<PAGE>
400 Bellevue Parkway
4th Floor
[Logo of Provident Institutional Funds] Wilmington, DE 19809
302-793-8100
www.pif.com
April 30, 1999
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of TempFund
and TempCash for the period ended March 31, 1999.
Commentary on the United States' improving economy and on recent
developments in our Funds are contained in the accompanying Investment
Adviser's Report.
We would like to thank our shareholders for a successful proxy which
resulted in the reorganization of the Provident Institutional Funds into a
single Delaware business trust.
Provident Institutional Funds offers a variety of high quality Taxable and
Tax-Exempt Money Market Funds designed to meet the varied needs of our
investors. Please contact your account representative or call our Client
Service Center at (800) 821-7432 to discuss your investment options. We
welcome the opportunity to serve you.
Sincerely,
/s/ Rodney D. Johnson
Rodney D. Johnson
Chairman
<PAGE>
TEMPFUND AND TEMPCASH
Semi-Annual Investment Adviser's Report
United States government securities were the clear beneficiary of the global
financial turbulence that dominated the markets in the second half of 1998.
Propelled by a strong flight to safety, yields on short-term treasury and
agency obligations fell sharply. Three-month treasury bill yields declined to
as low as 3.65% in October, a drop of over 100 basis points in less than six
months. The reasons for such a strong rally were many. The financial crisis
that started a year ago spread to South America, Latin America and especially
Russia where a devaluation and default made the situation appear particularly
ominous. The rescue of a large U.S. based hedge fund in September also weighed
heavily on investor confidence. As the threat of economic recession reaching
the United States mounted, the Federal Reserve began an aggressive campaign to
add liquidity to the financial system. Between September 29 and November 17,
the Federal Reserve eased monetary policy three times, taking the federal
funds rate down to 4.75%.
The U.S. economy ended 1998 in strong fashion, with gross domestic product up
6.1%, the largest increase in two years. First quarter activity remained
strong, with a twenty-nine year low in unemployment and sharp gains in
productivity. The good fortune of the healthy economy and low inflation,
however, is not without some risks. Oil prices, for example were up 22% in
March, and economic weakness continued in Brazil and Latin America.
Early in the period, the money markets witnessed a flattening of the yield
curve as sentiment shifted toward an accommodative Federal Reserve that was
willing to lower short-term interest rates to protect U.S. economic interests.
In this environment, TempFund and TempCash sought to maintain moderately
extended average maturities to lessen the impact of lower rates. TempFund,
with its AAA rating, targeted a 50-55 day maturity, while TempCash was a
little longer at 60-65 days. Recently, some investments have been made into
early 2000 to benefit from a slight positive yield curve. The other key
initiative over the last six months was the emphasis on portfolio credit
quality, as both foreign and domestic banks and financial services companies
came under intense ratings scrutiny. During the fourth quarter, we proactively
restricted many of the bank and broker credits on our approved lists of
eligible issuers. Finally both portfolios continued their strong asset growth.
TempFund's assets increased from $10 billion on September 30, 1998 to $11.6
billion on March 31, 1999, after reaching a peak of $16.6 billion in February.
TempCash ended the period at $2.9 billion, unchanged from last September, but
it too attained a peak of over $5 billion in January. The reduction in assets
in February and March was primarily attributable to temporary periods of
unusually high overnight rates.
We appreciate your continued interest in TempFund and TempCash and look
forward to meeting your liquidity needs in the future. TempFund was recently
rated by Lipper, as the number one ranked institutional money market fund for
the twenty-year period ended December 31, 1998.
BlackRock Institutional Management
Corporation
2
<PAGE>
Provident Institutional Funds
TempFund Portfolio
Statement of Net Assets
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- -------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--13.0%
Bank Notes--0.9%
Northern Trust Bank (A-1+, P-1)
5.81%......................................... 04/30/99 $100,000 $ 99,996,958
-------------
Domestic Certificates Of Deposit--12.1%
Chase Manhattan Bank (A-1+, P-1)
5.73%......................................... 05/17/99 50,000 49,996,243
First National Bank of Chicago
(A-1+, P-1)
4.93%......................................... 04/06/99 150,000 150,000,208
4.93%......................................... 05/06/99 150,000 150,001,442
4.88%......................................... 05/24/99 200,000 200,000,000
5.05%......................................... 02/09/00 100,000 99,975,115
First Tennessee Bank (A-1, P-1)
5.72%......................................... 04/23/99 100,000 99,997,113
4.88%......................................... 05/10/99 100,000 99,998,926
4.91%......................................... 06/08/99 70,000 69,998,694
5.02%......................................... 09/01/99 50,000 50,000,000
First Union National Bank (A-1, P-1)
5.31%......................................... 09/14/99 50,000 50,049,416
Fleet National Bank (A-1, P-1)
4.91%......................................... 08/03/99 75,000 75,000,000
Lasalle National Bank (A-1+, P-1)
5.71%......................................... 04/01/99 40,000 40,000,000
4.95%......................................... 04/28/99 75,000 75,000,000
5.00%......................................... 05/17/99 25,000 25,000,000
4.93%......................................... 07/19/99 75,000 75,002,226
NationsBank (A-1+, P-1)
5.00%......................................... 01/05/00 100,000 99,985,250
-------------
1,410,004,633
-------------
Total Certificates of Deposit
(Cost $1,510,001,591)............................................ 1,510,001,591
-------------
COMMERCIAL PAPER--55.0%
Aircraft Engines & Parts--3.1%
Allied Signal Inc. (A-1, P-1)
4.8199%....................................... 04/27/99 50,000 49,825,944
4.8199%....................................... 05/03/99 93,862 93,459,853
4.8299%....................................... 05/17/99 50,000 49,691,417
4.83%......................................... 05/17/99 50,000 49,691,417
</TABLE>
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- ------- ------------
<S> <C> <C> <C>
4.85%........................................... 05/20/99 $25,000 $ 24,834,965
4.83%........................................... 05/24/99 25,000 24,822,229
4.8299%......................................... 05/25/99 25,000 24,818,875
