<PAGE> 1
[PROVIDENT
INSTITUTIONAL
FUNDS LOGO]
G. Willing Pepper
Chairman TEMPORARY INVESTMENT FUND, INC.
November 4, 1996
Dear Shareholder:
Enclosed is the Annual Report to Shareholders of Temporary Investment Fund,
Inc. for the year ended September 30, 1996.
The accompanying Investment Adviser's Report provides interesting
commentary on the economy and information on our portfolios' performance. Credit
quality continues to be vital in the management of each portfolio, while service
is paramount in responding to your needs.
If you have any questions regarding TempFund or TempCash, please contact
your Provident Distributors, Inc. account representative or our Client Service
Center at (800) 821-7432. They will also be able to provide information about
other portfolios offered by Provident Institutional Funds.
Your continued confidence in Provident Institutional Funds is greatly
appreciated.
Sincerely,
/s/ G. WILLING PEPPER
G. Willing Pepper
Chairman
------------------------------------------------------------------
400 Bellevue Parkway, Wilmington, DE 19809 Phone:
302-792-2555 Fax: 302-792-5876
<PAGE> 2
TEMPORARY INVESTMENT FUND, INC.
Annual Investment Adviser's Report
In the past year, the twin issues of economic growth and inflation
dominated market movements and investor expectations. In a smaller way, budget
impasses, government shutdowns and a presidential election year also took their
turns as market forces. However, the preoccupation with accelerating business
activity and the belief that this would lead to higher inflation, were the key
issues on the minds of Federal Reserve policymakers and watchers alike.
As the year progressed, economic activity continued to rebound from 1995's
very weak fourth quarter. The Federal Reserve's last easing of monetary policy
occurred in late January 1996. First quarter economic reports showed a strong
rebound that peaked at mid-year at a growth rate of 4.5% in the nation's gross
domestic product. Strong employment reports, which showed solid new job creation
numbers, also contributed to a growing belief that the next Fed move would be to
tighten monetary policy. The July, August and September FOMC meetings were
thought to be particularly likely dates for such a move. However, a funny thing
happened each time a Fed move seemed imminent. A series of weaker than expected
economic reports and good news on inflation would suddenly dash the market's
expectations of higher short-term interest rates. One significant change that
did occur was a shift in the yield curve to a positive slope; that is, yields
were higher as maturities lengthened. For much of the previous year, the yield
curve was inverted based on expectations of continued Fed easing. In 1996, the
situation was reversed.
The change in the yield curve profoundly affected the investment strategy
of the Company's two portfolios, TempFund and TempCash. The average weighted
maturities were lengthened in both portfolios from the 30-40 range to the 50-60
day range. This extension effort, at a time when yields were rising on
longer-dated securities, maintained the portfolios' competitive position versus
both direct money market instruments and other money market funds. Strict
attention to credit quality was also maintained during the year. Both portfolios
continued to invest only in First Tier securities and TempFund procured a AAA
rating from Standard & Poor's in June. With its AAA rating, TempFund is the
largest rated, First Tier Institutions-Only fund, as reported in IBC/Donoghue's.
For the month of September, TempFund's assets averaged $7.1 billion versus $6.0
billion a year ago, and TempCash averaged $3.3 billion versus $2.5 billion in
September 1995. TempFund's monthly yield in September 1996 was 5.29%, while
TempCash's was 5.32%. For the twelve months ended September, TempFund's return
was 5.55% and TempCash's was 5.56%.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
TEMPFUND PORTFOLIO
Temporary Investment Fund, Inc.
Statement of Net Assets
September 30, 1996
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--14.3%
BANK NOTES
Bank of America National Trust & Savings
5.54%............. 10/15/96 $150,000 $ 149,999,951
Fifth Third Bank
5.37%............. 11/25/96 150,000 150,000,000
First National Bank of Chicago
5.51%............. 11/07/96 150,000 149,998,494
First Union National Bank of North Carolina
5.62%............. 03/18/97 50,000 50,000,000
J.P. Morgan & Co.
5.45%............. 11/13/96 90,000 90,000,000
Morgan Guaranty Trust Co. of New York
5.95%............. 06/06/97 50,000 49,983,693
NBD Bank, N.A.
5.37%............. 11/18/96 50,000 50,000,000
5.40%............. 12/16/96 150,000 150,000,000
--------------
Total Certificates of Deposit
(Cost $839,982,138)................. 839,982,138
--------------
COMMERCIAL PAPER--39.5%
BANKS--7.1%
Banc One Corp.
5.28%............. 11/18/96 25,000 24,824,000
5.28%............. 11/19/96 25,000 24,820,333
5.30%............. 11/25/96 70,000 69,433,194
Norwest Financial, Inc.
5.30%............. 12/11/96 50,000 49,477,361
J.P. Morgan & Co.
