SEMI-ANNUAL REPORT
President's Message
Dear Fellow Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Edward D.
Jones & Co. Daily Passport Cash Trust. The trust was established in 1980, and
has provided shareholders competitive rates of return on their cash with daily
liquidity (dollar in, dollar out net asset value). 1 During the last 20 years,
this government securities money market trust has served hundreds of thousands
of investors and has paid hundreds of millions in dividends to shareholders. The
trust is just one of the outstanding investment services offered to Edward
Jones' clients.
This report covers the six-month period from March 1, 1999 through August 31,
1999. It begins with an interview with portfolio manager Susan R. Hill, Vice
President of Passport Research, Ltd., and continues with a complete listing of
the trust's holdings and financial statements.
As the keystone of the Full Service Account, the trust is marking its 20th year
of providing Edward Jones clients, like yourself, with a stable source of daily
income from a portfolio of short-term U.S. government money market securities.
In addition, the trust reached another milestone during the reporting period-the
$8 billion asset level.
During the six-month reporting period, the trust paid dividends to shareholders
totaling $0.02 per share. On August 31, 1999, the 7-day net yield was 4.37% 2
and the 7-day effective yield was 4.47%.2
Thank you for keeping your ready cash working and accessible through Edward
D. Jones & Co. Daily Passport Cash Trust. As always, we welcome your
questions and comments.
Sincerely,
[Graphic]
Richard B. Fisher
President
October 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the trust.
2 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the trust's current earnings.
Investment Review
WHAT IS YOUR REVIEW OF THE RISING RATE ENVIRONMENT THAT CHARACTERIZED THE FIRST
HALF OF THE TRUST'S FISCAL YEAR?
Relentless consumer spending and a robust housing market drove growth of 4.30%
in the first quarter of 1999. This came on the heels of a vigorous 6.00% pace of
growth in the fourth quarter of 1998. Such evidence of hearty growth clearly
exceeded measures of the non-inflationary potential of the economy. Although
overall signs of inflation remained benign, interest rates rose across the yield
curve as expectations built that the Federal Reserve Board (the "Fed") would
need to tighten monetary policy to preempt price pressures down the road. By the
time of Chairman Greenspan's testimony before the Joint Economic Committee later
in June, where he hinted that it may be appropriate for the Fed to take back
some of the liquidity that had been infused into the market in the fourth
quarter of 1998, market expectations reflected the inevitable near-term
tightening with more to follow. As a result, when the Fed opted to tighten by 25
basis points on June 30, 1999, but announced a neutral intermeeting policy
stance, the market took this as a sign that additional tightenings may not be
forthcoming. This relief proved to be short-lived, however, as Fed commentary
and economic data continued to point to the need for additional action by the
Fed, and interest rates ticked up again. The Fed confirmed this expectation with
an additional 25 basis point tightening at the August Federal Open Market
Committee meeting, bringing the Fed Funds Target Rate to its current 5.25%
level.
Movements in the 90-day agency discount note reflected the shifting market
sentiment over this reporting period. Trading around 4.80% at the beginning of
March, this security's yield rose to 5.10% by the time of the first tightening
by the Fed at the end of June. The yield resumed its upward climb by the end of
July, rising to 5.30% by the time of the second move by the Fed in late August,
and ended the reporting period around that level.
HOW HAS THE TRUST'S YIELD RESPONDED TO THIS ENVIRONMENT, AND WHAT STRATEGIES
GUIDED THE TRUST DURING THE REPORTING PERIOD?
We managed the portfolio within a 40-50 day average maturity range over the
reporting period, maximizing performance through ongoing relative value
analysis. We added to the trust's position in agency floating rate
securities-increasing the total exposure from 19% to 25% of fund assets- in
order to enhance the portfolio's responsiveness to changes in interest rates. We
also reinforced our position in overnight and short-term repurchase agreements.
Overall, the 7-day net yield of the trust rose from 4.08% 1 at the end of
February to 4.37%1 by August 31, 1999.
1 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the trust's current earnings.
AS WE MOVE TOWARD THE END OF 1999, EXPECTATIONS ARE MIXED FOR FURTHER
TIGHTENINGS, OR INCREASES IN RATES, BY THE FEDERAL RESERVE BOARD. WHAT DO
YOU SEE AHEAD FOR SHORT-TERM RATES?
