
you up to date on the fund's performance, and we welcome your questions,
comments, or suggestions.
Sincerely,
[Graphic]
Glen R. Johnson
President
January 15, 1998
* Income may be subject to the federal alternative minimum tax and state and
local taxes.
** Performance quoted represents past performance and is not indicative of
future results. 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
MARKET OVERVIEW
The municipal bond market was driven by the supply of and demand for municipal
securities over the six-month reporting period. As a result of declining nominal
interest rates, issuers came to market to borrow additional funds at low
interest rates and to refund outstanding higher interest rate debt. As a result,
the supply of new issue municipal bonds has been considerably higher than most
forecasts made at the beginning of the fiscal year. Interest rates declined from
4.90% to 4.59% for ten-year AAA-rated municipal bonds over the six-month
reporting period. Also, the ratio of ten-year AAA-rated municipal bond yields to
ten-year Treasury bond yields widened from 73.0% to 78.5%, which reflects the
municipal bond market's relative under-performance versus treasury securities
over the reporting period. This relative performance difference between
municipal and Treasury bonds was due mainly to the supply and demand situation
which existed in the municipal market this year.
FUND STRATEGY
The primary goal of the fund is to maximize the tax-exempt income which is
distributed to shareholders. Management concentrated on "couponing up" or
swapping into bonds with better income characteristics over the six-month
reporting period. As a result of very tight credit quality spreads in the
municipal bond market, investors are not being paid for taking additional credit
risk. Because of this fact, the focus has been on higher-quality bonds in the
fund.
FUND PERFORMANCE
For the six-month reporting period ended November 30, 1997, the fund produced a
total return of 3.89%.* Tax-free dividends totaled $0.27 per share. The 30-day
current net yield on November 30, 1997, was 4.02.** The fund's yield is very
competitive when compared with other intermediate funds, which reflects the
focus on tax-free income. The fund's total return has lagged to some degree over
the reporting period because of its shorter-maturity, higher-quality profile,
relative to some of its competitors.
MARKET OUTLOOK
Our outlook for the fixed-income markets in general and municipal bonds in
particular is still very constructive. The inflation outlook remains favorable,
real economic growth is showing signs of moderating and the Federal Reserve
Board has remained on the sidelines as far as any adjustments to short-term
lending rates. The municipal bond market could be specifically impacted by
potential changes in the federal tax laws. However, significant tax law changes
are not expected in 1998. The wild card continues to be the effect of the "Asian
Flu" on the U.S. economy.
* Performance quoted reflects past performance and is not indicative of future
results. 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.
** The 30-day current net yield is calculated by dividing the investment income
per share for the prior 30 days by the maximum offering price per share on that
date. The figure is compounded and annualized.
PORTFOLIO OF INVESTMENTS
FEDERATED INTERMEDIATE MUNICIPAL TRUST
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--101.3%
ALABAMA--0.7%
$ 1,500,000 Alabama Water PCA, PCR Bonds, 6.35% (AMBAC INS), AAA $ 1,611,315
8/15/2001
ALASKA--4.5%
7,000,000 Alaska State Housing Finance Corp., General AAA 7,209,020
Mortgage Revenue Bonds (Series A), 5.65% (MBIA
INS), 12/1/2012
2,500,000 Alaska State Housing Finance Corp., Mortgage AAA 2,506,900
Revenue Bonds (Series 1997 A-1), 5.50% (Original
Issue Yield: 5.531%), 12/1/2017
TOTAL 9,715,920
ARIZONA--3.1%
1,500,000 Phoenix, AZ, UT GO Refunding Bonds (Series A), AA+ 1,621,995
7.40%, 7/1/2000
5,000,000 Salt River Project, AZ Agricultural Improvement AA 5,114,400
& Power District, Electric System Revenue Bonds
(Series A), 7.10%, 1/1/2000
TOTAL 6,736,395
CALIFORNIA--3.0%
2,250,000 California State, UT GO Bonds,Series AV, 7.80%, A+ 2,472,885
10/1/2000
1,800,000 Los Angeles, CA Department of Water & Power, A+ 2,007,288
Electric Plant Revenue Bonds, 2nd Issue, 9.00%,
6/1/2000
1,875,000 Los Angeles, CA Department of Water & Power, A+ 2,167,744
Electric Plant Revenue Bonds, 2nd Issue, 9.00%,
6/1/2001
TOTAL 6,647,917
COLORADO--0.5%
1,000,000 Colorado HFA, Single Family Mortgage Revenue Aa2 1,105,940
Bonds (Series 1997C-3), 6.75%, 5/1/2017
FLORIDA--2.5%
2,000,000 Florida State Board of Education Administration, AA+ 2,140,520
UT GO Capital Outlay Bonds (Series C), 6.25%
(Florida State), 6/1/2001
3,000,000 Florida State Board of Education Administration, AA+ 3,186,510
UT GO Capital Outlay Bonds, 6.00% (Florida
State), 6/1/2001
TOTAL 5,327,030
GEORGIA--4.0%
2,000,000 Georgia Municipal Electric Authority, Revenue A 2,095,180
Bonds (Series U), 6.50%, 1/1/2000
1,000,000 Georgia Municipal Electric Authority, Revenue A 1,070,350
Bonds (Series U), 6.60%, 1/1/2001
5,000,000 Georgia State, UT GO Bonds (Series A), 7.70%, AAA 5,524,850
2/1/2001
TOTAL 8,690,380
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
HAWAII--4.5%
$ 5,000,000 Hawaii State, UT GO Bonds (Series BT), 8.00%, A+ $ 5,547,850
2/1/2001
1,000,000 Hawaii State, UT GO Bonds (Series BU), 5.85% A+ 1,058,360
