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
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Pre-Effective Amendment No. ......................
Post-Effective Amendment No. 37 ...................... X
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and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
Amendment No. 30 ......................................... X
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EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(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:
X immediately upon filing pursuant to paragraph (b) on _____________, 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.
Copies to:
Matthew G. Maloney, Esquire
Dickstein, Shapiro, Morin & Oshinsky
2101 L Street, N.W.
Washington, D.C. 20037
PROSPECTUS
Edward D. Jones & Co.
Daily Passport Cash Trust
A money market mutual fund seeking stability of principal and current income
consistent with stability of principal by investing in a portfolio of money
market instruments maturing in 13 months or less.
As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus, and any representation to the contrary is a criminal offense.
JUNE 22, 1999
CONTENTS
Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the
Fund Invests? 4
What are the Specific Risks of Investing in the Fund? 5
What Do Shares Cost? 5
How is the Fund Sold? 6
How to Purchase Shares 6
How to Redeem and Exchange Shares 7
Account and Share Information 9
Who Manages the Fund? 9
Financial Information 10
Report of Ernst & Young LLP, Independent Auditors 20
Risk/Return Summary
WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
The Fund is a money market fund which seeks to maintain a stable net asset value
of $1.00. The Fund's investment objective is stability of principal and current
income consistent with stability of principal. While there is no assurance that
the Fund will achieve its investment objective, it endeavors to do so by
following the strategies and policies described in this prospectus.
WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?
The Fund invests in a portfolio of U.S. Treasury and government agency
securities maturing in 13 months or less. These investments include repurchase
agreements collateralized fully by U.S. Treasury and government agency
securities. The dollar-weighted average maturity of the Fund's portfolio will be
90 days or less.
WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?
Although the Fund seeks to maintain a stable net asset value, it is possible to
lose money by investing in the Fund. 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 or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency.
RISK/RETURN BAR CHART AND TABLE
[The graphic presentation displayed here consists of a bar chart representing
the annual total returns of Edward D. Jones & Co. Daily Passport Cash Trust as
of the calendar year-end for each of ten years. The `y' axis reflects the "%
Total Return" beginning with "0.00%" and increasing in increments of 2.00% up to
10.00%. The `x' axis represents calculation periods for the last ten calendar
years of the Fund, beginning with the earliest year. The light gray shaded chart
features ten distinct vertical bars, each shaded in charcoal, and each visually
representing by height the total return percentages for the calendar year stated
directly at its base. The calculated total return percentage for the Fund for
each calendar year is stated directly at the top of each respective bar, for the
calendar years 1989 through 1998.
The percentages noted are: 8.75%, 7.60%, 5.42%, 3.04%, 2.32%, 3.37%, 5.11%,
4.60%, 4.80%, and 4.74%.]
Historically, the Fund has maintained a constant $1.00 net asset value per
share. The bar chart shows the variability of the Fund's total returns on a
calendar year-end basis.
The Fund's Shares are not sold subject to a sales charge (load). The total
returns displayed above are based upon net asset value.
The Fund's total return from January 1, 1999 to March 31, 1999, was 1.02%.
Within the period shown in the Chart, the Fund's highest quarterly return was
2.27% (quarter ended June 30, 1989). Its lowest quarterly return was 0.56%
(quarter ended June 30, 1993).
AVERAGE ANNUAL TOTAL RETURN TABLE
The following table represents the Fund's Average Annual Total Return for the
calendar periods ending December 31, 1998.
<TABLE>
<CAPTION>
CALENDAR PERIOD FUND
<S> <C>
1 Year 4.74%
5 Years 4.52%
10 Years 4.96%
</TABLE>
The Fund's Seven-Day Net Yield as of December 31, 1998, was 4.25%.
Investors may call the Fund at 1-800-341-7400 to acquire the current Seven- Day
Net Yield .
Past performance does not necessarily predict future performance. This
information provides you with historical performance information so that you can
analyze whether the Fund's investment risks are balanced by its potential
rewards.
What are the Fund's Fees and Expenses?
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
Shares of the Fund.
<TABLE>
<CAPTION>
SHAREHOLDER FEES
<S> <C>
Fees Paid Directly From Your Investment Maximum Sales Charge
(Load) Imposed on Purchases (as a percentage of offering
price) None Maximum Deferred Sales Charge (Load) (as a percentage of original
purchase price or redemption proceeds, as applicable) None Maximum Sales Charge
(Load) Imposed on
Reinvested Dividends (and other Distributions)
(as a percentage of offering price) None
Redemption Fee (as a percentage of amount
redeemed, if applicable) None
Exchange Fee None
ANNUAL FUND OPERATING EXPENSES 1 Expenses That are Deducted From Fund Assets (as
a percentage of average net assets)
Management Fee 2 0.42%
Distribution (12b-1) Fee None
Shareholder Services Fee 0.25%
Other Expenses 0.27%
Total Annual Fund
Operating Expenses 1 0.94%
1 The Total Annual Fund Operating Expenses represent the expenses the Fund
expects to actually pay for the fiscal year ending February 29, 2000. For
the fiscal year ended February 28, 1999, the Total Annual Fund Operating
Expenses were 0.87%.
2 The maximum management services fee is 0.500% of the first $500 million in
average daily net assets, 0.475% of the second $500 million in average
daily net assets, 0.450% of the third $500 million in average daily net
assets, 0.425% of the fourth $500 million in average daily net assets, and
0.400% of average daily net assets in excess of $2 billion.
</TABLE>
EXAMPLE
The following Example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Funds for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses as shown in the Table above and remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
<S> <C>
1 Year $ 96
3 Years $ 300
5 Years $ 520
10 Years $ 1,155
</TABLE>
What are the Fund's Investment Strategies?
The Fund invests primarily in a portfolio of U.S. Treasury and government agency
securities, including repurchase agreements collateralized fully by U.S.
Treasury and government agency securities. Portfolio securities and repurchase
agreements will have a maturity of 397 days or less. The dollar-weighted average
maturity of the Fund's portfolio is 90 days or less.
The adviser targets a dollar-weighted average portfolio maturity range for the
Fund based upon its interest rate outlook. The adviser formulates its interest
rate outlook by analyzing a variety of factors, such as:
* current U.S. economic activity and the economic outlook,
* current short-term interest rates,
* the Federal Reserve Board's policies regarding short-term interest
rates, and
* the potential effects of foreign economic activity on U.S. short term
interest rates.
The adviser generally shortens the portfolio's dollar-weighted average maturity
when it expects interest rates to rise and extends the maturity when it expects
interest rates to fall. The adviser selects securities used to lengthen or
shorten the portfolio's dollar-weighted average maturity by comparing the
returns currently offered by different investments to their historical and
expected returns.
What are the Principal Securities in Which the Fund Invests?
U.S. Treasury and government agency securities pay interest, dividends or
distributions at a specified rate. The rate may be fixed or adjusted
periodically. The issuer must also repay the principal amount of the
security, normally within a specified time. The Fund invests primarily in
the following types of U.S. government securities.
U.S. TREASURY SECURITIES
Treasury securities are direct obligations of the federal government of the
United States.
U.S. GOVERNMENT AGENCY SECURITIES
Agency securities are issued or guaranteed by a federal agency or other
government sponsored entity acting under federal authority (GSE). The full faith
and credit of the United States support some GSEs. Other GSEs receive support
through federal subsidies, loans or other benefits. A few GSEs have no explicit
financial support, but are regarded as having implied support because the
federal government sponsors their activities.
REPURCHASE AGREEMENTS
Repurchase agreements are transactions in which a Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return for the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the adviser.
Repurchase agreements are subject to credit risks.
What are the Specific Risks of Investing in the Fund?
Although there are many factors which may affect an investment in the Fund, the
principal risks of investing in a money market fund are described below.
MARKET RISK
Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.
Interest rate changes have a greater effect on the prices of fixed income
securities with longer maturities. Money market funds try to minimize this risk
by purchasing short-term securities.
CREDIT RISK
Credit risk includes the possibility that a party to a repurchase agreement
transaction involving the Fund will fail to meet its obligations. This could
cause the Fund to lose the benefit of the transaction or prevent the Fund from
selling or buying other securities to implement its investment strategy.
What Do Shares Cost?
You can purchase, redeem, or exchange Shares any day the New York Stock Exchange
(NYSE) is open. The Fund attempts to stabilize the net asset value (NAV) of its
Shares at $1.00 by valuing the portfolio securities using the amortized cost
method. The Fund cannot guarantee that its NAV will always remain at $1.00 per
Share. The Fund does not charge a front-end sales charge. NAV is determined at
12:00 noon (Eastern time) and as of the end of regular trading (normally 4:00
p.m. Eastern time) each day the NYSE is open.
The required minimum initial investment for Fund Shares is $1,000. Subsequent
investments must be in amounts of at least $1,000 except for those shareholders
in the Edward D. Jones & Co. Full Service Account (FSA) or who have signed an
Automatic Collection and Reinvestment Service Agreement in which there are no
minimum requirements.
FULL SERVICE ACCOUNT
As a shareholder, you may subscribe to the FSA. This program provides a
convenient method for investment by linking your Fund account and the Edward D.
Jones & Co. Brokerage Account. As an FSA subscriber, you will have a free credit
balance in the Brokerage Account and will automatically have this sum invested
in your Fund account on a daily basis. FSA also permits daily, automatic
redemption of Fund Shares to satisfy debit balances in the your 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.
How is the Fund Sold?
The Fund's Principal Distributor, Edward D. Jones & Co., L.P., and its
Distributor, Federated Securities Corp., market the Shares described in this
prospectus to individual, joint, custodial, trust, fiduciary, corporate,
partnership, association, or proprietorship accounts.
The Principal Distributor, the Distributor and their affiliates may pay out of
their assets other amounts (including items of material value) to investment
professionals for marketing and servicing Shares. The Distributor acts as the
Fund's distributor in those states in which the Principal Distributor is not
registered.
How to Purchase Shares
You may purchase Shares by check or wire. Fund Shares purchased before 3:00
p.m. (Eastern time) earn dividends that day. Payment should be made in
U.S. dollars and drawn on a U.S. bank.
When payment is made by check, the order is considered received after the check
is converted into federal funds by Edward D. Jones & Co. This is normally within
two business days of receiving the check. If your check does not clear, your
purchase will be canceled and you could be liable for any losses or fees the
Fund incurs. Checks originally payable to someone other than you or Edward D.
