PRESIDENT'S MESSAGE
Dear Investor:
I am pleased to present the Semi-Annual Report for Federated Intermediate
Municipal Trust. The report covers the six-month reporting period from June 1,
1998 through November 30, 1998, 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'll find the fund's portfolio of investments and its
financial statements.
Federated Intermediate Municipal Trust 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 3.28%
through dividends totaling $0.26 per share and a $0.09 share price increase.
Assets totaled $237.2 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'll continue to keep
you up to date on the fund's performance, and we welcome your questions,
comments, or suggestions.
Sincerely,
/s/ Glen R. Johnson
Glen R. Johnson
President
January 15, 1999
* 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
The municipal bond market generated solid returns over the previous reporting
period thanks to modest price appreciation and attractive coupon income. The
Merrill Lynch Municipal Securities Index,* a good measure of the overall
municipal market, provided a 8.72% annualized total return over the past six
months. Two-thirds of this return was generated from coupon income with the
remainder price appreciation. The increase in bond prices was primarily driven
by a decline in interest rates over the reporting period. Municipal interest
rates, as represented by the Bond Buyer 40 Index,** dropped from 5.22% to 5.10%
over the reporting period. Thirty-year Treasury bond yields declined as well,
falling from 5.78% to 5.06%. Municipal yields lagged their taxable benchmark for
two reasons. First there was a tremendous increase in supply of municipal
securities during the first eleven months of 1998. Second, the turmoil in
international markets, particularly the problems in Asia, Russia, and Latin
American economies, have contributed to a global flight to quality that has
benefited Treasuries. Although municipal bonds are of very high credit quality
the flight to quality demand is from foreign buyers that are exempt from U.S.
taxation. As of the date of this report, municipal bonds are trading at
historically high values to the Treasury market with the long AAA rated
municipal bond at more than 95% of Treasury bond yields.
The strategy has been relatively consistent over the year. With credit spreads
historically tight the portfolios average credit quality has been maintained at
the AA rating equivalent. The fund's duration has been maintained in the neutral
range relative to its benchmarks to take advantage of the favorable environment
for fixed income securities over the year. Management will continue to attempt
to maximize the tax-exempt income provided to shareholders, consistent with the
fund's average maturity and credit quality constraints.
For the 6-month reporting period ended November 30, 1998, the fund produced a
total return of 3.28%***. The 30-day current net distribution rate on November
30, 1998 was 4.79%. The fund's 30-day SEC yield as of November 30, 1998 was
3.86%.
The fund's yield reflected the attractive coupons which the fund holds relative
to what is currently available in the municipal market. The funds total return
performance reflects its neutral duration and average maturity positioning
within the intermediate portion of the municipal yield curve.
From a macro-economic standpoint, bonds in general and municipal bonds in
particular are well positioned as an asset class for the coming year. Real
economic growth in the United States and throughout the world is expected to
slow over the coming year combined with a stable inflation outlook. This kind of
market environment bodes well for bonds in general. The municipal bond market is
looking at a unique technical position going into the coming year which leads to
a positive outlook for the asset class. Municipal bond yields are close to 100%
of treasury bond yields on a ratio basis. When this fact is combined with the
tax-exemption which municipal bonds provide, they appear very attractive on a
relative basis. The supply of municipal bonds issued is also expected to decline
by approximately 10 to 18 percent next year which will help to support the
municipal bond markets performance relative to other fixed income alternatives.
* The Merrill Lynch Municipal Securities Index is an unmanaged index that
provides a broad-based measure of the performance of the U.S. tax-exempt
bond market. Investments cannot be made in an index.
** The Bond Buyer's Index is comprised of 40 actively quoted and traded long-
term municipal bonds.