(Original Issue Yield: 5.95%), 11/1/2001
3,000,000 Honolulu, HI City & County, UT GO Bonds (Series AA 3,209,640
A), 6.30% (Original Issue Yield: 6.40%),
8/1/2001
TOTAL 9,815,850
ILLINOIS--5.8%
50,000 Du Page, IL Water Commission, GO UT Bonds, AA+ 52,697
5.95%, 3/1/2001
3,000,000 Du Page, IL Water Commission, UT GO Bonds, AA+ 3,208,080
6.05%, 3/1/2002
90,000 Illinois Health Facilities Authority, Revenue AA 93,469
Bonds, 6.40% (Northwestern Memorial Hospital),
8/15/1999
3,800,000 Illinois Health Facilities Authority, Revenue AA 3,938,776
Refunding Bonds (Series A), 5.70% (Advocate
Health Care Network)/(Original Issue Yield:
5.75%), 8/15/2011
3,000,000 Illinois Municipal Electric Agency, Power Supply AAA 3,175,470
System Revenue Bonds (Series A), 6.20% (AMBAC
INS), 2/1/2001
2,000,000 University of Illinois, Auxiliary Facilities AA- 2,138,280
Revenue Bonds, 6.40% (Original Issue Yield:
6.45%), 4/1/2001
TOTAL 12,606,772
INDIANA--2.3%
4,800,000 Indiana Health Facilty Financing Authority, AA 4,939,296
Hospital Revenue Bonds (Series 1996A), 5.50%
(Clarian Health Partners, Inc.)/(Original Issue
Yield: 5.65%), 2/15/2010
KANSAS--1.5%
2,000,000 Sedgwick & Shawnee Counties, KS, Single Family Aaa 2,210,000
Mortgage Revenue Bonds (Series 1997A-2), 5.50%
(GNMA Collateralized Home Mortgage Program COL),
6/1/2029
1,000,000 Sedgwick County, KS, Single Family Mortgage Aaa 1,073,570
Revenue Bonds (Series 1997A-2), 6.50% (GNMA
Collateralized Home Mortgage Program COL),
12/1/2016
TOTAL 3,283,570
MAINE--1.4%
3,000,000 Maine Municipal Bond Bank, Revenue Bonds (Series AAA 3,031,500
1997D), 5.35% (AMBAC INS), 11/1/2017
MARYLAND--1.0%
1,000,000 University of Maryland, Auxiliary Facility & AA+ 1,060,620
Tuition Revenue Bonds (Series A), 5.80%
(Original Issue Yield: 5.85%), 2/1/2002
1,000,000 Washington Suburban Sanitation District, MD, GO AA 1,104,680
UT Revenue Bonds (Second Series), 6.90% (United
States Treasury PRF), 6/1/2001 (@102)
TOTAL 2,165,300
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
MICHIGAN--5.0%
$ 2,000,000 Michigan State Building Authority, Revenue Bonds AAA $ 2,113,560
(Series II), 6.25% (AMBAC INS)/(Original Issue
Yield: 6.35%), 10/1/2000
3,705,000 Michigan State Housing Development Authority, AAA 3,850,495
(Series B) Rental Housing Revenue Bonds, 5.65%
(MBIA INS), 10/1/2007
3,605,000 Michigan State Housing Development Authority, AAA 3,744,369
(Series B) Rental Housing Revenue Bonds, 5.65%
(MBIA INS), 4/1/2007
1,000,000 Royal Oak, MI Hospital Finance Authority, Aa3 1,065,350
Revenue Refunding Bonds, 7.40% (William Beaumont
Hospital, MI), 1/1/2000
TOTAL 10,773,774
MISSOURI--5.0%
5,000,000 Missouri State HEFA, Health Facilities Revenue AA 5,449,450
Bonds (Series A), 6.00% (BJC Health System,
MO)/(Original Issue Yield: 6.05%), 5/15/2005
5,000,000 Missouri State HEFA, Health Facilities Revenue AA 5,438,350
Bonds (Series A), 6.10% (BJC Health System,
MO)/(Original Issue Yield: 6.15%), 5/15/2006
TOTAL 10,887,800
NEVADA--0.5%
1,000,000 Clark County, NV School District, LT GO Bonds AAA 1,130,520
(Series A), 9.75% (MBIA INS), 6/1/2000
NEW HAMPSHIRE--1.3%
2,555,000 New Hampshire State, UT GO Bonds (Series A), AA+ 2,745,373
6.40%, 6/15/2001
NEW JERSEY--0.0%
100,000 New Jersey State Transportation Trust Fund #Aaa 102,813
Agency, Revenue Bonds, 5.90%, 6/15/1999
NEW YORK--6.6%
6,000,000 New York City, NY, UT GO Bonds (Series E), 5.30% AAA 6,197,220
(FGIC INS)/(Original Issue Yield: 5.40%),
8/1/2009
2,500,000 New York State Environmental Facilities Corp., A- 2,749,450
State Water Pollution Control Bonds (Series
1994E), 6.15% (Original Issue Yield: 6.25%),
6/15/2004
4,000,000 New York State Thruway Authority, Highway & AAA 4,278,440
Bridge Fund Revenue Bonds (Series B), 5.625%
(FGIC INS)/(Original Issue Yield: 5.75%),
4/1/2005
1,000,000 Triborough Bridge & Tunnel Authority, NY, A+ 1,073,170
Revenue Bonds (Series S), 6.625% (Original Issue
Yield: 6.70%), 1/1/2001
TOTAL 14,298,280
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
NORTH CAROLINA--6.7%
$ 2,720,000 Charlotte-Mecklenburg Hospital Authority, NC, AA $ 2,891,387
Health Care Revenue Bonds (Series 1996A), 5.50%
(Charlotte-Mecklenburg Hospital, NC)/(Original
Issue Yield: 5.60%), 1/15/2008
1,275,000 Charlotte-Mecklenburg Hospital Authority, NC, AA 1,351,959
Refunding Revenue Bonds, 5.90% (Original Issue
Yield: 5.95%), 1/1/2002
2,080,000 Charlotte-Mecklenburg Hospital Authority, NC, AA 2,210,770
Refunding Revenue Bonds, 5.90% (Original Issue
Yield: 5.95%), 1/1/2002
5,350,000 North Carolina Municipal Power Agency No. 1, A- 5,697,001
Catawba Electric Revenue Refunding Bonds, 6.00%
(Original Issue Yield: 6.05%), 1/1/2004
2,000,000 North Carolina Municipal Power Agency No. 1, A- 2,323,360
Catawba Electric Revenue Refunding Bonds, 7.25%,
1/1/2007
TOTAL 14,474,477
NORTH DAKOTA--0.5%
1,100,000 Grand Forks, ND, Health Care System Revenue AAA 1,122,803
Bonds (Series 1997), 5.40% (Altru Health System
Obligated Group)/(MBIA INS)/(Original Issue
Yield: 5.50%), 8/15/2011
OHIO--5.0%
100,000 Columbus, OH, GO UT Refunding Bonds, 5.80%, AAA 103,634
1/1/2000
2,500,000 Hamilton County, OH Sewer System, Improvement & AA- 2,645,700
Revenue Refunding Bonds (Series A), 6.20%,
12/1/2000
3,195,000 Lucas County, OH, Hospital Revenue Refunding AAA 3,395,071
Bonds (Series 1996), 5.50% (ProMedica Healthcare
Obligated Group)/(MBIA INS)/(Original Issue
Yield: 5.75%), 11/15/2008
2,840,000 Lucas County, OH, Hospital Revenue Refunding AAA 3,142,914
