<PAGE> 1
PROVIDENT
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809 --
Phone: 302-792-2555 -- Fax: 302-792-5876
FUNDS
G. Willing Pepper
Chairman
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
January 12, 1999
Dear Shareholder:
We are pleased to present the Annual Report to Shareholders of Municipal
Fund for Temporary Investment for the period ended November 30, 1998.
Commentary on the economy, financial markets, and recent developments in
our Fund are contained in the accompanying Investment Adviser's Report.
Thank you for choosing Provident Institutional Funds for your liquidity
needs. Should you have any questions, please contact your account representative
or call our Client Service Center at (800) 821-7432. We welcome the opportunity
to service all your short term investment needs.
Sincerely,
/s/ G. Willing Pepper
G. Willing Pepper
Chairman
<PAGE> 2
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Annual Report of the Investment Adviser
During the twelve-month period ended November 30, 1998, interest rates
moved lower as the economy prospered in an inflation free market environment.
Despite a roller coaster stock market, faltering economies of the Pacific Rim,
Russia defaulting on its debt payments and global credit concerns, the economy
of the United States grew at a consistent pace. Supporting and encouraging this
growth, the Federal Open Market Committee reduced the short-term federal funds
rate on three occasions to the current level of 4.75%. Corporate layoffs reached
an all time high in 1998, but laid off workers found new positions and the
unemployment rate dropped to 4.5% as of November 30, 1998. Productivity gains
have been strong due to greater efficiency and declining raw material prices.
The prices paid component of the National Association of Purchasing Managers
index recently hit a low not seen since July 1949. Overall, the index has
declined nine of the last twelve months with five of the readings below the
established 50% inflationary threshold. All of these factors have contributed to
a robust economy driven by strong consumer confidence, higher levels of income,
price stability and a vigorous stock market.
During the last twelve months, seasonal factors, new issue supply, and
monetary policy impacted tax-exempt yields. As interest rates declined this
year, municipalities switched from issuing money market obligations to
longer-term debt, reducing the available supply of short-term instruments to
tax-exempt money funds. This decrease in supply, combined with the reduction in
the federal funds rate, helped the Bond Buyer 1-Year Note Index fall from 3.72%
in December 1997 to 2.95% in November 1998.
Investment strategy during the year focused on maintaining a higher level
of variable rate demand notes due to the often inverted slope of the municipal
money market yield curve. Yield spreads were often very narrow and offered
limited incentive to extend the portfolios' average weighted maturities. Due to
the volatility of the markets in 1998, new cash was also invested in variable
rate demand notes to maintain a high level of liquidity. As of November 30,
1998, MuniFund's average weighted maturity stood at 49 days and MuniCash's
average weighted maturity was 47 days.
The two portfolios remained competitive within their peer groups.
MuniFund's total return performance ranked it #3 among 11 AAA-rated tax-free
money market funds and MuniCash was ranked #7 among 71 tax-free institutional
funds for the twelve month period ended November 30, 1998, according to IBC's
Money Fund Report. Both portfolios continued their emphasis on high credit
quality and liquidity.
BLACKROCK INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
MUNIFUND PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1998
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ALABAMA -- 4.44%
Alabama Housing Finance
Authority Multifamily Housing
RB (Rime Huntsville Project)
Series B DN (Federal National
Mortgage Association)(A-1+)
3.20%(1)............ 12/07/98 $ 3,775 $ 3,775,000
Calhoun County Economic
Development Council IDRB
(Craft Corporation Project) DN
(Amsouth Bank of Alabama LOC)
(A-1+, VMIG-1)
3.60%(1)............ 12/07/98 3,370 3,370,000
City of Huntsville Health Care
Authority RB Series 1998 DN
(Amsouth Bank of Alabama LOC)
(A-1)
3.15%(1)............ 12/07/98 6,100 6,100,000
City of Montgomery BMC Special
Care Facilities Authority
Hospital RB (Baptist Medical
Center) Series A DN (Amsouth
Bank of Alabama LOC) (VMIG-1)
3.45%(1)............ 12/07/98 9,800 9,800,000
------------
23,045,000
------------
ARIZONA -- 0.39%
Arizona State School District
Financing Program TAN Series A
(SP-1+)
4.10%............... 07/30/99 2,000 2,006,782
------------
ARKANSAS -- 0.66%
Arkansas Development Finance
Authority Single Family
Mortgage RB (Mortgage-Backed
Securities Program) (FGIC
Insurance) (A-1+)
3.70%............... 06/01/99 3,405 3,405,000
------------
CALIFORNIA -- 5.50%
Alameda-Contra Costa School
Financing Authority (Capital
Improvements Financing
Project) Series C DN (National
Westminster LOC) (A-1+)
2.50%(1)............ 12/07/98 195 195,000
California Statewide Community
Development Authority RB Trust
Receipts Series A DN (Bank of
New York LOC) (A-1+)
3.30%(1)............ 12/07/98 15,300 15,300,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Los Angeles County TRAN (SP-1+,
MIG-1)
4.50%............... 06/30/99 $13,000 $ 13,071,092
------------
28,566,092
------------
COLORADO -- 2.79%
Colorado Health Facilities
Authority RB (Catholic Health
Initiatives) Series B DN
(A-1+, VMIG-1)
3.15%(1)............ 12/07/98 2,500 2,500,000
Colorado Housing Finance
Authority Multifamily Housing
RB (Huntington Project) Series
J DN (Federal National
Mortgage Association) (A-1+)
3.20%(1)............ 12/07/98 4,060 4,060,000
Colorado Student Obligation Bond
Authority Student Loan RB
Series 1993A DN (Student Loan
Marketing Association) (A-1+,
VMIG-1)
3.05%(1)............ 12/07/98 1,900 1,900,000
Douglas County School District
TAN (SP-1+, MIG-1)
3.75%............... 06/30/99 2,500 2,511,349
Moffat County PCRB (Tri-State)
Series 1984 DN (AMBAC
Insurance) (A-1+, P-1)
3.20%(1)............ 12/07/98 3,500 3,500,000
------------
14,471,349
------------
FLORIDA -- 3.88%
Capital Projects Finance
Authority (Florida Hospital
Association -- Capital
Projects Loan Program) Series
1998A DN (Credit Suisse LOC)
(A-1+)
3.15%(1)............ 12/07/98 5,000 5,000,000
Orange County Housing Finance
Authority Multifamily RB (Post
Fountains At Lee Vista) Series
1997E DN (Federal National
Mortgage Association)(A-1+)
3.20%(1)............ 12/07/98 5,100 5,100,000
</TABLE>
- ------------------
(1) Variable rate
3
<PAGE> 4
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
FLORIDA (CONTINUED)
Orange County Housing Finance
Authority Multifamily RB (Post
Lake Apartments Project) DN
(Federal National Mortgage
Association) (A-1+)
3.20%(1)............ 12/07/98 $ 6,000 $ 6,000,000
Putnam County Development
Authority PCRB (Seminole
Electric Cooperative
Incorporated Project) (A-1+,
VMIG-1)
3.65%............... 12/15/98 2,500 2,500,000
St. Petersburg Capital
Improvement RB (Apartment &
Golf Course Project) Series B
DN (Suntrust Bank LOC)
3.10%(1)............ 12/07/98 1,580 1,580,000
------------
20,180,000
------------
GEORGIA -- 9.94%
Bartow County Development
Authority PCRB (Georgia Power
Company Bowen Project) DN
(VMIG-1)
3.25%(1)............ 12/01/98 2,000 2,000,000
Burke County Development
Authority PCRB (Georgia Power
Company Plant Vogtle Project)
Series 1994 DN (A-1, VMIG-1)
3.65%(1)............ 12/01/98 14,500 14,500,000
Cobb County Development
Authority RB (Highland Park
Associates Project) DN (Sun
Trust LOC)
3.20%(1)............ 12/07/98 2,350 2,350,000
Cobb County Housing Authority
Multifamily Housing RB (Post
Bridge Project) DN (Federal
National Mortgage Association)
(A-1+, VMIG-1)
3.20%(1)............ 12/07/98 900 900,000
Fulton County IDA (Arthritis
Foundation Incorporated) DN
(Suntrust Bank LOC)
3.20%(1)............ 12/07/98 1,000 1,000,000
Fulton County IDA (Epstein
School Project) DN (Suntrust
Bank LOC)
3.20%(1)............ 12/07/98 2,000 2,000,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
GEORGIA (CONTINUED)
Fulton County IDA (Metro Atlanta
YMCA Project) DN (Wachovia
Bank LOC)
3.10%(1)............ 12/07/98 $ 8,500 $ 8,500,000
Gwinnett County Development
Authority (Wesleyan School
Project) Series 1997 DN
(Suntrust Bank LOC)
3.20%(1)............ 12/07/98 1,500 1,500,000
Metropolitan Atlanta Georgia
Rapid Transit Authority Trust
Receipts D (MBIA Insurance)
(VMIG-1)
3.45%(1)............ 12/07/98 17,575 17,575,000
Smyrna Housing Authority
Multifamily Housing RB (Post
Valley Project) Series 1995 DN
(Federal National Mortgage
Association) (A-1+)
3.20%(1)............ 12/07/98 1,300 1,300,000
------------
51,625,000
------------
IDAHO -- 0.73%
Idaho TAN (SP-1+, MIG-1)
4.50%............... 06/30/99 3,750 3,768,825
------------
ILLINOIS -- 13.98%
Chicago GO Tender Notes (Morgan
Guaranty LOC) (A-1+, VMIG-1)
3.55%............... 02/04/99 10,000 10,000,000
Illinois Development Finance
Authority PCRB (Chicago
Symphony Project) DN (Bank of
America LOC) (A-1+, VMIG-1)
3.10%(1)............ 12/07/98 5,100 5,100,000
Illinois Development Finance
Authority PCRB (Illinois Power
Company Project) (ABN-AMRO
Bank N.V. LOC) (SP-1+, VMIG-1)
3.00%............... 08/26/99 4,000 4,000,000
Illinois Development Finance
Authority PCRB (The Uno-Ven
Company) DN (NBD Bank Corp
LOC) (A-1+, P-1)
3.15%(1)............ 12/07/98 7,900 7,900,000
</TABLE>
- ------------------
(1) Variable rate
4
<PAGE> 5
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Educational Facilities
Authority RB (ACI Cultural Pooled
Financing Program) Series 1998 DN
(NBD Bank Corp LOC) (A-1+)
3.15%(1)............ 12/07/98 $10,000 $ 10,000,000
Illinois Health Facilities
Authority PCRB Revolving Fund
Pooled Financing Program (The
University of Chicago Project)
(A-1+, VMIG-1)
2.95%............... 05/03/99 4,000 4,000,000
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation Project)
(A-1+, VMIG-1)
3.70%............... 03/01/99 10,000 10,000,000
3.90%............... 07/15/99 5,000 5,000,000
3.15%............... 08/02/99 5,000 5,000,000
3.55%............... 08/31/99 4,000 4,000,000
Illinois Health Facilities
Authority RB (The Children's
Memorial Hospital Project)
Series A (Bank One Columbus
LOC) (VMIG-1)
2.95%............... 06/25/99 3,000 3,000,000
Mundelein County IDRB (1200 Town
Line Road) DN (VMIG-1)
