1933 Act File No. 2-66437
1940 Act File No. 811-2993
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No. ..........
Post-Effective Amendment No. 33 .......... X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
Amendment No. 26 .......................... X
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
(Exact Name of Registrant as Specified in Charter)
Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire,
Federated Investors Tower,
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b)
X on April 30, 1997, pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a) (i)
on pursuant to paragraph (a) (i).
75 days after filing pursuant to paragraph (a)(ii)
on pursuant to paragraph (a)(ii) of Rule 485.
-----------------
If appropriate, check the following box:
This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Registrant has filed with the Securities and Exchange Commission a
declaration pursuant to Rule 24f-2 under the Investment Company Act of
1940, and:
X filed the Notice required by that Rule on April 15, 1997; or
intends to file the Notice required by that Rule on or about
; or
------------
during the most recent fiscal year did not sell any securities
pursuant to Rule 24f-2 under the Investment Company Act of 1940, and,
pursuant to Rule 24f-2(b)(2), need not file the Notice.
CROSS-REFERENCE SHEET
This Amendment to the Registration Statement of EDWARD D. JONES & CO.
DAILY PASSPORT CASH TRUST is comprised of the following:
PART A. INFORMATION REQUIRED IN A PROSPECTUS.
Prospectus Heading
(Rule 404(c) Cross Reference)
Item 1. Cover Page...............Cover Page.
Item 2. Synopsis.................Summary of Trust Expenses.
Item 3. Condensed Financial
Information.............Financial Highlights; Performance
Information.
Item 4. General Description of
Registrant..............General Information; Investment
Information; Investment Objective;
Investment Policies; Investment Risks;
Investment Limitations.
Item 5. Management of the Trust..Trust Information; Management of the
Trust; Distribution of Trust Shares;
Administration of the Trust.
Item 6. Capital Stock and Other
Securities..............Dividends; Capital Gains; Shareholder
Information; Voting Rights; Tax
Information; Federal Income Tax; State
and Local Taxes.
Item 7. Purchase of Securities Being
Offered.................Investing in the Trust; Share
Purchases; Full Service Account;
Minimum Investment Required; Receipt of
Orders; Certificates and Confirmations;
Retirement Plans; Exchange Privilege;
Requirements for Exchange; Tax
Consequences; Making an Exchange; Net
Asset Value.
Item 8. Redemption or Repurchase.Redeeming Shares; Redeeming by Check;
VISA Account; Written Requests;
Accounts With Low Balances.
Item 9. Legal Proceedings........None.
PART B. INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION.
Item 10. Cover Page...............Cover Page.
Item 11. Table of Contents........Table of Contents.
Item 12. General Information and
History.................General Information About the Trust;
Massachusetts Partnership Law; About
Federated Investors.
Item 13. Investment Objectives and
Policies................Investment Objective and Policies.
Item 14. Management of the Registrant Edward D. Jones & Co. Daily
Passport Cash Trust Management.
Item 15. Control Persons and Principal
Holders of Securities....Trust Ownership.
Item 16. Investment Advisory and Other
Services.................Investment Advisory Services; Other
Services;
Item 17. Brokerage Allocation.....Brokerage Transactions.
Item 18. Capital Stock and Other
Securities...............Not applicable.
Item 19. Purchase, Redemption and Pricing
of Securities Being Offered Purchasing Shares; Determining Net
Asset Value; Redeeming Shares.
Item 20. Tax Status...............Tax Status.
Item 21. Underwriters.............Not applicable.
Item 22. Calculations of Performance
Data....................Yield; Effective Yield; Total Return;
Performance Comparisons.
Item 23. Financial Statements.....(Filed in Part A).
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
PROSPECTUS
"A PASSPORT TO CASH MANAGEMENT"
The shares of Edward D. Jones & Co. Daily Passport Cash Trust (the "Trust")
offered by this prospectus represent interests in a no-load, open-end management
investment company (a mutual fund) investing in money market instruments to
achieve stability of principal and current income consistent with stability of
principal.
AN INVESTMENT IN THE TRUST IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. THE TRUST ATTEMPTS TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE; THERE CAN BE NO ASSURANCE THAT THE TRUST WILL BE ABLE TO DO SO.
THE SHARES OFFERED BY THIS PROSPECTUS ARE NOT DEPOSITS OR OBLIGATIONS OF ANY
BANK, ARE NOT ENDORSED OR GUARANTEED BY ANY BANK, AND ARE NOT INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
GOVERNMENT AGENCY.
This prospectus contains the information you should read and know before you
invest in the Trust. Keep this prospectus for future reference.
The Trust has also filed a Statement of Additional Information dated April 30,
1997, with the Securities and Exchange Commission (the "SEC"). The information
contained in the Statement of Additional Information is incorporated by
reference into this prospectus. You may request a copy of the Statement of
Additional Information or a paper copy of this prospectus, if you have received
your prospectus electronically, free of charge by calling 1-800-341-7400. To
obtain other information or to make inquiries about the Trust, contact the Trust
at the address listed in the back of this prospectus. This Statement of
Additional Information, material incorporated by reference into this document,
and other information regarding the Trust is maintained electronically with the
SEC at Internet Website (http://www.sec.gov).
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
Prospectus dated April 30, 1997
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
SUMMARY OF TRUST EXPENSES 1
- ------------------------------------------------------
FINANCIAL HIGHLIGHTS 2
- ------------------------------------------------------
GENERAL INFORMATION 3
- ------------------------------------------------------
INVESTMENT INFORMATION 3
- ------------------------------------------------------
Investment Objective 3
Investment Policies 3
Investment Risks 5
Investment Limitations 6
NET ASSET VALUE 6
- ------------------------------------------------------
INVESTING IN THE TRUST 6
- ------------------------------------------------------
Share Purchases 6
Full Service Account 7
Minimum Investment Required 7
Receipt of Orders 7
Certificates and Confirmations 7
Dividends 7
Capital Gains 8
Retirement Plans 8
EXCHANGE PRIVILEGE 8
- ------------------------------------------------------
Requirements for Exchange 8
Tax Consequences 9
Making an Exchange 9
REDEEMING SHARES 9
- ------------------------------------------------------
Redeeming by Check 9
VISA Account 10
Written Requests 10
Accounts with Low Balances 11
TRUST INFORMATION 11
- ------------------------------------------------------
Management of the Trust 11
Distribution of Trust Shares 12
Administration of the Trust 13
SHAREHOLDER INFORMATION 13
- ------------------------------------------------------
Voting Rights 13
TAX INFORMATION 13
- ------------------------------------------------------
Federal Income Tax 13
State and Local Taxes 13
PERFORMANCE INFORMATION 14
- ------------------------------------------------------
FINANCIAL STATEMENTS 15
- ------------------------------------------------------
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS 24
- ------------------------------------------------------
ADDRESSES 25
- ------------------------------------------------------
SUMMARY OF TRUST EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price).................................................................... None
Maximum Sales Charge Imposed on Reinvested Dividends
(as a percentage of offering price).................................................................... None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds, as applicable).................................................. None
Redemption Fee (as a percentage of amount redeemed, if applicable)....................................... None
Exchange Fee............................................................................................. None
ANNUAL OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee........................................................................................... 0.43%
12b-1 Fee................................................................................................ None
Total Other Expenses..................................................................................... 0.46%
Shareholder Services Fee................................................................. 0.25%
Total Operating Expenses....................................................................... 0.89%
</TABLE>
The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of the Trust will bear, either
directly or indirectly. For more complete descriptions of the various costs and
expenses, see "Trust Information." Wire-transferred redemptions of less than
$5,000 may be subject to additional fees. Shareholders who do not maintain an
average monthly account balance of $2,500 will be charged a monthly fee (this
does not apply to retirement accounts).
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000 investment, assuming
(1) 5% annual return and (2) redemption at the end of each time
period................................................................ $9 $28 $49 $110
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
Reference is made to the Report of Ernst & Young LLP, Independent Auditors, on
page 24.
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28 OR 29,
1997 1996 1995 1994 1993 1992 1991 1990 1989
- ------------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------
INCOME FROM
INVESTMENT OPERATIONS
- -------------------------
Net investment income 0.04 0.05 0.04 0.02 0.03 0.05 0.07 0.08 0.07
- -------------------------
LESS DISTRIBUTIONS
- -------------------------
Distributions from net
investment income (0.04) (0.05) (0.04) (0.02) (0.03) (0.05) (0.07) (0.08) (0.07)
- ------------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (A) 4.59% 5.06% 3.78% 2.33% 2.82% 4.98% 7.39% 8.63% 7.24%
- -------------------------
RATIOS TO AVERAGE
NET ASSETS
- -------------------------
Expenses 0.89% 0.96% 0.98% 0.95% 0.95% 0.87% 0.83% 0.88% 1.01%
- -------------------------
Net investment
income 4.49% 4.92% 3.74% 2.31% 2.79% 4.89% 7.13% 8.23% 7.14%
- -------------------------
SUPPLEMENTAL DATA
- -------------------------
Net assets,
end of period
(000 omitted) $4,760,020 $3,951,155 $2,464,260 $2,171,225 $2,223,226 $2,469,295 $2,631,671 $2,235,991 $1,279,762
- -------------------------
<CAPTION>
<S> <C>
1988
- ------------------------- ---------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00
- -------------------------
INCOME FROM
INVESTMENT OPERATIONS
- -------------------------
Net investment income 0.06
- -------------------------
LESS DISTRIBUTIONS
- -------------------------
Distributions from net
investment income (0.06)
- ------------------------- ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00
- ------------------------- ---------
TOTAL RETURN (A) 6.15%
- -------------------------
RATIOS TO AVERAGE
NET ASSETS
- -------------------------
Expenses 1.03%
- -------------------------
Net investment
income 6.00%
- -------------------------
SUPPLEMENTAL DATA
- -------------------------
Net assets,
end of period
(000 omitted) $744,107
- -------------------------
</TABLE>
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(See Notes which are an integral part of the Financial Statements)
GENERAL INFORMATION
- --------------------------------------------------------------------------------
The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated January 9, 1980. The Trust is designed for individual, joint,
custodial, trust, fiduciary, corporate, partnership, association, or
proprietorship accounts as a convenient means of accumulating an interest in a
professionally managed, diversified portfolio limited to money market
instruments maturing in one year or less. A minimum initial investment of $1,000
is required.
The Trust attempts to stabilize the value of a share at $1.00. Trust shares are
currently sold and redeemed at that price.
INVESTMENT INFORMATION
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
The investment objective of the Trust is stability of principal and current
income consistent with stability of principal. The Trust pursues this investment
objective by investing in a portfolio of money market instruments maturing in
one year or less. The average maturity of money market instruments in the
Trust's portfolio, computed on a dollar-weighted basis, will be 120 days or
less, but the Trust intends to compute on a dollar-weighted basis of 90 days.
While there is no assurance that the Trust will achieve its investment
objective, it endeavors to do so by complying with the diversification and other
requirements of Rule 2a-7 under the Investment Company Act of 1940 which
regulates money market mutual funds and by following the investment policies
described in this prospectus. The investment objective and the policies and
limitations described below cannot be changed without approval of shareholders.
INVESTMENT POLICIES
ACCEPTABLE INVESTMENTS. The Trust invests in high quality money market
instruments that are either rated in the highest short-term rating category by
one or more nationally recognized statistical rating organizations or of
comparable quality to securities having such ratings. Examples of these
instruments include, but are not limited to:
domestic issues of corporate debt obligations, including variable rate
demand notes;
commercial paper (including Canadian Commercial Paper and Europaper);
certificates of deposit, demand and time deposits, bankers' acceptances
and other instruments of domestic and foreign banks and other deposit
institutions ("Bank Instruments");
short-term credit facilities, such as demand notes;
asset-backed securities;
obligations issued or guaranteed as to payment of principal and interest
by the U.S. government or one of its agencies or instrumentalities
("Government Securities"); and
other money market instruments.
The Trust invests only in instruments denominated and payable in U.S. dollars.
VARIABLE RATE DEMAND NOTES. Variable rate demand notes are long-term
corporate debt instruments that have variable or floating interest rates
and provide the Trust with the right to tender the security for repurchase
at its stated principal amount plus accrued interest. Such securities
typically bear interest at a rate that is intended to cause the securities
to trade at par. The interest rate may float or be adjusted at regular
intervals (ranging from daily to annually), and is normally based on a
published interest rate or interest rate index. Most variable rate demand
notes allow the Trust to demand the repurchase of the security on not more
than seven days prior notice. Other notes only permit the Trust to tender
the security at the time of each interest rate adjustment or at other fixed
intervals. See "Demand Features." The Trust treats variable rate demand
notes as maturing on the later of the date of the next interest adjustment
or the date on which the Trust may next tender the security for repurchase.
BANK INSTRUMENTS. The Trust only invests in Bank Instruments either issued
by an institution having capital, surplus and undivided profits over $100
million or insured by the Bank Insurance Fund ("BIF") or the Savings
Association Insurance Fund ("SAIF"). Bank Instruments may include
Eurodollar Certificates of Deposit ("ECDs"), Yankee Certificates of Deposit
("Yankee CDs") and Eurodollar Time Deposits ("ETDs"). The Trust will treat
securities credit enhanced with a bank's letter of credit as Bank
Instruments.
SHORT-TERM CREDIT FACILITIES. Demand notes are short-term borrowing
arrangements between a corporation and an institutional lender (such as the
Trust) payable upon demand by either party. The notice period for demand
typically ranges from one to seven days, and the party may demand full or
partial payment. The Trust may also enter into, or acquire participations
in, short-term revolving credit facilities with corporate borrowers. Demand
notes and other short-term credit arrangements usually provide for floating
or variable rates of interest.
ASSET-BACKED SECURITIES. Asset-backed securities are securities issued by
special purpose entities whose primary assets consist of a pool of loans or
accounts receivable. The securities may take the form of beneficial
interest in a special purpose trust, limited partnership interests or
commercial paper or other debt securities issued by a special purpose
corporation. Although the securities often have some form of credit or
liquidity enhancement, payments on the securities depend predominantly upon
collections of the loans and receivables held by the issuer.
REPURCHASE AGREEMENTS. Repurchase agreements are arrangements in which banks,
broker/dealers, and other recognized financial institutions sell U.S. government
securities or certificates of deposit to the Trust and agree at the time of sale
to repurchase them at a mutually agreed upon time and price. To the extent that
the original seller does not repurchase the securities from the Trust, the Trust
could receive less than the repurchase price on any sale of such securities.
CREDIT ENHANCEMENT. Certain of the Trust's acceptable investments may be credit
enhanced by a guaranty, letter of credit or insurance. Any bankruptcy,
receivership or default, or change in the credit quality of the party providing
the credit enhancement, will adversely affect the quality and marketability of
the underlying security and could cause losses to the Trust and affect its share
price.