4.87%........................................... 06/08/99 47,500 47,063,053
------------
364,207,753
------------
Asset Backed Securities--21.8%
Barton Capital Corp. (A-1+, P-1)
4.87%........................................... 04/07/99 164,720 164,586,302
Corporate Asset Funding (A-1+, P-1)
4.84%........................................... 05/24/99 50,000 49,643,722
Corporate Receivables Corp. (A-1+, P-1)
4.8799%......................................... 04/07/99 25,000 24,979,667
4.88%........................................... 04/12/99 70,000 69,895,622
4.88%........................................... 04/13/99 50,000 49,918,667
4.8699%......................................... 04/14/99 29,053 29,001,907
4.87%........................................... 04/20/99 150,000 149,614,458
4.8699%......................................... 04/28/99 7,500 7,472,606
4.8699%......................................... 04/29/99 50,000 49,810,611
4.87%........................................... 04/29/99 50,000 49,810,611
4.84%........................................... 05/11/99 50,000 49,731,111
4.84%........................................... 05/24/99 75,000 74,465,583
Dakota Certificates Program (A-1+, P-1)
4.8999%......................................... 04/09/99 100,000 99,891,111
4.8999%......................................... 04/12/99 100,000 99,850,278
4.8999%......................................... 04/13/99 100,000 99,836,667
Delaware Funding Corp. (A-1+, P-1)
4.88%........................................... 06/04/99 50,631 50,191,748
Old Line Funding Corp. (A-1+, P-1)
4.8699%......................................... 04/09/99 217,804 217,568,288
4.87%........................................... 04/14/99 181,352 181,033,072
4.89%........................................... 04/15/99 201,132 200,749,514
Pooled Accounts Receivable Capital Corp. (A-1+, P-1)
4.8799%......................................... 04/12/99 40,274 40,213,947
4.88%........................................... 04/15/99 91,245 91,071,837
4.90%........................................... 06/11/99 49,792 49,310,816
4.86%........................................... 06/17/99 20,249 20,038,512
Quincy Capital Corp. (A-1+, P-1)
4.86%........................................... 04/23/99 96,157 95,871,414
Receivable Capital Corp. (A-1+, P-1)
4.86%........................................... 04/23/99 55,757 55,591,402
</TABLE>
3
<PAGE>
TempFund Portfolio
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- ------- -------------
<S> <C> <C> <C>
COMMERICAL PAPER (continued)
Asset Backed Securities (continued)
Windmill Funding Corp. (A-1+, P-1)
4.87%....................................... 04/12/99 $26,443 $ 26,403,651
4.87%....................................... 04/13/99 26,542 26,498,913
4.8699%..................................... 04/14/99 26,000 25,954,276
4.87%....................................... 04/16/99 33,035 32,967,966
4.87%....................................... 04/20/99 50,000 49,871,486
4.87%....................................... 04/21/99 30,954 30,870,252
4.8699%..................................... 04/23/99 34,158 34,056,342
4.8699%..................................... 04/27/99 55,791 55,594,771
4.87%....................................... 04/28/99 30,000 29,890,425
4.87%....................................... 04/29/99 75,000 74,715,917
4.8699%..................................... 04/30/99 75,000 74,705,771
-------------
2,531,679,243
-------------
Banks--3.4%
J.P. Morgan & Co, Inc. (A-1+, P-1)
4.82%....................................... 06/28/99 125,000 123,527,222
4.84%....................................... 06/28/99 125,000 123,521,111
4.8299%..................................... 09/27/99 75,000 73,198,813
4.84%....................................... 09/27/99 75,000 73,195,083
-------------
393,442,229
-------------
Beverages--0.6%
Coca-Cola Co. (A-1+, P-1)
4.87%....................................... 04/22/99 25,000 24,928,979
4.87%....................................... 04/23/99 50,000 49,851,194
-------------
74,780,173
-------------
Insurance Agents, Brokers & Services--0.9%
Marsh & McLennan Co., Inc. (A-1+, P-1)
4.85%....................................... 04/09/99 100,000 99,892,222
-------------
Life Insurance--2.3%
Metlife Funding, Inc. (A-1+, P-1)
4.8399%..................................... 04/13/99 50,000 49,919,333
4.84%....................................... 04/14/99 23,586 23,544,777
4.84%....................................... 04/15/99 43,105 43,023,867
Prudential Funding Corp. (A-1, P-1)
4.80%....................................... 06/14/99 100,000 99,013,333
4.8199%..................................... 06/14/99 50,000 49,504,611
-------------
265,005,921
-------------
</TABLE>
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- ------- ------------
<S> <C> <C> <C>
Miscellaneous Business Credit Institutions--0.6%
National Rural Utilities Coop.
Finance Corp. (A-1+, P-1)
4.8099%......................................... 04/27/99 $69,400 $ 69,158,912
------------
Motor Vehicles & Car Bodies--1.7%
DaimlerChrysler North America Holding Corp.
(A-1, P-1)
4.85%........................................... 04/29/99 100,000 99,649,722
4.85%........................................... 04/29/99 100,000 99,622,778
------------
199,272,500
------------
Personal Credit Institutions--7.4%
Associates Corp. of North America (A-1, P-1)
4.86%........................................... 05/10/99 70,000 69,631,450
4.86%........................................... 05/11/99 70,000 69,622,000
4.8299%......................................... 05/26/99 100,000 99,262,083
4.83%........................................... 05/27/99 40,000 39,699,467
4.8299%......................................... 06/30/99 75,000 74,094,375
Chrysler Financial Co. (A-1, P-1)
4.84%........................................... 05/24/99 50,000 49,643,722
Ford Motor Credit Corp. (A-1, P-1)
4.83%........................................... 04/26/99 160,000 159,463,333
General Motors Acceptance Corp. (A-1, P-1)
4.83%........................................... 05/13/99 300,000 298,309,500
------------
859,725,930
------------
Petroleum Refining--0.4%
Shell Oil Co. (A-1+, P-1)
4.8199%......................................... 05/12/99 50,000 49,725,528
------------
Pharmaceutical Preparations--2.3%
Johnson & Johnson (A-1+, P-1)
4.7499%......................................... 04/20/99 86,725 86,507,585
4.75%........................................... 05/05/99 110,000 109,506,528
4.86%........................................... 06/28/99 70,000 69,168,400
------------
265,182,513
------------
Security Brokers & Dealers--2.9%
Morgan Stanley Group, Inc. (A-1, P-1)
4.81%........................................... 05/17/99 150,000 149,078,083
4.82%........................................... 08/20/99 100,000 98,112,167