3.15%(1)............ 12/07/98 1,100 1,100,000
Schaumburg Village Multifamily
Housing RB (Windsong
Apartments Project) Series
1995 DN (ABN-AMRO Bank N.V.
LOC) (A-1+)
3.28%(1)............ 12/07/98 3,500 3,500,000
------------
72,600,000
------------
INDIANA -- 1.15%
Indiana State Educational
Facilities Authority RB
(Bethel College Project)
Series B DN (NBD Bank Corp
LOC) (A-1+)
3.15%(1)............ 12/07/98 4,000 4,000,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
INDIANA (CONTINUED)
Indiana State Educational
Facilities Authority RB
(Indiana Wesleyan University
Project) Series A DN (NBD Bank
Corp LOC) (A-1+)
3.15%(1)............ 12/07/98 $ 2,000 $ 2,000,000
------------
6,000,000
------------
KENTUCKY -- 3.52%
Kentucky Housing RB Series C
(Morgan Guaranty LOC) (A-1+,
MIG-1)
3.70%............... 07/01/99 2,000 2,000,000
Kentucky Interlocal School
Transportation Association
Certificates of Participation
TRAN (SP-1+)
3.90%............... 06/30/99 16,263 16,286,493
------------
18,286,493
------------
LOUISIANA -- 0.19%
Parish of East Baton Rouge PCRB
(Exxon Project) Series 1989 DN
(A-1+, P-1)
3.25%(1)............ 12/07/98 1,000 1,000,000
------------
MARYLAND -- 10.44%
Frederick County (Homewood
Incorporated Facility) DN (FNB
Maryland LOC)(A-1)
3.48%(1)............ 12/07/98 19,950 19,950,000
Maryland Health & Higher
Education Facilities Authority
RB (Doctors Community
Hospital) Series 1997 DN (A-1)
3.58%(1)............ 12/07/98 7,555 7,555,000
Maryland Health & Higher
Education Facilities Authority
RB (Pooled Loan Program)
Series A DN (NBD Bank Corp
LOC) (VMIG-1)
3.10%(1)............ 12/07/98 14,300 14,300,000
Maryland Industrial Development
Finance Authority (McDonough
School Project) DN (FNB
Maryland LOC) (A-1)
3.60%(1)............ 12/07/98 7,000 7,000,000
</TABLE>
- ------------------
(1) Variable rate
5
<PAGE> 6
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
MARYLAND (CONTINUED)
Maryland State Economic
Development Corporation RB
(Pooled Financing) DN
(NationsBank LOC) (A-1+,
VMIG-1)
3.20%(1)............ 12/07/98 $ 700 $ 700,000
Maryland State IDA (McDonough
School Income Facility) DN
(FNB Maryland LOC) (A-1,
VMIG-1)
3.60%(1)............ 12/07/98 4,735 4,735,000
------------
54,240,000
------------
MICHIGAN -- 1.37%
Grand Rapids Water Supply System
Improvement RB Series 1993 DN
(Societe Generale LOC)
(VMIG-1)
3.05%(1)............ 12/07/98 3,100 3,100,000
Michigan Municipal Bond
Authority Revenue Notes Series
D-2 (Bank of Nova Scotia LOC)
(SP-1+)
4.25%............... 08/27/99 4,000 4,019,043
------------
7,119,043
------------
MISSISSIPPI -- 0.21%
Jackson County Port Facility
(Chevron Incorporated) Series
1993 DN (VMIG-1)
3.30%(1)............ 12/01/98 1,100 1,100,000
------------
NEW HAMPSHIRE -- 0.90%
New Hampshire Business Finance
Authority Resource RB
(Wheelabrator Project) Series
A DN (Wachovia Bank LOC)
(A-1+)
3.10%(1)............ 12/07/98 4,700 4,700,000
------------
NEW JERSEY -- 1.83%
New Jersey Economic Development
Authority PCRB (Public Service
Electric & Gas Company
Project) Series 1995A DN (MBIA
Insurance) (A-1+, VMIG-1)
3.00%(1)............ 12/07/98 700 700,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NEW JERSEY (CONTINUED)
New Jersey Economic Development
Authority Revenue Refunding
Bonds (Stolthaven Perth Amboy
Incorporated Project) Series
1998 DN (Citibank LOC) (A-1+,
VMIG-1)
3.25%(1)............ 12/01/98 $ 2,100 $ 2,100,000
New Jersey Sports & Exhibition
Authority Series 1992C DN
(Barclays Bank LOC) (A-1+,
VMIG-1)
3.15%(1)............ 12/07/98 1,700 1,700,000
South Jersey Transportation
Authority BAN Series 1998
(SP-1+, MIG-1)
2.95%............... 11/03/99 5,000 5,000,000
------------
9,500,000
------------
NEW YORK -- 1.15%
Long Island Power Authority
Electric Systems RB (Putters
Project) Series 43-I DN
(Westdeutsche Landesbank
Girozentrale LOC) (A-1+,
VMIG-1)
3.00%(1)............ 12/07/98 1,000 1,000,000
New York Metropolitan
Transportation Authority
Transit Facilities Special
Obligation BAN TECP (ABN-AMRO
Bank N.V LOC) (A-1+, P-1)
3.10%............... 01/15/99 5,000 5,000,000
------------
6,000,000
------------
NORTH CAROLINA -- 5.02%
Mecklenburg County GO Series
1996C DN (NationsBank LOC)
(A-1, VMIG-1)
3.10%(1)............ 12/07/98 10,900 10,900,000
North Carolina Educational
Facilities RB (The Bowman Gray
School of Medicine Project)
Series 1997 DN (Wachovia Bank
LOC) (VMIG-1)
3.15%(1)............ 12/07/98 1,000 1,000,000
</TABLE>
- ------------------
(1) Variable rate
6
<PAGE> 7
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
North Carolina Medical Care
Commission Hospital RB (Angel
Medical Center Incorporated
Project) Series 1997 DN (First
Union Bank LOC)(A-1)
3.10%(1)............ 12/07/98 $ 2,900 $ 2,900,000
North Carolina Medical Care
Commission Hospital RB (Pooled
Financing Project) Series 1994
DN (First Union Bank LOC)
(VMIG-1)
3.10%(1)............ 12/07/98 1,600 1,600,000
Wake County IDA PCRB (Carolina
Power & Light Company Project)
Series 1985B DN (VMIG-1)
3.25%(1)............ 12/07/98 7,500 7,500,000
Wake County IDA PCRB (Carolina
Power & Light) Series 1985C DN
(First Union Bank LOC) (A-1+,
VMIG-1)
3.25%(1)............ 12/07/98 2,200 2,200,000
------------
26,100,000
------------
OHIO -- 2.25%
Clinton County Hospital RB
(Pooled Financing Programs)
Series 1998 DN (Fifth Third
Bank LOC) (A-1+)
3.30%(1)............ 12/07/98 2,000 2,000,000
Columbus GO Unlimited Tax DN
(Westdeutsche Landesbank
Girozentrale LOC) (A-1+,
VMIG-1)
3.00%(1)............ 12/07/98 800 800,000
Lucas County Health Facilities
Authority RB (Lutheran Homes
Society Project) DN (Bank One
Columbus LOC)(A-1+)
3.15%(1)............ 12/07/98 3,490 3,490,000
Montgomery County Economic
Development Authority RB
(Dayton Art Institute Project)
DN (National City Bank of
Cleveland LOC) (A-1, VMIG-1)
3.20%(1)............ 12/07/98 4,400 4,400,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
