<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.
April 28, 1997
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of
Temporary Investment Fund, Inc. for the period ended March 31, 1997.
The accompanying Investment Adviser's Report provides information on recent
activity in the money markets and in our Funds. I urge you to read the report.
Provident Institutional Funds offer a broad range of high quality taxable
and tax-exempt Money Market Funds to meet the varied needs of our investors.
Please feel free to contact your account representative or our Client Service
Center at (800) 821-7432 to discuss your investment options.
Thank you for your continued confidence in 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
A strong 3.9% gain in fourth quarter gross domestic product set the stage
for this year's first quarter and the hotly debated issue over Federal Reserve
monetary policy. Was the nation's business activity growing at a rate that would
produce inflationary pressures, even though there was no current evidence to
suggest that inflation was a problem? This was the key question for both
monetary policy makers and Fed watchers. Chairman Greenspan fanned the fire of
market expectations on several occasions in the first quarter, by repeating his
December proclamation that market valuations and expectations were too high; as
if to signal the Fed's intention to raise short-term interest rates. At the
first FOMC meeting of 1997 in January, the Fed voted to keep monetary policy
unchanged, citing the fact that inflation was quiescent, and the economy was
likely to slow from the 1996 fourth quarter's strong pace. However, subsequent
economic reports released in February and March continued to show healthy gains
in employment and wages and this proved sufficient to cause the Fed, on March
25, to raise the federal funds rate a quarter of one percent to 5.50%. This
marked the first change in monetary policy in over a year and precipitated a
strong sell-off in both the stock and bond markets as the first quarter ended.
The market's expectations of a more restrictive monetary policy continued
to evidence itself in a positively sloped yield curve for maturities out to one
year. As in the second half of last year, the Fund's two portfolios, TempFund
and TempCash, maintained moderately extended average weighted maturities in the
50-60 day range. By taking advantage of yield opportunities in the three-month
and one-year sectors, the portfolios were able to maintain their very
competitive positions versus overnight alternatives for most of the last two
quarters. This performance attracted new assets into both portfolios. For the
month of March, TempFund's assets averaged $8.58 billion versus $7.1 billion
last September and TempCash averaged $3.59 billion versus $3.3 billion. The
portfolios' yields also moved higher at the end of the first quarter, reflecting
the Fed's action on short-term interest rates. TempFund's monthly yield for
March was 5.33% versus 5.29% last September, while TempCash's was 5.33% versus
5.32%.
In addition to the AAA rating from Standard & Poor's, procured last year,
TempFund also increased its competitive position by extending the hours
available to shareholders for purchases and redemptions. In November, the
cut-off time was moved to 5:30 p.m. Eastern time, to accommodate shareholders
with late day cash needs. We hope these changes, along with our constant
attention to credit quality, and service continue to meet your needs for
institutional liquidity products.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
TEMPFUND PORTFOLIO
Temporary Investment Fund, Inc.
Statement of Net Assets
March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--6.6%
BANK NOTES--5.0%
Bank of America Illinois
5.48%............. 04/22/97 $ 80,000 $ 80,000,000
5.42%............. 06/04/97 50,000 50,000,877
5.41%............. 06/11/97 50,000 50,000,000
5.87%............. 03/04/98 50,000 49,986,751
5.97%............. 03/20/98 50,000 49,976,789
First National Bank of Chicago
5.80%............. 05/12/97 70,000 70,006,283
LaSalle National Bank
5.37%............. 04/07/97 40,000 40,000,000
5.96%............. 03/16/98 30,000 30,000,000
Morgan Guaranty Trust Co. of New York
5.95%............. 06/06/97 50,000 49,995,660
--------------
469,966,360
--------------
DOMESTIC CERTIFICATES OF DEPOSIT--0.6%
Morgan Guaranty Trust Co. of New York
5.92%............. 03/19/98 50,000 49,986,170
--------------
Total Certificates of Deposit
(Cost $519,952,530)................. 519,952,530
--------------
COMMERCIAL PAPER--56.9%
ASSET BACKED SECURITIES--1.6%
FCAP Owner Trust Series I
5.29%............. 04/25/97 50,000 49,823,667
5.29%............. 05/02/97 50,000 49,772,236
5.29%............. 05/05/97 25,000 24,875,097
--------------
124,471,000
--------------
BANKS--2.5%
Bank of America FSB
5.34%............. 04/14/97 100,000 99,807,167
NationsBank Corp.
5.36%............. 04/21/97 25,000 24,925,556
Norwest Financial, Inc.
