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1933 Act File No. 2-66437
1940 Act File No. 811-2993
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
-----
Pre-Effective Amendment No. ....................
-------- ------
Post-Effective Amendment No. 38 .................... X
------- -----
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
-----
Amendment No. 31 .................................... X
------ -----
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:
_ immediately upon filing pursuant to paragraph (b) X on May 31, 2000, 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
<P>
<B>PROSPECTUS</B> </P>
<H2>
Edward D. Jones & Co. Daily Passport Cash Trust</H2>
<H3>
</H3>
<P>
<R></P>
<P>
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 397 days or less.</P>
<P>
</R></P>
<P>
<R></P>
<P>
As with all mutual funds, the Securities and Exchange Commission (SEC) has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal offense.</P>
<P>
</R></P>
<P>
<B><R></B></P>
<P>
MAY 31, 2000</P>
<P>
</R></P>
<H3>
<B>CONTENTS</B></H3>
<P>
Risk/Return Summary 1</P>
<P>
What are the Fund's Fees and Expenses? 3</P>
<P>
What are the Fund's Investment Strategies? 4</P>
<P>
<R></P>
<P>
What are the Principal Securities in Which the<BR>
Fund Invests? 5</P>
<P>
</R></P>
<P>
What are the Specific Risks of Investing in the Fund? 5</P>
<P>
<R></P>
<P>
What Do Shares Cost? 6</P>
<P>
</R></P>
<P>
How is the Fund Sold? 6</P>
<P>
<R></P>
<P>
How to Purchase Shares 7</P>
<P>
</R></P>
<P>
<R></P>
<P>
How to Redeem and Exchange Shares 8</P>
<P>
</R></P>
<P>
<R></P>
<P>
Account and Share Information 10</P>
<P>
</R></P>
<P>
<R></P>
<P>
Who Manages the Fund? 11</P>
<P>
</R></P>
<P>
<R></P>
<P>
Financial Information 11</P>
<P>
</R></P>
<P>
<R></P>
<P>
Report of Ernst & Young LLP, Independent Auditors 21</P>
<P>
</R></P>
<H2>
Risk/Return Summary</H2>
<H3>
<B>WHAT IS THE FUND'S INVESTMENT OBJECTIVE?</B></H3>
<P>
<R></P>
<P>
The Fund is a money market fund that seeks to maintain a stable net asset value of
$1.00 per share. 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.</P>
<P>
</R></P>
<H3>
<B>WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?</B></H3>
<P>
<R></P>
<P>
The Fund invests in a portfolio of U.S. Treasury and government agency securities
maturing in 397 days 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.</P>
<P>
</R></P>
<H3>
<B>WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?</B></H3>
<P>
<B><R></B></P>
<P>
All mutual funds take investment risks. Therefore, even though the Fund is a money
market fund that 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.</P>
<P>
</R></P>
<H3>
<B>Risk/Return Bar Chart and Table</B></H3>
<H3>
</H3>
<H3>
[Graphic Representation Omitted - See Appendix]</H3>
<P>
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.</P>
<P>
<R></P>
<P>
The Fund's shares are sold without a sales charge (load). The total returns displayed
above are based upon net asset value.</P>
<P>
</R></P>
<P>
<R></P>
<P>
The Fund's total return for the three-month period from January 1, 2000 to March 31,
2000 was 1.22%.</P>
<P>
</R></P>
<P>
<R></P>
<P>
Within the period shown in the Chart, the Fund's highest quarterly return was 1.89%
(quarter ended June 30, 1990). Its lowest quarterly return was 0.56% (quarter ended
June 30, 1993).</P>
<P>
</R></P>
<H3>
<B>Average Annual Total Return Table</B></H3>
<P>
<R></P>
<P>
The following table represents the Fund's Average Annual Total Returns for the
calendar periods ended December 31, 1999.</P>
<P>
</R></P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Calendar Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Fund</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
1 Year</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.31%</R></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
5 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.71%</R></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
10 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.52%</R></P>
</TD>
</TR>
</TABLE>
<P>
<R></P>
<P>
The Fund's 7-Day Net Yield as of December 31, 1999 was 4.58%. You may call the Fund
at 1-800-341-7400 for the current 7-Day Net Yield.</P>
<P>
</R></P>
<P>
<B><R></B></P>
<P>
Past performance is no guarantee of future results. This information provides you
with historical performance information so that you can analyze whether the Fund's
investment risks are balanced by its potential returns.</P>
<P>
</R></P>
<H2>
What are the Fund's Fees and Expenses?</H2>
<H3>
<B>EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST</B></H3>
<H3>
<B>FEES AND EXPENSES</B></H3>
<P>
This table describes the fees and expenses that you may pay if you buy and hold
Shares of the Fund.</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Shareholder Fees </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Fees Paid Directly From Your Investment</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
None</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or
redemption proceeds,<BR>
as applicable) </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<BR>
None</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other
Distributions)<BR>
(as a percentage of offering price) </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<BR>
None</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Redemption Fee (as a percentage of amount redeemed, if applicable) </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
None</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Exchange Fee </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
None</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Annual Fund Operating Expenses</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Expenses That are Deducted From Fund Assets (as a percentage of average net
