PRESIDENT'S MESSAGE
[Graphic]
Dear Fellow Shareholder:
I am pleased to present the Semi-Annual Report to shareholders for the Edward D.
Jones & Co. Daily Passport Cash Trust. This report covers the six-month period
from March 1, 1997 to August 31, 1997. It begins with an interview with
portfolio manager, Susan R. Hill, Assistant Vice President of Passport Research,
Ltd., and continues with a complete listing of the Trust's holdings and
financial statements.
Since its inception in 1980, the Trust has benefited its hundreds of thousands
of shareholders and clients of Edward Jones by providing:
Daily dividends,
Daily liquidity,
Competitive yields, and
Stable valuation of $1/share since inception.
For nearly two decades, Edward Jones' clients have entrusted a portion of their
savings and cash in a Passport Account with these attractive features and
services. The Trust has grown from $30 million in April of 1980 to $5.1 billion
as of August 31, 1997.
The Trust invests exclusively in short-term money market securities issued
by the U.S. government, its agencies or instrumentalities, or in repurchase
agreements, which are fully collateralized by U.S. government issues.
For the six-month reporting period ended August 31, 1997, the Trust had a 7-day
net annualized yield of 4.78% and a 7-day effective annualized yield of 4.89%.*
It is important to remember that an investment in the Trust is neither insured
nor guaranteed by the U.S. government, and there is no assurance that the Trust
will maintain a stable $1.00 share price in the future. It is gratifying also to
note that no shareholder has ever lost a penny or suffered any decline in the
Trust's share value during the 18 years of investing in short-term money market
issues.
Thank you for participating in the daily earning power of Edward D. Jones &
Co. Daily Passport Cash Trust. As always, we welcome your questions and
comments.
Sincerely,
[Graphic]
Richard B. Fisher
President
October 15, 1997
* Past performance is not indicative of future results. Yield will vary.
INVESTMENT REVIEW
Q What is your analysis of the economic environment during the six-month
reporting period and its effect on the short-term marketplace?
A After keeping monetary policy on hold for over a year, the Federal Reserve
Board (the "Fed") voted to raise the Federal Funds Target Rate by 25 basis
points on March 25, 1997, to 5.50% from 5.25%. The move was seen as being
preemptive against inflation in the face of persistent demand. The economy
remained robust in 1997, with the Gross Domestic Product posting rates of growth
of 4.90% and 3.60%, respectively, for the first and second quarters of the year,
and is expected to continue at this above-trend pace in the third quarter. At
the same time, however, inflationary pressures have remained quite benign over
the reporting period in spite of the impressive performance of the economy, and
what has generally been thought to be tight labor market conditions.
Short-term interest rates rose in anticipation of the tightening by the Fed in
late March, and remained relatively high as market participants sought to
ascertain whether another move was soon to follow. As inflationary pressures
remained mild, however, fears of a near-term tightening by the Fed gradually
receded, and all but vanished by late June. For the remainder of the reporting
period, short-term interest rates traded within a rather narrow range. Movements
in the one-year Treasury bill over the reporting period best revealed the
market's shifting sentiment. At 5.70% in early March, the one-year Treasury bill
traded as high as 6.00% in late April, but then fell to as low as 5.40% before
closing the reporting period at 5.60%.
In addition to economic fundamentals, very short-term Treasury securities were
quite strongly influenced by technical factors over this reporting period, most
notably due to a reduction in the size of Treasury bill auctions. The
three-month Treasury bill began the reporting period around 5.25%, rose as high
as 5.40% before plummeting to 4.80% in late May, and closed the reporting period
at 5.20%. Spreads on similar maturity U.S. government agency securities widened
over the reporting period, and remained reflective of the overall economic
fundamental outlook in the marketplace.
Q What strategies guided the Trust during the period?
A The Trust maintained a 35- to 45-day average maturity target range over the
reporting period, a neutral stance, and moved within that range according to
relative value opportunities. While the average maturity for the Trust was in
the lower half of the target range early in the reporting period, in
anticipation of the tightening move by the Fed, the reporting period ended with
the average maturity mostly in the upper half of that range. We reinforced the
barbelled structure of the portfolio, combining a significant position in
repurchase agreements with purchases of longer term securities with maturities
between 6- and 12- months. Because of the technical influences in the Treasury
market, we concentrated our purchases in fixed and floating rate U.S. government
agency securities.
Q As we move toward the end of 1997, where does the short-term market appear to
be heading?
A With one preemptive tightening under their belt, Fed officials now appear to
be debating, both publicly and privately, whether or not the conditions at hand,
strong growth yet little to no price inflation, would indicate that the
non-inflationary potential of the economy is actually greater than previously
thought. Growth of 2.00% to 2.50% has generally been embraced as a
non-inflationary potential. As the Fed continues to analyze the situation, the
front end of the Treasury and government markets are destined to be range-bound,
absent any signs of upward pressures on prices.