5.34%............. 04/15/97 75,000 74,844,250
--------------
199,576,973
--------------
BEVERAGES--4.2%
JES Developments, Inc.
5.30%............. 04/07/97 100,000 99,911,667
5.30%............. 04/14/97 70,000 69,866,028
5.30%............. 04/15/97 163,000 162,664,039
--------------
332,441,734
--------------
CHEMICALS & ALLIED PRODUCTS--1.5%
Bayer Corp. (The)
5.34%............. 04/18/97 120,000 119,697,400
--------------
CIGARETTES--0.9%
American Brands, Inc.
5.29%............. 04/30/97 30,000 29,872,158
5.33%............. 05/29/97 37,500 37,177,979
--------------
67,050,137
--------------
COMMERCIAL PAPER (CONTINUED)
FINANCE LESSORS--4.7%
General Electric Capital Corp.
5.44%............. 04/07/97 50,000 49,954,667
5.34%............. 04/28/97 100,000 99,599,500
5.48%............. 05/12/97 25,000 24,843,972
5.35%............. 05/28/97 100,000 99,152,917
5.32%............. 08/12/97 100,000 98,034,556
--------------
371,585,612
--------------
FOOD & KINDRED PRODUCTS--0.7%
Campbell Soup Co.
5.33%............. 04/09/97 35,000 34,958,544
5.33%............. 04/16/97 24,000 23,946,700
--------------
58,905,244
--------------
MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS--2.4%
National Rural Utilities Coop. Finance Corp.
5.32%............. 05/19/97 79,000 78,439,627
5.32%............. 05/20/97 70,000 69,493,122
5.32%............. 05/22/97 40,000 39,698,533
--------------
187,631,282
--------------
MOTOR VEHICLES & CAR BODIES--2.9%
Daimler-Benz North America Corp.
5.35%............. 04/22/97 50,000 49,843,958
5.35%............. 04/24/97 50,000 49,829,097
5.35%............. 05/01/97 19,500 19,512,617
5.35%............. 05/05/97 36,355 36,171,306
5.40%............. 08/01/97 73,900 72,547,630
--------------
227,904,608
--------------
PERSONAL CREDIT INSTITUTIONS--1.3%
Associates Corp. of North America
5.35%............. 06/02/97 50,000 49,539,306
5.35%............. 06/03/97 50,000 49,531,875
--------------
99,071,181
--------------
PHARMACEUTICAL PREPARATIONS--0.6%
Eli Lilly & Co.
5.30%............. 04/10/97 50,000 49,933,750
--------------
RETAIL--LUMBER & OTHER BUILDING MATERIALS--0.8%
Home Depot Real Estate Funding, Inc.
5.34%............. 04/07/97 63,076 63,019,862
--------------
SECURITY BROKERS & DEALERS--13.8%
C.S. First Boston, Inc.
5.35%............. 04/11/97 50,000 49,925,694
5.35%............. 04/14/97 50,000 49,903,403
5.35%............. 04/17/97 40,000 39,904,889
5.45%............. 09/08/97 70,000 68,304,444
Goldman Sachs Group, L.P.
5.45%............. 09/02/97 25,000 24,417,153
</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>
COMMERCIAL PAPER (CONTINUED)
SECURITY BROKERS & DEALERS (CONTINUED)
Merrill Lynch & Co.
5.35%............. 04/29/97 $ 70,000 $ 69,708,722
5.40%............. 05/30/97 115,000 113,982,250
5.40%............. 06/30/97 75,000 73,987,500
Morgan Stanley Group, Inc.
6.75%............. 04/01/97 250,000 250,000,000
5.34%............. 04/25/97 110,000 109,608,400
5.31%............. 05/14/97 40,000 39,746,300
5.34%............. 05/22/97 100,000 99,243,500
5.28%............. 05/23/97 100,000 99,237,333
--------------
1,087,969,588
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--16.6%
Asset Securitization Coop. Corp.
5.34%............. 04/07/97 85,000 84,924,350
5.34%............. 05/05/97 100,000 99,495,667
5.35%............. 06/02/97 103,000 102,050,969
CXC, Inc.
5.45%............. 05/27/97 50,000 49,576,111
5.47%............. 06/17/97 50,000 49,415,014
5.47%............. 06/19/97 50,000 49,399,819
Delaware Funding Corp.
5.34%............. 04/21/97 50,000 49,851,667
5.34%............. 04/23/97 62,150 61,947,184
5.34%............. 04/28/97 37,785 37,633,671
5.45%............. 05/13/97 122,573 121,793,640
5.45%............. 05/14/97 49,723 49,399,317
5.47%............. 06/09/97 95,000 94,004,004
5.40%............. 06/11/97 35,000 34,627,250
General Electric Capital Services, Inc.
