<PAGE>
[LOGO OF TRUST FOR CREDIT UNIONS APPEARS HERE]
Semiannual Report
---------------------
February 29, 1996
<PAGE>
TRUST FOR CREDIT UNIONS
----------------
MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------- -------- -------- ---------
<S> <C> <C> <C>
Bank Notes (8.5%)
FCC National Bank
$ 10,000 5.25% 03/06/96 $ 10,000
First of America Bank - Illinois
15,000 5.17 05/28/96 15,000
NationsBank of Texas, N.A.
15,000 5.13 05/22/96 15,000
Seattle First National Bank
10,000 5.64 03/06/96 10,000
--------
Total Bank Notes.................................. $ 50,000
--------
<CAPTION>
Bankers' Acceptances (4.2%)
<S> <C> <C> <C>
SunTrust Bank of Atlanta
$ 10,000 5.42%/(a)/ 04/16/96 $ 9,932
Wachovia Bank of North Carolina, N.A.
15,000 5.63/(a)/ 03/14/96 14,970
--------
Total Bankers' Acceptances........................ $ 24,902
--------
<CAPTION>
Certificates of Deposit (7.8%)
<S> <C> <C> <C>
Bank One Indianapolis, N.A.
$ 20,000 5.25% 03/07/96 $ 20,000
National Bank of Detroit
11,000 5.20 03/06/96 11,000
U.S. National Bank of Oregon
15,000 5.25 03/06/96 15,000
--------
Total Certificates of Deposit..................... $ 46,000
--------
<CAPTION>
Certificates of Deposit - Eurodollar (3.4%)
<S> <C> <C> <C>
Bankers Trust Co., London
$ 5,000 5.68% 03/04/96 $ 5,000
Morgan Guaranty Trust Co., London
15,000 5.67 03/06/96 15,000
--------
Total Certificates of Deposit - Eurodollar........ $ 20,000
--------
<CAPTION>
Federal Funds (5.1%)
<S> <C> <C> <C>
American Express Centurion Bank
$ 20,000 5.28% 03/11/96 $ 20,000
U.S. Bank of Washington
10,000 5.25 04/02/96 10,000
--------
Total Federal Funds............................... $ 30,000
--------
<CAPTION>
Repurchase Agreements (71.2%)
<S> <C> <C> <C>
CS First Boston Corp., dated 01/29/96,
repurchase price $15,204 (FNMA:
$15,492, 6.31-7.14%, 07/01/18-10/01/24)
$15,000 5.32% 04/29/96 $ 15,000
CS First Boston Corp., dated 12/05/95,
repurchase price $40,573 (FNMA:
$41,673, 6.31-6.50%, 05/01/18-12/01/24)
40,000 5.67 03/04/96 40,000
Joint Repurchase Agreement Accounts
100,000 5.44 03/01/96 100,000
185,600 5.45 03/01/96 185,600
Lehman Brothers Government Securities,
Inc., dated 12/12/95, repurchase price
$15,214 (FHLMC: $6,422, 7.00-7.50%,
11/01/07-05/01/09) (FNMA: $9,322, 7.00-
7.50%, 05/01/09-10/01/25)
15,000 5.65 03/11/96 15,000
Morgan Stanley & Co., Inc., dated
01/26/96, repurchase price $50,679
(FNMA: $51,640, 7.00-8.50%, 09/01/23-
10/01/25)
50,000 5.38 04/25/96 50,000
</TABLE>
The accompanying notes are an integral
part of these financial statements.
1
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
MONEY MARKET PORTFOLIO--(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------- -------- -------- ---------
<S> <C> <C> <C>
Repurchase Agreements--(Continued)
Morgan Stanley & Co., Inc., dated
12/12/95, repurchase price $15,213
(FHLMC: $15,319, 7.00%, 04/01/97)
(U.S. Treasury Note: $354, 6.63%,
03/31/97)
$ 15,000 5.63% 03/11/96 $ 15,000
--------
Total Repurchase Agreements....................... $420,600
--------
Total Investments................................. $591,502/(b)/
========
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
/(a)/The rate disclosed for this security represents the yield to maturity.
/(b)/The amount stated also represents aggregate cost for federal income tax
purposes.
The accompanying notes are an integral
part of these financial statements.
2
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations (73.7%)
Adjustable Rate Federal Home Loan Mortgage Corp.
(FHLMC)/(a)/ (22.5%)
$ 1,806 8.20% 04/01/18 $ 1,855
10,392 7.63 05/01/18 10,685
2,174 7.98 01/01/19 2,242
5,853 7.73 02/01/22 5,979
32,991 7.94 02/01/22 34,083
29,253 7.80 04/01/22 30,179
2,494 7.39 11/01/22 2,517
12,582 7.82 06/01/24 12,906
6,831 7.61 04/01/28 6,967
3,346 7.72 07/01/29 3,394
9,470 7.80 05/01/31 9,660
--------
Total Adjustable Rate FHLMC....................... $120,467
========
<CAPTION>
Adjustable Rate Federal National Mortgage Association
(FNMA)/(a)/ (41.7%)
<S> <C> <C> <C>
$ 4,561 7.08% 03/01/17 $ 4,600
2,648 7.83 11/01/17 2,707
18,403 7.41 12/01/17 18,839
5,718 7.73 08/01/18 5,856
1,854 7.63 11/01/18 1,901
28,279 7.49 06/01/19 28,963
3,032 7.50 07/01/19 3,096
3,683 7.71 09/01/19 3,781
7,325 7.00 12/01/19 7,353
5,073 7.88 03/01/20 5,243
2,686 7.75 05/01/20 2,759
19,680 7.44 04/01/21 20,154
<CAPTION>
Mortgage Backed Obligations--(Continued)
Adjustable Rate FNMA--(Continued)
<S> <C> <C> <C>
$41,768 7.75% 09/01/21 $ 43,117
2,456 7.66 10/01/21 2,501
1,665 7.88 11/01/21 1,707
2,871 7.94 02/01/22 2,958
27,271 7.90 09/01/22 28,164
6,261 7.73 07/01/27 6,413
4,403 7.43 10/01/27 4,508
11,659 7.86 01/01/31 12,024
16,390 6.37 02/01/31 16,534
--------
Total Adjustable Rate FNMA........................ $223,178
========
<CAPTION>
Adjustable Rate Government National Mortgage
Association (GNMA)/(a)/ (4.8%)
<S> <C> <C> <C>
$25,344 6.00% 10/20/25 $ 25,480
--------
Collateralized Mortgage Obligations (CMOs) (4.7%)
Adjustable Rate CMO/a/ (3.1%)
FNMA REMIC Trust 1990-145, Class A
$16,969 6.83% 12/25/20 $ 16,957
--------
Planned Amortization Class Interest-Only (PAC IO)
CMO (0.0%)
FNMA REMIC Trust 1991-120, Class H
$ 10 484.26%/b/ 06/25/00 $ 15
--------
</TABLE>
The accompanying notes are an integral
part of these financial statements.
3
<PAGE>
TRUST FOR CREDIT UNIONS
-------------
GOVERNMENT SECURITIES PORTFOLIO--(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations--(Continued)
Super Floater CMO/a/ (1.6%)
FNMA REMIC Trust 1992-157, Class FA
$ 8,842 1.03% 03/25/04 $ 8,482
--------
Total CMOs........................................ $ 25,454
--------
Total Mortgage Backed
Obligations (cost $398,518)...................... $394,579
--------
U.S. Treasury Obligations (26.8%)
U.S. Treasury Notes
$78,400 7.25% 11/15/96 $ 79,429
13,000 5.63 10/31/97 13,041
39,500 7.50 10/31/99/d/ 41,870
9,000 6.13 07/31/00 9,123
--------
Total U.S. Treasury Obligations
(cost $144,265).................................. $143,463
--------
Repurchase Agreements (2.5%)
Joint Repurchase Agreement Account
$13,600 5.44% 03/01/96/d/ $ 13,600
--------
Total Repurchase Agreements
(cost $13,600)................................... $ 13,600
--------
Total Investments (cost
$556,383/c/)..................................... $551,642
========
- --------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in
which value exceeds cost................................ $ 22
Gross unrealized loss for investments in
which cost exceeds value................................ (4,765)
--------
Net unrealized loss...................................... $ (4,743)
=========
- --------------------------------------------------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
/a/Variable rate security. Coupon rate disclosed is that which is in effect
at February 29, 1996.
/b/Represents security with notional or nominal principal amount. The actual
effective yield of this security is different than the stated rate due to the
amortization of related premiums.
/c/The aggregate cost for federal income tax purposes is $556,385.
/d/All or a portion of these securities are being segregated for extended
settlements.
The accompanying notes are an integral
part of these financial statements.
