SEMI-ANNUAL REPORT
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,
1999 through November 30, 1999, 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.1
Over the six-month reporting period, the fund paid dividends totaling $0.24 per
share. A rising rate environment caused the fund's net asset value to decline,
resulting in a total return of (2.18%).2 Assets totaled $208.3 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, 2000
1 Income may be subject to the federal alternative minimum tax and state and
local taxes.
2 Performance quoted represents past performance and is no guarantee 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 issuance of municipal debt declined by approximately 23% year-to-date when
compared with the same period last year. This decline in the supply of municipal
bonds reflects the significant reduction in the issuance of refunding bonds
(down -46.8% year-to-date) and reductions in new money issuance for projects as
a result of the general increase in the level of interest rates. Credit spread
widening in the municipal market has been the most prevalent in the hospital
sector. The hospital sector has continued to show specific vulnerability as a
result of Medicare reimbursement reductions and the related pressure on hospital
operations. Credit spreads have widened considerably since April 1999, with BBB
category hospital spreads widening 104 basis points off the 30-year Municipal
Market Data curve. Yields increased across the municipal yield curve over the
six-month reporting period ended November 30, 1999. Yields increased by 47 basis
points to 4.96% in the ten-year area of the AAA general obligation municipal
yield curve and by 64 basis points to 5.73% for 30-year maturities.
Fund Strategy
Federated Intermediate Municipal Trust's primary objective has been maximizing
tax-exempt income. As a result, our strategy has been to create a laddered
effective maturity structure within the portfolio, with the weighted average
duration target determining the maturity market value weightings. This structure
will better diversify the portfolio on the yield curve. This strategy also
allows greater flexibility to take advantage of total return opportunities
provided by the yield curve while maintaining the fund's primary income
objective. The strategy over the reporting period also included tax-swapping to
generate tax loss carry forwards, which can be used to off-set any realized
capital gains, while also adding incremental yield by improving the weighted
average book yield within the portfolio. Duration is managed within a range
consistent with the directive of the Chief Investment Officer. The current range
is neutral.
Fund Performance
For the six-month reporting period ended November 30, 1999, the fund produced a
total return of (2.18%).1 The 30-day current net distribution rate on November
30, 1999 was 4.90%. The fund's 30-day SEC yield as of November 30, 1999 was
4.62%.1 The fund's yield reflected the attractive coupons which the fund holds
relative to what is currently available in the municipal market. The fund's
total return performance reflects its neutral duration and average maturity
positioning within the intermediate portion of the municipal yield curve.
1 Performance quoted represents past performance and is no guarantee 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.
Market Outlook
The municipal bond market is technically driven by supply and demand imbalances
that are created by changes in interest rates, coupon payment period cycles and
economic conditions. The municipal market has recently experienced a demand
shift away from institutional buyers such as insurance companies, corporations
and arbitrageurs toward retail (individual) buyers of municipal bonds. The ratio
of municipal bond yields to Treasury bond yields has widened from highs near
100%, which has caused many crossover buyers to unwind their municipal
positions. Crossover buyers purchase municipal bonds on a relative valuation
basis and not necessarily because of tax exempt income. Due to the recent upward
bias in interest rates, the market has become especially sensitive to de minimus
problems. As a municipal bond approaches its de minimus threshold, the risk of
generating ordinary income that is taxed at the bondholder's top marginal
bracket becomes relevant. This reality impacts the bond's liquidity and requires
the bond's duration to be calculated on a tax-adjusted basis.