PORTFOLIO OF INVESTMENTS
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM OBLIGATIONS--29.7%
$ 9,500,000 Federal Farm Credit Bank Note--0.2% 5.700%, 9/2/1998 $ 9,486,805
40,000,000 (a)Federal Farm Credit Bank, Floating Rate Note--0.8% 39,992,501
5.510%, 10/1/1997
93,900,000 Federal Home Loan Bank Notes--1.8% 5.460% - 6.025%, 93,853,044
11/18/1997 - 4/15/1998
267,850,000 (b)Federal Home Loan Bank, Discount Notes--5.2% 5.290% - 264,310,990
5.620%, 9/10/1997 - 3/16/1998
88,500,000 (a)Federal Home Loan Bank, Floating Rate Notes--1.7% 88,474,008
5.571% - 5.623%, 9/4/1997 - 9/22/1997
40,900,000 Federal Home Loan Mortgage Corp. Notes--0.8% 5.715% - 40,891,502
5.840%, 3/17/1998 - 4/8/1998
70,000,000 (a)Federal Home Loan Mortgage Corp., Floating Rate 69,956,075
Note--1.4% 5.413%, 9/22/1997
237,500,000 Federal National Mortgage Association Notes--4.6% 5.630% - 237,316,432
6.000%, 3/13/1998 - 9/9/1998
337,630,000 (b)Federal National Mortgage Association, Discount 333,693,971
Notes--6.5% 5.410% - 5.640%, 10/6/1997 - 12/30/1997
161,800,000 (a)Federal National Mortgage Association, Floating Rate 161,780,029
Notes--3.2% 5.507% - 5.660%, 9/3/1997 - 9/15/1997
73,000,000 (a)Student Loan Marketing Association, Floating Rate 72,997,386
Notes--1.4% 5.450% - 5.560%, 9/9/1997
18,000,000 (b)United States Treasury Bill--0.4% 5.300%, 3/5/1998 17,509,750
84,693,607 United States Treasury Notes--1.7% 6.125% - 7.250%, 84,693,607
2/15/1998 - 7/31/1998
Total Short-Term Obligations 1,514,956,100
(C)REPURCHASE AGREEMENTS--70.7%
125,000,000 Bear, Stearns and Co., 5.625%, dated 8/29/1997, due 125,000,000
9/2/1997
100,000,000 CIBC Wood Gundy Securities Corp., 5.620%, dated 8/29/1997, 100,000,000
due 9/2/1997
440,000,000 CS First Boston, 5.620%, dated 8/29/1997, due 9/2/1997 440,000,000
698,000,000 Goldman Sachs Group, LP, 5.610%, dated 8/29/1997, due 698,000,000
9/2/1997
173,000,000 Greenwich Capital Markets, Inc., 5.620%, dated 8/29/1997, 173,000,000
due 9/2/1997
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
(C)REPURCHASE AGREEMENTS--(CONTINUED)
$ 243,000,000 HSBC Securities, Inc., 5.625%, dated 8/29/1997, due $ 243,000,000
9/2/1997
40,000,000 Harris-Nesbitt Thomson Securities, Inc., 5.570%, dated 40,000,000
8/29/1997, due 9/2/1997
180,000,000 Merrill Lynch, Pierce, Fenner and Smith, 5.610%, dated 180,000,000
8/29/1997, due 9/2/1997
200,000,000 Smith Barney Shearson, Inc., 5.610%, dated 8/29/1997, due 200,000,000
9/2/1997
24,400,000 SBC Capital Markets, 5.570%, dated 8/29/1997, due 9/2/1997 24,400,000
395,000,000 Toronto Dominion Securities (USA) Inc., 5.625%, dated 395,000,000
8/29/1997, due 9/2/1997
75,000,000 UBS Securities, Inc., 5.620%, dated 8/29/1997, due 75,000,000
9/2/1997
106,000,000 (d)Chase Government Securities, Inc., 5.550%, dated 106,000,000
7/7/1997, due 9/5/1997
43,000,000 (d)Chase Government Securities, Inc., 5.600%, dated 43,000,000
7/1/1997, due 9/30/1997
95,000,000 (d)CS First Boston, 5.520%, dated 8/19/1997, due 9/22/1997 95,000,000
132,000,000 (d)CS First Boston, 5.560%, dated 8/8/1997, due 11/10/1997 132,000,000
115,000,000 (d)Goldman Sachs Group, LP, 5.530%, dated 8/21/1997, due 115,000,000
10/20/1997
140,000,000 (d)Lehman Brothers Government Securities, 5.520%, dated 140,000,000
8/19/1997, due 9/25/1997
112,000,000 (d)SBC Capital Markets, 5.520%, dated 7/29/1997, due 112,000,000
10/1/1997
175,000,000 (d)UBS Securities, Inc., 5.530%, dated 8/21/1997, due 175,000,000
10/20/1997
Total Repurchase Agreements 3,611,400,000
Total Investments (at amortized cost)(e) $ 5,126,356,100
</TABLE>
(a) Current rate and next reset date shown.