4
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations (65.9%)
Adjustable Rate Government National Mortgage
Association/a/ (GNMA) (4.5%)
$13,915 6.00% 10/20/25 $13,989
-------
Fixed Rate GNMA (2.1%)
$ 5,797 10.00% 10/15/16 $ 6,426
-------
Collateralized Mortgage Obligations (CMOs) (59.3%)
Adjustable Rate CMOs/a/ (31.2%)
Citicorp Mortgage Securities, Inc. 1992-17, Class A
$ 9,243 7.72% 09/25/22 $ 9,406
CMC Securities Corp. II 1993-H, Class A1
5,026 7.78 09/25/23 5,095
CMC Securities Corp. II 1993-I, Class A2
5,201 7.29 09/25/23 5,243
DLJ Mortgage Acceptance Corp. 1993-Q6, Class A2
541 7.66 05/25/23 549
Independent National Mortgage Corp. 1994-W, Class A1
8,890 8.08 12/25/24 9,055
Merrill Lynch Mortgage Investors, Inc. 1994-I, Class A1
9,198 7.85 01/25/05 9,377
Prudential Home Mortgage 1991-15, Class A1
1,150 8.42 11/25/21 1,171
Prudential Home Mortgage 1992-08, Class A1
348 8.11 04/25/22 354
<CAPTION>
Mortgage Backed Obligations--(Continued)
<S> <C> <C> <C>
Adjustable Rate CMOs--(Continued)
Prudential Home Mortgage 1992-24, Class A1
$ 4,154 8.82% 09/25/22 $4,232
Resolution Trust Corp. 1992-4, Class B2
4,500 7.61 07/25/28 4,557
Resolution Trust Corp. 1992-11, Class A2
3,323 7.71 10/25/24 3,349
Resolution Trust Corp. 1992-11, Class B2
7,501 7.71 10/25/24 7,525
Resolution Trust Corp. 1994-1, Class M3
5,226 8.15 09/25/29 5,356
Resolution Trust Corp. 1995-1, Class A3
7,456 7.50 10/25/28 7,563
Resolution Trust Corp. 1995-1, Class M3
3,509 7.50 10/25/28 3,528
Ryland Mortgage Securities Corp. 1989-FN1, Class A
1,644 7.86 11/01/18 1,669
Ryland Mortgage Securities Corp. 1991-1, Class B1
2,031 7.58 03/25/20 2,054
Ryland Mortgage Securities Corp. 1991-7, Class A1
1,740 7.05 06/01/21 1,739
Ryland Mortgage Securities Corp. 1992-3, Class A2
439 7.66 06/25/20 442
Salomon Brothers Mortgage Securities 1994-20, Class A
7,759 7.96 08/01/24 7,923
</TABLE>
The accompanying notes are an integral
part of these financial statements.
5
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
MORTGAGE SECURITIES PORTFOLIO--(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations--(Continued)
Adjustable Rate CMOs--(Continued)
Saxon Mortgage Securities Corp. 1992-1, Class B1
$ 6,800 8.06% 09/25/22 $ 6,838
Saxon Mortgage Securities Corp. 1993-1,
Class A2
79 8.20 02/25/23 80
-------
Total Adjustable Rate CMOs............................ $97,105
Planned Amortization Class (PAC) CMOs (10.0%)
CMC Securities Corp. 1993-F, Class A2
$ 5,000 6.75% 11/25/23 $ 5,016
GE Capital Mortgage Services, Inc. 1994-11, Class A1
12,872 6.50 03/25/24 12,880
GE Capital Mortgage Services, Inc. 1994-7, Class A6
2,721 5.50 02/25/09 2,653
Housing Securities, Inc. 1993-E, Class E8
5,591 10.00 02/25/08 5,851
Prudential Home Mortgage 1993-54, Class A4
4,721 6.50 01/25/24 4,715
-------
Total PAC CMOs........................................ $31,115
Sequential Fixed Rate CMOs (18.1%)
CMC Securities Corp. 1993-C, Class C3
$ 4,220 9.55% 04/25/08 $ 4,331
FNMA Remic Trust 1989-59, Class H
15,000 7.75 10/25/18 15,251
<CAPTION>
Mortgage Backed Obligations--(Continued)
Sequential Fixed Rate CMOs--(Continued)
Prudential Home Mortgage 1992-A, Class 1B1
$ 7,199 7.20% 04/28/22 $ 7,077
Prudential Home Mortgage 1992-20, Class SA
5,275 7.65 08/25/22 5,267
Prudential Home Mortgage 1992-39, Class A3
8,000 5.80 12/25/07 7,950
Prudential Home Mortgage 1993-38, Class A4
12,345 9.55 09/25/23 12,833
Ryland Mortgage Securities Corp. 72, Class D
1,850 9.85 12/01/16 1,919
Salomon Brothers Mortgage Securities 1994-6, Class A1
1,775 7.02 05/25/24 1,772
------
Total Sequential Fixed Rate CMOs..................... $56,400
--------
Total CMOs........................................... $184,620
--------
Total Mortgage Backed Obligations
(cost $204,388)..................................... $205,035
--------
U.S. Treasury Obligations (33.3%)
U.S. Treasury Notes
$28,600 5.63% 10/31/97 $28,689
27,900 7.50 10/31/99 29,574
32,670 7.25 08/15/04 35,079
</TABLE>
The accompanying notes are an integral
part of these financial statements.
6
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
MORTGAGE SECURITIES PORTFOLIO--(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
U.S. Treasury Obligations--(Continued)
U.S. Treasury Principal-Only Stripped Security
$17,600 6.26%/b/ 11/15/04 $ 10,274
--------
Total U.S. Treasury Obligations
(cost $104,297)......................... $103,616
--------
Repurchase Agreements (3.8%)
Joint Repurchase Agreement Account
$11,900 5.44% 03/01/96 $ 11,900
--------
Total Repurchase Agreements
(cost $11,900).......................... $ 11,900
--------
Total Investments
(cost $320,585/c/)...................... $320,551
========
- --------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in
which value exceeds cost................................... $ 1,263
Gross unrealized loss for investments in
which cost exceeds value................................... (1,389)
--------
Net unrealized loss........................................... $ (126)
========
- --------------------------------------------------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
/a/Variable rate security. Coupon rate disclosed is that which is in effect
at February 29, 1996.
/b/The interest rate disclosed for this securitity represents the effective
yield to maturity.
/c/The aggregate cost for federal income tax purposes is $320,677.
The accompanying notes are an integral
part of these financial statements.
7
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
TARGET MATURITY PORTFOLIO (1996)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations (69.7%)
Adjustable Rate Federal Home Loan Mortgage Corp. (FHLMC)/a/ (5.8%)
$ 2,134 7.94% 10/01/19 $ 2,204
5,000 7.85 07/01/30 5,148
--------
Total Adjustable Rate FHLMC............. $ 7,352
--------
Adjustable Rate Federal National Mortgage Association (FNMA)/a/ (9.6%)
$ 8,498 7.53% 05/01/22 $ 8,760
3,303 7.86 01/01/31 3,406
--------
Total Adjustable Rate FNMA.............. $ 12,166
--------
Adjustable Rate Government National Mortgage Association (GNMA)/a/ (4.4%)
$ 5,483 6.00% 11/20/25 $ 5,513
--------
Collateralized Mortgage Obligations (CMOs) (49.9%)
Adjustable Rate CMOs/a/ (33.6%)
Capstead Securities Corp. 1992-14, Class A
$ 2,040 7.52% 10/25/22 $ 2,051
Chase Mortgage Finance Corp. 1990-E, Class A1
2,554 7.47 11/25/20 2,580
Citicorp Mortgage Securities, Inc. 1992-17, Class A
3,991 7.72 09/25/22 4,061
CMC Securities Corp. 1993-2F, Class A1
2,404 7.59 05/25/22 2,437
<CAPTION>
Mortgage Backed Obligations--(Continued)
Adjustable Rate CMOs--(Continued)
Housing Securities, Inc. 1992-SL1, Class A1
$ 1,901 8.18% 05/25/16 $ 1,945
Independent National Mortgage Corp. 1994-V, Class A1
3,711 8.17 12/25/24 3,797
Prudential Home Mortgage 1992-24, Class A1
1,876 8.82 09/25/22 1,911
Resolution Trust Corp. 1992-11, Class B2
3,700 7.71 10/25/24 3,712
Salomon Brothers Mortgage Securities 1990-3A, Class 1
2,419 6.67 11/25/20 2,399
Salomon Brothers Mortgage Securities 1992-6, Class A1
3,222 7.57 11/25/22 3,254
Saxon Mortgage Securities Corp. 1992-1, Class B1
4,400 8.06 09/25/22 4,425
Saxon Mortgage Securities Corp. 1992-4, Class A
1,018 7.92 12/25/22 1,028
Saxon Mortgage Securities Corp. 1992-6, Class A
1,326 7.96 01/25/23 1,339
Saxon Mortgage Securities Corp. 1994-11, Class A
2,838 7.93 12/25/24 2,900
</TABLE>
The accompanying notes are an integral
part of these financial statements.