5.40%............. 05/19/97 50,000 49,640,000
Penney (J.C.) Funding Corp.
5.36%............. 06/03/97 75,675 74,965,169
5.35%............. 06/05/97 80,000 79,227,222
5.35%............. 06/09/97 90,000 89,077,125
5.37%............. 06/11/97 50,000 49,470,458
5.35%............. 06/16/97 80,000 79,096,444
--------------
1,305,595,081
--------------
TELEPHONE COMMUNICATIONS--2.4%
MCI Communications Corp.
5.33%............. 04/24/97 80,000 79,727,578
5.47%............. 04/29/97 50,000 49,787,278
5.43%............. 06/11/97 65,000 63,705,850
--------------
193,220,706
--------------
Total Commercial Paper
(Cost $4,488,074,158)............... 4,488,074,158
--------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS--3.2%
Federal National Mortgage Association
5.55%+............ 04/01/97 100,000 100,000,000
5.2975%+.......... 04/17/97 100,000 99,996,550
5.64%............. 09/03/97 50,000 49,923,694
--------------
Total U.S. Government Agency
Obligations
(Cost $249,920,244)................. 249,920,244
--------------
VARIABLE RATE OBLIGATIONS+--12.9%
Bear Stearns Companies, Inc.
5.5325%........... 05/07/97 150,000 150,000,000
5.4387%........... 05/22/97 150,000 150,000,000
C.S. First Boston Group, Inc.
5.5425%........... 04/24/97 25,000 25,000,000
First Bank of South Dakota
5.3826%........... 04/16/97 150,000 149,914,521
Ford Motor Credit
5.699%............ 06/02/97 125,000 125,161,549
Merrill Lynch & Co.
5.4925%........... 04/14/97 100,000 99,989,349
Morgan Guaranty Trust Co. of New York
5.3828%........... 05/14/97 150,000 149,931,993
SMM Trust 1997-R
5.4375%........... 04/15/97 169,000 169,000,000
--------------
Total Variable Rate Obligations
(Cost $1,018,997,412)............... 1,018,997,412
--------------
MEDIUM TERM NOTES--4.3%
Goldman Sachs Group, L.P.
5.625%............ 05/29/97 100,000 100,000,000
5.63%............. 08/06/97 50,000 50,000,000
5.75%............. 09/30/97 100,000 100,000,000
5.847%............ 10/06/97 60,000 60,000,000
Merrill Lynch & Co.
5.92%............. 09/12/97 25,000 25,000,000
--------------
Total Medium Term Notes
(Cost $335,000,000)................. 335,000,000
--------------
REPURCHASE AGREEMENTS--16.4%
Lehman Government Securities, Inc.
6.75%............. 04/01/97 439,400 439,400,000
(Agreement dated 03/31/97 to
be repurchased at
$439,482,388
collateralized by
$350,000,000 Federal Home
Loan Mortgage Corp. Notes
0.00% to 10.00% due
04/01/97 to 10/01/30 and
$89,400,000 U.S. Treasury
Strips due 11/15/88 to
02/15/19. Market value of
collateral is
$451,399,336.)
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
TEMPFUND PORTFOLIO
Statement of Net Assets (Concluded)
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Morgan Stanley & Co.
6.71%............. 04/01/97 $ 95,000 $ 95,000,000
(Agreement dated 03/31/97 to
be repurchased at
$95,017,707 collateralized
by $207,858,000 U.S.
Treasury Strips due
09/15/97 to 02/15/25.
Market value of collateral
is $95,994,773.)
Morgan Stanley & Co.
6.79%............. 04/01/97 650,000 650,000,000
(Agreement dated 03/31/97 to
be repurchased at
$650,122,597
collateralized by
$26,725,000 Federal Home
Loan Bank Notes 6.41% to
8.01% due 11/21/05 to
08/26/11 and $19,200,000
Federal Home Loan Mortgage
Corp. Discount Notes due
05/29/97 to 06/25/97 and
$3,000,000 Federal Home
Loan Mortgage Corp. Notes
7.27% due 04/07/06 and
$614,620,000 Federal
National Mortgage Assoc.
Notes 4.70% to 9.20% due
06/17/97 to 01/13/11.
Market value of collateral
is $658,026,894.)
Swiss Bank Corp.
5.00%............. 04/01/97 109,000 109,000,000
(Agreement dated 03/31/97 to
be repurchased at
$109,015,139
collateralized by
$97,895,000 U.S. Treasury
Notes 6.75% due 05/31/99
and $10,849,000 U.S.
