<PAGE> 1
- - -------------------------------------------------------------------------------
PROVIDENT
- - -------------------------------------------------------------------------------
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809
FUNDS Phone: 302-792-2555 Fax: 302-792-5876
G. Willing Pepper
Chairman TEMPORARY INVESTMENT FUND, INC.
May 5, 1995
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of
Temporary Investment Fund, Inc. for the period ended March 31, 1995.
Money market funds continued to be challenged as 1995 began. A rise in
short-term interest rates, the financial crisis in Mexico and decline of the
U.S. dollar were factors placing pressure on the fixed income environment.
TempFund and TempCash have maintained a defensive investment strategy in order
to take advantage of rapidly changing market conditions.
Provident Institutional Funds remain committed to quality service and
competitive returns, with liquidity and stability of principal a primary focus.
Credit quality is the premier ingredient in our investment strategy.
Provident Institutional Funds offer a broad range of high quality Money
Market, Fixed Income and Equity Funds to meet the varied needs of our investors.
Please feel free to contact your Provident Distributors, Inc. account
representative or our Client Service Center at (800) 821-7432 to discuss your
investment options.
Thank you for your continued confidence in the Provident Institutional
Funds. We welcome the opportunity to service your investment needs.
Sincerely,
/s/ G. WILLING PEPPER
---------------------
G. Willing Pepper
Chairman
<PAGE> 2
TEMPORARY INVESTMENT FUND, INC.
Semi-Annual Investment Adviser's Report
Last year, the fixed income markets were hard hit by rising interest rates
and derivative-related losses. The first quarter of 1995 was off to an
inauspicious start with another increase in short-term interest rates, the
financial crisis in Mexico, and the decline in the dollar. One sector that does
appear to be experiencing a trend change is the pace of business activity. In
the fourth quarter of last year, the economy grew by a revised 5.1%, pushing the
annual rate to 4.1%, the strongest showing in ten years. The preliminary
estimate for the first quarter of 1995 was reported at 2.8%, reflecting lower
consumer spending, declining auto sales and a softer housing market. In recent
congressional testimony, Fed Chairman Greenspan indicated that the FOMC expects
the economy to expand at a 2-3% rate in 1995. Greenspan even used the word
"ease" in his February testimony, causing the markets to rally strongly, but
temporarily, on the belief that the year long rise in interest rates was about
over.
The Federal Reserve also has reason to be pleased with the inflation
numbers. The fourth quarter 1994 report on gross domestic product (GDP) revealed
that prices advanced only 1.3%, versus 1.9% in the previous quarter. For the
year, consumer prices were up 2.7%, exactly the same as in 1993. The FOMC is
estimating that consumer prices will average 3.0-3.5% in 1995. April's report on
GDP reported that inflation rose by only 2.2% during the first quarter.
Short-term interest rates continued their upward climb during the last two
quarters. The Federal Reserve tightened policy twice, in November and February,
for a total of 125 basis points, bringing the Federal funds rate to 6.00%.
Fourth quarter economic reports continued to suggest that business was
expanding, and that further Fed action was likely in the new year. On February
1, the FOMC voted to increase the Federal funds target and discount rate 50
basis points to 6.00% and 5.25%, respectively. Although this was the first
interest rate hike of 1995, market expectations that it might also be the last
ignited a strong rally that flattened the yield curve. Three and six-month
Treasury bill yields fell to 5.83% and 6.11%, respectively, while the three and
six-month LIBOR decreased to 6.19% and 6.38%, respectively.
The big story in the municipal market was Orange County's bankruptcy filing
in December. This action shocked the short-term tax-free markets, causing yields
to rise by more than 50 basis points. In the wake of Orange County, there have
been reports of derivative-related losses in other states, but the markets have
calmed down considerably from year-end levels. The start of the new year saw the
expected increase in short-term tax-free assets from bond coupon payments and
called bonds. Increased demand for liquid, short-term investments, due to
anticipation of another rate increase by the Federal Reserve also contributed to
the inflow of money into short-term tax-exempts. This cash inflow drove
short-term tax-free yields to below 2% in mid-January, but by the end of the
first quarter rates had recovered to the 4% range.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
MAY 1, 1995
2
<PAGE> 3
TEMPFUND PORTFOLIO
Temporary Investment Fund, Inc.
Statement of Net Assets
March 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- --------- --------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--5.9%
DOMESTIC CERTIFICATES OF DEPOSIT
Bank of New York
6.21%............ 06/09/95 $ 100,000 $ 100,001,875
NationsBank Corp. of North Carolina
5.40%............ 06/01/95 75,000 74,986,659
5.35%............ 06/07/95 95,000 94,949,232
--------------
Total Certificates of Deposit
(Cost $269,937,766)................. 269,937,766
--------------
COMMERCIAL PAPER--47.6%
BANKS--2.7%
National City Corp.
5.75%............ 04/26/95 25,000 24,900,174
6.12%............ 06/08/95 25,000 24,711,000
NationsBank Corp.
6.28%............ 04/03/95 75,000 74,973,833
--------------
124,585,007
--------------
BEVERAGES--1.5%
Seagrams (Joseph) & Sons
6.12%............ 06/07/95 36,457 36,041,755
6.12%............ 06/08/95 31,000 30,641,640
--------------
66,683,395
--------------
BUSINESS SERVICES-ACCOUNTING & PUBLISHING--0.4%
Dun & Bradstreet Corp.