8
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
TARGET MATURITY PORTFOLIO (1996)--(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations--(Continued)
Adjustable Rate CMOs--(Continued)
Saxon Mortgage Securities Corp. 1995-1,
Class A
$ 4,547 7.64% 04/25/25 $ 4,641
--------
Total Adjustable Rate CMOs................. $ 42,480
--------
Planned Amortization Class (PAC) CMO (5.4%)
Housing Securities, Inc. 1993-E, Class E8
$ 6,537 10.00% 02/25/08 $ 6,841
--------
Regular Floater CMO(a) (0.9%)
Capstead Securities Corp. 1993-1, Class F
$ 1,082 6.25% 03/01/18 $ 1,083
--------
Sequential Fixed Rate CMOs (10.0%)
FHLMC Series 1028, Class F
$ 3,487 9.30% 05/15/05 $ 3,537
FHLMC Series 1056, Class G
1,035 8.00 12/15/18 1,038
Merrill Lynch Trust 39, Series C
1,000 9.40 12/27/18 982
Prudential Home Mortgage 1993-38,
Class A4
4,820 9.55 09/25/23 5,010
Residential Resources, Inc. 15, Class C
2,128 9.75 11/20/18 2,141
--------
Total Sequential Fixed Rate CMOs........... $ 12,708
--------
Total CMOs................................. $ 63,112
--------
Total Mortgage Backed Obligations
(cost $87,863)............................ $ 88,143
--------
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
U.S. Treasury Obligations (17.1%)
U.S. Treasury Notes
$20,300 7.25% 11/15/96 $ 20,566
1,000 5.88 05/31/96 1,001
--------
Total U.S. Treasury Obligations
(cost $21,601)............................ $ 21,567
--------
Repurchase Agreements (4.5%)
Joint Repurchase Agreement Account
$ 5,700 5.44% 03/01/96 $ 5,700
--------
Total Repurchase Agreements
(cost $5,700)............................. $ 5,700
--------
Total Investments
(cost $115,164/b/)........................ $115,410
========
- --------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in
which value exceeds cost................................... $ 545
Gross unrealized loss for investments in
which cost exceeds value................................... (307)
--------
Net unrealized gain......................................... $ 238
========
- --------------------------------------------------------------------------------
</TABLE>
The percentage shown for each investment category reflects
the value of investments in that category as a percentage of
total net assets.
(a)Variable rate security. Coupon rate disclosed is that which is in effect
at February 29, 1996.
(b)The aggregate cost for federal income tax purposes is $115,172.
The accompanying notes are an integral
part of these financial statements.
9
<PAGE>
TRUST FOR CREDIT UNIONS
--------------
TARGET MATURITY PORTFOLIO (FEB 97)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations (69.5%)
Adjustable Rate Federal Home Loan Mortgage Corp.
(FHLMC)/a/ (4.7%)
$4,277 8.00% 09/01/18 $4,402
------
Adjustable Rate Government National Mortgage
Association (GNMA)/a/ (4.7%)
$3,936 6.00% 07/20/25 $3,966
509 6.00 11/20/25 512
------
Total Adjustable Rate GNMA....... $4,478
------
Fixed Rate GNMA (2.2%)
$1,917 10.00% 10/15/16 $2,125
------
Collateralized Mortgage Obligations (CMOs) (57.9%)
Adjustable Rate CMOs/a/ (30.6%)
Chase Mortgage Finance Corp. 1990-E,
Class A1
$1,998 7.47% 11/25/20 $2,019
CMC Securities Corp. 1993-H, Class A1
1,942 7.78 09/25/23 1,968
Merrill Lynch Mortgage Investors, Inc.
1994-I, Class A1
3,367 7.85 01/25/05 3,433
Resolution Trust Corp. 1992-11, Class B2
2,700 7.71 10/25/24 2,709
Resolution Trust Corp. 1994-1, Class M3
1,888 8.15 09/25/29 1,935
Resolution Trust Corp. 1995-1, Class A3
4,386 7.50 10/25/28 4,449
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations--(Continued)
Adjustable Rate CMOs--(Continued)
Ryland Mortgage Securities Corp. 1992-L10,
Class A
$2,060 8.01% 08/25/22 $ 2,075
Salomon Brothers Mortgage Securities
1994-20, Class A
2,790 7.96 08/01/24 2,849
Saxon Mortgage Securities Corp. 1992-4,
Class A
763 7.92 12/25/22 771
Saxon Mortgage Securities Corp. 1992-6,
Class A
1,160 7.96 01/25/23 1,172
Saxon Mortgage Securities Corp. 1994-11,
Class A
2,166 7.93 12/25/24 2,213
Saxon Mortgage Securities Corp. 1995-1,
Class A
3,370 7.64 04/25/25 3,439
-------
Total Adjustable Rate CMOs............ $29,032
Regular Floater CMO/a/ (2.1%) =======
Collateralized Mortgage Securities Corp.
1990-6, Class H
$2,000 6.08% 10/20/20 $ 2,008
=======
Sequential Fixed Rate CMOs (25.2%)
Capstead Securities Corp. 1992-12B,
Class P11
$ 227 8.33% 11/25/05 $ 227
FNMA REMIC Trust 1989-10, Class D
5,000 9.50 07/25/09 5,222
</TABLE>
The accompanying notes are an intergral part of these financial statements.
10
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
TARGET MATURITY PORTFOLIO (FEB 97)-(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
- --------- -------- -------- ---------
<S> <C> <C> <C>
Mortgage Backed Obligations--(Continued)
Sequential Fixed Rate CMOs--(Continued)
FNMA REMIC Trust 1989-80, Class E
$ 7,000 9.00% 09/25/18 $ 7,234
FNMA REMIC Trust 1991-G35, Class K
2,202 8.00 06/25/20 2,219
Prudential Home Mortgage 1993-38, Class A4
4,435 9.55 09/25/23 4,610
Salomon Brothers Mortgage Securities
1994-6, Class A1
4,318 7.02 05/25/24 4,312
------
Total Sequential Fixed Rate
CMOs.................................. $23,824
-------
Total CMOs............................. $54,864
Total Mortgage Backed -------
Obligations (cost $65,549)............ $65,869
-------
U.S. Treasury Obligations (26.5%)
U.S. Treasury Notes
$12,500 5.63% 10/31/97 $12,539
300 7.38 11/15/97 309
11,600 7.50 10/31/99 12,296
Total U.S. Treasury Obligations -------
(cost $25,254)........................ $25,144
-------
Repurchase Agreements (1.6%)
Joint Repurchase Agreement Account
$ 1,500 5.44% 03/01/96 $ 1,500
Total Repurchase Agreements -------
(cost $1,500)......................... $1,500
------
Total Investments
(cost $92,303/b/)..................... $92,513
=======
- --------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in
which value exceeds cost.................................. $ 456
Gross unrealized loss for investments in
which cost exceeds value.................................. (246)
------
Net unrealized gain........................................ $ 210
=====
- --------------------------------------------------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
/a/Variable rate security. Coupon rate disclosed is that which is in effect
at February 29, 1996.
/b/The amount stated also represents aggregate cost for federal income tax
purposes.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
TRUST FOR CREDIT UNIONS
----------------
TARGET MATURITY Portfolio (MAY 97)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
--------- -------- -------- -----
<S> <C> <C> <C>
Mortgage Backed Obligations (70.8%)
Adjustable Rate Federal Home Loan Mortgage Corp.
(FHLMC)/(a)/ (4.1%)
$2,500 7.85% 07/01/30 $2,574
------
Adjustable Rate Government National Mortgage
Association (GNMA)/(a)/(4.7%)
$2,990 6.00% 11/20/25 $3,006
------
Fixed Rate GNMA (2.5%)
$1,457 10.00% 10/15/16 $1,615
------
Collateralized Mortgage Obligations (CMOs) (59.5%)
Adjustable Rate CMOs/(a)/(30.5%)
Citicorp Mortgage Securities, Inc. 1992-17,
Class A
$2,101 7.72% 09/25/22 $2,138
Independent National Mortgage Corp.
1994-W, Class A1
2,223 8.08 12/25/24 2,264
Merrill Lynch Mortgage Investors, Inc.
1994-I, Class A1
2,464 7.85 01/25/05 2,512
Prudential Home Mortgage 1992-24,
Class A1
1,072 8.82 09/25/22 1,092
Resolution Trust Corp. 1992-11, Class A2
2,374 7.71 10/25/24 2,392
Resolution Trust Corp. 1994-1, Class M3
1,344 8.15 09/25/29 1,377
Salomon Brothers Mortgage Securities
1994-20, Class A
1,940 7.96 08/01/24 1,981
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value
--------- -------- -------- -----
<S> <C> <C> <C>
Mortgage Backed Obligations--(Continued)
Adjustable Rate CMOs--(Continued)
Saxon Mortgage Securities Corp. 1992-4,
Class A
$ 890 7.92% 12/25/22 $ 899
Saxon Mortgage Securities Corp. 1992-6,
Class A
704 7.96 01/25/23 711
Saxon Mortgage Securities Corp. 1994-11,
Class A
1,494 7.93 12/25/24 1,526
Saxon Mortgage Securities Corp. 1995-1,
Class A
2,436 7.64 04/25/25 2,486
-------
Total Adjustable Rate CMOs..... $19,378
-------
Inverse Floater CMOs/(a)/(11.6%)
FHLMC Series 1266, Class F
$3,000 10.12% 05/15/97 $ 3,058
FHLMC Series 1270, Class S
1,117 10.40 05/15/97 1,144
FHLMC Series 1284, Class E
1,742 9.01 05/15/97 1,783
FNMA Remic Trust G-14, Series S
1,308 14.41 01/25/20 1,343
-------
Total Inverse Floater CMOs..... $ 7,328
-------
Sequential Fixed Rate CMOs (17.4%)
FNMA REMIC Trust 1988-25, Class B
$ 998 9.25% 10/25/18 $ 1,057
FNMA REMIC Trust 1990-24, Class E
3,500 9.00 03/25/20 3,679
</TABLE>
The accompanying notes are an integral
part of these financial statements.