Jones & Co. (third-party checks) are not accepted.
When payment is made by wire with federal funds, the order is considered
received immediately. The Fund reserves the right to reject any request to
purchase Shares.
BY CHECK
To purchase Shares by check:
* sign the Automatic Collection and Reinvestment Service Agreement; 1
* complete and sign a checkwriting application; 1
* enclose a check for $1,000 or more made payable to Edward D. Jones & Co.;
and
* send the check and any completed forms to your local Edward D. Jones &
Co. office with instructions that it be invested in the Fund.
BY WIRE
Shares may be purchased with federal funds sent by Federal Reserve or bank wire.
This method results in a more rapid investment in Fund Shares. Contact your
Edward D. Jones & Co. investment professional before wiring any funds. You
cannot purchase Shares by wire on holidays when wire transfers are restricted.
THROUGH AN EXCHANGE
You may purchase Shares through an exchange of shares you own in certain
funds advised and distributed by affiliates of Federated Investors, Inc.
(Federated Funds). Or, you may purchase shares of certain Federated Funds
by exchanging your Fund Shares. Sales charges may apply in purchasing some
Federated Funds. You must meet the minimum initial investment requirement
for purchasing Shares and both accounts must have identical registrations.
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.
1 These forms are available from your Edward D. Jones & Co. investment
professional. They are optional but recommended.
RETIREMENT INVESTMENTS
You may purchase Shares as retirement investments (such as qualified plans and
IRAs or transfer or rollover of assets). Call your investment professional or
the Fund for information on retirement investments. We suggest that you discuss
retirement investments with your tax adviser. You may be subject to an annual
IRA account fee.
How to Redeem and Exchange Shares
You may redeem or exchange Shares by submitting a request by telephone or
by mail to your Edward D. Jones & Co. investment professional.
BY TELEPHONE
You may redeem or exchange Shares by calling your Edward D. Jones & Co.
investment professional.
If you call before 3:00 p.m. (Eastern time) your redemption will be mailed to
you the same day. You will not receive that day's dividend.
If you call after 3:00 p.m. (Eastern time) you will receive that day's dividend
and your redemption will be mailed to you the following business day.
BY MAIL
You may redeem or exchange Shares by mailing a written request to Edward D.
Jones & Co. Call your Edward D. Jones & Co. investment professional for
specific instructions before redeeming by letter.
Your redemption request will be processed on the day the Fund receives your
written request in proper form. Dividends are paid up to and including the day
that a redemption request is processed.
All written requests must include:
* Fund Name, account number and account registration;
* amount to be redeemed or exchanged;
* signatures of all shareholders exactly as registered; and
* IF EXCHANGING, the Fund Name and Share Class, account number and account
registration into which you are exchanging.
PAYMENT METHODS FOR REDEMPTIONS
Your redemption proceeds will be mailed by check to your address of record. The
following payment options are available. These payment options require a
signature guarantee if they were not established when the account was opened:
* an electronic transfer to your account at a financial institution that is
an ACH member; or
* wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.
REDEMPTION IN KIND
Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.
LIMITATIONS ON REDEMPTION PROCEEDS
Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:
* to allow your purchase to clear;
* during periods of market volatility; or
* when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.
You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.
REDEMPTIONS FROM RETIREMENT ACCOUNTS
In the absence of your specific instructions, 10% of the value of your
redemption from a retirement account in the Fund may be withheld for taxes. This
withholding only applies to certain types of retirement accounts.
EXCHANGE PRIVILEGES
You may exchange Shares of the Fund into Shares of certain Federated Funds. To
do this, you must:
* ensure that the account registrations are identical;
* meet any minimum initial investment requirements; and
* receive a prospectus for the fund into which you wish to exchange.
An exchange is treated as a redemption and a subsequent purchase, and is a
taxable transaction.
The Fund may modify or terminate the exchange privilege at any time. The Fund's
management or investment adviser may determine from the amount, frequency and
pattern of exchanges that a shareholder is engaged in excessive trading that is
detrimental to the Fund and other shareholders. If this occurs, the Fund may
terminate the availability of exchanges to that shareholder and may bar that
shareholder from purchasing other Federated Funds.
CHECKWRITING
You may request checks to redeem your Fund Shares in amounts of $500 or more.
Your account will continue to receive the daily dividend declared on the Shares
being redeemed until the check is presented for payment. You may not write
checks to redeem Shares directly from Federated Shareholder Services Company or
to close an account. The checkwriting privilege may be discontinued at any time.
For further information, contact your Edward D.
Jones & Co. investment professional.
VISA ACCOUNT
You may establish a VISA account that allows you to redeem Shares with a VISA
card or VISA checks. A shareholder with a VISA account may not use the Fund
checking account privileges (only one checkwriting option may be chosen). The
VISA privilege may be discontinued at any time. For further information, contact
your Edward D. Jones & Co. investment professional.
ADDITIONAL CONDITIONS
SHARE CERTIFICATES
The Fund does not issue share certificates.
Account and Share Information
ACCOUNT ACTIVITY
You will receive monthly statements reporting all account activity, including
dividends and capital gains paid.
DIVIDENDS AND CAPITAL GAINS
The Fund declares any dividends daily and pays them monthly to shareholders. If
you purchase Shares by wire, you begin earning dividends on the day your wire is
received. If you purchase Shares by check, you begin earning dividends on the
business day after your check is received. In either case, you begin earning
dividends on the third business day after the Fund receives your check.
The Fund does not expect to realize any capital gains or losses. If capital
gains or losses were to occur, they could result in an increase or decrease in
dividends. The Fund pays any capital gains at least annually. Your dividends and
capital gains distributions will be automatically reinvested in additional
Shares without a sales charge.
ACCOUNTS WITH LOW BALANCES
Due to the high cost of maintaining accounts with low balances, you must
maintain a $2,500 average monthly account balance in any month. Otherwise, you
will be charged a $3.00 fee for that month. Checkwriting, VISA and FSA
privileges will be deleted from accounts with a zero balance after 90 days. 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.
TAX INFORMATION
Edward D. Jones & Co. sends an annual statement of your account activity to
assist you in completing your federal, state and local tax returns. Fund
distributions of dividends and capital gains are taxable to you whether paid in
cash or reinvested in the Fund. Dividends are taxable as ordinary income;
capital gains are taxable at different rates depending upon the length of time
the Fund holds its assets.
Fund distributions are expected to be primarily dividends. Redemptions and
exchanges are taxable sales. Please consult your tax adviser regarding your
federal, state and local tax liability.
Who Manages the Fund?
The Board of Trustees governs the Fund. The Board selects and oversees the
Adviser, Passport Research Ltd. The Adviser manages the Fund's assets,
including buying and selling portfolio securities. The Adviser's address
is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222-
3779.
The Adviser and other subsidiaries of Federated advise approximately 175 mutual
funds and separate accounts, which total approximately $111 billion in assets as
of December 31, 1998. Federated was established in 1955 and is one of the
largest mutual fund investment managers in the United States with approximately
1,900 employees. More than 4,000 investment professionals make Federated Funds
available to their customers.
ADVISORY FEES
The Adviser receives an annual investment advisory fee based on the Fund's
average daily net assets as shown in the chart below.
<TABLE>
<CAPTION>
ADVISORY FEE AS
PERCENTAGE OF AVERAGE
AVERAGE DAILY NET ASSETS DAILY NET ASSETS
<S> <C>
First $500 million 0.500%
Second $500 million 0.475%
Third $500 million 0.450%
Fourth $500 million 0.425%
Over $2 billion 0.400%
</TABLE>
YEAR 2000 READINESS
The "Year 2000" problem is the potential for computer errors or failures because
certain computer systems may be unable to interpret dates after December 31,
1999 or experience other date-related problems. The Year 2000 problem may cause
systems to process information incorrectly and could disrupt businesses, such as
the Fund, that rely on computers.
The Fund's service providers are making changes to their computer systems to fix
any Year 2000 problems. In addition, they are working to gather information from
third-party providers to determine their Year 2000 readiness.
While it is impossible to determine in advance all of the risks to the Fund, the
Fund could experience interruptions in basic financial and operational
functions. Fund shareholders could experience errors or disruptions in Fund
share transactions or Fund communications.
Year 2000 problems would also increase the risks of the Fund's investments. To
assess the potential effect of the Year 2000 problem, the Adviser is reviewing
information regarding the Year 2000 readiness of issuers of securities the Fund
may purchase.
The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.
Financial Information
FINANCIAL HIGHLIGHTS
The following Financial Highlights will help you understand the Fund's financial
performance for its past five fiscal years, or since inception, if the life of
the Fund is shorter. Some of the information is presented on a per share basis.
Total returns represent the rate an investor would have earned (or lost) on an
investment in the Fund, assuming reinvestment of any dividends and capital
gains.
This information has been audited by Ernst & Young LLP, whose report, along with
the Fund's audited financial statements, is included in this prospectus.
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
Reference is made to the Report of Ernst & Young LLP, Independent Auditors on
page 20.
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28 OR 29 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.04 0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (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
TOTAL RETURN 1 4.63% 4.84% 4.59% 5.06% 3.78%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.87% 0.89% 0.89% 0.96% 0.98%
Net investment income 4.50% 4.72% 4.49% 4.92% 3.74%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $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.