6.25%............ 05/02/95 17,000 16,908,507
--------------
COMMUNICATION EQUIPMENT--0.6%
Siemens Corp.
5.625%........... 04/10/95 25,000 24,964,844
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT--0.7%
MCA Funding Corp.
5.60%............ 04/03/95 31,000 30,990,356
--------------
FINANCE LESSORS--6.5%
General Electric Capital Corp.
5.43%............ 04/03/95 70,000 69,978,883
6.25%............ 05/18/95 80,000 79,347,222
6.05%............ 05/23/95 50,000 49,563,056
6.27%............ 08/15/95 65,000 63,460,367
6.85%............ 09/21/95 35,000 33,847,868
--------------
296,197,396
--------------
GUIDED MISSILES & SPACE VEHICLES--1.7%
Rockwell International Corp.
6.13%............ 09/13/95 78,000 75,808,525
--------------
MOTOR VEHICLES & CAR BODIES--2.1%
Daimler-Benz North America Corp.
6.02%............ 04/21/95 83,600 83,320,404
6.29%............ 05/31/95 15,000 14,842,750
--------------
98,163,154
--------------
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- --------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
PERSONAL CREDIT INSTITUTIONS--4.7%
Ford Motor Credit Corp.
6.35%............ 04/21/95 $ 40,000 $ 39,858,889
6.25%............ 05/15/95 100,000 99,236,111
6.18%............ 05/18/95 75,000 74,394,875
--------------
213,489,875
--------------
PETROLEUM REFINING--3.8%
Koch Industries, Inc.
6.375%........... 04/03/95 175,000 174,938,021
--------------
PHARMACEUTICAL PREPARATIONS--5.8%
Eli Lilly & Co.
6.15%............ 05/03/95 106,000 105,420,534
6.25%............ 05/15/95 45,850 45,499,757
6.25%............ 05/19/95 25,000 24,791,667
6.12%............ 06/12/95 50,000 49,388,000
6.39%............ 06/19/95 40,000 39,439,100
--------------
264,539,058
--------------
SECURITY BROKERS & DEALERS--10.2%
Goldman Sachs Group, L.P.
6.50%............ 07/25/95 40,000 39,169,444
6.95%............ 09/11/95 65,000 62,954,576
Merrill Lynch & Co.
6.28%............ 05/24/95 100,000 99,075,444
6.42%............ 06/20/95 75,000 73,930,000
6.50%............ 07/24/95 50,000 48,970,833
Morgan Stanley Group
6.50%............ 04/13/95 70,000 69,848,333
6.15%............ 09/20/95 75,000 72,796,250
--------------
466,744,880
--------------
SERVICES-EQUIPMENT, RENTAL & LEASE--1.0%
International Lease and Finance Corp.
6.10%............ 06/05/95 24,500 24,230,160
6.40%............ 06/19/95 20,000 19,719,111
--------------
43,949,271
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--5.5%
American Express Credit Corp.
6.10%............ 07/21/95 100,000 98,119,167
C.I.T. Group Holdings, Inc.
6.12%............ 06/08/95 100,000 98,844,000
6.10%............ 06/29/95 55,000 54,170,569
--------------
251,133,736
--------------
TELEPHONE COMMUNICATIONS--0.4%
BellSouth Capital Funding Corp.
6.25%............ 05/15/95 20,000 19,847,222
--------------
Total Commercial Paper
(Cost $2,168,943,247)............... 2,168,943,247
--------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
TEMPFUND PORTFOLIO
Statement of Net Assets (Continued)
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- --------- --------------
<S> <C> <C> <C>
MEDIUM TERM NOTES--2.2%
Merrill Lynch & Co.
7.214%........... 12/18/95 $ 50,000 $ 50,000,000
7.56%............ 01/18/96 49,500 49,491,385
--------------
Total Medium Term Notes
(Cost $99,491,385).................. 99,491,385
--------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS+--3.7%
Federal Home Loan Bank
6.18%............ 04/03/95 70,000 69,969,744
Federal National Mortgage Association
6.07%............ 04/04/95 100,000 100,000,000
--------------
Total Agency Obligations
(Cost $169,969,744)................. 169,969,744
--------------
VARIABLE RATE OBLIGATIONS+--16.1%
Bank of New York (Delaware)
6.31%............ 04/01/95 80,000 79,993,341
Bear Stearns Companies, Inc.
6.625%........... 04/03/95 100,000 100,000,000
6.04%............ 04/04/95 75,000 75,000,000
6.36%............ 05/24/95 70,000 70,000,000
Goldman Sachs Group, L.P.
6.4375%.......... 06/08/95 160,000 160,000,000
J. P. Morgan Securities, Inc.
6.225%........... 04/10/95 250,000 250,000,000
--------------
Total Variable Rate Obligations
(Cost $734,993,341)................. 734,993,341
--------------
REPURCHASE AGREEMENTS--24.7%
Lehman Government Securities, Inc.