Portfolio of Investments
NOVEMBER 30, 1999 (UNAUDITED)
<TABLE>
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Principal
Credit/1/ Value
Amount
Rating
LONG-TERM MUNICIPALS--98.3%/2/
Alabama2.8%
$ 1,500,000 Alabama Water PCA, PCR Bonds, 6.35% (AMBAC INS),
8/15/2001 AAA $ 1,550,280
4,665,000 Hoover, AL IDB, Industrial Development Revenue Refunding Bonds
(Series NR 4,234,514
1998), 4.95% (Cricket Development Co.)/(Protective Life Corp. GTD),
12/1/2011
TOTAL
5,784,794
Alaska--1.9%
4,000,000 Alaska State Housing Finance Corp., General Mortgage Revenue Bonds
(Series AAA 4,033,320
A), 5.65% (MBIA INS), 12/1/2012
Arizona1.9%
1,800,000 Arizona Student Loan Acquisition Authority, Student Loan Revenue
Refunding Aaa 1,794,312
Bonds (Series 1999A-1), 5.50%, 5/1/2012
2,200,000 Arizona Student Loan Acquisition Authority, Student Loan Revenue
Refunding Aaa 2,192,696
Bonds (Series 1999A-1), 5.60%, 5/1/2013
TOTAL
3,987,008
California--1.8%
1,875,000 Los Angeles, CA Department of Water & Power, Electric Plant Revenue
Bonds, A+ 2,004,900
2nd Issue, 9.00%, 6/1/2001
1,770,000 Sierra View Local Health Care District, CA, Refunding Revenue
Bonds A 1,676,668
(Series 1998), 5.00% (American Capital Access INS)/(Original Issue
Yield:
5.10%), 7/1/2011
TOTAL
3,681,568
Colorado--0.5%
1,000,000 Colorado HFA, SFM Revenue Bonds (Series 1997C-3), 6.75%,
5/1/2017 Aa2 1,054,800
District Of Columbia3.3%
3,000,000 District of Columbia, Revenue Bonds, 5.75% (Catholic University
of AAA 2,945,640
America)/(AMBAC INS), 10/1/2017
4,000,000 District of Columbia, UT GO Bonds (Series 1999A), 5.50% (FSA INS),
6/1/2012 AAA 4,005,080
TOTAL
6,950,720
Florida--3.0%
2,000,000 Florida State Board of Education Administration, UT GO Capital
Outlay AA+ 2,058,760
Bonds (Series C), 6.25% (Florida State), 6/1/2001
3,000,000 Florida State Board of Education Administration, UT GO Capital
Outlay AA+ 3,077,760
Bonds, (Series B), 6.00% (Florida State), 6/1/2001
$ 970,000 Lee County, FL HFA, SFM Revenue Bonds (Series 1998A-2), 6.30%
(GNMA Aaa $ 1,006,394
Collateralized Home Mortgage Program COL), 3/1/2029
TOTAL
6,142,914
Georgia--1.5%
2,000,000 Georgia Municipal Electric Authority, Revenue Bonds (Series U),
6.50%, A 2,004,300
1/1/2000
1,000,000 Georgia Municipal Electric Authority, Revenue Bonds (Series U),
6.60%, A 1,025,010
1/1/2001
TOTAL
3,029,310
Hawaii--0.5%
1,000,000 Hawaii State, UT GO Bonds (Series BU), 5.85% (Original Issue
Yield: A+ 1,026,520
5.95%), 11/1/2001
Idaho--0.3%
775,000 Idaho Housing Agency, SFM Revenue Bonds, (Series D-2) Subordinate
Bonds, A1 740,621
5.25%, 7/1/2011
Illinois5.6%
1,260,000 Illinois Health Facilities Authority, Revenue Refunding Bonds
(Series A), AA 1,319,674
5.70% (Advocate Health Care Network)/(Original Issue Yield: 5.75%),
8/15/2011
2,540,000 Illinois Health Facilities Authority, Revenue Refunding Bonds
(Series B), AA 2,545,563
5.70% (Advocate Health Care Network)/(Original Issue Yield: 5.75%),
8/15/2011
3,000,000 Illinois Municipal Electric Agency, Power Supply System Revenue
Bonds AAA 3,067,950
(Series A), 6.20% (AMBAC INS), 2/1/2001
4,500,000 Illinois State, UT GO Bonds, 5.25%,
7/1/2004 AAA 4,607,370
TOTAL
11,540,557
Indiana--2.9%
1,400,000 Indiana Health Facility Financing Authority, Hospital Revenue
Refunding A 1,232,980
Bonds, 5.25% (Floyd Memorial Hospital, IN)/(Original Issue Yield:
5.45%),