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
FEBRUARY 28, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
GOVERNMENT AGENCIES-
57.6%
$ 31,000,000 1 Federal Farm Credit
System Floating Rate
Notes, 4.738%, 3/1/1999 $ 30,996,328
36,000,000 Federal Farm Credit
System, 5.500%, 4/1/1999 35,995,808
590,000,000 1 Federal Home Loan Bank
System Floating Rate
Notes, 4.890% - 5.050%,
3/1/1999 - 3/3/1999 589,871,552
363,500,000 Federal Home Loan Bank
System, 4.790% - 5.705%,
3/26/1999 - 3/8/2000 363,362,624
669,200,000 2 Federal Home Loan
Mortgage Corp. Discount
Notes, 4.700% - 5.890%,
3/8/1999 - 8/10/1999 665,374,053
381,000,000 1 Federal Home Loan
Mortgage Corp. Floating
Rate Notes, 4.728% -
5.202%, 3/18/1999 -
5/17/1999 380,889,283
94,500,000 Federal Home Loan Mortgage Corp., 5.544% - 5.605%, 3/12/1999
-
8/13/1999 94,482,875
1,555,885,000 2 Federal National
Mortgage Association
Discount Notes, 4.400% -
5.770%, 3/15/1999 -
1/24/2000 1,536,309,891
218,000,000 1 Federal National
Mortgage Association
Floating Rate Notes,
5.021% - 5.146%,
3/1/1999 - 3/17/1999 217,971,640
199,500,000 Federal National
Mortgage Association,
4.780% - 5.650%,
3/5/1999 - 2/10/2000 199,416,375
260,000,000 1 Student Loan Marketing
Association Floating
Rate Notes, 5.160% -
5.301%, 3/2/1999 -
3/3/1999 259,895,857
46,000,000 Student Loan Marketing Association, 4.930% - 5.580%,
3/11/1999 -
2/8/2000 45,999,836
TOTAL GOVERNMENT
AGENCIES 4,420,566,122
REPURCHASE AGREEMENTS-
41.8% 3
294,180,000 ABN AMRO Chicago Corp.,
Inc., 4.860%, dated
2/26/1999, due 3/1/1999 294,180,000
435,000,000 BT Securities Corp.,
4.860%, dated 2/26/1999,
due 3/1/1999 435,000,000
290,000,000 Bear, Stearns and Co.,
4.860%, dated 2/26/1999,
due 3/1/1999 290,000,000
90,000,000 Credit Suisse First
Boston, Inc., 4.770%,
dated 2/26/1999, due
3/1/1999 90,000,000
181,000,000 4 Credit Suisse First
Boston, Inc., 4.785%,
dated 2/4/1999, due
3/1/1999 181,000,000
12,700,000 Deutsche Bank Government
Securities, 4.760%,
dated 2/26/1999, due
3/1/1999 12,700,000
140,000,000 Donaldson, Lufkin and
Jenrette Securities
Corp., 4.750%, dated
2/26/1999, due 3/1/1999 140,000,000
142,000,000 4 Greenwich Capital
Markets, Inc., 4.830%,
dated 2/23/1999, due
3/15/1999 142,000,000
240,000,000 Morgan Stanley Group,
Inc., 4.860%, dated
2/26/1999, due 3/1/1999 240,000,000
355,000,000 Nationsbanc Montgomery
Securities, Inc.,
4.860%, dated 2/26/1999,
due 3/1/1999 355,000,000
315,000,000 Paribas Corp., 4.860%,
dated 2/26/1999, due
3/1/1999 315,000,000
250,000,000 Prudential Securities,
Inc., 4.850%, dated
2/26/1999, due 3/1/1999 250,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
continued 3
$ 90,000,000 Salomon Smith Barney,
4.760%, dated 2/26/1999,
due 3/1/1999 $ 90,000,000
240,000,000 Salomon Smith Barney,
4.860%, dated 2/26/1999,
due 3/1/1999 240,000,000
130,000,000 Toronto Dominion
Securities (USA), Inc.,
4.750%, dated 2/26/1999,
due 3/1/1999 130,000,000
TOTAL REPURCHASE
AGREEMENTS 3,204,880,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 7,625,446,122
</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
($7,671,749,503) at February 28, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
FEBRUARY 28, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in
repurchase agreements $ 3,204,880,000
Investments in
securities 4,420,566,122
Total investments in
securities, at amortized
cost and value $ 7,625,446,122
Cash 7,427,521
Income receivable 17,126,999
Receivable for shares
sold 92,813,585
TOTAL ASSETS 7,742,814,227
LIABILITIES:
Payable for investments
purchased 33,984,224
Payable for shares
redeemed 26,497,776
Income distribution
payable 5,205,285
Accrued expenses 5,377,439
TOTAL LIABILITIES 71,064,724
Net Assets for
7,671,749,503 shares
outstanding $ 7,671,749,503
NET ASSET VALUE,
OFFERING PRICE, AND
REDEMPTION PROCEEDS PER
SHARE:
$7,671,749,503 /
7,671,749,503 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
YEAR ENDED FEBRUARY 28, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 356,397,143
EXPENSES:
Investment advisory fee $ 27,782,250
Administrative personnel
and services fee 5,001,329
Custodian fees 193,965
Transfer and dividend
disbursing agent fees
and expenses 6,398,072
Directors'/Trustees'
fees 50,848
Auditing fees 18,192
Legal fees 27,331
Portfolio accounting
fees 465,735
Shareholder services fee 16,582,656
Share registration costs 915,573
Printing and postage 382,952
Insurance premiums 32,056
Miscellaneous 33,347
TOTAL EXPENSES 57,884,306
Net investment income $ 298,512,837
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28 1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS:
Net investment income $ 298,512,837 $ 243,084,072
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (298,512,837) (243,084,072)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 27,783,437,416 20,818,466,418
Net asset value of shares
issued to shareholders
in payment
of distributions declare
d 293,550,669 239,671,111
Cost of shares redeemed (26,210,672,944) (20,012,723,131)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 1,866,315,141 1,045,414,398
Change in net assets 1,866,315,141 1,045,414,398
NET ASSETS:
Beginning of period 5,805,434,362 4,760,019,964
End of period $ 7,671,749,503 $ 5,805,434,362
</TABLE>
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
FEBRUARY 28, 1999
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 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
February 28, 1999, capital paid-in aggregated $7,671,749,503.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28 1999 1998
<S> <C> <C>
Shares sold 27,783,437,416 20,818,466,418
Shares issued to
shareholders in payment
of distributions
declared 293,550,669 239,671,111
Shares redeemed (26,210,672,944) (20,012,723,131)
NET CHANGE RESULTING
FROM SHARE TRANSACTIONS 1,866,315,141 1,045,414,398
</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, and 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.
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, Inc. Edward D. Jones & Co. 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
FServ, through its subsidiary, FSSC, served as transfer agent to the Trust
from March 1, 1998 to November 29, 1998. Effective November 30, 1998,
Edward D. Jones & Co., L.P. began performing transfer agent services for
the Trust. The fee paid to both FSSC and 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 (UNAUDITED)
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.
SUBSEQUENT EVENT
The general partner of the Adviser, formerly known as Federated Advisers,
changed its name to Federated Investment Management Company effective March 31,
1999.
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, 1999, 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 five 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 audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1999, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received. 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, 1999, 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
five years in the period then ended, in conformity with generally accepted
accounting principles.
[Graphic]
Ernst & Young LLP
Boston, Massachusetts
April 19, 1999
Edward D. Jones & Co. Daily Passport Cash Trust
PROSPECTUS
JUNE 22, 1999
A Passport to Cash Management
A Statement of Additional Information (SAI) dated June 30, 1999, is incorporated
by reference into this prospectus. Additional information about the Fund's
investments is contained in the Fund's Semi-Annual Report to shareholders as it
becomes available. To obtain the SAI, Semi-Annual Report and other information
without charge, and make inquiries, call your investment professional or the
Fund at 1-800-341-7400.
You can obtain information about the Fund (including the SAI) by visiting or
writing the Public Reference Room of the Securities and Exchange Commission in
Washington, DC 20549-6009 or from the Commission's Internet site at
http://www.sec.gov. You can call 1-800-SEC-0330 for information on the Public
Reference Room's operations and copying charges.
[Graphic]
Edward Jones
201 Progress Parkway
Maryland Heights, Missouri 63043
1-800-331-2451
Distributor
Edward Jones
Investment Company Act File No. 811-2993
Cusip 480023100
8032801A (6/99)
[Graphic]
STATEMENT OF ADDITIONAL INFORMATION
Edward D. Jones & Co. Daily Passport Cash Trust
This Statement of Additional Information (SAI) is not a prospectus. Read
this SAI in conjunction with the prospectus for Edward D. Jones & Co. Daily
Passport Cash Trust (Fund), dated June 22, 1999. Obtain the prospectus
without charge by calling 1-800-341-7400.
JUNE 22, 1999
[Graphic]
Federated
World-Class Investment Manager
Edward D. Jones & Co. Daily Passport Cash Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
8032801B (6/99)
[Graphic]
CONTENTS
How is the Fund Organized? 1
Securities in Which the Fund Invests 1
How is the Fund Sold? 4
Redemption in Kind 4
Massachusetts Partnership Law 5
Account and Share Information 5
Tax Information 5
Who Manages and Provides Services to the Fund? 6
How Does the Fund Measure Performance? 9
Who is Federated Investors, Inc.? 10
Addresses 12
How is the Fund Organized?
The Fund is a diversified open-end, management investment company that was
established under the laws of the Commonwealth of Massachusetts on January 9,
1980. The Fund's investment adviser is Passport Research, Ltd.
(Adviser).
Securities in Which the Fund Invests
In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective.
The Fund is permitted to invest in any high quality money market instrument. As
a matter of investment policy, however, the Fund presently limits its
investments to the U.S. government securities described in the prospectus and
repurchase agreements. The purpose of this policy is to minimize any credit risk
associated with the Fund's investments. This policy may be changed at the
discretion of the Board of Trustees (Board).
SECURITIES DESCRIPTIONS AND TECHNIQUES
FIXED INCOME SECURITIES
Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be a fixed percentage of the principal or adjusted
periodically. In addition, the issuer of a fixed income security must repay the
principal amount of the security, normally within a specified time. Fixed income
securities provide more regular income than equity securities. However, the
returns on fixed income securities are limited and normally do not increase with
the issuer's earnings. This limits the potential appreciation of fixed income
securities as compared to equity securities.
A security's yield measures the annual income earned on a security as a
percentage of its price. A security's yield will increase or decrease depending
upon whether it costs less (a discount) or more (a premium) than the principal
amount. If the issuer may redeem the security before its scheduled maturity, the
price and yield on a discount or premium security may change based upon the
probability of an early redemption. Securities with higher risks generally have
higher yields.
The following describes the types of fixed income securities in which the Fund
invests.
CORPORATE DEBT SECURITIES
Corporate debt securities are fixed income securities issued by businesses.
Notes, bonds, debentures and commercial paper are the most prevalent types of
corporate debt securities. The Fund may also purchase interests in bank loans to
companies. The credit risks of corporate debt securities vary widely among
issuers.
COMMERCIAL PAPER
Commercial paper is an issuer's obligation with a maturity of less than nine
months. Companies typically issue commercial paper to pay for current
expenditures. Most issuers constantly reissue their commercial paper and use the
proceeds (or bank loans) to repay maturing paper. If the issuer cannot continue
to obtain liquidity in this fashion, its commercial paper may default. The short
maturity of commercial paper reduces both the market and credit risks as
compared to other debt securities of the same issuer.