*** 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.
PORTFOLIO OF INVESTMENTS
Federated Intermediate Municipal Trust
November 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
<S> <C> <C> <C>
(a)Long-Term Municipals--98.7%
Alabama--1.5%
$1,500,000 Alabama Water PCA, PCR Bonds, 6.35% (AMBAC INS), 8/15/2001 AAA $ 1,601,640
2,000,000 Mobile, AL IDB, PCR Refunding Bonds (Series 1998B), 4.75%
(International Paper Co.), 4/1/2010 BBB+ 1,990,700
Total 3,592,340
Alaska--4.2%
7,000,000 Alaska State Housing Finance Corp., General Mortgage Revenue Bonds
(Series A), 5.65% (MBIA INS), 12/1/2012 AAA 7,385,840
2,500,000 Alaska State Housing Finance Corp., Mortgage Revenue Bonds (Series 1997 A-1),
5.50% (Original Issue Yield: 5.531%), 12/1/2017 AAA 2,594,075
Total 9,979,915
Arizona--2.1%
1,090,000 Show Low, AZ Industrial Development Authority, Hospital Revenue Bonds,
Series 1998A, 5.25% (Navapache Regional Medical Center)/(American Capital
Access INS)/(Original Issue Yield: 5.30%), 12/1/2010 A 1,139,137
1,170,000 Show Low, AZ Industrial Development Authority, Hospital Revenue Bonds,
Series 1998A, 5.30% (Navapache Regional Medical Center)/(American Capital
Access INS)/(Original Issue Yield: 5.35%), 12/1/2011 A 1,218,941
1,180,000 Show Low, AZ Industrial Development Authority, Hospital Revenue Bonds,
Series 1998A, 5.375% (Navapache Regional Medical Center)/(American Capital
Access INS)/(Original Issue Yield: 5.40%), 12/1/2012 A 1,239,024
1,240,000 Show Low, AZ Industrial Development Authority, Hospital Revenue Bonds,
Series 1998A, 5.375% (Navapache Regional Medical Center)/(American Capital
Access INS)/(Original Issue Yield: 5.45%), 12/1/2013 A 1,293,394
Total 4,890,496
California--3.7%
5,000,000 California State, Refunding GO Bonds, 4.50% (Original Issue Yield:
4.64%), 10/1/2018 A+ 4,787,550
1,875,000 Los Angeles, CA Department of Water & Power, Electric Plant Revenue Bonds,
2nd Issue, 9.00%, 6/1/2001 A+ 2,115,356
1,770,000 Sierra View Local Health Care District, CA, Refunding Revenue Bonds (Series
1998), 5.00% (American Capital Access INS)/(Original Issue Yield:
5.10%), 7/1/2011 A 1,797,577
Total 8,700,483
Colorado--0.9%
1,000,000 Colorado HFA, Single Family Mortgage Revenue Bonds (Series 1997C-3),
6.75%, 5/1/2017 Aa2 1,124,980
1,000,000 Highlands Ranch Metropolitan District No. 3, CO, UT GO Refunding Bonds,
Series B, 5.125% (American Capital Access INS)/(Original Issue Yield:
5.235%), 12/1/2012 A 1,015,690
Total 2,140,670
Florida--3.8%
2,530,000 Broward County, FL HFA, (CR-5), 3.20% TOBs (GNMA COL)/(Citibank NA,
New York LIQ), Optional Tender 5/1/1999 AAA 2,530,000
2,000,000 Florida State Board of Education Administration, UT GO Capital Outlay Bonds
(Series C), 6.25% (Florida State), 6/1/2001 AA+ 2,125,380
3,000,000 Florida State Board of Education Administration, UT GO Capital Outlay Bonds,
6.00% (Florida State), 6/1/2001 AA+ 3,171,000
1,000,000 Lee County, FL HFA, Single Family Mortgage Revenue Bonds (Series 1998A-2),
6.30% (GNMA Collateralized Home Mortgage Program COL), 3/1/2029 Aaa 1,121,550
Total 8,947,930
Georgia--3.6%
2,000,000 Georgia Municipal Electric Authority, Revenue Bonds (Series U),
6.50%, 1/1/2000 A 2,067,340
1,000,000 Georgia Municipal Electric Authority, Revenue Bonds (Series U),
6.60%, 1/1/2001 A 1,059,010
5,000,000 Georgia State, UT GO Bonds (Series A), 7.70%, 2/1/2001 AAA 5,424,650
Total 8,551,000
Hawaii--4.1%
5,000,000 Hawaii State, UT GO Bonds (Series BT), 8.00%, 2/1/2001 A+ 5,438,950
1,000,000 Hawaii State, UT GO Bonds (Series BU), 5.85% (Original Issue
Yield: 5.95%), 11/1/2001 A+ 1,058,520
3,000,000 Honolulu, HI City & County, UT GO Bonds (Series A), 6.30% (Original Issue
Yield: 6.40%), 8/1/2001 AA 3,202,080
Total 9,699,550
Idaho--2.3%
1,600,000 Boise, ID Industrial Development Corp., Multi-Mode Variable Rate Industrial
Development Revenue Bonds (Series 1998) Weekly VRDNs (Multiquip Inc.