6.375%........... 04/03/95 130,400 130,400,000
(Agreement dated 03/31/95
to be repurchased at
$130,469,275,
collateralized by
$151,667,611 Federal Home
Loan Mortgage Corp. Notes
5.50% to 12.50% due
02/01/95 to 12/01/99.
Market value of
collateral is
$134,292,200.)
Morgan Stanley & Co.
6.335%........... 04/03/95 130,000 130,000,000
(Agreement dated 03/31/95
to be repurchased at
$130,068,629,
collateralized by
$177,867,608 U.S.
Treasury TINTS and CUBES
6.25% to 10.50% due
05/15/95 to 11/15/22.
Market value of
collateral is
$132,987,983.)
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- --------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Morgan Stanley & Co. (continued)
6.40%............ 04/03/95 $ 180,000 $ 180,000,000
(Agreement dated 03/31/95
to be repurchased at
$180,096,000,
collateralized by
$246,278,226 Resolution
Trust Corp. Notes 7.82%
to 10.75% due 04/03/95 to
04/15/18. Market value of
collateral is
$184,137,208.)
6.415%........... 04/03/95 400,000 400,000,000
(Agreement dated 03/31/95
to be repurchased at
$400,213,833,
collateralized by
$512,352,946 Federal
National Mortgage
Association Notes and
$34,932,000 Resolution
Trust Corp. Notes 5.08%
to 13.00% due 04/15/95 to
01/15/07. Market value of
collateral is
$409,193,795.)
PaineWebber, Inc.
6.35%............ 04/03/95 286,000 286,000,000
(Agreement dated 03/31/95
to be repurchased at
$286,151,342,
collateralized by
$130,553,000 Resolution
Trust Corp. Notes 4.43%
to 8.875% due 04/03/95 to
04/15/30. Market value of
collateral is
$292,922,434.)
--------------
Total Repurchase Agreements
(Cost $1,126,400,000)............... 1,126,400,000
--------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
TEMPFUND PORTFOLIO
Statement of Net Assets (Concluded)
(Unaudited)
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $4,569,735,483*)....... 100.2% $4,569,735,483
LIABILITIES IN EXCESS OF OTHER
ASSETS....................... (0.2) (11,296,773)
------ --------------
NET ASSETS (Equivalent to $1.00
per share based on
4,490,419,818 TempFund shares
and 68,064,479 TempFund
Dollar shares, $.001 par
value common stock
outstanding)................. 100.0% $4,558,438,710
====== ==============
NET ASSET VALUE, offering
and redemption price per share
($4,558,438,710 / 4,558,484,297)........ $1.00
=====
</TABLE>
- - ---------------
* Also cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of March 31, 1995,
and the maturity date shown is the date the principal amount can be recovered
upon demand or put.
<TABLE>
<CAPTION>
---------------------------------------------------------
TEMPFUND/TEMPFUND DOLLAR
Maturity Information
March 31, 1995
PERCENTAGE
MATURITY PAR OF
PERIOD (000) PORTFOLIO
------------- -------------- ----------
<S> <C> <C> <C>
1- 7 Days $1,902,400,000 41.4%
8- 14 Days 345,000,000 7.5
15- 30 Days 148,600,000 3.2
31- 60 Days 688,850,000 15.0
61- 90 Days 901,957,000 19.7
91-120 Days 190,000,000 4.1
121-150 Days 65,000,000 1.4
Over 150 Days 352,500,000 7.7
-------------- -------
$4,594,307,000 100.0%
============== =======
Average Weighted Maturity--45 Days
---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
TEMPCASH PORTFOLIO
Temporary Investment Fund, Inc.
Statement of Net Assets
March 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--8.0%
DOMESTIC CERTIFICATES OF DEPOSIT--2.6%
Banc One, Milwaukee
6.82%............ 03/07/96 $ 50,000 $ 49,998,855
NationsBank Corp. of North Carolina
5.65%............ 07/21/95 25,000 24,969,590
--------------
74,968,445
--------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--5.4%
Canadian Imperial Bank of Commerce
7.00%............ 09/12/95 25,000 25,000,000
Mitsubishi Bank
6.41%............ 05/23/95 85,000 85,004,072
Societe Generale
5.80%............ 04/06/95 25,000 25,000,067
6.75%............ 06/05/95 25,000 25,001,756
--------------
160,005,895
--------------
Total Certificates of Deposit
(Cost $234,974,340)................. 234,974,340
--------------
COMMERCIAL PAPER--38.4%
BANKS--6.3%
ABN-AMRO N.A. Finance, Inc.
6.22%............ 08/10/95 50,000 48,868,306
6.16%............ 08/15/95 50,000 48,836,444
Swedish Export Credit Corp.
5.69%............ 04/28/95 40,000 39,829,300
Toronto Dominion Holdings (USA), Inc.
6.02%............ 06/13/95 50,000 49,389,639
--------------
186,923,689
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT--1.6%
MCA Funding Corp.
6.375%........... 06/09/95 30,000 29,633,438
6.20%............ 09/25/95 17,000 16,481,783
--------------
46,115,221
--------------
FINANCE LESSORS--6.7%
General Electric Capital Corp.