While the possibility of further increases in the Fed Funds Target Rate by the
end of the year still exists, the potential is certainly less than it was just a
few weeks ago. Continued benign inflation, signs of slowing in growth, and the
uncertainties surrounding year end and the century date change could allow the
Fed to stay on the sidelines for the time being. The Fed has done much to smooth
the way for the banking system and other financial market participants during
this difficult time to insure that sufficient liquidity will be available to
those who need it at the end of the year. The end result, absent a policy move
by the Fed, should be overall lower rates for overnight financing in the days
and weeks leading up to December 31, 1999. It is also possible that public
sentiment or instability in our own equity market could lead to a "flight to
quality" to the U.S. Treasury and agency markets near year end. Finally, the
reluctance of issuers to issue securities in the last few weeks of December and
into early January could drive yields on short-term offerings lower because of
reduced supply.
Shareholder Meeting Results
A Special Meeting of Shareholders of Edward D. Jones & Co. Daily Passport Cash
Trust was held on March 29, 1999. On January 29, 1999, the record date for
shareholders voting at the meeting, there were 7,600,494,604 total outstanding
shares. The following items were considered by shareholders and the results of
their voting were as follows:
AGENDA ITEM 1
Election of Trustees: 1
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
Thomas G. Bigley 3,156,591,584 108,927,638
John T. Conroy, Jr. 3,156,591,584 108,927,638
Nicholas P. Constantakis 3,156,591,584 108,927,638
John F. Cunningham 3,156,591,584 108,927,638
J. Christopher Donahue 3,156,591,584 108,927,638
Peter E. Madden 3,156,591,584 108,927,638
Charles F. Mansfield, Jr. 3,156,591,584 108,927,638
John E. Murray, Jr.,J.D., S.J.D. 3,156,591,584 108,927,638
John S. Walsh 3,156,591,584 108,927,638
</TABLE>
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Lawrence D. Ellis, M.D. and Marjorie P. Smuts.
AGENDA ITEM 2
To ratify the selection of Ernst & Young LLP as the trust's independent
auditors:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
3,086,305,664 39,337,068 139,876,490
</TABLE>
AGENDA ITEM 3
To make changes to the trust's fundamental investment policies:
(a) To amend the trust's fundamental investment policy on diversification of its
investments:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,974,458,060 123,870,084 167,191,078
</TABLE>
(b) To make non-fundamental, and to amend, the trust's fundamental investment
policy regarding the maturity of money market instruments:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,995,452,925 92,563,779 177,502,518
</TABLE>
(c) To make non-fundamental, and to amend, the trust's fundamental investment
policy regarding restricted securities:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,929,000,797 147,827,124 188,691,301
</TABLE>
(d) To make non-fundamental the trust's policy prohibiting investments in
securities to exercise control of an issuer:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,937,236,422 144,057,231 184,225,569
</TABLE>
(e) To make non-fundamental, and to amend, the trust's authority to invest in
the securities of other investment companies:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,937,315,614 157,837,291 170,366,317
</TABLE>
(f) To amend the trust's fundamental investment policy regarding borrowing to
permit the purchase of securities while borrowings are outstanding:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,855,333,288 222,632,369 187,553,565
</TABLE>
AGENDA ITEM 4
To eliminate certain of the trust's fundamental investment policies:
(a) To remove the trust's fundamental investment policy on investing new
issuers:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,920,471,275 158,670,483 186,377,464
</TABLE>
(b) To remove the trust's fundamental investment policy on investing in oil,
gas, and minerals:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,893,529,759 186,991,695 184,997,768
</TABLE>
(c) To remove the trust's fundamental investment policy on investing in issuers
whose securities are owned by Officers and Trustees:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,788,575,907 289,780,696 187,162,619
</TABLE>
(d) To remove the trust's fundamental investment policy on investing in options:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,819,541,227 257,736,514 188,241,481