Project)/(Bank of Tokyo-Mitsubishi Ltd. LOC) A 1,600,000
2,000,000 Idaho Health Facilities Authority, Improvement & Refunding Revenue Bonds,
5.25% (Bannock Regional Medical Center), 5/1/2014 BBB+ 2,036,360
1,100,000 Idaho Housing Agency, SFM Revenue Bonds, Series D-2 Mezzanine Bonds,
5.50%, 7/1/2018 Aa2 1,124,695
775,000 Idaho Housing Agency, SFM Revenue Bonds, Series D-2 Subordinate Bonds,
5.25%, 7/1/2011 A1 794,623
Total 5,555,678
Illinois--6.3%
$3,000,000 Du Page, IL Water Commission, UT GO Bonds, 6.05%, 3/1/2002 AAA $ 3,206,970
2,290,000 Illinois Health Facilities Authority, Revenue Bonds (Series 1998), 5.50%
(Centegra Health System), 9/1/2009 A 2,438,094
3,800,000 Illinois Health Facilities Authority, Revenue Refunding Bonds (Series A),
5.70% (Advocate Health Care Network)/(Original Issue Yield: 5.75%), 8/15/2011 AA 4,107,610
3,000,000 Illinois Municipal Electric Agency, Power Supply System Revenue Bonds
(Series A), 6.20% (AMBAC INS), 2/1/2001 AAA 3,161,700
2,000,000 University of Illinois, Auxiliary Facilities Revenue Bonds, 6.40% (Original
Issue Yield: 6.45%), 4/1/2001 AA 2,121,280
Total 15,035,654
Indiana--2.8%
1,400,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds,
5.25% (Floyd Memorial Hospital, IN)/(Original Issue Yield: 5.45%), 2/15/2018 A 1,401,652
4,800,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds (Series 1996A),
5.50% (Clarian Health Partners, Inc.)/(Original Issue Yield: 5.65%), 2/15/2010 AA 5,162,592
Total 6,564,244
Iowa--0.9%
2,000,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds (Series 1998A),
5.125% (Iowa Health System)/(MBIA INS)/(Original Issue Yield: 5.15%), 7/1/2013 AAA 2,059,860
Kansas--1.4%
2,000,000 Sedgwick & Shawnee Counties, KS, Single Family Mortgage Revenue Bonds
(Series 1997A-2), 5.50% (GNMA Collateralized Home Mortgage Program
COL), 6/1/2029 Aaa 2,280,360
985,000 Sedgwick County, KS, Single Family Mortgage Revenue Bonds (Series 1997A-2),
6.50% (GNMA Collateralized Home Mortgage Program COL), 12/1/2016 Aaa 1,082,239
Total 3,362,599
Louisiana--0.9%
2,100,000 Louisiana HFA, Single Family Mortgage Revenue Bonds (Series 1998A), 5.65%
(GNMA Collateralized Home Mortgage Program COL), 12/1/2029 Aaa 2,151,891
Maine--1.3%
3,000,000 Maine Municipal Bond Bank, Revenue Bonds (Series 1997D), 5.35%
(AMBAC INS), 11/1/2017 AAA 3,144,570
Michigan--10.6%
1,785,000 Kent County, MI, Airport Revenue Bonds (Series 1998), 4.90% (Kent County
International Airport)/(MBIA INS)/(Original Issue Yield: 4.93%), 1/1/2014 AAA 1,784,732
2,000,000 Michigan State Building Authority, Revenue Bonds (Series II), 6.25%
(AMBAC INS)/(Original Issue Yield: 6.35%), 10/1/2000 AAA 2,098,320
1,825,000 Michigan State Hospital Finance Authority, Hospital Revenue & Refunding Bonds
(Series 1998A), 5.30% (Hackley Hospital Obligated Group), 5/1/2013 A3 1,861,756
4,000,000 Michigan State Hospital Finance Authority, Revenue & Refunding Bonds (Series
1998A), 5.10% (McLaren Health Care Corp.)/(Original Issue Yield: 5.15%),
6/1/2013 A1 4,085,600
2,500,000 Michigan State Hospital Finance Authority, Revenue Bonds (Series 1998A), 5.25%
(Detroit Medical Center Obligated Group)/(Original Issue Yield: 5.375%),
8/15/2023 A 2,443,950
3,705,000 Michigan State Housing Development Authority, (Series B) Rental Housing
Revenue Bonds, 5.65% (MBIA INS), 10/1/2007 AAA 3,996,213
3,605,000 Michigan State Housing Development Authority, (Series B) Rental Housing
Revenue Bonds, 5.65% (MBIA INS), 4/1/2007 AAA 3,887,704