2/15/2018
4,800,000 Indiana Health Facility Financing Authority, Hospital Revenue
Bonds AA 4,818,480
(Series 1996A), 5.50% (Clarian Health Partners, Inc.)/(Original Issue
Yield: 5.65%), 2/15/2010
TOTAL
6,051,460
Iowa--0.9%
2,000,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds (Series
1998A), AAA 1,902,140
5.125% (Iowa Health System)/(MBIA INS)/(Original Issue Yield: 5.15%),
7/1/2013
Kansas--1.3%
$ 1,810,000 Sedgwick & Shawnee Counties, KS, SFM Revenue Bonds (Series 1997A-2),
5.50% Aaa $ 1,883,341
(GNMA Collateralized Home Mortgage Program COL), 6/1/2029
810,000 Sedgwick County, KS, SFM Revenue Bonds (Series 1997A-2), 6.50%
(GNMA Aaa 827,051
Collateralized Home Mortgage Program COL), 12/1/2016
TOTAL
2,710,392
Massachusetts--1.7%
1,210,000 Massachusetts Development Finance Agency, Resource Recovery Revenue
Bonds BBB 1,099,805
(Series 1998B), 5.35% (Ogden Haverhill), 12/1/2015
1,000,000 Massachusetts Water Pollution Abatement Trust Pool, Program Bonds
(Series AAA 1,009,160
5), 5.50%, 8/1/2013
1,500,000 Massachusetts Water Pollution Abatement Trust Pool, Program Bonds
(Series AAA 1,500,480
5), 5.50%, 8/1/2014
TOTAL
3,609,445
Michigan--12.6%
1,785,000 Kent County, MI, Airport Revenue Bonds (Series 1998), 4.90% (Kent
County AAA 1,617,496
International Airport)/(MBIA INS)/(Original Issue Yield: 4.93%),
1/1/2014
2,480,000 Michigan Municipal Bond Authority, Revenue Bonds, 5.625% (Drinking
Water AA+ 2,526,153
Revolving Fund), 10/1/2012
2,610,000 Michigan Municipal Bond Authority, Revenue Bonds, 5.75% (Drinking
Water AA+ 2,644,426
Revolving Fund), 10/1/2014
2,000,000 Michigan State Building Authority, Revenue Bonds (Series II), 6.25%
(AMBAC AAA 2,038,000
INS)/ (Original Issue Yield: 6.35%), 10/1/2000
4,000,000 Michigan State Hospital Finance Authority, Revenue & Refunding
Bonds A1 3,669,720
(Series 1998A), 5.10% (McLaren Health Care Corp.)/(Original Issue
Yield:
5.15%), 6/1/2013
5,000,000 Michigan State Hospital Finance Authority, Revenue Bonds
(Series1999A), AAA 5,256,100
6.00% (Ascension Health Credit Group), 11/15/2011
3,705,000 Michigan State Housing Development Authority, (Series B) Rental
Housing AAA 3,826,042
Revenue Bonds, 5.65%, (MBIA INS), 10/1/2007
3,605,000 Michigan State Housing Development Authority, (Series B) Rental
Housing AAA 3,720,360
Revenue Bonds, 5.65%, (MBIA INS), 4/1/2007
1,000,000 Royal Oak, MI Hospital Finance Authority, Revenue Refunding Bonds,
7.40% AAA 1,002,930
(William Beaumont Hospital, MI), 1/1/2000
TOTAL
26,301,227
Missouri--6.2%
5,000,000 Missouri State HEFA, Health Facilities Revenue Bonds (Series A),
6.00% AA 5,298,500
(BJC Health System, MO)/(Original Issue Yield: 6.05%), 5/15/2005
5,000,000 Missouri State HEFA, Health Facilities Revenue Bonds (Series A),
6.10% AA 5,329,300
(BJC Health System, MO)/(Original Issue Yield: 6.15%), 5/15/2006
$ 1,000,000 Missouri State HEFA, Health Facilities Revenue Bonds (Series 1998),
5.10% AA $ 884,140
(Lake of the Ozarks General Hospital, Inc.)/(Original Issue Yield:
5.28%),
2/15/2018
1,425,000 Missouri State Housing Development Commission, SFM Loan Revenue
Bonds AAA 1,343,647
(Series 1998B), 5.20%, 9/1/2012
TOTAL
12,855,587
Nevada--1.4%
1,000,000 Clark County, NV School District, LT GO Bonds (Series A), 9.75%
(MBIAINS), AAA 1,028,290
6/1/2000
2,000,000 Reno, NV, Hospital Revenue Bonds (Series 1998A), 5.00% (St.