</TABLE>
(e) To remove the trust's fundamental investment policy regarding the average
maturity of securities in the trust's portfolio:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,968,139,052 113,678,694 183,701,476
</TABLE>
AGENDA ITEM 5
To approve amendments and restatements to the trust's Declaration of Trust:
(a) To permit the trust to add series and classes of shares:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,929,147,880 156,902,524 179,468,818
</TABLE>
(b) To require the approval of a majority of the outstanding voting shares in
the event of the sale or conveyance of the trust to another trust or
corporation:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,951,658,305 140,030,924 173,829,993
</TABLE>
(c) To permit the Board of Trustees to liquidate assets of the trust without
seeking shareholder approval:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
2,797,967,449 280,912,852 186,638,871
</TABLE>
Portfolio of Investments
AUGUST 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
GOVERNMENT AGENCIES-49.9%
$ 50,000,000 Federal Farm Credit
System, 5.400%, 7/3/2000 $ 49,936,804
528,000,000 1 Federal Home Loan Bank
System Floating Rate
Notes, 4.851% - 5.370%,
9/1/1999 - 11/12/1999 527,913,028
68,000,000 2 Federal Home Loan Bank
System Discount Notes,
5.370% - 5.510%,
2/2/2000 - 3/1/2000 66,437,927
405,230,000 Federal Home Loan Bank
System, 4.790% - 5.415%,
1/14/2000 - 6/14/2000 405,065,235
878,713,000 2 Federal Home Loan Mortgage
Corp. Discount Notes,
5.060% - 5.480%,
10/8/1999 - 8/4/2000 862,531,189
428,000,000 1 Federal Home Loan Mortgage
Corp. Floating Rate Notes,
4.825% - 5.265%, 9/17/1999
- 11/17/1999 427,836,382
411,755,000 2 Federal National Mortgage
Association Discount
Notes, 4.610% - 5.450%,
10/5/1999 - 6/22/2000 400,979,340
551,000,000 1 Federal National Mortgage
Association Floating Rate
Notes, 4.974% - 5.160%,
9/1/1999 - 11/10/1999 550,770,172
219,500,000 Federal National Mortgage
Association, 4.780% -
5.180%, 11/30/1999 -
5/5/2000 219,409,452
551,000,000 1 Student Loan Marketing
Association Floating Rate
Notes,
5.667% - 5.767%, 9/8/1999 550,834,196
18,000,000 Student Loan Marketing
Association, 4.930%,
2/8/2000 18,000,000
TOTAL GOVERNMENT AGENCIES 4,079,713,725
REPURCHASE AGREEMENTS-
49.9% 3
455,000,000 ABN AMRO, Inc., 5.480%,
dated 8/31/1999, due
9/1/1999 455,000,000
125,000,000 4 Bank of America, 5.270%,
dated 8/27/1999, due
9/29/1999 125,000,000
475,000,000 Bank of America, 5.520%,
dated 8/31/1999, due
9/1/1999 475,000,000
50,000,000 Barclays Capital, Inc.,
5.450%, dated 8/31/1999,
due 9/1/1999 50,000,000
340,000,000 Bear, Stearns and Co.,
5.500%, dated 8/31/1999,
due 9/1/1999 340,000,000
89,600,000 4 Deutsche Bank Financial,
Inc., 5.270%, dated
8/27/1999, due 9/30/1999 89,600,000
7,200,000 Deutsche Bank Financial,
Inc., 5.450%, dated
8/31/1999, due 9/1/1999 7,200,000
500,000,000 Deutsche Bank Financial,
Inc., 5.490%, dated
8/31/1999, due 9/1/1999 500,000,000
155,000,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.430%, dated 8/31/1999,
due 9/1/1999 155,000,000
190,000,000 Goldman Sachs Group, LP,
5.480%, dated 8/31/1999,
due 9/1/1999 190,000,000
150,000,000 J.P. Morgan & Co., Inc.,
5.480%, dated 8/31/1999,
due 9/1/1999 150,000,000
250,000,000 Lehman Brothers, Inc.,
5.480%, dated 8/31/1999,
due 9/1/1999 250,000,000
215,000,000 Paribas Corp., 5.500%,
dated 8/31/1999, due
9/1/1999 215,000,000
200,000,000 Prudential Securities,
Inc., 5.520%, dated
8/31/1999, due 9/1/1999 200,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
continued 3
$ 368,580,000 Salomon Brothers, Inc.,
5.500%, dated 8/31/1999,
due 9/1/1999 $ 368,580,000
200,000,000 Societe Generale
Securities Corp., 5.450%,
dated 8/31/1999, due
9/1/1999 200,000,000
180,000,000 Warburg Dillon Reed LLC,
5.450%, dated 8/31/1999,
due 9/1/1999 180,000,000
130,000,000 Warburg Dillon Reed LLC,
5.520%, dated 8/31/1999,
due 9/1/1999 130,000,000
TOTAL REPURCHASE
AGREEMENTS 4,080,380,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 8,160,093,725
</TABLE>
1 Floating rate note with current rate and next reset date shown.
2 Discount rate at time of purchase.
3 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.
4 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.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($8,174,993,302) at August 31, 1999.
See Notes which are an integral part of the Financial Statements.