2,000,000 Petoskey, MI Hospital Finance Authority, Limited Obligation Revenue & Refunding
Bonds, 5.00% (Northern Michigan Hospital Obligated Group)/(MBIA INS)/(Original
Issue Yield: 5.22%), 11/15/2018 AAA 1,993,700
1,000,000 Royal Oak, MI Hospital Finance Authority, Revenue Refunding Bonds, 7.40%
(William Beaumont Hospital, MI), 1/1/2000 Aaa 1,056,660
2,000,000 Wayne County, MI, Airport Revenue Bonds (Series 1998A), 5.00% (Detroit
Metropolitan Wayne County Airport)/(MBIA INS)/(Original Issue
Yield: 5.29%), 12/1/2019 AAA 1,985,860
Total 25,194,495
Missouri--5.8%
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 5,565,600
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 5,603,250
1,000,000 Missouri State HEFA, Health Facilities Revenue Bonds, Series 1998, 5.10% (Lake
of the Ozarks General Hospital, Inc.)/(Original Issue Yield: 5.28%), 2/15/2018 AA 1,003,740
1,500,000 Missouri State Housing Development Commission, Single Family Mortgage Loan
Revenue Bonds (Series 1998B), 5.20%, 9/1/2012 AAA 1,529,745
Total 13,702,335
Nevada--1.3%
1,000,000 Clark County, NV School District, LT GO Bonds (Series A), 9.75% (MBIA
INS), 6/1/2000 AAA 1,089,910
2,000,000 Reno, NV, Hospital Revenue Bonds (Series 1998A), 5.00% (St. Mary's Regional
Medical Center)/(MBIA INS)/(Original Issue Yield: 5.24%), 5/15/2018 AAA 1,998,720
Total 3,088,630
New Hampshire--2.8%
2,805,000 New Hampshire Higher Educational & Health Facilities Authority, Revenue
Bonds (Series 1998), 5.125% (Franklin Pierce College)/(American Capital Access
INS)/(Original Issue Yield: 5.25%), 10/1/2013 A 2,852,601
1,000,000 New Hampshire Higher Educational & Health Facilities Authority, Revenue
Bonds (Series 1998), 5.25% (Franklin Pierce College)/(American Capital Access
INS)/(Original Issue Yield: 5.42%), 10/1/2018 A 985,990
2,555,000 New Hampshire State, UT GO Bonds (Series A), 6.40%, 6/15/2001 AA+ 2,726,517
Total 6,565,108
New York--4.7%
3,000,000 New York City, NY, UT GO Bonds (Series C), 5.00% (Original Issue
Yield: 5.26%), 8/15/2022 A 2,940,570
2,500,000 New York State Environmental Facilities Corp., State Water Pollution Control
Bonds (Series 1994E), 6.15% (Original Issue Yield: 6.25%), 6/15/2004 AA 2,763,300
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 4,347,560
1,000,000 Triborough Bridge & Tunnel Authority, NY, Revenue Bonds (Series S), 6.625%
(Original Issue Yield: 6.70%), 1/1/2001 A+ 1,060,130
Total 11,111,560
North Carolina--3.4%
1,275,000 Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue Bonds,
5.90% (Original Issue Yield: 5.95%), 1/1/2002 AA 1,356,243
2,080,000 Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue Bonds,
5.90% (Original Issue Yield: 5.95%), 1/1/2002 AA 2,212,912
2,000,000 North Carolina Municipal Power Agency No. 1, Catawba Electric Revenue
Refunding Bonds, 6.00% (Original Issue Yield: 6.05%), 1/1/2004 A 2,158,500
2,000,000 North Carolina Municipal Power Agency No. 1, Catawba Electric Revenue
Refunding Bonds, 7.25%, 1/1/2007 A 2,358,120
Total 8,085,775
North Dakota--0.5%
1,100,000 Grand Forks, ND, Health Care System Revenue Bonds (Series 1997), 5.40% (Altru
Health System Obligated Group)/(MBIA INS)/(Original Issue Yield: 5.50%),
8/15/2011 AAA 1,178,001
Ohio--2.1%
3,195,000 Lucas County, OH, Hospital Revenue Refunding Bonds (Series 1996), 5.50%
(ProMedica Healthcare Obligated Group)/(MBIA INS)/(Original Issue
Yield: 5.75%), 11/15/2008 AAA 3,497,694
1,400,000 Montgomery County, OH Health Facilities Authority, Revenue Bonds (Series A),
6.20% (Sisters of Charity Health Care System)/(MBIA INS)/(Original Issue