5.31%............. 12/16/96 150,000 148,318,500
Republic New York Corp.
5.30%............. 12/10/96 100,000 98,969,444
--------------
415,842,832
--------------
BEVERAGES--0.8%
Pepsico, Inc.
5.20%............. 12/03/96 50,000 49,545,000
--------------
CIGARETTES--2.1%
American Brands, Inc.
5.27%............. 10/11/96 50,000 49,926,806
5.30%............. 11/07/96 50,000 49,727,639
5.27%............. 12/06/96 25,000 24,758,458
--------------
124,412,903
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT--1.2%
General Electric Co.
5.31%............. 12/30/96 70,000 69,070,750
--------------
FINANCE LESSORS--2.1%
General Electric Capital Corp.
5.47%............. 10/29/96 125,000 124,468,194
--------------
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
LIFE INSURANCE--1.9%
Metlife Funding, Inc.
5.30%............. 11/22/96 $ 63,816 $ 63,327,453
5.30%............. 11/26/96 50,000 49,587,778
--------------
112,915,231
--------------
MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS--0.8%
National Rural Utilities Coop. Finance Corp.
5.34%............. 12/17/96 45,000 44,486,025
--------------
PERSONAL CREDIT INSTITUTIONS--5.1%
Associates Corp. of North America
5.44%............. 10/28/96 50,000 49,796,000
5.41%............. 11/14/96 100,000 99,338,778
5.31%............. 12/17/96 75,000 74,148,188
5.31%............. 12/18/96 75,000 74,137,125
--------------
297,420,091
--------------
PHARMACEUTICAL PREPARATIONS--2.7%
Eli Lilly & Co.
5.30%............. 12/12/96 50,000 49,470,000
5.30%............. 12/18/96 50,000 49,425,833
5.30%............. 12/23/96 35,000 34,572,319
Schering-Plough Corp.
5.453%............ 12/02/96 26,000 25,755,827
--------------
159,223,979
--------------
SECURITY BROKERS & DEALERS--7.9%
Merrill Lynch & Co.
5.52%............. 10/08/96 150,000 149,839,000
5.50%............. 11/13/96 150,000 149,014,583
Morgan Stanley Group, Inc.
5.29%............. 11/14/96 50,000 49,676,722
5.48%............. 12/09/96 50,000 49,474,833
5.31%............. 12/13/96 70,000 69,246,275
--------------
467,251,413
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--7.4%
Asset Securitization Coop. Corp.
5.34%............. 12/11/96 71,000 70,252,252
5.33%............. 12/12/96 115,000 113,774,100
Ciesco L.P.
5.35%............. 12/12/96 25,000 24,732,500
Corporate Asset Funding, Inc.
5.35%............. 12/06/96 40,000 39,607,667
CXC, Inc.
5.36%............. 11/06/96 30,000 29,839,200
5.34%............. 11/12/96 25,000 24,844,250
5.35%............. 11/26/96 54,800 54,343,942
5.34%............. 12/05/96 51,800 51,300,562
5.35%............. 12/17/96 25,000 24,713,924
--------------
433,408,397
--------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
TEMPFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
TELEPHONE COMMUNICATIONS--0.4%
BellSouth Capital Funding Corp.
5.29%............. 11/22/96 $ 25,000 $ 24,808,972
--------------
Total Commercial Paper
(Cost $2,322,853,787)............... 2,322,853,787
--------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS--5.5%
Federal National Mortgage Association
5.52%............. 10/01/96 100,000 100,000,000
5.57%............. 10/08/96 70,000 69,998,859
5.40%............. 10/17/96 100,000 99,957,305
5.64%............. 09/03/97 50,000 49,834,097
--------------
Total U.S. Government Agency
Obligations
(Cost $319,790,261)................. 319,790,261
--------------
UNITED STATES TREASURY OBLIGATIONS--3.4%
U.S. Treasury Notes
7.50%............. 01/31/97 50,000 50,387,900
6.875%............ 02/28/97 150,000 151,074,776
--------------
Total U.S. Treasury Obligations
(Cost $201,462,676)................. 201,462,676
--------------
VARIABLE RATE OBLIGATIONS+--15.9%
BANKS--6.2%
Bank One Milwaukee
5.24%............. 10/01/96 159,000 158,958,627
First Bank System of Minneapolis, Minnesota
5.4375%........... 10/10/96 80,000 80,000,000
Norwest Corp.
5.6125%........... 10/15/96 25,000 25,000,999
5.4375%........... 10/28/96 100,000 100,000,000
--------------
363,959,626
--------------
PERSONAL CREDIT INSTITUTIONS--0.8%
Ford Motor Credit Corp.
5.7976%........... 10/07/96 45,600 45,627,327
--------------
SECURITY BROKERS & DEALERS--8.9%
Bear Stearns Companies, Inc.