6.40%............ 05/08/95 75,000 74,506,667
6.35%............ 06/12/95 75,000 74,047,500
6.40%............ 06/19/95 50,000 49,297,778
--------------
197,851,945
--------------
FIRE, MARINE & CASUALTY INSURANCE--0.6%
American International Group, Inc.
6.43%............ 06/08/95 18,400 18,176,522
--------------
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
GUIDED MISSILES & SPACE VEHICLES--3.1%
Rockwell International Corp.
6.33%............ 05/31/95 $ 15,000 $ 14,841,750
6.33%............ 06/01/95 51,500 50,947,619
6.47%............ 06/01/95 27,000 26,703,998
--------------
92,493,367
--------------
PERSONAL CREDIT INSTITUTIONS--10.1%
Ford Motor Credit Corp.
6.35%............ 04/21/95 50,000 49,823,611
6.18%............ 05/17/95 125,000 124,012,917
6.30%............ 05/19/95 50,000 49,580,000
General Motors Acceptance Corp.
6.08%............ 04/17/95 75,000 74,797,333
--------------
298,213,861
--------------
PHARMACEUTICAL PREPARATIONS--0.8%
American Home Products Corp.
6.35%............ 04/03/95 25,000 24,991,181
--------------
SECURITY BROKERS & DEALERS--2.5%
Merrill Lynch & Co.
6.18%............ 09/11/95 50,000 48,600,917
Morgan Stanley Group
6.50%............ 04/13/95 25,000 24,945,833
--------------
73,546,750
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--6.7%
Sears Roebuck Acceptance Corp.
6.40%............ 05/10/95 50,000 49,653,333
6.30%............ 05/18/95 50,000 49,588,750
6.18%............ 07/10/95 50,000 49,141,667
6.15%............ 08/14/95 50,000 48,846,875
--------------
197,230,625
--------------
Total Commercial Paper
(Cost $1,135,543,161)............... 1,135,543,161
--------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS--17.8%
Federal Home Loan Bank
Discount Notes
5.62%............ 05/15/95 25,000 24,828,278
Federal Home Loan Bank+
5.78%............ 04/04/95 173,200 173,166,084
Federal National Mortgage Association+
6.07%............ 04/04/95 75,000 75,000,000
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
TEMPCASH PORTFOLIO
Statement of Net Assets (Continued)
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Federal National Mortgage Association
Discount Notes
5.79%............ 05/08/95 $ 25,000 $ 24,851,229
Student Loan Marketing Association
Variable Rate Notes+
5.97%............ 04/04/95 51,750 51,742,761
5.99%............ 04/04/95 50,000 50,011,185
6.01%............ 04/04/95 6,000 6,001,806
6.03%............ 04/04/95 44,000 43,989,546
6.04%............ 04/04/95 5,300 5,305,718
6.17%............ 04/04/95 13,950 14,018,117
6.245%........... 04/04/95 56,000 56,237,433
--------------
Total Agency Obligations
(Cost $525,152,157)................. 525,152,157
--------------
VARIABLE RATE OBLIGATIONS+--35.3%
AT&T Capital Corp.
6.41%............ 04/03/95 50,000 50,038,560
Bear Stearns Companies, Inc.
6.625%........... 04/03/95 60,000 60,000,000
6.04%............ 04/04/95 40,000 40,000,000
Beneficial Finance Corp. Medium Term Note
6.02%............ 04/03/95 50,000 50,000,000
Beta Finance, Inc.
6.02%............ 04/04/95 60,000 60,000,000
Comerica Bank, Detroit
5.92%............ 04/04/95 100,000 99,975,631
5.93%............ 04/04/95 48,730 48,705,669
Fleet National Bank
6.28%............ 04/01/95 50,000 49,987,945
6.025%........... 04/11/95 50,000 49,983,397
Goldman Sachs Group, L.P.
6.375%........... 05/10/95 100,000 100,000,000
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
VARIABLE RATE OBLIGATIONS (CONTINUED)
Household Finance Corp.
6.46%............ 04/03/95 $ 20,000 $ 20,008,275
J. P. Morgan Securities, Inc.
6.225%........... 04/10/95 100,000 100,000,000
Lehman Brothers Holdings, Inc.
6.40%............ 06/07/95 130,000 130,000,000
Merrill Lynch & Co.
6.555%........... 04/03/95 50,000 49,997,425
6.04%............ 04/04/95 50,000 50,000,000
Peoples Security Life Insurance Co.
6.26%............ 04/03/95 50,000 50,000,000
PHH Corporation
6.02%............ 04/04/95 25,000 25,000,000
6.04%............ 04/04/95 10,000 10,001,155
--------------
Total Variable Rate Obligations
(Cost $1,043,698,057)............... 1,043,698,057
--------------
REPURCHASE AGREEMENTS--0.6%
PaineWebber, Inc.
6.35%............ 04/03/95.. 17,300 17,300,000
(Agreement dated 03/31/95
to be repurchased at
$17,309,155,
collateralized by
$22,883,774 Federal
National Mortgage
Association Notes 4.25%
to 9.00% due 10/15/11 to
09/15/21. Market value of
collateral is
$17,702,812.)
--------------
Total Repurchase Agreements
(Cost $17,300,000).................. 17,300,000
--------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
TEMPCASH PORTFOLIO
Temporary Investment Fund, Inc.