DEMAND FEATURES. The Trust may acquire securities that are subject to puts and
standby commitments ("demand features") to purchase the securities at their
principal amount (usually with accrued interest) within a fixed period (usually
seven days) following a demand by the Trust. The demand feature may be issued by
the issuer of the underlying securities, a dealer in the securities or by
another third party, and may not be transferred separately from the underlying
security. The Trust uses these arrangements to provide the Trust with liquidity
and not to protect against changes in the market value of the underlying
securities. The bankruptcy, receivership or default by the issuer of the demand
feature, or a default on the underlying security or other event that terminates
the demand feature before its exercise, will adversely affect the liquidity of
the underlying security. Demand features that are exercisable even after a
payment default on the underlying security may be treated as a form of credit
enhancement.
RESTRICTED AND ILLIQUID SECURITIES. The Trust may invest up to 10% of its total
assets in restricted securities. This restriction is not applicable to
commercial paper issued under Section 4(2) of the Securities Act of 1933.
Restricted securities are any securities in which the Trust may otherwise invest
pursuant to its investment objectives and policies but which are subject to
restriction on resale under federal law. The Trust will limit investments in
illiquid securities, including certain restricted securities not determined by
the Trustees to be liquid, ETDs and repurchase agreements providing for
settlement in more than seven days after notice, to 10% of its net assets.
The Trust may invest in commercial paper issued in reliance on the exemption
from registration afforded by Section 4(2) of the Securities Act of 1933.
Section 4(2) paper is restricted as to disposition under federal securities law,
and is generally sold to institutional investors, such as the Trust, who agree
that they are purchasing the paper for investment purposes and not with a view
to public distribution. Any resale by the purchaser must be in an exempt
transaction. Section 4(2) commercial paper is normally resold through, or with
the assistance of, an issuer or investment dealers who make a market in Section
4(2) commercial paper, thus providing liquidity.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS. The Trust may purchase
securities on a when-issued or delayed delivery basis. These transactions are
arrangements in which the Trust purchases securities with payment and delivery
scheduled for a future time. The seller's failure to complete these transactions
may cause the Trust to miss a price or yield considered to be advantageous.
Settlement dates may be a month or more after entering into these transactions,
and the market values of the securities purchased may vary from the purchase
prices.
INVESTMENT RISKS
ECDs, ETDs, Yankee CDs, CCPs, and Europaper are subject to somewhat different
risks than domestic obligations of domestic banks. Examples of these risks
include international, economic and political developments, foreign governmental
restrictions that may adversely affect the payment of principal or interest,
foreign withholding or other taxes on interest income, difficulties in obtaining
or enforcing a judgment against the issuing bank, and the possible impact of
interruptions in the flow of international currency transactions. Different
risks may also exist for ECDs, ETDs, and Yankee CDs because the banks issuing
these instruments, or their domestic or foreign branches, are not necessarily
subject to the same regulatory requirements that apply to domestic banks, such
as reserve requirements, loan limitations, examinations, accounting, auditing
and
recordkeeping, and the public availability of information. These factors will be
carefully considered by the Trust's adviser in selecting investments for the
Trust.
INVESTMENT LIMITATIONS
The Trust will not:
borrow money directly or through reverse repurchase agreements
(arrangements in which the Trust sells a money market instrument for a
percentage of its cash value with an agreement to buy it back on a set
date) or pledge securities except, under certain circumstances, the Trust
may borrow up to one-third of the value of its total assets and pledge up
to 10% of the value of those assets to secure such borrowings;
invest more than 5% of its total assets in securities of one issuer
(except cash and cash items, repurchase agreements, and U.S. government
obligations); or
invest more than 5% of its total assets in securities of issuers that
have records of less than three years of continuous operations.
NET ASSET VALUE
- --------------------------------------------------------------------------------
The Trust attempts to stabilize the net asset value of its shares at $1.00 by
valuing the portfolio securities using the amortized cost method. The net asset
value per share is determined by subtracting total liabilities from total assets
and dividing the remainder by the number of shares outstanding. The Trust, of
course, cannot guarantee that its net asset value will always remain at $1.00
per share.
Trust shares are sold at their net asset value next determined after an order is
received. There is no sales charge imposed by the Trust.
The net asset value is determined at 12:00 noon (Eastern Time), and as of the
close of trading (normally 4:00 p.m., Eastern time) on the New York Stock
Exchange, Monday through Friday, except on New Year's Day, Presidents' Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day.
INVESTING IN THE TRUST
- --------------------------------------------------------------------------------
SHARE PURCHASES
To purchase shares of the Trust:
sign the Automatic Collection and Reinvestment Service Agreement, also
available from an Edward D. Jones & Co. investment representative
(optional, but recommended);
complete and sign a check-writing application, available from an Edward
D. Jones & Co. investment representative (optional);
enclose a check for $1,000 or more made payable to Edward D. Jones & Co.;
and
send the check and completed form(s) to your local Edward D. Jones & Co.
office.
FEDERAL RESERVE OR BANK WIRE. Shares may also be purchased with federal funds
sent by Federal Reserve or bank wire. This method results in a more rapid
investment in Trust shares. Shares cannot be purchased by wire on holidays when
wire transfers are restricted. Questions should be directed to your shareholder
services representative at the telephone number listed on your account
statement. An investment representative of Edward D. Jones & Co. must be
contacted before wiring any funds.
FULL SERVICE ACCOUNT
Shareholders of the Trust may subscribe to Edward D. Jones & Co.'s Full Service
Account ("FSA"). This program provides a convenient method for investment by
linking the shareholder's Trust Account and Edward D. Jones & Co. Brokerage
Account. The FSA subscriber, with a free credit balance in a Brokerage Account,
will automatically have this sum invested in the Trust Account on a daily basis.
FSA also permits daily, automatic redemption of Trust shares to satisfy debit
balances in the shareholders' Brokerage Accounts. At present, there is no fee
for this service, but Edward D. Jones & Co. reserves the right to charge a fee
in the future.
MINIMUM INVESTMENT REQUIRED
The minimum initial investment in the Trust is $1,000. Subsequent investments
must be in amounts of at least $1,000 except for the FSA in which there is no
minimum requirement. If the investor has signed an Automatic Collection and
Reinvestment Service Agreement there is no minimum. An investment can be made by
sending a check to Edward D. Jones & Co. with instructions that it be invested
in the Trust.
RECEIPT OF ORDERS
Trust shares are sold on days on which the New York Stock Exchange is open.
Orders are considered received after payment by check is converted by Edward D.
Jones & Co. or Federated Shareholder Services Company, the Trust's transfer
agent, into federal funds (normally within two business days of receiving the
check). When payment is made with federal funds, the order is considered
received immediately.
The Trust reserves the right to reject any purchase request.
CERTIFICATES AND CONFIRMATIONS
As transfer agent for the Trust, Federated Shareholder Services Company
maintains a share account for each shareholder. Share certificates are not
issued unless requested on the application or by contacting the Trust.
All purchases, redemptions, and dividends paid during the preceding month will
be confirmed on the shareholder's Edward D. Jones & Co. monthly account
statement.
DIVIDENDS
Dividends are declared daily and paid monthly. Dividends are automatically
reinvested on payment dates in additional shares of the Trust. Shares purchased
before 3:00 p.m. (Eastern time) earn dividends that day.
CAPITAL GAINS
Since the Trust's policy is, under normal circumstances, to hold portfolio
securities to maturity and to value portfolio securities at amortized cost, it
does not expect any capital gains or losses. If the Trust does experience gains,
however, it could result in an increase in dividends. Capital losses could
result in a decrease in dividends. If for some extraordinary reason the Trust
realizes net long-term capital gains, it will distribute them at least once
every 12 months.
RETIREMENT PLANS
Shares of the Trust can be purchased as an investment for retirement plans or
for IRA accounts. For further details, contact an investment representative of
Edward D. Jones & Co. and consult a tax adviser.
EXCHANGE PRIVILEGE
- --------------------------------------------------------------------------------
Trust shares may be acquired in exchange for shares of certain other funds for
which affiliates of Federated Investors serve as investment adviser and
principal underwriter (the "Federated Funds") at net asset value. Also, Trust
shares may be exchanged for shares in other Federated Funds at net asset value
plus a sales charge, if applicable. Neither the Trust nor any of the Federated
Funds impose any additional fees on exchanges.
Please contact Edward D. Jones & Co. directly or Federated Securities Corp. at
1-800-341-7400 for information on and prospectuses for the Federated Funds into
which your shares may be exchanged.
Shareholders of Class A Shares who have been designated Liberty Life Members are
exempt from sales charges on future purchases in and exchanges between the Class
A Shares of any funds in the Federated Funds, as long as they maintain a $500
balance in one of the Federated Funds.
REQUIREMENTS FOR EXCHANGE
Shareholders using this privilege must exchange shares having a net asset value
equal to the minimum investment requirements of the fund into which the exchange
is being made. Before the exchange, the shareholder must receive a prospectus of
the fund for which the exchange is being made.
This privilege is available to shareholders resident in any state in which the
fund shares being acquired may be sold. Upon receipt of proper instructions and
required supporting documents, shares submitted for exchange are redeemed and
the proceeds invested in shares of the other fund. The exchange privilege may be
terminated at any time. Shareholders will be notified of the termination of the
exchange privilege.
Further information on the exchange privilege and prospectuses for the Federated
Funds are available by contacting your Edward D. Jones & Co. investment
representative.
TAX CONSEQUENCES
An exercise of the exchange privilege is treated as a sale for federal income
tax purposes. Depending upon the circumstances, a short-term or long-term
capital gain or loss may be realized.
MAKING AN EXCHANGE
Exchange instructions for Federated Funds may be given in writing or by
telephoning your Edward D. Jones & Co. investment representative. Written
instructions may require a signature guarantee. Shareholders of the Trust may
have difficulty in making exchanges by telephone through brokers and other
financial institutions during times of drastic economic or market changes. If a
shareholder cannot contact the broker or financial institution by telephone, it
is recommended that an exchange request be made in writing and sent by overnight
mail.
TELEPHONE INSTRUCTIONS. Telephone instructions made by the investor may be
carried out only if a telephone authorization form completed by the investor is
on file with Federated Shareholder Services Company. If the instructions are
given by a broker, a telephone authorization form completed by the broker must
be on file with Federated Shareholder Services Company. Shares may be exchanged
between two funds by telephone only if the two funds have identical shareholder
registrations.
Any shares held in certificate form cannot be exchanged by telephone but must be
forwarded to Federated Shareholder Services Company and deposited to the
shareholder's account before being exchanged. Telephone exchange instructions
may be recorded and will be binding upon the shareholder. Such instructions will
be processed as of 4:00 p.m. (Eastern time) and must be received by Federated
Shareholder Services Company before that time for shares to be exchanged the
same day. Shareholders exchanging into a fund will not receive any dividend that
is payable to shareholders of record on that date. This privilege may be
modified or terminated at any time.
REDEEMING SHARES
- --------------------------------------------------------------------------------
The Trust redeems shares at their net asset value next determined after
Federated Shareholder Services Company receives the redemption request.
Redemptions will be made on days on which the Trust computes its net asset
value. Redemption requests must be received in proper form and can be made:
by writing a check;
by VISA debit card and VISA checks;
by contacting your Edward D. Jones & Co. investment representative; or
by written request.
REDEEMING BY CHECK
At the shareholder's request, Federated Shareholder Services Company will
establish a checking account for redeeming Trust shares. For further
information, contact an investment representative of Edward D. Jones & Co.
USING THE CHECKING ACCOUNT. With a Trust checking account, shares may be
redeemed simply by writing a check for $500 or more. The redemption will be made
at the net asset value on the date that the check is presented to State Street
Bank and Trust Company on behalf of the Trust. A check may not be written to
close an account. In addition, if a shareholder wishes to redeem shares and have
the proceeds available, a check may be written and negotiated through the
shareholder's local bank. Checks should never be sent to Federated Shareholder
Services Company to redeem shares. Canceled checks are currently sent to the
shareholder each month. We reserve the right to return on a less frequent basis,
or to truncate or image the checks.
VISA ACCOUNT
At the shareholder's request, State Street Bank and Trust Company will establish
a VISA account. This VISA account allows a shareholder to redeem Trust shares by
using a VISA debit card or VISA checks. A VISA check may not be written to close
an account. A shareholder with a VISA account may not use the Trust checking
account privileges (only one check-writing option may be chosen). For further
information, contact an investment representative of Edward D. Jones & Co.
Canceled checks are currently sent to shareholders each month. We reserve the
right to return on a less frequent basis, or to truncate or image the checks.
WRITTEN REQUESTS
Trust shares may also be redeemed by sending a written request to Edward D.
Jones & Co. Call Edward D. Jones & Co. for specific instructions before
redeeming by letter. The shareholder will be asked to provide in the request,
the shareholder's name, the Trust name, the account number, and the share or
dollar amount requested. If share certificates have been issued, they must be
properly endorsed and should be sent by registered or certified mail with the
written request.
SIGNATURES. Shareholders requesting a redemption of any amount to be sent to an
address other than that on record with the Trust, or a redemption payable other
than to the shareholder of record must have signatures on written redemption
requests guaranteed by:
a trust company or commercial bank whose deposits are insured by the BIF,
which is administered by the Federal Deposit Insurance Corporation
("FDIC");
a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;
a savings bank or savings association whose deposits are insured by the
SAIF, which is administered by the FDIC; or
any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.
The Trust does not accept signatures guaranteed by a notary public.
The Trust and its transfer agent have adopted standards for accepting signature
guarantees from the above institutions. The Trust may elect in the future to
limit eligible signature guarantors to institutions that are members of a
signature guarantee program. The Trust and its transfer agent reserve the right
to amend these standards at any time without notice.
RECEIVING PAYMENT. Normally, a check for the proceeds is mailed within one
business day, but in no event more than seven days, after receipt of a proper
written redemption request. In addition, proceeds from redemption requests
received before 3:00 p.m. (Eastern Time) may be wired the
same day to the shareholders's account, but will not include that day's
dividend. Proceeds from redemption requests after that time include that day's
dividend but will be wired the following business day.
ACCOUNTS WITH LOW BALANCES
Due to the high cost of maintaining accounts with low balances, there is an
average monthly (calculated on a 30-day basis) account balance policy.
Shareholders must maintain a $2,500 average monthly account balance.
Shareholders who do not maintain an average monthly account balance of $2,500,
in any given 30-day period, will be charged a $3.00 fee for that period. A
shareholder's checkwriting or VISA privilege may be discontinued at any time.
This policy does not currently apply to IRAs, Keoghs, other retirement accounts
or accounts owned by associates of Edward D. Jones & Co., L.P. These types of
accounts may be subject to the policy in the future.