5.6328%........... 11/05/96 125,000 125,000,000
5.50%............. 11/21/96 100,000 100,000,000
C.S. First Boston Group, Inc.
5.605%............ 10/24/96 75,000 75,000,000
Goldman Sachs Group, L.P.
5.71%............. 11/06/96 160,000 160,000,000
Morgan Stanley Group, Inc.
5.86%............. 10/22/96 64,000 64,044,449
--------------
524,044,449
--------------
Total Variable Rate Obligations
(Cost $933,631,402)................. 933,631,402
--------------
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
MEDIUM TERM NOTES--2.1%
SECURITY BROKERS & DEALERS--2.1%
Goldman Sachs Group, L.P.
5.4375%........... 10/07/96 $100,000 $ 100,000,000
Merrill Lynch & Co.
5.92%............. 09/12/97 25,000 25,000,000
--------------
Total Medium Term Notes
(Cost $125,000,000)................. 125,000,000
--------------
REPURCHASE AGREEMENTS--19.4%
Goldman Sachs & Co.
5.36%............. 10/01/96 300,000 300,000,000
(Agreement dated 09/10/96 to
be repurchased at
$300,938,000
collateralized by
$246,917,604 Federal
National Mortgage
Association Notes 0.00% to
10.03% due 06/25/07 to
06/01/27 and $201,216,956
Federal Home Loan Mortgage
Corp. Notes 5.00% to 8.00%
due 06/01/98 to 02/01/26.
Market value of collateral
is $309,000,001.)
Lehman Government Securities, Inc.
5.875%............ 10/01/96 92,100 92,100,000
(Agreement dated 9/30/96 to
be repurchased at
$92,115,030,
collateralized by
$360,404,000 U.S. Treasury
Strips due 8/15/15 to
11/15/15. Market value of
collateral is
$93,942,128.)
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
TEMPFUND PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Morgan Stanley & Co.
5.835%............ 10/01/96 $ 64,000 $ 64,000,000
(Agreement dated 9/30/96 to
be repurchased at
$64,010,373,
collateralized by
$92,385,000 U.S. Treasury
Strips due 5/15/97 to
8/15/23 and $16,375,000
U.S. Treasury Note 8.875%
due 11/15/98, Market value
of collateral is
$65,302,905.)
5.85%............. 10/01/96 32,000 32,000,000
(Agreement dated 9/30/96 to
be repurchased at
$32,005,200,
collateralized by
$72,629,689 Federal Home
Loan Mortgage Corp. 6.059%
to 7.45% due 11/01/23 to
12/01/34 and $1,485,000
Federal National Mortgage
Association 8.00% due
9/01/26. Market value of
collateral is
$32,874,740.)
5.915%............ 10/01/96 650,000 650,000,000
(Agreement dated 9/30/96 to
be repurchased at
$650,106,799,
collateralized by
$1,695,000 Federal Farm
Credit Bank Discount Note
due 10/01/96, $1,500,000
Federal Home Loan Bank
Discount Note Due
10/01/96, $185,855,000
Federal Home Loan Mortgage
Corp. 0.00% to 8.00% due
10/08/96 to 05/03/11,
$474,510,000 Federal
National Mortgage
Association 0.00% to 8.20%
due 10/07/96 to 01/12/06,
$790,000 U.S. Treasury
Bill due 12/19/96 and
$1,257,000 U.S. Treasure
Bond 7.875% due 02/15/21.
Market value of collateral
is $667,598,245.)
--------------
Total Repurchase Agreements
(Cost $1,138,100,000)............... 1,138,100,000
--------------
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $5,880,820,264*)........ 100.1% $5,880,820,264
LIABILITIES IN EXCESS OF OTHER
ASSETS........................ (0.1%) (3,697,762)
-------- --------------
NET ASSETS (Equivalent to $1.00
per share based on
5,714,976,994 TempFund shares
and 162,096,379 TempFund
Dollar shares, $.001 par value
common stock outstanding)..... 100.0% $5,877,122,502
===== ==============
NET ASSET VALUE, offering and redemption
price per share
($5,877,122,502 / 5,877,073,373)........ $1.00
=====
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of September 30, 1996
and the maturity date shown is the longer of the next interest readjustment
date or the date the principal amount can be recovered upon demand.