4.8799%......................................... 09/07/99 100,000 97,844,667
------------
345,034,917
------------
</TABLE>
4
<PAGE>
TempFund Portfolio
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- ------- -------------
<S> <C> <C> <C>
COMMERCIAL PAPER (continued)
Services--Equipment Rental & Lease--0.2%
International Lease Finance Corp. (A-1+, P-1)
4.8199%........................................ 05/07/99 $25,000 $ 24,879,500
-------------
Short-Term Business Credit Institutions--6.5%
American Express Credit Corp. (A-1, P-1)
4.81%.......................................... 11/19/99 100,000 96,900,222
General Electric Capital Corp. (A-1+, P-1)
4.89%.......................................... 06/09/99 100,000 99,062,750
4.8099%........................................ 06/28/99 100,000 98,824,222
4.8099%........................................ 06/30/99 125,000 123,496,875
4.82%.......................................... 07/23/99 90,000 88,638,350
4.7799%........................................ 08/24/99 200,000 196,149,444
4.81%.......................................... 11/10/99 50,000 48,510,237
-------------
751,582,100
-------------
Telephone Communications--0.9%
American Telephone & Telegraph Co. (A-1+, P-1)
4.8199%........................................ 04/22/99 101,500 101,214,616
-------------
Total Commercial Paper
(Cost $6,394,784,057)........................................... 6,394,784,057
-------------
CORPORATE BONDS--2.6%
Banks--0.1%
First America Michigan (A-1, P-1)
6.25%.......................................... 06/28/99 11,000 11,027,936
-------------
Security Brokers & Dealers--2.5%
Goldman Sachs Group (A-1+, P-1)
5.05%.......................................... 06/16/99 120,000 120,000,000
5.05%.......................................... 08/04/99 75,000 75,000,000
5.10%.......................................... 11/15/99 100,000 100,000,000
-------------
295,000,000
-------------
Total Corporate Bonds
(Cost $306,027,936)............................................. 306,027,936
-------------
VARIABLE RATE OBLIGATIONS+--21.7%
Banks--7.3%
First National Bank of Chicago (A-1+, P-1)
4.8118%........................................ 04/27/99 96,000 95,981,804
4.8118%........................................ 04/28/99 50,000 49,990,442
</TABLE>
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- ------------
<S> <C> <C> <C>
First Union National Bank (A-1, P-1)
4.9075%..................................... 04/19/99 $100,000 $100,000,000
Key Bank National Association (A-1, P-1)
4.8868%..................................... 04/29/99 125,000 124,969,007
National City Bank of Cleveland (A-1, P-1)
4.845%...................................... 04/07/99 200,000 199,989,295
National City Indiana (A-1, P-1)
4.8146%..................................... 04/20/99 143,000 142,995,976
Wells Fargo & Company (A-1, P-1)
4.88%....................................... 06/30/99 130,000 129,892,842
------------
843,819,366
------------
Beverages--2.4%
Pepsico (A-1, P-1)
4.81%....................................... 05/19/99 281,000 280,878,380
------------
Federal National Mortgage Association--0.9%
Federal National Mortgage Association Variable Rate Notes
4.511%...................................... 04/06/99 100,000 100,000,000
------------
Finance Lessors--0.7%
General Electric Capital Corp. (A-1+, P-1)
4.905%...................................... 06/09/99 80,000 79,992,581
------------
Miscellaneous Business Credit Institutions--0.7%
John Deere Capital Corp. (A-1, P-1)
4.8746%..................................... 04/22/99 80,000 79,977,118
------------
Personal Credit Institutions--0.5%
Norwest Corp. (A-1+, P-1)
4.95%....................................... 06/21/99 60,000 59,997,284
------------
Security Brokers & Dealers--7.5%
Bear Stearns Companies, Inc. (A-1, P-1)
4.94%....................................... 05/18/99 175,000 175,000,000
Goldman Sachs Group L.P. (A-1+, P-1)
5.2353%..................................... 04/07/99 300,000 300,000,000
Merrill Lynch & Co. (A-1+, P-1)
4.92%....................................... 06/10/99 150,000 149,993,503
5.43%....................................... 06/15/99 200,000 200,000,000
Morgan Stanley Dean Witter & Co. (A-1, P-1)
5.06%....................................... 05/24/99 50,000 50,043,414
------------
875,036,917
------------
</TABLE>
5
<PAGE>
TempFund Portfolio
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- -------------
<S> <C> <C> <C>
VARIABLE RATE OBLIGATIONS+ (continued)
Short-Term Business Credit Institutions--1.7%
Xerox Credit Corp. (A-1, P-1)
4.9528%....................................... 04/12/99 $200,000 $ 199,965,358
-------------
Total Variable Rate Obligations
(Cost $2,519,667,004)........................................... 2,519,667,004
-------------
MEDIUM TERM NOTES--2.1%
Banks--0.8%
Wells Fargo & Company (A-1, P-1)
5.31%......................................... 04/03/00 100,000 99,933,347
-------------
Finance Lessors--0.2%
IBM Credit Corp. (A-1, A1)
4.70%......................................... 10/29/99 25,000 24,975,168
-------------
Personal Credit Institutions--0.1%
Ford Motor Credit Corp. (A-1, A1)
7.55%......................................... 07/19/99 7,000 7,051,352
-------------
Security Brokers & Dealers--0.9%
Merrill Lynch & Co. (A-1+)
5.143%........................................ 11/15/99 100,000 100,000,000
-------------
Short-Term Business Credit
Institutions--0.1%
C.I.T. Group, Inc. (A-1)
6.25%......................................... 10/04/99 17,000 17,103,570
-------------
Total Medium Term Notes
(Cost $249,063,437)............................................. 249,063,437
-------------
REPURCHASE AGREEMENTS--5.6%
Morgan (J.P.) Securities, Inc.
4.80%......................................... 04/01/99 200,000 200,000,000
(Agreement dated 03/31/99 to be repurchased at $200,026,667,
collateralized by $197,072,000 Federal Home Loan Bank Discount
Notes, Federal Home Loan Mortgage Corporation Bonds and
Discount Notes and U.S. Treasury Bonds 0.00% to 8.875% due from
04/21/99 to 02/15/19. The market value is $205,662,911.)
</TABLE>
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- ------- ------------
<S> <C> <C> <C>
Morgan Stanley & Co., Inc.
5.075%.......................................... 04/01/99 $53,800 $ 53,800,000
(Agreement dated 03/31/99 to be repurchased at $53,807,584,
collateralized by $252,070,000 U.S. Treasury Notes and Strips
0.00% to 5.625% due from 11/30/99 to 11/15/26. The market value
is $55,907,116.)
5.125%.......................................... 04/01/99 250,000 250,000,000
(Agreement dated 03/31/99 to be repurchased at $250,035,590,
collateralized by $267,939,000 Student Loan Marketing
Association Bonds and Discount Notes and Tennessee Valley
Authority Bonds and Discount Notes 0.00% to 8.625% due from
04/01/99 to 11/15/29. The market value is $260,336,182.)