Yield: 6.30%), 5/15/2001 AAA 1,482,922
Total 4,980,616
Pennsylvania--4.9%
1,320,000 New Wilmington, PA Municipal Authority, College Revenue Bonds, 5.05%
(Westminister College)/(Original Issue Yield: 5.075%), 3/1/2012 Baa1 1,321,835
1,000,000 New Wilmington, PA Municipal Authority, College Revenue Bonds, 5.30%
(Westminister College)/(Original Issue Yield: 5.40%), 3/1/2018 Baa1 1,004,630
1,500,000 Pennsylvania Infrastructure Investment Authority, Revenue Bonds, 6.15%
(Pennvest), 9/1/2001 AA+ 1,593,990
2,000,000 Philadelphia Authority for Industrial Development, Airport Revenue Bonds,
(Series 1998A), 5.00% (Philadelphia Airport System)/(FGIC INS)/(Original
Issue Yield: 5.25%), 7/1/2015 AAA 2,009,520
5,000,000 Philadelphia, PA Hospitals & Higher Education Facilities Authority, Health
System Revenue Bonds (Series 1997A), 5.00% (Jefferson Health System)/
(Original Issue Yield: 5.40%), 5/15/2012 AA 5,093,850
700,000 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 700,000
Total 11,723,825
South Carolina--1.9%
4,270,000 Columbia, SC Waterworks & Sewer System, Revenue Bonds, 6.40% (Original
Issue Yield: 6.45%), 2/1/2001 AA 4,520,307
Texas--14.5%
1,000,000 Bell County, TX HFDC, Retirement Facility Revenue Bonds (Series 1998A), 5.00%
(Buckner Retirement Services, Inc. Obligated Group Project)/(Original Issue
Yield: 5.10%), 11/15/2010 A 1,012,560
1,690,000 Bell County, TX HFDC, Retirement Facility Revenue Bonds (Series 1998A), 5.00%
(Buckner Retirement Services, Inc. Obligated Group Project)/(Original Issue
Yield: 5.15%), 11/15/2011 A 1,699,042
4,000,000 Garland, TX, LT GO Bonds, 5.80% (Original Issue Yield: 5.90%), 8/15/2001 AA 4,225,440
2,850,000 Harrison County, TX Health Facilities Development Corp., Hospital Revenue Bonds
(Series 1998), 5.50% (Marshall Regional Medical Center)/(American Capital
Access INS)/(Original Issue Yield: 5.52%), 1/1/2018 A 2,891,211
4,500,000 Houston, TX Independent School District, LT GO Bonds, 8.375% (PSFG
GTD), 8/15/2000 AAA 4,858,245
1,475,000 San Antonio, TX, UT GO General Improvement Bonds, 8.625%, 8/1/2000 AA 1,596,983
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 6,783,668
3,760,000 Texas State Department of Housing & Community Affairs, Single Family Mortgage
Revenue Bonds (Series B), 5.45% (MBIA INS), 3/1/2019 AAA 3,911,152
1,000,000 Texas State, Trust Receipts (Series A55) Daily VRDNs (National Westminster
Bank, PLC, London LIQ) A-1+ 1,000,000
6,000,000 Texas Water Development Board, State Revolving Fund Sr. Lien Revenue Bonds,
5.80% (Original Issue Yield: 5.90%), 7/15/2002 AAA 6,418,260
Total 34,396,561
Washington--6.4%
1,020,000 Seattle, WA, LT GO Refunding Bonds, 6.00% (Original Issue Yield: 6.10%),
3/1/2002 AA+ 1,089,115
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 1,647,135
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 AAA 4,805,010
2,335,000 Washington Health Care Facilities Authority, Revenue Bonds, 5.25% (Highline
Community Hospital)/(Asset Guaranty INS)/(Original Issue Yield: 5.30%),
8/15/2017 AA 2,374,672
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 5,303,250
Total 15,219,182
Total Investments (identified cost $222,431,675)(b) $234,143,275
</TABLE>
(a) At November 30, 1998, 7.1% of the total investments at market value were
subject to alternative minimum tax.
(b) The cost of investments for federal tax purposes amounts to $222,431,675.
The net unrealized appreciation of investments on a federal tax basis
