VISION
FIDUCIARY
MONEY
MARKET
FUND
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
OCTOBER 31, 1993
Manufacturers and Traders
Trust Company
- -----------------------------------
Investment Adviser
A subsidiary of First Empire State Corporation
Federated Securities Corp. is distributor of the funds.
VISION FIDUCIARY FUNDS, INC.
0112705 (12/93)
PRESIDENT'S MESSAGE
Dear Investor:
I am pleased to present you with the Semi-Annual Report of the Vision Fidu-
ciary Money Market Fund for the six-month period ended October 31, 1993. It
contains complete financial information for the Fund--including the Investment
Review and Portfolio of Investments.
As of October 31, 1993, net assets in the Vision Fiduciary Money Market Fund
had reached $90.8 million. Dividends paid to shareholders during the period
totaled $1,405,185 million, or $0.01 per share.
Thank you for putting your cash to work earning competitive money market in-
come. As always, we welcome your questions, comments, or suggestions.
Sincerely,
[LOGO]
Edward C. Gonzales
President
December 8, 1993
INVESTMENT REVIEW
Taxable money markets have remained in the same narrow range for well over
one year, which has been an unusual period of stability.
With the federal funds rate unchanged at 3.00%, the Federal Reserve has
adopted a "wait and see" attitude with respect to the economy's strength. If
in fact the economy does continue to improve in 1994, the Federal Reserve may
begin to slowly increase short-term rates. Over the last six months, we have
extended our average maturity in the Fund to take advantage of the steepness
in the yield curve, consistent with our opinion that rates would remain sta-
ble. As the economy strengthens, we anticipate shortening our average maturity
in the Fund.
VISION FIDUCIARY MONEY MARKET FUND
VISION FIDUCIARY FUNDS, INC.
Portfolio of Investments
October 31, 1993
(unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
CERTIFICATE OF DEPOSIT--3.3%
$3,000,000 Harris Bank, 3.08%, 12/31/93..................... $ 3,000,000
- -------------------------------------------------------------------------------
COMMERCIAL PAPER--51.3%*
CHEMICALS--7.4%
3,690,000 duPont (E.I.) deNemours Corp., 3.08%, 11/3/93.... 3,689,369
3,000,000 PPG Industries, Inc., 3.10%, 11/9/93............. 2,997,933
-----------
Total............................................ 6,687,302
-----------
CONTAINER AND PACKAGING--4.4%
4,000,000 Pitney Bowes, Inc., 3.06%, 12/14/93.............. 3,985,380
-----------
DIVERSIFIED--4.4%
4,000,000 United Technologies Corp., 3.10%, 12/22/93....... 3,982,433
-----------
ELECTRONICS--4.4%
4,000,000 Hewlett Packard Co., 3.04%, 11/30/93............. 3,990,205
-----------
FINANCE--COMMERCIAL--4.4%
4,000,000 Transamerica Finance Corp., 3.27%, 1/21/94....... 3,970,570
-----------
FUNDING CORPORATION--13.1%
4,000,000 AIG Funding, 3.20%, 3/1/94....................... 3,957,333
4,000,000 BAT Capital Corp., 3.10%, 11/23/93............... 3,992,422
4,000,000 CIESCO LP, 3.08%, 12/14/93....................... 3,985,285
-----------
Total............................................ 11,935,040
-----------
OIL AND OIL FINANCE--4.4%
4,000,000 Chevron Oil Finance Co., 3.09%, 11/30/93......... 3,990,043
-----------
TELECOMMUNICATIONS--8.8%
4,000,000 American Telephone & Telegraph Capital Corp.,
3.08%, 12/31/93.................................. 3,979,467
4,000,000 BellSouth Telecommunications, Inc., 3.07%,
12/3/93.......................................... 3,989,085
-----------
Total............................................ 7,968,552
- -------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER....................................... 46,509,525
- -------------------------------------------------------------------------------
CORPORATE BONDS/SHORT-TERM--12.7%
BANKING--4.4%
3,000,000 Pittsburgh National Bank, Discount Note, 3.20%,
4/28/94.......................................... 2,997,678
1,000,000 Wachovia Bank, N.C., 4.70%, 10/31/94............. 1,011,051
-----------
Total............................................ 4,008,729
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------
<C> <S> <C>
CORPORATE BONDS/SHORT-TERM--CONTINUED
FINANCE--AUTOMOTIVE--2.7%
$2,469,059 Premier Auto Trust, 3.21%, 9/2/94.............. $ 2,469,059
------------
FINANCE--RETAIL--3.4%
3,000,000 Norwest Financial Inc., 7.95%, 6/15/94......... 3,077,667
------------
FOOD & BEVERAGE--2.2%
2,000,000 PepsiCo, Inc., 3.50%, 1/31/94.................. 1,999,497
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS/SHORT-TERM........................... 11,554,952
- -------------------------------------------------------------------------------
GOVERNMENT AGENCIES--11.5%
1,500,000 Federal Home Loan Bank, 3.15%, 6/23/94......... 1,500,000
1,000,000 Federal Home Bank Loan Discount Note, 3.03%,
12/6/93........................................ 997,054
4,000,000 Federal Home Loan Mortgage Corp. Discount Note,
3.16%, 11/18/93................................ 3,994,031
4,000,000 Federal National Mortgage Association Discount
Note, 3.08%, 1/10/94........................... 3,976,044