</TABLE>
6
<PAGE>
TempFund Portfolio
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (continued)
SBC Warburg Dillon Read, Inc.
4.82%.......................................... 04/01/99 $142,000 $142,000,000
(Agreement dated 03/31/99 to be repurchased at $142,019,012,
collateralized by $146,270,650 U.S. Treasury Bills due 06/17/99.
The market value is $144,840,125.)
------------
Total Repurchase Agreements
(Cost $645,800,000).............................................. 645,800,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $11,625,344,025*)......................... 100.0% 11,625,344,025
LIABILITIES IN EXCESS OF OTHER ASSETS............ (0.0) (4,899,429)
----- ---------------
NET ASSETS (Equivalent to $1.00 per share based
on 11,244,983,583 TempFund Shares and
375,406,056 TempFund Dollar Shares, $.001 par
value stock outstanding)........................ 100.0% $11,620,444,596
===== ===============
NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE ($11,620,444,596 / 11,620,389,639).............. $1.00
=====
</TABLE>
- --------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of March 31, 1999
and the maturity date shown is the longer of the next interest readjustment
date or the date the principal amount can be recovered upon demand.
TempFund Portfolio
Maturity Information
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Maturity Percentage
Period Par of Portofolio
-------- -------------- -------------
<S> <C> <C>
1-30 Days $5,707,033,000 48.9%
31-60 Days 2,439,862,000 20.9
61-90 Days 1,529,175,000 13.1
91-120 Days 502,000,000 4.3
121-150 Days 450,000,000 3.9
Over 150 Days 1,042,000,000 8.9
</TABLE>
Average Weighted Maturity--57 days
The Duff & Phelps, Fitch Investors Service, Moody's Investors Service, Standard
& Poor's Ratings Service and TBW, Inc. ratings of the investments are believed
to be the most recent ratings available at March 31, 1999.
See accompanying notes to financial statements.
7
<PAGE>
Provident Institutional Funds
TempCash Portfolio
Statement of Net Assets
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- ------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--17.5%
Domestic Certificates Of Deposit--6.1%
First National Bank of Chicago (A-1+, P-1)
4.98%.......................................... 01/06/00 $ 75,000 $ 74,988,896
Fleet National Bank (F-1, A-1 T-1)
5.07%.......................................... 04/09/99 50,000 50,000,000
NationsBank (A-1+, P-1)
5.00%.......................................... 01/05/00 50,000 49,992,625
------------
174,981,521
------------
Yankee Dollar Certificates Of Deposit--11.4%
National Westminster (A-1+, P-1)
4.98%.......................................... 01/10/00 100,000 99,984,987
Rabobank Nederland (A-1+, P-1)
4.98%.......................................... 01/10/00 100,000 99,977,483
Royal Bank of Canada (A-1+, P-1)
5.02%.......................................... 02/08/00 50,000 49,987,594
Svenska Handelsbanken (A-1, P-1)
5.07%.......................................... 02/09/00 50,000 49,987,560
Swedbank (P-1, A-1)
5.76%.......................................... 05/24/99 25,000 24,997,915
Toronto Dominion (A-1+, P-1)
5.71%.......................................... 05/24/99 5,000 4,999,374
------------
329,934,913
------------
Total Certificates of Deposit
(Cost $504,916,434).............................................. 504,916,434
------------
COMMERCIAL PAPER--42.0%
Asset Backed Securities-- 15.0%
Corporate Receivables Corp. (A-1+, P-1)
4.8199%........................................ 04/19/99 50,000 49,879,500
4.87%.......................................... 04/14/99 100,000 99,824,139
4.87%.......................................... 04/15/99 40,000 39,924,244
CXC, Inc. (A-1+, P-1)
4.83%.......................................... 04/09/99 40,000 39,957,067
Dakota Certificates Program (A-1+, P-1)
4.90%.......................................... 04/05/99 75,000 74,959,167
Quincy Capital Corp. (A-1+, P-1)
4.8499%........................................ 04/13/99 17,296 17,268,038
4.85%.......................................... 04/14/99 66,850 66,732,920
Triple A-1 Funding (A-1, P-1)
4.87%.......................................... 04/20/99 25,000 24,935,743
</TABLE>
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- ------- --------------
<S> <C> <C> <C>
Windmill Funding Corp. (A-1+, P-1)
4.87%......................................... 04/12/99 $20,000 $ 19,970,239
--------------
433,451,057
--------------
Banks--7.7%
AB Spintab Swedmortgage (A-1, P-1)
4.85%......................................... 06/09/99 75,000 74,302,813
Abbey National North America (A-1+, P-1)
4.80%......................................... 08/09/99 50,000 49,133,333
Banque Generale Du Luxembourg (A-1+, P-1)
4.7899%....................................... 04/20/99 75,000 74,810,396
Swedbank, Inc. (A-1, P-1)
4.85%......................................... 08/26/99 25,000 24,504,896
--------------
222,751,438
--------------
Food & Kindred Products--1.6%
Diageo Capital PLC (A-1, P-1)
4.7999%....................................... 04/21/99 45,000 44,880,000
--------------
Motor Vehicles & Car Bodies--3.1%
DaimlerChrysler North America Holding Corp. (A-1, P-1)
4.74% 07/16/99 90,000 88,743,900
--------------
Newspaper Publishing & Printing--4.2%
Knight-Ridder, Inc. (A-1, P-2)
4.7799%....................................... 07/21/99 75,000 73,894,625
4.85%......................................... 08/25/99 50,000 49,016,528
--------------
122,911,153
--------------
Security Brokers & Dealers--5.2%
Morgan Stanley (A-1, P-1)
4.87%......................................... 04/23/99 150,000 149,553,583
--------------
Short-Term Business Credit Institutions-- 5.2%
Heller Financial, Inc. (F-1, D-1)
4.95%......................................... 04/05/99 50,000 49,972,500
4.9299%....................................... 04/09/99 50,000 49,945,222
4.92%......................................... 04/23/99 50,000 49,849,667
--------------
149,767,389
--------------
Total Commercial Paper
(Cost $1,212,058,520).......................................... 1,212,058,520
--------------
</TABLE>
8
<PAGE>
TempCash Portfolio
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- ------------
<S> <C> <C> <C>
VARIABLE RATE OBLIGATIONS+--32.9%
Asset Backed Securities--5.2%
SMM Trust 1999-B (A-1+, P-1)
5.10%....................................... 06/15/99 $150,400 $150,400,000
------------
Banks--5.2%
Royal Bank of Canada (A-1+, P-1)
4.8187%..................................... 04/14/99 50,000 49,984,082
Wells Fargo & Company (P-1, A-1)
4.88%....................................... 06/30/99 100,000 99,917,571
------------
149,901,653
------------
Federal National Mortgage Association--2.6%
Federal National Mortgage Association Variable Rate Notes
4.511%...................................... 04/06/99 75,000 75,000,000
------------
Life Insurance--10.4%
General American Life Insurance Co. (A-1+, D-1+)
5.14%....................................... 04/01/99 125,000 125,000,000
Monumental Life Insurance Co. (A-1+, P-1)
5.09%....................................... 04/01/99 75,000 75,000,000
5.13%....................................... 04/01/99 50,000 50,000,000
Transamerica Life & Annuity Co. (A-1+, P-1)
4.9634%..................................... 04/01/99 50,000 50,000,000
------------
300,000,000
------------
Personal Credit Institutions--6.1%
American Honda Finance Corp. Honda Motor Company, Ltd (A-1, P-
1)
5.0275%..................................... 04/09/99 40,000 40,000,000
4.9381%..................................... 04/26/99 75,000 75,000,000
4.98%....................................... 06/14/99 20,000 20,000,000
4.98%....................................... 06/18/99 40,000 39,996,152
------------
174,996,152
------------
Security Brokers & Dealers--3.4%
Goldman Sachs Group (A-1+, P-1)
5.2353%..................................... 04/07/99 100,000 100,000,000
------------
Total Variable Rate Obligations
(Cost $950,297,805)........................................... 950,297,805
------------
</TABLE>
<TABLE>
<CAPTION>
Maturity Par
Date (000) Value
-------- -------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--6.3%
Lehman Government Securities, Inc.