OHIO (CONTINUED)
Ohio Water Development Authority
PCRB (Cleveland Electric
Illuminating Company) Series
1997B DN (NBD Bank Corp LOC)
(A-1+, P-1)
3.15%(1)............ 12/07/98 $ 600 $ 600,000
Toledo City Services Special
Assessment Notes Series 1997
DN (Canadian Imperial Bank
LOC) (VMIG-1)
3.15%(1)............ 12/07/98 400 400,000
------------
11,690,000
------------
SOUTH CAROLINA -- 2.79%
Greenwood County Hospital RB
(Self Memorial Hospital)
Series B DN (Wachovia Bank
LOC) (VMIG-1)
3.15%(1)............ 12/07/98 9,580 9,580,000
South Carolina Economic
Development Authority Hospital
Facilities RB (Tuomey Regional
Medical Center) Series B DN
(Wachovia Bank LOC) (A-1+,
VMIG-1)
3.15%(1)............ 12/07/98 4,900 4,900,000
------------
14,480,000
------------
TENNESSEE -- 13.08%
City of Chattanooga Health,
Education & Housing Authority
RB (Baylor School Project) DN
(Suntrust Bank LOC)
3.20%(1)............ 12/07/98 700 700,000
City of Chattanooga Health,
Education & Housing Authority
RB (Girls Preparatory School
Project) Series 1998 DN
(Amsouth Bank of Alabama LOC)
(VMIG-1)
3.45%(1)............ 12/07/98 9,700 9,700,000
City of Tusculum Health,
Education & Housing Facility
Board Educational Facilities
RB (Tusculum College Project)
Series 1998 DN (Suntrust Bank
LOC)
3.20%(1)............ 12/07/98 6,000 6,000,000
</TABLE>
- ------------------
(1) Variable rate
7
<PAGE> 8
MUNIFUND PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
Clarksville Public Building
Authority (Pooled Financing
Municipal Fund) Series 1995 DN
(NationsBank LOC) (A-1+)
3.20%(1)............ 12/07/98 $ 6,350 $ 6,350,000
Clarksville Public Building
Authority Pooled Financing RB
(Tennessee Municipal Bond
Fund) Series 197 DN
(NationsBank LOC) (VMIG-1)
3.20%(1)............ 12/07/98 13,500 13,500,000
Dickson County IDRB (The
Renaissance Learning Center)
Series 1997 DN (Suntrust Bank
LOC)
3.20%(1)............ 12/07/98 4,000 4,000,000
Memphis GO Series 1995A DN
(Westdeutsche Landesbank
Girozentrale LOC) (A-1+,
VMIG-1)
3.30%(1)............ 12/07/98 1,000 1,000,000
Metropolitan Government
Nashville Davidson County
Health & Education Board
(Belmont University Project)
DN (Suntrust Bank LOC)
3.20%(1)............ 12/07/98 3,700 3,700,000
Metropolitan Government
Nashville Davidson County
Health & Education Board
(Harpeth Hall School Project)
DN (Suntrust Bank LOC)
3.20%(1)............ 12/07/98 460 460,000
Montgomery County Public
Building Authority Pooled
Financing GO (Tennessee County
Loan Pool) Series 1995 DN
(NationsBank LOC) (A-1+,
VMIG-1)
3.20%(1)............ 12/07/98 3,100 3,100,000
Montgomery County Public
Building Authority Pooled
Financing RB (Montgomery
County Loan Pool) Series 1996
DN (NationsBank LOC) (A-1+,
VMIG-1)
3.20%(1)............ 12/07/98 3,000 3,000,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
Montgomery County Public
Building Authority Pooled
Financing RB (Tennessee County
Loan Pool) DN (NationsBank
LOC) (VMIG-1)
3.20%(1)............ 12/07/98 $14,650 $ 14,650,000
Washington County IDRB
(Springbrook Properties
Project) Series 1996 DN
(Suntrust Bank LOC) (A-1+,
VMIG-1)
3.20%(1)............ 12/07/98 1,800 1,800,000
------------
67,960,000
------------
TEXAS -- 6.79%
Hockley County IDA PCRB (Amoco
Project) (A-1+, P-1)
3.00%............... 05/01/99 10,000 10,004,026
Texas TRAN (SP-1+, MIG-1)
4.50%............... 08/31/99 5,000 5,060,924
Texas TRAN Trust Receipts Series
A55 DN (National Westminster
LOC) (A-1+, VMIG-1)
3.95%(1)............ 12/01/98 6,700 6,700,000
Texas TRAN Trust Receipts Series
A57 DN (National Westminster
LOC) (SP-1+, VMIG-1)
3.95%(1)............ 12/01/98 5,000 5,000,000
Texas TRAN Trust Receipts Series
A59 DN (National Westminster
LOC) (A-1+, VMIG-1)
3.45%(1)............ 12/07/98 8,500 8,500,000
------------
35,264,950
------------
UTAH -- 3.67%
Intermountain Power Agency Power
Supply RB (AMBAC Insurance)
(A-1+, VMIG-1)
3.30%............... 03/15/99 5,000 5,000,000
Salt Lake City PCRB (Pooled
Hospital Financing) DN (A-1+,
VMIG-1)
3.10%(1)............ 12/07/98 7,050 7,050,000
</TABLE>
- ------------------
(1) Variable rate
8
<PAGE> 9
MUNIFUND PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
UTAH (CONTINUED)
Utah County Environmental
Improvement RB (USX
Corporation Project) (Wachovia
Bank LOC) (A-1+, VMIG-1)
3.60%............... 12/03/98 $ 7,000 $ 7,000,000
------------
19,050,000
------------
VERMONT -- 1.54%
Vermont IDA IDRB (Wallace
Computer Services
Incorporated) Series 1984 DN
(Wachovia Bank LOC)
3.15%(1)............ 12/07/98 8,000 8,000,000
------------
VIRGINIA -- 1.42%
City of Alexandria IDA RB (YMCA
of Metro Washington Facility)
Series 1998 DN (FNB Maryland
LOC) (A-1)
3.58%(1)............ 12/07/98 2,000 2,000,000
Lynchburg IDA Hospital RB (VHA
Mid-Atlantic States Capital
Asset Financing Program)
Series 1985B DN (AMBAC
Insurance) (A-1+)
3.30%(1)............ 12/07/98 2,200 2,200,000
Lynchburg IDA Hospital RB (VHA
Mid-Atlantic States Capital
Asset Financing Program)
Series 1985D DN (AMBAC
Insurance) (A-1+)
3.30%(1)............ 12/07/98 1,000 1,000,000
Lynchburg IDA Hospital RB (VHA
Mid-Atlantic States Capital
Asset Financing Program)
Series 1985G DN (NBD Bank Corp
LOC) (A-1, VMIG-1)
3.30%(1)............ 12/07/98 2,200 2,200,000
------------
7,400,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $517,558,534*)........... 99.63% $517,558,534
OTHER ASSETS IN EXCESS
OF LIABILITIES................. .37 1,937,872
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 467,863,098
MuniFund Shares and 51,745,224
MuniFund Dollar Shares
outstanding)................... 100.00% $519,496,406
------- ------------
------- ------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($519,496,406 / 519,608,322)............ $1.00
-----
-----
- --------------------------------------------------------
* Aggregate cost for federal income tax purposes is
substantially the same.