TRUST INFORMATION
- --------------------------------------------------------------------------------
MANAGEMENT OF THE TRUST
BOARD OF TRUSTEES. The Trust is managed by a Board of Trustees (the
"Trustees"). The Trustees are responsible for managing the Trust's business
affairs and for exercising all the Trust's powers except those reserved for the
shareholders. An Executive Committee of the Trustees handles the Trustees'
responsibilities between meetings of the Trustees.
INVESTMENT ADVISER. Investment decisions for the Trust are made by Passport
Research, Ltd. (the "Adviser"), the Trust's investment adviser, subject to
direction by the Trustees. The Adviser continually conducts investment research
and supervision for the Trust and is responsible for the purchase, sale, or
exchange of portfolio instruments, for which it receives an annual fee from the
Trust.
ADVISORY FEES. The annual investment advisory fee is based on the Trust's
average daily net assets as shown on the chart below.
<TABLE>
<CAPTION>
ADVISORY FEE AS
AVERAGE DAILY % OF AVERAGE
NET ASSETS DAILY NET ASSETS
<S> <C>
First $500 million .50%
Second $500 million .475%
Third $500 million .45%
Fourth $500 million .425%
Over $2 billion .40%
</TABLE>
ADVISER'S BACKGROUND. Passport Research, Ltd. is a Pennsylvania limited
partnership organized in 1981. Federated Advisers is the general partner of
the Adviser and has a 50.5% interest
in the Adviser. Federated Advisers is owned by Federated Investors. Edward
D. Jones & Co. is the limited partner of the Adviser and has a 49.5%
interest in the Adviser.
FEDERATED INVESTORS. With over $110 billion invested across over 300 funds
under management and/or administration by its subsidiaries, as of December
31, 1996, Federated Investors is one of the largest mutual fund investment
managers in the United States. With more than 2,000 employees, Federated
continues to be led by the management who founded the company in 1955.
Federated Funds are presently at work in and through 4,500 financial
institutions nationwide.
Both the Trust and the Adviser have adopted strict codes of ethics
governing the conduct of all employees who manage the Trust and its
portfolio securities. These codes recognize that such persons owe a
fiduciary duty to the Trust's shareholders and must place the interests of
shareholders ahead of the employees' own interest. Among other things, the
codes: require preclearance and periodic reporting of personal securities
transactions; prohibit personal transactions in securities being purchased
or sold, or being considered for purchase or sale, by the Trust; prohibit
purchasing securities in initial public offerings; and prohibit taking
profits on securities held for less than sixty days. Violations of the
codes are subject to review by the Trustees, and could result in severe
penalties.
DISTRIBUTION OF TRUST SHARES
Edward D. Jones & Co. is the principal distributor for shares of the Trust.
Although it receives no compensation from the Trust for sales of its shares, it
does provide administrative personnel and services to Federated Services
Company, for which it receives a fee equal to approximately 0.039% of average
daily net assets of the Trust. Prior to March 1, 1994, Edward D. Jones & Co.
provided similar personnel and services to the Trust at approximate cost. The
Trust has agreed to indemnify the distributor, and the distributor has agreed to
indemnify the Trust against certain civil liabilities, including liabilities
under the Securities Act of 1933.
SHAREHOLDER SERVICES. The Trust has entered into a Shareholder Services
-
Agreement with Federated Shareholder Services, a subsidiary of Federated
Investors, under which the Trust may make payments up to .25% of the average
daily net asset value of its shares, computed at an annual rate, to obtain
certain personal services for shareholders and to maintain shareholder accounts.
From time to time and for such periods as deemed appropriate, the amount stated
above may be reduced voluntarily.
Under the Shareholder Services Agreement, Federated Shareholder Services will
either perform shareholder services directly or will pay Edward D. Jones & Co.
to perform shareholder services. Edward D. Jones & Co. will receive fees based
upon shares owned by their clients or customers. The schedules of such fees and
the basis upon which such fees will be paid will be determined from time to time
by the Trust and Federated Shareholder Services.
Federated Securities Corp. acts as the Trust's distributor in those states in
which Edward D. Jones & Co. is not registered. Federated Securities Corp. is a
subsidiary of Federated Investors and is the principal distributor for a number
of investment companies.
ADMINISTRATION OF THE TRUST
Federated Services Company, a subsidiary of Federated Investors, provides
administrative personnel and services (including certain legal and financial
reporting services) necessary to operate the Trust. Federated Services Company
provides these at an annual rate which relates to the average aggregate daily
net assets of all Federated Funds.
<TABLE>
<CAPTION>
MAXIMUM FEE AVERAGE AGGREGATE DAILY NET ASSETS
<S> <C>
0.15% on the first $250 million
0.125% on the next $250 million
0.10% on the next $250 million
0.075% on assets in excess of $750 million
</TABLE>
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio and $30,000 per each additional class of shares.
Federated Services Company may choose voluntarily to waive a portion of its fee.
SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------
VOTING RIGHTS
Each share of the Trust gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. As a Massachusetts business
trust, the Trust is not required to hold annual shareholder meetings.
Shareholder approval will be sought only for certain changes in the Trust's
operation and for the election of Trustees under certain circumstances.
Trustees may be removed by the Trustees or by shareholders at a special meeting.
A special meeting of the Trust shall be called by the Trustees upon the written
request of shareholders owning at least 10% of the Trust's outstanding shares.
TAX INFORMATION
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX
The Trust will pay no federal income tax because it expects to meet requirements
of the Internal Revenue Code applicable to regulated investment companies and to
receive the special tax treatment afforded to such companies.
Unless otherwise exempt, shareholders are required to pay federal income tax on
any dividends and other distributions received. This applies even though
dividends and distributions are received as additional shares. No federal income
tax is due on any dividends earned in an IRA or qualified retirement plan until
distributed.
STATE AND LOCAL TAXES
Shareholders are urged to consult their own tax advisers regarding the status of
their accounts under state and local tax laws.
PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------
From time to time, the Trust advertises its total return, yield, and effective
yield.
The yield of the Trust represents the annualized rate of income earned on an
investment in the Trust over a seven-day period. It is the annualized dividends
earned during the period on the investment, shown as a percentage of the
investment. The effective yield is calculated similarly to the yield, but, when
annualized, the income earned by an investment in the Trust is assumed to be
reinvested daily. The effective yield will be slightly higher than the yield
because of the compounding effect of this assumed reinvestment.
Total return represents the change, over a specified period of time, in the
value of an investment in the Trust after reinvesting all income distributions.
It is calculated by dividing that change by the initial investment and is
expressed as a percentage.
From time to time, advertisements for the Trust may refer to ratings, rankings,
and other information in certain financial publications and/or compare the
Trust's performance to certain indices.
EDWARD D. JONES DAILY PASSPORT CASH TRUST
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------- ------------------------------------------------------------------------------ ----------------
<C> <S> <C>
SHORT-TERM OBLIGATIONS--40.0%
- ----------------------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK--0.5%
------------------------------------------------------------------------------
$ 24,000,000 5.600%, 6/3/1997 $ 23,991,329
------------------------------------------------------------------------------ ----------------
FEDERAL FARM CREDIT BANK, DISCOUNT NOTE--0.2%
------------------------------------------------------------------------------
12,000,000 (a)5.395%, 7/30/1997 11,739,777
------------------------------------------------------------------------------ ----------------
FEDERAL FARM CREDIT BANK, FLOATING RATE NOTE--0.9%
------------------------------------------------------------------------------
40,000,000 (b)5.430%, 4/1/1997 39,986,800
------------------------------------------------------------------------------ ----------------
FEDERAL HOME LOAN BANK--0.9%
------------------------------------------------------------------------------
44,400,000 5.460%-5.710%, 11/18/1997-12/12/1997 44,381,880
------------------------------------------------------------------------------ ----------------
FEDERAL HOME LOAN BANK, DISCOUNT NOTES--3.5%
------------------------------------------------------------------------------
174,000,000 (a)5.371%-5.495%, 5/13/1997-7/15/1997 171,244,832
------------------------------------------------------------------------------ ----------------
FEDERAL HOME LOAN BANK, FLOATING RATE NOTES--1.1%
------------------------------------------------------------------------------
53,000,000 (b)5.310%, 3/4/1997 52,964,864
------------------------------------------------------------------------------ ----------------
FEDERAL HOME LOAN MORTGAGE CORP.--0.6%
------------------------------------------------------------------------------
27,000,000 5.640%, 8/28/1997 26,967,538
------------------------------------------------------------------------------ ----------------
FEDERAL HOME LOAN MORTGAGE CORP., DISCOUNT NOTE--0.3%
------------------------------------------------------------------------------
15,265,000 (a)5.489%, 7/15/1997 14,961,091
------------------------------------------------------------------------------ ----------------
FEDERAL HOME LOAN MORTGAGE CORP., FLOATING RATE NOTE--0.6%
------------------------------------------------------------------------------
27,000,000 (b)5.330%, 3/4/1997 26,993,785
------------------------------------------------------------------------------ ----------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION, DISCOUNT NOTES--14.9%
------------------------------------------------------------------------------
716,260,000 (a)5.364%-5.746%, 3/6/1997-7/18/1997 710,260,633
------------------------------------------------------------------------------ ----------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION, FLOATING RATE NOTES--6.9%
------------------------------------------------------------------------------
329,800,000 (b)5.132%-5.340%, 3/4/1997-3/17/1997 329,719,151
------------------------------------------------------------------------------ ----------------
STUDENT LOAN MARKETING ASSOCIATION--0.4%
------------------------------------------------------------------------------
20,000,000 5.620%, 6/30/1997 19,976,337
------------------------------------------------------------------------------ ----------------
</TABLE>
EDWARD D. JONES DAILY PASSPORT CASH TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------- ------------------------------------------------------------------------------ ----------------
<C> <S> <C>
SHORT-TERM OBLIGATIONS--CONTINUED
- ----------------------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION, FLOATING RATE NOTES--2.8%
------------------------------------------------------------------------------
$ 131,000,000 (b)5.330%-5.460%, 3/4/1997 $ 130,977,009
------------------------------------------------------------------------------ ----------------
U.S. TREASURY BILL--0.4%
------------------------------------------------------------------------------
18,000,000 (a)5.300%, 3/5/1998 17,035,400
------------------------------------------------------------------------------ ----------------
U.S. TREASURY NOTES--6.0%
------------------------------------------------------------------------------
279,900,000 5.625%, 6/30/1997 281,630,969
------------------------------------------------------------------------------ ----------------
TOTAL SHORT-TERM OBLIGATIONS 1,902,831,395
------------------------------------------------------------------------------ ----------------
(C)REPURCHASE AGREEMENTS--59.0%
- ----------------------------------------------------------------------------------------------
70,000,000 BA Securities, Inc., 5.350%, dated 2/28/1997, due 3/3/1997 70,000,000
------------------------------------------------------------------------------
200,000,000 Bear, Stearns and Co., 5.430%, dated 2/28/1997, due 3/3/1997 200,000,000
------------------------------------------------------------------------------
75,000,000 CIBC Wood Gundy Securities Corp., 5.410%, dated 2/28/1997,
due 3/3/1997 75,000,000
------------------------------------------------------------------------------
115,000,000 Chase Government Securities, Inc., 5.450%, dated 2/28/1997,
due 3/3/1997 115,000,000
------------------------------------------------------------------------------
110,000,000 Daiwa Securities America, Inc., 5.375%, dated 2/28/1997,
due 3/3/1997 110,000,000
------------------------------------------------------------------------------
170,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.375%,
dated 2/28/1997, due 3/3/1997 170,000,000
------------------------------------------------------------------------------
80,000,000 First Union Capital Markets, 5.375%, dated 2/28/1997, due 3/3/1997 80,000,000
------------------------------------------------------------------------------
60,000,000 Goldman Sachs Group, LP, 5.430%, dated 2/28/1997, due 3/3/1997 60,000,000
------------------------------------------------------------------------------
200,000,000 Greenwich Capital Markets, Inc., 5.420%, dated 2/28/1997,
due 3/3/1997 200,000,000
------------------------------------------------------------------------------
100,000,000 Harris Government Securities, Inc., 5.375%, dated 2/28/1997,
due 3/3/1997 100,000,000
------------------------------------------------------------------------------
100,000,000 J.P. Morgan & Co., Inc., 5.375%, dated 2/28/1997, due 3/3/1997 100,000,000
------------------------------------------------------------------------------
200,000,000 J.P. Morgan & Co., Inc., 5.430%, dated 2/28/1997, due 3/3/1997 200,000,000
------------------------------------------------------------------------------
180,000,000 Nikko Securities Co. Ltd., 5.420%, dated 2/28/1997, due 3/3/1997 180,000,000
------------------------------------------------------------------------------
70,000,000 Nomura Securities International, Inc., 5.380%, dated 2/28/1997,
due 3/3/1997 70,000,000
------------------------------------------------------------------------------
</TABLE>
EDWARD D. JONES DAILY PASSPORT CASH TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------- ------------------------------------------------------------------------------ ----------------
<C> <S> <C>
(C)REPURCHASE AGREEMENTS--CONTINUED
- ----------------------------------------------------------------------------------------------
$ 45,000,000 Sanwa-BGK Securities Co., LP, 5.370%, dated 2/28/1997,
due 3/3/1997 $ 45,000,000
------------------------------------------------------------------------------
5,300,000 Swiss Bank Capital Markets, 5.380%, dated 2/28/1997, due 3/3/1997 5,300,000
------------------------------------------------------------------------------
115,000,000 Toronto Dominion Securities (USA) Inc., 5.420%, dated 2/28/1997, due 3/3/1997 115,000,000
------------------------------------------------------------------------------
100,000,000 UBS Securities, Inc., 5.420%, dated 2/28/1997, due 3/3/1997 100,000,000
------------------------------------------------------------------------------
85,000,000 (d)Chase Government Securities, Inc., 5.300%, dated 2/24/1997,
due 3/26/1997 85,000,000
------------------------------------------------------------------------------
110,000,000 (d)Chase Government Securities, Inc., 5.350%, dated 2/26/1997,
due 4/4/1997 110,000,000
------------------------------------------------------------------------------
125,000,000 (d)Goldman Sachs Group, LP, 5.300%, dated 2/7/1997, due 3/7/1997 125,000,000
------------------------------------------------------------------------------
100,000,000 (d)Goldman Sachs Group, LP, 5.330%, dated 1/27/1997, due 3/25/1997 100,000,000
------------------------------------------------------------------------------
116,000,000 (d)J.P. Morgan & Co., Inc., 5.330%, dated 1/14/1997, due 3/17/1997 116,000,000
------------------------------------------------------------------------------
70,000,000 (d)Merrill Lynch, Pierce, Fenner and Smith, 5.340%, dated 1/31/1997, due
4/1/1997 70,000,000
------------------------------------------------------------------------------
140,000,000 (d)UBS Securities, Inc., 5.300%, dated 2/7/1997, due 3/10/1997 140,000,000
------------------------------------------------------------------------------
70,000,000 (d)UBS Securities, Inc., 5.350%, dated 1/31/1997, due 4/1/1997 70,000,000
------------------------------------------------------------------------------ ----------------
TOTAL REPURCHASE AGREEMENTS 2,811,300,000
------------------------------------------------------------------------------ ----------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(E) $ 4,714,131,395
------------------------------------------------------------------------------ ----------------
</TABLE>
(a) Discount rate at time of purchase.