DEMAND INSTRUMENTS
Demand instruments are corporate debt securities that the issuer must repay upon
demand. Other demand instruments require a third party, such as a dealer or
bank, to repurchase the security for its face value upon demand. The Fund treats
demand instruments as short-term securities, even though their stated maturity
may extend beyond one year.
BANK INSTRUMENTS
Bank instruments are unsecured interest bearing deposits with banks. Bank
instruments include bank accounts, time deposits, certificates of deposit
and banker's acceptances. Yankee instruments are denominated in
U.S. dollars and issued by U.S. branches of foreign banks. Eurodollar
instruments are denominated in U.S. dollars and issued by non-
U.S. branches of U.S. or foreign banks.
ASSET BACKED SECURITIES
Asset backed securities are payable from pools of obligations other than
mortgages. Most asset backed securities involve consumer or commercial debts
with maturities of less than ten years. However, almost any type of fixed income
assets (including other fixed income securities) may be used to create an asset
backed security. Asset backed securities may take the form of commercial paper,
notes, or pass through certificates.
CREDIT ENHANCEMENT
Credit enhancement consists of an arrangement in which a company agrees to pay
amounts due on a fixed income security if the issuer defaults. In some cases the
company providing credit enhancement makes all payments directly to the security
holders and receives reimbursement from the issuer. Normally, the credit
enhancer has greater financial resources and liquidity than the issuer. For this
reason, the Adviser usually evaluates the credit risk of a fixed income security
based solely upon its credit enhancement.
Common types of credit enhancement include guarantees, letters of credit, bond
insurance and surety bonds. Credit enhancement also includes arrangements where
securities or other liquid assets secure payment of a fixed income security. If
a default occurs, these assets may be sold and the proceeds paid to security's
holders. Either form of credit enhancement reduces credit risks by providing
another source of payment for a fixed income security.
SPECIAL TRANSACTIONS
REPURCHASE AGREEMENTS
Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return on the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.
The Fund's custodian or subcustodian will take possession of the securities
subject to repurchase agreements. The Adviser or subcustodian will monitor the
value of the underlying security each day to ensure that the value of the
security always equals or exceeds the repurchase price.
Repurchase agreements are subject to credit risks.
DELAYED DELIVERY TRANSACTIONS
Delayed delivery transactions, including when issued transactions, are
arrangements in which the Fund buys securities for a set price, with payment and
delivery of the securities scheduled for a future time. During the period
between purchase and settlement, no payment is made by the Fund to the issuer
and no interest accrues to the Fund. The Fund records the transaction when it
agrees to buy the securities and reflects their value in determining the price
of its shares. Settlement dates may be a month or more after entering into these
transactions so that the market values of the securities bought may vary from
the purchase prices. Therefore, delayed delivery transactions create interest
rate risks for the Fund. Delayed delivery transactions also involve credit risks
in the event of a counterparty default.
ASSET COVERAGE
In order to secure its obligations in connection with derivatives contracts or
special transactions, the Fund will either own the underlying assets, enter into
an offsetting transaction or set aside readily marketable securities with a
value that equals or exceeds the Fund's obligations. Unless the Fund has other
readily marketable assets to set aside, it cannot trade assets used to secure
such obligations without entering into an offsetting derivative contract or
terminating a special transaction. This may cause the Fund to miss favorable
trading opportunities or to realize losses on derivative contracts or special
transactions.
INVESTMENT 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 SP-1+, SP-1, or SP-2 by Standard & Poor's Ratings
Group ("S&P"), MIG-1 or MIG-2 by Moody's Investors Service, Inc. ("Moody's"), or
F-1+, F-1, or F-2 by Fitch IBCA, Inc. ("Fitch") are all considered rated in the
highest short-term rating category. The Fund 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."
INVESTMENT RISKS
There are many factors which may affect an investment in the Fund. The Fund's
principal risks are described in its prospectus. Additional risk factors are
outlined below.
CREDIT RISKS
Credit risk is the possibility that an issuer will default on a security by
failing to pay interest or principal when due. If an issuer defaults, the Fund
will lose money.
Many fixed income securities receive credit ratings from services such as
Standard & Poor's and Moody's Investor Services, Inc. These services assign
ratings to securities by assessing the likelihood of issuer default. Lower
credit ratings correspond to higher credit risk. If a security has not received
a rating, the Fund must rely entirely upon the Adviser's credit assessment.
INTEREST RATE RISKS
Prices of fixed income securities rise and fall in response to changes in the
interest rate paid by similar securities. Generally, when interest rates rise,
prices of fixed income securities fall. However, market factors, such as the
demand for particular fixed income securities, may cause the price of certain
fixed income securities to fall while the prices of other securities rise or
remain unchanged.
Interest rate changes have a greater effect on the price of fixed income
securities with longer durations. Duration measures the price sensitivity of a
fixed income security to changes in interest rates.
FUNDAMENTAL INVESTMENT POLICIES
Money market instruments include, but are not limited to, U.S. Treasury Bills,
all other marketable obligations issued or guaranteed by the U.S. Government,
its agencies or instrumentalities ("U.S. Government obligations"), instruments
of banks and savings and loans which are members of the Federal Deposit
Insurance Corporation (FDIC) or Federal Savings and Loan Insurance Corporation
(FSLIC) (such as certificates of deposit, demand and time deposits, savings
shares and bankers' acceptances; these instruments are not necessarily
guaranteed by the FDIC or FSLIC), repurchase agreements (an instrument where the
seller agrees to repurchase the instrument at the time of sale at a mutually
agreed upon time and price), and prime commercial paper including variable
amount demand master notes.
The Fund will not invest in instruments issued by banks or savings and loans
unless: (a) at the time of investment they have capital, surplus and undivided
profits in excess of $100,000,000 (as of the date of their most recently
published financial statements); or (b) the principal amount of the instrument
is insured in full by the FDIC or FSLIC. To the extent the Fund purchases
Eurodollar certificates of deposit issued by foreign branches of domestic U.S.
banks, consideration will be given to their domestic marketability, the lower
reserve requirements normally mandated for overseas banking operations and the
possible impact of interruptions in the flow of international currency
transactions.
Commercial paper investments will be limited to commercial paper rated A-1 or
A-2 by Standard and Poor's, Prime 1 or Prime 2 by Moody's Investors Services,
Inc. or F-1 or F-2 by Fitch/IBCA, Inc. In the case where commercial paper has
received different ratings from different services, such commercial paper is an
acceptable investment so long as at least one rating was a high quality rating
and provided the Board or its designee determines that such investment presents
minimal credit risks.
The Fund may purchase money market instruments, including bank instruments and
commercial paper, which are not rated but are determined by the Board or its
designee to be of comparable quality to the other bank or corporate obligations
in which the Fund may invest.
The Fund may also purchase U.S. Government obligations on a when-issued or
delayed delivery basis. Although the money market instruments purchased by the
Fund represent unconditional promises to repay the entire investment proceeds at
maturity, this in itself does not suggest that the shares of the Fund are
themselves guaranteed. The investment policies outlined above permit investment
in a wide variety of money market instruments and it is anticipated that
investment emphasis will shift within available categories of instruments
depending on the current condition of the money market.
INVESTMENT LIMITATIONS
SELLING SHORT AND BUYING ON MARGIN
The Fund 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 Fund 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 Fund 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 Fund 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 Fund
will liquidate any such borrowings as soon as possible. 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 Fund
will restrict the purchase of portfolio instruments to money market instruments
maturing on or before the expiration date of the reverse repurchase agreements.
INVESTING IN COMMODITIES OR REAL ESTATE
The Fund will not invest in commodities, commodity contracts, or real estate,
except that it may purchase money market instruments issued by companies that
invest in or sponsor such interests.
PLEDGING ASSETS
The Fund 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.
UNDERWRITING
The Fund 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 Fund 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.
DIVERSIFICATION OF INVESTMENTS
With respect to securities comprising 75% of the value of its total assets, the
Fund will not purchase securities of any one issuer (other than cash, cash
items, securities issued or guaranteed by the government of the United States or
its agencies or instrumentalities and repurchase agreements collateralized by
such U.S. government securities, and securities of other investment companies)
if as a result more than 5% of the value of its total assets would be invested
in the securities of that issuer, or it would own more than 10% of the
outstanding voting securities of that issuer.
CONCENTRATION OF INVESTMENTS
The Fund 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.
ISSUING SENIOR SECURITIES
The Fund will not issue senior securities, except as permitted by the investment
objective and policies and investment limitations of the Fund.
The above limitations cannot be changed unless authorized by the "vote of a
majority of its outstanding voting securities," as defined by the Investment
Company Act. The following limitations, however, may be changed by the Board
without shareholder approval. Shareholders will be notified before any material
change in these limitations becomes effective.
ACQUIRING SECURITIES
The Fund will not acquire the voting securities of any issuer. It will not
invest in securities of a company for the purpose of exercising control or
management.
INVESTING IN RESTRICTED SECURITIES
The Fund may invest in restricted securities. Restricted securities are any
securities that are subject to restrictions on resale under federal securities
law. The Fund may invest without limitation in restricted securities which are
determined to be liquid under criteria established by the Trustees. To the
extent that restricted securities are not determined to be liquid the Fund will
limit their purchase, together with other illiquid securities, to not more than
10% of its net assets.
INVESTING IN SECURITIES OF OTHER INVESTMENT COMPANIES
The Fund may invest in the securities of affiliated money market funds as an
efficient means of managing the Fund's uninvested cash.
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 Fund 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 purpose of its policies and limitations, the Fund 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 Fund 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 Fund will comply
with various requirements of Rule 2a-7, which regulates money market mutual
funds. The Fund 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 Fund may change these
operational policies to reflect changes in the laws and regulations without the
approval of its shareholders.
DETERMINING MARKET VALUE OF SECURITIES
The Board has 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.
Accordingly, 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
Fund computed by dividing the annualized daily income on the Fund'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 opposite may be true.
The Fund'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 Securities and Exchange Commission under the Investment
Company Act of 1940. Under the Rule, the Board 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 Fund's investment objective. The 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 Board will decide what, if any, steps should be taken if there is a
difference of more than 0.5 of 1% between the two values. The Board 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.
How is the Fund Sold?
Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.), offers Shares on a continuous, best-efforts basis.