Mary's AAA 1,761,280
Regional Medical Center)/(MBIA INS)/(Original Issue Yield: 5.24%),
5/15/2018
TOTAL
2,789,570
New Hampshire--3.0%
2,805,000 New Hampshire Higher Educational & Health Facilities Authority,
Revenue A 2,609,912
Bonds (Series 1998), 5.125% (Franklin Pierce College)/(American
Capital
Access INS)/(Original Issue Yield: 5.25%), 10/1/2013
1,000,000 New Hampshire Higher Educational & Health Facilities Authority,
Revenue A 895,710
Bonds (Series 1998), 5.25% (Franklin Pierce College)/(American
Capital
Access INS)/(Original Issue Yield: 5.42%), 10/1/2018
2,555,000 New Hampshire State, UT GO Bonds (Series A), 6.40%,
6/15/2001 AA+ 2,636,811
TOTAL
6,142,433
New Jersey--3.4%
3,000,000 Essex County, NJ, General Improvement UT GO Bonds, 5.00%
(AMBACINS), AAA 2,987,280
8/1/2009
4,000,000 New Jersey EDA, Transportation Project Sublease Revenue
Bonds AAA 4,106,560
(Series1999A), 5.75% (New Jersey Transit Corporation Light Rail
Transit
System Projects), 5/1/2013
TOTAL
7,093,840
New York--8.8%
5,000,000 Municipal Assistance Corp of New York, Revenue Bonds (Series
1999O), AA 5,098,450
5.25%, 7/1/2007
5,000,000 New York City, NY, UT GO Bonds (Series 1999G), 6.00%,
10/15/2007 AAA 5,333,600
2,500,000 New York State Environmental Facilities Corp., State Water
Pollution AA- 2,655,975
Control Bonds (Series 1994E), 6.15% (Original Issue Yield: 6.25%),
6/15/2004
4,000,000 New York State Thruway Authority, Highway & Bridge Fund Revenue
Bonds AAA 4,167,760
(Series B), 5.625% (Original Issue Yield: 5.75%), 4/1/2005
$ 1,250,000 Suffolk County, NY IDA, IDRB (Series 1998), 5.30% (Nissequogue
Cogen NR $ 1,162,262
Partners Facility)/(Original Issue Yield: 5.325%), 1/1/2013
TOTAL
18,418,047
North Carolina--3.7%
1,275,000 Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue
Bonds, AA 1,313,314
5.90% (Original Issue Yield: 5.95%), 1/1/2002
2,080,000 Charlotte-Mecklenburg Hospital Authority, NC, Refunding Revenue
Bonds, AA 2,137,054
5.90% (Original Issue Yield: 5.95%), 1/1/2002
2,000,000 North Carolina Municipal Power Agency No. 1, Catawba Electric
Revenue A- 2,045,560
Refunding Bonds, 6.00%, (Original Issue Yield: 6.05%), 1/1/2004
2,000,000 North Carolina Municipal Power Agency No. 1, Catawba Electric
Revenue A- 2,180,340
Refunding Bonds, 7.25%, 1/1/2007
TOTAL
7,676,268
North Dakota--0.5%
1,100,000 Grand Forks, ND, Health Care System Revenue Bonds (Series 1997),
5.40% AAA 1,100,484
(Altru Health System Obligated Group)/(MBIA INS)/(Original Issue
Yield:
5.50%), 8/15/2011
Ohio--3.3%
2,000,000 Franklin County, OH, Development Revenue Bonds (Series 1999),
5.80% A 1,992,940
(American Chemical Society)/(Original Issue Yield: 5.83%), 10/1/2014
3,195,000 Lucas County, OH, Hospital Revenue Refunding Bonds (Series 1996),
5.50% AAA 3,282,447
(ProMedica Healthcare Obligated Group)/(MBIA INS)/(Original Issue
Yield:
5.75%), 11/15/2008
1,400,000 Montgomery County, OH, HFA Revenue Bonds (Series A), 6.20% (Sisters
of AAA 1,437,520
Charity Health Care System)/(MBIA INS)/(Original Issue Yield: 6.30%),