amounts to $11,711,600 which is comprised of $11,851,731 appreciation and
$140,131 depreciation at November 30, 1998.
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
Note: The categories of investments are shown as a percentage of net assets
($237,152,596) at November 30, 1998.
The following acronym(s) are used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation
AMT --Alternative Minimum Tax
COL --Collateralized
FGIC --Financial Guaranty Insurance Company
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
IDB --Industrial Development Bond
INS --Insured
LIQ --Liquidity Agreement
LOC --Letter of Credit
LT --Limited Tax
MBIA --Municipal Bond Investors Assurance
PCA --Pollution Control Authority
PCR --Pollution Control Revenue
PLC --Public Limited Company
PSFG --Permanent School Fund Guarantee
SFM --Single Family Mortgage
TOBs --Tender Option Bonds
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, 1998 (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Total investments in securities, at value (identified and tax cost $222,431,675) $234,143,275
Cash 8,590
Income receivable 3,969,949
Total assets 238,121,814
Liabilities:
Payable for shares redeemed $ 4,192
Income distribution payable 940,126
Accrued expenses 24,900
Total liabilities 969,218
Net Assets for 22,006,833 shares outstanding $237,152,596
Net Assets Consist of:
Paid in capital $227,961,524
Net unrealized appreciation of investments 11,711,600
Accumulated net realized loss on investments (2,520,528)
Total Net Assets $237,152,596
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$237,152,596 / 22,006,833 shares outstanding $10.78
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Federated Intermediate Municipal Trust
Six Months Ended November 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Investment Income:
Interest $6,176,157
Expenses:
Investment advisory fee $ 461,264
Administrative personnel and services fee 86,948
Custodian fees 9,044
Transfer and dividend disbursing agent fees and expenses 24,416
Directors'/Trustees' fees 5,130
Auditing fees 7,505
Legal fees 1,491
Portfolio accounting fees 33,668
Shareholder services fee 288,290
Share registration costs 11,559
Printing and postage 10,217
Insurance premiums 1,829
Miscellaneous 2,539
Total expenses 943,900
Waivers--
Waiver of investment advisory fee $ (68,653)
Waiver of shareholder services fee (219,101)
Total waivers (287,754)
Net expenses 656,146
Net investment income 5,520,011
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 915,024
Net change in unrealized appreciation of investments 1,033,374
Net realized and unrealized gain on investments 1,948,398
Change in net assets resulting from operations $7,468,409
</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, 1998 May 31, 1998
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 5,520,011 $ 10,907,474
Net realized gain (loss) on investments ($915,024 net gain and $2,288,603
net gain, respectively, as computed for federal tax purposes) 915,024 2,288,603
Net change in unrealized appreciation 1,033,374 1,866,127
Change in net assets resulting from operations 7,468,409 15,062,204
Distributions to Shareholders--
Distributions from net investment income (5,520,011) (10,907,474)
Share Transactions--
Proceeds from sale of shares 69,678,949 142,380,191
Net asset value of shares issued to shareholders in payment of
distributions declared 1,373,285 2,674,464
Cost of shares redeemed (60,430,229) (157,132,987)
Change in net assets resulting from share transactions 10,622,005 (12,078,332)