Statement of Net Assets (Concluded)
(Unaudited)
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,956,667,715*)....... 100.1% $2,956,667,715
LIABILITIES IN EXCESS OF OTHER
ASSETS....................... (0.1) (1,659,992)
------ --------------
NET ASSETS (Equivalent to $1.00
per share based on
2,546,832,967 TempCash shares
and 408,770,004 TempCash
Dollar shares, $.001 par
value common stock
outstanding)................. 100.0% $2,955,007,723
====== ==============
NET ASSET VALUE, offering and redemption
price per share
($2,955,007,723 / 2,955,602,971)........ $1.00
=====
</TABLE>
- - ---------------
* Also cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of March 31, 1995,
and the maturity date shown is the date the principal amount can be recovered
upon demand or put.
<TABLE>
<CAPTION>
---------------------------------------------------------
TEMPCASH/TEMPCASH DOLLAR
Maturity Information
March 31, 1995
PERCENTAGE
MATURITY PAR OF
PERIOD (000) PORTFOLIO
------------- -------------- ----------
<S> <C> <C> <C>
1- 7 Days $1,206,230,000 40.6%
8- 14 Days 125,000,000 4.2
15- 30 Days 215,000,000 7.2
31- 60 Days 585,000,000 19.7
61- 90 Days 471,900,000 15.9
91-120 Days 75,000,000 2.5
121-150 Days 150,000,000 5.1
Over 150 Days 142,000,000 4.8
-------------- -------
$2,970,130,000 100.0%
============== =======
Average Weighted Maturity--44 Days
---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
TEMPORARY INVESTMENT FUND, INC.
Statements of Operations
Six Months Ended March 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
TEMPFUND TEMPCASH
PORTFOLIO PORTFOLIO
------------ ------------
<S> <C> <C>
Interest income............................................................... $151,899,947 $126,267,170
------------ ------------
Expenses:
Investment advisory fee................................................... 3,342,618 2,910,598
Administration fee........................................................ 3,342,618 2,910,598
Directors' fees and officer's salary...................................... 24,350 21,792
Transfer agent fee........................................................ 276,409 60,873
Custodian fee............................................................. 275,387 239,020
Shareholder computer access program....................................... 85,673 20,862
Legal and audit........................................................... 63,325 29,638
Registration fees and expenses............................................ 17,126 7,959
Other..................................................................... 62,251 24,719
------------ ------------
7,489,757 6,226,059
Less fees waived.......................................................... (417,838) (2,765,192)
------------ ------------
7,071,919 3,460,867
Service Organization fees................................................. 104,245 561,010
------------ ------------
Total expenses....................................................... 7,176,164 4,021,877
------------ ------------
Net investment income..................................................... 144,723,783 122,245,293
Net realized loss on investments.............................................. (45,583) (63,034)
------------ ------------
Net increase in net assets resulting from operations...................... $144,678,200 $122,182,259
=========== ===========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
TEMPORARY INVESTMENT FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TEMPFUND PORTFOLIO TEMPCASH PORTFOLIO
------------------------------------- ------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
1995 1994 1995 1994
---------------- ----------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income.......... $ 144,723,783 $ 226,506,870 $ 122,245,293 $ 89,031,431
Net realized gain (loss) on
investments.................. (45,583) 38,515 (63,034) (532,216)
---------------- ----------------- ---------------- ----------------
Net increase in net assets
resulting from
operations................. 144,678,200 226,545,385 122,182,259 88,499,215
---------------- ----------------- ---------------- ----------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
TempFund shares.............. (142,572,374) (223,175,770) -- --
TempFund Dollar shares....... (2,151,409) (3,331,100) -- --
TempCash shares.............. -- -- (110,237,587) (76,657,316)
TempCash Dollar shares....... -- -- (12,007,706) (12,374,115)
Distributions to shareholders
from net realized gain:
TempFund shares.............. (37,841) (156,828) -- --
TempFund Dollar shares....... (673) (2,408) -- --
TempCash shares.............. -- -- -- (40,922)
TempCash Dollar shares....... -- -- -- (6,452)
---------------- ----------------- ---------------- ----------------
Total distributions to
shareholders............. (144,762,297) (226,666,106) (122,245,293) (89,078,805)
---------------- ----------------- ---------------- ----------------
Capital share transactions (at $1
per share):
Sale of shares................. 48,797,780,259 111,597,973,227 39,919,151,771 40,239,880,232
Shares issued in reinvestment
of dividends................. 19,259,359 35,304,942 34,788,235 21,324,036
Shares repurchased............. (48,841,473,655) (112,684,951,660) (39,727,273,932) (39,318,494,571)
---------------- ----------------- ---------------- ----------------
Increase (decrease) in net
assets derived from
capital share
transactions............. (24,434,037) (1,051,673,491) 226,666,074 942,709,697
---------------- ----------------- ---------------- ----------------
Total increase (decrease)
in net assets............ (24,518,134) (1,051,794,212) 226,603,040 942,130,107
Net assets:
Beginning of period................ 4,582,956,844 5,634,751,056 2,728,404,683 1,786,274,576
---------------- ----------------- ---------------- ----------------
End of period...................... $ 4,558,438,710 $ 4,582,956,844 $ 2,955,007,723 $ 2,728,404,683
================ ================= ================ ================
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
TEMPORARY INVESTMENT FUND, INC.