Bonds (Series 1996), 6.00% (ProMedica Healthcare
Obligated Group)/(MBIA INS), 11/15/2007
1,400,000 Montgomery County, OH Health Facilities AAA 1,493,086
Authority, Revenue Bonds (Series A), 6.20%
(Sisters of Charity Health Care System)/(MBIA
INS)/(Original Issue Yield: 6.30%), 5/15/2001
TOTAL 10,780,405
OKLAHOMA--1.0%
2,000,000 Oklahoma State Industrial Authority, Health AAA 2,111,640
System Revenue Bonds (Series C), 5.70% (Baptist
Medical Center, OK)/(AMBAC INS)/(Original Issue
Yield: 5.80%), 8/15/2002
PENNSYLVANIA--8.0%
1,500,000 Pennsylvania Infrastructure Investment AA+ 1,600,605
Authority, Revenue Bonds, 6.15% (Pennvest),
9/1/2001
3,500,000 Pennsylvania Intergovernmental Coop Authority, AAA 3,614,730
Special Tax Revenue Bonds, 5.45% (FGIC
INS)/(Original Issue Yield: 5.55%), 6/15/2008
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
PENNSYLVANIA--CONTINUED
$ 3,000,000 Pennsylvania State Higher Education Facilities AAA $ 3,166,860
Authority, Health Services Revenue Bonds (Series
A), 5.50% (Allegheny Delaware Valley Obligated
Group)/ (MBIA INS)/(Original Issue Yield:
5.60%), 11/15/2008
4,000,000 Pennsylvania State Higher Education Facilities AA 4,193,760
Authority, Refunding Revenue Bonds (Series A),
5.50% (University of Pennsylvania)/(Original
Issue Yield: 5.55%), 1/1/2009
5,000,000 Philadelphia, PA Hospitals & Higher Education AA- 4,857,050
Facilities Authority, Health System Revenue
Bonds (Series 1997A), 5.00% (Jefferson Health
System)/(Original Issue Yield: 5.40%), 5/15/2012
TOTAL 17,433,005
SOUTH CAROLINA--2.5%
730,000 Columbia, SC Waterworks & Sewer System, AA 777,552
Refunding Revenue Bonds, 6.40% (United States
Treasury COL)/(Original Issue Yield: 6.45%),
2/1/2001
4,270,000 Columbia, SC Waterworks & Sewer System, Revenue AA 4,557,969
Bonds, 6.40% (Original Issue Yield: 6.45%),
2/1/2001
TOTAL 5,335,521
TENNESSEE--0.5%
1,065,000 Metropolitan Government Nashville & Davidson AA 1,129,007
County, TN HEFA, Revenue Bonds (Series B), 5.85%
(Vanderbilt University)/(Original Issue Yield:
5.90%), 10/1/2001
TEXAS--15.2%
200,000 Brownsville, TX Independent School, GO UT Aaa 209,600
Refunding Bonds, 6.00% (PSFG INS)/ (Original
Issue Yield: 6.00%), 8/15/2000
1,000,000 Dallas, TX Waterworks & Sewer System, Revenue AA 1,028,890
Refunding and Improvement Bonds (Series A),
9.50%, 10/1/1998
4,000,000 Garland, TX, LT GO Bonds, 5.80% (Original Issue AA 4,231,760
Yield: 5.90%), 8/15/2001
100,000 Gulf Coast, TX Waste Disposal Authority, Revenue A1 106,114
Bonds, 6.10% (Monsanto Co.), 1/1/2004
4,500,000 Houston, TX Independent School District, LT GO AAA 4,981,590
Bonds, 8.375% (PSFG GTD), 8/15/2000
1,650,000 San Antonio, TX Electric & Gas, Revenue Bonds, AA 1,667,243
9.90%, 2/1/1998
2,000,000 San Antonio, TX Electric & Gas, Revenue AA 2,069,840
Refunding Bonds (Series A), 7.00%, 2/1/1999
1,475,000 San Antonio, TX, UT GO General Improvement AA 1,641,705
Bonds, 8.625%, 8/1/2000
6,370,000 Socorro, TX Independent School District, UT GO Aaa 6,814,244
Refunding Bonds (Series A), 6.25% (PSFG
GTD)/(Original Issue Yield: 6.30%), 8/15/2001
3,760,000 Texas State Department of Housing & Community AAA 3,808,542
Affairs, Single Family Mortgage Revenue Bonds
(Series B), 5.45% (MBIA INS), 3/1/2019
</TABLE>
FEDERATED INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
LONG-TERM MUNICIPALS--CONTINUED
TEXAS--CONTINUED
$ 6,000,000 Texas Water Development Board, State Revolving AAA $ 6,399,840
Fund Sr. Lien Revenue Bonds, 5.80% (Original
Issue Yield: 5.90%), 7/15/2002
TOTAL 32,959,368
UTAH--1.0%
2,000,000 Intermountain Power Agency, UT, Power Supply A+ 2,077,520
Revenue Refunding Bonds (Series B), 7.20%,
7/1/1999
VIRGINIA--1.9%
1,995,000 Virginia Beach, VA, UT GO Bonds (Series A), AA 2,090,361
6.30%, 3/1/2000
1,995,000 Virginia Beach, VA, UT GO Bonds (Series A), AA 2,126,810
6.30%, 3/1/2001
TOTAL 4,217,171
WASHINGTON--5.8%
1,020,000 Seattle, WA, LT GO Refunding Bonds, 6.00% AA+ 1,089,605
(Original Issue Yield: 6.10%), 3/1/2002
1,500,000 Tacoma, WA Sewer Authority, Revenue Refunding AAA 1,618,140
Bonds (Series B), 5.70% (FGIC INS)/(Original
Issue Yield: 5.85%), 12/1/2005
4,500,000 Washington Health Care Facilities Authority, AAA 4,633,830
Revenue Bonds (Series 1996), 5.375% (Kadlec
Medical Center, Richland)/(AMBAC INS)/(Original
Issue Yield: 5.63%), 12/1/2010
5,000,000 Washington State Public Power Supply System, AA- 5,186,650
(Nuclear Project No. 3) Refunding & Revenue
Bonds (Series B), 5.70% (Original Issue Yield:
5.793%), 7/1/2010
TOTAL 12,528,225
WISCONSIN--0.0%
100,000 Waukesha, WI School District, GO UT, 5.75% A1 102,980
(Original Issue Yield: 5.80%), 10/1/1999
TOTAL LONG-TERM 219,887,867
MUNICIPALS (IDENTIFIED COST $208,800,469)
SHORT-TERM MUNICIPALS--0.6%
PENNSYLVANIA--0.1%
300,000 New Castle, PA Area Hospital Authority, (Series AAA 300,000
1996) Weekly VRDNs (Jameson Memorial
Hospital)/(FSA INS)/(PNC Bank, N.A. LIQ)
TEXAS--0.5%
1,000,000 Harris County, TX HFDC, Unit Priced Demand AA 1,000,000
Adjustable Revenue Bonds (Series 1997B) Daily
VRDNs (St. Luke's Episcopal Hospital)/(Morgan
Guaranty Trust Co., New York, Nationsbank of
Texas, N.A. and Toronto-Dominion Bank LIQs)
TOTAL SHORT-TERM 1,300,000
MUNICIPALS (AT AMORTIZED COST)
TOTAL INVESTMENTS (IDENTIFIED COST $ 221,187,867
$210,100,469 AT AMORTIZED COST)(A)
</TABLE>
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
(a) The cost of investments for federal tax purposes amounts to $210,100,469.