<TABLE>
<CAPTION>
---------------------------------------------------------
TEMPFUND/TEMPFUND DOLLAR
Maturity Information
September 30, 1996
(Unaudited)
PERCENTAGE
MATURITY PAR OF
PERIOD (000) PORTFOLIO
------------- -------------- ----------
<S> <C> <C>
1- 7 days $1,542,700,000 26.2%
8- 14 days 350,000,000 5.9%
15- 30 days 739,000,000 12.5%
31- 60 days 1,543,616,000 26.2%
61- 90 days 1,328,800,000 22.5%
91-120 days 70,000,000 1.2%
121-150 days 50,000,000 0.8%
Over 150 days 275,000,000 4.7%
-------------- -------
$5,899,116,000 100.0%
============== =======
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
September 30, 1996
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
BANKERS' ACCEPTANCES--0.8%
Royal Bank of Canada
5.34%............. 10/15/96 $ 20,000 $ 19,958,467
--------------
Total Bankers' Acceptances
(Cost $19,958,467).................. 19,958,467
--------------
CERTIFICATES OF DEPOSIT--19.0%
BANK NOTES--5.2%
Bank of New York
5.63%............. 03/03/97 60,000 59,978,266
Harris Trust & Savings Bank
5.50%............. 03/26/97 62,000 61,971,317
--------------
121,949,583
--------------
DOMESTIC CERTIFICATES OF DEPOSIT--4.7%
Comerica Bank--Detroit
5.77%............. 08/13/97 12,000 11,994,264
Mellon Bank, N.A.
6.03%............. 09/23/97 50,000 50,059,914
Morgan Guaranty Trust Co. of New York
5.73%............. 08/12/97 50,000 49,969,918
--------------
112,024,096
--------------
YANKEE CERTIFICATES OF DEPOSIT--9.1%
Bank of Tokyo--Mitsubishi
5.69%............. 11/04/96 50,000 50,000,000
5.51%............. 12/31/96 50,000 50,000,000
Sanwa Bank Ltd. Japan
5.43%............. 10/15/96 90,000 89,997,008
Societe Generale
5.78%............. 08/20/97 25,000 24,995,763
--------------
214,992,771
--------------
Total Certificates of Deposit
(Cost $448,966,450)................. 448,966,450
--------------
COMMERCIAL PAPER--32.2%
ASSET BACKED SECURITIES--5.8%
Sigma Finance, Inc.
5.50%............. 10/11/96 30,000 29,954,167
5.56%............. 01/15/97 22,694 22,322,474
5.59%............. 01/15/97 25,000 24,588,514
5.43%............. 02/18/97 35,000 34,260,917
5.58%............. 03/17/97 25,500 24,839,933
--------------
135,966,005
--------------
BANKS--4.6%
Swedbank, Inc.
5.35%............. 10/11/96 60,000 59,910,833
5.37%............. 12/31/96 50,000 49,321,292
--------------
109,232,125
--------------
CIGARETTES--1.1%
American Brands, Inc.
5.27%............. 10/11/96 25,000 24,963,403
--------------
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
GLASS CONTAINERS--0.8%
Newell Co.
5.35%............. 10/11/96 $ 20,000 $ 19,970,278
--------------
HOUSEHOLD AUDIO & VIDEO EQUIPMENT--0.4%
Toshiba International Finance (UK) PLC
5.38%............. 12/02/96 10,500 10,402,712
--------------
PERSONAL CREDIT INSTITUTIONS--8.5%
Associates Corp. of North America
5.44%............. 10/28/96 25,000 24,898,000
BMW US Capital Corp.
5.35%............. 11/25/96 54,019 53,577,470
General Motors Acceptance Corp.
5.48%............. 12/03/96 25,000 24,760,250
5.61%............. 01/24/97 50,000 49,103,958
5.48%............. 02/14/97 24,000 23,503,147
5.70%............. 03/11/97 25,000 24,362,708
--------------
200,205,533
--------------
SECURITY BROKERS & DEALERS--2.1%
Nomura Holding America, Inc.
5.50%............. 10/11/96 25,000 24,961,806
5.50%............. 10/15/96 25,000 24,946,528
--------------
49,908,334
--------------
SERVICES--MISCELLANEOUS AMUSEMENT--1.0%
Walt Disney Corp.
5.22%............. 03/12/97 25,000 24,412,750
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--5.8%
Caterpillar Financial Service Corp.
5.64%............. 01/16/97 18,000 17,698,260
5.64%............. 01/17/97 4,500 4,423,860
CXC, Inc.
5.30%............. 10/11/96 25,000 24,963,194
5.37%............. 10/22/96 38,900 38,778,146
Sears Roebuck Acceptance Corp.
5.58%............. 01/14/97 50,000 49,186,250
--------------
135,049,710
--------------
WHOLESALE MISCELLANEOUS DURABLE GOODS--2.1%
Mitsubishi International Corp.