5.20%.......................................... 04/01/99 $155,000 $155,000,000
(Agreement dated 03/31/99 to be repurchased at $155,022,389
collateralized by $161,977,095 Federal Home Loan Mortgage
Corporation Adjustable Rate Mortgage Notes and Federal National
Mortgage Association Adjustable Rate Mortgage Notes 4.49% to
6.20% due from 05/25/99 to 9/15/28. The market value is
$159,653,679).
Morgan Stanley & Co., Inc.
5.075%......................................... 04/01/99 25,000 25,000,000
------------
(Agreement dated 03/31/99 to be repurchased at $25,003,524
collateralized by $19,891,000 U.S. Treasury Bonds 8.00% due
11/15/21. The market value is $25,744,409).
Total Repurchase Agreements
(Cost $180,000,000) ............................................. 180,000,000
------------
</TABLE>
9
<PAGE>
TempCash Portfolio
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
(000) Value
----- --------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $2,847,272,759*).............................. 98.7% $2,847,272,759
OTHER ASSETS IN EXCESS OF LIABILITIES................ 1.3 38,226,242
----- --------------
NET ASSETS (Equivalent to $1.00 per share based on
2,441,029,314 TempCash Shares and 444,446,078
TempCash Dollar Shares outstanding)................. 100.0% $2,885,499,001
===== ==============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($2,885,499,001 / 2,885,475,392).......................... $1.00
=====
</TABLE>
- --------
* Cost for federal income tax purposes.
+ Variable Rate Obligations--The rate shown is the rate as of March 31, 1999
and the maturity date shown is the longer of the next interest readjustment
date or the date the principal amount can be recovered upon demand.
TempCash Portfolio
Maturity Information
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Maturity Percentage
Period Par of Portofolio
-------- -------------- -------------
<S> <C> <C>
1-30 Days $1,724,146,000 60.4%
31-60 Days 30,000,000 1.1
61-90 Days 285,400,000 10.0
91-120 Days 265,000,000 9.3
121-150 Days 125,000,000 4.4
Over 150 Days 425,000,000 14.8
</TABLE>
Average Weighted Maturity--73 days
The Duff & Phelps, Fitch Investors Service, Moody's Investors Service, Standard
& Poor's Ratings Service and TBW, Inc. ratings of the investments are believed
to be the most recent ratings available at March 31, 1999.
See accompanying notes to financial statements.
10
<PAGE>
Provident Institutional Funds
Statements of Operations
Six Months Ended March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
TempFund TempCash
Portfolio Portfolio
------------ ------------
<S> <C> <C>
Investment Income:
Interest income.................................. $358,765,935 $101,023,729
------------ ------------
Expenses:
Investment advisory fee.......................... 6,490,000 2,693,819
Administration fee............................... 6,490,000 2,693,819
Registration fees and expenses................... 1,087,463 219,526
Custodian fee.................................... 621,178 220,682
Transfer agent fee............................... 403,129 42,197
Trustees' fees and expenses...................... 32,113 10,964
Shareholder computer access program.............. 15,952 1,451
Legal fees....................................... 22,564 6,984
Audit fees....................................... 30,271 8,287
Printing......................................... 4,500 4,946
Other............................................ 53,167 18,405
------------ ------------
15,250,337 5,921,080
Service Organization fees--Dollar Shares......... 432,988 567,759
------------ ------------
15,683,325 6,488,839
Less fees waived................................. (2,793,000) (2,410,230)
------------ ------------
Total expenses................................. 12,890,325 4,078,609
------------ ------------
Net investment income............................ 345,875,610 96,945,120
Realized gain (loss) or investments:
Net realized gain from security transactions..... 258,659 35,867
------------ ------------
Net increase in net assets resulting from
operations...................................... $346,134,269 $ 96,980,987
============ ============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
Provident Institutional Funds
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
TempFund Portfolio TempCash Portfolio
---------------------------------- ------------------------------------
Year Ended
Six Months Ended September 30, Six Months Ended Year Ended
March 31, 1999 1998 March 31, 1999 September 30, 1998
---------------- ---------------- ---------------- ------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income. $ 345,875,610 $ 560,564,139 $ 96,945,120 $ 165,453,579
Net realized gain
(loss) on
investments.......... 258,659 (203,702) 35,867 491,505
---------------- ---------------- --------------- ---------------
Net increase in net
assets resulting from
operations........... 346,134,269 560,360,437 96,980,987 165,945,084
---------------- ---------------- --------------- ---------------
Distributions to
shareholders:
From net investment
income:
TempFund Shares...... (337,637,352) (544,340,518) -- --
TempFund Dollar
Shares.............. (8,238,258) (16,223,621) -- --
TempCash Shares...... -- -- (86,138,121) (142,514,398)
TempCash Dollar
Shares.............. -- -- (10,806,999) (22,939,181)
Distributions to
shareholders from
net realized gain:
TempFund shares...... -- (23,462) -- --
TempFund Dollar
shares.............. -- (725) -- --
---------------- ---------------- --------------- ---------------
Total distributions
to shareholders.... (345,875,610) (560,588,326) (96,945,120) (165,453,579)
---------------- ---------------- --------------- ---------------
Capital share
transactions (at $1 per
share):
Sale of shares......... 132,824,095,719 163,267,203,408 34,794,675,789 55,035,173,158
Reinvestment of
dividends............. 113,921,689 194,706,744 44,541,175 77,504,373
Repurchase of shares... (131,306,798,802) (161,888,500,360) (34,956,676,563) (54,502,812,282)
---------------- ---------------- --------------- ---------------
Increase (decrease) in
net assets derived
from capital share
transactions.......... 1,631,218,606 1,573,409,792 (117,459,599) 609,865,249
---------------- ---------------- --------------- ---------------