The net unrealized appreciation of investments on a federal tax basis amounts to
$11,087,398 at November 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($217,033,474) at November 30, 1997.
The following acronyms are used throughout this portfolio: 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 GTD --Guaranty HEFA
- --Health and Education Facilities Authority HFA --Housing Finance Authority HFDC
- --Health Facility Development Corporation INS --Insured LIQ --Liquidity
Agreement LT --Limited Tax MBIA --Municipal Bond Investors Assurance PCA
- --Pollution Control Authority PCR --Pollution Control Revenue PRF --Prerefunded
UT --Unlimited Tax VRDNs --Variable Rate Demand Notes
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
FEDERATED INTERMEDIATE MUNICIPAL TRUST
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Total investments in securities, at value (identified and tax cost $ 221,187,867
$210,100,469)
Cash 71,381
Income receivable 4,053,073
Receivable for shares sold 22,500
Total assets 225,334,821
LIABILITIES:
Payable for investments purchased $ 7,335,679
Income distribution payable 930,373
Accrued expenses 35,295
Total liabilities 8,301,347
Net Assets for 20,394,016 shares outstanding $ 217,033,474
NET ASSETS CONSIST OF:
Paid in capital $ 210,754,664
Net unrealized appreciation of investments 11,087,398
Accumulated net realized loss on investments (4,808,588)
Total Net Assets $ 217,033,474
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PROCEEDS PER SHARE:
$217,033,474 / 20,394,016 shares outstanding $10.64
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
FEDERATED INTERMEDIATE MUNICIPAL TRUST
SIX MONTHS ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 6,309,600
EXPENSES:
Investment advisory fee $ 451,693
Administrative personnel and services fee 85,257
Custodian fees 9,125
Transfer and dividend disbursing agent fees and expenses 23,797
Directors'/Trustees' fees 3,031
Auditing fees 7,086
Legal fees 5,117
Portfolio accounting fees 40,687
Shareholder services fee 282,308
Share registration costs 9,116
Printing and postage 7,685
Insurance premiums 1,859
Taxes 3,597
Miscellaneous 4,575
Total expenses 934,933
Waivers--
Waiver of investment advisory fee $ (77,846)
Waiver of shareholder services fee (214,554)
Total waivers (292,400)
Net expenses 642,533
Net investment income 5,667,067
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 915,567
Net change in unrealized appreciation of investments 2,275,299
Net realized and unrealized gain on investments 3,190,866
Change in net assets resulting from operations $ 8,857,933
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
FEDERATED INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, MAY 31,
1997 1997
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 5,667,067 $ 11,103,558
Net realized gain on investments ($915,567 and $1,059,997, 915,567 1,164,828
respectively, as computed for federal tax purposes)
Net change in unrealized appreciation/depreciation 2,275,299 866,681
Change in net assets resulting from operations 8,857,933 13,135,067
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net investment income (5,667,067) (11,103,558)
SHARE TRANSACTIONS--
Proceeds from sale of shares 65,901,310 85,279,237
Net asset value of shares issued in conjunction with acquisition -- 10,040,690
of The Starburst Municipal Income Fund
Net asset value of shares issued to shareholders in payment of 1,089,944 2,403,307
distributions declared
Cost of shares redeemed (85,654,441) (85,642,824)
Change in net assets resulting from share transactions (18,663,187) 12,080,410
Change in net assets (15,472,321) 14,111,919
NET ASSETS:
Beginning of period 232,505,795 218,393,876
End of period $ 217,033,474 $ 232,505,795
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS*
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED NOVEMBER 30,
1997 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.50 $10.41 $10.55 $10.52 $10.74 $10.31
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.27 0.53 0.53 0.54 0.52 0.56
Net realized and unrealized gain (loss)
on investments 0.14 0.09 (0.14) 0.03 (0.22) 0.43
Total from investment operations 0.41 0.62 0.39 0.57 0.30 0.99
LESS DISTRIBUTIONS
Distributions from net investment income (0.27) (0.53) (0.53) (0.54) (0.52) (0.56)
NET ASSET VALUE, END OF PERIOD $10.64 $10.50 $10.41 $10.55 $10.52 $10.74
TOTAL RETURN(A) 3.89% 6.11% 3.78% 5.67% 2.79% 9.80%
RATIOS TO AVERAGE NET ASSETS
Expenses 0.57%** 0.57% 0.57% 0.59% 0.61% 0.48%
Net investment income 5.02%** 5.09% 5.05% 5.23% 4.82% 5.27%
Expense waiver/reimbursement(b) 0.26%** 0.26% 0.24% 0.00% 0.01% 0.14%
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $217,033 $232,506 $218,398 $229,285 $302,663 $263,283
Portfolio turnover 13% 33% 19% 11% 7% 3%
</TABLE>
* During the period from September 6, 1993,
to December 21, 1994, the fund offered two classes of shares, Institutional
Shares and Institutional Service Shares. As of December 21, 1994, Institutional
Service Shares ceased operations and the class designation for Institutional
Shares was eliminated. The table above does not reflect Institutional Service
Shares.
** Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
NOTES TO FINANCIAL STATEMENTS
FEDERATED INTERMEDIATE MUNICIPAL TRUST
NOVEMBER 30, 1997 (UNAUDITED)
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. As of November 30, 1997, the Trust consists of two 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 portfolio 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.
On October 31, 1996, the Fund acquired all the net assets of The Starburst
Municipal Income Fund pursuant to the plan of reorganization approved by The
Starburst Municipal Income Fund's shareholders. The acquisition was accomplished
by a tax-free exchange of 955,346 shares of the Fund (valued at $10,040,690) for
the 953,506 shares of The Starburst Municipal Income Fund outstanding on October
31, 1996. The Starburst Municipal Income Fund's net assets at that date
($10,072,849), including $218,574 of unrealized appreciation, were combined with
those of the Fund. The aggregate net assets of the Fund and The Starburst
Municipal Income Fund immediately before acquisition were $209,160,976 and
$10,072,849, respectively. Immediately after the acquisition, the combined
aggregate net assets of the Fund were $219,201,666.
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, 1997, the Fund, for federal tax purposes, had a capital loss
carryforward of $5,891,449, 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:
EXPIRATION YEAR EXPIRATION AMOUNT
2003 $2,220,639
2004 3,670,810
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.
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>
Six Months Year
Ended Ended
November 30, 1997 May 31, 1997
<S> <C> <C>
Shares sold 6,206,471 8,181,651
Shares issued in conjunction with acquisition of The Starburst Municipal -- 955,346
Income Fund
Shares issued to shareholders in payment of distributions declared 102,614 228,984
Shares redeemed (8,068,051) (8,183,995)
Net change resulting from share transactions (1,758,966) 1,181,986
</TABLE>
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, 1997, 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 $60,180,000 and $57,480,000, respectively.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1997, were as follows:
PURCHASES $29,523,527
SALES $37,952,713
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
William J. Copeland
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Glen R. Johnson
Peter E. Madden
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Glen R. Johnson
President
J. Christopher Donahue
Executive Vice President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer, and Secretary
Richard B. Fisher
Vice President
Matthew S. Hardin
Assistant Secretary
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 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 contain facts concerning
its objective and policies, management fees, expenses, and other information.
NOTES
[Graphic]
Federated Intermediate Municipal Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS NOVEMBER 30, 1997
[Graphic]
Federated Investors
Federated Securities Corp., Distributor
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
1-800-245-7400
www.federatedinvestors.com
Cusip 458810108
8010413 (1/98)
PRESIDENT'S MESSAGE
Dear Investor:
I am pleased to present you with the Semi-Annual Report to Shareholders for
Federated Pennsylvania Intermediate Municipal Trust, a portfolio of Intermediate
Municipal Trust. The report covers the six-month period from June 1, 1997,
through November 30, 1997, which is the first half of the fund's fiscal year. It
begins with an investment review, which is a brief commentary on the municipal
market and fund strategy from the 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 4.41%**
through double-tax-free dividends totaling $0.24 per share and a 2.00% share
price increase. Total assets reached $18 million at the reporting 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,
[Graphic]
Glen R. Johnson
President
January 15, 1998
* Income may be subject to the federal alternative minimum tax.
** Performance quoted represents past performance and is not indicative of
future results. 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
MARKET OVERVIEW
The municipal bond market was driven by the supply of and demand for municipal
securities over the six-month reporting period. As a result of declining nominal
interest rates issuers came to market to borrow additional funds at low interest
rates and to refund outstanding higher interest rate debt. Consequently, the
supply of new issue municipal bonds has been considerably higher than most
forecasts made at the beginning of the fiscal year. Interest rates declined from
4.90% to 4.59% for ten-year AAA-rated municipal bonds over the six-month
reporting period. Also, the ratio of ten-year AAA-rated municipal bond yields to
ten-year Treasury bond yields widened from 73.0% to 78.5%, which reflects the
municipal bond market's relative under-performance versus treasury securities
over the reporting period. This relative performance difference between
municipal and Treasury bonds was due mainly to the supply and demand situation
that existed in the municipal market this year. The Pennsylvania municipal bond
market continues to be dominated by insurance. The primary sectors for issuance
in Pennsylvania year-to-date have been health care and education financings.
FUND STRATEGY
The primary goal of the fund is to maximize the tax-exempt income that is
distributed to shareholders. Management concentrated on "couponing up" or
swapping into bonds with better income characteristics over the six-month
reporting period. As a result of very tight credit quality spreads in the
municipal bond market, investors are not being paid for taking additional credit
risk. Because of this fact, the focus has been on higher-quality bonds in the
fund. Approximately 70% of municipal bond new issue supply in Pennsylvania this
year has been insured by one of the major municipal bond insurers. This is one
of the primary contributors to the tightness of municipal credit spreads.
FUND PERFORMANCE
For the six-month reporting period ended November 30, 1997, the fund produced a
total return of 4.41%.* Tax-free dividends totaled $0.24 per share. The 30-day
current net yield on November 30, 1997, was 4.25%.** The fund's yield is very
competitive when compared with other Pennsylvania intermediate funds, which
reflects the fund's focus on tax-free income. The fund's total return has lagged
to some degree over the reporting period because of its shorter-maturity,
higher-quality profile relative to some of its competitors.
MARKET OUTLOOK
Our outlook for the fixed-income markets in general and municipal bonds in
particular is still very constructive. The inflation outlook remains favorable,
real economic growth is showing signs of moderating and the Federal Reserve
Board has remained on the sidelines regarding any adjustments to short-term
lending rates. The municipal bond market could be specifically impacted by
potential changes in the federal tax laws. However, significant tax law changes
are not expected in 1998. The wild card continues to be the effect of the "Asian
Flu" on the U.S. economy.
* Performance quoted reflects past performance and is not indicative of future
results. 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.
** The 30-day current net yield is calculated by dividing the investment income
per share for the prior 30 days by the maximum offering price per share on that
date. The figure is compounded and annualized.