5.43%............. 12/12/96 50,000 49,457,000
--------------
Total Commercial Paper
(Cost $759,567,850)................. 759,567,850
--------------
UNITED STATES TREASURY OBLIGATIONS--2.1%
U.S. Treasury Note
6.875%............ 02/28/97 50,000 50,347,342
--------------
Total U.S. Treasury Obligations
(Cost $50,347,342).................. 50,347,342
--------------
UNITED STATES GOVERNMENT AGENCY
OBLIGATIONS--13.6%
Federal Farm Credit Bank+
5.22%............. 10/02/96 50,000 49,990,794
--------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
TEMPCASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
UNITED STATES GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
Federal National Mortgage Association+
5.52%............. 10/01/96 $ 75,000 $ 75,000,000
5.57%............. 10/08/96 25,000 24,999,592
--------------
99,999,592
--------------
Student Loan Marketing Association
Variable Rate Notes+
5.49%............. 10/01/96 50,000 50,004,561
5.51%............. 10/01/96 6,000 6,001,013
5.53%............. 10/01/96 44,000 43,997,042
5.67%............. 10/01/96 13,950 13,978,771
5.745%............ 10/01/96 56,000 56,047,140
--------------
170,028,527
--------------
Total U.S. Government
Agency Obligations
(Cost $320,018,913)................. 320,018,913
--------------
VARIABLE RATE OBLIGATIONS+--18.8%
BANKS--2.1%
Fleet National Bank, N.A.
5.55%............. 10/01/96 50,000 50,000,000
--------------
INSURANCE (LIFE)--2.1%
General American Life Insurance Co.
5.61%............. 10/01/96 50,000 50,000,000
--------------
SECURITY BROKERS & DEALERS--12.5%
Bear Stearns Companies, Inc.
5.6328%........... 11/04/96 50,000 50,000,000
C.S. First Boston, Inc.
5.38%............. 10/01/96 50,000 50,000,000
5.6128%........... 11/03/96 70,000 70,000,000
Lehman Brothers Holdings, Inc.
5.7562%........... 12/06/96 125,000 125,000,000
--------------
295,000,000
--------------
TRANSPORTATION SERVICES--2.1%
Peoples Security Life
5.62%............. 10/01/96 50,000 50,000,000
--------------
Total Variable Rate Obligations
(Cost $445,000,000)................. 445,000,000
--------------
MEDIUM TERM NOTES--2.1%
SECURITY BROKERS & DEALERS
Merrill Lynch & Co.
5.335%............ 03/05/97 25,000 25,000,000
5.88%............. 05/14/97 25,000 24,997,842
--------------
Total Medium Term Notes
(Cost $49,997,842).................. 49,997,842
--------------
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--11.4%
Donaldson, Lufkin & Jenrette
6.15%............. 10/01/96 $100,000 $ 100,000,000
(Agreement dated 09/30/96 to
be repurchased at
$100,017,083,
collateralized by
$104,617,608 Federal Home
Loan Mortgage Corp. 0.00%
to 7.00% due 09/15/98 to
09/15/26 and by
$37,082,000 Federal
National Mortgage
Association due 12/25/04
to 03/25/24. Market value
of collateral is
$103,004,597.)
Lehman Government Securities, Inc.
5.75%............. 10/01/96 100,000 100,000,000
(Agreement dated 09/30/96 to
be repurchased at
$100,015,972,
collateralized by
$415,498,000 U.S. Treasury
Strips due 11/15/15 to
05/15/17. Market value of
collateral is
$102,000,408.)
Morgan Stanley & Co.
5.85%............. 10/01/96 50,000 50,000,000
(Agreement dated 09/30/96 to
be repurchased at
$50,008,125,
collateralized by
$79,630,318 Federal Home
Loan Mortgage Corp. 6.055%
to 7.912% due 02/01/23 to
12/01/34. Market value of
collateral is
$51,498,598.)
PaineWebber, Inc.
5.85%............. 10/01/96 18,400 18,400,000
(Agreement dated 09/30/96 to
be repurchased at
$18,402,990,
collateralized by
$17,865,000 U.S. Treasury
Notes 6.50% to 8.00% due
05/15/01 to 05/31/01.
Market value of collateral
is $18,768,138.)
--------------
Total Repurchase Agreements
(Cost $268,400,000)................. 268,400,000
--------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
TEMPCASH PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,362,256,864)........ 100.0% $2,362,256,864
OTHER ASSETS IN EXCESS OF
LIABILITIES.................. 0.0% 899,222
-------- --------------
NET ASSETS (Equivalent to $1.00
per share based on
1,835,796,673 TempCash shares
and 527,942,507 TempCash
Dollar shares,
$.001 par value common
stock outstanding)........... 100.0% $2,363,156,086
====== ==============
NET ASSET VALUE, offering and redemption
price per share
($2,363,156,086 / 2,363,739,180)........ $1.00
=====
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of September 30, 1996
and the maturity date shown is the longer of the next interest readjustment
date or the date the principal amount can be recovered upon demand.