(b) Floating rate note with current rate and next reset date shown.
(c) The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
(d) Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement within seven days.
(e) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($4,760,019,964) at February 28, 1997.
The following acronym is used throughout this portfolio:
LP--Limited Partnership
(See Notes which are an integral part of the Financial Statements)
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -----------------------------------------------------------------------------
Investments in repurchase agreements $ 2,811,300,000
- -----------------------------------------------------------------------------
Investments in securities 1,902,831,395
- ----------------------------------------------------------------------------- ----------------
Total investments in securities, at amortized cost and value $ 4,714,131,395
- -----------------------------------------------------------------------------------------------
Cash 4,276,103
- -----------------------------------------------------------------------------------------------
Income receivable 11,405,633
- -----------------------------------------------------------------------------------------------
Receivable for shares sold 77,664,077
- ----------------------------------------------------------------------------------------------- ----------------
Total assets 4,807,477,208
- -----------------------------------------------------------------------------------------------
LIABILITIES:
- -----------------------------------------------------------------------------
Payable for investments purchased $ 17,035,400
- -----------------------------------------------------------------------------
Payable for shares redeemed 23,631,350
- -----------------------------------------------------------------------------
Income distribution payable 4,760,841
- -----------------------------------------------------------------------------
Accrued expenses 2,029,653
- ----------------------------------------------------------------------------- ----------------
Total liabilities 47,457,244
- ----------------------------------------------------------------------------------------------- ----------------
NET ASSETS for 4,760,019,964 shares outstanding $ 4,760,019,964
- ----------------------------------------------------------------------------------------------- ----------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
$4,760,019,964 / 4,760,019,964 shares outstanding $1.00
- ----------------------------------------------------------------------------------------------- ----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------------------
Interest $ 227,638,564
- -------------------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------
Investment advisory fee $ 18,178,478
- ----------------------------------------------------------------------------------
Administrative personnel and services fee 3,198,194
- ----------------------------------------------------------------------------------
Custodian fees 479,516
- ----------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 4,421,125
- ----------------------------------------------------------------------------------
Directors'/Trustees' fees 57,727
- ----------------------------------------------------------------------------------
Auditing fees 20,168
- ----------------------------------------------------------------------------------
Legal fees 12,734
- ----------------------------------------------------------------------------------
Portfolio accounting fees 163,732
- ----------------------------------------------------------------------------------
Shareholder services fee 10,580,299
- ----------------------------------------------------------------------------------
Share registration costs 361,548
- ----------------------------------------------------------------------------------
Printing and postage 299,927
- ----------------------------------------------------------------------------------
Insurance premiums 34,266
- ----------------------------------------------------------------------------------
Taxes 8,816
- ----------------------------------------------------------------------------------
Miscellaneous 4,721
- ---------------------------------------------------------------------------------- -------------
Total expenses 37,821,251
- ------------------------------------------------------------------------------------------------- --------------
Net investment income $ 189,817,313
- ------------------------------------------------------------------------------------------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28 OR 29,
1997 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------------------
Net investment income $ 189,817,313 $ 157,505,033
- ------------------------------------------------------------------------- ------------------ ------------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------------------
Distributions from net investment income (189,817,313) (157,505,033)
- ------------------------------------------------------------------------- ------------------ ------------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------------------
Proceeds from sale of shares 16,504,255,897 14,038,245,342
- -------------------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of distributions declared 186,566,785 153,374,221
- -------------------------------------------------------------------------
Cost of shares redeemed (15,881,957,509) (12,704,724,272)
- ------------------------------------------------------------------------- ------------------ ------------------
Change in net assets resulting from share transactions 808,865,173 1,486,895,291
- ------------------------------------------------------------------------- ------------------ ------------------
Change in net assets 808,865,173 1,486,895,291
- -------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------
Beginning of period 3,951,154,791 2,464,259,500
- ------------------------------------------------------------------------- ------------------ ------------------
End of period $ 4,760,019,964 $ 3,951,154,791
- ------------------------------------------------------------------------- ------------------ ------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1997
- --------------------------------------------------------------------------------
1. ORGANIZATION
Edward D. Jones Daily Passport Cash Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company. The investment objective of the Trust is
stability of principal and current income consistent with stability of
principal.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--The Trust's use of the amortized cost method to
value its portfolio securities is in accordance with Rule 2a-7 under the
Act.
REPURCHASE AGREEMENTS--It is the policy of the Trust to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Trust to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Trust's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Trust
could receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the Trust's policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities on the trade date and
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
- --------------------------------------------------------------------------------
maintains security positions such that sufficient liquid assets will be
available to make payment for the securities purchased. Securities
purchased on a when-issued or delayed delivery basis are marked to market
daily and begin earning interest on the settlement date.
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 amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
OTHER--Investment transactions are accounted for on the trade date.
3. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
February 28, 1997, capital paid-in aggregated $4,760,019,964. Transactions in
shares were as follows:
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED
FEBRUARY 28 OR 29,
1997 1996
<S> <C> <C>
Shares sold 16,504,255,897 14,038,245,342
- ----------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 186,566,785 153,374,221
- ----------------------------------------------------------------------------
Shares redeemed (15,881,957,509) (12,704,724,272)
- ---------------------------------------------------------------------------- ----------------- -----------------
Net change resulting from share transactions 808,865,173 1,486,895,291
- ---------------------------------------------------------------------------- ----------------- -----------------
</TABLE>
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Passport Research Ltd., the Trust's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
based on average daily net assets of the Trust as follows: 0.50% on the first
$500 million, 0.475% on the next $500 million, 0.45% on the next $500 million,
0.425% on the next $500 million and 0.40% thereafter. The adviser will waive the
amount that normal operating expenses of the Trust (including the investment
advisory fee, but excluding brokerage commissions, interest, taxes and
extraordinary expenses) exceed 2.5% per year on the first $30 million of average
daily net assets of the Trust, 2% per year on the next $70 million of average
daily net assets of the Trust, and 1.5% per year on any additional assets.
ADMINISTRATIVE FEE--Federated Services Company ("FServ"), under the
Administrative Services Agreement, provides the Trust with administrative
personnel and services. The fee paid to FServ is based on the level of average
aggregate daily net assets of all funds advised by subsidiaries of
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
- --------------------------------------------------------------------------------
Federated Investors for the period. The administrative fee received during the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Trust will pay FSS up to 0.25%
of average daily net assets of the Trust shares for the period. The fee paid to
FSS is used to finance certain services for shareholders and to maintain
shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--FServ, through its
subsidiary, Federated Shareholder Services Company ("FSSC") serves as transfer
and dividend disbursing agent for the Trust. The fee paid to FSSC is based on
the size, type, and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Trust's accounting records for
which it receives a fee. The fee is based on the level of the Trust's average
daily net assets for the period, plus out-of-pocket expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Edward D. Jones & Co. Daily Passport Cash Trust
as of February 28, 1997, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the ten years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust'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 audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1997, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Edward
D. Jones & Co. Daily Passport Cash Trust at February 28, 1997, and the results
of its operations for the year then ended, changes in its net assets for each of
the two years in the period then ended, and financial highlights for each of the
ten years in the period then ended, in conformity with generally accepted
accounting principles.
ERNST & YOUNG LLP
Pittsburgh, Pennsylvania
April 9, 1997
ADDRESSES
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<TABLE>
<S> <C> <C>
Edward D. Jones & Co.
Daily Passport Cash Trust Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ---------------------------------------------------------------------------------------------------------------------
Principal Distributor
Edward D. Jones & Co. 201 Progress Parkway
Maryland Heights, Missouri 63043
- ---------------------------------------------------------------------------------------------------------------------
Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
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Investment Adviser
Passport Research, Ltd. Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ---------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company P.O. Box 1800
Boston, Massachusetts 02266-8600
- ---------------------------------------------------------------------------------------------------------------------
Transfer Agent and Dividend Disbursing Agent
Federated Shareholder Services Company Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ---------------------------------------------------------------------------------------------------------------------
Independent Auditors
Ernst & Young LLP One Oxford Centre
Pittsburgh, Pennsylvania 15219
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
EdwardJones
Daily
Passport
Cash Trust
P R O S P E C T U S
----------------------------
April 30, 1997
A Passport
to Cash
Management
Edward Jones
201 Progress Parkway
Maryland Heights, Missouri 63043
1-800-331-2451
Distributor
EdwardJones
Cusip 480023100 [recycled paper logo]
8032801A (4/97) Serving Individual Investors Since 1871
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information should be read with the
prospectus of the Trust dated April 30, 1997. This Statement is not a
prospectus itself. To receive a copy of the prospectus, write Edward
D. Jones & Co. Daily Passport Cash Trust at 201 Progress Parkway,
Maryland Heights, Missouri 63043, or call 1-800-331-2451.
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
Statement dated April 30, 1997
EDWARD D. JONES & CO.
201 PROGRESS PARKWAY
MARYLAND HEIGHTS, MISSOURI 63043
1-800-331-2451
Distributor
GENERAL INFORMATION ABOUT THE TRUST 1
INVESTMENT OBJECTIVE AND POLICIES 1
Types of Investments 1
Restricted and Illiquid Securities 2
When-Issued and Delayed
Delivery Transactions 2
Repurchase Agreements 2
Reverse Repurchase Agreements 2
Credit Enhancement 3
Investment Limitations 3
Regulatory Compliance 4
PURCHASING SHARES 5
Conversion to Federal Funds 5
DETERMINING NET ASSET VALUE 5
Use of the Amortized Cost Method 5
REDEEMING SHARES 6
Redemption in Kind 6
VISA Account 6
MASSACHUSETTS PARTNERSHIP LAW 6
Trust Ownership 7
EDWARD D. JONES DAILY PASSPORT CASH TRUST MANAGEMENT 8
Trustees Compensation 12
Trustee Liability 12
INVESTMENT ADVISORY SERVICES 13
Adviser to the Trust 13
Advisory Fees 13
BROKERAGE TRANSACTIONS 13
OTHER SERVICES 14
Trust Administration 14
Custodian and Portfolio Accountant 14
Transfer Agent 14
Independent Auditors 14
Shareholder Services Agreement 14
TAX STATUS 14
The Trust's Tax Status 14
Shareholders' Tax Status 14
YIELD 15
EFFECTIVE YIELD 15
TOTAL RETURN 15
PERFORMANCE COMPARISONS 15
Economic and Market Information 16
ABOUT FEDERATED INVESTORS 16
GENERAL INFORMATION ABOUT THE TRUST
Edward D. Jones & Co. Daily Passport Cash Trust (the "Trust") was
established as a Massachusetts business trust under a Declaration of
Trust dated January 9, 1980.
INVESTMENT OBJECTIVE AND POLICIES
The Trust's investment objective is to provide stability of principal and
current income consistent with stability of principal.
TYPES OF INVESTMENTS
The Trust invests in money market instruments which mature in one year or
less and which include, but are not limited to, bank instruments,
commercial paper, demand master notes, and U.S. government obligations.
The above investment objective and policies cannot be changed without
approval of shareholders.
BANK INSTRUMENTS
In addition to domestic bank obligations such as certificates of
deposit, demand and time deposits, savings shares, and bankers'
acceptances, the Trust may invest in:
oEurodollar Certificates of Deposit issued by foreign branches of
U.S. or foreign banks;
oEurodollar Time Deposits, which are U.S. dollar-denominated
deposits in foreign branches of U.S. or foreign banks;
oCanadian Time Deposits, which are U.S. dollar-denominated deposits
issued by branches of major Canadian banks located in the United
States; and
oYankee Certificates of Deposit, which are U.S. dollar-denominated
certificates of deposit issued by U.S. branches of foreign banks
and held in the United States.
RATINGS
A nationally recognized statistical rating organization's (NRSRO's)
highest rating category is determined without regard for sub-
categories and gradations. For example, securities rated A-1 or A-1+
by Standard & Poor's Ratings Group (`S&P''), Prime-1 by Moody's
Investors Service, Inc. (`Moody's''), or F-1 (+ or -) by Fitch
Investors Service, Inc. (`Fitch'') are all considered rated in the
highest short-term rating category. The Trust will follow applicable
regulations in determining whether a security rated by more than one
NRSRO can be treated as being in the highest short-term rating
category; currently, such securities must be rated by two NRSROs in
their highest rating category. See `Regulatory Compliance.''
U.S. GOVERNMENT OBLIGATIONS
The types of U.S. government obligations in which the Trust may
invest generally include direct obligations of the U.S. Treasury
(such as U.S. Treasury bills, notes, and bonds) and obligations
issued or guaranteed by U.S. government agencies or
instrumentalities. These securities are backed by:
othe full faith and credit of the U.S. Treasury;
othe issuer's right to borrow from the U.S. Treasury;
othe discretionary authority of the U.S. government to purchase
certain obligations of agencies or instrumentalities; or
othe credit of the agency or instrumentality issuing the
obligations.
Examples of agencies and instrumentalities which may not always
receive financial support from the U.S. government are:
oFarm Credit System, including the National Bank for Cooperatives,
Farm Credit Banks, and Banks for Cooperatives;
oFederal Home Loan Banks;
oFederal Home Loan Mortgage Corporation;
oFederal National Mortgage Association;
oGovernment National Mortgage Association; and
oStudent Loan Marketing Association.