(1) Variable rate
</TABLE>
- -----------------------------------------------------
MUNIFUND PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C> <C> <C>
1- 30 days $395,425,000 76.4%
31- 60 days 5,000,000 1.0
61- 90 days 10,000,000 1.9
91-120 days 15,000,000 2.9
Over 150 days 91,918,000 17.8
Average Weighted Maturity -- 49 days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
MUNICASH PORTFOLIO
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statement of Net Assets
November 30, 1998
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ARIZONA -- 1.21%
Arizona State School District
Financing Program TAN Series A
(SP-1+)
4.10%............... 07/30/99 $ 2,000 $ 2,006,782
Phoenix IDRB (Leggett & Platt
Incorporated Project) AMT
(Wachovia Bank LOC)
3.25%(1)............ 12/07/98 5,170 5,170,000
------------
7,176,782
------------
ARKANSAS -- 1.06%
Arkansas Development Finance
Authority Single Family
Mortgage RB (Mortgage-Backed
Securities Program) (FGIC
Insurance) (A-1+)
3.75%............... 06/01/99 3,495 3,495,000
City of Blytheville IDRB (Nucor
Corporation) AMT
(A-1+, P-1)
3.30%(1)............ 12/07/98 2,800 2,800,000
------------
6,295,000
------------
CALIFORNIA -- 14.15%
California Statewide Community
Development Authority RB Trust
Receipts Series A DN (Bank of
New York LOC)(A-1+)
3.30%(1)............ 12/07/98 47,200 47,200,000
Los Angeles Convention &
Exposition Center RB Series D
DN (Bank of New York LOC)
(A-1+, VMIG-1)
3.30%(1)............ 12/07/98 18,200 18,200,000
Los Angeles County TRAN
(SP-1+, MIG-1)
4.50%............... 06/30/99 10,000 10,046,200
Southeast California Resource
Recovery Facilities Authority
Lease Revenue Refunding Bonds
Series A DN (Industrial Bank
of Japan LOC)
(A-1, VMIG-1)
4.35%(1)............ 12/07/98 8,300 8,300,000
------------
83,746,200
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
COLORADO -- 1.17%
Colorado Housing Finance
Authority Economic Development
RB (White Wave Incorporated
Project) AMT (Key Corporation
Bank, N.A. LOC)(A-1, P-1)
3.45%(1)............ 12/07/98 $ 3,400 $ 3,400,000
Douglas County School District
TAN (SP-1+, MIG-1)
3.75%............... 06/30/99 2,500 2,511,349
Jefferson County RB (Rocky
Mountain Butterfly Consortium
Project) DN (Norwest Bank LOC)
(A-1+)
3.25%(1)............ 12/07/98 1,000 1,000,000
------------
6,911,349
------------
FLORIDA -- 1.22%
Florida County School District
TAN
3.89%............... 06/30/99 4,700 4,703,582
Putnam County Development
Authority PCRB (Seminole
Electric Cooperative,
Incorporated Project)
(A-1+, VMIG-1)
3.65%............... 12/15/98 2,500 2,500,000
------------
7,203,582
------------
GEORGIA -- 9.56%
Burke County Development
Authority PCRB (Oglethorpe
Power Corporation Scherer
Project)
3.45%............... 05/01/99 14,215 14,215,000
3.40%............... 05/27/99 3,605 3,605,000
3.50%............... 05/28/99 10,570 10,570,000
Cobb County IDRB (John W. Rooker
Company Project) AMT (First
Union Bank LOC)
3.30%(1)............ 12/07/98 2,200 2,200,000
Dawson County Development
Authority IDRB (World Wide
Manufacturing Incorporated
Project) AMT (Wachovia
Bank LOC)
3.25%(1)............ 12/07/98 3,500 3,500,000
</TABLE>
- ------------------
(1) Variable rate
10
<PAGE> 11
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
GEORGIA (CONTINUED)
Dekalb County Housing Finance
Authority Multifamily Housing RB
(Eagle Trace Apartments Project)
AMT (Key Corporation Bank, N.A.
LOC) (A-1)
3.35%(1)............ 12/07/98 $ 4,675 $ 4,675,000
Fulton County Development
Authority RB (Metro Atlanta
YMCA Project) Series 1997 DN
(Wachovia Bank LOC) (VMIG-1)
3.10%(1)............ 12/07/98 4,000 4,000,000
Haralson County Development
Authority IDRB (Gold Kist
Incorporated Project) Series
1995 AMT (Wachovia Bank LOC)
3.25%(1)............ 12/07/98 2,500 2,500,000
Henry County Development Finance
Authority Solid Waste Disposal
RB (Atlas Roofing Corporation
Project) AMT (Sun Trust LOC)
3.30%(1)............ 12/07/98 4,100 4,100,000
Lafayette Education Development
Authority (The Dixie Group
Incorporated Project) AMT (Sun
Trust LOC)
3.30%(1)............ 12/07/98 2,000 2,000,000
Metropolitan Atlanta Rapid
Transit Authority Trust
Receipts DN (MBIA Insurance)
(VMIG-1)
3.45%(1)............ 12/07/98 5,200 5,200,000
------------
56,565,000
------------
IDAHO -- 0.64%
Idaho TAN (SP-1+, MIG-1)
4.50%............... 06/30/99 3,750 3,768,825
------------
ILLINOIS -- 14.60%
Belvidere IDRB (R&D Thiel
Incorporated Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
3.50%(1)............ 12/07/98 1,600 1,600,000
Chicago GO Tender Notes (Morgan
Guaranty LOC)
(A-1+, VMIG-1)
3.55%............... 02/04/99 5,000 5,000,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Chicago IDRB (Bullen Midwest
Incorporated Project) AMT
(Bank One Columbus LOC)
3.30%(1)............ 12/07/98 $ 2,055 $ 2,055,000
Chicago IDRB (Enterprise Center
IX Project) AMT (Banc One N.A.
LOC)(A-1+)
3.35%(1)............ 12/07/98 4,750 4,750,000
Chicago IDRB (Enterprise Center
VII Project) AMT (Banc One
N.A. LOC) (A-1+)
3.35%(1)............ 12/07/98 7,200 7,200,000
City of Harvey Multifamily
Housing RB (Bethlehem Village
Project) AMT (Federal Home
Loan Bank LOC)(A-1+)
3.45%(1)............ 12/07/98 3,400 3,400,000
Crawford County Manufacturing
Facilities RB (Fair-Rite
Products Corporation) AMT
(Corestates Bank N.A. LOC)
3.40%(1)............ 12/07/98 4,075 4,075,000
Illinois Development Finance
Authority IDRB (Azteca Foods
Project Incorporated) AMT
(ABN-AMRO Bank N.V. LOC)(A-1+)
3.35%(1)............ 12/07/98 3,400 3,400,000
Illinois Development Finance
Authority IDRB (Bhagvan H.
Patel Project) AMT (Bank One
Columbus LOC)(A-1+)
3.30%(1)............ 12/07/98 2,195 2,195,000
Illinois Development Finance
Authority IDRB (Big Bolt
Corporation Project) AMT
(ABN-AMRO Bank N.V. LOC)
3.63%(1)............ 12/07/98 3,200 3,200,000
Illinois Development Finance
Authority IDRB (Chiaravalle
Montessori School Project) DN
(Northern Trust LOC)
3.35%(1)............ 12/07/98 2,500 2,500,000
Illinois Development Finance
Authority IDRB (Henry Valve
Company Project) Series 1995
AMT (ABN-AMRO Bank N.V. LOC)
(A-1+)
3.35%(1)............ 12/07/98 3,755 3,755,000
</TABLE>
- ------------------
(1) Variable rate
11
<PAGE> 12
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Development Finance
Authority IDRB (Prairie Packaging
Incorporated Project) AMT (ABN-
AMRO Bank N.V. LOC) (A-1+)
3.35%(1)............ 12/07/98 $ 5,000 $ 5,000,000
Illinois Development Finance
Authority IDRB (Royal
Continental Box Project)
Series B AMT (ABN-AMRO Bank
N.V. LOC) (A-1+)
3.35%(1)............ 12/07/98 3,250 3,250,000
Illinois GO Bonds
4.70%............... 06/01/99 2,350 2,360,822
4.50%............... 08/01/99 500 504,394
Illinois Health Facilities
Authority RB (Evanston
Hospital Corporation)(A-1+,
VMIG-1)
3.15%............... 08/02/99 8,500 8,500,000
Lake County IDRB (Northpoint
Project) AMT (Bank One
Columbus LOC) (A-1+)
3.25%(1)............ 12/07/98 6,000 6,000,000
Lake Zurich IDRB (Screenflex
Portable Partitions
Incorporated Project) AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+)
3.35%(1)............ 12/07/98 2,575 2,575,000
Naperville Economic Development
Authority (Independence
Village Associates) DN
(National City Bank LOC)
3.30%(1)............ 12/07/98 2,815 2,815,000
Quad Cities Regional Development
Authority IDRB (Whitey's Ice
Cream Manufacturers
Incorporated) Series 1995 AMT
(Banc One N.A. LOC)
3.55%(1)............ 12/07/98 1,690 1,690,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1992 AMT
(Mellon Bank N.A. LOC)(VMIG-1)
3.40%(1)............ 12/07/98 2,900 2,900,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1994 AMT
(Mellon Bank N.A. LOC)(VMIG-1)
3.40%(1)............ 12/07/98 $ 3,600 $ 3,600,000
Sangamon County IDRB (Contech
Construction Project
Incorporated) Series 1997 AMT
(Mellon Bank N.A. LOC)
3.45%(1)............ 12/07/98 1,500 1,500,000
Village of North Aurora IDRB
(Oberweis Dairy Incorporated
Project) Series 1995 AMT
(ABN-AMRO Bank N.V. LOC)
(A-1+, VMIG-1)
3.35%(1)............ 12/07/98 2,570 2,570,000
------------
86,395,216
------------
INDIANA -- 3.68%
Bartholomew School District TAN
4.15%............... 12/31/98 5,651 5,652,350
Indiana Development Finance
Authority IDRB (Cives
Corporation Project) Series
1992 AMT (Wachovia Bank LOC)
(A-1+)
3.25%(1)............ 12/07/98 3,600 3,600,000
Indiana Development Finance
Authority IDRB (Enterprise
Center II Project) Series 1992
AMT (Bank One Columbus LOC)
(A-1)
3.35%(1)............ 12/07/98 3,000 3,000,000
Indiana Development Finance
Authority IDRB (Enterprise
Center V Project) Series 1992
AMT (Banc One N.A. LOC)(A-1+)
3.35%(1)............ 12/07/98 5,000 5,000,000
Jasper County Economic
Development RB (Wabash Valley
Produce Project) AMT (Bank One
Columbus LOC)