12
<PAGE>
TRUST FOR CREDIT UNIONS
----------------
TARGET MATURITY PORTFOLIO (MAY 97)--(Continued)
STATEMENT OF INVESTMENTS
February 29, 1996
(Unaudited)
($ in Thousands)
Principal Interest Maturity
Amount Rate Date Value
--------- -------- -------- -----
[S] [C] [C] [C]
Mortgage Backed Obligations--(Continued)
Sequential Fixed Rate CMOs--(Continued)
Prudential Home Mortgage 1993-38,
Class A4
$3,181 9.55% 09/25/23 $ 3,307
Salomon Brothers Mortgage Securities
1994-6, Class A1
3,023 7.02 05/25/24 3,019
-------
Total Sequential Fixed Rate
CMOs.................................... $11,062
-------
Total CMOs................................ $37,768
-------
Total Mortgage Backed
Obligations (cost $44,526).............. $44,963
-------
U.S. Treasury Obligations (24.9%)
U.S. Treasury Notes
$8,700 5.63% 10/31/97 $ 8,727
6,050 7.38 11/15/97 6,235
800 7.50 10/31/99 848
-------
Total U.S. Treasury Obligations
(cost $15,904).......................... $15,810
-------
Repurchase Agreements (2.2%)
Joint Repurchase Agreement Account
$1,400 5.44% 03/01/96 $ 1,400
-------
Total Repurchase Agreements
(cost $1,400)........................... $ 1,400
-------
Total Investments
(cost $61,830/(b)/)..................... $62,173
=======
- --------------------------------------------------------------------------------
Federal Income Tax Information:
Gross unrealized gain for investments in
which value exceeds cost.............................. $ 522
Gross unrealized loss for investments in
which cost exceeds value.............................. (179)
-------
Net unrealized gain.................................... $ 343
=======
- --------------------------------------------------------------------------------
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of total net assets.
/(a)/Variable rate security. Coupon rate disclosed is that which is in effect
at February 29, 1996.
/(b)/The amount stated also represents aggregate cost for federal income tax
purposes.
The accompanying notes are an integral
part of these financial statements.
13
<PAGE>
TRUST FOR CREDIT UNIONS
----------------
STATEMENTS OF ASSETS AND LIABILITIES
February 29, 1996
(Unaudited)
<TABLE>
<CAPTION>
Target Target Target
Money Government Mortgage Maturity Maturity Maturity
Market Securities Securities Portfolio Portfolio Portfolio
Portfolio Portfolio Portfolio (1996) (Feb 97) (May 97)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost:
$591,501,557, $556,382,607,
$320,585,292, $115,163,929,
$92,303,141, $61,829,582, respectively) $591,501,557 $551,642,178 $320,551,408 $115,410,254 $92,512,580 $62,172,947
Cash....................................... 13,235 50,207 53,406 95,372 18,656 65,021
Receivables:
Investment securities sold............... -- 44,390,982 14,282,111 10,374,206 1,631,927 1,012,768
Interest................................. 2,008,596 6,295,474 2,608,637 1,061,552 999,465 648,557
Deferred organization expenses, net........ -- 5,167 14,549 4,509 3,788 2,231
Other assets............................... 12,387 89,056 1,508 2,315 1,432 654
------------ ------------ ------------ ------------ ------------ ------------
Total assets................... 593,535,775 602,473,064 337,511,619 126,948,208 95,167,848 63,902,178
------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased.......... -- 57,784,568 22,941,464 -- -- --
Fund units repurchased................... -- 6,853,000 1,965,632 -- -- --
Dividends................................ 2,402,934 2,136,626 1,365,481 503,032 406,492 336,216
Advisory fees............................ 49,234 84,939 49,766 23,037 18,055 12,653
Administration fees...................... 22,322 42,468 12,442 5,016 3,771 2,531
Accrued expenses and other liabilities..... 38,888 47,988 47,656 36,893 31,606 30,616
------------ ------------ ------------ ------------ ------------ ------------
Total liabilities.............. 2,513,378 66,949,589 26,382,441 567,978 459,924 382,016
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS
Paid-in capital............................ 591,022,397 555,433,124 320,657,558 133,076,795 98,296,211 63,532,452
Accumulated undistributed (distributions
in excess of) net investment income...... -- (725,436) (1,246,234) (57,851) 87,470 (51,299)
Accumulated net realized loss on
investment transactions.................. -- (14,443,784) (8,248,262) (6,885,039) (3,885,196) (304,356)
Net unrealized gain (loss) on investments. -- (4,740,429) (33,884) 246,325 209,439 343,365
------------ ------------ ------------ ------------ ------------ ------------
Net assets..................... $591,022,397 $535,523,475 $311,129,178 $126,380,230 $ 94,707,924 $ 63,520,162
============ ============ ============ ============ ============ ============
Net asset value per unit
(net assets/units outstanding).......... $1.00 $9.79 $9.78 $9.50 $9.65 $10.00
============ ============ ============ ============ ============ ============
Redemption price per unit (Note 7)........ $1.00 $9.79 $9.78 $9.45 $9.60 $9.95
============ ============ ============ ============ ============ ============
UNITS OUTSTANDING
Total units outstanding, $0.001 par value
(unlimited number of units authorized).. 591,022,397 54,707,373 31,827,759 13,300,010 9,809,980 6,350,000
============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral
part of these financial statements.
14
<PAGE>
TRUST FOR CREDIT UNIONS
-----------------
STATEMENTS OF OPERATIONS
For The Six Months Ended February 29, 1996
(Unaudited)
<TABLE>
<CAPTION>
Target Target Target
Money Government Mortgage Maturity Maturity Maturity
Market Securities Securities Portfolio Portfolio Portfolio
Portfolio Portfolio Portfolio (1996) (Feb 97) (May 97)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income........................ $ 13,076,054 $ 17,070,448 $ 10,221,385 $ 4,323,911 $ 3,396,665 $ 2,471,535
------------ ------------ ------------ ------------ ------------ ------------
Expenses:
Advisory fees.......................... 415,067 523,007 285,916 145,461 113,748 79,275
Administration fees.................... 226,984 261,504 71,705 31,840 23,775 15,929
Custodian fees......................... 28,063 34,822 24,059 13,006 16,699 17,157
Professional fees...................... 28,231 35,472 28,200 30,257 23,367 22,467
Trustees' fees......................... 5,885 8,914 4,636 2,103 1,066 701
Amortization of deferred organization
expenses.............................. -- 1,929 4,495 6,725 1,935 901
Other expenses......................... 27,909 63,704 25,644 6,182 6,071 4,207
------------ ------------ ------------ ------------ ------------ ------------
Total expenses........................ 732,139 929,352 444,655 235,574 186,661 140,637
Less--Fee waivers and expense
reimbursements......................... (286,055) (13,810) (59,027) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net expenses......................... 446,084 915,542 385,628 235,574 186,661 140,637
------------ ------------ ------------ ------------ ------------ ------------
Net Investment income.................... 12,629,970 16,154,906 9,835,757 4,088,337 3,210,004 2,330,898
Net realized gain on investment
transactions........................... -- 8,283 1,548,122 182,261 609,782 363,976
Net change in unrealized gain (loss) on
investments............................ -- 1,425,878 (1,287,409) (109,798) (195,017) (311,530)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations............................. $ 12,629,970 $ 17,589,067 $ 10,096,470 $ 4,160,800 $ 3,624,769 $ 2,383,344
============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral
part of these financial statements.