RESTRICTED AND ILLIQUID SECURITIES
The ability of the Trust's Board of Trustees (the "Trustees") to
determine the liquidity of certain restricted securities is permitted
under a Securities and Exchange Commission ("SEC") Staff position set
forth in the adopting release for Rule 144A under the Securities Act of
1933 (the "Rule"). The Rule is a non-exclusive safe-harbor for certain
secondary market transactions involving securities subject to
restrictions on resale under federal securities laws. The Rule provides
an exemption from registration for resales of otherwise restricted
securities to qualified institutional buyers. The Rule was expected to
further enhance the liquidity of the secondary market for securities
eligible for resale under Rule 144A. The Trust believes that the Staff of
the SEC has left the question of determining the liquidity of all
restricted securities (eligible for resale under Rule 144A) for
determination by the Trustees. The Trustees consider the following
criteria in determining the liquidity of certain restricted securities.
othe frequency of trades and quotes for the security;
othe number of dealers willing to purchase or sell the security and
the number of other potential buyers;
odealer undertakings to make a market in the security; and
othe nature of the security and the nature of the marketplace
trades.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
These transactions are made to secure what is considered to be an
advantageous price or yield for the Trust. Settlement dates may be a
month or more after entering into these transactions, and the market
values of the securities purchased may vary from the purchase prices. No
fees or other expenses, other than normal transaction costs, are
incurred. However, liquid assets of the Trust sufficient to make payment
for the securities to be purchased are segregated on the Trust`s records
at the trade date. These assets are marked to market daily and are
maintained until the transaction has been settled. The Trust does not
intend to engage in when-issued and delayed delivery transactions to an
extent that would cause the segregation of more than 20% of the total
value of its assets.
REPURCHASE AGREEMENTS
The Trust requires its custodian to take possession of the securities
subject to repurchase agreements, and these securities are marked to
market daily. To the extent that the original seller does not repurchase
the securities from the Trust, the Trust could receive less than the
repurchase price on any sale of such securities. In the event that such a
defaulting seller filed for bankruptcy or became insolvent, disposition
of such securities by the Trust might be delayed pending court action.
The Trust believes that under the regular procedures normally in effect
for custody of the Trust's portfolio securities subject to repurchase
agreements, a court of competent jurisdiction would rule in favor of the
Trust and allow retention or disposition of such securities. The Trust
will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are
deemed by the Trust's investment adviser to be creditworthy pursuant to
guidelines established by the Trustees.
REVERSE REPURCHASE AGREEMENTS
The Trust may also enter into reverse repurchase agreements. This
transaction is similar to borrowing cash. In a reverse repurchase
agreement the Trust transfers possession of a portfolio instrument to
another person, such as a financial institution, broker or dealer, in
return for a percentage of the instrument's market value in cash, and
agrees that on a stipulated date in the future the Trust will repurchase
the portfolio instrument by remitting the original consideration plus
interest at an agreed upon rate. The use of reverse repurchase agreements
may enable the Trust to avoid selling portfolio instruments at a time
when a sale may be deemed to be disadvantageous, but the ability to enter
into reverse repurchase agreements does not ensure that the Trust will be
able to avoid selling portfolio instruments at a disadvantageous time.
When effecting reverse repurchase agreements, liquid assets of the Trust,
in a dollar amount sufficient to make payment for the obligations to be
purchased, are segregated at the trade date. These securities are marked
to market daily and maintained until the transaction is settled.
CREDIT ENHANCEMENT
The Trust typically evaluates the credit quality and ratings of
credit-enhanced securities based upon the financial condition and ratings
of the party providing the credit-enhancement (the `credit-enhancer''),
rather than the issuer. However, credit-enhanced securities will not be
treated as having been issued by the credit-enhancer for diversification
purposes, unless the Trust has invested more than 10% of its assets in
securities issued, guaranteed or otherwise credit- enhanced by the
credit-enhancer, in which case the securities will be treated as having
been issued by both the issuer and the credit-enhancer.
The Trust may have more than 25% of its total assets invested in
securities credit-enhanced by banks.
INVESTMENT LIMITATIONS
The Trust will not change any of the investment limitations described
below without approval of shareholders.
SELLING SHORT AND BUYING ON MARGIN
The Trust will not sell any money market instruments short or
purchase any money market instruments on margin but may obtain such
short-term credits as may be necessary for clearance of purchases
and sales of money market instruments.
BORROWING MONEY
The Trust will not borrow money except as a temporary measure for
extraordinary or emergency purposes and then only in amounts not in
excess of 5% of the value of its total assets. In addition, the
Trust may enter into reverse repurchase agreements and otherwise
borrow up to one-third of the value of its total assets, including
the amount borrowed, in order to meet redemption requests without
immediately selling portfolio instruments. This latter practice is
not for investment leverage but solely to facilitate management of
the portfolio by enabling the Trust to meet redemption requests when
the liquidation of portfolio instruments would be inconvenient or
disadvantageous.
Interest paid on borrowed funds will not be available for
investment. The Trust will liquidate any such borrowings as soon as
possible and may not purchase any portfolio instruments while any
borrowings are outstanding. However, during the period any reverse
repurchase agreements are outstanding, but only to the extent
necessary to assure completion of the reverse repurchase agreements,
the Trust will restrict the purchase of portfolio instruments to
money market instruments maturing on or before the expiration date
of the reverse repurchase agreements.
PLEDGING ASSETS
The Trust will not mortgage, pledge, or hypothecate any assets
except to secure permitted borrowings. In those cases, it may
mortgage, pledge, or hypothecate assets having a market value not
exceeding the lesser of the dollar amounts borrowed or 10% of the
value of total assets at the time of the borrowing.
INVESTING IN COMMODITIES, MINERALS, OR REAL ESTATE
The Trust will not invest in commodities, commodity contracts, oil,
gas, or other mineral programs or real estate, except that it may
purchase money market instruments issued by companies that invest in
or sponsor such interests.
UNDERWRITING
The Trust will not engage in underwriting of securities issued by
others, except as it may be deemed to be an underwriter under the
Securities Act of 1933 in connection with the sale of securities in
accordance with its investment objective, policies and limitations.
LENDING CASH OR SECURITIES
The Trust will not lend any of its assets, except that it may
purchase or hold money market instruments, including repurchase
agreements and variable amount demand master notes, permitted by its
investment objective and policies.
ACQUIRING SECURITIES
The Trust will not acquire the voting securities of any issuer. It
will not invest in securities issued by any other investment
company, except as part of a merger, consolidation, or other
acquisition. It will not invest in securities of a company for the
purpose of exercising control or management.
DIVERSIFICATION OF INVESTMENTS
The Trust will not purchase securities issued by any one issuer
having a value of more than 5% of the value of its total assets
except cash or cash items, repurchase agreements, and U.S.
government obligations.
The Trust considers the type of bank obligations it purchases as
cash items.
CONCENTRATION OF INVESTMENTS
The Trust will not purchase money market instruments if, as a result
of such purchase, more than 25% of the value of its total assets
would be invested in any one industry.
However, investing in bank instruments (such as time and demand
deposits and certificates of deposit), U.S. government obligations,
or instruments secured by these money market instruments, such as
repurchase agreements, shall not be considered investments in any
one industry.
INVESTING IN NEW ISSUERS
The Trust will not invest more than 5% of the value of its total
assets in money market instruments of unseasoned issuers, including
their predecessors, that have been in operation for less than three
years.
INVESTING IN ISSUERS WHOSE SECURITIES ARE OWNED BY OFFICERS AND
TRUSTEES OF THE TRUST
The Trust will not purchase or retain the securities of any issuer
if the officers and Trustees of the Trust or its investment adviser,
owning individually more than 1/2 of 1% of the issuer's securities,
together own more than 5% of the issuer's securities.
DEALING IN PUTS AND CALLS
The Trust will not invest in puts, calls, straddles, spreads, or any
combination of them.
INVESTING IN RESTRICTED SECURITIES
The Trust will not invest more than 10% of its total assets in
securities which are subject to restrictions on resale under federal
securities laws, except for Section 4(2) commercial paper.
ISSUING SENIOR SECURITIES
The Trust will not issue senior securities, except as permitted by
the investment objective and policies and investment limitations of
the Trust.
Except with respect to borrowing money, if a percentage limitation is
adhered to at the time of investment, a later increase or decrease in
percentage resulting from any change in value or net assets will not
result in a violation of such restriction.
The Trust did not borrow money, pledge securities, or invest in reverse
repurchase agreements in excess of 5% of the value of its net assets
during the last fiscal year and has no present intent to do so in the
coming fiscal year.
For purposes of its policies and limitations, the Trust considers
certificates of deposit and demand and time deposits by a U.S. branch of
a domestic bank or savings association having capital, surplus, and
undivided profits in excess of $100,000,000 at the time of investment to
be `cash items.''
REGULATORY COMPLIANCE
The Trust may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in
the prospectus and this Statement of Additional Information, in order to
comply with applicable laws and regulations, including the provisions of
and regulations under the Investment Company Act of 1940. In particular,
the Trust will comply with various requirements of Rule 2a-7, which
regulates money market mutual funds. The Trust will also determine the
effective maturity of its investments, as well as its ability to consider
a security as having received the requisite short-term ratings by NRSROs,
according to Rule 2a-7. The Trust may change these operational policies
to reflect changes in the laws and regulations without the approval of
its shareholders.
PURCHASING SHARES
Shares are sold at their net asset value without a sales charge on days
the New York Stock Exchange is open for business. The procedure for
purchasing shares of the Trust is explained in the prospectus under
"Investing in the Trust."
CONVERSION TO FEDERAL FUNDS
It is the Trust's policy to be as fully invested as possible so that
maximum interest may be earned. To this end, all payments from
shareholders must be in federal funds or be converted into federal funds.
This conversion must be made before shares are purchased. Edward D. Jones
& Co. or Federated Shareholder Services Company acts as the shareholder's
agent in depositing checks and converting them to federal funds.
DETERMINING NET ASSET VALUE
The Trust attempts to stabilize the value of a share at $1.00. The days
on which net asset value is calculated by the Trust are described in the
prospectus.
USE OF THE AMORTIZED COST METHOD
The Trustees have decided that the best method for determining the value
of portfolio instruments is amortized cost. Under this method, portfolio
instruments are valued at the acquisition cost as adjusted for
amortization of premium or accumulation of discount rather than at
current market value.
The Trust's use of the amortized cost method of valuing portfolio
instruments depends on its compliance with certain conditions in Rule 2a-
7 (the "Rule") promulgated by the SEC under the Investment Company Act of
1940. Under the Rule, the Trustees must establish procedures reasonably
designed to stabilize the net asset value per share, as computed for
purposes of distribution and redemption, at $1.00 per share, taking into
account current market conditions and the Trust's investment objective.
Under the Rule, the Trust is permitted to purchase instruments which are
subject to demand features or standby commitments. As defined by the
Rule, a demand feature entitles the Trust to receive the principal amount
of the instrument from the issuer or a third party on (1) no more than 30
days' notice or (2) at specified intervals not exceeding one year on no
more than 30 days' notice. A standby commitment entitles the Trust to
achieve same day settlement and to receive an exercise price equal to the
amortized cost of the underlying instrument plus accrued interest at the
time of exercise.
The Trust acquires instruments subject to demand features and standby
commitments to enhance the instruments' liquidity. The Trust treats
demand features and standby commitments as part of the underlying
instruments, because the Trust does not acquire them for speculative
purposes and cannot transfer them separately from the underlying
instruments. Therefore, although the Rule defines demand features and
standby commitments as "puts," the Trust does not consider them to be
separate investments for purposes of its investment policies.
MONITORING PROCEDURES
The Trustees' procedures include monitoring the relationship between
the amortized cost value per share and the net asset value per share
based upon available indications of market value. The Trustees will
decide what, if any, steps should be taken if there is a difference
of more than .5% between the two values. The Trustees will take any
steps they consider appropriate (such as redemption in kind or
shortening the average portfolio maturity) to minimize any material
dilution or other unfair results arising from differences between
the two methods of determining net asset value.
INVESTMENT RESTRICTIONS
The Rule requires that the Trust limit its investments to
instruments that, in the opinion of the Trustees, present minimal
credit risks and have received the requisite rating from one or more
NRSROs. If the instruments are not rated, the Trustees must
determine that they are of comparable quality. The Rule also
requires the Trust to maintain a dollar-weighted average portfolio
maturity (not more than 90 days) appropriate to the objective of
maintaining a stable net asset value of $1.00 per share. In
addition, no instrument with a remaining maturity of more than one
year can be purchased by the Trust.
Should the disposition of a portfolio security result in a dollar-
weighted average portfolio maturity of more than 90 days, the Trust
will invest its available cash to reduce the average maturity to 90
days or less as soon as possible.
It is the Trust's usual practice to hold portfolio securities to maturity
and realize par, unless the investment adviser determines that sale or
other disposition is appropriate in light of the Trust's investment
objective. Under the amortized cost method of valuation, neither the
amount of daily income nor the net asset value is affected by any
unrealized appreciation or depreciation of the portfolio.
In periods of declining interest rates, the indicated daily yield on
shares of the Trust computed by dividing the annualized daily income on
the Trust's portfolio by the net asset value computed as above may tend
to be higher than a similar computation made by using a method of
valuation based upon market prices and estimates.
In periods of rising interest rates, the indicated daily yield on shares
of the Trust computed the same way may tend to be lower than a similar
computation made by using a method of calculation based upon market
prices and estimates.
REDEEMING SHARES
The Trust redeems shares at the next computed net asset value after
Federated Shareholder Services Company receives the redemption request.
Redemption procedures are explained in the prospectus under "Redeeming
Shares."
REDEMPTION IN KIND
The Trust is obligated to redeem shares solely in cash up to $250,000 or
1% of the Trust's net asset value, whichever is less, for any one
shareholder within a 90-day period.
Any redemption beyond this amount will also be in cash unless the
Trustees determine that further cash payments will have a material
adverse effect on remaining shareholders. In such a case, the Trust will
pay all or a portion of the remainder of the redemption in portfolio
instruments, valued in the same way as the Trust determines net asset
value. The portfolio instruments will be selected in a manner that the
Trustees deem fair and equitable.
Redemption in kind is not as liquid as a cash redemption. If redemption
is made in kind, shareholders receiving their securities and selling them
before maturity could receive less than the redemption value of the
securities and could incur certain transaction costs.
VISA ACCOUNT
At the shareholder's request, State Street Bank and Trust Company (`State
Street Bank') will establish a VISA account. This VISA account allows a
shareholder to redeem Trust shares by using a VISA debit card or VISA
checks.
The VISA debit card may be used to purchase merchandise or services from
merchants honoring VISA or to obtain cash advances (which a bank may
limit to $5,000 per account per day) from any bank honoring VISA.
State Street Bank will notify the Trust daily of all charges and cash
advances being presented against the VISA account, and Trust shares will
be redeemed immediately. When a VISA draft or check is presented to State
Street Bank for payment, State Street Bank presents the draft or check to
the Trust. Enough shares are redeemed from the account to cover the
transactions. This enables the shareholder to continue to earn daily
income dividends on Trust shares up to the date they are redeemed.
In the event that there are insufficient shares in the shareholder's
Trust account to cover the amount of the VISA debit card or VISA check
transaction, State Street Bank is authorized to place a stop transfer on
the shareholder's Trust account, to impose a finance charge on the
amount, and to institute collection proceedings.