3.30%(1)............ 12/07/98 2,000 2,000,000
Newton County Economic
Development RB (Intec Group
Incorporated Project) Series
1995 AMT (ABN-AMRO Bank N.V.
LOC) (A-1+)
3.35%(1)............ 12/07/98 2,500 2,500,000
------------
21,752,350
------------
</TABLE>
- ------------------
(1) Variable rate
12
<PAGE> 13
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
KANSAS -- 0.42%
Shawnee Private Activity RB
(Simmons Company Project) AMT
(Sun Trust LOC)
(A-1+, VMIG-1)
3.30%(1)............ 12/07/98 $ 2,500 $ 2,500,000
------------
KENTUCKY -- 4.71%
City of Maysville Solid Waste
Disposal Facilities RB (Inland
Container Corporation Project)
Series 1992 AMT (P-1)
3.75%............... 12/08/98 5,165 5,165,000
City of Wilder Industrial
Building RB (Saratoga
Investments Limited
Partnerships) DN (Fifth Third
Bank LOC)
3.50%(1)............ 12/07/98 1,700 1,700,000
Elsmere IDRB (International Mold
Steel, Incorporated Project)
AMT (Star Banc Corporation
LOC)
3.52%(1)............ 12/07/98 1,885 1,885,000
Kentucky Interlocal School
Transportation Association
Certificates of Participation
TRAN (SP-1+)
3.90%............... 06/30/99 16,100 16,123,266
Kentucky State Housing
Corporation Housing RB Series
C (Morgan Guaranty LOC) (A-1+,
MIG-1)
3.70%............... 07/01/99 3,000 3,000,000
------------
27,873,266
------------
LOUISIANA -- 1.35%
Plaquemines Port, Harbor &
Terminal District Marine
Terminal Facilities Revenue
Refunding Bonds (Electro-Coal
Transfer Corporation Project)
(A-1+, P-1)
3.40%............... 01/11/99 8,000 8,000,000
------------
MARYLAND -- 2.03%
Maryland State Economic
Development Corporation RB
(Atlantic Pharmaceutical
Services Incorporated) AMT
(FNB Maryland LOC) (A-1)
3.73%(1)............ 12/07/98 5,225 5,225,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
MARYLAND (CONTINUED)
Ocean County RB (Harrison Inn
Fifty-Eight Limited
Partnership Facility) AMT (FNB
Maryland LOC)(A-1)
3.78%(1)............ 12/07/98 $ 4,760 $ 4,760,000
Wicomico County Economic
Development RB (Plymouth Tube
Company Project) AMT (NBD Bank
Corp. LOC) (VMIG-1)
3.30%(1)............ 12/07/98 2,000 2,000,000
------------
11,985,000
------------
MICHIGAN -- 1.33%
Michigan Municipal Bond
Authority Revenue Notes Series
D-2 (Bank of Nova Scotia LOC)
(SP-1+)
4.25%............... 08/27/99 3,000 3,014,283
Michigan State Strategic Fund RB
(Pioneer Metal Finishing
Company Project) AMT (National
City Bank of Cleveland LOC)
(A-1)
3.40%(1)............ 12/07/98 4,855 4,855,000
------------
7,869,283
------------
MINNESOTA -- 0.41%
Minnesota Agricultural Economic
Development Authority (Como
Partnership Project) AMT
(First Bank Systems, N.A. LOC)
3.55%(1)............ 12/07/98 2,405 2,405,000
------------
MISSOURI -- 2.20%
Maries County IDA Solid Waste
Management RB (Kingsford
Products Company Project) AMT
(A-1)
3.30%(1)............ 12/07/98 13,000 13,000,000
------------
NEW HAMPSHIRE -- 0.71%
New Hampshire State Business
Finance Authority IDRB (Felton
Brush Incorporated Project)
AMT (Key Corporation Bank,
N.A. LOC)
3.40%(1)............ 12/07/98 2,520 2,520,000
</TABLE>
- ------------------
(1) Variable rate
13
<PAGE> 14
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NEW HAMPSHIRE (CONTINUED)
New Hampshire State Housing
Finance Authority Multifamily
RB (Countryside L.P. Project)
AMT (General Electric Capital
Corporation LOC) (VMIG-1)
3.20%(1)............ 12/07/98 $ 1,700 $ 1,700,000
------------
4,220,000
------------
NEW JERSEY -- 7.47%
Essex County Public Improvement
Authority RB (County Asset
Sale Project) DN (Morgan
Guaranty LOC)(VMIG-1)
3.15%(1)............ 12/07/98 2,000 2,000,000
Fair Lawn BAN
3.95%............... 12/17/98 3,000 3,000,279
New Jersey Economic Development
Authority (Filtra Corporation
Project) Series 1995 AMT
(Chemical Bank LOC) (VMIG-1)
3.10%(1)............ 12/07/98 1,301 1,301,000
New Jersey Economic Development
Authority Natural Gas
Facilities RB (New Jersey
Natural Gas Company Project)
Series 1998C AMT (AMBAC
Insurance) (A-1+, VMIG-1)
2.80%(1)............ 12/07/98 2,300 2,300,000
New Jersey Economic Development
Authority RB (Facile Holdings
Incorporated Project) AMT
(First Union Bank LOC)
3.10%(1)............ 12/07/98 7,480 7,480,000
New Jersey Sports & Exhibition
Authority Series 1992C DN
(MBIA Insurance)(A-1+)
3.15%(1)............ 12/07/98 4,900 4,900,000
New Jersey State Economic
Development Authority PCRB
(Public Service Electric & Gas
Company) DN (Swiss Bank LOC)
(A-1+, VMIG-1)
3.00%(1)............ 12/07/98 6,700 6,700,000
New Jersey State Economic
Development Authority RB
(Cranes Mill Project) Series C
DN (Banque Paribas LOC)
(VMIG-1)
3.05%(1)............ 12/07/98 8,800 8,800,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NEW JERSEY (CONTINUED)
New Jersey State Economic
Development Authority RB
(Winchester Gardens Ward
Homestead Project) DN (Banque
Paribas LOC) (VMIG-1)
3.05%(1)............ 12/07/98 $ 245 $ 245,000
New Jersey Turnpike Authority RB
Series 1991D DN (Societe
Generale LOC) (A-1+, VMIG-1)
2.90%(1)............ 12/07/98 1,400 1,400,000
Ocean City GO Bonds
(FSA Insurance)
3.75%............... 04/01/99 700 700,292
Old Bridge Township GO
(FGIC Insurance)
4.60%............... 03/15/99 375 376,020
Salem County Pollution Control
Finance Authority (Atlantic
City Electric Company) Series
1997B AMT (Bank of New York
LOC) (A-1+, VMIG-1)
2.90%(1)............ 12/07/98 1,000 1,000,000
South Jersey Transportation
Authority Subordinated BAN
Series 1998 (SP-1+, MIG-1)
2.95%............... 11/03/99 3,000 3,000,000
West Orange BAN
3.25%............... 11/16/99 1,000 1,002,606
------------
44,205,197
------------
NEW YORK -- 2.89%
Long Island Power Authority
Electric Systems RB (Putters
Project) Series 43B DN (Credit
Suisse LOC) (VMIG-1)
3.35%(1)............ 12/07/98 17,100 17,100,000
------------
NORTH CAROLINA -- 2.77%
Charlotte Airport RB Series
1997A AMT (MBIA Insurance LOC)
(A-1+, VMIG-1)
3.15%(1)............ 12/07/98 4,650 4,650,000
Mecklenburg County GO Bonds
Series 1996B DN (NationsBank
LOC) (A-1+, VMIG-1)
3.10%(1)............ 12/07/98 2,600 2,600,000
</TABLE>
- ------------------
(1) Variable rate
14
<PAGE> 15
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
North Carolina Medical Care
Commission Hospital RB
(Lincoln Health System
Project) Series 1996A AMT
(Bank of America LOC)
(A-1, VMIG-1)
3.45%(1)............ 12/07/98 $ 3,400 $ 3,400,000
Wake County Industrial
Facilities Authority PCRB
(Carolina Power & Light
Company Project) Series B DN
(Sumitomo Bank LOC)
(A-1+, P-1)
3.25%(1)............ 12/07/98 2,900 2,900,000
Washington County Industrial
Facilities & Pollution Control
Finance Authority RB (Mackeys
Ferry Sawmill Incorporated
Project) AMT (Wachovia Bank
LOC)
3.20%(1)............ 12/07/98 1,700 1,700,000
Wilkes County Industrial
Facilities & Pollution Control
Financing Authority IDRB
(Schas Circular Industries)
Series 1997A AMT (Marine
Midland LOC)(A-1)
3.45%(1)............ 12/07/98 1,125 1,125,000
------------
16,375,000
------------
NORTH DAKOTA -- 0.35%
Mercer County Solid Waste
Disposal RB (United Power
Project) Series U AMT