15
<PAGE>
TRUST FOR CREDIT UNIONS
-------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended February 29, 1996
(Unaudited)
<TABLE>
<CAPTION>
Target Target Target
Money Government Mortgage Maturity Maturity Maturity
Market Securities Securities Portfolio Portfolio Portfolio
Portfolio Portfolio Portfolio (1996) (Feb 97) (May 97)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
From Operations:
Net investment income................ $ 12,629,970 $ 16,154,906 $ 9,835,757 $ 4,088,337 $ 3,210,004 $ 2,330,898
Net realized gain from
investment transactions............. -- 8,283 1,548,122 182,261 609,782 363,976
Net change in unrealized gain
(loss) on investments............... -- 1,425,878 (1,287,409) (109,798) (195,017) (311,530)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations..................... 12,629,970 17,589,067 10,096,470 4,160,800 3,624,769 2,383,344
------------ ------------ ------------ ------------ ------------ ------------
Distributions to Unitholders:
From net investment income........... (12,629,970) (16,154,906) (9,278,720) (5,251,486) (4,138,155) (2,322,163)
In excess of net investment income... -- (39,693) -- (57,851) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to unitholders... (12,629,970) (16,194,599) (9,278,720) (5,309,337) (4,138,155) (2,322,163)
------------ ------------ ------------ ------------ ------------ ------------
From Unit Transactions:
Proceeds from sale of units.......... 2,012,081,491 36,105,730 52,330,493 -- -- --
Reinvestment of dividends and
distributions....................... 6,477,323 3,165,995 1,775,043 -- -- --
Cost of units repurchased............ (1,809,632,333) (34,801,637) (8,203,334) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets from
unit transactions................... 208,926,481 4,470,088 45,902,202 -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total increase (decrease)......... 208,926,481 5,864,556 46,719,952 (1,148,537) (513,386) 61,181
Net Assets:
Beginning of period.................. 382,095,916 529,658,919 264,409,226 127,528,767 95,221,310 63,458,981
------------ ------------ ------------ ------------ ------------ ------------
End of period........................ $591,022,397 $535,523,475 $311,129,178 $126,380,230 $94,707,924 $63,520,162
============ ============ ============ ============ =========== ============
Accumulated undistributed
(distributions in excess of)
net investment income................ $ -- $ (725,436) $ (1,246,234) $ (57,851) $ 87,470 $ (51,299)
============= ============= ============= ============= =========== ============
Summary of Unit Transactions:
Units sold........................... 2,012,081,491 3,685,359 5,320,183 -- -- --
Reinvestment of dividends and
distributions....................... 6,477,323 323,446 180,821 -- -- --
Units repurchased.................... (1,809,632,333) (3,554,774) (833,427) -- -- --
------------- ------------ ------------ ------------ ------------ ------------
Increase in units outstanding........ 208,926,481 454,031 4,667,577 -- -- --
============= ============= ============= ============ ============ ============
</TABLE>
The accompanying notes are an integral
part of these financial statements.
16
<PAGE>
TRUST FOR CREDIT UNIONS
------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended August 31, 1995
<TABLE>
<CAPTION>
Target Target Target
Money Government Mortgage Maturity Maturity Maturity
Market Securities Securities Portfolio Portfolio Portfolio
Portfolio Portfolio Portfolio (1996) (Feb 97) (May 97)
--------------- ------------ ------------ ------------ ----------- -----------
From Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 14,748,722 $ 30,466,625 $ 16,818,748 $ 8,108,230 $ 6,581,990 $ 4,514,298
Net realized loss from
investment transactions -- (4,600,744) (3,551,399) (2,597,069) (1,844,120) (339,194)
Net change in unrealized
gain (loss) on invest-
ments -- 4,293,439 7,151,412 2,383,940 1,992,445 801,748
--------------- ------------ ------------ ------------ ----------- -----------
Net increase in net
assets resulting from
operations 14,748,722 30,159,320 20,418,761 7,895,101 6,730,315 4,976,852
--------------- ------------ ------------ ------------ ----------- -----------
Distributions to Unit-
holders:
From net investment
income (14,700,440) (30,842,606) (16,818,748) (7,523,785) (6,068,263) (4,420,145)
In excess of net invest-
ment income -- (685,743) (434,471) -- -- --
From paid-in capital -- -- (406,506) -- -- --
--------------- ------------ ------------ ------------ ----------- -----------
Total distributions to
unitholders (14,700,440) (31,528,349) (17,659,725) (7,523,785) (6,068,263) (4,420,145)
--------------- ------------ ------------ ------------ ----------- -----------
From Unit Transactions:
Proceeds from sale of
units 3,043,450,086 21,279,121 7,814,480 -- -- --
Reinvestment of divid-
ends and distributions 6,769,666 9,375,252 4,880,915 -- -- --
Cost of units repurchased (2,885,160,983) (93,957,586) (34,931,625) (465,411) (2,821,023) (5,964,428)
--------------- ------------ ------------ ------------ ----------- -----------
Net increase (decrease)
in net assets from unit
transactions 165,058,769 (63,303,213) (22,236,230) (465,411) (2,821,023) (5,964,428)
--------------- ------------ ------------ ------------ ----------- -----------
Additional paid-in
capital /(a)/ -- -- -- 68,281 -- --
--------------- ------------ ------------ ------------ ----------- -----------
Total increase (decrease) 165,107,051 (64,672,242) (19,477,194) (25,814) (2,158,971) (5,407,721)
Net Assets:
Beginning of year 216,988,865 594,331,161 283,886,420 127,554,581 97,380,281 68,866,702
--------------- ------------ ------------ ------------ ----------- -----------
End of year $ 382,095,916 $529,658,919 $264,409,226 $127,528,767 $95,221,310 $63,458,981
=============== ============ ============ ============ =========== ===========
Accumulated undistributed
(distributions in excess
of) net investment income $ -- $ (685,743) $ (1,397,205) $ 1,163,149 $ 1,015,621 $ (60,034)
=============== ============ ============ ============ =========== ===========
Summary of Unit Trans-
actions:
Units sold 3,043,450,086 2,179,482 807,374 -- -- --
Reinvestment of divid-
ends and distributions 6,769,666 963,379 508,864 -- -- --
Units repurchased (2,885,160,983) (9,662,680) (3,664,116) (50,000) (300,000) (600,000)
--------------- ------------ ------------ ------------ ----------- -----------
Increase (decrease) in
units outstandings 165,058,769 (6,519,819) (2,347,878) (50,000) (300,000) (600,000)
=============== ============ ============ ============ =========== ===========
/(a)/ See Note 9.
</TABLE>
The accompanying notes are an integral
part of these financial statements.
17
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A UNIT OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
Income from Distributions to
investment operations unitholders
--------------------- -----------------------------
From
Net Net In net Net
asset realized From excess real- asset Ratio of
value at Net gain net of net ized value net
begin- invest- on invest- invest- gain on at expenses
ning of ment invest- ment ment invest- end of Total to average
period income ments/(a)/ income income ments period return/(b)/ net assets
-------- ------- --------- -------- -------- ------- ------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended (unaudited):
2/29/96 $ 1.00 $0.0277 $ -- $(0.0277) $ -- $ -- $1.00 5.71%/(d)/ 0.20%/(d)/
Year ended: 8/31/95 1.00 0.0555 -- (0.0553) -- -- 1.00 5.56 0.20
8/31/94 1.00 0.0329 0.0002 (0.0342) (0.0001) (0.0002) 1.00 3.50 0.25
8/31/93 1.00 0.0305 0.0004 (0.0305) -- (0.0005) 1.00 3.14 0.25
8/31/92 1.00 0.0416 0.0008 (0.0416) -- (0.0007) 1.00 4.39 0.25
8/31/91 1.00 0.0641 -- (0.0641) -- -- 1.00 6.93 0.25
8/31/90 1.00 0.0824 -- (0.0824) -- -- 1.00 8.58 0.25
8/31/89 1.00 0.0899 -- (0.0899) -- -- 1.00 9.28 0.25
5/17/88/(c)/ to 8/31/88 1.00 0.0214 -- (0.0214) -- -- 1.00 7.40/(d)/ 0.25/(d)/
Ratio information
assuming no waiver
of fees or expense
reimbursements
-----------------------
Ratio of
net
invest-
ment Net Ratio of
income assets net
to at end Ratio of investment
average of expenses to income
net period average net to average
assets (000's) assets net assets
--------- -------- ----------- ----------
<S> <C> <C> <C> <C>
Six months ended (unaudited):
2/29/96 5.56%/(d)/ $591,022 0.32%/(d)/ 5.44%/(d)/
Year ended: 8/31/95 5.55 382,096 0.33 5.42
8/31/94 3.29 216,989 0.34 3.20
8/31/93 3.05 616,229 0.33 2.97
8/31/92 4.16 864,924 0.29 4.12
8/31/91 6.41 654,977 0.25 6.41
8/31/90 8.24 258,304 0.25 8.24
8/31/89 8.99 167,331 0.25 8.99
5/17/88/(c)/ to 8/31/88 7.27/(d)/ 106,739 0.25/(d)/ 7.27/(d)/
</TABLE>
/(a)/May include the balancing effect of calculating per share amounts.
/(b)/Assumes investment at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions and a complete redemption
of the investment at the net asset value at the end of the period.
/(c)/Commencement of operations.
/(d)/Annualized.
The accompanying notes are an integral
part of these financial statements.