PORTFOLIO OF INVESTMENTS
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--93.4%
PENNSYLVANIA--92.5%
$ 350,000 Allegheny County, PA HDA, Hospital Revenue Bonds AAA $ 369,792
(Series A), 5.45% (Allegheny General Hospital)/(MBIA
INS)/(Original Issue Yield: 5.55%), 9/1/2004
300,000 Allegheny County, PA HDA, Revenue Bonds (Series A), A2 317,859
5.90% (South Hills Health System)/(Original Issue
Yield: 6.00%), 5/1/2003
300,000 Allegheny County, PA HDA, Revenue Bonds (Series A), A2 319,773
6.00% (South Hills Health System)/(Original Issue
Yield: 6.10%), 5/1/2004
500,000 Allegheny County, PA, Airport Revenue Bonds (Series AAA 518,115
A), 5.30% (Pittsburgh International Airport)/(MBIA
INS)/(Original Issue Yield: 5.35%), 1/1/2003
100,000 Allegheny County, PA, UT GO Bonds (Series C-39), AAA 106,639
6.00% (AMBAC INS)/(Original Issue Yield: 6.098%),
5/1/2012
100,000 Allegheny County, PA, UT GO Bonds, 5.40% (MBIA AAA 105,453
INS)/(Original Issue Yield: 5.50%), 9/15/2005
100,000 Altoona, PA Area School District, UT GO Bonds, 5.35% AAA 104,941
(FGIC INS)/(Original Issue Yield: 5.40%), 1/15/2004
100,000 Altoona, PA City Authority, Water Revenue Bonds, AAA 107,155
5.60% (FGIC INS)/(Original Issue Yield: 5.699%),
11/1/2004
150,000 Berks County, PA Municipal Authority, Hospital AAA 158,136
Revenue Bonds, 5.40% (Reading Hospital & Medical
Center)/(MBIA INS)/(Original Issue Yield: 5.45%),
10/1/2004
100,000 Berks County, PA Municipal Authority, Hospital AAA 107,266
Revenue Bonds, 5.60% (Reading Hospital & Medical
Center)/(MBIA INS)/(Original Issue Yield: 5.65%),
10/1/2006
150,000 Cambria County, PA, UT GO (Series A), 5.40% (FGIC AAA 158,450
INS)/(Original Issue Yield: 5.50%), 8/15/2004
100,000 Central Bucks, PA School District, UT GO Bonds, 5.40% AAA 102,051
(FGIC INS), 5/15/2003
100,000 Central Bucks, PA School District, UT GO Bonds, Aa3 108,748
6.00%, 11/15/2003
300,000 Chester County, PA HEFA, Hospital Revenue Bonds AAA 312,720
(Series 1996A), 5.20% (Chester County Hospital,
PA)/(MBIA INS)/(Original Issue Yield: 5.35%),
7/1/2004
100,000 Commonwealth of Pennsylvania, UT GO Bonds (Second AAA 108,740
Series A), 6.30% (MBIA INS)/(Original Issue Yield:
6.35%), 11/1/2002
150,000 Dauphin County, PA, Revenue Bonds, 6.00% (MBIA INS), AAA 155,661
6/1/2002
150,000 Dauphin County, PA, Revenue Bonds, 6.10% (MBIA INS), AAA 155,948
6/1/2003
345,000 Delaware County Authority, PA, (Series 1995) College AAA 356,254
Revenue Bonds, 5.30% (Neumann College)/(Connie Lee
INS)/(Original Issue Yield: 5.40%), 10/1/2007
300,000 Delaware County Authority, PA, Hospital Revenue A- 313,527
Bonds, 5.90% (Riddle Memorial Hospital)/(Original
Issue Yield: 6.10%), 1/1/2002
125,000 Eastern York, PA School District, UT GO Bonds, 5.55% AAA 132,026
(MBIA INS), 6/1/2003
</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, A $ 101,256
5.45%, 2/15/2004
205,000 Fayette County, PA Hospital Authority, Healthcare Aa3 208,643
Facility Revenue Bonds (Series 1996A), 5.35% (Mount
Macrina Manor)/(National City, Pennsylvania LOC),
9/1/2006
220,000 Fayette County, PA Hospital Authority, Healthcare Aa3 224,202
Facility Revenue Bonds (Series 1996A), 5.45% (Mount
Macrina Manor)/(National City, Pennsylvania LOC),
9/1/2007
230,000 Fayette County, PA Hospital Authority, Healthcare Aa3 234,478
Facility Revenue Bonds (Series 1996A), 5.55% (Mount
Macrina Manor)/(National City, Pennsylvania LOC),
9/1/2008
500,000 Fayette County, PA Hospital Authority, Hospital AAA 514,505
Revenue Bonds (Series 1996A), 5.20% (Uniontown
Hospital)/(Connie Lee INS)/(Original Issue Yield:
5.30%), 6/15/2004
125,000 Franklin Park Boro, PA, GO Bonds, 5.50% (AMBAC INS), AAA 133,357
11/1/2004
500,000 Indiana County, PA Hospital Authority, Revenue AAA 540,430
Refunding Bonds (Series B), 6.20% (Indiana Hospital,
PA)/(Connie Lee INS)/(Original Issue Yield: 6.30%),
7/1/2006
350,000 Lehigh County, PA General Purpose Authority, General AAA 366,905
Purpose Authority Hospital Revenue Bonds, 5.30%
(Lehigh Valley Hospital Inc.)/(MBIA INS)/ (Original
Issue Yield: 5.40%), 7/1/2005
575,000 Lehigh County, PA General Purpose Authority, Hospital A 589,674
Refunding Revenue Bonds (Series 1996A), 5.25%
(Muhlenberg Hospital Center)/(Original Issue Yield:
5.30%), 7/15/2004
750,000 Lehigh County, PA General Purpose Authority, AAA 755,363
Refunding Revenue Bonds, 5.00% (Good Shepherd
Rehabilitation Hospital)/(AMBAC INS)/(Original Issue
Yield: 5.10%), 11/15/2009
325,000 Lower Dauphin, PA School District, UT GO Bonds, 5.75% AAA 337,740
(AMBAC INS)/ (United States Treasury PRF), 3/15/2000
(@100)
330,000 McKeesport, PA Area School District, UT GO Bonds AAA 351,374
(Series A), 5.40% (FSA INS)/ (Original Issue Yield:
5.50%), 10/1/2006
750,000 Monroe County, PA Hospital Authority, Hospital AAA 752,235
Revenue Bonds (Series A), 5.00% (Pocono Medical
Center)/(AMBAC INS)/(Original Issue Yield: 5.10%),
7/1/2009
675,000 New Castle, PA Area Hospital Authority, Hospital AAA 744,795
Revenue Bonds (Series 1997), 6.00% (Jameson Memorial
Hospital)/(MBIA INS), 7/1/2010
180,000 North Penn, PA Water Authority, Revenue Bonds, 5.80% AAA 191,772
(FGIC INS)/(Original Issue Yield: 5.85%), 11/1/2005
110,000 North Penn, PA Water Authority, Revenue Bonds, 6.10% AAA 119,746
(FGIC INS), 11/1/2003
500,000 Northeastern, PA Hospital & Education Authority, AAA 538,135
Health Care Revenue Bonds (Series 1994 A), 6.10%
(Wyoming Valley Health Care, PA)/(AMBAC INS)/
(Original Issue Yield: 6.25%), 1/1/2003
150,000 Penn Trafford, PA School District, UT GO Bonds, 5.55% AAA 158,612
(MBIA INS), 5/1/2006
</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 Pennsylvania Housing Finance Authority, SFM Revenue AA+ $ 102,680
Bonds (Series 38), 5.30%, 4/1/2003
100,000 Pennsylvania Housing Finance Authority, SFM Revenue AA+ 103,833
Bonds (Series 41-B), 5.90%, 10/1/2005
100,000 Pennsylvania Housing Finance Authority, SFM Revenue AA+ 103,775
Bonds (Series 42), 5.90%, 10/1/2004
345,000 Pennsylvania Housing Finance Authority, SFM Revenue AA+ 357,316
Bonds (Series 43), 6.35%, 4/1/2001
500,000 Pennsylvania Intergovernmental Coop Authority, AAA 518,490
Special Tax Revenue Refunding Bonds, Philadelphia
Funding Program, 5.20% (FGIC INS)/(Original Issue
Yield: 5.32%), 6/15/2007
125,000 Pennsylvania State Higher Education Facilities AA 133,646
Authority, Health Services Revenue Bonds (Series A),
6.00% (University of Pennsylvania), 1/1/2003
200,000 Pennsylvania State Higher Education Facilities AAA 211,344
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
110,000 Pennsylvania State Higher Education Facilities A1 111,883
Authority, University Revenue Bonds (Series 1996),
5.25% (Drexel University)/(PNC Bank, N.A.