Treasury Bills 0.00% due
09/04/97. Market value of
collateral is
$109,000,000.)
--------------
Total Repurchase Agreements
(Cost $1,293,400,000)............... 1,293,400,000
--------------
<CAPTION>
VALUE
--------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $7,905,344,344*)........ 100.3% $7,905,344,344
LIABILITIES IN EXCESS OF OTHER
ASSETS........................ (0.3%) (24,456,697)
-------- --------------
NET ASSETS (Equivalent to $1.00
per share based on
7,462,058,864 TempFund shares
and 418,813,172 TempFund
Dollar shares,
$.001 par value common stock
outstanding).................. 100.0% $7,880,887,647
====== ==============
NET ASSET VALUE, offering and redemption
price per share
($7,880,887,647 / 7,880,872,036)........ $1.00
=====
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of March 31, 1997 and
the maturity date shown is the date the principal amount can be recovered upon
demand or put.
TEMPFUND/TEMPFUND DOLLAR
Maturity Information
March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE
MATURITY PAR OF
PERIOD (000) PORTFOLIO
------------- -------------- ----------
<S> <C> <C>
1- 7 days $1,981,476,000 25.0%
8- 14 days 455,000,000 5.7%
15- 30 days 1,710,935,000 21.6%
31- 60 days 1,829,751,000 23.0%
61- 90 days 1,083,675,000 13.7%
91-120 days 75,000,000 0.9%
121-150 days 288,900,000 3.7%
Over 150 days 510,000,000 6.4%
-------------- -------
$7,934,737,000 100.0%
============== =======
Average Weighted Maturity--46 days
---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
TEMPCASH PORTFOLIO
Temporary Investment Fund, Inc.
Statement of Net Assets
March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--30.8%
BANK NOTES--1.8%
Bank of America National Trust & Savings
5.86%............. 09/26/97 $ 7,000 $ 7,000,000
LaSalle National Bank
5.75%............. 01/02/98 40,000 40,000,000
--------------
47,000,000
--------------
DOMESTIC CERTIFICATES OF DEPOSIT--3.3%
Comerica Bank--Detroit
5.77%............. 08/13/97 12,000 11,997,568
Morgan Guaranty Trust Co. of New York
5.73%............. 08/12/97 23,000 23,010,815
5.71%............. 01/06/98 50,000 49,985,302
--------------
84,993,685
--------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--25.7%
Bank of Tokyo--Mitsubishi
5.55%............. 04/03/97 100,000 100,000,000
5.59%............. 04/15/97 75,000 75,000,000
Royal Bank of Canada
5.83%............. 01/14/98 25,000 25,009,095
Sanwa Bank Ltd. Japan
5.47%............. 04/09/97 75,000 75,000,165
5.51%............. 05/19/97 23,000 23,000,882
5.62%............. 06/11/97 48,000 48,001,867
Societe Generale
5.78%............. 08/20/97 25,000 24,998,150
5.73%............. 10/15/97 25,000 24,996,345
5.93%............. 03/11/98 50,000 49,990,988
Sumitomo Bank
5.52%............. 04/14/97 40,000 40,000,429
5.62%............. 04/28/97 100,000 100,008,560
5.58%............. 05/30/97 75,000 75,000,000
--------------
661,006,481
--------------
Total Certificates of Deposit
(Cost $793,000,166)................. 793,000,166
--------------
COMMERCIAL PAPER--29.6%
ASSET BACKED SECURITIES--4.4%
Sigma Finance, Inc.
5.39%............. 04/15/97 25,000 24,947,597
5.35%............. 04/21/97 48,500 48,355,847
5.45%............. 07/15/97 40,000 39,364,167
--------------
112,667,611
--------------
BANKS--5.9%
AB Spintab Swedmortgage
5.43%............. 04/15/97 25,000 24,947,208
5.43%............. 04/16/97 25,000 24,943,438
5.39%............. 04/21/97 40,000 39,880,222
5.39%............. 04/24/97 25,000 24,913,910
5.57%............. 06/11/97 38,500 38,077,067
--------------
152,761,845
--------------
COMMERCIAL PAPER (CONTINUED)
FINANCE SERVICES--4.8%
Dakota Certificates Program
5.30%............. 05/12/97 33,000 32,800,808
5.31%............. 05/23/97 20,000 19,846,600
Old Line Funding Corp.