5/15/2001
TOTAL
6,712,907
Pennsylvania--8.2%
1,050,000 Allegheny County, PA IDA, Cargo Facilities Lease Revenue
Bonds NR 1,028,601
(Series1999), 6.00% (AFCO Cargo LLC Project), 9/1/2009
1,860,000 /4/Allegheny County, PA, UT GO Bonds (Series C-49), 5.00%,
4/1/2004 AAA 1,885,091
1,500,000 /4/Allegheny County, PA, UT GO Bonds (Series C-49), 5.00%,
4/1/2009 AAA 1,492,440
1,000,000 New Wilmington, PA Municipal Authority, College Revenue Bonds,
5.30% Baa1 885,200
(Westminister College)/(Original Issue Yield: 5.40%), 3/1/2018
4,000,000 Pennsylvania Intergovernmental Coop Authority, Special Tax
Revenue AAA 4,003,640
Refunding Bonds (Series 1999), 5.00%, 6/15/2007
5,000,000 Philadelphia, PA Hospitals & Higher Education Facilities Authority,
Health AA- 4,563,450
System Revenue Bonds (Series 1997A), 5.00% (Jefferson Health
System)/(Original Issue Yield: 5.40%), 5/15/2012
$ 2,000,000 Philadelphia Authority for Industrial Development, Airport Revenue
Bonds AAA $ 1,813,340
(Series 1998A), 5.00% (Philadelphia Airport System)/(FGIC
INS)/(Original
Issue Yield: 5.25%), 7/1/2015
1,500,000 Pittsburgh & Allegheny County, PA Auditorium Authority, Regional
Asset AAA 1,476,720
District Sales Tax Revenue Bonds (Series 1999), 5.25% (AMBAC INS),
2/1/2012
TOTAL
17,148,482
South Carolina--2.5%
3,090,000 South Carolina State Public Service Authority, Revenue
Obligations AAA 3,125,411
(Series 1999A), 5.625% (Santee Cooper), 1/1/2013
2,000,000 South Carolina Transportation Infrastructure Bank, Revenue
Bonds Aaa 2,044,920
(Series A), 5.50% (AMBAC INS), 10/1/2011
TOTAL
5,170,331
Texas--8.9%
2,850,000 Harrison County, TX Health Facilities Development Corp., Hospital
Revenue A 2,621,630
Bonds (Series 1998), 5.50% (Marshall Regional Medical
Center)/(American
Capital Access INS)/ (Original Issue Yield: 5.52%), 1/1/2018
4,500,000 Houston, TX ISD, LT GO Bonds, 8.375%,
8/15/2000 AAA 4,637,925
1,475,000 San Antonio, TX, UT GO General Improvement Bonds, 8.625%,
8/1/2000 AA+ 1,519,987
3,760,000 Texas State Department of Housing & Community Affairs, SFM Revenue
Bonds AAA 3,570,609
(Series B), 5.45% (MBIA INS), 3/1/2019
6,000,000 Texas Water Development Board, State Revolving Fund Sr. Lien
Revenue AAA 6,210,900
Bonds, 5.80% (Original Issue Yield: 5.90%), 7/15/2002
TOTAL
18,561,051
Washington--5.9%
1,020,000 Seattle, WA, LT GO Refunding Bonds, 6.00% (Original Issue Yield:
6.10%), AA+ 1,054,823
3/1/2002
1,500,000 Tacoma, WA Sewer Authority, Revenue Refunding Bonds (Series B),
5.70% AAA 1,572,480
(FGIC INS)/(Original Issue Yield: 5.85%), 12/1/2005
4,500,000 Washington Health Care Facilities Authority, Revenue Bonds (Series
1996), AAA 4,515,930
5.375% (Kadlec Medical Center, Richland)/(AMBAC INS)/(Original Issue
Yield: 5.63%), 12/1/2010
2,335,000 Washington Health Care Facilities Authority, Revenue Bonds,
5.25% AA 2,120,507
(Highline Community Hospital)/(Asset Guaranty INS)/(Original Issue
Yield:
5.30%), 8/15/2017
3,000,000 Washington State Public Power Supply System, (Nuclear Project No.