- -------------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES.................................. 10,467,129
- -------------------------------------------------------------------------------
U.S. TREASURY BILLS--2.2%
2,000,000 U.S. Treasury Bills, 6/30/94................... 1,958,160
- -------------------------------------------------------------------------------
VARIABLE RATE INSTRUMENTS--9.9%**
2,000,000 Federal Farm Credit Bank Floating Rate Note,
3.15%, 4/29/94................................. 2,000,000
1,500,000 Student Loan Marketing Association, 3.33%,
11/2/93........................................ 1,500,000
4,000,000 Associates Corporation of North America, 3.10%,
12/1/93........................................ 4,000,000
1,500,000 Merrill Lynch, Pierce, Fenner & Smith Co.,
3.52%, 11/23/93................................ 1,500,000
- -------------------------------------------------------------------------------
TOTAL VARIABLE RATE INSTRUMENTS............................ 9,000,000
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT--9.2%***
8,378,000 First Boston Corp., 2.93%, dated 10/29/93, due
11/1/93 (Note 2B).............................. 8,378,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT AMORTIZED COST....................... $90,867,766+
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
*Each issue shows the rate of discount at time of purchase.
**Current rate and next demand date shown.
***The repurchase agreement is fully collateralized by U.S. Treasury
obligations based on market prices at the date on the portfolio.
+Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($90,799,730) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
VISION FIDUCIARY FUNDS, INC.
Statement of Assets and Liabilities
October 31, 1993 (unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at amortized cost (Note 2A)............................ $90,867,766
Interest receivable................................................. 232,643
-----------
Total assets...................................................... 91,100,409
LIABILITIES:
Dividends payable.......................................... $217,213
Payable to bank............................................ 37,148
Accrued expenses........................................... 46,318
--------
Total liabilities................................................. 300,679
-----------
NET ASSETS for 90,799,730 shares of capital stock outstanding....... $90,799,730
===========
NET ASSET VALUE, Offering Price, and Redemption Price Per Share
($90,799,730 / 90,799,730 shares of capital stock outstanding)...... $1.00
=====
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
VISION FIDUCIARY FUNDS, INC.
Statement of Operations
Six Months Ended October 31, 1993 (unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income (Note 2C).......................................... $1,541,084
EXPENSES:
Administrative personnel and services (Note 5)............. $72,786
Directors' fees............................................ 3,344
Custodian, transfer and dividend disbursing agent fees and
expenses.................................................... 26,161
Insurance premiums......................................... 3,203
Printing and postage....................................... 2,573
Auditing fees.............................................. 6,386
Legal fees................................................. 2,968
Recordkeeping fees......................................... 15,209
Taxes...................................................... 2,390
Miscellaneous.............................................. 879
-------
Total Expenses.................................................... 135,899
----------
NET INVESTMENT INCOME............................................... $1,405,185
==========
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
VISION FIDUCIARY FUNDS, INC.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
----------------------------
1994* 1993
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income........................... $ 1,405,185 $ 2,536,765
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
Dividends to shareholders from net investment
income........................................ (1,405,185) (2,536,765)
------------- -------------
CAPITAL STOCK TRANSACTIONS (NOTE 4)--
Proceeds from sale of shares.................... 103,434,175 237,793,445
Cost of shares redeemed......................... (122,230,626) (186,957,563)
------------- -------------
Change in net assets resulting from capital
stock transactions............................ (18,796,451) 50,835,882
------------- -------------
CHANGE IN NET ASSETS........................... (18,796,451) 50,835,882
NET ASSETS:
Beginning of period............................. 109,596,181 58,760,299
------------- -------------
End of period................................... $ 90,799,730 $ 109,596,181
============= =============
</TABLE>
* Six months ended October 31, 1993 (unaudited).
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
VISION FIDUCIARY FUNDS, INC.