LOC)/(Original Issue Yield: 5.35%), 8/1/2005
150,000 Pennsylvania State Higher Education Facilities A1 152,663
Authority, University Revenue Bonds (Series 1996),
5.35% (Drexel University)/(PNC Bank, N.A.
LOC)/(Original Issue Yield: 5.45%), 8/1/2006
475,000 Pennsylvania State Higher Education Facilities A1 484,054
Authority, University Revenue Bonds (Series 1996),
5.45% (Drexel University)/(PNC Bank, N.A.
LOC)/(Original Issue Yield: 5.55%), 8/1/2007
125,000 Pennsylvania State Turnpike Commission, Turnpike A 131,415
Revenue Bonds (Series P), 5.45%, 12/1/2002
100,000 Pennsylvania State University, Second Revenue AAA 105,663
Refunding Bonds, 5.55% (AMBAC INS)/(Original Issue
Yield: 5.70%), 8/15/2006
125,000 Perkiomen Valley School District, PA, UT GO Bonds, A1 130,476
5.50%, 2/1/2004
300,000 Philadelphia, PA Gas Works, Revenue Bonds (14th AAA 317,811
Series), 5.50% (FSA INS)/ (Original Issue Yield:
6.10%), 7/1/2004
100,000 Philadelphia, PA Hospitals & Higher Education A 102,697
Facilities Authority, Hospital Revenue Bonds (Series
1994), 5.25% (Wills Eye Hospital, PA)/(Original Issue
Yield: 5.40%), 7/1/2003
150,000 Philadelphia, PA Water & Wastewater System, Revenue AAA 158,115
Bonds, 5.50% (FGIC INS), 6/15/2003
500,000 Pittsburgh, PA Urban Redevelopment Authority, AAA 508,170
Mortgage Revenue Bonds (Series 1997C), 5.35%,
10/1/2009
100,000 Richland School District, PA, UT GO Bonds, 5.30% AAA 105,018
(MBIA INS)/(Original Issue Yield: 5.45%), 11/1/2003
</TABLE>
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <C> <C>
INTERMEDIATE-TERM MUNICIPAL SECURITIES--CONTINUED
PENNSYLVANIA--CONTINUED
$ 125,000 Solanco, PA School District, UT GO Bonds, 5.60% (FGIC AAA $ 132,909
INS), 2/15/2004
580,000 Somerset County, PA Hospital Authority, Hospital AA 580,197
Refunding Revenue Bonds (Series 1997B), 5.10%
(Somerset Community Hospital)/(Asset Guaranty INS)/
(Original Issue Yield: 5.25%), 3/1/2009
600,000 Southeastern, PA Transportation Authority, Special AAA 647,214
Revenue Bonds, 5.75% (FGIC INS), 3/1/2008
100,000 Spring Ford, PA School District, UT GO Refunding AAA 103,265
Bonds (Series AA), 5.80% (FGIC INS), 8/1/2005
200,000 Swarthmore Boro Authority PA, College Revenue Bonds, AA+ 215,850
6.00% (Swarthmore College)/(Original Issue Yield:
6.10%), 9/15/2006
185,000 Warren County, PA School District, UT GO Bonds, 5.85% AAA 191,109
(FGIC INS), 9/1/2001
110,000 Warren County, PA School District, UT GO Bonds, 6.10% AAA 114,094
(FGIC INS), 9/1/2003
600,000 Wilkes-Barre, PA Area School District, GO Bonds, AAA 603,072
Series 1997, 5.00% (FGIC INS)/ (Original Issue Yield:
5.075%), 4/1/2010
TOTAL 17,409,235
VIRGIN ISLANDS--0.9%
170,000 Virgin Islands HFA, SFM Revenue Refunding Bonds AAA 176,242
(Series A), 5.80% (GNMA COL), 3/1/2005
TOTAL INTERMEDIATE-TERM MUNICIPAL SECURITIES 17,585,477
(IDENTIFIED COST $16,881,740)
SHORT-TERM MUNICIPAL SECURITIES--4.8%
PENNSYLVANIA--2.7%
300,000 New Castle, PA Area Hospital Authority, (Series 1996) AAA 300,000
Weekly VRDNs (Jameson Memorial Hospital)/(FSA
INS)/(PNC Bank, N.A. LIQ)
200,000 Philadelphia, PA Hospitals & Higher Education AA 200,000
Facilities Authority, Hospital Revenue Bonds (Series
A of 1996) Daily VRDNs (Children's Hospital of
Philadelphia)/(Morgan Guaranty Trust Co., New York
LIQ)
TOTAL 500,000
PUERTO RICO--2.1%
400,000 Government Development Bank for Puerto Rico (GDB) AA 400,000
Weekly VRDNs (MBIA INS)/(Credit Suisse First Boston
LIQ)
TOTAL SHORT-TERM MUNICIPAL 900,000
SECURITIES (AT AMORTIZED COST)
TOTAL INVESTMENTS (IDENTIFIED $ 18,485,477
COST $17,781,740)(A)
</TABLE>
At November 30, 1997, 9.9% of the total investments at market value were subject
to alternative minimum tax.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
(a) The cost of investments for federal tax purposes amounts to $17,781,740. The
net unrealized appreciation of investments on a federal tax basis amounts to
$703,737 appreciation at November 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($18,814,977) at November 30, 1997.