3) AA- 3,051,570
Refunding & Revenue Bonds (Series B), 5.70% (Original Issue Yield:
5.793%), 7/1/2010
TOTAL
12,315,310
TOTAL LONG-TERM MUNICIPALS (IDENTIFIED COST
$205,808,699) 204,531,106
SHORT-TERM MUNICIPALS--2.1%/2/
Idaho--0.4%
$ 800,000 3 Boise, ID Industrial Development Corp., Multi-Mode Variable
Rate A- $ 800,000
Industrial Development Revenue Bonds (Series 1998) Weekly VRDNs
(Multiquip, Inc. Project)/(Bank of Tokyo-Mitsubishi Ltd. LOC)
New York--0.5%
450,000 New York City, NY Transitional Finance Authority, (1998 Subseries
A-1) AA
Weekly VRDNs (Commerzbank AG, Frankfurt
LIQ) 450,000
565,000 St. Lawrence County, NY IDA, Civic Facility Revenue Bonds (Series
1990) A3 565,000
Weekly VRDNs (Clarkson University)/(Sumitomo Bank Ltd., Osaka LOC)
TOTAL
1,015,000
North Carolina--0.9%
900,000 Person County, NC Industrial Facilities & Pollution Control
Financing Aa3 900,000
Authority Daily VRDNs (Carolina Power & Light Co.)/(SunTrust Bank,
Atlanta
LOC)
1,000,000 Wake County, NC Industrial Facilities & PCFA, (Series 1990B) Daily
VRDNs AA- 1,000,000
(Carolina Power & Light Co.)/(Bank of New York, New York LOC)
TOTAL
1,900,000
Ohio--0.1%
300,000 Ohio State Air Quality Development Authority, (Series B) Daily
VRDNs AA- 300,000
(Cincinnati Gas and Electric Co.)/(Canadian Imperial Bank of
CommerceLOC)
Puerto Rico--0.2%
500,000 3 Puerto Rico Commonwealth Infrastructure Financing Authority,
Floater AAA 500,000
Certificates (Series 1998-139) Weekly VRDNs (AMBAC INS)/
(MorganStanley,
Dean Witter Municipal Funding, Inc. LIQ)
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED
COST) 4,515,000
TOTAL INVESTMENTS (IDENTIFIED COST
$210,323,699)5 $ 209,046,106
</TABLE>
1 Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
2 At November 30, 1999, 9.5% of the total investments at market value were
subject to alternative minimum tax.
3 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the Fund's Board of Trustees. At November 30, 1999, these
securities amounted to $1,300,000 which represents 0.6% of net assets.
4 This security was purchased on a when-issued basis.
5 The cost of investments for federal tax purposes amounts to $210,323,699. The
net unrealized depreciation of investments on a federal tax basis amounts to
$1,277,593 which is comprised of $3,012,893 appreciation and $4,290,486
depreciation at November 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($208,312,102) at November 30, 1999.