Shareholders are subject to State Street Bank account regulations. State
Street Bank charges an annual VISA fee of $40 to cover credit fees and
administrative costs. Enough shares are redeemed automatically from the
account to pay the fee. Lost or stolen cards should be reported
immediately to State Street Bank (1-800-331-2451).
State Street Bank and the Trust have the right to modify or terminate the
VISA debit card privilege or to impose additional charges for
establishing or maintaining a VISA account.
MASSACHUSETTS PARTNERSHIP LAW
Under certain circumstances, shareholders may be held personally liable
as partners under Massachusetts law for obligations of the Trust. To
protect its shareholders, the Trust has filed legal documents with
Massachusetts that expressly disclaim the liability of its shareholders
for acts or obligations of the Trust. These documents require notice of
this disclaimer to be given in each agreement, obligation, or instrument
the Trust or its Trustees enter into or sign.
In the unlikely event a shareholder is held personally liable for the
Trust's obligations, the Trust is required to use its property to protect
or compensate the shareholder. On request , the Trust will defend any
claim made and pay any judgment against a shareholder for any act or
obligation of the Trust. Therefore, financial loss resulting from
liability as a shareholder will occur only if the Trust itself cannot
meet its obligations to indemnify shareholders and pay judgments against
them.
TRUST OWNERSHIP
Officers and Trustees own less than 1% of the Trust's outstanding
shares. As of March 26, 1997, no shareholders of record owned 5% of more
of the outstanding shares of the Trust.
EDWARD D. JONES DAILY PASSPORT CASH TRUST MANAGEMENT
Officers and Trustees are listed with their addresses, birthdates,
present positions with Edward D. Jones Daily Passport Cash Trust, and
principal occupations.
John F. Donahue@*
Federated Investors Tower
Pittsburgh, PA
Birthdate: July 28, 1924
Chairman and Trustee
Chairman and Trustee, Federated Investors, Federated Advisers, Federated
Management, and Federated Research; Chairman and Director, Federated
Research Corp. and Federated Global Research Corp.; Chairman, Passport
Research, Ltd.; Chief Executive Officer and Director or Trustee of the
Funds.
Thomas G. Bigley
15 Old Timber Trail
Pittsburgh, PA
Birthdate: February 3, 1934
Trustee
Chairman of the Board, Children's Hospital of Pittsburgh; formerly,
Senior Partner, Ernst & Young LLP; Director, MED 3000 Group, Inc.;
Director, Member of Executive Committee, University of Pittsburgh;
Director or Trustee of the Funds.
John T. Conroy, Jr.
Wood/IPC Commercial Department
John R. Wood and Associates, Inc., Realtors
3255 Tamiami Trail North
Naples, FL
Birthdate: June 23, 1937
Trustee
President, Investment Properties Corporation; Senior Vice-President, John
R. Wood and Associates, Inc., Realtors; Partner or Trustee in private
real estate ventures in Southwest Florida; formerly, President, Naples
Property Management, Inc. and Northgate Village Development Corporation;
Director or Trustee of the Funds.
William J. Copeland
One PNC Plaza - 23rd Floor
Pittsburgh, PA
Birthdate: July 4, 1918
Trustee
Director and Member of the Executive Committee, Michael Baker, Inc.;
formerly, Vice Chairman and Director, PNC Bank, N.A., and PNC Bank Corp.;
Director, Ryan Homes, Inc.; Director or Trustee of the Funds.
James E. Dowd
571 Hayward Mill Road
Concord, MA
Birthdate: May 18, 1922
Trustee
Attorney-at-law; Director, The Emerging Germany Fund, Inc.; Director or
Trustee of the Funds.
Lawrence D. Ellis, M.D.*
3471 Fifth Avenue, Suite 1111
Pittsburgh, PA
Birthdate: October 11, 1932
Trustee
Professor of Medicine, University of Pittsburgh; Medical Director,
University of Pittsburgh Medical Center - Downtown; Member, Board of
Directors, University of Pittsburgh Medical Center; formerly,
Hematologist, Oncologist, and Internist, Presbyterian and Montefiore
Hospitals; Director or Trustee of the Funds.
Edward L. Flaherty, Jr.@
Miller, Ament, Henny & Kochuba
205 Ross Street
Pittsburgh, PA
Birthdate: June 18, 1924
Trustee
Attorney of Counsel, Miller, Ament, Henny & Kochuba; Director, Eat'N Park
Restaurants, Inc.; formerly, Counsel, Horizon Financial, F.A., Western
Region; Director or Trustee of the Funds.
Peter E. Madden
One Royal Palm Way
100 Royal Palm Way
Palm Beach, FL
Birthdate: March 16, 1942
Trustee
Consultant; Former State Representative, Commonwealth of Massachusetts;
formerly, President, State Street Bank and Trust Company and State Street
Boston Corporation; Director or Trustee of the Funds.
Gregor F. Meyer
Boca Grande Club
Boca Grande, FL
Birthdate: October 6, 1926
Trustee
Attorney, Retired Member of Miller, Ament, Henny & Kochuba; Chairman,
Meritcare, Inc.; Director, Eat'N Park Restaurants, Inc.; Director or
Trustee of the Funds.
John E. Murray, Jr., J.D., S.J.D.
President, Duquesne University
Pittsburgh, PA
Birthdate: December 20, 1932
Trustee
President, Law Professor, Duquesne University; Consulting Partner,
Mollica, Murray and Hogue; Director or Trustee of the Funds.
Wesley W. Posvar
1202 Cathedral of Learning
University of Pittsburgh
Pittsburgh, PA
Birthdate: September 14, 1925
Trustee
Professor, International Politics; Management Consultant; Trustee,
Carnegie Endowment for International Peace, RAND Corporation, Online
Computer Library Center, Inc., National Defense University, U.S. Space
Foundation and Czech Management Center; President Emeritus, University of
Pittsburgh; Founding Chairman, National Advisory Council for
Environmental Policy and Technology, Federal Emergency Management
Advisory Board and Czech Management Center; Director or Trustee of the
Funds.
Marjorie P. Smuts
4905 Bayard Street
Pittsburgh, PA
Birthdate: June 21, 1935
Trustee
Public relations/Marketing/Conference Planning, Manchester Craftsmen's
Guild; Restaurant Consultant, Frick Art & History Center; Conference
Coordinator, University of Pittsburgh Art History Department; Director or
Trustee of the Funds.
Richard B. Fisher
Federated Investors Tower
Pittsburgh, PA
Birthdate: May 17, 1923
President
Executive Vice President and Trustee, Federated Investors; Chairman and
Director, Federated Securities Corp.; President or Vice President of some
of the Funds; Director or Trustee of some of the Funds.
J. Christopher Donahue
Federated Investors Tower
Pittsburgh, PA
Birthdate: April 11, 1949
Executive Vice President
President and Trustee, Federated Investors, Federated Advisers, Federated
Management, and Federated Research; President and Director, Federated
Research Corp. and Federated Global Research Corp.; President, Passport
Research, Ltd.; Trustee, Federated Shareholder Services Company, and
Federated Shareholder Services; Director, Federated Services Company;
President or Executive Vice President of the Funds; Director or Trustee
of some of the Funds. Mr. Donahue is the son of John F. Donahue, Chairman
and Trustee of the Company.
Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA
Birthdate: October 22, 1930
Executive Vice President
Vice Chairman, Treasurer, and Trustee, Federated Investors; Vice
President, Federated Advisers, Federated Management, Federated Research,
Federated Research Corp., Federated Global Research Corp. and Passport
Research, Ltd.; Executive Vice President and Director, Federated
Securities Corp.; Trustee, Federated Shareholder Services Company;
Trustee or Director of some of the Funds; President, Executive Vice
President and Treasurer of some of the Funds.
John W. McGonigle
Federated Investors Tower
Pittsburgh, PA
Birthdate: October 26, 1938
Executive Vice President , Secretary and Treasurer
Executive Vice President, Secretary, and Trustee, Federated Investors;
Trustee, Federated Advisers, Federated Management, and Federated
Research; Director, Federated Research Corp. and Federated Global
Research Corp.; Trustee, Federated Shareholder Services Company;
Director, Federated Services Company; President and Trustee, Federated
Shareholder Services; Director, Federated Securities Corp.; Executive
Vice President and Secretary of the Funds; Treasurer of some of the
Funds.
*This Trustee is deemed to be an ``interested person'' as defined in
the Investment Company Act of 1940.
@Member of the Executive Committee. The Executive Committee of the
Board of Trustees handles the responsibilities of the Board
between meetings of the Board.
As used in the table above, `The Funds'' and ``Funds'' mean the
following investment companies: 111 Corcoran Funds; Arrow Funds;
Automated Government Money Trust; Blanchard Funds; Blanchard Precious
Metals Fund, Inc.; Cash Trust Series II; Cash Trust Series, Inc. ; DG
Investor Series; Edward D. Jones & Co. Daily Passport Cash Trust;
Federated Adjustable Rate U.S. Government Fund, Inc.; Federated American
Leaders Fund, Inc.; Federated ARMs Fund; Federated Equity Funds;
Federated Equity Income Fund, Inc.; Federated Fund for U.S. Government
Securities, Inc.; Federated GNMA Trust; Federated Government Income
Securities, Inc.; Federated Government Trust; Federated High Income Bond
Fund, Inc.; Federated High Yield Trust; Federated Income Securities
Trust; Federated Income Trust; Federated Index Trust; Federated
Institutional Trust; Federated Insurance Series; Federated Investment
Portfolios; Federated Investment Trust; Federated Master Trust; Federated
Municipal Opportunities Fund, Inc.; Federated Municipal Securities Fund,
Inc.; Federated Municipal Trust; Federated Short-Term Municipal Trust;
Federated Short-Term U.S. Government Trust; Federated Stock and Bond
Fund, Inc.; Federated Stock Trust; Federated Tax-Free Trust; Federated
Total Return Series, Inc.; Federated U.S. Government Bond Fund;
Federated U.S. Government Securities Fund: 1-3 Years; Federated U.S.
Government Securities Fund: 2-5 Years; Federated U.S. Government
Securities Fund: 5-10 Years; Federated Utility Fund, Inc.; First Priority
Funds; Fixed Income Securities, Inc.; High Yield Cash Trust; Intermediate
Municipal Trust; International Series, Inc.; Investment Series Funds,
Inc.; Investment Series Trust; Liberty Term Trust, Inc. - 1999; Liberty
U.S. Government Money Market Trust; Liquid Cash Trust; Managed Series
Trust; Money Market Management, Inc.; Money Market Obligations Trust;
Money Market Trust; Municipal Securities Income Trust; Newpoint Funds;
Peachtree Funds; RIMCO Monument Funds; Targeted Duration Trust; Tax-Free
Instruments Trust; The Planters Funds; The Starburst Funds; The Starburst
Funds II; The Virtus Funds; Trust for Financial Institutions; Trust for
Government Cash Reserves; Trust for Short-Term U.S. Government
Securities; Trust for U.S. Treasury Obligations; Wesmark Funds; and World
Investment Series, Inc.
TRUSTEES COMPENSATION
<TABLE>
<CAPTION>
AGGREGATE
NAME , COMPENSATION
POSITION WITH FROM TOTAL COMPENSATION PAID
TRUST TRUST* FROM FUND COMPLEX +
<S> <C> <C>
John F. Donahue, $0 $ -0- for the Trust and
Chairman and Trustee 56 other investment companies in the Complex
Thomas G. Bigley, $4,671.80 $108,725 for the Trust and
Trustee 56 other investment companies in the Complex
John T. Conroy, Jr., $5,139.73 $119,615 for the Trust and
Trustee 56 other investment companies in the Complex
William J. Copeland, $5,139.73 $119,615 for the Trust and
Trustee 56 other investment companies in the Complex
James E. Dowd, $5,139.73 $119,615 for the Trust and
Trustee 56 other investment companies in the Complex
Lawrence D. Ellis, M.D., $4,671.80 $108,725 for the Trust and
Trustee 56other investment companies in the Complex
Edward L. Flaherty, Jr., $5,139.73 $119,615 for the Trust and
Trustee 56 other investment companies in the Complex
Peter E. Madden, $4,671.80 $108,725 for the Trust and
Trustee 56 other investment companies in the Complex
Gregor F. Meyer, $4,671.80 $108,725 for the Trust and
Trustee 56other investment companies in the Complex
John E. Murray, Jr., $4,671.80 $108,725 for the Trust and
Trustee 56other investment companies in the Complex
Wesley W. Posvar, $4,671.80 $108,725 for the Trust and
Trustee 56 other investment companies in the Complex
Marjorie P. Smuts, $4,671.80 $108,725 for the Trust and
Trustee 56 other investment companies in the Complex
</TABLE>
*Information is furnished for the fiscal year ended February 28,1997.
+ The information provided is for the last calendar year end.
TRUSTEE LIABILITY
The Trust's Declaration of Trust provides that the Trustees will not be
liable for errors of judgment or mistakes of fact or law. However, they
are not protected against any liability to which they would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence, or
reckless disregard of the duties involved in the conduct of their office.
INVESTMENT ADVISORY SERVICES
ADVISER TO THE TRUST
The Trust's investment adviser, Passport Research, Ltd. (the
`Adviser''), was organized as a Pennsylvania limited partnership in 1981.
Federated Advisers is the general partner of the Adviser and has a 50.5%
interest in the Adviser. The limited partner of the Adviser is Edward D.
Jones & Co. which owns a 49.5% interest in the Adviser. Federated
Advisers is owned by FII Holdings, Inc., a subsidiary of Federated
Investors. All of the voting securities of Federated Investors are owned
by a trust, the Trustees of which are John F. Donahue, his wife, and his
son, J. Christopher Donahue.
At any time, Edward D. Jones & Co. can require Federated Investors to
repurchase all of its partnership interest in the Adviser at the then
current book value. Edward D. Jones & Co. cannot transfer, sell, or
assign its partnership interest in the Adviser without first offering it
to Federated Investors.
As long as Edward D. Jones & Co. owns a partnership interest in the
Adviser, it cannot acquire, organize, or cause the organization of any
other money market mutual fund or enter into arrangements with an
investment adviser or underwriter of any other money market mutual fund
in which Edward D. Jones & Co. will offer the shares of the other money
market mutual fund. Edward D. Jones & Co. has agreed not to solicit
proxies in opposition to management of the Trust unless a court of
competent jurisdiction finds the conduct of a majority of the Trustees
constitutes willful misfeasance, bad faith, gross negligence, or reckless
disregard of its duties.
All of the executive officers of the Trust, except J. Christopher
Donahue, are officers of the Adviser. These relationships are described
under "Edward D. Jones & Co. Daily Passport Cash Trust Management."