5.29%............. 04/03/97 71,970 71,948,849
--------------
124,596,257
--------------
PERSONAL CREDIT INSTITUTIONS--4.4%
General Motors Acceptance Corp.
5.33%............. 05/01/97 25,000 24,888,958
5.40%............. 08/04/97 90,000 88,312,500
--------------
113,201,458
--------------
SECURITY BROKERS & DEALERS--3.7%
Merrill Lynch & Co.
5.31%............. 05/15/97 40,000 39,740,400
Nomura Holding America, Inc.
5.37%............. 05/12/97 25,000 24,847,104
5.43%............. 06/05/97 30,000 29,705,875
--------------
94,293,379
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--2.3%
Corporate Receivables Corp.
5.42%............. 04/11/97 15,000 14,977,417
5.40%............. 06/19/97 20,000 19,763,000
Heller Financial, Inc.
5.42%............. 04/04/97 25,000 24,988,708
--------------
59,729,125
--------------
TELEPHONE COMMUNICATIONS--4.1%
MCI Communications Corp.
5.47%............. 04/29/97 50,000 49,787,279
5.32%............. 06/19/97 25,000 24,708,139
5.32%............. 06/30/97 30,000 29,601,000
--------------
104,096,418
--------------
Total Commercial Paper
(Cost ($761,346,093)................ 761,346,093
--------------
TIME DEPOSITS--9.7%
Banque Paribas
7.00%............. 04/01/97 100,000 100,000,000
National Westminster Bank
6.25%............. 04/01/97 150,000 150,000,000
--------------
Total Time Deposits
(Cost $250,000,000)................. 250,000,000
--------------
UNITED STATES GOVERNMENT AGENCY
OBLIGATIONS+--7.3%
Federal National Mortgage Association
5.55%............. 04/01/97 75,000 75,000,000
--------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
TEMPCASH PORTFOLIO
Statement of Net Assets (Concluded)
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- -------- --------------
<S> <C> <C> <C>
UNITED STATES GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
Student Loan Marketing Association
5.58%............. 04/01/97 $ 50,000 $ 50,002,365
5.60%............. 04/01/97 6,000 6,000,749
5.62%............. 04/01/97 44,000 43,999,528
5.76%............. 04/01/97 13,950 13,965,727
--------------
113,968,369
--------------
Total U.S. Government
Agency Obligations
(Cost $188,968,369)................. 188,968,369
--------------
VARIABLE RATE OBLIGATIONS+--17.9%
SMM Trust 1997
5.6562%........... 04/16/97 60,000 60,000,000
General American Life Insurance Co.
5.58%............. 04/01/97 50,000 50,000,000
Lehman Brothers Holdings, Inc.
5.6469%........... 06/06/97 125,000 125,000,000
Peoples Security Life
5.59%............. 04/01/97 50,000 50,000,000
Royal Bank of Canada
5.71%............. 04/01/97 175,000 174,879,812
--------------
Total Variable Rate Obligations
(Cost $459,879,812)................. 459,879,812
--------------
MEDIUM TERM NOTES--3.9%
PERSONAL CREDIT INSTITUTIONS--1.0%
General Motors Acceptance Corp.
5.75%............. 10/07/97 25,000 25,005,676
--------------
SECURITY BROKERS & DEALERS--2.9%
Goldman Sachs Group, L.P.
5.63%............. 08/06/97 50,000 50,000,000
Merrill Lynch & Co.
5.88%............. 05/14/97 25,000 24,999,589
--------------
74,999,589
--------------
Total Medium Term Notes
(Cost $100,005,265)................. 100,005,265
--------------
REPURCHASE AGREEMENT--0.8%
PaineWebber, Inc.
6.60%............. 04/01/97 20,500 20,500,000
(Agreement dated 03/31/97 to
be repurchased at
$20,500,000,
collateralized by
$44,511,788 Federal Home
Loan Mortgage Corporation
Notes 0.00% to 8.50% due
08/15/08 to 09/15/23.
Market Value of collateral
is $20,981,056.)
--------------
Total Repurchase Agreement
(Cost $20,500,000).................. 20,500,000
--------------
<CAPTION>
VALUE
--------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,573,699,705*)........ 100.0% $2,573,699,705
LIABILITIES IN EXCESS OF OTHER
ASSETS........................ 0.0% (57,612)
-------- --------------
NET ASSETS (Equivalent to $1.00
per share based on
2,096,799,972 TempCash shares
and 477,298,614 TempCash
Dollar shares,
$.001 par value common
stock outstanding)............ 100.0% $2,573,642,093
====== ==============
NET ASSET VALUE, offering and redemption
price per share
($2,573,642,093 / 2,574,098,586)........ $1.00
=====
</TABLE>
- ---------------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of March 31, 1997 and
the maturity date shown is the date the principal amount can be recovered upon
demand or put.