18
<PAGE>
TRUST FOR CREDIT UNIONS
------------------
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A UNIT OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
Income from Distributions to
investment operations unitholders
--------------------- -----------------------------
Net
realized
and From In excess
Net unreal- In net of net Net
asset ized gain From excess real- real- asset Ratio of
value at Net (loss) on net of net ized ized value net
begin- invest- an invest- invest- gain on gain on at expenses
ning of ment invest- ment ment invest- invest- end of Total to average
period income ments/(a)/ income income ments ments period return/(b)/ net assets
-------- ------- --------- -------- -------- ------- -------- ------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended (unaudited):
2/29/96 $ 9.76 $0.3008 $0.0307 $(0.3008) $(0.0007) $ -- $ -- $ 9.79 3.44% 0.35%/(e)/
Year ended: 8/31/95 9.78 0.5515 (0.0011) (0.5582) (0.0122) -- -- 9.76 5.82 0.34
8/31/94 9.97 0.4286 (0.1974) (0.4212) -- -- -- 9.78 2.33 0.35
8/31/93 10.03 0.4641 (0.0599) (0.4630) (0.0012) -- -- 9.97 4.06 0.34
8/31/92 10.00 0.5588 0.0311 (0.5594) -- -- -- 10.03 6.68 0.36
7/10/91/(d)/ to 8/31/91 10.00 0.0873 (0.0016) (0.0857) -- -- -- 10.00 7.02/(e)/ 0.48/(e)/
Ratio information
assuming no waiver
of fees or expenses
reimbursements
-----------------------
Ratio of
net
invest-
ment Net Ratio of
income Port- assets net
to folio at end Ratio of investment
average turn- of expenses to income
net over period average net to average
assets rate/(c)/ (000's) assets net assets
--------- --------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Six months ended (unaudited)
2/29/96 6.18%/(e)/ 89.55% $ 535,523 0.36%/(e)/ 6.17%/(e)/
Year ended: 8/31/95 5.65 70.58 529,659 0.34 5.65
8/31/94 4.25 42.27 594,331 0.37 4.23
8/31/93 4.58 67.38 1,122,484 0.47 4.45
8/31/92 5.91 195.53 1,153,410 0.59 5.68
7/10/91/(d)/ to 8/31/91 7.16/(e)/ 3.56 94,139 0.73/(e)/ 6.91/(e)/
</TABLE>
/(a)/Includes balancing effect of calculating per share amounts.
/(b)/Assumes investment at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions and a complete
redemption of the investment at the net asset value at the end of the
period.
/(c)/May include the effect of mortgage dollar roll transactions.
/(d)/Commencement of operations.
/(e)/Annualized.
The accompanying notes are an integral
part of these financial statements.
19
<PAGE>
TRUST FOR CREDIT UNIONS
-----------------
MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A UNIT OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
Income from Distributions to
investment operations unitholders
--------------------- ------------------------------------------
In
Net excess
realized of
Net and In net Net
asset unreal- From excess real- asset Ration of
value at Net ized gain net of net ized value net
begin- invest- (loss) on invest- invest- gain on From at expenses
ning of ment invest- ment ment invest- paid-in end of Total to average
period income ments/(a)/ income income ments capital period return/(b)/ net assets
-------- ------- --------- -------- -------- ------- --------- ------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended (unaudited):
2/29/96 $ 9.74 $0.3443 $0.0126 $(0.3169) $ -- $ -- $ -- $ 9.78 3.70% 0.27%/(e)/
Year ended: 8/31/95 9.62 0.6075 0.1539 (0.6075) (0.0175) -- (0.0164) 9.74 8.20 0.26
8/31/94 10.13 0.5533 (0.4530) (0.5719) (0.0340) (0.0044) -- 9.62 1.00 0.28
10/9/92/(d)/ to 8/31/93 10.00 0.4895 0.1144 (0.4702) -- -- -- 10.13 6.27 0.33/(e)/
Ratio information
assuming no waiver
of fees or expense
reimbursements
-----------------------
Ratio of
net
invest-
ment Net Ratio of
income Port- assets net
to folio at end Ratio of investment
average turn- of expenses to income
net over period average net to average
assets rate/(c)/ (000's) assets net assets
--------- --------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Six months ended (unaudited)
2/29/96 6.88%/(e)/ 81.41% $311,129 0.31%/(e)/ 6.84%/(e)/
Year ended: 8/31/95 6.36 130.98 264,409 0.32 6.30
8/31/94 5.66 188.58 283,886 0.29 5.65
10/9/92/(d)/ to 8/31/93 5.64/(e)/ 146.24 213,510 0.38/(e)/ 5.59/(e)/
</TABLE>
/(a)/Includes balancing effect of calculating per share amounts.
/(b)/Assumes investment at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions and a complete
redemption of the investment at the net asset value at the end of the
period.
/(c)/May include the effect of mortgage dollar roll transactions.
/(d)/Commencement of operations.
/(e)/Annualized.
The accompanying notes are an integral
part of these financial statements.
20
<PAGE>
TRUST FOR CREDIT UNIONS
-----------------
TARGET MATURITY PORTFOLIOS
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A UNIT OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
Income from Distribution to
Investment operations unitholders
--------------------- --------------------------------------------
Net
realized From In excess
Net and In net of net Net
asset unreal- From excess real- real- asset
value at Net ized gain net of net ized ized Addi- value
begin- invest- (loss) on invest- invest- gain on gain on tional at
ning of ment Invest- ment ment invest- invest- paid-in end of
period income ments/(a)/ income income ments ments capital period
----------- ---------- ----------- --------- --------- --------- -------- ---------- --------
TARGET MATURITY PORTFOLIO (1996)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six months ended (unaudited):
2/29/96 $ 9.59 $0.3074 $0.0018 $(0.3949) $(0.0043) $ -- $ -- $ -- $ 9.50
Year ended: 8/31/95 9.55 0.6089 (0.0092) (0.5648) -- -- -- 0.0051 9.59
8/31/94 10.03 0.5750 (0.4983) (0.5261) -- (0.0306) -- -- 9.55
7/1/93/(d)/ to 8/31/93 10.00 0.0774 0.0375 (0.0774) (0.0075) -- -- -- 10.03
Target Maturity Portfolio (Feb 97)
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended (unaudited):
2/29/96 9.71 0.3272 0.0347 (0.4219) -- -- -- -- 9.65
Year ended: 8/31/95 9.63 0.6674 0.0261 (0.6135) -- -- -- -- 9.71
2/15/94/(d)/to 8/31/94 10.00 0.3313 (0.4189) (0.2824) -- -- -- -- 9.63
Target Maturity Portfolio (May 97)
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended (unaudited):
2/29/96 9.99 0.3671 0.0086 (0.3657) -- -- -- -- 10.00
Year ended: 8/31/95 9.91 0.6674 0.0673 (0.6547) -- -- -- -- 9.99
5/23/94/(d)/to 8/31/94 10.00 0.1594 (0.0674) (0.1594) (0.0226) -- -- -- 9.91
<CAPTION>
Ratio of
net
invest-
ment Net
Ratio of income Port- assets
net to folio at end
expenses average turn- of
Total to average net over period
return/(b)/ net assets assets ratio/(c)/ (000's)
------------ ------------- ------------ ------------ ------------
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended (unaudited):
2/29/96 3.27% 0.37%/(e)/ 6.45%/(e)/ 123.46% $126,380
Year ended: 8/31/95 6.51 0.39 6.40 183.93 127,529
8/31/94 0.81 0.38 5.89 232.92 127,555
7/1/93/(d)/ to 8/31/93 1.19 0.43/(e)/ 4.56/(e)/ 143.44 133,966
- --------------------------------------------------------------------------------------------------------
Six months ended (unaudited):
2/29/96 3.77 0.39/(e)/ 6.75/(e)/ 119.78 94,708
Year ended: 8/31/95 7.48 0.41 6.94 171.98 95,221
2/15/94/(d)/to 8/31/94 (0.83) 0.42/(e)/ 6.30/(e)/ 156.03 97,380
- --------------------------------------------------------------------------------------------------------
Six months ended (unaudited):
2/29/96 3.80 0.44/(e)/ 7.35/(e)/ 98.21 63,520
Year ended: 8/31/95 7.70 0.45 6.77 147.76 63,459
5/23/94/(d)/to 8/31/94 0.92 0.48/(e)/ 5.80/(e)/ 74.68 68,867
</TABLE>
/(a)/Includes balancing effect of calculating per share amounts.
/(b)/Assumes investment at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions and a complete redemption
of the investment at the net asset value at the end of the period and no
redemption fee. For the Target Maturity Portfolios, total return would be
reduced if a redemption fee were taken into account.
/(c)/May include the effect of mortgage dollar roll transactions.
/(d)/Commencement of operations.
/(e)/Annualized.
The accompanying notes are an integral
part of these financial statements.
21
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS
February 29, 1996
(Unaudited)
1. Organization
Trust for Credit Unions (the "Fund") is a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended, as an open-
end management investment company consisting of six diversified portfolios:
the Money Market Portfolio, Government Securities Portfolio, Mortgage
Securities Portfolio, Target Maturity Portfolio (1996), Target Maturity
Portfolio (Feb 97) and Target Maturity Portfolio (May 97). Units of the Fund
are offered for sale solely to state and federally chartered credit unions.
Unless extended by appropriate action of the Fund's Board of Trustees and by
the unitholders, Target Maturity Portfolio (1996), Target Maturity Portfolio
(Feb 97) and Target Maturity Portfolio (May 97) (the "Target Maturity
Portfolios"), will be liquidated on or about June 30, 1996, February 18, 1997
and May 15, 1997, respectively, (the "Termination Date"), at which time, all
units of these Portfolios that are outstanding as of the close of business on
the respective Termination Date will be redeemed by the Fund at their net
asset value.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by
the Fund which are in conformity with those generally accepted in the
investment company industry.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts.