Financial Highlights
(For a Share of the Fund Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
TEMPFUND SHARES
------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED --------------------------------------------------------------
MARCH 31, 1995 1994 1993 1992 1991 1990
-------------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income....................... .0272 .0360 .0310 .0424 .0667 .0815
Net Realized Gains on Investments........... -- -- -- .0015 -- --
-------- ------ ------ ------ ------ ------
Total From Investment Operations............ .0272 .0360 .0310 .0439 .0667 .0815
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)...... (.0272) (.0360) (.0310) (.0424) (.0667) (.0815)
Distributions (from capital gains).......... -- -- -- (.0015) -- --
-------- ------ ------ ------ ------ ------
Total Distributions......................... (.0272) (.0360) (.0310) (.0439) (.0667) (.0815)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
-------- ------ ------ ------ ------ ------
Total Return................................ 5.60%(2) 3.66% 3.14% 4.48% 6.87% 8.47%
Ratios/Supplemental Data
Net Assets, End of Period (000's)......... $4,486,458 $4,480,851 $5,522,056 $9,227,572 $8,888,832 $4,857,260
Ratio of Expenses to Average Daily Net
Assets.................................. 27%(1),(2) .25%(1) .21% .21% .27% .30%
Ratio of Net Investment Income to
Average Daily Net Assets................ 5.46%(2) 3.60% 3.10% 4.13% 6.53% 8.16%
</TABLE>
<TABLE>
<CAPTION>
TEMPFUND DOLLAR SHARES
------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED --------------------------------------------------------------
MARCH 31, 1995 1994 1993 1992 1991 1990
-------------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income....................... .0260 .0335 .0285 .0399 .0642 .0790
Net Realized Gains on Investments........... -- -- -- .0015 -- --
-------- ------ ------ ------ ------ ------
Total From Investment Operations............ .0260 .0335 .0285 .0414 .0642 .0790
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)...... (.0260) (.0335) (.0285) (.0399) (.0642) (.0790)
Distributions (from capital gains).......... -- -- -- (.0015) -- --
-------- ------ ------ ------ ------ ------
Total Distributions......................... (.0260) (.0335) (.0285) (.0414) (.0642) (.0790)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
Total Return................................ 5.35%(2) 3.41% 2.89% 4.23% 6.62% 8.22%
Ratios/Supplemental Data
Net Assets, End of Period (000's)......... $ 71,981 $ 102,105 $ 112,695 $ 217,230 $ 44,667 $ 73,968
Ratio of Expenses to Average Daily Net
Assets.................................. 52%(1),(2) .50%(1) .46% .46% .52% .55%
Ratio of Net Investment Income to
Average Daily Net Assets................ 5.21%(2) 3.35% 2.85% 3.88% 6.28% 7.91%
</TABLE>
- - ---------------
(1) Without the waiver of advisory and administration fees, the ratio of
expenses to average daily net assets for TempFund Shares would have been
.28% (annualized) for the six months ended March 31, 1995, and .27% for the
year ended September 30, 1994. For TempFund Dollar Shares the ratio of
expenses to average daily net assets would have been .53% (annualized) for
the six months ended March 31, 1995, and .52% for the year ended
September 30, 1994.
(2) Annualized.
See accompanying notes to financial statements.
11
<PAGE> 12
TEMPORARY INVESTMENT FUND, INC.
Financial Highlights
(For a Share of the Fund Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
TEMPCASH SHARES
------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED --------------------------------------------------------------
MARCH 31, 1995 1994 1993 1992 1991 1990
-------------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ -------
Income From Investment Operations
Net Investment Income....................... .0279 .0370 .0310 .0424 .0676 .0830
Net Realized Gains on Investments........... -- -- -- .0008 -- --
-------- ------ ------ ------ ------ ------
Total From Investment Operations............ .0279 .0370 .0310 .0432 .0676 .0830
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)...... (.0279) (.0370) (.0310) (.0424) (.0676) (.0830)
Distributions (from capital gains).......... -- -- -- (.0008) -- --
-------- ------ ------ ------ ------ ------
Total Distributions......................... (.0279) (.0370) (.0310) (.0432) (.0676) (.0830)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
Total Return................................ 5.74%(2) 3.76% 3.14% 4.41% 6.97% 8.62%
Ratios/Supplemental Data
Net Assets, End of Period (000's)......... $2,651,522 $2,330,456 $1,479,035 $1,492,959 $1,528,637 $1,179,276
Ratio of Expenses to Average Daily Net
Assets.................................. .16%(1),(2) .16%(1) .19%(1) .20%(1) .20%(1) .20%(1)
Ratio of Net Investment Income to
Average Daily Net Assets................ 5.60%(2) 3.70% 3.10% 4.14% 6.57% 8.17%
</TABLE>
<TABLE>
<CAPTION>
TEMPCASH DOLLAR SHARES
------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED --------------------------------------------------------------
MARCH 31, 1995 1994 1993 1992 1991 1990
-------------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income....................... .0267 .0345 .0285 .0399 .0651 .0805
Net Realized Gains on Investments........... -- -- -- .0008 -- --
-------- ------ ------ ------ ------ ------
Total From Investment Operations............ .0267 .0345 .0285 .0407 .0651 .0805
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)...... (.0267) (.0345) (.0285) (.0399) (.0651) (.0805)
Distributions (from capital gains).......... -- -- -- (.0008) -- --
-------- ------ ------ ------ ------ ------