TEMPCASH/TEMPCASH DOLLAR
Maturity Information
March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE
MATURITY PAR OF PORTFOLIO
------------- -------------- ----------
<S> <C> <C>
1- 7 days $ 931,420,000 36.1%
8- 14 days 130,000,000 5.0%
15- 30 days 473,500,000 18.4%
31- 60 days 266,000,000 10.3%
61- 90 days 286,500,000 11.1%
91-120 days 70,000,000 2.7%
121-150 days 200,000,000 7.8%
Over 150 days 222,000,000 8.6%
-------------- --------
$2,579,420,000 100.0%
============== ========
Average Weighted Maturity--54 days
-------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
TEMPORARY INVESTMENT FUND, INC.
Statements of Operations
Six Months ended March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
TEMPFUND TEMPCASH
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C> <C>
Interest income................................................................ $205,576,917 $97,618,400
------------ ------------
Expenses:
Investment advisory fee.................................................... 4,257,850 2,523,721
Administration fee......................................................... 4,257,850 2,523,721
Directors' fees and officer's salary....................................... 95,231 27,759
Transfer agent fee......................................................... 279,850 85,630
Custodian fee.............................................................. 368,370 206,343
Shareholder computer access program........................................ 60,970 18,411
Legal and audit............................................................ 45,430 11,095
Registration fees and expenses............................................. 10,467 (151,708)
Other...................................................................... 64,329 40,572
------------ ------------
9,440,347 5,285,544
Less fees waived........................................................... (2,671,195) (2,083,885)
------------ ------------
6,769,152 3,201,659
Service Organization fees.................................................. 346,710 667,642
------------ ------------
Total expenses........................................................ 7,115,862 3,869,301
------------ ------------
Net investment income...................................................... 198,461,055 93,749,099
Net realized gain on investments............................................... 15,612 126,601
------------ ------------
Net increase in net assets resulting from operations....................... $198,476,667 $93,875,700
============ ============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
TEMPORARY INVESTMENT FUND, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TEMPFUND PORTFOLIO TEMPCASH PORTFOLIO
------------------------------------- ------------------------------------
YEAR ENDED YEAR ENDED
SIX MONTHS ENDED SEPTEMBER 30, SIX MONTHS ENDED SEPTEMBER 30,
MARCH 31, 1997 1996 MARCH 31, 1997 1996
---------------- ----------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.......... $ 198,461,055 $ 370,210,835 $ 93,749,099 $ 151,863,345
Net realized gain (loss) on
investments.................. 15,612 94,556 126,601 (64,645)
-------------- -------------- -------------- --------------
Net increase in net assets
resulting from
operations................. 198,476,667 370,305,391 93,875,700 151,798,700
-------------- -------------- -------------- --------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
TempFund shares.............. (191,468,616) (363,902,699) -- --
TempFund Dollar shares....... (6,992,439) (6,308,136) -- --
TempCash shares.............. -- -- (80,223,061) (126,493,796)
TempCash Dollar shares....... -- -- (13,526,038) (25,369,549)
Distributions to shareholders
from net realized gain:
TempFund shares.............. (47,562) -- -- --
TempFund Dollar shares....... (1,567) -- -- --
-------------- -------------- -------------- --------------
Total distributions to
shareholders............. (198,510,184) (370,210,835) (93,749,099) (151,863,345)
-------------- -------------- -------------- --------------
Capital share transactions
(at $1 per share):
Sale of shares................. 71,971,158,542 104,002,736,713 39,339,183,749 48,006,882,183
Shares issued in reinvestment
of dividends................. 53,811,002 90,326,001 33,228,290 59,462,722
Shares repurchased............. (70,021,170,882) (103,649,208,875) (39,162,052,633) (47,473,446,398)
-------------- -------------- -------------- --------------
Increase in net assets
derived from capital
share transactions....... 2,003,798,662 443,853,839 210,359,406 592,898,507
-------------- -------------- -------------- --------------
Total increase in net
assets................... 2,003,765,145 443,948,395 210,486,007 592,833,862
Net assets:
Beginning of period................ 5,877,122,502 5,433,174,107 2,363,156,086 1,770,322,224
-------------- -------------- -------------- --------------