(National Rural Utilities LOC)
(A-1+, P-1)
3.75%............... 12/01/98 2,100 2,100,000
------------
OHIO -- 10.01%
Canfield Local School District
BAN
3.80%............... 04/15/99 5,000 5,001,242
Cincinnati School District TAN
4.08%............... 12/31/98 3,000 3,001,145
City of Allen BAN
4.05%............... 04/13/99 2,000 2,002,106
City of Berea BAN
3.25%............... 04/15/99 3,185 3,185,000
City of Newark BAN
4.00%............... 03/12/99 1,081 1,082,008
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
OHIO (CONTINUED)
Cuyahoga County IDRB (Actron
Manufacturing Project) Series
1998 AMT (National City Bank
of Cleveland LOC)
3.45%(1)............ 12/07/98 $ 1,455 $ 1,455,000
Cuyahoga County IDRB (Cleveland
Gear Company Incorporated
Project) Series 1998 AMT (Key
Corporation Bank, N.A. LOC)
3.40%(1)............ 12/07/98 2,900 2,900,000
Erie County IDRB (Brighton Manor
Company Project) AMT (Bank One
Columbus LOC)
3.30%(1)............ 12/07/98 3,100 3,100,000
Gates Mills Village BAN
3.90%............... 06/15/99 3,900 3,903,225
Hamilton County Hospital
Facilities RB (Beechwood Home
Project) DN (Star Banc
Corporation LOC)
3.42%(1)............ 12/07/98 2,150 2,150,000
Lucas County Health Facilities
Authority RB (Lutheran Homes
Society Project) DN (Bank One
Columbus LOC)(A-1+)
3.15%(1)............ 12/07/98 5,000 5,000,000
Medina County Health Care
Facilities RB (The Oaks At
Medina Project) Series 1997B
DN (Bank One Columbus LOC)
3.20%(1)............ 12/07/98 2,100 2,100,000
Ohio Air Quality Development
Authority PCRB (Pennsylvania
Power Company Project) AMT
(NBD Bank Corp LOC)(A-1+)
3.20%(1)............ 12/07/98 4,500 4,500,000
Ohio Air Quality Development
Authority PCRB (PPG Industries
Incorporated) Series 1988A DN
(A-1)
3.70%(1)............ 12/07/98 900 900,000
Ohio Environmental Improvement
RB (United States Steel
Corporation Project) Series
1986 DN (Sanwa Bank LOC) (P-1)
3.10%(1)............ 12/07/98 1,300 1,300,000
</TABLE>
- ------------------
(1) Variable rate
15
<PAGE> 16
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
OHIO (CONTINUED)
Ohio State Higher Education
Facilities Commission RB (Pooled
Financing Program) Series 1998 DN
(Fifth Third Bank LOC)
3.20%(1)............ 12/07/98 $ 8,335 $ 8,335,000
Ohio Water Development Authority
PCRB (Cleveland Electric
Illuminating Company) Series
1997B DN (NBD Bank Corp LOC)
(A-1+, P-1)
3.15%(1)............ 12/07/98 4,400 4,400,000
Ohio Water Development Revenue
Refunding Bonds (Timken
Company Project) Series A DN
(Credit Suisse LOC)(A-1+, P-1)
3.20%(1)............ 12/07/98 1,500 1,500,000
Summit County IDRB (JRP Company
Incorporated Project) Series
1997 AMT (National City Bank
of Cleveland LOC)
3.45%(1)............ 12/07/98 3,400 3,400,000
------------
59,214,726
------------
OREGON -- 0.41%
Portland Multifamily Housing RB
(Village of Lovejoy Fountain)
AMT (Key Corporation Bank,
N.A. LOC)(A-1)
3.35%(1)............ 12/07/98 2,400 2,400,000
------------
PENNSYLVANIA -- 0.07%
State of Pennsylvania Public
School Building Authority
(Pennsbury School District
Project) Series C
4.50%............... 01/15/99 400 400,365
------------
TENNESSEE -- 2.26%
Chattanooga IDRB (Southern
Foundry Supply Company
Project) AMT (Sun Trust LOC)
3.30%(1)............ 12/07/98 2,700 2,700,000
City of Clarksville Public
Building Authority Pooled
Financing RB (Tennessee
Municipal Bond Fund) Series
1997 DN (NationsBank LOC)
(VMIG-1)
3.20%(1)............ 12/07/98 3,300 3,300,000
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
TENNESSEE (CONTINUED)
City of Jackson IDRB (Quadion
Corporation Project) AMT
(First Bank Systems, N.A. LOC)
(A-1)
3.45%(1)............ 12/07/98 $ 3,800 $ 3,800,000
Montgomery County Public
Building Authority GO
(Tennessee County Loan Pool)
DN (NationsBank LOC)(A-1)
3.20%(1)............ 12/07/98 3,585 3,585,000
------------
13,385,000
------------
TEXAS -- 5.89%
Brownsville County IDRB (Rich-
Seapak Corporation Project)
AMT (Sun Trust LOC)
3.30%(1)............ 12/07/98 2,500 2,500,000
City of Haltom IDRB (Molded
Products Company Project)
Series 1995 AMT (ABN-AMRO Bank
N.V. LOC)(A-1+)
3.35%(1)............ 12/07/98 3,300 3,300,000
Mesquite County IDRB (Morrison
Products Incorporated Project)
Series 1994 AMT (Society
National Bank of Cleveland
LOC) (VMIG-1)
3.35%(1)............ 12/07/98 1,500 1,500,000
Montgomery County IDRB (Sawyer
Research Products
Incorporated) AMT (Key
Corporation Bank, N.A. LOC)
3.40%(1)............ 12/07/98 1,805 1,805,000
Sulphur Springs IDRB (CMH
Manufacturing Incorporated
Project) AMT (Wachovia Bank
LOC)
3.25%(1)............ 12/07/98 4,030 4,030,000
Texas TRAN Trust Receipts Series
A55 DN (National Westminster
LOC) (A-1+, VMIG-1)
3.95%(1)............ 12/01/98 20,300 20,300,000
Texas TRAN Trust Receipts Series
A59 DN (National Westminster
LOC) (A-1+, VMIG-1)
3.45%(1)............ 12/07/98 1,400 1,400,000
------------
34,835,000
------------
</TABLE>
- ------------------
(1) Variable rate
16
<PAGE> 17
MUNICASH PORTFOLIO
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
UTAH -- 1.18%
Utah County Environmental
Improvement RB (USX
Corporation Project) (Wachovia
Bank LOC)
(A-1+, VMIG-1)
3.60%............... 12/03/98 $ 7,000 $ 7,000,000
------------
VIRGINIA -- 2.25%
Alexandria IDRB (Super & Curr
Project) DN (First Union Bank
LOC)(A-1)
3.10%(1)............ 12/07/98 2,500 2,500,000
Chesterfield County IDA RB
(Lumberg, Incorporated
Project) Series 1998 AMT
(NationsBank LOC) (A-1+)
3.30%(1)............ 12/07/98 1,000 1,000,000
King George County IDA Solid
Waste Disposal Facility RB
(Garnet of Virginia,
Incorporated Project) Series
1996 AMT (Morgan Guaranty LOC)
(A-1+)
3.20%(1)............ 12/07/98 2,900 2,900,000
Washington D.C. Metropolitan
Airport Authority Revenue
Notes (Bank of America LOC)
(A-1)
3.35%............... 01/25/99 6,900 6,900,000
------------
13,300,000
------------
WASHINGTON -- 0.43%
Pilchuck Public Development
Corporation RB (Holden-
McDaniels Partners, Project)
AMT (Key Corporation Bank,
N.A. LOC)
3.40%(1)............ 12/07/98 2,170 2,170,000
Washington State Housing Finance
Authority (Single Family
Mortgage Program) Series 5A
AMT (Bayerische Landesbank
Girozentrale LOC) (VMIG-1)
3.90%............... 12/15/98 380 380,000
------------
2,550,000
------------
</TABLE>
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ------------------------ -------- ------- ------------
<S> <C> <C> <C>
WEST VIRGINIA -- 0.94%
Fayette County Community Solid
Waste Disposal Facilities RB
(Georgia Pacific Corporation
Project) AMT (Industrial Bank
of Japan LOC)
3.30%(1)............ 12/07/98 $ 1,900 $ 1,900,000
West Virginia Economic
Development Authority IDRB
(North American Processing
Company Project) AMT (National
City Bank of Cleveland LOC)
3.45%(1)............ 12/07/98 2,670 2,670,000
West Virginia State Building
Commission Lease RB (West
Virginia Regional Jail
Project) Series A (AMBAC
Insurance)
4.50%............... 07/01/99 1,000 1,004,800
------------
5,574,800
------------
WISCONSIN -- 1.59%
City of Janesville IDRB (Freedom
Plastics Incorporated Project)
AMT (ABN-AMRO Bank N.V.
