PRESIDENT'S MESSAGE
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Dear Shareholder:
I am pleased to present the Semi-Annual Report of the VISION Fiduciary Money
Market Fund (the "Fund") for the six-month period ended October 31, 1994. To
keep you informed on the progress of your investment, we have included complete
financial information for the Fund, and a comprehensive listing of the
investments held by the Fund.
As of the reporting date, the Fund's net assets had increased $6.7 million to
$93.3 million. Shareholders received dividends totaling $1.94 million, or $0.02
per share.
Thank you for including the Fund in your financial strategy. We welcome your
questions and comments.
Sincerely,
Edward C. Gonzales
President
December 15, 1994
VISION FIDUCIARY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1994
(UNAUDITED)
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
*CORPORATE OBLIGATIONS--90.0%
- -----------------------------------------------------------------------------------
BANKING--12.8%
-------------------------------------------------------------------
$4,000,000 ** Comerica, Inc., 5.31%, 6/29/95 $ 3,997,954
-------------------------------------------------------------------
4,000,000 ** Huntington National Bank, 4.86%, 3/15/95 4,000,000
-------------------------------------------------------------------
4,000,000 ** Society Bank, N.A., 4.86%, 3/16/95 4,000,000
------------------------------------------------------------------- -----------
Total 11,997,954
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CHEMICALS--4.3%
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4,000,000 du Pont (E.I.) de Nemours & Co., 4.75%, 11/10/94 3,995,250
------------------------------------------------------------------- -----------
DIVERSIFIED--4.3%
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4,000,000 General Electric Capital Corp., 4.77%, 12/13/94 3,977,740
------------------------------------------------------------------- -----------
FINANCE-AUTOMOTIVE--4.3%
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4,000,000 Ford Motor Credit Corp., 4.88%, 11/16/94 3,991,867
------------------------------------------------------------------- -----------
FINANCE-COMMERCIAL--8.5%
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4,000,000 Apreco, Inc., 4.82%, 11/9/94 3,995,715
-------------------------------------------------------------------
4,000,000 Transamerica Corp., 5.00%, 11/16/94 3,991,667
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Total 7,987,382
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FINANCE-RETAIL--8.6%
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4,000,000 ** Associates Corp. North America, 4.81%, 12/1/94 4,000,000
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4,000,000 ** Beneficial Corp., 5.29%, 1/20/95 4,000,000
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Total 8,000,000
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FOOD & BEVERAGE--4.3%
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4,000,000 Heinz, (H.J.) Co., 4.75%, 11/7/94 3,996,833
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INSURANCE--8.6%
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4,000,000 AIG Funding Corp., 4.62%, 11/17/94 3,991,787
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4,000,000 American General Finance Corp., 4.75%, 11/4/94 3,998,417
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Total 7,990,204
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OIL & OIL FINANCE--17.1%
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4,000,000 Chevron Oil Finance Co., 4.75%, 11/14/94 3,993,139
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4,000,000 Exxon Credit Corp., 4.72%, 11/3/94 3,998,951
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4,000,000 Shell Oil Co., 4.75%, 11/17/94 3,991,556
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4,000,000 Texaco Inc., 4.85%, 11/17/94 3,991,378
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Total 15,975,024
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PHARMACEUTICALS & HEALTH CARE--4.3%
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4,000,000 SmithKline Beecham Corp., 4.75%, 11/8/94 3,996,305
------------------------------------------------------------------- -----------
RETAIL--4.3%
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4,000,000 Melville Corp., 4.78%, 11/16/94 3,992,033
------------------------------------------------------------------- -----------
</TABLE>
VISION FIDUCIARY MONEY MARKET FUND
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
*CORPORATE OBLIGATIONS--CONTINUED
- -----------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.3%
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$4,000,000 Bell South Telecommunications, Inc., 4.90%, 11/2/94 $ 3,999,455
------------------------------------------------------------------- -----------
TOBACCO--4.3%
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4,000,000 Philip Morris Cos., Inc., 4.79%, 11/15/94 3,992,549
------------------------------------------------------------------- -----------
TOTAL CORPORATE OBLIGATIONS 83,892,596
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U.S. TREASURY OBLIGATIONS--4.3%
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4,000,000 U.S. Treasury Bills, 11/17/94 3,994,178
------------------------------------------------------------------- -----------
***REPURCHASE AGREEMENT--6.0%
- -----------------------------------------------------------------------------------
5,646,000 Nomura Securities International, Inc., 4.75%,
dated 10/31/94, due 11/1/94 5,646,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS, AT AMORTIZED COST AND VALUE $93,532,774+
------------------------------------------------------------------- -----------
</TABLE>
* Each issue, with the exception of variable rate securities, shows the coupon
or rate of discount at time of purchase.