End of period...................... $ 7,880,887,647 $ 5,877,122,502 $ 2,573,642,093 $ 2,363,156,086
============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
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, 1997 1996 1995 1994 1993 1992
-------------- ---------- ---------- ---------- ---------- ----------
(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.................... .0264 .0541 .0567 .0360 .0310 .0424
Net Realized Gains on Investments........ -- -- -- -- -- .0015
-------- ------ ------ ------ ------ ------
Total From Investment Operations......... .0264 .0541 .0567 .0360 .0310 .0439
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income)... (.0264) (.0541) (.0567) (.0360) (.0310) (.0424)
Distributions (from capital gains)....... -- -- -- -- -- (.0015)
-------- ------ ------ ------ ------ ------
Total Distributions...................... (.0264) (.0541) (.0567) (.0360) (.0310) (.0439)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
Total Return............................. 5.42%(2) 5.55% 5.82% 3.66% 3.14% 4.48%
Ratios/Supplemental Data
Net Assets, End of Period (000's)...... $7,462,074 $5,715,004 $5,351,346 $4,480,851 $5,522,056 $9,227,572
Ratio of Expenses to Average Daily Net
Assets............................... .18%(1,2) .18%(1) .24%(1,2) .25%(1) .21% .21%
Ratio of Net Investment Income to
Average Daily Net Assets............. 5.29%(2) 5.41% 5.67% 3.60% 3.10% 4.13%
</TABLE>
<TABLE>
<CAPTION>
TEMPFUND DOLLAR SHARES
-----------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED ------------------------------------------------------------
MARCH 31, 1997 1996 1995 1994 1993 1992
-------------- -------- ------- ---------- ---------- ----------
(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.................... .0251 .0516 .0542 .0335 .0285 .0399
Net Realized Gains on Investments........ -- -- -- -- -- .0015
--------- -------- ------- -------- -------- --------
Total From Investment Operations......... .0251 .0516 .0542 .0335 .0285 .0414
--------- -------- ------- -------- -------- --------
Less Distributions
Dividends (from net investment income)... (.0251) (.0516) (.0542) (.0335) (.0285) (.0399)
Distributions (from capital gains)....... -- -- -- -- -- (.0015)
--------- -------- ------- -------- -------- --------
Total Distributions...................... (.0251) (.0516) (.0542) (.0335) (.0285) (.0414)
--------- -------- ------- -------- -------- --------
Net Asset Value, End of Period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======= ======== ======== ========
Total Return............................. 5.16%(2) 5.30% 5.57% 3.41% 2.89% 4.23%
Ratios/Supplemental Data
Net Assets, End of Period (000's)...... $418,814 $162,119 $81,828 $102,105 $112,695 $217,230
Ratio of Expenses to Average Daily Net
Assets............................... .43%(1,2) .43%(1) .49%(1) .50%(1) .46% .46%
Ratio of Net Investment Income to
Average Daily Net Assets............. 5.04%(2) 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
.24% (annualized) for the six months ended March 31, 1997, are .26%, .27%
and .27% for the years ended September 30, 1996, 1995 and 1994,
respectively. For TempFund Dollar Shares the ratio of expenses to average
daily net assets would have been .49% (annualized) for the six months
ended March 31, 1997, and .51%, .52% and .52% for the years ended
September 30, 1996, 1995 and 1994, respectively.
(2) Annualized.
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>
TEMPCASH SHARES
---------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED ---------------------------------------------------------------------
MARCH 31, 1997 1996 1995 1994 1993 1992
-------------- ---------- ---------- ---------- ---------- ----------
(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................. .0265 .0542 .0575 .0370 .0310 .0424
Net Realized Gains on Investments..... -- -- -- -- -- .0008
-------- ------ ------ ------ ------ ------
Total From Investment Operations...... .0265 .0542 .0575 .0370 .0310 .0432
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment
income)............................. (.0265) (.0542) (.0575) (.0370) (.0310) (.0424)
Distributions (from capital gains).... -- -- -- -- -- (.0008)
-------- ------ ------ ------ ------ ------
Total Distributions................... (.0265) .0542 .0575 (.0370) (.0310) (.0432)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
Total Return.......................... 5.45%(2) 5.56% 5.90% 3.76% 3.14% 4.41%
Ratios/Supplemental Data
Net Assets, End of Period (000's)... $2,096,437 $1,835,326 $1,316,166 $2,330,456 $1,479,035 $1,492,959
Ratio of Expenses to Average Daily
Net Assets........................ .18%(1,2) .18%(1) .16%(1) .16%(1) .19%(1) .20%(1)
Ratio of Net Investment Income to
Average Daily Net Assets.......... 5.31%(2) 5.42% 5.75% 3.70% 3.10% 4.14%