LOC)(A-1+)
3.35%(1)............ 12/07/98 2,400 2,400,000
Lodi School District TRAN
3.50%............... 10/27/99 3,400 3,405,940
Stevens Point RB (Consolidated
Paper Company Project) AMT
(Wachovia Bank LOC)
3.25%(1)............ 12/07/98 3,600 3,600,000
------------
9,405,940
------------
WYOMING -- 0.81%
Carbon County PCRB (Amoco
Company Project) (A-1+)
3.00%............... 05/01/99 4,800 4,801,933
------------
</TABLE>
- ------------------
(1) Variable rate
17
<PAGE> 18
MUNICASH PORTFOLIO
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $590,314,814*)............ 99.77% $590,314,814
OTHER ASSETS IN EXCESS OF
LIABILITIES..................... 0.23 1,343,434
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 500,356,378
MuniCash Shares and 91,428,193
MuniCash Dollar Shares
outstanding).................... 100.00% $591,658,248
------- ------------
------- ------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
($591,658,248 / 591,784,571)............. $1.00
-----
-----
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same. Market value of securities
subject to federal alternative minimum tax is 41.85% of
the total market value.
(1) Variable rate.
</TABLE>
- ------------------------------------------------------
MUNICASH PORTFOLIO
SUPPLEMENTARY INFORMATION
Maturity Schedule
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
------------- ------------ ----------
<S> <C> <C> <C> <C>
1- 30 days $443,471,000 75.1%
31- 60 days 23,951,000 4.1
61- 90 days 5,000,000 0.9
91-120 days 1,456,000 0.2
121-150 days 10,885,000 1.8
Over 150 days 105,385,000 17.9
Average Weighted Maturity -- 47 Days
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 19
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
IMPORTANT TAX INFORMATION
During the fiscal year ended November 30, 1998, 100% of the dividends paid
from net investment income of the MuniFund and MuniCash Portfolios were
exempt-interest dividends for purposes of federal income tax and free from such
tax.
However, 54.17% of the dividends from net investment income of the MuniCash
Portfolio must be taken into consideration in determining liability for federal
alternative minimum tax.
In January 1999, you will be furnished with a schedule showing the
percentage breakdown by state or U.S. possession of the source of interest
income of each portfolio in 1998.
------------------------------------------------------
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
DN Demand Note
GO General Obligation
IDA Industrial Development Authority
IDRB Industrial Development Revenue Bond
LOC Letter of Credit
PCRB Pollution Control Revenue Bond
RB Revenue Bond
TAN Tax Anticipation Notes
TECP Tax-Exempt Commercial Paper
TRAN Tax and Revenue Anticipation Note
</TABLE>
The Moody's Investors Service, Inc. and Standard & Poor's Ratings Service
ratings of the investments in the various Portfolios are believed to be the most
recent ratings available at November 30, 1998. The ratings have not been audited
by the Independent Auditors and, therefore are not covered by the Independent
Auditors' Report.
19
<PAGE> 20
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Operations
Year Ended November 30, 1998
<TABLE>
<CAPTION>
MUNIFUND MUNICASH
PORTFOLIO PORTFOLIO
----------- -----------
<S> <C> <C>
Investment income:
Interest income......................................... $21,174,463 $20,503,879
----------- -----------
Expenses:
Investment advisory fee................................. 1,057,053 983,615
Administration fee...................................... 1,057,053 983,615
Trustees' fees and officer's salary..................... 51,577 58,561
Transfer agent fee...................................... 64,677 39,561
Custodian fee........................................... 128,497 121,370
Legal and audit......................................... 34,478 38,542
Registration expenses................................... 33,722 17,591
Printing................................................ 10,823 8,375
Other................................................... 27,410 12,636
----------- -----------
2,465,290 2,263,866
Less fees waived........................................ (978,751) (1,231,761)
----------- -----------
1,486,539 1,032,105
Service Organization fees -- Dollar Shares.............. 144,751 273,684
----------- -----------
Total expenses..................................... 1,631,290 1,305,789
----------- -----------
Net investment income................................... 19,543,173 19,198,090
Realized gain (loss) on investments:
Net realized gain (loss) from security transactions..... (28,931) 22,258
----------- -----------
Net increase in net assets resulting from operations.... $19,514,242 $19,220,348
=========== ===========
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO MUNICASH PORTFOLIO
------------------ ------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................. $ 19,543,173 $ 23,313,742 $ 19,198,090 $ 16,148,324
Net gain (loss) on investments.................... (28,931) (12,899) 22,258 18,102
--------------- --------------- --------------- ---------------
Net increase in net assets resulting from
operations.................................... 19,514,242 23,300,843 19,220,348 16,166,426
--------------- --------------- --------------- ---------------
Dividends to shareholders from net investment income:
MuniFund Shares................................... (17,790,533) (21,420,775) -- --
MuniFund Dollar Shares............................ (1,752,640) (1,892,967) -- --
MuniCash Shares................................... -- -- (15,680,768) (12,338,904)
MuniCash Dollar Shares............................ -- -- (3,517,322) (3,809,420)
--------------- --------------- --------------- ---------------
Total dividends to shareholders................. (19,543,173) (23,313,742) (19,198,090) (16,148,324)
--------------- --------------- --------------- ---------------
Capital share transactions (at $1 per share):
Proceeds from sale of shares...................... 6,673,818,445 6,510,103,572 7,310,136,946 6,354,866,941
Value of shares issued in reinvestment of
dividends....................................... 4,390,167 4,991,057 8,616,660 7,730,075
Cost of shares repurchased........................ (6,762,863,889) (6,502,501,131) (7,274,887,652) (6,197,916,583)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets derived from
capital share transactions.................... (84,655,277) 12,593,498 43,865,954 164,680,433
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets......... (84,684,208) 12,580,599 43,888,212 164,698,535
Net assets:
Beginning of period................................... 604,180,614 591,600,015 547,770,036 383,071,501
--------------- --------------- --------------- ---------------
End of period......................................... $ 519,496,406 $ 604,180,614 $ 591,658,248 $ 547,770,036
=============== =============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 22
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
MUNIFUND SHARES
-------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
-------------------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .0327 .0338 .0326 .0360 .0255
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0327) (.0338) (.0326) (.0360) (.0255)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total Return.................. 3.32% 3.43% 3.31% 3.66% 2.58%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 467,760 536,794 530,204 720,318 687,895
Ratio of Expenses to Average
Daily Net Assets(1)......... .25%(2) .27% .27% .27% .26%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.26% 3.38% 3.26% 3.59% 2.53%
<CAPTION>
MUNIFUND DOLLAR SHARES
---------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
---------------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... .0302 .0313 .0301 .0335 .0230
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0302) (.0313) (.0301) (.0335) (.0230)
------- ------- ------- ------- -------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total Return.................. 3.07% 3.18% 3.06% 3.41% 2.33%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 51,736 67,387 61,396 6,474 2,785
Ratio of Expenses to Average
Daily Net Assets(1)......... .50%(2) .52% .52% .52% .51%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.01% 3.13% 3.01% 3.34% 2.28%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.41%, 0.41%, 0 .42%,
0.41% and 0.41%, respectively, for the years ended November 30, 1998, 1997,
1996, 1995 and 1994 for MuniFund Shares and 0.66%, 0.66%, 0.67%, 0.66% and
0.66%, respectively, for the years ended November 30, 1998, 1997, 1996, 1995
and 1994 for MuniFund Dollar Shares.
(2) Effective October 1, 1998, the expense ratio was reduced from 0.27% to 0.20%
for the MuniFund Shares and from 0.52% to 0.45% for the MuniFund Dollar
Shares.
See accompanying notes to financial statements.