Total increase
(decrease) in net
assets............. 1,631,477,265 1,573,181,903 (117,423,732) 610,356,754
Net assets:
Beginning of period.... 9,988,967,331 8,415,785,428 3,002,922,733 2,392,565,979
---------------- ---------------- --------------- ---------------
End of period.......... $ 11,620,444,596 $ 9,988,967,331 $ 2,885,499,001 $ 3,002,922,733
================ ================ =============== ===============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
Provident Institutional Funds
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
TempFund Shares
---------------------------------------------------------------------
Six Months
Ended Year Ended September 30,
March 31, -----------------------------------------------------
1999 1998 1997 1996 1995 1994
----------- --------- --------- --------- --------- ---------
(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.......... .0249 .0549 .0539 .0541 .0567 .0360
---------- --------- --------- --------- --------- ---------
Less
Distributions:
Dividends to
Shareholders
From Net
Investment
Income.......... (.0249) (.0549) (.0539) (.0541) (.0567) (.0360)
---------- --------- --------- --------- --------- ---------
Net Asset Value,
End of Period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========= ========= ========= ========= =========
Total Return.... 5.09%/2/ 5.63% 5.53% 5.55% 5.82% 3.66%
Ratios/Supplemental
Data:
Net Assets, End
of Period
$(000).......... 11,245,039 9,686,491 8,060,501 5,715,004 5,351,346 4,480,851
Ratio of
Expenses to
Average Daily
Net Assets/1/... .18%/2/ .18% .18% .18% .24% .25%
Ratio of Net
Investment
Income to
Average Daily
Net Assets...... 5.00%/2/ 5.50% 5.39% 5.41% 5.67% 3.60%
<CAPTION>
TempFund Dollar Shares
---------------------------------------------------------
Six Months
Ended Year Ended September 30,
March 31, -------------------------------------------
1999 1998 1997 1996 1995 1994
------------- -------- -------- -------- ------- --------
(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.......... .0236 .0524 .0514 .0516 .0542 .0335
------------- -------- -------- -------- ------- --------
Less
Distributions:
Dividends to
Shareholders
From Net
Investment
Income.......... (.0236) (.0524) (.0514) (. 0516) (.0542) (.0335)
------------- -------- -------- -------- ------- --------
Net Asset Value,
End of Period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ======== ======== ======== ======= ========
Total Return.... 4.84%/2/ 5.38% 5.27% 5.30% 5.57% 3.41%
Ratios/Supplemental
Data:
Net Assets, End
of Period
$(000).......... 375,406 302,476 355,284 162,119 81,828 102,105
Ratio of
Expenses to
Average Daily
Net Assets/1/... .43%/2/ .43% .43% .43% .49% .50%
Ratio of Net
Investment
Income to
Average Daily
Net Assets...... 4.75%/2/ 5.25% 5.14% 5.16% 5.42% 3.35%
</TABLE>
- ----
/1/Without the waiver of advisory and administration fees, the ratios of
expenses to average daily net assets for TempFund Shares would have been
.22% (annualized) for the six months ended March 31, 1999 and .23%, . 24%,
.26%, .27% and .27% for the years ended September 30, 1998, 1997, 1996, 1995
and 1994, respectively. For TempFund Dollar Shares, the ratios of expenses
to average daily net assets would have been .47% (annualized) for the six
months ended March 31, 1999 and .48%, .49%, .51%, .52% and .52% for the
years ended September 30, 1998, 1997, 1996, 1995 and 1994.
/2/Annualized.
See accompanying notes to financial statements.
13
<PAGE>
Provident Institutional Funds
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
TempCash Shares
--------------------------------------------------------------------
Six Months
Ended Year Ended September 30,
March 31, -----------------------------------------------------
1999 1998 1997 1996 1995 1994
----------- --------- --------- --------- --------- ---------
(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.......... .0250 .0552 .0541 .0542 .0575 .0370
--------- --------- --------- --------- --------- ---------
Less
Distributions:
Dividends to
Shareholders
From Net
Investment
Income.......... (.0250) (.0552) (.0541) (.0542) (.0575) (.0370)
--------- --------- --------- --------- --------- ---------
Net Asset Value,
End of Period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return.... 5.11%/2/ 5.66% 5.55% 5.56% 5.90% 3.76%
Ratios/Supplemental
Data:
Net Assets, End
of Period
$(000).......... 2,441,084 2,499,114 1,991,037 1,835,326 1,316,166 2,330,456
.Ratio of
Expenses to
Average Daily
Net Assets/1/... .18%/2/ .18% .18% .18% .16% .16%
Ratio of Net
Investment
Income to
Average Daily
Net Assets...... 5.00%/2/ 5.52% 5.41% 5.42% 5.75% 3.70%
<CAPTION>
TempCash Dollar Shares
-----------------------------------------------------------
Six Months
Ended Year Ended September 30, 1999
March 31, ---------------------------------------------
1999 1998 1997 1996 1995 1994
------------- --------- -------- -------- -------- --------
(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.......... .0237 .0527 .0516 .0517 .0550 .0345
------------- --------- -------- -------- -------- --------
Less
Distributions:
Dividends to
Shareholders
From Net
Investment
Income.......... (.0237) (.0527) (.0516) (. 0517) (.0550) (.0345)
------------- --------- -------- -------- -------- --------
Net Asset Value,
End of Period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ========= ======== ======== ======== ========
Total Return.... 4.86%/2/ 5.41% 5.29% 5.31% 5.65% 3.51%
Ratios/Supplemental
Data:
Net Assets, End
of Period
$(000).......... 444,415 503, 809 401,529 527,830 454,156 397,948
.Ratio of
Expenses to
Average Daily
Net Assets/1/... .43%/2/ .43% .43% .43% .41% .41%
Ratio of Net
Investment
Income to
Average Daily
Net Assets...... 4.75%/2/ 5.27% 5.16% 5.17% 5.50% 3.45%
</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, 1999 and .32%, .30%,
.33%, .30% and .33% for the years ended September 30, 1998, 1997, 1996, 1995
and 1994, respectively. For TempCash Dollar Shares, the ratios of expenses
to average daily net assets would have been .55% (annualized) for the six
months ended March 31, 1999 and .57%, .55%, .58%, .55% and .58% for the
years ended September 30, 1998, 1997, 1996, 1995 and 1994.