** Current rate and next demand date shown.
*** The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($93,262,862) at October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
(UNAUDITED)
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<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments, at amortized cost and value $93,532,774
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Interest receivable 92,248
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Total assets 93,625,022
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LIABILITIES:
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Dividends payable $357,458
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Accrued expenses 4,702
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Total liabilities 362,160
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NET ASSETS for 93,262,862 shares of capital stock outstanding $93,262,862
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
($93,262,862 / 93,262,862 shares of capital stock outstanding) $1.00
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1994
(UNAUDITED)
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<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest income $2,076,053
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EXPENSES:
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Administrative personnel and services fees $69,204
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Directors' fees 7,569
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Custodian and recordkeeping fees and expenses 28,144
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Transfer and dividend disbursing agent fees and expenses 11,067
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Capital stock registration costs 177
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Insurance premiums 3,825
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Printing and postage 7,265
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Auditing fees 424
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Legal fees 4,952
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Taxes 5,373
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Miscellaneous 1,927
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Total expenses 139,927
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Net investment income $1,936,126
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
------------------------------
1995* 1994
------------ -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 1,936,126 $ 2,734,136
- -------------------------------------------------------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Dividends to shareholders from net investment income (1,936,126) (2,734,136)
- -------------------------------------------------------------- ------------ -------------
CAPITAL STOCK TRANSACTIONS--
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Net proceeds from sale of shares 88,721,749 217,374,132
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Cost of shares redeemed (82,045,215) (240,383,985)
- -------------------------------------------------------------- ------------ -------------
Change in net assets resulting from capital stock
transactions 6,676,534 (23,009,853)
- -------------------------------------------------------------- ------------ -------------
Change in net assets 6,676,534 (23,009,853)
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 86,586,328 109,596,181
- -------------------------------------------------------------- ------------ -------------
End of period $ 93,262,862 $ 86,586,328
- -------------------------------------------------------------- ------------ -------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
--------------------------------------------------------------------------
1995* 1994 1993 1992 1991 1990 1989**
----- ----- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------
INCOME FROM INVESTMENT
OPERATIONS
- ---------------------------
Net investment income 0.02 0.03 0.03 0.05 0.07 0.08 0.07
- --------------------------- ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
- ---------------------------
Dividends to shareholders
from net investment
income (0.02) (0.03) (0.03) (0.05) (0.07) (0.08) (0.07)
- --------------------------- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------- ----- ----- ----- ----- ----- ----- -----
TOTAL RETURN*** 2.13% 3.02% 3.25% 5.22% 7.64% 8.85% 7.70%
- ---------------------------
RATIOS TO AVERAGE
NET ASSETS
- ---------------------------
Expenses 0.30%(a) 0.28% 0.32% 0.21% 0.41% 0.47% 0.56%(a)
- ---------------------------
Net investment income 4.20%(a) 2.97% 3.18% 5.14% 7.38% 8.45% 8.14%(a)
- ---------------------------
SUPPLEMENTAL DATA
- ---------------------------
Net assets, end of period
(000 omitted) $93,263 $86,586 $109,596 $58,760 $78,138 $87,682 $73,417
- ---------------------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
** Reflects operations for the period from June 1, 1988 (date of initial public
offering) to April 30, 1989.
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1994
(UNAUDITED)
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(1) ORGANIZATION
VISION Fiduciary Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end, management
investment company. The Company only consists of one diversified portfolio,
VISION Fiduciary Money Market Fund (the "Fund").
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value its portfolio
securities is in accordance with Rule 2a-7 under the Act.
B. REPURCHASE AGREEMENTS--It is the policy of the Fund to require the custodian bank to take
possession, to have legally segregated in the Federal Reserve Book Entry System, or to
have segregated within the custodian bank's vault, all securities held as collateral in
support of repurchase agreement investments. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's underlying collateral to ensure the value of collateral at least equals the
principal amount of the repurchase agreement, including accrued interest.
The Fund will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to
be creditworthy pursuant to guidelines established by the Board of Directors (the
"Directors"). Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than the
repurchase price on the sale of collateral securities.
C. 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.
D. 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 taxable income. Accordingly, no provisions for federal tax are
necessary.
E. 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.
F. OTHER--Investment transactions are accounted for on the trade date.
</TABLE>
VISION FIDUCIARY MONEY MARKET FUND
- --------------------------------------------------------------------------------
(3) CAPITAL STOCK
At October 31, 1994, there were 1,000,000,000 shares of $0.001 par value capital
stock authorized. Capital paid-in aggregated $93,169,599, par value was $93,263.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
----------------------------
1995* 1994
- ---------------------------------------------------------------- ----------- ------------
<S> <C> <C>
Shares sold 88,721,749 217,374,132
- ----------------------------------------------------------------
Shares redeemed (82,045,215) (240,383,985)
- ---------------------------------------------------------------- ----------- ------------
Net change resulting from capital stock transactions 6,676,534 (23,009,853)
- ---------------------------------------------------------------- ----------- ------------
</TABLE>
* Six months ended October 31, 1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Investment advisory services are provided to the Fund
by Manufacturers and Traders Trust Company, the Fund's investment adviser
("Adviser"), pursuant to an investment advisory agreement dated April 25, 1988.
Under the terms of such agreement, the Fund pays no fee for the services
provided by the Adviser.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The fee is based on the
level of average aggregate net assets of the Company for the period. FAS may
voluntarily choose to waive a portion of its fee.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES--Federated Services Company
("FServ") serves as transfer and dividend disbursing agent for the Fund. The fee
is based on the size, type, and number of accounts and transactions made by
shareholders.
Certain of the Officers and Directors of the Company are Officers and Directors
or Trustees of the above companies.
<TABLE>
<S> <C>
DIRECTORS OFFICERS
- ---------------------------------------------------------------------------------------------
Randall I. Benderson Edward C. Gonzales
Joseph J. Castiglia President and Treasurer
Daniel R. Gernatt, Jr. Charles L. Davis, Jr.
George K. Hambleton, Jr. Vice President and Assistant Treasurer
Joseph M. Huber
Secretary
Victor R. Siclari
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by
Manufacturers and Traders Trust Company or any other bank, and are not insured
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 risks, including possible loss of principal. Although money
market funds seek to maintain a stable net asset value of $1.00 per share, there
is no assurance that they will be able to do so.
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.