22
<PAGE> 23
MUNICIPAL FUND FOR TEMPORARY INVESTMENT
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
MUNICASH SHARES
--------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
--------------------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- --------- ---------
Income From Investment
Operations:
Net Investment Income....... .0346 .0358 .0350 .0382 .0266
------- ------- ------- --------- ---------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0346) (.0358) (.0350) (.0382) (.0266)
------- ------- ------- --------- ---------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ========= =========
Total Return.................. 3.51% 3.63% 3.56% 3.89% 2.69%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 500,254 397,681 281,544 321,642 273,439
Ratio of Expenses to Average
Daily Net Assets(1)......... .18%(2) .18% .18% .18% .19%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.47% 3.58% 3.50% 3.83% 2.59%
<CAPTION>
MUNICASH SHARES
--------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
--------------------------------------------------------------
1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Income From Investment
Operations:
Net Investment Income....... .0321 .0333 .0325 .0357 .0241
------ ------ ------ ------ ------
Less Distributions:
Dividends to Shareholders
from Net Investment
Income.................... (.0321) (.0333) (.0325) (.0357) (.0241)
------ ------ ------ ------ ------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return.................. 3.26% 3.38% 3.31% 3.64% 2.44%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000)...................... 91,404 150,089 101,528 101,424 99,688
Ratio of Expenses to Average
Daily Net Assets(1)......... .43%(2) .43% .43% .43% .44%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 3.22% 3.33% 3.25% 3.58% 2.34%
</TABLE>
- ---------------
(1) Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets would have been 0.40%, 0.41%, 0.42%,
0.41% and 0.42%, respectively, for the years ended November 30, 1998, 1997,
1996, 1995 and 1994 for MuniCash Shares and 0.65%, 0.66%, 0.67%, 0.66% and
0.67%, respectively, for the years ended November 30, 1998, 1997, 1996, 1995
and 1994 for MuniCash Dollar Shares.
(2) Effective October 1, 1998, the expense ratio was increased from 0.18% to
0.20% for the MuniCash Shares and from 0.43% to 0.45% for the MuniCash
Dollar Shares.
See accompanying notes to financial statements.
23
<PAGE> 24
Notes to Financial Statements
A. Municipal Fund for Temporary Investment (the "Company"), a Pennsylvania
common law trust, is registered under the Investment Company Act of 1940, as
amended, as a diversified open-end management investment company. The Company
consists of two separate portfolios: MuniFund and MuniCash.
Each portfolio has two classes of shares, one class being referred to as
Dollar Shares. Dollar Shares and the other class of shares of each portfolio are
identical in all respects, except that Dollar Shares are sold to institutions
(Service Organizations) 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 Dollar
Shares held for the benefit of their customers. The Service Organization fee is
charged to the earnings of the respective Dollar Shares. Expenses, other than
the Service Organization fee, are allocated between the two classes based on
their relative assets.
B. Significant accounting policies are as follows:
Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that 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 these estimates. The following is a summary of significant accounting
policies consistently followed by the Company in the preparation of its
financial statements.
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 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.
Dividends to Shareholders -- Dividends from net income are declared daily
and paid monthly. Dividends payable are recorded on the dividend record date.
Net income for dividend purposes includes interest accrued less amortization of
market premium and accrued expenses. Net realized capital gains, if any, are
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.
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 of the Company are allocated among
the Company's portfolios based on their relative average net assets.
C. Under agreements among the Company, PNC Bank, National Association ("PNC
Bank") and Blackrock Institutional Management Corporation ("BIMC"), an indirect
majority owned subsidiary of PNC Bank, BIMC manages the Company's portfolios and
maintains their financial accounts. PNC Bank is the Company's sub-advisor and
custodian, and PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC
Bank, is the Company's transfer agent.
In March 1998, BIMC (formerly known as PNC Institutional Management
Corporation) assumed the responsibilities of PNC Bank, as sub-advisor, to
provide research, credit analysis
24
<PAGE> 25
Notes to Financial Statements (Continued)
and recommendations with respect to the Company's investments and supply certain
computer facilities, personnel and other services. The personnel and facilities
related to these services have been transferred to BIMC and BIMC's obligation to
pay to PNC Bank a portion of the advisory fee has been terminated.
Provident Distributors, Inc. ("PDI") serves as the Company's Distributor.
No compensation is payable by the Company to PDI for its distribution services.
The Company has entered into an Administration Agreement with PFPC and PDI
(the "Administrators") for certain administrative services.
In return for their advisory and administrative services, the Company pays
BIMC and the Administrators each a fee, computed daily and payable monthly,
based upon an annualized percentage of the average daily net assets of the
Company's portfolios, considered separately, as follows: .175% of the first $1
billion, .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 any portfolio in any fiscal year exceed the applicable
expense limitation imposed by state securities regulations, the Administrators
and BIMC 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 BIMC have also agreed to reduce their fees, on an
equal basis, to the extent necessary to ensure that the total operating expenses
(excluding Service Organization fees) of the MuniFund Portfolio and the MuniCash
Portfolio do not exceed .20% of each portfolio's average daily net assets.
For the year ended November 30, 1998 the Administrators and BIMC
voluntarily waived $978,751 of the advisory and administration fees payable to
them with respect to MuniFund and $1,231,761 with respect to MuniCash.
There were no Service Organization fees paid to affiliates of BIMC for the
year ended November 30, 1998.
D. The Company's Declaration of Trust permits the trustees to authorize the
issuance of an unlimited number of full and fractional units of beneficial
interest ("shares") in the Company and to classify or reclassify any unissued
shares into one or more additional series of shares.
25
<PAGE> 26
Notes to Financial Statements (Concluded)
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
MUNIFUND PORTFOLIO
---------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
------------------------ ------------------------
<S> <C> <C>
Shares sold:
MuniFund........................................ 6,507,334,293 6,227,675,068
MuniFund Dollar................................. 166,484,152 282,428,504
Shares issued in reinvestment of dividends:
MuniFund........................................ 2,746,208 3,196,915
MuniFund Dollar................................. 1,643,959 1,794,142
Shares repurchased:
MuniFund........................................ (6,579,088,822) (6,224,270,348)
MuniFund Dollar................................. (183,775,067) (278,230,783)
-------------- --------------
Net increase (decrease) in shares.......... (84,655,277) 12,593,498
============== ==============
</TABLE>
<TABLE>
<CAPTION>
MUNICASH PORTFOLIO
---------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
------------------------ ------------------------
<S> <C> <C>
Shares sold:
MuniCash........................................ 7,022,119,234 6,053,929,400
MuniCash Dollar................................. 288,017,712 300,937,541
Shares issued in reinvestment of dividends:
MuniCash........................................ 5,807,076 5,097,511
MuniCash Dollar................................. 2,809,584 2,632,564
Shares repurchased:
MuniCash........................................ (6,925,371,487) (5,942,903,293)
MuniCash Dollar................................. (349,516,165) (255,013,290)
-------------- --------------
Net increase in shares..................... 43,865,954 164,680,433
============== ==============
</TABLE>
On November 30, 1998, one shareholder held approximately 21% of the outstanding
shares of MuniFund and two shareholders held approximately 26% of the
outstanding shares of MuniCash.
E. At November 30, 1998, capital loss carryovers, expiring at various times from
2002 to 2006, were available to offset possible future capital gains of the
respective portfolios, as follows: MuniFund, $111,916 and MuniCash, $126,323.
F. At November 30, 1998, net assets consisted of the following:
<TABLE>
<CAPTION>
MUNIFUND MUNICASH
------------ ------------
<S> <C> <C>
Paid-in capital............................................. $519,608,322 $591,784,571
Accumulated net realized loss on investments................ (111,916) (126,323)
------------ ------------
Total Net Assets............................................ $519,496,406 $591,658,248
============ ============
</TABLE>
26
<PAGE> 27
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Trustees
Municipal Fund for Temporary Investment:
We have audited the accompanying statements of net assets of Municipal Fund
for Temporary Investment (comprising, respectively, the MuniFund and MuniCash
Portfolios, the "Funds") as of November 30, 1998, 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 five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund'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 inspection of and confirmation by
correspondence with the custodians of investments owned as of November 30, 1998.
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 constituting Municipal Fund for Temporary
Investment as of November 30, 1998, 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 five years in
the period then ended, in conformity with generally accepted accounting
principles.
KPMG LLP
Philadelphia, Pennsylvania
January 8, 1999
27
<PAGE> 28
Trustees
G. Willing Pepper
Chairman
G. Nicholas Beckwith III
Philip E. Coldwell
Robert R. Fortune
Jerrold B. Harris
Rodney D. Johnson
Officers
Thomas H. Nevin
President
Lisa M. Buono
Treasurer
W. Bruce McConnel, III
Secretary
Investment Adviser
BlackRock 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-009
MUNIFUND
MUNICASH
Investment Portfolios
Offered by
Municipal Fund for
Temporary Investment
[-- PROVIDENT INSTITUTIONAL FUNDS -- LOGO]
Annual Report to Shareholders
November 30, 1998