<TABLE>
---------------------------------------------------------
TEMPCASH/TEMPCASH DOLLAR
Maturity Information
September 30, 1996
(Unaudited)
<CAPTION>
PERCENTAGE
MATURITY PAR OF
PERIOD (000) PORTFOLIO
------------- -------------- ----------
<S> <C> <C>
1- 7 days $ 763,350,000 32.2%
8- 14 days 210,000,000 8.9%
15- 30 days 198,900,000 8.4%
31- 60 days 224,019,000 9.4%
61- 90 days 210,500,000 8.9%
91-120 days 270,194,000 11.4%
121-150 days 59,000,000 2.5%
Over 150 days 434,500,000 18.3%
-------------- -------
$2,370,463,000 100.0%
============== =======
Average Weighted Maturity--67 days
---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
TEMPORARY INVESTMENT FUND, INC.
Statements of Operations
Year ended September 30, 1996
<TABLE>
<CAPTION>
TEMPFUND TEMPCASH
PORTFOLIO PORTFOLIO
------------ ------------
<S> <C> <C>
Interest income............................................................... $382,897,873 $158,201,793
------------ ------------
Expenses:
Investment advisory fee................................................... 8,019,787 4,277,191
Administration fee........................................................ 8,019,787 4,277,191
Directors' fees and officer's salary...................................... 112,068 27,892
Transfer agent fee........................................................ 549,482 123,968
Custodian fee............................................................. 678,856 353,394
Shareholder computer access program....................................... 315,996 104,403
Legal and audit........................................................... 74,501 50,703
Registration fees and expenses............................................ 20,045 20,004
Other..................................................................... 119,611 89,622
------------ ------------
17,910,133 9,324,368
Less fees waived.......................................................... (5,530,563) (4,212,692)
------------ ------------
12,379,570 5,111,676
Service Organization fees................................................. 307,468 1,226,772
------------ ------------
Total expenses....................................................... 12,687,038 6,338,448
------------ ------------
Net investment income..................................................... 370,210,835 151,863,345
Net realized gain (loss) on investments....................................... 94,556 (64,645)
------------ ------------
Net increase in net assets resulting from operations...................... $370,305,391 $151,798,700
============ ============
</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
------------------------------------ ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1996 1995
---------------- ---------------- ---------------- ----------------
Increase (decrease) in net assets:
<S> <C> <C> <C> <C>
Operations:
Net investment income............ $ 370,210,835 $ 309,727,790 $ 151,863,345 $ 219,607,584
Net realized gain (loss) on
investments.................... 94,556 (45,427) (64,645) 13,766
---------------- ---------------- ---------------- ----------------
Net increase in net assets
resulting from operations.... 370,305,391 309,682,363 151,798,700 219,621,350
---------------- ---------------- ---------------- ----------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
TempFund shares................ (363,902,699) (305,489,546) -- --
TempFund Dollar shares......... (6,308,136) (4,238,244) -- --
TempCash shares................ -- -- (126,493,796) (195,367,688)
TempCash Dollar shares......... -- -- (25,369,549) (24,239,896)
Distributions to shareholders
from net realized gain:
TempFund shares................ -- (37,842) -- --
TempFund Dollar shares......... -- (673) -- --
---------------- ---------------- ---------------- ----------------
Total distributions to
shareholders............... (370,210,835) (309,766,305) (151,863,345) (219,607,584)
---------------- ---------------- ---------------- ----------------
Capital share transactions
(at $1 per share):
Sale of shares................... 104,002,736,713 86,630,484,234 48,006,882,183 73,114,313,267
Shares issued in reinvestment of
dividends...................... 90,326,001 47,211,646 59,462,722 69,643,235
Shares repurchased............... (103,649,208,875) (85,827,394,675) (47,473,446,398) (74,142,052,727)
---------------- ---------------- ---------------- ----------------
Increase (decrease) in net
assets derived
from capital share
transactions............... 443,853,839 850,301,205 592,898,507 (958,096,225)
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in
net assets................. 443,948,395 850,217,263 592,833,862 (958,082,459)
Net assets:
Beginning of year.................... 5,433,174,107 4,582,956,844 1,770,322,224 2,728,404,683
---------------- ---------------- ---------------- ----------------
End of year.......................... $ 5,877,122,502 $ 5,433,174,107 $ 2,363,156,086 $ 1,770,322,224
================ ================ ================ ================
</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 Year)
<TABLE>
<CAPTION>
TEMPFUND SHARES
-----------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------------------------
1996 1995 1994 1993 1992
-------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------
Income From Investment Operations
Net Investment Income................................... .0541 .0567 .0360 .0310 .0424
Net Realized Gains on Investments....................... -- -- -- -- .0015
-------- ------ ------ ------ ------
Total From Investment Operations........................ .0541 .0567 .0360 .0310 .0439
-------- ------ ------ ------ ------
Less Distributions
Dividends (from net investment income).................. (.0541) (.0567) (.0360) (.0310) (.0424)