/2/Annualized.
See accompanying notes to financial statements.
14
<PAGE>
Notes to Financial Statements
(Unaudited)
A. Provident Institutional Funds ("PIF" or the "Company") was organized as a
Delaware business trust on October 21, 1998. It is the successor to five
investment companies: (1) Temporary Investment Fund, Inc. ("Temp"), (2) Trust
for Federal Securities ("Fed"), (3) Municipal Fund for Temporary Investment
("Muni"), (4) Municipal Fund for California Investors, Inc. ("Cal Muni") and
(5) Municipal Fund for New York Investors, Inc. ("NY Muni"), (the "Predecessor
Companies"). The accompanying financial statements and notes are those of the
portfolios of Temp--TempFund and TempCash. On February 10, 1999 these
portfolios, along with the portfolios of the other Predecessor Companies were
reorganized into separate series of PIF.
The fiscal year end for Temp is September 30. The fiscal year end for PIF is
October 31. PIF is a no-load open-end management investment company. Each
portfolio included in these financial statements and notes is a diversified
investment company under the Investment Company Act of 1940.
TempCash offers two classes of shares: Fund Shares and Dollar Shares.
TempFund offers six classes of shares: Fund Shares, Administration Shares,
Dollar Shares, Plus Shares, Cash Reserve Shares, and Cash Management Shares.
Pursuant to a Shareholder Service Plan and specified in a servicing agreement,
institutions other than broker/dealers ("Service Organizations"), provide
certain services, not intended to promote the sale of the shares, to their
clients who beneficially own shares of a particular class, in consideration
for the Company's payment of a fee to the Servicing Organization at an annual
rate of .10% for Administration Shares, .25% for Dollar Shares, .40% for Cash
Reserve Shares and .50% for Cash Management Shares of the average daily net
asset value of such Shares. The difference in the level of fees is related to
the type and number of services provided by the Servicing Organization.
Pursuant to an Amended Distribution Plan and specified in a related agreement,
institutions that are broker/dealers ("Broker/Dealers"), provide certain sales
and support services to their clients who beneficially own shares of the Plus
class, in consideration for the Company's payment of a fee to the
Broker/Dealer at an annual rate of .25% of the average daily net asset value
of such Shares. Dividends paid to Administration, Dollar, Plus, Cash Reserve
and Cash Management shareholders are reduced by such fees. Fund Shares are
sold to institutional investors who choose not to enter into agreements with
PIF. As of March 31, 1999, no Administration Shares, Plus Shares, Cash Reserve
Shares or Cash Management Shares were outstanding.
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 securities, as
collateral with a custodian, 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.
15
<PAGE>
Notes to Financial Statements (Continued)
Federal Taxes--No provision is made for federal taxes as it is the Company's
intention to have each portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from all or substantially all federal income and
excise taxes.
Use of Estimates--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that could affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Other--Investment transactions are accounted for on the trade date and the
cost of investments sold is determined by use of the specific identification
method for both financial reporting and income tax purposes. Expenses not
directly attributable to a specific portfolio are allocated between the two
portfolios based on their relative net assets.
C. Under agreements between the Company and BlackRock Institutional Management
Corporation ("BIMC"), an indirect majority-owned subsidiary of PNC Bank
National Association ("PNC Bank"), BIMC manages the Company's portfolios and
maintains their financial accounts. PFPC Trust Company is the Company's
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 an Administration Agreement with PFPC and BIMC
for certain administrative services (together the "Co-Administrators"). Prior
to the reorganization discussed in paragraph A, PDI was co-administrator with
PFPC.
In return for their advisory and administrative services, the Company pays
BIMC and the Co-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:
0.175% of the first $1 billion, plus 0.15% of the next $1 billion, 0.125% of
the next $1 billion, 0.10% of the next $1 billion, 0.095% of the next $1
billion, 0.09% of the next $1 billion, 0.08% of the next $1 billion, 0.075% of
the next $1 billion and 0.07% of net assets in excess of $8 billion.
TempCash Portfolio:
0.175% of the first $1 billion, plus 0.15% of the next $1 billion, 0.125% of
the next $1 billion, 0.10% of the next $1 billion, 0.095% of the next $1
billion, 0.09% of the next $1 billion, 0.085% of the next $1 billion and 0.08%
of net assets in excess of $7 billion.
The Co-Administrators and BIMC 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 or Broker/Dealer fees) of the
TempFund portfolio and the TempCash portfolio do not exceed 0.18% of each
portfolio's average daily net assets.
For the six months ended March 31, 1999, the Co-Administrators and BIMC
voluntarily waived, on an equal basis, administration and advisory fees
totaling $2,793,000 and $2,410,230 for the TempFund portfolio and the TempCash
portfolio, respectively.
Service Organization fees of $72,375 were paid to affiliates of BIMC for the
six months ended March 31, 1999.
D. The Company's Declaration of Trust permits the Trustees to authorize the
issuance of an unlimited number of full and fractional shares of beneficial
interest (shares) in the Company and to classify or reclassify any unissued
shares into one or more additional classes of shares.