The following acronyms are used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation AMT --Alternative Minimum
Tax COL --Collateralized EDA -- Economic Development Authority FGIC --Financial
Guaranty Insurance Company FSA --Financial Security Assurance GNMA --Government
National Mortgage Association GO --General Obligation GTD --Guaranteed HEFA
- --Health and Education Facilities Authority HFA --Housing Finance Authority IDA
- --Industrial Development Authority IDB --Industrial Development Bond INS
- --Insured IDRB --Industrial Development Revenue Bond ISD --Independent School
District LIQ --Liquidity Agreement LLC --Limited Liability Corporation LOC
- --Letter of Credit LT --Limited Tax MBIA --Municipal Bond Investors Assurance
PCA --Pollution Control Authority PCR --Pollution Control Revenue PCFA
- --Pollution Control Finance Authority 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
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
<S>
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Assets:
Total investments in securities, at value (identified and tax cost
$210,323,699) $ 209,046,106
Income
receivable
3,489,081
Receivable for investments
sold
30,000
Receivable for shares
sold
176,000
Prepaid
Expenses
6,583
TOTAL
ASSETS
212,747,770
Liabilities:
Payable for investments
purchased $ 3,440,508
Income distribution
payable 852,605
Payable to
Bank
142,555
TOTAL
LIABILITIES
4,435,668
Net Assets for 20,650,575 shares
outstanding $
208,312,102
Net Assets Consist
of:
Paid in
capital
$ 214,575,438
Net unrealized depreciation of
investments
(1,277,593)
Accumulated net realized loss on
investments
(4,985,743)
TOTAL NET
ASSETS
$ 208,312,102
Net Asset Value, Offering Price and Redemption Proceeds Per
Share:
$208,312,102 / 20,650,575 shares
outstanding
$10.09
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Investment Income:
<S>
<C> <C> <C>
Interest
$ 5,902,154
Expenses:
Investment adviser
fee $ 443,196
Administrative personnel and services
fee 83,542
Custodian
fees
7,867
Transfer and dividend disbursing agent fees and
expenses 27,589
Directors'/Trustees'
fees 5,199
Auditing
fees
6,965
Legal
fees
3,839
Portfolio accounting
fees 32,796
Shareholder services
fee 276,998
Share registration
costs 11,183
Printing and
postage
2,617
Insurance
premiums
985
Miscellaneous
4,043
TOTAL
EXPENSES
906,819
Waivers:
Waiver of investment adviser fee $ (72,475)
Waiver of shareholder services fee (210,518)
TOTAL
WAIVERS
(282,993)
Net
expenses
623,826
Net investment
income
5,278,328
Realized and Unrealized Loss on Investments:
Net realized loss on
investments
(4,418,869)
Net change in unrealized depreciation of
investments
(5,871,706)
Net realized and unrealized loss on
investments
(10,290,575)
Change in net assets resulting from
operations $
(5,012,247)
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
November 30, Year Ended
1999 May 31, 1999
<S>
<C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income
$ 5,278,328 $ 11,220,354
Net realized gain (loss) on investments (($4,418,869) and $3,035,974,
(4,418,869) 3,035,974
respectively, as computed for federal tax purposes)
Net change in unrealized depreciation
(5,871,706) (6,084,113)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
(5,012,247) 8,172,215
Distributions to Shareholders:
Distributions from net investment income
(5,278,328) (11,220,354)
Share Transactions:
Proceeds from sale of shares
46,081,152 140,583,646
Net asset value of shares issued to shareholders in payment
of 1,154,013 3,325,538
distributionsdeclared
Cost of shares redeemed
(72,000,410) (122,075,316)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
(24,765,245) 21,833,868
Change in net assets
(35,055,820) 18,785,729
Net Assets:
Beginning of period
243,367,922 224,582,193
End of period $
208,312,102 $ 243,367,922
</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)
Year Ended May 31,
November 30, 1999 1999
1998 1997 1996 1995
<S> <C> <C>
<C> <C> <C> <C>
Net Asset Value, Beginning of $ 10.56 $ 10.69 $
10.50 $ 10.41 $ 10.55 $ 10.52
Period
Income
from
Investment
Operations:
Net investment income 0.24 0.51
0.53 0.53 0.53 0.54