Statement of Assets and Liabilities
AUGUST 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 4,080,380,000
Investments in securities 4,079,713,725
Total investments in
securities, at amortized
cost and value $ 8,160,093,725
Cash 8,819,604
Income receivable 17,264,359
TOTAL ASSETS 8,186,177,688
LIABILITIES:
Payable for shares sold 28,029
Income distribution
payable 8,951,651
Accrued expenses 2,204,706
TOTAL LIABILITIES 11,184,386
Net assets for
8,174,993,302 shares
outstanding $ 8,174,993,302
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$8,174,993,302 /
8,174,993,302 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED AUGUST 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 201,784,847
EXPENSES:
Investment advisory fee $ 16,802,800
Administrative personnel
and services fee 3,022,596
Custodian fees 122,169
Transfer and dividend
disbursing agent fees and
expenses 5,033,072
Directors'/Trustees' fees 22,901
Auditing fees 9,198
Legal fees 13,796
Portfolio accounting fees 278,464
Shareholder services fee 10,108,991
Share registration costs 458,913
Printing and postage 1,070,492
Insurance premiums 9,132
Miscellaneous 13,008
TOTAL EXPENSES 36,965,532
Net investment income $ 164,819,315
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
AUGUST 31, FEBRUARY 28,
1999 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 164,819,315 $ 298,512,837
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (164,819,315) (298,512,837)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 17,359,592,645 27,783,437,416
Net asset value of shares
issued to shareholders in
payment of distributions
declared 158,897,415 293,550,669
Cost of shares redeemed (17,015,246,261) (26,210,672,944)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 503,243,799 1,866,315,141
Change in net assets 503,243,799 1,866,315,141
NET ASSETS:
Beginning of period 7,671,749,503 5,805,434,362
End of period $ 8,174,993,302 $ 7,671,749,503
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
AUGUST 31, YEAR ENDED FEBRUARY 28 OR 29,
1999 1999 1998 1997 1996 1995
<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 0.05 0.05 0.04 0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.04) (0.05) (0.04)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.07% 4.63% 4.84% 4.59% 5.06% 3.78%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.91% 2 0.87% 0.89% 0.89% 0.96% 0.98%
Net investment income 4.06% 2 4.50% 4.72% 4.49% 4.92% 3.74%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $8,174,993 $7,671,750 $5,805,434 $4,760,020 $3,951,155 $2,464,260
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
AUGUST 31, 1999 (UNAUDITED)
ORGANIZATION
Edward D. Jones & Co. Daily Passport Cash Trust (the "Trust") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
diversified, 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 uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Trust to require its 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, 1999, capital paid-in aggregated $8,174,993,302.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
AUGUST 31, FEBRUARY 28,
1999 1999
<S> <C> <C>
Shares sold 17,359,592,645 27,783,437,416
Shares issued to
shareholders in payment of
distributions declared 158,897,415 293,550,669
Shares redeemed (17,015,246,261) (26,210,672,944)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 503,243,799 1,866,315,141
</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: 0.500% on the first $500 million, 0.475% on the
next $500 million, 0.450% on the next $500 million, and 0.425% on the next $500
million and 0.400% 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.
ADVISER'S BACKGROUND
Passport Research, Ltd. is a Pennsylvania limited partnership organized in
1981. Federated Investment Management Company is the general partner of the
Adviser and has a 50.5% interest in the Adviser. Federated Investment
Management Company is owned by Federated Investors, Inc. Edward D. Jones &
Co. L.P. is the limited partner of the Adviser and has a 49.5% interest in
the Adviser.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Trust with certain 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, Inc. 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.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust shares for the period. The fee paid to FSSC is used to
finance certain services for shareholders and to maintain shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
Edward D. Jones & Co., L.P. serves as the transfer and dividend disbursing
agent to the Trust. The fee paid to Edward D. Jones & Co. L.P. 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.
YEAR 2000
Similar to other financial organizations, the Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Trust's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Trust.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
RICHARD B. FISHER
President
WILLIAM D. DAWSON III
Chief Investment Officer
J. CHRISTOPHER DONAHUE
Executive Vice President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
SUSAN R. HILL
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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 investment risk,
including the possible loss of principal.
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.
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Edward Jones
Daily Passport Cash Trust
SEMI-ANNUAL REPORT
AUGUST 31, 1999
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Serving Individual Investors Since 1871
Edward Jones
201 Progress Parkway
Maryland Heights, Missouri 63043
1-800-331-2451
Distributor
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Edward Jones
Cusip 480023100
8092605 (10/99)
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