Total Distributions......................... (.0267) (.0345) (.0285) (.0407) (.0651) (.0805)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
Total Return................................ 5.49%(2) 3.51% 2.89% 4.16% 6.72% 8.37%
Ratios/Supplemental Data
Net Assets, End of Period (000's)......... $ 303,486 $ 397,948 $ 307,239 $ 408,900 $ 438,721 $ 317,267
Ratio of Expenses to Average Daily Net
Assets.................................. .41%(1),(2) .41%(1) .44%(1) .45%(1) .45%(1) .45%(1)
Ratio of Net Investment Income to Average
Daily Net Assets........................ 5.35%(2) 3.45% 2.85% 3.89% 6.32% 7.92%
</TABLE>
- - ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets for TempCash Shares would have been
.31% (annualized) for the six months ended March 31, 1995, .33%, .37%, .33%,
34% and .39% for the years ended September 30, 1994, 1993, 1992, 1991 and
1990, respectively. For TempCash Dollar Shares, the ratio of expenses to
average daily net assets would have been .56% (annualized) for the six
months ended March 31, 1995, .58%, .62%, .58%, .59% and .64% for the years
ended September 30, 1994, 1993, 1992, 1991 and 1990, respectively.
(2) Annualized.
See accompanying notes to financial statements.
12
<PAGE> 13
Notes to Financial Statements
(Unaudited)
A. Temporary Investment Fund, Inc. (the Company) is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end management
company. The Company maintains two separate portfolios, TempFund and TempCash.
Interests in the TempFund portfolio are represented by Class B (TempFund shares)
and Class B--Special Series 1 (TempFund Dollar shares) common stock. Interests
in the TempCash portfolio are represented by Class C (TempCash Dollar shares)
and Class C--Special Series 1 (TempCash shares) common stock.
Dollar shares are substantially identical in all respects to other classes of
shares, except that Dollar shares are sold to institutions which provide support
services to their customers, who beneficially own such shares, in consideration
of the Company's payment of 0.25% (on an annualized basis) of the average daily
net asset value of the shares held by the institutions for the benefit of their
customers. The Service Organization fee is applicable only to the earnings of
the respective Dollar series of shares.
B. Significant accounting policies are as follows:
Security Valuation--Portfolio securities are valued under the amortized cost
method which approximates current market value. Under this method, securities
are valued at cost when purchased and thereafter a constant proportionate
amortization of any discount or premium is recorded until maturity of the
security. Regular review and monitoring of the market-based valuation is
performed in an attempt to avoid dilution or other unfair results to
shareholders. The Company seeks to maintain the net asset value per share of
each portfolio at $1.00.
Repurchase Agreements--The Company may purchase, for each portfolio, money
market instruments from financial institutions, such as banks and non-bank
dealers, subject to the seller's agreement to repurchase them at an agreed upon
date and price. Although the securities subject to repurchase agreements may
bear maturities exceeding thirteen months, the repurchase agreements themselves
will have a maximum maturity of one year or less. The seller will be required on
a daily basis to maintain the value of the securities subject to the agreement
at not less than the repurchase price.
Dividends to Shareholders--Dividends are declared daily and paid monthly.
Dividends payable are recorded on the dividend record date. Net income for
dividend purposes includes interest accrued and discount earned and realized
gains and losses on portfolio securities and is reduced by premium amortized and
expenses accrued.
Federal Taxes--No provision is made for federal taxes as it is the Company's
intention to have each portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from all or substantially all federal income and
excise taxes.
Other--Investment transactions are accounted for on the trade date and the
cost of investments sold is determined by use of the specific identification
method for both financial reporting and income tax purposes. Expenses not
directly attributable to a specific portfolio are allocated between the two
portfolios based on their relative net assets.
C. Under agreements among the Company, PNC Bank, National Association (PNC Bank)
and PNC Institutional Management Corporation (PIMC), an indirect wholly-owned
subsidiary of PNC Bank, PIMC manages the Company's portfolios and maintains
their financial accounts. PNC Bank is the Company's sub-adviser and custodian
and PFPC Inc. (PFPC) is the Company's transfer agent.
13
<PAGE> 14
Notes to Financial Statements (Continued)
(Unaudited)
Provident Distributors, Inc. (PDI) is the Company's Distributor. No
compensation is payable by the Company to PDI for its distribution services.
The Company has entered into a Co-Administration Agreement with PFPC and PDI
for certain administrative services.
In return for their advisory and administrative services, the Company pays
PIMC and the administrators each a fee, computed daily and payable monthly,
based upon an annualized percentage of the average daily net assets of each
portfolio as follows:
TempFund Portfolio:
.175% of the first $1 billion, plus .15% of the next $1 billion, .125% of the
next $1 billion, .10% of the next $1 billion, .095% of the next $1 billion, .09%
of the next $1 billion, .08% of the next $1 billion, .075% of the next $1
billion and .07% of net assets in excess of $8 billion.