</TABLE>
<TABLE>
<CAPTION>
TEMPCASH DOLLAR SHARES
-----------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED -------------------------------------------------------------------
MARCH 31, 1997 1996 1995 1994 1993 1992
-------------- ---------- ---------- ---------- ---------- ----------
(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..................... .0253 .0517 .0550 .0345 .0285 .0399
Net Realized Gains on Investments......... -- -- -- -- -- .0008
-------- ------ ------ ------ ------ ------
Total From Investment Operations.......... .0253 .0517 .0550 .0345 .0285 .0407
-------- ------ ------ ------ ------ ------
Less Distributions
Dividends (from net investment income).... (.0253) (.0517) (.0550) (.0345) (.0285) (.0399)
Distributions (from capital gains)........ -- -- -- -- -- (.0008)
-------- ------ ------ ------ ------ ------
Total Distributions....................... (.0253) (.0517) (.0550) (.0345) (.0285) (.0407)
-------- ------ ------ ------ ------ ------
Net Asset Value, End of Period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ====== ====== ====== ======
Total Return.............................. 5.19%(2) 5.31% 5.65% 3.51% 2.89% 4.16%
Ratios/Supplemental Data
Net Assets, End of Period (000's)....... $ 477,205 $ 527,830 $ 454,156 $ 397,948 $ 307,239 $ 408,900
Ratio of Expenses to Average Daily
Net Assets............................ .43%(1,2) .43%(1) .41%(1) .41%(1) .44%(1) .45%(1)
Ratio of Net Investment Income to
Average Daily Net Assets.............. 5.06%(2) 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
.30% (annualized) for the six months ended March 31, 1997 and .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 .55% (annualized) for the six
months ended March 31, 1997, .58%, .55%, .58%, .62% and 58% for the years
ended September 30, 1996, 1995, 1994, 1993 and 1992, respectively.
(2) Annualized.
See accompanying notes to financial statements.
11
<PAGE> 12
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 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.
12
<PAGE> 13
Notes to Financial Statements (Continued)
(Unaudited)
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.
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 six months ended March 31, 1997, the administrators and PIMC waived,
on an equal basis, administration and advisory fees payable to them in the
amounts of $2,671,195 and $2,083,885 for the TempFund portfolio and the TempCash
portfolio, respectively.
Service Organization fees of $463,565 were paid to affiliates of PIMC for the
six months ended March 31, 1997.
D. At March 31, 1997, 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.
13
<PAGE> 14
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, 1997 1996 MARCH 31, 1997 1996
---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Sale of shares
TempFund Class B........ $ 70,163,569,420 $101,643,428,057 -- --
TempFund Dollar......... 1,807,589,122 2,359,308,656 -- --
TempCash................ -- -- $ 37,962,945,017 $ 45,784,802,510
TempCash Dollar......... -- -- 1,376,238,732 2,222,079,673
Shares issued in
reinvestment of dividends
TempFund Class B........ 52,980,484 89,775,638 -- --
TempFund Dollar......... 830,518 550,363 -- --
TempCash................ -- -- 27,070,123 47,148,399
TempCash Dollar......... -- -- 6,158,167 12,314,323
Shares repurchased
TempFund Class B........ (68,469,468,034) (101,369,639,394) -- --
TempFund Dollar......... (1,551,702,848) (2,279,569,481) -- --
TempCash................ -- -- (37,729,011,840) (45,312,737,466)
TempCash Dollar......... -- -- (1,433,040,793) (2,160,708,932)
---------------- ---------------- ---------------- ----------------
Increase
in net assets derived from
capital share
transactions.............. $ 2,003,798,662 $ 443,853,839 $ 210,359,406 $ 592,898,507
================ ================ ================ ================
</TABLE>
E. At September 30, 1996, a capital loss carryover of $583,094 in the TempCash
portfolio was available to offset future realized gains of which $518,450
expires in 2002 and $64,644 expires in 2004.
F. At March 31, 1997, net assets consisted of the following: (Unaudited)
<TABLE>
<CAPTION>
TEMPFUND TEMPCASH
--------------- ---------------
<S> <C> <C>
Paid-in capital.............................................. $ 7,880,872,035 $ 2,574,098,586
Accumulated net realized gains (losses)...................... 15,612 (456,493)
--------------- ---------------
Total net assets............................................. $ 7,880,887,647 $ 2,573,642,093
============== ==============
</TABLE>
14
<PAGE> 15
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.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
DISTRIBUTOR
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
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]
Semi-Annual Report
to Shareholders
March 31, 1997