Distributions (from capital gains)...................... -- -- -- -- (.0015)
-------- ------ ------ ------ ------
Total Distributions..................................... (.0541) (.0567) (.0360) (.0310) (.0439)
-------- ------ ------ ------ ------
Net Asset Value, End of Year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ======
Total Return............................................ 5.55% 5.82% 3.66% 3.14% 4.48%
Ratios/Supplemental Data
Net Assets, End of Year (000's)....................... $5,715,004 $5,351,346 $4,480,851 $5,522,056 $9,227,572
Ratio of Expenses to Average Daily Net Assets......... .18%(1) .24%(1) .25%(1) .21% .21%
Ratio of Net Investment Income to
Average Daily Net Assets............................ 5.41% 5.67% 3.60% 3.10% 4.13%
</TABLE>
<TABLE>
<CAPTION>
TEMPFUND DOLLAR SHARES
-----------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------------------------
1996 1995 1994 1993 1992
-------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------ ------ ------ ------
Income From Investment Operations
Net Investment Income................................... .0516 .0542 .0335 .0285 .0399
Net Realized Gains on Investments....................... -- -- -- -- .0015
-------- ------ ------ ------ ------
Total From Investment Operations........................ .0516 .0542 .0335 .0285 .0414
-------- ------ ------ ------ ------
Less Distributions
Dividends (from net investment income).................. (.0516) (.0542) (.0335) (.0285) (.0399)
Distributions (from capital gains)...................... -- -- -- -- (.0015)
-------- ------ ------ ------ ------
Total Distributions..................................... (.0516) (.0542) (.0335) (.0285) (.0414)
-------- ------ ------ ------ ------
Net Asset Value, End of Year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ======
Total Return............................................ 5.30% 5.57% 3.41% 2.89% 4.23%
Ratios/Supplemental Data
Net Assets, End of Year (000's)....................... $ 162,119 $ 81,828 $ 102,105 $ 112,695 $ 217,230
Ratio of Expenses to Average Daily Net Assets......... .43%(1) .49%(1) .50%(1) .46% .46%
Ratio of Net Investment Income to
Average Daily Net Assets............................ 5.16% 5.42% 3.35% 2.85% 3.88%
</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
.26% for the year ended September 30, 1996 and .27% for the years ended
September 30, 1995 and 1994, respectively. For TempFund Dollar Shares the
ratio of expenses to average daily net assets would have been .51% for the
year ended September 30, 1996 and .52% for the years ended September 30,
1995 and 1994, respectively.
See accompanying notes to financial statements.
11
<PAGE> 12
TEMPORARY INVESTMENT FUND, INC.
Financial Highlights
(For a Share of the Fund Outstanding Throughout Each Year)
<TABLE>
<CAPTION>
TEMPCASH SHARES
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income....................................... .0542 .0575 .0370 .0310 .0424
Net Realized Gains on Investments........................... -- -- -- -- .0008
------ ------ ------ ------ ------
Total From Investment Operations............................ .0542 .0575 .0370 .0310 .0432
------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)...................... (.0542) (.0575) (.0370) (.0310) (.0424)
Distributions (from capital gains).......................... -- -- -- -- (.0008)
------ ------ ------ ------ ------
Total Distributions......................................... .0542 .0575 (.0370) (.0310) (.0432)
------ ------ ------ ------ ------
Net Asset Value, End of Year.................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return................................................ 5.56% 5.90% 3.76% 3.14% 4.41%
Ratios/Supplemental Data
Net Assets, End of Year (000's)........................... $1,835,326 $1,316,166 $2,330,456 $1,479,035 $1,492,959
Ratio of Expenses to Average Daily Net Assets............. .18%(1) .16%(1) .16%(1) .19%(1) .20%(1)
Ratio of Net Investment Income to
Average Daily Net Assets................................ 5.42% 5.75% 3.70% 3.10% 4.14%
</TABLE>
<TABLE>
<CAPTION>
TEMPCASH DOLLAR SHARES
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income....................................... .0517 .0550 .0345 .0285 .0399
Net Realized Gains on Investments........................... -- -- -- -- .0008
------ ------ ------ ------ ------
Total From Investment Operations............................ .0517 .0550 .0345 .0285 .0407
------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)...................... (.0517) (.0550) (.0345) (.0285) (.0399)
Distributions (from capital gains).......................... -- -- -- -- (.0008)
------ ------ ------ ------ ------
Total Distributions......................................... (.0517) (.0550) (.0345) (.0285) (.0407)
------ ------ ------ ------ ------
Net Asset Value, End of Year.................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return................................................ 5.31% 5.65% 3.51% 2.89% 4.16%
Ratios/Supplemental Data
Net Assets, End of Year (000's)........................... $ 527,830 $ 454,156 $ 397,948 $ 307,239 $ 408,900
Ratio of Expenses to Average Daily Net Assets............. .43%(1) .41%(1) .41%(1) .44%(1) .45%(1)
Ratio of Net Investment Income to
Average Daily Net Assets................................ 5.17% 5.50% 3.45% 2.85% 3.89%
</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
.33%, .30%, .33%, .37% and .33% for the years ended September 30, 1996,
1995, 1994, 1993 and 1992, respectively. For TempCash Dollar Shares, the
ratio of expenses to average daily net assets would have been .58%, .55%,
.58%, .62% and 58% for the years ended September 30, 1996, 1995, 1994, 1993
and 1992, respectively.