16
<PAGE>
Notes to Financial Statements (Concluded)
Transactions in shares of the Company are summarized as follows:
<TABLE>
<CAPTION>
TempFund Portfolio
----------------------------------
Year Ended
Six Months Ended September 30,
March 31, 1999 1998
---------------- ----------------
(Unaudited)
<S> <C> <C>
Sale of shares:
TempFund................ 130,573,985,034 156,484,722,787
TempFund Dollar......... 2,250,110,685 6,782,480,621
Shares issued in
reinvestment of
dividends:
TempFund................ 109,577,888 186,102,310
TempFund Dollar......... 4,343,801 8,604,434
Shares repurchased:
TempFund................ (129,125,268,025) (155,044,635,487)
TempFund Dollar......... (2,181,530,777) (6,843,864,873)
---------------- ----------------
Net increase in shares... 1,631,218,606 1,573,409,792
================ ================
</TABLE>
<TABLE>
<CAPTION>
TempCash Portfolio
--------------------------------
Six Months Year Ended
Ended September 30,
March 31, 1999 1998
--------------- ---------------
(Unaudited)
<S> <C> <C>
Sale of shares:
TempCash.................................... 33,862,404,033 52,797,975,692
TempCash Dollar............................. 932,271,756 2,237,197,466
Shares issued in reinvestment of dividends:
TempCash.................................... 36,599,640 60,504,102
TempCash Dollar............................. 7,941,535 17,000,271
Shares repurchased:
TempCash.................................... (33,957,066,004) (52,350,827,640)
TempCash Dollar............................. (999,610,559) (2,151,984,642)
--------------- ---------------
Net increase (decrease) in shares............ (117,459,599) 609,865,249
=============== ===============
</TABLE>
On March 31, 1999 two shareholders held approximately 21% of the outstanding
shares of TempCash Portfolio.
E. At September 30, 1998, capital loss carryovers, expiring at various times
from 2004 to 2006 were available to offset possible future capital gains of the
respective portfolios, as follows: TempFund, $203,702 and TempCash, $12,258.
F. At March 31, 1999, net assets consisted of the following:
<TABLE>
<CAPTION>
TempFund TempCash
--------------- --------------
<S> <C> <C>
Paid-in capital.................................. $11,620,389,639 $2,885,475,392
Accumulated net realized gains on investments.... 54,957 23,609
--------------- --------------
Total net assets................................. $11,620,444,596 $2,885,499,001
=============== ==============
</TABLE>
17
<PAGE>
Results of Special Meeting of Sharesholders (Unaudited)
A Special Shareholder Meeting for Temporary Investment Fund, Inc. ("Temp")
was held on January 28, 1999 and reconvened on February 9, 1999. Shareholders
of TempFund and TempCash (each a "Portfolio", collectively, the "Portfolios")
voted as described below:
1. Election of Directors. Messrs. Beckwith, Harris, Johnson, Platt, Robb,
Urish and Winter were elected Directors by shareholders of the Company, as
follows.
<TABLE>
<CAPTION>
Number of
Number of Votes
Name of Candidate Votes For Withheld
----------------- --------- -----------
<S> <C> <C>
G. Nicholas Beckwith, III............................. 9,742,789,644 329,202,656
Jerrold B. Harris..................................... 9,790,894,300 281,098,000
Rodney D. Johnson..................................... 9,790,692,505 281,299,795
Joseph P. Platt, Jr................................... 9,791,033,294 280,959,006
Robert C. Robb, Jr.................................... 9,790,912,048 281,080,252
Kenneth L. Urish...................................... 9,791,002,842 280,989,458
Frederick W. Winter................................... 9,791,010,153 280,982,147
</TABLE>
2. Ratification of Auditors. Shareholders of the Company voted to ratify
PricewaterhouseCoopers LLP as independent accountants for the fiscal year
ending September 30, 1999; as follows.
<TABLE>
<S> <C>
For the resolution................................................ 9,913,050,364
Against the resolution............................................ 37,445,857
Abstain........................................................... 121,496,077
</TABLE>
3. Agreement and Plan of Reorganization. Shareholders of each Portfolio of the
Company voted to approve an Agreement and Plan of Reorganization pursuant to
which each Portfolio was reorganized as a separate series of Provident
Institutional Funds, a Delaware business trust, as follows.
<TABLE>
<CAPTION>
TempFund TempCash
------------- -------------
<S> <C> <C>
For the resolution.................................. 6,726,262,082 2,153,889,985
Against the resolution.............................. 260,319,403 103,380,369
Abstain............................................. 301,171,818 192,788,342
Broker non-vote..................................... 40,426,534 293,753,767
</TABLE>
4. Changes in Fundamental Investment Limitations. Changes were proposed to the
fundamental investment limitations of each Portfolio of the Company, as
follows: (a) limitation on borrowing and senior securities, (b) limitation on
underwriting activities, (c) limitation on real estate related transactions,
(d) limitation on investment in commodities; (e) limitation on loans; and (f)
limitation regarding concentration (TempCash only). The proposed changes were
approved by shareholders of each Portfolio as follows:
<TABLE>
<CAPTION>
TempFund TempCash
------------- -------------
<S> <C> <C>
For the resolution.................................. 6,933,462,122 2,297,889,044
Against the resolution.............................. 257,127,239 61,013,957
Abstain............................................. 97,163,943 91,155,695
Broker non-vote..................................... 40,426,533 293,753,767
</TABLE>
5. Changes to Fundamental Investment Limitations to Make Such Limitations Non-
Fundamental. Changes were proposed to fundamental investment limitations of
each Portfolio of the Company to make such limitations non-fundamental, as
follows: (a) limitations on eligible investments; (b) limitation on acquiring
voting securities or acquiring securities of other investment companies, and
(c) limitation on purchasing securities on margin, making short sales or
maintaining a short position. The proposed changes were approved by
shareholders as follows:
<TABLE>
<CAPTION>
TempFund TempCash
------------- -------------
<S> <C> <C>
For the resolution.................................. 6,373,736,594 2,099,836,152
Against the resolution.............................. 809,863,420 248,919,356
Abstain............................................. 104,153,289 101,303,188
Broker non-vote..................................... 40,426,534 293,753,767
</TABLE>
18
<PAGE>
Results of Special Meeting of Shareholders (Concluded)
6. Investment of Substantially All Assets in Another Open-End Investment
Company. Shareholders of each Portfolio of the Company voted to approve a new
fundamental investment limitation for each Portfolio to permit each Portfolio
to invest substantially all of its assets in another open-end investment
company, as follows:
<TABLE>
<CAPTION>
TempFund TempCash
------------- -------------
<S> <C> <C>
For the resolution.................................. 6,843,817,561 2,289,350,404
Against the resolution.............................. 327,727,737 60,629,544
Abstain............................................. 116,208,005 100,078,747
Broker non-vote..................................... 40,426,534 293,753,768
</TABLE>
19
<PAGE>
Trustees
Rodney D. Johnson
Chairman
G. Nicholas Beckwith
Jerrold B. Harris
Joseph Platt
Robert C. Robb, Jr.
Kenneth L. Urish
Frederick W. Winter
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 proceeded 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-SA-001
TempFund
TempCash
Investment Portfolios offered by
Provident Institutional Funds
PROVIDENT
INSTITUTIONAL
FUNDS
Semi-Annual Report
March 31, 1999