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
-------------------------------------------------------
1994** 1993 1992 1991 1990 1989*
- ------------------------ ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------
INCOME FROM INVESTMENT
OPERATIONS
- ------------------------
Net investment income 0.01 0.03 0.05 0.07 0.08 0.07
- ------------------------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
- ------------------------
Dividends to sharehold-
ers from net investment
income (0.01) (0.03) (0.05) (0.07) (0.08) (0.07)
- ------------------------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
PERIOD ------ ------ ------ ------ ------ ------
- ------------------------
TOTAL RETURN*** 1.47% 3.25% 5.22% 7.64% 8.85% 7.70%
- ------------------------
RATIOS TO AVERAGE NET
ASSETS
- ------------------------
Expenses 0.28%(a) 0.32% 0.21% 0.41% 0.47% 0.56%(a)
- ------------------------
Net investment income 2.90%(a) 3.18% 5.14% 7.38% 8.45% 8.14%(a)
- ------------------------
SUPPLEMENTAL DATA
- ------------------------
<CAPTION>
Net assets, end of pe-
riod (000 omitted) $90,800 $109,596 $58,760 $78,138 $87,682 $73,417
- ------------------------
</TABLE>
* Reflects operations for the period from June 1, 1988 (date of initial public
offering) to April 30, 1989.
** Six months ended October 31, 1993 (unaudited).
*** Based on net asset value which does not reflect the sales load or
redemption fee, if applicable.
(a) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
VISION FIDUCIARY MONEY MARKET FUND
VISION FIDUCIARY FUNDS, INC.
Notes to Financial Statements
October 31, 1993 (unaudited)
(1) ORGANIZATION
Vision Fiduciary Money Market Fund (the "Fund") is a portfolio offered by
Vision Fiduciary Funds, Inc. (the "Company"), a no-load, diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended. The financial statements herein present only those of Vision
Fiduciary Money Market Fund. Sale of shares in the Fund may be made to
Manufacturers and Traders Trust Company ("M&T Bank") and its affiliated banks,
acting on behalf of certain customers for which they exercise substantial
investment discretion.
(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. The
policies are in conformity with generally accepted accounting principles.
A. Investment Valuations--The Board of Directors ("Directors") has determined
that the best method currently available for valuing portfolio securities is
amortized cost. The Fund's use of the amortized cost method to value its
portfolio securities is conditioned on its compliance with Rule 2a-7 under
the Investment Company Act of 1940.
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 securities to ensure the existence of a proper level of
collateral. 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. 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. Income--Interest income is recorded on the accrual basis. Interest income
includes interest and discount earned (net of premium), including original
issue discount as required by the Internal Revenue Code, plus realized net
gains, if any, on portfolio securities.
D. Federal Taxes--It is the Fund's policy to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and
distribute to shareholders each year all of its taxable income. Accordingly,
no provision for federal tax is necessary.
E. When-Issued and Delayed Delivery Transactions--The Fund may engage in when-
issued or delayed delivery transactions. To the extent the Fund engages in
such transactions, it will do so for the purpose of acquiring portfolio
securities consistent with its investment objective and policies and not for
the purpose of investment leverage. The Fund will record a when-issued
security and the related liability on the trade date. Until the securities
are received and paid for, the Fund will maintain 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 date of the
transaction.
(3) DIVIDENDS
The Fund computes its net income daily and, immediately prior to the
calculation of its net asset value at the close of business, declares and
records dividends to shareholders of record at the time of the previous
computation of the Fund's net asset value. Payment of dividends is made monthly
in cash, or in additional shares at the net asset value on the payable date.
(4) CAPITAL STOCK
At October 31, 1993, there were 1,000,000,000 shares of $0.001 par value
capital stock authorized with respect to the Fund; capital paid-in aggregated
$90,708,930 and par value was $90,800. Transactions in capital stock were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
--------------------------
1994* 1993
------------ ------------
<S> <C> <C>
Shares outstanding, beginning of period............. 109,596,181 58,760,299
Shares sold......................................... 103,434,175 237,793,445
Shares redeemed..................................... (122,230,626) (186,957,563)
------------ ------------
Shares outstanding, end of period................... 90,799,730 109,596,181
============ ============
</TABLE>
* Six months ended October 31, 1993.
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment advisory services are provided to the Fund by M&T Bank pursuant to
an investment advisory agreement dated April 25, 1988. Under the terms of such
agreement, the Fund pays no fee for the services of M&T Bank as its Investment
Adviser.
Federated Administrative Services ("FAS") provides certain administrative
personnel and services at an annual rate of .15% on the first $250 million of
the Company's average aggregate daily net assets; .125% on the next 250
million; .10% on the next $250 million; and .075% on the average aggregate
daily net assets of the Company in excess of $750 million. The administrative
fee received during any fiscal year shall be at least $50,000. FAS may
voluntarily waive a portion of its fee. For the six months ended October 31,
1993, FAS earned $72,786.
Certain Officers of the Company are also Officers and Trustees of FAS.
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
Mutual funds are not deposits or obligations of, nor are they endorsed or
guaranteed by Manufacturers and Traders Trust Company ("M&T Bank") or any other
bank.
Fund shares are not insured or guaranteed by the FDIC, the Federal Reserve
Board or any government agency.
The Vision Fiduciary Money Market Fund seeks to maintain a stable $1 per share
net asset value, but there is no guarantee that it will be able to do so.
Although the Vision Fiduciary Money Market Fund is advised by M&T Bank, an
investment in the Fund is not guaranteed by the bank.
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.