See accompanying notes to financial statements.
12
<PAGE> 13
Notes to Financial Statements
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 on portfolio
securities and is reduced by premium amortized and expenses accrued. Net
realized capital gains, if any, will be distributed at least annually.
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.
Use of Estimates--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that could affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
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
13
<PAGE> 14
Notes to Financial Statements (Continued)
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.
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 .18% of each portfolio's average daily net assets.
For the year ended September 30, 1996, the administrators and PIMC waived, on
an equal basis, administration and advisory fees payable to them in the amounts
of $5,530,563 and $4,212,692 for the TempFund portfolio and the TempCash
portfolio, respectively.
Service Organization fees of $543,627 were paid to affiliates of PIMC for the
year ended September 30, 1996.
D. At September 30, 1996, 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)
Transactions in shares of each portfolio are summarized as follows:
<TABLE>
<CAPTION>
TEMPFUND PORTFOLIO TEMPCASH PORTFOLIO
------------------------------------ ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1996 1995
---------------- ---------------- ---------------- ----------------
Sale of shares
<S> <C> <C> <C> <C>
TempFund Class B........ $101,643,428,057 $ 81,711,616,890 -- --
TempFund Dollar......... 2,359,308,656 4,918,867,344 -- --
TempCash................ -- -- $ 45,784,802,510 $ 71,241,203,865
TempCash Dollar......... -- -- 2,222,079,673 1,873,109,402
Shares issued in
reinvestment of dividends
TempFund Class B........ 89,775,638 47,014,339 -- --
TempFund Dollar......... 550,363 197,307 -- --
TempCash................ -- -- 47,148,399 59,750,637
TempCash Dollar......... -- -- 12,314,323 9,892,598
Shares repurchased
TempFund Class B........ (101,369,639,394) (80,888,032,287) -- --
TempFund Dollar......... (2,279,569,481) (4,939,362,388) -- --
TempCash................ -- -- (45,312,737,466) (72,315,282,564)
TempCash Dollar......... -- -- (2,160,708,932) (1,826,770,163)
---------------- ---------------- ---------------- ----------------
Increase (decrease)
in net assets derived from
capital share
transactions.............. $ 443,853,839 $ 850,301,205 $ 592,898,507 $ (958,096,225)
================ ================ ================ ================
</TABLE>
E. At September 30, 1996, a capital loss carryover of $583,094 in the TempCash
portfolio were available to offset future realized gains of which $518,450
expires in 2002 and $64,644 expires in 2004.
F. At September 30, 1996, net assets consisted of the following:
<TABLE>
<CAPTION>
TEMPFUND TEMPCASH
--------------- ---------------
<S> <C> <C>
Paid-in capital.............................................. $ 5,877,073,373 $ 2,363,739,180
Accumulated net realized gains (losses)...................... 49,129 (583,094)
--------------- ---------------
Total net assets............................................. $ 5,877,122,502 $ 2,363,156,086
============== ==============
</TABLE>
15
<PAGE> 16
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Directors of
Temporary Investment Fund, Inc.:
We have audited the accompanying statements of net assets of Temporary
Investment Fund, Inc. (the "Company"), comprising, respectively, the TempFund
and TempCash portfolios, as of September 30, 1996, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the years presented. These financial statements and financial highlights
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
September 30, 1996 by correspondence with custodians and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios comprising Temporary Investment Fund, Inc. as
of September 30, 1996, the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended, and the financial highlights for each of the years presented, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
November 1, 1996
16
<PAGE> 17
Board of Directors
G. Willing Pepper
Chairman
G. Nicholas Beckwith, III
Philip E. Coldwell
Robert R. Fortune
Jerrold B. Harris
Rodney D. Johnson
Officers
G. Willing Pepper
President
Edward J. Roach
Vice President and
Treasurer
W. Bruce McConnel, III
Secretary
Investment Adviser
PNC Institutional Management
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
Distributor
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.
PIF-A-001
TEMPFUND
TEMPCASH
Investment Portfolios
Offered by
Temporary Investment Fund, Inc.
[PROVIDENT INSTITUTIONAL
FUNDS LOGO]
Annual Report
to Shareholders
September 30, 1996