SHAREHOLDER SERVICES
The Fund may pay Federated Shareholder Services Company, a subsidiary of
Federated Investors, Inc. (Federated), for providing shareholder services and
maintaining shareholder accounts. Federated Shareholder Services Company will
either perform these services directly or will pay Edward D.
Jones & Co. to perform shareholder services.
Redemption in Kind
Although the Fund intends to pay Share redemptions in cash, it reserves the
right, as described below, to pay the redemption price in whole or in part by a
distribution of the Fund's portfolio securities.
Because the Fund has elected to be governed by Rule 18f-1 under the Investment
Company Act of 1940, the Fund is obligated to pay Share redemptions to any one
shareholder in cash only up to the lesser of $250,000 or 1% of the net assets
represented by such Share class during any 90-day period.
Any Share redemption payment greater than this amount will also be in cash
unless the Fund's Board determines that payment should be in kind. In such a
case, the Fund will pay all or a portion of the remainder of the redemption in
portfolio securities, valued in the same way as the Fund determines its NAV. The
portfolio securities will be selected in a manner that the Fund's Board deems
fair and equitable and, to the extent available, such securities will be readily
marketable.
Redemption in kind is not as liquid as a cash redemption. If redemption is made
in kind, shareholders receiving the portfolio securities and selling them before
their maturity could receive less than the redemption value of the securities
and could incur certain transaction costs.
Massachusetts Partnership Law
Under certain circumstances, shareholders may be held personally liable as
partners under Massachusetts law for obligations of the Fund. To protect its
shareholders, the Fund has filed legal documents with Massachusetts that
expressly disclaim the liability of its shareholders for acts or obligations of
the Fund.
In the unlikely event a shareholder is held personally liable for the Fund's
obligations, the Fund is required by the Declaration of Trust to use its
property to protect or compensate the shareholder. On request, the Fund will
defend any claim made and pay any judgment against a shareholder for any act or
obligation of the Fund. Therefore, financial loss resulting from liability as a
shareholder will occur only if the Fund itself cannot meet its obligations to
indemnify shareholders and pay judgments against them.
Account and Share Information
VOTING RIGHTS
Each share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All Shares of the Fund have
equal voting rights.
Trustees may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Fund's outstanding shares.
As of May 24, 1999, no shareholder owned of record, beneficially, or both, 5% or
more of outstanding Shares.
Tax Information
FEDERAL INCOME TAX
The Fund intends to meet requirements of Subchapter M of the Internal Revenue
Code applicable to regulated investment companies. If these requirements are not
met, it will not receive special tax treatment and will pay federal income tax.
Who Manages and Provides Services to the Fund?
BOARD OF TRUSTEES
The Board is responsible for managing the Fund's business affairs and for
exercising all the Fund's powers except those reserved for the shareholders.
Information about each Board member is provided below and includes each
person's: name, address, birth date, present position(s) held with the Fund,
principal occupations for the past five years and positions held prior to the
past five years, total compensation received as a Trustee from the Fund for its
most recent fiscal year, and the total compensation received from the Federated
Fund Complex for the most recent calendar year. The Fund is comprised of one
fund and the Federated Fund Complex is comprised of 54 investment companies,
whose investment advisers are affiliated with the Fund's Adviser.
As of May 24, 1999, the Fund's Board and Officers as a group owned less than 1%
of the Fund's outstanding Shares.
An asterisk (*) denotes a Trustee who is deemed to be an interested person as
defined in the Investment Company Act of 1940. The following symbol (#) denotes
a Member of the Board's Executive Committee, which handles the Board's
responsibilities between its meetings.
<TABLE>
<CAPTION>
NAME TOTAL
BIRTH DATE AGGREGATE COMPENSATION
ADDRESS PRINCIPAL OCCUPATIONS COMPENSATION FROM FUND
POSITION WITH FUND FOR PAST FIVE YEARS FROM FUND AND FUND COMPLEX
<S> <C> <C> <C>
JOHN F. DONAHUE*+# Chief Executive Officer and $0 $0 for the Fund and
Birth Date: July 28, 1924 Director or Trustee of the 54 other investment
Federated Investors Tower Federated Fund Complex; companies in the
1001 Liberty Avenue Chairman and Director, Fund Complex
Pittsburgh, PA Federated Investors, Inc.;
CHAIRMAN AND TRUSTEE Chairman and Trustee,
Federated Investment Management Company;
Chairman and Director, Federated
Investment Counseling, and Federated
Global Investment Management Corp.;
Chairman, Passport Research, Ltd.
THOMAS G. BIGLEY Director or Trustee of the Federated Fund Complex; $4,921.04 $113,860.22 for the
Birth Date: February 3, 1934 Director, Member of Executive Committee, Children's Fund and 54 other
15 Old Timber Trail Hospital of Pittsburgh; Director, Robroy Industries, investment companies
Pittsburgh, PA Inc. (coated steel conduits/computer storage in the Fund Complex
TRUSTEE equipment); formerly: Senior Partner, Ernst & Young
LLP; Director, MED 3000 Group, Inc. (physician
practice management); Director, Member of Executive
Committee, University of Pittsburgh.
JOHN T. CONROY, JR. Director or Trustee of the Federated Fund Complex; $5,413.93 $125,264.48 for the
Birth Date: June 23, 1937 President, Investment Properties Corporation; Senior Fund and 54 other
Wood Commercial Dept. Vice President, John R. Wood and Associates, Inc., investment companies
John R. Wood Associates, Inc. Realtors Realtors; Partner or Trustee in private real estate in the Fund Complex
3255 Tamiami Trail North ventures in Southwest Florida; formerly: President,
Naples, FL Naples Property Management, Inc. and Northgate
TRUSTEE Village Development Corporation.
NICHOLAS CONSTANTAKIS Director or Trustee of the Federated Fund Complex; $0 $47,958.02 for the
Birth Date: September 3, 1939 formerly: Partner, Andersen Worldwide SC. Fund and 39 other
175 Woodshire Drive investment companies
Pittsburgh, PA in the Fund Complex
TRUSTEE
JOHN F. CUNNINGHAM++ Director or Trustee of some of the Federated Fund $0 $0 for the Fund and
Birth Date: March 5, 1943 Complex; Chairman, President and Chief Executive 43 other investment
353 El Brillo Way Officer, Cunningham & Co., Inc. (strategic business companies in the
Palm Beach, FL consulting); Trustee Associate, Boston College; Fund Complex
TRUSTEE Director, EMC Corporation (computer storage
systems); formerly: Director,
Redgate Communications.
Previous Positions: Chairman of the Board and Chief
Executive Officer, Computer Consoles, Inc.; President
and Chief Operating Officer, Wang Laboratories;
Director, First National Bank of Boston; Director,
Apollo Computer, Inc.
LAWRENCE D. ELLIS, M.D.* Director or Trustee of the Federated Fund Complex; $4,921.04 $113,860.22 for the
Birth Date: October 11, 1932 Professor of Medicine, University of Pittsburgh; Fund and 54 other
3471 Fifth Avenue Medical Director, University of Pittsburgh Medical investment companies
Suite 1111 Center - Downtown; Hematologist, Oncologist, and in the Fund Complex
Pittsburgh, PA Internist, University of Pittsburgh Medical Center;
TRUSTEE Member, National Board of Trustees, Leukemia
Society of America.
PETER E. MADDEN Director or Trustee of the Federated Fund Complex; $5,050.65 $113,860.22 for the
Birth Date: March 16, 1942 formerly: Representative, Commonwealth of Fund and 54 other
One Royal Palm Way Massachusetts General Court; President, State Street investment companies
100 Royal Palm Way Bank and Fund Company and State in the Fund Complex
Palm Beach, FL Street Corporation.
TRUSTEE Previous Positions: Director, VISA USA and VISA
International; Chairman and Director, Massachusetts
Bankers Association; Director, Depository Fund
Corporation; Director, The Boston Stock Exchange.
<CAPTION>
NAME TOTAL
BIRTH DATE AGGREGATE COMPENSATION
ADDRESS PRINCIPAL OCCUPATIONS COMPENSATION FROM FUND
POSITION WITH FUND FOR PAST FIVE YEARS FROM FUND AND FUND COMPLEX
<S> <C> <C> <C>
CHARLES F. MANSFIELD, JR.++ Director or Trustee of some of $0 $0 for the Fund and
Birth Date: April 10, 1945 the Federated Fund Complex; 43 other investment
80 South Road Management Consultant. companies in the
Westhampton Beach, NY Previous Positions: Chief Fund Complex
TRUSTEE Executive Officer, PBTC
International Bank; Partner,
Arthur Young & Company (now
Ernst & Young LLP); Chief
Financial Officer of Retail
Banking Sector, Chase
Manhattan Bank; Senior Vice
President, Marine Midland
Bank; Vice President,
Citibank; Assistant Professor
of Banking and Finance, Frank
G. Zarb School of Business,
Hofstra University.
JOHN E. MURRAY, JR., J.D., S.J.D.# Director or Trustee of the Federated Fund Complex; $5,050.65 $113,860.22 for the
Birth Date: December 20, 1932 President, Law Professor, Duquesne University; Fund and 54 other
President, Duquesne University Consulting Partner, Mollica & Murray; Director, investment companies
Pittsburgh, PA Michael Baker Corp. (engineering, construction, in the Fund Complex
TRUSTEE operations, and technical services).
Previous Positions: Dean and Professor of Law,
University of Pittsburgh School of Law; Dean and
Professor of Law, Villanova University School of Law.
MARJORIE P. SMUTS Director or Trustee of the Federated Fund Complex; $4,921.04 $113,860.22 for the
Birth Date: June 21, 1935 Public Relations/Marketing/Conference Planning. Fund and 54 other
4905 Bayard Street Previous Positions: National Spokesperson, Aluminum investment companies
Pittsburgh, PA Company of America; television producer; business in the Fund Complex
TRUSTEE owner.
JOHN S. WALSH++ Director or Trustee of some of the Federated Fund $0 $0 for the Fund and
Birth Date: November 28, 1957 Complex; President and Director, Heat Wagon, Inc. 40 other investment
2007 Sherwood Drive (manufacturer of construction temporary heaters); companies in the
Valparaiso, IN President and Director, Manufacturers Products, Inc. Fund Complex
TRUSTEE (distributor of portable construction heaters);
President, Portable Heater Parts, a division of
Manufacturers Products, Inc.; Director, Walsh & Kelly,
Inc. (heavy highway contractor); formerly: Vice
President, Walsh & Kelly, Inc.