TempCash Portfolio:
.175% of the first $1 billion, plus .15% of the next $1 billion, .125% of the
next $1 billion, .10% of the next $1 billion, .095% of the next $1 billion, .09%
of the next $1 billion, .085% of the next $1 billion and .08% of net assets in
excess of $7 billion.
If expenses borne by either portfolio in any fiscal year exceed the applicable
expense limitation imposed by state securities regulations, the administrators
and PIMC will each reimburse the portfolio for one-half of any excess expense up
to the amount of fees payable to it (except where such regulations require
reimbursement regardless of the fees payable to it).
The administrators and PIMC have also agreed to reduce their fees, on an equal
basis, to the extent necessary to ensure that the ordinary operating expenses
(excluding Service Organization fees) of the TempFund portfolio and the TempCash
portfolio do not exceed .27% and .18%, respectively, of the portfolio's average
daily net assets for a period ending January 18, 1996.
For the six months ended March 31, 1995, the administrators and PIMC waived,
on an equal basis, administration and advisory fees payable to them in the
amounts of $417,838 and $2,765,192 for the TempFund portfolio and the TempCash
portfolio, respectively.
Service Organization fees of $538,124 were paid to affiliates of PIMC for the
six months ended March 31, 1995.
D. At March 31, 1995, the Company was authorized to issue 60 billion shares of
common stock, par value $.001 per share, of which 40 billion were classified as
Class B shares, 5 billion shares as Class B--Special Series 1 shares, 5 billion
shares as Class C shares and 10 billion shares as Class C--Special Series 1
shares.
14
<PAGE> 15
Notes to Financial Statements (Concluded)
(Unaudited)
Transactions in shares of each portfolio are summarized as follows:
<TABLE>
<CAPTION>
TEMPFUND PORTFOLIO TEMPCASH PORTFOLIO
------------------------------------- ------------------------------------
YEAR ENDED YEAR ENDED
SIX MONTHS ENDED SEPTEMBER 30, SIX MONTHS ENDED SEPTEMBER 30,
MARCH 31, 1995 1994 MARCH 31, 1995 1994
---------------- ----------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
Sale of shares
<S> <C> <C> <C> <C>
TempFund Class B....... $ 45,547,717,694 $ 103,582,951,088 -- --
TempFund Dollar........ 3,250,062,565 8,015,022,139 -- --
TempCash............... -- -- $ 38,925,658,451 $ 38,330,757,568
TempCash Dollar........ -- -- 993,493,320 1,909,122,664
Shares issued in
reinvestment of dividends
TempFund Class B....... 19,103,796 35,008,506 -- --
TempFund Dollar........ 155,563 296,436 -- --
TempCash............... -- -- 30,332,828 16,989,927
TempCash Dollar........ -- -- 4,455,407 4,334,109
Shares repurchased
TempFund Class B....... (45,557,215,426) (104,663,140,416) -- --
TempFund Dollar........ (3,284,258,229) (8,021,811,244) -- --
TempCash............... -- -- (38,740,069,602) (37,495,414,117)
TempCash Dollar........ -- -- (987,204,330) (1,823,080,454)
---------------- ----------------- ---------------- ----------------
Increase (decrease)
in net assets derived
from capital share
transactions............. $ (24,434,037) $ (1,051,673,491) $ 226,666,074 $ 942,709,697
================ ================= ================ ================
</TABLE>
E. At March 31, 1995, net assets consisted of the following: (Unaudited)
<TABLE>
<CAPTION>
TEMPFUND TEMPCASH
--------------- ---------------
<S> <C> <C>
Paid-in capital.............................................. $ 4,558,484,292 $ 2,955,602,973
Net realized losses.......................................... (45,582) (595,250)
--------------- ---------------
Total net assets............................................. $ 4,558,438,710 $ 2,955,007,723
============== ==============
</TABLE>
15
<PAGE> 16
- - --------------------------------------------------------------------------------
Board of Directors
G. Willing Pepper
Chairman
David R. Wilmerding, Jr.
Vice-Chairman
Philip E. Coldwell
Robert R. Fortune
Rodney D. Johnson
Anthony M. Santomero TEMPFUND
TEMPCASH
Officers
G. Willing Pepper
President
Edward J. Roach
Vice President and Treasurer
W. Bruce McConnel, III
Secretary
Investment Portfolios
Investment Adviser Offered by
PNC Institutional Management Temporary Investment Fund, Inc.
Corporation
400 Bellevue Parkway
Wilmington, DE 19809
Co-Administrators
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
[PROVIDENT INSTITUTIONAL
Distributor FUNDS LOGO]
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
Transfer Agent
PFPC Inc.
P.O. Box 8950
Wilmington, DE 19885-9628
This report is submitted for
the general information of the
shareholders of the Company.
It is not authorized for
distribution to prospective
investors unless accompanied
or preceded by effective
prospectuses for each
portfolio of the Company,
which contain information
concerning the investment
policies of the
portfolios as well as other
pertinent information.
Semi-Annual Report
to Shareholders
PIF-T-001 March 31, 1995
- - --------------------------------------------------------------------------------