(b) Discount rate at time of purchase.
(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
($5,106,412,868) at August 31, 1997.
The following acronym is used throughout this portfolio:
LP --Limited Partnership
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase agreements $ 3,611,400,000
Investments in securities 1,514,956,100
Total investments in securities, at amortized cost and value $ 5,126,356,100
Income receivable 17,899,440
Total assets 5,144,255,540
LIABILITIES:
Payable for investments purchased 27,462,505
Income distribution payable 7,367,551
Payable to Bank 246,006
Accrued expenses 2,766,610
Total liabilities 37,842,672
Net Assets for 5,106,412,868 shares outstanding $ 5,106,412,868
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER
SHARE:
$5,106,412,868 / 5,106,412,868 shares outstanding $1.00
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
SIX MONTHS ENDED AUGUST 31, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 138,199,196
EXPENSES:
Investment advisory fee $ 10,572,046
Administrative personnel and services fee 1,876,535
Custodian fees 191,442
Transfer and dividend disbursing agent fees and expenses 2,533,153
Directors'/Trustees' fees 30,124
Auditing fees 9,568
Legal fees 7,360
Portfolio accounting fees 86,992
Shareholder services fee 6,213,693
Share registration costs 253,772
Printing and postage 227,660
Insurance premiums 17,664
Taxes 5,060
Miscellaneous 10,356
Total expenses 22,035,425
Net investment income $ 116,163,771
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
(UNAUDITED) FEBRUARY 28,
AUGUST 31, 1997 1997
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 116,163,771 $ 189,817,313
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net investment income (116,163,771) (189,817,313)
SHARE TRANSACTIONS--
Proceeds from sale of shares 9,871,835,255 16,504,255,897
Net asset value of shares issued to shareholders in 111,903,874 186,566,785
payment of distributions declared
Cost of shares redeemed (9,637,346,225) (15,881,957,509)
Change in net assets resulting from share transactions 346,392,904 808,865,173
Change in net assets 346,392,904 808,865,173
NET ASSETS:
Beginning of period 4,760,019,964 3,951,154,791
End of period $ 5,106,412,868 $ 4,760,019,964
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
AUGUST 31, YEAR ENDED FEBRUARY 28 OR 29,
1997 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.02 0.04 0.05 0.04 0.02 0.03
LESS DISTRIBUTIONS
Distributions from net investment income (0.02) (0.04) (0.05) (0.04) (0.02) (0.03)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN(A) 2.39% 4.59% 5.06% 3.78% 2.33% 2.82%
RATIOS TO AVERAGE NET ASSETS
Expenses 0.89%* 0.89% 0.96% 0.98% 0.95% 0.95%
Net investment income 4.67%* 4.49% 4.92% 3.74% 2.31% 2.79%
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $5,106,413 $4,760,020 $3,951,155 $2,464,260 $2,171,225 $2,223,226
</TABLE>
* Computed on an annualized basis.
(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)
NOTES TO FINANCIAL STATEMENTS
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
AUGUST 31, 1997 (UNAUDITED)
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.
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 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.
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 August
31, 1997, capital paid-in aggregated $5,106,412,868. Transactions in shares were
as follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
August 31, 1997 February 28, 1997
<S> <C> <C>
Shares sold 9,871,835,255 16,504,255,897
Shares issued to shareholders in payment of distributions 111,903,874 186,566,785
declared
Shares redeemed (9,637,346,225) (15,881,957,509)
Net change resulting from share transactions 346,392,904 808,865,173
</TABLE>
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 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 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.
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
William J. Copeland
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Peter E. Madden
Gregor F. Meyer
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Richard B. Fisher
President
J. Christopher Donahue
Executive Vice President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer, and Secretary
Matthew S. Hardin
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal. Although money market funds seek to maintain a stable net
asset value of $1.00 per share, there is no assurance that they will be able to
do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses and other
information.
NOTES
NOTES
[Graphic]
Daily Passport
Cash Trust
SEMI-ANNUAL REPORT
August 31, 1997
Edward Jones
201 Progress Parkway
Maryland Heights, MO 63043
1-800-331-2451
Distributor
[Graphic]
Cusip 480023100
8092605 (10/97)
[Graphic]
Serving Individual Investors Since 1871