J. CHRISTOPHER DONAHUE+* President or Executive Vice President of the Federated $0 $0 for the Fund and
Birth Date: April 11, 1949 Fund Complex; Director or Trustee of some of the 22 other investment
Federated Investors Tower Funds in the Federated Fund Complex; President and companies in the
1001 Liberty Avenue Director, Federated Investors, Inc.; President and Fund Complex
Pittsburgh, PA Trustee, Federated Investment Management
EXECUTIVE VICE PRESIDENT AND TRUSTEE Company; President and Director, Federated
Investment Counseling and Federated Global
Investment Management Corp.; President, Passport
Research, Ltd.; Trustee, Federated Shareholder
Services Company; Director, Federated Services
Company.
EDWARD C. GONZALES Trustee or Director of some of the Funds in the $0 $0 for the Fund and
Birth Date: October 22, 1930 Federated Fund Complex; President, Executive Vice 1 other investment
Federated Investors Tower President and Treasurer of some of the Funds in the company in the
1001 Liberty Avenue Federated Fund Complex; Vice Chairman, Federated Fund Complex
Pittsburgh, PA Investors, Inc.; Vice President, Federated Investment
EXECUTIVE VICE PRESIDENT Management Company and Federated Investment
Counseling, Federated Global Investment
Management Corp. and Passport Research, Ltd.;
Executive Vice President and Director, Federated
Securities Corp.; Trustee, Federated Shareholder
Services Company.
JOHN W. MCGONIGLE Executive Vice President and Secretary of the $0 $0 for the Fund and
Birth Date: October 26, 1938 Federated Fund Complex; Executive Vice President, 54 other investment
Federated Investors Tower Secretary, and Director, Federated Investors, Inc.; companies in the
1001 Liberty Avenue Trustee, Federated Investment Management Fund Complex
Pittsburgh, PA Company; Director, Federated Investment Counseling
EXECUTIVE VICE PRESIDENT AND SECRETARY and
Federated Global Investment Management
Corp.; Director, Federated Services
Company; Director, Federated Securities
Corp.
RICHARD J. THOMAS Treasurer of the Federated Fund Complex; Vice $0 $0 for the Fund and
Birth Date: June 17, 1954 President - Funds Financial Services Division, 54 other investment
Federated Investors Tower Federated Investors, Inc.; formerly: various companies in the
1001 Liberty Avenue management positions within Funds Financial Services Fund Complex
Pittsburgh, PA Division of Federated Investors, Inc.
TREASURER
RICHARD B. FISHER President or Vice President of some of the Funds in $0 $0 for the Fund and
Birth Date: May 17, 1923 the Federated Fund Complex; Director or Trustee of 6 other investment
Federated Investors Tower some of the Funds in the Federated Fund Complex; companies in the
1001 Liberty Avenue Executive Vice President, Federated Investors, Inc.; Fund Complex
Pittsburgh, PA Chairman and Director, Federated Securities Corp.
PRESIDENT
<CAPTION>
NAME TOTAL
BIRTH DATE AGGREGATE COMPENSATION
ADDRESS PRINCIPAL OCCUPATIONS COMPENSATION FROM FUND
POSITION WITH FUND FOR PAST FIVE YEARS FROM FUND AND FUND COMPLEX
<S> <C> <C> <C>
WILLIAM D. DAWSON, III Chief Investment Officer of $0 $0 for the Fund and
Birth Date: March 3, 1949 this Fund and various other 41 other investment
Federated Investors Tower Funds in the Federated Fund companies in the
1001 Liberty Avenue Complex; Executive Vice Fund Complex
Pittsburgh, PA President, Federated
CHIEF INVESTMENT OFFICER Investment Counseling,
Federated Global Investment
Management Corp., Federated
Investment Management Company
and Passport Research, Ltd.;
Registered Representative,
Federated Securities Corp.;
Portfolio Manager, Federated
Administrative Services; Vice
President, Federated
Investors, Inc.; formerly:
Executive Vice President and
Senior Vice President,
Federated Investment
Counseling Institutional
Portfolio Management Services
Division; Senior Vice
President, Federated
Investment Management Company
and Passport Research, Ltd.
SUSAN R. HILL Susan R. Hill is Vice President of the Fund. Ms. Hill $0 $0 for the Fund and
Birth Date: June 20, 1963 joined Federated in 1990 and has been a Portfolio 9 other investment
Federated Investors Tower Manager since 1993 and a Vice President of the companies in the
1001 Liberty Avenue Fund's Adviser since 1997. Ms. Hill was a Portfolio Fund Complex
Pittsburgh, PA Manager and an Assistant Vice President of the
VICE PRESIDENT Adviser from 1994 until 1997. Ms. Hill is a Chartered
Financial Analyst and received an M.S. in Industrial
Administration from Carnegie Mellon University.
</TABLE>
+ Mr. Donahue is the father of J. Christopher Donahue, Executive Vice
President of the Fund.
++ Messrs. Cunningham, Mansfield and Walsh became members of the Board of
Trustees on April 1, 1999. They did not earn any fees for serving the Fund
Complex since these fees are reported as of the end of the last calendar year.
They did not receive any fees as of the fiscal year end of the Fund.
INVESTMENT ADVISER
The Adviser conducts investment research and makes investment decisions for the
Fund.
Passport Research, Ltd. is a Pennsylvania limited partnership. Its general
partner is Federated Investment Management Co. (formerly, Federated
Advisers), a wholly owned investment advisory subsidiary of Federated,
with a 50.5% interest. Its limited partner is Edward D. Jones & Co. L.P.,
with a 49.5% interest.
OTHER RELATED SERVICES
Affiliates of the Adviser may, from time to time, provide certain electronic
equipment and software to institutional customers in order to facilitate the
purchase of Fund Shares offered by the Distributor.
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. 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 may select brokers and dealers
based on whether they also offer research services (as described below). In
selecting among firms believed to meet these criteria, the Adviser may give
consideration to those firms which have sold or are selling Shares of the Fund
and other funds distributed by the Distributor and its affiliates. The Adviser
makes decisions on portfolio transactions and selects brokers and dealers
subject to review by the Fund's Board.
RESEARCH SERVICES
Research services 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 may be used by the Adviser or by affiliates of Federated in advising
other accounts. To the extent that receipt of these services may replace
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 those 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.
Investment decisions for the Fund are made independently from those of other
accounts managed by the Adviser. When the Fund and one or more of those accounts
invests in, or disposes of, the same security, available investments or
opportunities for sales will be allocated among the Fund and the account(s) in a
manner believed by the Adviser to be equitable. While the coordination and
ability to participate in volume transactions may benefit the Fund, it is
possible that this procedure could adversely impact the price paid or received
and/or the position obtained or disposed of by the Fund.
ADMINISTRATOR
Federated Services Company, a subsidiary of Federated, provides administrative
personnel and services (including certain legal and financial reporting
services) necessary to operate the Fund. Federated Services Company provides
these at the following annual rate of the average aggregate daily net assets of
all Federated Funds as specified below:
<TABLE>
<CAPTION>
AVERAGE AGGREGATE DAILY
MAXIMUM NET ASSETS OF THE FEDERATED
ADMINISTRATIVE FEE FUNDS
<S> <C>
0.150 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.100 of 1% on the next $250 million
0.075 of 1% on assets in excess of $750 million
</TABLE>
In addition, the Fund's Distributor provides 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 Fund.
The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio. Federated Services Company may voluntarily waive a
portion of its fee and may reimburse the Fund for expenses.
Federated Services Company also provides certain accounting and recordkeeping
services with respect to the Fund's portfolio investments for a fee based on
Fund assets plus out-of-pocket expenses.
CUSTODIAN
State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the
securities and cash of the Fund. Foreign instruments purchased by the Fund are
held by foreign banks participating in a network coordinated by State Street
Bank.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Edward D. Jones & Co., L.P. maintains all necessary shareholder records. The
Fund pays the transfer agent a fee based on the size, type, and number of
accounts and transactions made by shareholders.
INDEPENDENT AUDITORS
Ernst & Young LLP is the independent auditor for the Fund.
FEES PAID BY THE FUND FOR SERVICES
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FEBRUARY 28 1999 1998 1997
<S> <C> <C> <C>
Advisory Fee Earned $27,782,250 $21,839,967 $18,178,478
Advisory Fee Reduction 0 0 0
Brokerage Commissions 0 0 0
Administrative Fee 5,001,329 3,884,997 3,198,194
12b-1 Fee None - -
Shareholder Services Fee 16,582,656 - -
</TABLE>
How Does the Fund Measure Performance?
The Fund may advertise Share performance by using the Securities and Exchange
Commission's (SEC) standard method for calculating performance applicable to all
mutual funds. The SEC also permits this standard performance information to be
accompanied by non-standard performance information.
The performance of Shares depends upon such variables as: portfolio quality;
average portfolio maturity; type and value of portfolio securities; changes in
interest rates; changes or differences in the Fund's or any class of Shares'
expenses; and various other factors.
Share performance fluctuates on a daily basis largely because net earnings
fluctuate daily. Both net earnings and offering price per Share are factors in
the computation of yield and total return.
AVERAGE ANNUAL TOTAL RETURNS AND YIELD
Total returns given for the one-, five- and ten-year periods ended February 28,
1999.
Yield and Effective Yield given for the 7-day period ended February 28, 1999.
<TABLE>
<CAPTION>
7-DAY PERIOD 1 YEAR 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Total Return NA 4.63% 4.58% 4.89%
Yield 4.08% NA NA NA
Effective Yield 4.17% NA NA NA
</TABLE>
TOTAL RETURN
Total return represents the change (expressed as a percentage) in the value of
Shares over a specific period of time, and includes the investment of income and
capital gains distributions.
The average annual total return for Shares 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 NAV 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, less any applicable sales charge, adjusted over the
period by any additional Shares, assuming the annual reinvestment of all
dividends and distributions.
YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
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; dividing 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 multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized
base-period return by: adding one to the base-period return, raising the sum to
the 365/7th power; and subtracting one from the result.
To the extent investment professionals and broker/dealers charge fees in
connection with services provided in conjunction with an investment in Shares,
the Share performance is lower for shareholders paying those fees.