The Adviser shall not be liable to the Trust or any shareholder for any
losses that may be sustained in the purchase, holding, or sale of any
security or for anything done or omitted by it, except acts or omissions
involving willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties imposed upon it by its contract with the Trust.
ADVISORY FEES
For its advisory services, Passport Research, Ltd. receives an annual
investment advisory fee as described in the prospectus. During the fiscal
year ended February 28, 1997, the Trust's adviser earned $18,178,478.
During the fiscal years ended February 29, 1996 and February 28, 1995,
the Trust's adviser earned $14,050,499 and $9,914,410, respectively. All
advisory fees were computed on the same basis as in the present contract
described in the prospectus.
BROKERAGE TRANSACTIONS
When selecting brokers and dealers to handle the purchase and sale of
portfolio instruments, the Adviser looks for prompt execution of the
order at a favorable price. In working with dealers, the Adviser will
generally use those who are recognized dealers in specific portfolio
instruments, except when a better price and execution of the order can be
obtained elsewhere. The Adviser makes decisions on portfolio transactions
and selects brokers and dealers subject to guidelines established by the
Trustees. The Adviser may select brokers and dealers who offer brokerage
and research services. These services may be furnished directly to the
Trust or to the Adviser and may include: advice as to the advisability of
investing in securities; security analysis and reports; economic studies;
industry studies; receipt of quotations for portfolio evaluations; and
similar services. Research services provided by brokers and dealers may
be used by the Adviser or its affiliates in advising the Trust and other
accounts. To the extent that receipt of these services may supplant
services for which the Adviser or its affiliates might otherwise have
paid, it would tend to reduce their expenses. The Adviser and its
affiliates exercise reasonable business judgment in selecting brokers who
offer brokerage and research services to execute securities transactions.
They determine in good faith that commissions charged by such persons are
reasonable in relationship to the value of the brokerage and research
services provided. During the fiscal year ended February 28, 1997, no
brokerage commissions were paid by the Trust. For the fiscal years ended
February 29, 1996 and February 28, 1995, no brokerage commissions were
paid by the Trust.
Although investment decisions for the Trust are made independently from
those of the other accounts managed by the Adviser, investments of the
type the Trust may make may also be made by those other accounts. When
the Trust and one or more other accounts managed by the Adviser are
prepared to invest in, or desire to dispose of , the same security,
available investments or opportunities for sales will be allocated in a
manner believed by the Adviser to be equitable to each. In some cases,
this procedure may adversely affect the price paid or received by the
Trust or the size of the position obtained or disposed of by the Trust.
In other cases, however, it is believed that coordination and the ability
to participate in volume transactions will be to the benefit of the
Trust.
OTHER SERVICES
TRUST ADMINISTRATION
Federated Services Company, a subsidiary of Federated Investors, and
Edward D. Jones & Co., provides administrative personnel and services to
the Trust for a fee as described in the prospectus. From March 1, 1994,
to March 1, 1996, Federated Administrative Services served as the Trust's
Administrator. Prior to March 1, 1994, Federated Administrative Services,
Inc. served as the Trust's Administrator. Both former Administrators are
subsidiaries of Federated Investors. For purposes of this Statement of
Additional Information, Federated Services Company, Federated
Administrative Services, and Federated Administrative Services, Inc. may
hereinafter collectively be referred to as the `Administrators.'' For the
fiscal year ended February 28, 1997, the Administrators earned
$3,198,194. For the fiscal years ended February 29, 1996 and February 28,
1995, the Administrators earned $2,421,597, and $1,639,745.
CUSTODIAN AND PORTFOLIO ACCOUNTANT
State Street Bank and Trust Company, Boston, Massachusetts is custodian
for the securities and cash of the Trust. Federated Services Company,
Pittsburgh, Pennsylvania provides certain accounting and recordkeeping
services with respect to the Trust's portfolio investments. The fee paid
for this service is based upon the level of the Trust's average net
assets for the period, plus out-of-pocket expenses.
TRANSFER AGENT
Federated Services Company, through its registered transfer agent,
Federated Shareholder Services Company, maintains all necessary
shareholder records and receives a fee based on the number of shareholder
accounts. Edward D. Jones & Co. is sub-transfer agent for the shares of
the Trust.
INDEPENDENT AUDITORS
The independent auditors for the Trust are Ernst & Young LLP, Pittsburgh,
Pennsylvania.
SHAREHOLDER SERVICES AGREEMENT
This arrangement permits the payment of fees to Edward D. Jones & Co. to
cause services to be provided to shareholders by a representative who has
knowledge of the shareholder's particular circumstances and goals. These
activities and services may include, but are not limited to, providing
office space, equipment, telephone facilities, and various clerical,
supervisory, computer, and other personnel as necessary or beneficial to
establish and maintain shareholder accounts and records; processing
purchase and redemption transactions and automatic investments of client
account cash balances; answering routine client inquiries; and assisting
clients in changing dividend options, account designations, and
addresses.
For the fiscal year ended February 28, 1997, payments in the amount of
$10,580,299 were made pursuant to the Shareholder Services Agreement, all
of which was paid to Edward D. Jones & Co.
TAX STATUS
THE TRUST'S TAX STATUS
The Trust will pay no federal income tax because it expects to meet the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to receive the special tax treatment
afforded to such companies. To qualify for this treatment, the Trust
must, among other requirements:
oderive at least 90% of its gross income from dividends, interest,
and gains from the sale of securities;
oderive less than 30% of its gross income from the sale of
securities held less than three months;
oinvest in securities within certain statutory limits; and
odistribute to its shareholders at least 90% of its net income
earned during the year.
SHAREHOLDERS' TAX STATUS
Shareholders are subject to federal income tax on dividends received as
additional shares. No portion of any income dividend paid by the Trust is
eligible for the dividends received deduction available to corporations.
These dividends, and any short-term capital gains, are taxable as
ordinary income.
CAPITAL GAINS
Because the Trust invests primarily for income and because it
normally holds portfolio instruments to maturity, it is not expected
to realize long-term capital gains.
YIELD
The Trust's yield for the seven-day period ended February 28, 1997 was
4.52%.
The Trust calculates its yield, based upon the seven days ending on the
day of the calculation, called the "base period." This yield is computed
by:
odetermining the net change in the value of a hypothetical account
with a balance of one share at the beginning of the base period,
with the net change excluding capital changes but including the
value of any additional shares purchased with dividends earned
from the original one share and all dividends declared on the
original and any purchased shares;
odividing the net change in the account's value by the value of the
account at the beginning of the base period to determine the base
period return; and
omultiplying the base period return by (365/7).
To the extent that financial institutions and broker/dealers charge fees
in connection with services provided in conjunction with an investment in
the Trust, the performance will be reduced for those shareholders paying
those fees.
EFFECTIVE YIELD
The Trust's effective yield for the seven-day period ended February
28, 1997 was 4.63%.
The Trust's effective yield is computed by compounding the unannualized
base period return by:
oadding 1 to the base period return;
oraising the sum to the 365/7th power; and
osubtracting 1 from the result.
TOTAL RETURN
Average annual total return is the average compounded rate of return for
a given period that would equate a $1,000 initial investment to the
ending redeemable value of that investment. The ending redeemable value
is computed by multiplying the number of shares owned at the end of the
period by the net asset value per share at the end of the period. The
number of shares owned at the end of the period is based on the number of
shares purchased at the beginning of the period with $1,000, adjusted
over the period by any additional shares, assuming the monthly
reinvestment of all dividends and distributions.
The Trust's average annual total returns for the one, five, and ten-
year periods ended February 28, 1997 were 4.59%, 3.71%, and 5.28%,
respectively.
PERFORMANCE COMPARISONS
The Trust's performance depends upon such variables as:
oportfolio quality;
oaverage portfolio maturity;
otype of instruments in which the portfolio is invested;
ochanges in interest rates on money market instruments;
ochanges in Trust expenses; and
othe relative amount of Trust cash flow.
Investors may use financial publications and/or indices to obtain a more
complete view of the Trust's performance. When comparing performance,
investors should consider all relevant factors such as the composition of
any index used, prevailing market conditions, portfolio compositions of
other funds, and methods used to value portfolio securities and compute
offering price. The financial publications and/or indices which the Trust
uses in advertising may include:
oLIPPER ANALYTICAL SERVICES, INC., ranks funds in various fund
categories by making comparative calculations using total return.
Total return assumes the reinvestment of all income dividends and
capital gains distributions, if any. From time to time, the Trust
will quote its Lipper ranking in the "money market instruments"
category in advertising and sales literature.
Advertisements and other sales literature for the Trust may refer to
total return. Total return is the historic change in the value of an
investment in the Trust based on the monthly reinvestment of dividends
over a specified period of time.
From time to time as it deems appropriate, the Trust may advertise its
performance using charts, graphs, and descriptions, compared to federally
insured bank products including certificates of deposit and time
deposits.
Advertising and other promotional literature may include charts,
graphs and other illustrations using the Trust's returns, or returns in
general, that demonstrate basic investment concepts such as tax-deferred
compounding, dollar-cost averaging and systematic investment. In
addition, the Trust can compare its performance, or performance for the
types of securities in which it invests, to a variety of other
investments, such as bank savings accounts, certificates of deposit, and
Treasury bills.
ECONOMIC AND MARKET INFORMATION
Advertising and sales literature for the Trust may include discussions of
economic, financial and political developments and their effect on the
securities market. Such discussions may take the form of commentary on
these developments by Trust portfolio managers and their views and
analysis on how such developments could affect the Funds. In addition,
advertising and sales literature may quote statistics and give general
information about the mutual fund industry, including the growth of the
industry, from sources such as the Investment Company Institute.
ABOUT FEDERATED INVESTORS
Federated Investors is dedicated to meeting investor needs which is
reflected in its investment decision making-structured, straightforward,
and consistent. This has resulted in a history of competitive performance
with a range of competitive investment products that have gained the
confidence of thousands of clients and their customers.
The company's disciplined security selection process is firmly rooted
in sound methodologies backed by fundamental and technical research.
Investment decisions are made and executed by teams of portfolio
managers, analysts, and traders dedicated to specific market sectors.
These traders handle trillions of dollars in annual trading volume.
In the money market sector, Federated Investors gained prominence in the
mutual fund industry in 1974 with the creation of the first institutional
money market fund. Simultaneously, the company pioneered the use of the
amortized cost method of accounting for valuing shares of money market
funds, a principal means used by money managers today to value money
market fund shares. Other innovations include the first institutional
tax-free money market fund. As of December 31, 1996, Federated Investors
managed more than $50.3 billion in assets across 50 money market funds,
including 18 government,11 prime and 21 municipal with assets
approximating $28.0 billion,$12.8 billion and $9.5 billion, respectively.
J. Thomas Madden, Executive Vice President, oversees Federated Investors'
equity and high yield corporate bond management while William D. Dawson,
Executive Vice President, oversees Federated Investors' domestic fixed
income management. Henry A. Frantzen, Executive Vice President, oversees
the management of Federated Investors' international and global
portfolios.
MUTUAL FUND MARKET
Thirty-seven percent of American households are pursuing their financial
goals through mutual funds. These investors, as well as businesses and
institutions, have entrusted over $3.5 trillion to the more than 6,000
funds available.*
Federated Investors, through its subsidiaries, distributes mutual funds
for a variety of investment applications. Specific markets include:
INSTITUTIONAL CLIENTS
Federated Investors meets the needs of more than 4,000 institutional
clients nationwide by managing and servicing separate accounts and mutual
funds for a variety of applications, including defined benefit and
defined contribution programs, cash management, and asset/liability
management. Institutional clients include corporations, pension funds,
tax-exempt entities, foundations/endowments, insurance companies, and
investment and financial advisers. The marketing effort to these
institutional clients is headed by John B. Fisher, President,
Institutional Sales Division.
BANK MARKETING
Other institutional clients include close relationships with more than
1,600 banks and trust organizations. Virtually all of the trust divisions
of the top 100 bank holding companies use Federated funds in their
clients' portfolios. The marketing effort to trust clients is headed by
Mark R. Gensheimer, Executive Vice President, Bank Marketing & Sales.
BROKER/DEALERS AND BANK BROKER/DEALER SUBSIDIARIES
Federated funds are available to consumers through major brokerage firms
nationwide - we have over 2,200 broker/dealer and bank broker/dealer
relationships across the country - supported by more wholesalers than any
other mutual fund distributor. Federated's service to financial
professionals and institutions has earned it high ratings in several
surveys performed by DALBAR, Inc. DALBAR is recognized as the industry
benchmark for service quality measurement. The marketing effort to these
firms is headed by James F. Getz, President, Federated Securities Corp.
*Source: Investment Company Institute
Cusip 480023100
8032801B (4/97)
PART C. OTHER INFORMATION.
Item 24. Financial Statements and Exhibits:
(a) Financial Statements (Filed in Part A)
(b) Exhibits:
(1) Conformed copy of the Declaration of Trust as amended
(2) Copy of By-Laws of the Registrant as amended (15);
(3) Not applicable;
(4) Copy of Specimen Certificate for Shares of Beneficial
Interest of the Registrant (15);
(5) Conformed copy of the Investment Advisory Contract of
the Registrant (11);
(6) (i) Conformed copy of Distributor's Contract
(11);
(ii) Copy of the Selling Group Agreement (15);
(7) Not applicable;
(8) (i) Conformed copy of the revised Custodian
Agreement of the Registrant (15);
(ii) Conformed copy of the revised Transfer Agency
and Service Agreement (15);
(9) (i) Conformed copy of Administrative Services
Agreement (15);
(ii) Conformed copy of Shareholder Services
Agreement (15);
(iii)..........Conformed copy of Shareholder Services
Sub- Contract (15);
(10) Conformed copy of Opinion and Consent of Counsel as
to Legality of Shares being registered (15);
(11) Conformed copy of Consent of Independent Accountants;
+
(12) Not applicable;
(13) Conformed copy of Initial Capital Understanding (15);
(14) Not applicable;
(15) Not applicable;
(16) Copy of Schedule for Computation of Yield Calculation
(9);
(17) Copy of Financial Data Schedule; +
(18) Not applicable;
(19) Conformed copy of Power of Attorney. +
+ All exhibits have been filed electronically.
9. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 18 on Form N-1A filed April 22, 1989. (File Nos. 2-
66437 and 811-2993)
11. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 20 on Form N-1A filed February 20, 1990. (File
Nos. 2-66437 and 811-2993)
15. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 31 on Form N-1A filed April 20, 1995. (File Nos. 2-
66437 and 811-2993)
Item 25. Persons Controlled by or Under Common Control with Registrant:
None
Item 26. Number of Holders of Securities:
Number of Record Holders
Title of Class as of April 3, 1997
Shares of Beneficial Interest 585,146
(no par value)
Item 27. Indemnification: (11)
Item 28. Business and Other Connections of Investment Adviser:
For a description of the other business of the investment
adviser, see the section entitled "Trust Information -
Management of the Trust''in Part A. The affiliations with the
Registrant of four of the Trustees and one of the Officers of
the investment adviser are included in Part B of this
Registration Statement under "Edward D. Jones Daily Passport
Cash Trust Management.'' The remaining Trustee of the
investment adviser, his position with the investment adviser,
and, in parentheses, his principal occupation is: Mark D.