A. Investment Valuation
-------------------------
For the Government Securities Portfolio, Mortgage Securities Portfolio, and
Target Maturity Portfolios, investments in mortgage backed and asset backed
obligations are valued based on yield equivalents, a pricing matrix or other
sources, under valuation procedures established by the Fund's Board of
Trustees. Other portfolio securities for which accurate market quotations are
readily available are valued on the basis of quotations furnished by a pricing
service or provided by dealers in such securities. Portfolio securities for
which accurate market quotations are not readily available are valued in
accordance with the Fund's valuation procedures. Securities of the Money
Market Portfolio and short-term debt obligations maturing in sixty days or
less for the Government Securities Portfolio, Mortgage Securities Portfolio
and Target Maturity Portfolios are valued at amortized cost which approximates
market value. Under this method, all investments purchased at a discount or
premium are valued by amortizing the difference between the original purchase
price and maturity value of the issue over the period to maturity.
22
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
2. Summary of Significant Accounting Policies -- (continued)
B. Security Transactions and Investment Income
-----------------------------------------------
Security transactions are recorded on the trade date. Realized gains and
losses on sales of portfolio securities are calculated on the identified cost
basis. For the Money Market Portfolio, interest income is determined on the
basis of interest accrued, premium amortized and discount earned. The
Mortgage Securities Portfolio and the Target Maturity Portfolios amortize
market discounts and premiums on certain mortgage backed securities and
treasury obligations.
For the Government Securities Portfolio, Mortgage Securities Portfolio and
Target Maturity Portfolios, premiums on interest-only securities and on
collateralized mortgage obligations with nominal principal amounts are
amortized, on an effective yield basis, over the expected life of the
respective securities, taking into account actual principal prepayment
experience and estimates of future principal prepayments. Certain mortgage
security paydown gains and losses are taxable as ordinary income. Such
paydown gains and losses increase or decrease taxable ordinary income
available for distribution and are classified in interest income in the
accompanying Statements of Operations. Original issue discounts on debt
securities are amortized to interest income over the life of the security with
a corresponding increase in the cost basis of that security.
C. Mortgage Dollar Rolls
-------------------------
The Government Securities, Mortgage Securities and Target Maturity
Portfolios may enter into mortgage "dollar rolls" in which the portfolios sell
securities in the current month for delivery and simultaneously contract with
the same counterparty to repurchase similar (same type, coupon and maturity)
but not identical securities on a specified future date. The portfolios will
hold and maintain in a segregated account, until the settlement date, cash or
liquid, high grade debt securities in an amount equal to the forward purchase
price. For financial reporting and tax reporting purposes, the portfolios
treat mortgage dollar rolls as two separate transactions; one involving the
purchase of a security and a separate transaction involving a sale.
23
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
2. Summary of Significant Accounting Policies -- (continued)
D. Federal Taxes
-----------------
It is each portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute each year substantially all investment company taxable income to
its unitholders. Accordingly, no federal tax provisions are required. The
characterization of distributions to unitholders for financial reporting
purposes is determined in accordance with income tax rules and is based upon
the best available information. Therefore, in the accompanying financial
statements, the source of a portfolio's distributions may be shown as (i) from
net investment income, (ii) in excess of net investment income, (iii) from net
realized gains on investment transactions, (iv) in excess of net realized
gains on investment transactions, and/or (v) from capital.
As of each portfolio's most recent tax year-end, the following portfolios
had approximately the following amounts of capital loss carry forward for U.S.
Federal tax purposes:
<TABLE>
<CAPTION>
Portfolio Amount Years of Expiration
- ------------------------------ ---------------- -----------------------
<S> <C> <C>
Government Securities......... $16,076,000 1999 - 2003
Mortgage Securities........... 9,228,000 2001 - 2003
Target Maturity (1996)........ 7,099,000 1996*
Target Maturity (Feb 97)...... 4,478,000 1997*
Target Maturity (May 97)...... 660,000 1997*
</TABLE>
* Represents earlier of Termination Date of portfolio or actual expiration
date of capital loss carry forward.
These amounts are available to be carried forward to offset future capital
gains of the corresponding portfolios to the extent permitted by applicable
laws or regulations.
E. Deferred Organization Expenses
----------------------------------
Organization-related costs are being amortized on a straight-line basis
over a period of five years for the Government Securities and Mortgage
Securities Portfolios, and over three years for the Target Maturity
Portfolios.
24
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
2. Summary of Significant Accounting Policies -- (continued)
F. Expenses
------------
Expenses incurred by the Fund that do not specifically relate to an
individual portfolio of the Fund are allocated to the portfolios based on each
portfolio's relative average net assets for the period.
3. Agreements
Goldman Sachs Asset Management ("GSAM"), a separate operating division of
Goldman, Sachs & Co. ("Goldman Sachs"), acts as investment adviser pursuant to
an Advisory Agreement with the Fund. Under the Advisory Agreement, Goldman
Sachs, subject to general supervision of the Fund's Trustees, manages the
Fund's portfolios and provides certain administrative services for the Fund.
As compensation for services rendered under the Advisory Agreement and the
assumption of the expenses related thereto, Goldman Sachs is entitled to a
fee, computed daily and payable monthly, at the following annual rates as a
percentage of each respective portfolio's average daily net assets:
<TABLE>
<CAPTION>
Portfolio Asset levels Fee
- ------------------------------- ---------------------- -------------
<S> <C> <C>
Money Market.................. up to $300 million 0.20%
in excess of $300 million 0.15%
Government Securities......... all 0.20%
Mortgage Securities........... all 0.20%
Target Maturity Portfolios.... up to $75 million 0.25%
in excess of $75 million 0.20%
</TABLE>
Effective July 1, 1995, Goldman Sachs voluntarily agreed to limit its
advisory fee with respect to the Money Market Portfolio to .12% of the first
$250 million, .10% of the next $250 million, .09% of the next $250 million and
.08% over $750 million of the portfolio's average daily net assets. For the
six months ended February 29, 1996, Goldman Sachs waived advisory fees
amounting to $163,859.
Effective August 1, 1995 to January 31, 1996, Goldman Sachs voluntarily
agreed to limit its advisory fee with respect to the Mortgage Securities
Portfolio to .15% of the portfolio's average daily net assets. For the six
months ended February 29, 1996, Goldman Sachs waived advisory fees amounting
to $59,027.
25
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
3. Agreements -- (continued)
Callahan Credit Union Financial Services Limited Partnership ("CUFSLP")
serves as the Fund's administrator pursuant to an Administration Agreement.
Callahan Financial Services, Inc. serves as a general partner to CUFSLP, and
37 major credit unions are limited partners. Under the Administration
Agreement, CUFSLP, subject to general supervision of the Fund's Trustees,
provides certain administrative services to the Fund. As compensation for
services rendered under the Administration Agreement, CUFSLP is entitled to
the following fees, computed daily and payable monthly, at the following
annual rates as a percentage of each respective portfolio's average daily net
assets:
<TABLE>
<CAPTION>
Portfolio Fee
---------------------------------------------- -------
<S> <C>
Money Market.................................. 0.10%
Government Securities......................... 0.10%
Mortgage Securities........................... 0.05%
Target Maturity Portfolios.................... 0.05%
</TABLE>
During the six months ended February 29, 1996, CUFSLP voluntarily agreed to
limit its administration fee with respect to the Money Market Portfolio to
.05% of the first $500 million, .04% of the next $250 million and .03% over
$750 million of the portfolio's average net assets. For the six months ended
February 29, 1996, CUFSLP waived administration fees amounting to $114,131.
Effective July 1, 1995, CUFSLP has agreed that to the extent the total
annualized operating expenses (excluding interest, taxes, brokerage and
extraordinary expenses) (the "Operating Expenses") of the Money Market
Portfolio exceed 0.20% of the average daily net assets of the Money Market
Portfolio, CUFSLP will either reduce the administration fees otherwise payable
or pay such Operating Expenses of the Money Market Portfolio. For the six
months ended February 29, 1996, $8,065 was reimbursed by CUFSLP under this
agreement.
The Government Securities Portfolio bears the fees payable under the
Administration Agreement and the Advisory Agreement as well as other expenses
incurred in its operations. CUFSLP and Goldman Sachs have each voluntarily
agreed to limit the other annualized ordinary operating expenses of the
Government Securities Portfolio such that CUFSLP will reimburse expenses that
exceed .05% up to .10% of the Government Securities Portfolio's average daily
net assets, and Goldman Sachs will reimburse expenses that exceed .10% up to
.15% of the Government Securities Portfolio's average daily net assets. For
the six months ended February 29, 1996, $13,810 was reimbursed by CUFSLP and
no expenses were reimbursed by Goldman Sachs under this agreement.
26
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
3. Agreements -- (continued)
Callahan Financial Services, Inc. and Goldman Sachs serve as exclusive
distributors of units of the Fund. During the six months ended February 29,
1996, neither received any compensation for this service. Goldman Sachs also
serves as Transfer Agent of the Fund for a fee.