PERFORMANCE COMPARISONS
Advertising and sales literature may include:
* references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;
* charts, graphs and illustrations using the Fund's returns, or returns in
general, that demonstrate investment concepts such as tax-deferred compounding,
dollar-cost averaging and systematic investment;
* discussions of economic, financial and political developments and their impact
on the securities market, including the portfolio manager's views on how such
developments could impact the Funds; and
* information about the mutual fund industry from sources such as the Investment
Company Institute.
The Fund may compare its performance, or performance for the types of securities
in which it invests, to a variety of other investments, including federally
insured bank products such as bank savings accounts, certificates of deposit,
and Treasury bills.
The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.
You may use financial publications and/or indices to obtain a more complete view
of Share performance. When comparing performance, you should consider all
relevant factors such as the composition of the 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 Fund uses in advertising may include:
LIPPER ANALYTICAL SERVICES INC.
Lipper 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 Fund will quote its Lipper ranking in the "money market
instruments" category in advertising and sales literature.
Who is Federated Investors, Inc.?
Federated is dedicated to meeting investor needs by making structured,
straightforward and consistent investment decisions. Federated investment
products have a history of competitive performance and have gained the
confidence of thousands of financial institutions and individual investors.
Federated's disciplined investment selection process is rooted in sound
methodologies backed by fundamental and technical research. At Federated,
success in investment management does not depend solely on the skill of a single
portfolio manager. It is a fusion of individual talents and state- of-the-art
industry tools and resources. Federated's investment process involves teams of
portfolio managers and analysts, and investment decisions are executed by
traders who are dedicated to specific market sectors and who handle trillions of
dollars in annual trading volume.
FEDERATED FUNDS OVERVIEW
MUNICIPAL FUNDS
In the municipal sector, as of December 31, 1998, Federated managed 10 bond
funds with approximately $2.2 billion in assets and 23 money market funds with
approximately $12.5 billion in total assets. In 1976, Federated introduced one
of the first municipal bond mutual funds in the industry and is now one of the
largest institutional buyers of municipal securities. The Funds may quote
statistics from organizations including The Tax Foundation and the National
Taxpayers Union regarding the tax obligations of Americans.
EQUITY FUNDS
In the equity sector, Federated has more than 28 years' experience. As of
December 31, 1998, Federated managed 27 equity funds totaling approximately
$14.9 billion in assets across growth, value, equity income, international,
index and sector (i.e. utility) styles. Federated's value- oriented management
style combines quantitative and qualitative analysis and features a structured,
computer-assisted composite modeling system that was developed in the 1970s.
CORPORATE BOND FUNDS
In the corporate bond sector, as of December 31, 1998, Federated managed 9 money
market funds and 15 bond funds with assets approximating $22.8 billion and $7.1
billion, respectively. Federated's corporate bond decision making-based on
intensive, diligent credit analysis-is backed by over 26 years of experience in
the corporate bond sector. In 1972, Federated introduced one of the first
high-yield bond funds in the industry. In 1983, Federated was one of the first
fund managers to participate in the asset-backed securities market, a market
totaling more than $209 billion.
GOVERNMENT FUNDS
In the government sector, as of December 31, 1998, Federated manages 9
mortgage-backed, 5 government/agency and 19 government money market mutual
funds, with assets approximating $5.3 billion, $1.8 billion and $41.6 billion,
respectively. Federated trades approximately $425 million in U.S. government and
mortgage-backed securities daily and places approximately $25 billion in
repurchase agreements each day. Federated introduced the first U.S. government
fund to invest in U.S. government bond securities in 1969. Federated has been a
major force in the short- and intermediate-term government markets since 1982
and currently manages approximately $43.2 billion in government funds within
these maturity ranges.
MONEY MARKET FUNDS
In the money market sector, Federated 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,
1998, Federated managed more than $76.7 billion in assets across 52 money market
funds, including 19 government, 9 prime and 23 municipal with assets
approximating $41.6 billion, $22.8 billion and $12.5 billion, respectively.
The Chief Investment Officers responsible for oversight of the various
investment sectors within Federated are: U.S. equity and high yield-
J. Thomas Madden; U.S. fixed income-William D. Dawson, III; and global
equities and fixed income-Henry A. Frantzen. The Chief Investment Officers
are Executive Vice Presidents of the Federated advisory companies.
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 $5 trillion to the more than 7,300 funds available,
according to the Investment Company Institute.
FEDERATED CLIENTS OVERVIEW
Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:
INSTITUTIONAL CLIENTS
Federated meets the needs of approximately 900 institutional clients nationwide
by managing and servicing separate accounts and mutual funds for a variety of
purposes, 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, Federated Securities Corp.
BANK MARKETING
Other institutional clients include more than 1,600 banks and Fund
organizations. Virtually all of the Fund divisions of the top 100 bank holding
companies use Federated Funds in their clients' portfolios. The marketing effort
to Fund clients is headed by Timothy C. Pillion, Senior 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,
Broker/Dealer Sales Division, Federated Securities Corp.
Addresses
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
PRINCIPAL DISTRIBUTOR
Edward D. Jones & Co., L.P.
201 Progress Parkway
Maryland Heights, Missouri 63043
DISTRIBUTOR
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
INVESTMENT ADVISER
Passport Research, Ltd.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA 02266-8600
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Edward D. Jones & Co., L.P.
201 Progress Parkway
Maryland Heights, MO 63043
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116-5072
PART C. OTHER INFORMATION.
Item 23. EXHIBITS:
(a) Conformed copy of the Declaration of Trust, as amended;
(15)
(b) (i) Copy of By-Laws of the Registrant as amended and
restated; (15) (ii)Copy of Amendment No. 3 to the
By-Laws; (17)
(iii) Copy of Amendment No. 4 to the By-Laws; (18)
(iv) Copy of Amendment No. 5 to the By-Laws; (18)
(v) Copy of Amendment No. 6 to the By-Laws; (18)
(vi) Copy of Amendment No. 7 to the By-Laws; (18)
(c) Copy of Specimen Certificate for Shares of Beneficial
Interest of the Registrant; (15) (d) Conformed copy of
the Investment Advisory Contract of the Registrant; (11)
(e) (i) Conformed copy of Distributor's Contract; (11)
(ii) Copy of the Selling Group Agreement; (15)
(f) Not applicable;
(g) (i) Conformed copy of the revised Custodian
Agreement of the Registrant; (15) (ii) Conformed
copy of Domestic Custody Fee
Schedule; (17)
(h) (i)............Conformed copy of Agreement for Fund Accounting
Services, Administrative Services, Transfer
Agency Services and Custody Services
Procurement; (17)
(ii)...........Conformed copy of Amended and Restated
Shareholder Services Agreement; (17)
(iii)..........Conformed copy of Shareholder Services Sub-
Contract; (15)
(i) Conformed copy of Opinion and Consent of Counsel
as to Legality of Shares being registered; (15)
+ All exhibits have been filed electronically.
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)
17. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 34 on Form N-1A filed April 28, 1998. (File Nos. 2-66437 and
811-2993)
18. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 35 on Form N-1A filed February 26, 1999. (File Nos. 2-66437
and 811-2993)
<PAGE>
(j) Conformed copy of Consent of Independent Auditors; + (k)
Not applicable; (l) Conformed copy of Initial Capital
Understanding; (15) (m) Not applicable;
(n) Copy of Financial Data Schedule; (not included per
footnote 60 of Release No. 33-7684) (o) Not applicable;
(p) Conformed copy of Power of Attorney; (19)
(i) Conformed copy of Power of Attorney of the
Chief Investment Officer of the
Registrant; (18)
(ii)Conformed copy of Power of Attorney of the
Treasurer of the Registrant; (18)
(iii) Conformed copy of Power of Attorney of
Trustee John F. Cunningham; (19)
(iv) Conformed copy of Power of Attorney of
Trustee Charles F. Mansfield, Jr.; (19)
(v) Conformed copy of Power of Attorney of
Trustee John S. Walsh. (19)
Item 24. Persons Controlled by or Under Common Control with Registrant:
None
Item 25. INDEMNIFICATION: (11)
- -----------------------------
+ All exhibits have been filed electronically.
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)
18. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 35 on Form N-1A filed February 26, 1999. (File Nos. 2-66437
and 811-2993)
19. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 36 on Form N-1A filed April 29, 1999. (File Nos. 2-66437 and
811-2993)
<PAGE>
Item 26. Business and Other Connections of Investment Adviser:
(a) For a description of the other business of the investment adviser,
see the section entitled "WHO MANAGES THE FUND?" 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 "WHO MANAGES AND PROVIDES SERVICES TO
THE FUND?" 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:
Executive Vice Presidents: William D. Dawson, III
Henry A. Frantzen
J. Thomas Madden
Senior Vice Presidents: Joseph M. Balestrino
David A. Briggs
Drew J. Collins
Jonathan C. Conley
Deborah A. Cunningham
Mark E. Durbiano
Jeffrey A. Kozemchak
Sandra L. McInerney
Susan M. Nason
Mary Jo Ochson
Robert J. Ostrowski
Vice Presidents: Todd A. Abraham
J. Scott Albrecht
Arthur J. Barry
Randall S. Bauer
David A. Briggs
Micheal W. Casey
Robert E. Cauley
Kenneth J. Cody
Alexandre de Bethmann
B. Anthony Delserone, Jr.
Michael P. Donnelly
Linda A. Duessel
Donald T. Ellenberger
Kathleen M. Foody-Malus
Thomas M. Franks
Edward C. Gonzales
James E. Grefenstette
Marc Halperin
Patricia L. Heagy
Susan R. Hill
William R. Jamison
Constantine J. Kartsonas
Stephen A. Keen
Robert M. Kowit
Richard J. Lazarchic
Steven Lehman
Marian R. Marinack
William M. Painter
Jeffrey A. Petro
Keith J. Sabol
Frank Semack
Aash M. Shah
Michael W. Sirianni, Jr.