Change in net assets 12,570,403 (7,923,602)
Net Assets:
Beginning of period 224,582,193 232,505,795
End of period $237,152,596 $ 224,582,193
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
November 30, Year Ended May 31,
1998 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.69 $ 10.50 $ 10.41 $ 10.55 $ 10.52 $ 10.74
Income from investment operations
Net investment income 0.26 0.53 0.53 0.53 0.54 0.52
Net realized and unrealized gain (loss)
on investments 0.09 0.19 0.09 (0.14) 0.03 (0.22)
Total from investment operations 0.35 0.72 0.62 0.39 0.57 0.30
Less distributions
Distributions from net investment income (0.26) (0.53) (0.53) (0.53) (0.54) (0.52)
Net asset value, end of period $ 10.78 $ 10.69 $ 10.50 $ 10.41 $ 10.55 $ 10.52
Total return (a) 3.28% 6.98% 6.11% 3.78% 5.67% 2.79%
Ratios to average net assets
Expenses 0.57%* 0.57% 0.57% 0.57% 0.59% 0.61%
Net investment income 4.79%* 4.97% 5.09% 5.05% 5.23% 4.82%
Expense waiver/reimbursement (b) 0.25%* 0.25% 0.26% 0.24% 0.00% 0.01%
Supplemental data
Net assets, end of period (000 omitted) $237,153 $224,582 $232,506 $218,398 $229,285 $302,663
Portfolio turnover 6% 35% 33% 19% 11% 7%
</TABLE>
* 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, 1998 (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. The Trust consists of one portfolio. The financial statements included
herein are only those of Federated Intermediate Municipal Trust (the "Fund"), a
diversified portfolio. The investment objective of the Fund is to provide
current income exempt from federal regular income tax.
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, 1998, the Fund, for federal tax purposes, had a capital loss
carryforward of $3,602,846, 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
2004 $3,602,846
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 (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, 1998 May 31, 1998
<S> <C> <C>
Shares sold 6,492,015 13,361,560
Shares issued to shareholders in payment of distributions declared 127,748 250,950
Shares redeemed (5,627,633) (14,750,789)
Net change resulting from share transactions 992,130 (1,138,279)
</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, Inc. 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 Company ("FSSC"), the Fund will pay FSSC 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.
Transfer and Dividend Disbursing Agent Fees and Expenses
FServ, through its subsidiary, 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, 1998, 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 $75,685,000 and $74,685,000, respectively.
General
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
Year 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and Administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1998, were as follows:
Purchases $29,886,347
Sales $13,784,830
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
William J. Copeland
James E. Dowd, Esq.
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr., Esq.
Glen R. Johnson
Peter E. Madden
John E. Murray, Jr., J.D., S.J.D.
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
and Secretary
Richard J. Thomas
Treasurer
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.
[LOGO] FEDERATED INVESTORS
Federated
Intermediate
Municipal Trust
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
1-800-341-7400
www.federatedinvestors.com
Semi-Annual Report
to Shareholders
November 30, 1998
Cusip 458810108
8010413 (1/99)
[LOGO]
RECYCLED
PAPER