Net realized and unrealized (0.47) (0.13)
0.19 0.09 (0.14) 0.03
gain (loss) on
investments
TOTAL FROM (0.23) (0.38)
0.72 0.62 0.39 0.57
INVESTMENT
OPERATIONS
Less
Distributions:
Distributions from net (0.24) (0.51)
(0.53) (0.53) (0.53) (0.54)
investment
income
Net Asset Value, End of Period $ 10.09 $ 10.56 $
10.69 $ 10.50 $ 10.41 $ 10.55
Total Return1 (2.18)% 3.59%
6.98% 6.11% 3.78% 5.67%
Ratios to Average Net
Assets:
Expenses 0.57%/2/ 0.57%
0.57% 0.57% 0.57% 0.59%
Net investment income 4.60%/2/ 4.76%
4.97% 5.09% 5.05% 5.23%
Expense waiver/reimbursement/3/ 0.25%/2/ 0.25%
0.25% 0.26% 0.24% 0.00%
Supplemental
Data:
Net assets, end of period $208,312 $243,368
$224,582 $232,506 $218,398 $229,285
(000
omitted)
Portfolio turnover 30% 34%
35% 33% 19% 11%
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 The 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
NOVEMBER 30, 1999 (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. Non-cash dividends are included in dividend income, if any, are recorded
at fair value.
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 provision for federal tax is
necessary.
At May 31, 1999, the Fund, for federal tax purposes, had a capital loss
carryforward of $566,874, which will reduce the Fund's taxable income arising
from future net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of the distributions to shareholders
which would otherwise be necessary to relieve the Fund of any liability for
federal tax. Pursuant to the Code, such capital loss carryforward will expire as
follows:
<TABLE>
<CAPTION>
Expiration Year Expiration Amount
<S> <C>
2004 $566,874
</TABLE>
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. Losses may occur on these transactions due to changes in market
conditions or the failure of counterparties to perform under the contract.
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 a trade date basis.
SHARES OF BENEFICIAL INTEREST
The Declaration of Fund 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 Year Ended
Ended November May 31, 1999
30, 1999
<S>
<C> <C>
Shares
sold
4,469,979 13,101,446
Shares issued to shareholders in payment of distributions
declare 112,876 309,954
Shares
redeemed
(6,985,979) (11,372,404)
NET CHANGE RESULTING FROM SHARE
TRANSACTIONS
(2,403,124) 2,038,996
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser 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 and/or reimburse certain operating expenses of
the Fund. The Adviser can modify or terminate this voluntary waiver and/or
reimbursement at any time at its sole discretion.
Administrative Fee
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per additional class.
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 FSSC is used to
finance certain services for shareholders and to maintain shareholder accounts.
FSSC may voluntarily choose to waive any portion of its fee. FSSC 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 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 six months ended November 30, 1999, 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 complied with Rule 17a-7 under
the Act and amounted to $87,975,000 and $73,920,000, 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 (and in-kind
contributions), for the six months ended November 30, 1999, were as follows:
<TABLE>
<S> <C>
Purchases $63,990,049
Sales $78,778,357
</TABLE>
Trustees
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
John F. Cunningham
Lawrence D. Ellis, M.D.
Peter E. Madden
Charles F. Mansfield, Jr.
John E. Murray, Jr., J.D., S.J.D
MArjorie P. Smuts
John S. Walsh
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
Leslie K. Ross
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 the 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 OF FEDERATED INVESTORS]
Federated
Intermediate
Municipal
Trust
SEMI-ANNUAL REPORT TO
SHAREHOLDERS
NOVEMBER 30, 1999
[LOGO OF FEDERATED INVESTORS]
Federated Intermediate Municipal Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor
Cusip 458810108
8010413 (1/00)
Federated is a registered mark
of Federated Investors, Inc.
2000 (c)Federated Investors, Inc.
[RECYCLED PAPER LOGO]