4. Investment Transactions
Purchases and proceeds of sales or maturities of long-term securities for
the Government Securities Portfolio, Mortgage Securities Portfolio, Target
Maturity Portfolio (1996), Target Maturity Portfolio (Feb 97) and Target
Maturity Portfolio (May 97), for the six months ended February 29, 1996, were
as follows ($ in thousands):
<TABLE>
<CAPTION>
Target Target Target
Government Mortgage Maturity Maturity Maturity
Securities Securities Portfolio Portfolio Portfolio
Portfolio Portfolio (1996) (Feb 97) (May 97)
--------------- --------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Purchases of U.S. Government
and agency obligations......... $511,467 $221,417 $147,611 $89,056 $60,494
Purchases (excluding U.S.
Government and agency
obligations)................... -- 54,268 1,003 22,075 --
Sales or maturities of U.S.
Government and agency
obligations.................... 459,458 178,829 148,786 83,147 48,502
Sales or maturities (excluding
U.S. Government and agency
obligations)................... -- 51,278 14,823 31,973 13,438
</TABLE>
5. Repurchase Agreements
During the term of a repurchase agreement, the value of the underlying
securities, including accrued interest, is required to equal or exceed the
value of the repurchase agreement. The underlying securities for all
repurchase agreements are held in safekeeping in the customer-only account of
State Street Bank and Trust Company, the Fund's custodian, or at sub-
custodians. GSAM monitors the market value of the underlying securities by
pricing them daily.
27
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
6. Joint Repurchase Agreement Accounts
The portfolios, together with other registered investment companies having
advisory agreements with GSAM, transfer uninvested cash balances into joint
accounts, the daily aggregate balances of which are invested in repurchase
agreements. The underlying securities for the repurchase agreements include
U.S. Treasury obligations and mortgage-related securities issued by the U.S.
Government, its agencies or instrumentalities.
As of February 29, 1996, the Money Market Portfolio had a 4.41% undivided
interest in the repurchase agreements in the following joint account which
equaled $185,600,000 in principal amount. As of February 29, 1996, the
repurchase agreements in this joint account, along with the corresponding
underlying securities (including the type of security, market value, interest
rate and maturity date) were as follows ($ in thousands):
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
--------- -------- -------- ----------
<S> <C> <C> <C> <C>
Bankers Trust Securities Corp., dated 02/29/96, repurchase price
$700,106 (U.S. Treasury Note: $713,285, 5.00%, 02/15/99)........ $700,000 5.43% 03/01/96 $ 700,000
Bear Stearns Companies., Inc., dated 02/29/96, repurchase price
$200,031 (U.S. Treasury Note: $204,120, 6.50%, 04/30/97)........ 200,000 5.65 03/01/96 200,000
Bear Stearns Companies, Inc, dated 02/29/96, repurchase price
$500,075 (U.S. Treasury Bills: $508,734, 05/15/97-08/15/02)..... 500,000 5.41 03/01/96 500,000
Daiwa Securities, dated 02/29/96, repurchase price $450,068
(U.S. Treasury Bill: $369,298, 05/30/96) (U.S. Treasury Notes:
$89,703, 5.63-9.00%, 08/31/96-08/15/99)......................... 450,000 5.43 03/01/96 450,000
J.P. Morgan Securities, Inc., dated 02/29/96, repurchase price
$500,075 (U.S. Treasury Bill: $25,498, 12/12/96) (U.S.
Treasury Notes: $482,046, 6.25-7.88%, 01/31/00-11/15/01)........ 500,000 5.42 03/01/96 500,000
Morgan Stanley & Co., Inc., dated 02/29/96, repurchase price
$675,101, (U.S. Treasury Bills: $688,205, 04/11/96-12/12/96)
(U.S. Treasury Notes: $575, 5.13-6.25%, 08/31/96-03/31/98)...... 675,000 5.41 03/01/96 675,000
Smith Barney, Inc., dated 02/29/96, repurchase price $300,045
(U.S. Treasury Bills: $8,489, 03/28/96-07/25/96) (U.S.
Treasury Notes: $221,605, 4.38-8.50%, 05/31/96-02/15/06)
(U.S. Treasury Interest-Only Strips: $61,066, 05/15/96-08/15/05)
(U.S. Treasury Principal-Only Strips: $14,841, 11/15/96-
05/15/05)....................................................... 300,000 5.43 03/01/96 300,000
Swiss Bank Corp., dated 02/29/96, repurchase price $885,736 (U.S.
Treasury Bills: $27,156, 04/11/96-12/12/96) (U.S. Treasury
Notes: $879,451, 4.75-9.13%, 06/30/97-11/15/01)................. 585,600 5.45 03/01/96 585,600
300,000 5.65 03/01/96 300,000
----------
Total Joint Repurchase Agreement Account............................................................... $4,210,600
==========
</TABLE>
28
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
6. Joint Repurchase Agreement Accounts -- (continued)
As of February 29, 1996, the Money Market, Government Securities, Mortgage
Securities, Target Maturity (1996), Target Maturity (Feb 97) and Target
Maturity (May 97) Portfolios had a 8.18%, 1.11%, 0.97%, 0.47%, 0.12% and 0.11%
undivided interest, respectively, in the repurchase agreements in the
following joint account, which equaled $100,000,000, $13,600,000, $11,900,000,
$5,700,000, $1,500,000 and $1,400,000 in principal amount, respectively. As
of February 29, 1996, the repurchase agreements in this joint account, along
with the corresponding underlying securities (including the type of security,
market value, interest rate and maturity date) were as follows ($ in
thousands):
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
--------- -------- -------- ----------
<S> <C> <C> <C> <C>
Daiwa Securities, dated 02/29/96, repurchase price
$230,035 (U.S. Treasury Bill: $173,695, 04/18/97-
01/09/97) (U.S. Treasury Notes: $60,906, 4.75-
7.63%, 05/31/96-08/31/98).......................... $230,000 5.43% 03/01/96 $ 230,000
Paine Webber, Inc., dated 02/29/96, repurchase price
$100,015 (U.S. Treasury Bond: $25, 3.50%, 11/15/98)
(U.S. Treasury Notes: $101,978, 4.38-8.00%,
07/31/96-04/30/97)................................. 100,000 5.45 03/01/96 100,000
Salomon Brothers., Inc, dated 02/29/96, repurchase
price $892,135 (U.S. Treasury Notes: $221,225,
5.50-7.25%, 11/15/96-04/15/00) (U.S. Treasury
Interest-Only Strips: $487,476, 05/15/96-02/15/03)
(U.S. Treasury Principal-Only Strips: $201,753,
05/15/96-08/15/02)................................. 892,000 5.44 03/01/96 892,000
----------
Total Joint Repurchase Agreement Account.......................................................... $1,222,000
==========
</TABLE>
7. Redemption Units
Unitholders of the Target Maturity Portfolios who redeem their units prior
to the respective Termination Date will be charged a redemption fee equal to
.50% of the net asset value of the redeemed units at the time of the
redemption. The redemption fee is not a sales charge, but is kept by the
respective portfolio for the benefit of continuing unitholders.
8. Certain Reclassifications
In accordance with Statement of Position 93-2, the Mortgage Securities
Portfolio has reclassified $406,066 which represents an increase to paid-in
capital and a decrease to accumulated undistributed net investment income.
This reclassification has no impact on the net asset value of the portfolio
and is designed to present the portfolio's capital accounts on a tax basis.
29
<PAGE>
TRUST FOR CREDIT UNIONS
---------------
NOTES TO FINANCIAL STATEMENTS--(Continued)
February 29, 1996
(Unaudited)
9. Other Matters
During the fiscal year ended August 31, 1995, Goldman Sachs contributed
additional paid-in capital to the Target Maturity Portfolio (1996) as
reflected in the accompanying Statements of Changes in Net Assets.
Pursuant to an SEC exemptive order, the Money Market Portfolio may enter
into certain principal transactions, including repurchase agreements, with
Goldman Sachs, or its affiliate, Goldman Sachs Money Markets L.P. subject to
certain limitations as follows: 25% of eligible security transactions, as
defined, and 10% of repurchase agreement transactions.
30
<PAGE>
This Semiannual Report is authorized for distribution to prospective investors
only when preceded or accompanied by the Trust for Credit Unions Prospectus
which contains facts concerning the Fund's objectives and policies,
management, expenses and other information.
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Trust
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for Credit Unions
- -------------------
Trustees
Rudolf J. Hanley, Chairman
Robert M. Coen, Vice-Chairman
Gene R. Artemenko
James C. Barr
Edgar F. Callahan
John T. Collins
Thomas S. Condit
John P. McNulty
John L. Ostby
Wendell A. Sebastian
Officers
Marcia L. Beck
President
Charles W. Filson
Vice President
John W. Mosior
Vice President
Nancy L. Mucker
Vice President
Pauline Taylor
Vice President
Scott M. Gilman
Treasurer
Michael J. Richman
Secretary
William F. Connors
Assistant Secretary
Howard B. Surloff
Assistant Secretary
Administrator
Callahan Credit Union Financial Services
Limited Partnership
Investment Advisor
Goldman Sachs Asset Management,
a separate operating division
of Goldman, Sachs & Co.
Transfer Agent
Goldman, Sachs & Co.
Distributors
Callahan Financial Services, Inc.
Goldman, Sachs & Co.
[LOGO OF GOLDMAN, SACHS APPEARS HERE]