The following acronyms are used throughout this portfolio:
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
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Total investments in securities, at value (identified and tax cost $17,781,740) $ 18,485,477
Cash 74,537
Income receivable 282,616
Deferred expenses 37,292
Deferred organizational costs 7,805
Total assets 18,887,727
LIABILITIES:
Income distribution payable 72,750
Net Assets for 1,816,320 shares outstanding $ 18,814,977
NET ASSETS CONSIST OF:
Paid in capital $ 18,287,590
Net unrealized appreciation of investments 703,737
Accumulated net realized loss on investments (176,350)
Total Net Assets $ 18,814,977
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PROCEEDS PER SHARE:
$18,814,977 / 1,816,320 shares outstanding $10.36
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
SIX MONTHS ENDED NOVEMBER 30, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 434,492
EXPENSES:
Investment advisory fee $ 41,633
Administrative personnel and services fee 62,672
Custodian fees 996
Transfer and dividend disbursing agent fees and expenses 9,865
Directors'/Trustees' fees 2,262
Auditing fees 7,188
Legal fees 1,630
Portfolio accounting fees 27,292
Shareholder services fee 20,816
Share registration costs 10,031
Printing and postage 7,775
Insurance premiums 1,354
Miscellaneous 9,269
Total expenses 202,783
Waivers and reimbursements--
Waiver of investment advisory fee $ (41,633)
Waiver of shareholder services fee (11,657)
Reimbursement of other operating expenses (111,659)
Total waivers and reimbursements (164,949)
Net expenses 37,834
Net investment income 396,658
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 624
Net change in unrealized appreciation of investments 294,450
Net realized and unrealized gain on investments 295,074
Change in net assets resulting from operations $ 691,732
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, MAY 31,
1997 1997
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 396,658 $ 753,993
Net realized gain (loss) on investments ($624 net gain and $14,828 624 11,890
net loss, respectively, as computed for federal tax purposes)
Net change in unrealized appreciation/depreciation 294,450 250,674
Change in net assets resulting from operations 691,732 1,016,557
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net investment income (396,658) (753,993)
SHARE TRANSACTIONS--
Proceeds from sale of shares 6,675,821 5,435,406
Net asset value of shares issued to shareholders in payment of 73,117 170,651
distributions declared
Cost of shares redeemed (2,645,804) (6,506,058)
Change in net assets resulting from share transactions 4,103,134 (900,001)
Change in net assets 4,398,208 (637,437)
NET ASSETS:
Beginning of period 14,416,769 15,054,206
End of period $ 18,814,977 $ 14,416,769
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
SIX MONTHS
ENDED
(UNAUDITED)
NOVEMBER 30, YEAR ENDED MAY 31,
1997 1997 1996 1995 1994(A)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.16 $10.00 $10.06 $9.85 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.24 0.49 0.49 0.48 0.23
Net realized and unrealized gain (loss)
on investments 0.20 0.16 (0.06) 0.21 (0.15)
Total from investment operations 0.44 0.65 0.43 0.69 0.08
LESS DISTRIBUTIONS
Distributions from net investment income (0.24) (0.49) (0.49) (0.48) (0.23)
NET ASSET VALUE, END OF PERIOD $10.36 $10.16 $10.00 $10.06 $9.85
TOTAL RETURN(B) 4.41% 6.63% 4.27% 7.35% 0.76%
RATIOS TO AVERAGE NET ASSETS
Expenses 0.45%* 0.45% 0.45% 0.45% 0.25%*
Net investment income 4.76%* 4.85% 4.81% 5.11% 4.76%*
Expense waiver/reimbursement(c) 1.98%* 2.09% 2.69%(d) 3.95%(d) 5.06%*
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $18,815 $14,417 $15,054 $8,344 $2,881
Portfolio turnover 3% 45% 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 advisory 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)
NOTES TO FINANCIAL STATEMENTS
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
NOVEMBER 30, 1997 (UNAUDITED)
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. As of November 30, 1997, the Trust consists of two 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 portfolio 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.
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, 1997, the Fund, for federal tax purposes, had a capital loss
carryforward of $176,976, 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:
EXPIRATION YEAR EXPIRATION AMOUNT
2003 $74,731
2004 $87,417
2005 $14,828
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.
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>
Six Months Year
Ended Ended
November 30, 1997 May 31, 1997
<S> <C> <C>
Shares sold 647,504 536,995
Shares issued to shareholders in payment of distributions declared 7,085 16,821
Shares redeemed (256,590) (641,073)
Net change resulting from share transactions 397,999 (87,257)
</TABLE>
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 certain operating expenses of the Fund. 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 Federated Shareholder Services 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 Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust's average daily net assets for the
period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES
Organizational expenses of $56,196 were borne initially by the Adviser. The Fund
has reimbursed the Adviser for these expenses. These expenses have been deferred
and are being amortized over the five-year period following the Fund's effective
date. For the year ended November 30, 1997, the Fund expensed $8,586 of
organizational expenses.
INTERFUND TRANSACTIONS
During the period ended November 30, 1997, the Fund engaged in purchase and sale
transactions with funds that have a common investment adviser (or affiliated
investment advisers), common Directors/Trustees, and/or common Officers. These
purchase and sale transactions were made at current market value pursuant to
Rule 17a-7 under the Act amounting to $5,080,000 and $5,180,000, respectively.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1997, were as follows:
PURCHASES $3,653,747
SALES $ 496,150
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, 1997, 78% 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 27% of total investments.
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
William J. Copeland
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Glen R. Johnson
Peter E. Madden
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Glen R. Johnson
President
J. Christopher Donahue
Executive Vice President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer,
and Secretary
Richard B. Fisher
Vice President
Matthew S. Hardin
Assistant Secretary
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.
[Graphic]
Federated Pennsylvania Intermediate Municipal Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
NOVEMBER 30, 1997
[Graphic]
Federated Investors
Federated Securities Corp., Distributor
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
1-800-245-7400
www.federatedinvestors.com
Cusip 458810306
007147 (1/98)