Olson (Partner, Wilson, Halbrook & Bayard), 107 W. Market
Street, Georgetown, Delaware 19947.
The remaining Officers of the investment adviser are: William
D. Dawson,III, Henry A. Frantzen, J. Thomas Madden, and Mark L.
Mallon, Executive Vice Presidents; Peter R. Anderson, Drew J.
Collins, Jonathan C. Conley, Deborah A. Cunningham, Mark E.
Durbiano, J. Alan Minteer, and Mary Jo Ochson, Senior Vice
Presidents; J. Scott Albrecht, Joseph M. Balestrino, Randall S.
Bauer, David F. Belton, Christine A. Bosio, David A. Briggs,
Kenneth J. Cody, Alexandre de Bethmann, Linda A. Duessel,
Michael J. Donnelly, Michael P. Donnelly, Kathleen M. Foody-
Malus, Thomas M. Franks; Edward C. Gonzales, James E.
Grefenstette, Susan R. Hill, Stephen A. Keen, Robert M. Kowit,
Mark S. Kopinski, Jeff A. Kozemchak, Marian R. Marinack, Sandra
L. McInerney, Susan M. Nason, Robert J. Ostrowski, Charles A.
Ritter, Frank Semack, Aash M. Shah, Scott B. Schermerhorn,
William F. Stotz, Tracy P.Stouffer, Edward J. Tiedge, Paige M.
Wilhelm, Jolanta M. Wysocka, Vice Presidents; Todd A. Abraham,
Stafanie L. Bachhuber, Michael W. Casey, William R. Jamison,
Constantine Kartsonsas, Robert M. March, Joseph M. Natoli,
Keith J. Sabol, and Michael W. Sirianni, Assistant Vice
Presidents; Stephen A. Keen, Secretary; Thomas R. Donahue,
Treasurer and Assistant Secretary; Richard B. Fisher, Assistant
Secretary and Assistant Treasurer; Christine I. McGonigle,
Assistant Secretary. The business address of each of the
Officers of the investment adviser is Federated Investors
Tower, Pittsburgh, Pennsylvania 15222-3779. These individuals
are also officers of a majority of the investment advisers to
the Funds listed in Part B of this Registration Statement.
11. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 20 on Form N-1A filed February 20, 1990.
(File Nos. 2-66437 and 811-2993)
Item 29. Principal Underwriters:
(a) None
(b)Edward D. Jones & Co. L.P. is a limited partnership.
However, the general partner is EDJ Holding Company, Inc.,
and the sole limited partner is The Jones Financial
Companies, a Limited Partnership. Listed below are the
names of the general principals of The Jones Financial
Companies, a Limited Partnership. The address for each of
the foregoing general principals is: 201 Progress Parkway,
Maryland Heights, Missouri 63043. None of the general
principals hold offices or positions with the Registrant.
Allan J. Anderson IR Development
Charles E. Armstrong Jr. Investment Representative (IR)
Jandy Arnold Insurance/Annuity Operations
John W. Bachmann Managing Principal
Thomas M. Bartow Advanced IR Training
James D. Bashor IR -Regional Leader
Armin Baumgartel IR - Regional Leader
Robert J. Beck Municipal Bonds
Roger W. Bennett IR - Regional Leader
John D. Beuerlein IR Development
John S. Borota Sales Recruiting
Robb Boyd IR - Regional Leader
Harold Britton IR - Regional Leader
William H. Broderick III Equity Marketing
Morton L. Brown Managed Asset Services
Daniel A. Burkhardt Investment Banking
Jack L. Cahill IR Development
Brett A. Campbell New IR Marketing
William F. Campbell IR - Regional Leader
Donald H. Carter IR - Regional Leader
John J. Caruso Advanced Technology
Guy R. Cascella IR - Regional Leader
Pamela Cavness Compliance
Craig E. Christell IR - Regional Leader
Richard A. Christensen Jr. Mutual Funds Processing
Robert J. Ciapciak Marketing Research
Stephan P. Clement Video
Cheryl J. Cook-Schneider Compliance ACD
Loyola A. Cronin Branch Staff Training
Terry Crow IR - Regional Leader
Stan Cunningham IR - Regional Leader
H.J. Daily IR - Regional Leader
Paul Daniels IR - Regional Leader
Doug Davis IR - Regional Leader
John M. Delavan IR - Regional Leader
Jim Docksey IR - Regional Leader
Cynthia Doria Legal
Brian T. Duffy IR - Regional Leader
William T. Dwyer IR - Regional Leader
Abe W. Dye IR Development
Norman L. Eaker Security Processing
R. Allen Eaker IR - Regional Leader
Kevin Eberle IR - Regional Leader
Michael J. Esser Advanced IR Training
Kevin N. Flatt Fixed Income Marketing
Steve Fraser Security Processing
Colleen Geraty Advertising
Chris A. Gilkison Branch Locations
Barbara G. Gilman Trust Marketing
Steven L. Goldberg Central Services
Ron Gorgen Field Services
Robert L. Gregory Sales Recruiting
Kevin C. Haarberg IR - Regional Leader
Stuart Hamilton IR - Regional Leader
Patricia F. Hannum Marketing Services
Paul Hansell IR - Regional Leader
Stephen P. Harrison IR - Regional Leader
James W. Harrod IR Development
David L. Hayes IR - Regional Leader
Randy K. Haynes New Branch Services
Peter R. Heisler IR - Regional Leader
Clif Helbert IR - Regional Leader
John M. Hess IR - Regional Leader
Mary Beth Heying Communications
Douglas E. Hill Marketing Division
Bill Hizar Jr. Investment Banking
Bill Hochstetler IR - Regional Leader
Alan Holmes IR - Regional Leader
Michael Holmes Sr. Human Resource Services
Don R. Howard IR - Regional Leader
Earl Hull Jr. IR - Regional Leader
Glenn Hunn Data Processing Administration
Gary R. Hunziker IR - Regional Leader
Thomas Iorio IR - Regional Leader
Joe Johnston IR - Regional Leader
Myles P. Kelly St. Louis Accounting
Timothy J. Kirley Customer Segments
Tom Kliethermes IR - Regional Leader
Tim Koehl IR - Regional Leader
Jim Krekeler Investment Banking
Rick Kruse Boone National Division
Charles R. Larimore Branch Administration Division
Mark Leverenz Securities Processing
Michele Liebman Usability Lab
Rhonda Liesenfeld Government Bonds
Richie L. Malone Data Processing Division
J. Kevin Mangum IR
Richard G. McCarty Jr. IR - Regional Leader
Tim McCoy Customer Retention Marketing
Tom Migneron Internal Audit
Richard G. Miller Jr IR - Regional Leader
Thomas W. Miltenberger Mutual Funds Marketing
Merry L. Mosbacher Investment Banking
Rodger W. Naugle IR -Regional Leader
Steven Novik Accounting
Bob Nyberg IR - Regional Leader
Barbara Ostby IR - Regional Leader
Curt Paul IR - Regional Leader
Greg Picogna IR - Regional Leader
Darryl L. Pope Operations Division
Ray Raley, Jr. Equities Division
Gary D. Reamey Canada Division
Trevor D. Reese Jr. IR - Regional Leader
James L. Regnier IR Bonus Team
Ray L. Robbins Jr. Research
Wann V. Robinson IR - Regional Leader
Doug Rosen IR - Regional Leader
Harry John Sauer III Income Distribution/Customer Loan
Art Schlappi IR - Regional Leader
Thomas D. Schlosser IR - Regional Leader
Philip R. Schwab Debt Syndicate
Festus W. Shaughnessy III New IR Training
Robert D. Shillingstad IR - Regional Leader
Connie W. Silverstein Sales Hiring
Alan F. Skrainka Research Marketing
John S. Sloop Sr. IR Development
Randy Smith IR - Regional Leader
Ronald H. Smith IR - Regional Leader
Lawrence R. Sobol Legal
Lawrence E. Thomas Government Bonds
Terry R. Tucker Telecommunications/Computer
Operations
Richard G. Unnerstall DP Training/Capcaity Planning
Steven Vanvoorhis IR - Regional Leader
Susan Venn Financial Reporting
Robert L. Virgil Jr. Management Training
Jo Ann Von Bergen Cash Operations
Donald E. Walter Compliance Division
James D. Weddle IR Development
Vicki Westall Product Review
Thomas J. Westphal Customer Reporting
Heidi Whitfield Product Review
Robert D. Williams IR -Regional Leader
Price P. Woodward IR - Regional Leader
Alan T. Wright Investment Banking
Brad Ytterberg Customer Seq.
Judy Zeillman Human Resource
(c) Not applicable
Item 30. Location of Accounts and Records:
All accounts and records required to be maintained by Section
31(a) of the Investment Company Act of 1940 and Rules 31a-1
through 31a-3 promulgated thereunder are maintained at one of
the following locations:
Edward D. Jones & Co. Daily Federated Investors Tower
Passport Cash Trust Pittsburgh, Pennsylvania
15222-3779
State Street Bank and Trust P.O. Box 8600
Company ("Custodian") Boston, Massachusetts
02266-8600
Federated Shareholder Services Company
("Transfer Agent and Federated Investors Tower
Dividend Disbursing Agent") Pittsburgh, Pennsylvania
15222-3779
Federated Services Company Federated Investors Tower
("Administrator") Pittsburgh, Pennsylvania
15222-3779
Passport Research, Ltd. Federated Investors Tower
("Adviser") Pittsburgh, Pennsylvania
15222-3779
Item 31. Management Services: Not applicable.
Item 32. Undertakings:
Registrant hereby undertakes to comply with the provisions of
Section 16(c) of the 1940 Act with respect to the removal of
Trustees and the calling of special shareholder meetings by
shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, EDWARD D. JONES & CO.
DAILY PASSPORT CASH TRUST, has duly caused this Amendment to its
Registration Statement to be signed on its behalf by the undersigned,
thereto duly authorized, in the City of Pittsburgh and Commonwealth of
Pennsylvania, on the 21st day of April, 1997.
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
BY: /s/ S. Elliott Cohan
S. Elliott Cohan, Assistant Secretary
Attorney in Fact for John F. Donahue
April 21, 1997
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to its Registration Statement has been signed below by the
following person in the capacity and on the date indicated:
NAME TITLE DATE
By:/s/ S. Elliott Cohan
S. Elliott Cohan Attorney In Fact April 21, 1997
ASSISTANT SECRETARY For the Persons
Listed Below
NAME TITLE
John F. Donahue* Chairman and Trustee
(Chief Executive Officer)
Richard B. Fisher* President
John W. McGonigle* Treasurer, Executive Vice
President and Secretary
(Principal Financial and
Accounting Officer)
Thomas G. Bigley* Trustee
John T. Conroy, Jr.* Trustee
William J. Copeland* Trustee
James E. Dowd* Trustee
Lawrence D. Ellis, M.D.* Trustee
Edward L. Flaherty, Jr.* Trustee
Peter E. Madden* Trustee
Gregor F. Meyer* Trustee
John E. Murray, Jr.* Trustee
Wesley W. Posvar* Trustee
Marjorie P. Smuts* Trustee
* By Power of Attorney
Exhibit (11) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Financial Highlights"
and to the use of our report dated April 9, 1997, in Post-Effective Amendment
Number 33 to the Registration Statement (Form N-1A No. 2-66437) and the related
Prospectus of Edward D. Jones & Co. Daily Passport Cash Trust dated April 30,
1997.
By:/s/ Ernst & Young LLP
ERNST & YOUNG LLP
Pittsburgh, Pennsylvania
April 21, 1997
Exhibit 19 under Form N-1A
Exhibit 24 under Item 601/Reg. S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and the Deputy General Counsel of Federated Services Company, and
each of them, their true and lawful attorneys-in-fact and agents, with full
power of substitution and resubstitution for them and in their names, place and
stead, in any and all capacities, to sign any and all documents to be filed with
the Securities and Exchange Commission pursuant to the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940, by
means of the Securities and Exchange Commission's electronic disclosure system
known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
/s/ John F. Donahue Chairman and Trustee April 2, 1997
John F. Donahue (Chief Executive Officer)
/s/ Richard B. Fisher President April 2, 1997
Richard B. Fisher
/s/ John W. McGonigle Treasurer, Executive April 2, 1997
John W. McGonigle Vice President and Secretary
(Principal Financial and
Accounting Officer)
/s/ Thomas G. Bigley Trustee April 2, 1997
Thomas G. Bigley
/s/ John T. Conroy, Jr. Trustee April 2, 1997
John T. Conroy, Jr.
/s/ William J. Copeland Trustee April 2, 1997
William J. Copeland
/s/ James E. Dowd Trustee April 2, 1997
James E. Dowd
/s/ Lawrence D. Ellis, M.D. Trustee April 2, 1997
Lawrence D. Ellis, M.D.
/s/ Edward L. Flaherty, Jr. Trustee April 2, 1997
Edward L. Flaherty, Jr.
/s/ Peter E. Madden Trustee April 2, 1997
Peter E. Madden
/s/ Gregor F. Meyer Trustee April 2, 1997
Gregor F. Meyer
/s/ John E. Murray, Jr. Trustee April 2, 1997
John E. Murray, Jr.
/s/ Wesley W. Posvar Trustee April 2, 1997
Wesley W. Posvar
/s/ Marjorie P. Smuts Trustee April 2, 1997
Marjorie P. Smuts
Sworn to and subscribed before me this 2nd day of April, 1997
Marie M. Hamm
Notarial Seal
Marie M. Hamm, Notary Public
Plum Boro, Allegheny County
My Commission Expires Oct. 9, 2000
Member, Pennsylvania Association of Notaries
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<NAME> Edward D. Jones & Co. Daily Passport Cash Trus
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> Feb-28-1997
<INVESTMENTS-AT-COST> 4,714,131,395
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<TOTAL-LIABILITIES> 47,457,244
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<NET-INVESTMENT-INCOME> 189,817,313
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 189,817,313
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 189,817,313
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,504,255,897
<NUMBER-OF-SHARES-REDEEMED> 15,881,957,509
<SHARES-REINVESTED> 186,566,785
<NET-CHANGE-IN-ASSETS> 808,865,173
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 18,178,478
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 37,821,251
<AVERAGE-NET-ASSETS> 4,232,119,401
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.040
<PER-SHARE-GAIN-APPREC> 0.000
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