Christopher Smith
Tracy P. Stouffer
Edward J. Tiedge
Paige M. Wilhelm
George B. Wright
Jolanta M. Wysocka
Assistant Vice Presidents: Nancy J. Belz
Lee R. Cunningham, II
James H. Davis, II
Jacqueline A. Drastal
Paul S. Drotch
Salvatore A. Esposito
Donna M. Fabiano
Gary E. Farwell
Eamonn G. Folan
John T. Gentry
John W. Harris
Nathan H. Kehm
John C. Kerber
Grant K. McKay
Natalie F. Metz
Joseph M. Natoli
Ihab Salib
James W. Schaub
John Sheehy
Matthew K. Stapen
Diane Tolby
Timothy G. Trebilcock
Leonardo A. Vila
Steven J. Wagner
Lori A. Wolff
Secretary: G. Andrew Bonnewell
Treasurer: Thomas R. Donahue
Assistant Secretaries: Thomas R. Donahue
Richard B. Fisher
Christine M. Newcamp
Assistant Treasurer: Richard B. Fisher
The business address of each of the Officers of the investment
adviser is Federated Investors Tower, 1001 Liberty Avenue,
Pittsburgh, Pennsylvania 15222-3779. These individuals are also
officers of a majority of the investment advisers to the investment
companies in the Federated Fund Complex described in Part B of this
Registration Statement.
Item 27. Principal Underwriters:
(a) None
(b) Edward D. Jones & Co., L.P. is a limited partnership. 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 United Kingdom
Charles E. Armstrong Jr. Investment Representative (IR)
Jandy R. Arnold Insurance/Annuity Operations
John W. Bachmann Managing Principal
Robert Baldridge Information Systems - Home
Office Services
James D. Bashor IR -Regional Leader
Kevin D. Bastien Accounting
Armin C. Baumgartel IR - Regional Leader
Robert J. Beck Municipal Bonds
Roger W. Bennett IR - Regional Leader
Thomas L. Bertsch IR - Regional Leader
John D. Beuerlein IR Development
Howard W. Bokhoven IR - Regional Leader
John S. Borota Sales Recruiting
Kenneth Paul Box IR - Regional Leader
Robb R. Boyd IR - Regional Leader
Harold Britton IR - Regional Leader
William H. Broderick III On-Line Marketing
John Seymour Brown IR - Regional Leader
Morton L. Brown Managed Asset Services
Daniel A. Burkhardt Investment Banking
Donald James Burwell Canadian Compliance
Jack L. Cahill IR Training
Brett A. Campbell New IR Marketing
William F. Campbell IR - Regional Leader
John J. Caruso Information Systems
Architecture
Guy R. Cascella IR Development
Pamela K. Cavness Compliance
James Wiley Charles, III IR - Regional Leader
Richard A. Christensen Jr. Mutual Fund Operations
Robert J. Ciapciak Managing Principal Support
Stephan P. Clement Video
Cheryl J. Cook-Schneider Compliance
Loyola A. Cronin Branch Staff Training
Gary J. Coon IR - Regional Leader
Richard A. Coon IR - Regional Leader
Terry E. Crow Trust Company
Michael W. Cummins IR - Regional Leader
Paul J. Curran IR - Regional Leader
Paul R. Daniels IR - Regional Leader
Douglas E. Davis IR - Regional Leader
John M. Delavan IR - Regional Leader
John P. Dille IR - Regional Leader
James E. Docksey IR - Regional Leader
Cynthia A. Doria Legal
Gregory B. Dosmann IR Development
Brian T. Duffy IR - Regional Leader
William T. Dwyer IR - Regional Leader
Abe W. Dye IR - Regional Leader
Norman L. Eaker Operations Division
James K. Eberle IR - Regional Leader
Michael J. Esser Government Relations
Scott A. Ferguson IR - Regional Leader
Ann M. Ficken Internal Audit
Kevin N. Flatt Fixed Income
Laurens Wilson Floyd Jr. IR - Regional Leader
John David Fraser IR - Regional Leader
Steven J. Fraser Securities Processing
Bradley Lewis Frick Travel
Chris A. Gilkison Branch Locations
Barbara G. Gilman Sales Hiring
Steven L. Goldberg Central Services
Ronald L. Gorgen Field Services
Robert L. Gregory New IR Support
Kevin C. Haarberg IR - Regional Leader
Stuart E. Hamilton IR - Regional Leader
Paul J. Hansell IR - Regional Leader
David L. Hayes IR - Regional Leader
Randy K. Haynes Branch Services
Peter R. Heisler IR - Regional Leader
Clifton L. Helbert IR - Regional Leader
Mary Beth Heying Communications
Douglas E. Hill Chief Operating Officer
David V. Hirsch IR - Regional Leader
Thomas W. Hizar Jr. Investment Banking
William H. Hochstetler IR - Regional Leader
Alan J. Holmes IR - Regional Leader
Michael R. Holmes Sr. Human Resources
Ruben Wert Hope, III IR - Regional Leader
Don R. Howard IR - Regional Leader
Earl H. Hull Jr. IR - Regional Leader
Glennon D. Hunn Information Systems Controls
Thomas G. Iorio IR - Regional Leader
John E. Johnson Information Systems
Architecture
James J. Johnston IR - Regional Leader
Myles P. Kelly Accounting
Timothy Michael Kelly Compliance
Barb Kimbrough Information Systems - HR
Kenneth G. King Market Research
Timothy J. Kirley United Kingdom
Thomas M. Kliethermes IR - Regional Leader
Todd D. Knickerbocker IR - Regional Leader
Timothy J. Koehl Canada
James A. Krekeler Investment Banking
Frederick H. Kruse Boone National
David L. Lane IR - Regional Leader
Philip L. Langstraat IR - Regional Leader
Mark A. Leverenz Securities Processing
Michele M. Liebman Information Systems Support
Rhonda L. Liesenfeld Government Bonds
Richie L. Malone Chief Information Officer
J. Kevin Mangum IR - Regional Leader
Timothy J. McCoy Customer Retention Marketing
Thomas L. Migneron Income Distribution and
Settlement Operations
Richard G. Miller Jr. IR - Regional Leader
Larry Roger Million IR - Regional Leader
Thomas W. Miltenberger Mutual Funds Marketing
Merry L. Mosbacher Insurance Marketing
Steven Novik Chief Financial Officer
Robert K. Nyberg IR - Regional Leader
Barbara H. Ostby IR - Regional Leader
David G. Otto Research Marketing
Jeffrey Joseph Panchot IR - Regional Leader
Curtis A. Paul IR - Regional Leader
Van M. Pearcy IR - Regional Leader
James H. Phillips IR - Regional Leader
Darryl L. Pope Service Division
David F. Powers Research Marketing
Leonard A. Price IR - Regional Leader
Colleen A. Raley Advertising
Ray W. Raley, Jr. Equities
Gary D. Reamey International Expansion
Trevor D. Reese Jr. IR - Regional Leader
James L. Regnier Branch Training
Ray L. Robbins Jr. Research
Wann Van Robinson III IR - Regional Leader
Charles N. Rogers IR Development
Douglas L. Rosen IR - Regional Leader
Timothy W. Rupp IR - Regional Leader
Harry J. Sauer III Customer Loan & Banking Services
Ronald James Scariano IR - Regional Leader
Arthur Schlappi IR - Regional Leader
Thomas D. Schlosser IR - Regional Leader
Philip R. Schwab Syndicate
Festus W. Shaughnessy III Sales Hiring
Robert D. Shillingstad IR - Regional Leader
Connie H. Silverstein Banking Services
David Benson Skinner IR - Regional Leader
Alan F. Skrainka Research Marketing
John S. Sloop Market Development
Randall L. Smith IR - Regional Leader
Ronald H. Smith IR - Regional Leader
Lawrence R. Sobol Chief Legal Counsel
Leo Staudacher IR - Regional Leader
George (Eric) Steinhouse Marketing
Roberta L. Suchocki Sales Training
Lawrence E. Thomas IR Development
Daniel J. Timm New IR Training
Terry R. Tucker Information Systems
Operational Support
Richard G. Unnerstall Information Systems User
Interfaces
Susan S. Venn Financial Reporting
Vincent A. Vento, Jr. Research
Robert L. Virgil Jr. Managing Principal Support
Jo Ann Von Bergen Cash Operations
David Patrick Ward IR - Regional Leader
Leroy John Warner IR - Regional Leader
Donald E. Walter Field Supervision
James D. Weddle Branch Development
Thomas J. Westphal Customer Information
Heidi S. Whitfield-Sowatsky Product Review
Mary Lindsey Wilkins Retirement Plan Marketing
Robert D. Williams IR -Regional Leader
Price P. Woodward Customer Segments
Alan T. Wright Investment Banking
Bradley A. Ytterberg Customer Segments
Judith A. Zeilmann Human Resources
(c) Not applicable
Item 28. 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 Funds
Passport Cash Trust 5800 Corporate Drive
Pittsburgh, Pennsylvania
15237-7000
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") 1001 Liberty Avenue
Pittsburgh, Pennsylvania
15222-3779
Federated Services Company Federated Investors Tower
("Administrator") 1001 Liberty Avenue
Pittsburgh, Pennsylvania
15222-3779
Passport Research, Ltd. Federated Investors Tower
("Adviser") 1001 Liberty Avenue
Pittsburgh, Pennsylvania
15222-3779
Item 29. MANAGEMENT SERVICES: Not applicable.
Item 30. 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.
<PAGE>
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, certifies that it meets all of the requirements for
effectiveness of this Amendment to its Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and 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 22nd day of June, 1999.
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST
BY: /s/ Leslie K. Ross
Leslie K. Ross, Assistant Secretary
Attorney in Fact for John F. Donahue
June 22, 1999
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/ Leslie K. Ross
Leslie K. Ross Attorney In Fact June 22, 1999
ASSISTANT SECRETARY For the Persons
Listed Below
NAME TITLE
John F. Donahue* Chairman and Trustee
(Chief Executive Officer)
Richard B. Fisher* President
J. Christopher Donahue* Executive Vice President and
Trustee
Richard J. Thomas* Treasurer
(Principal Financial and
Accounting Officer)
William D. Dawson, III* Chief Investment Officer
Thomas G. Bigley* Trustee
John T. Conroy, Jr.* Trustee
Nicholas P. Constantakis* Trustee
John F. Cunningham* Trustee
Lawrence D. Ellis, M.D.* Trustee
Peter E. Madden* Trustee
Charles F. Mansfield, Jr.* Trustee
John E. Murray, Jr.* Trustee
Marjorie P. Smuts* Trustee
John S. Walsh* Trustee
* By Power of Attorney
Exhibit (j) under Form N-1A
Exhibit 23 under Item 601/Reg SK
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 19, 1999, in Post-Effective Amendment
Number 37 to the Registration Statement (Form N-1A No. 2-66437) and the related
Prospectus of Edward D. Jones & Co. Daily Passport Cash Trust dated June 22,
1999.
/s/ Ernst & Young LLP
Boston, Massachusetts
June 22, 1999