assets)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Management Fee<SUP>1</SUP> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.42%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Distribution (12b-1) Fee </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
None</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Shareholder Services Fee </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.25%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Other Expenses </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.27%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Total Annual Fund Operating Expenses </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.94%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="3">
<P>
1 The maximum management 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.</P>
</TD>
</TR>
</TABLE>
<H3>
<B>EXAMPLE</B></H3>
<P>
<B><R></B></P>
<P>
This Example is intended to help you compare the cost of investing in the Fund's
Shares with the cost of investing in other mutual funds.</P>
<P>
</R></P>
<P>
<R></P>
<P>
The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your Shares at the end of those periods. The Example
also assumes that your investment has a 5% return each year and that the Fund's
operating expenses are <B><B>before waivers</B></B> as shown in the table above and
remain the same. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:</P>
<P>
</R></P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
1 Year</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>96</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="4">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
3 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>300</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="4">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
5 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>520</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="4">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
10 Years</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,155</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="4">
<P>
<HR>
</TD>
</TR>
</TABLE>
<H2>
What are the Fund's Investment Strategies?</H2>
<P>
<R></P>
<P>
The Fund invests primarily in a portfolio of U.S. Treasury and government agency
securities maturing in 397 days 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.</P>
<P>
</R></P>
<P>
<R></P>
<P>
The Fund's investment adviser (Adviser) targets a dollar-weighted average portfolio
maturity range based upon its interest rate outlook. The Adviser formulates its
interest rate outlook by analyzing a variety of factors, such as:</P>
<P>
</R></P>
<P>
<R></P>
<UL>
<LI>
current U.S. economic activity and the economic outlook;
</UL>
<P>
</R></P>
<P>
<R></P>
<UL>
<LI>
current short-term interest rates;
</UL>
<P>
</R></P>
<P>
<R></P>
<UL>
<LI>
the Federal Reserve Board's policies regarding short-term interest rates; and
</UL>
<P>
</R></P>
<UL>
<LI>
the potential effects of foreign economic activity on U.S. short term interest rates.
</UL>
<P>
<R></P>
<P>
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 shorten or extend the
portfolio's dollar-weighted average maturity by comparing the returns currently
offered by different investments to their historical and expected returns.</P>
<P>
</R></P>
<H2>
What are the Principal Securities in Which the Fund Invests?</H2>
<P>
<R></P>
<H3>
<B>FIXED INCOME SECURITIES</B></H3>
<P>
</R></P>
<P>
<B><R></B></P>
<P>
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. The following describes the type of
fixed income securities in which the Fund may invest.</P>
<P>
</R></P>
<H3>
<B>U.S. Treasury Securities</B></H3>
<P>
<R></P>
<P>
U.S. Treasury securities are direct obligations of the federal government of the
United States.</P>
<P>
</R></P>
<P>
<B><R></B></P>
<H3>
<B>Government Agency Securities</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Agency securities are issued or guaranteed by a federal agency or other government
sponsored entity acting under federal authority (GSE). The United States supports
some GSEs with its full faith and credit. 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.</P>
<P>
</R></P>
<H3>
<B>Repurchase Agreements</B></H3>
<P>
<R></P>
<P>
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 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.</P>
<P>
</R></P>
<P>
Repurchase agreements are subject to credit risks.</P>
<H2>
What are the Specific Risks of Investing in the Fund?</H2>
<P>
<B><R></B></P>
<H3>
<B>INTEREST RATE RISK</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
<R></P>
<P>
Interest rate changes have a greater effect on the price of fixed income securities
with longer maturities. Money market funds try to minimize this risk by purchasing
short-term securities.</P>
<P>
</R></P>
<H3>
<B>CREDIT RISK</B></H3>
<P>
<R></P>
<P>
Credit risk includes the possibility that a party to a 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.</P>
<P>
</R></P>
<H2>
What Do Shares Cost?</H2>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
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.</P>
<H3>
<B>FULL SERVICE ACCOUNT</B></H3>
<P>
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.</P>
<H2>
How is the Fund Sold?</H2>
<P>
<R></P>
<P>
The Fund's Distributor, Federated Securities Corp., markets the Shares described in
this prospectus to individual, joint, custodial, trust, fiduciary, corporate,
partnership, association or proprietorship accounts.</P>
<P>
</R></P>
<P>
<R></P>
<P>
The Distributor and its affiliates may pay out of their assets other amounts
(including items of material value) to investment professionals for marketing and
servicing Shares. The Distributor is a subsidiary of Federated Investors, Inc.</P>
<P>
</R></P>
<H2>
How to Purchase Shares</H2>
<P>
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.</P>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>BY CHECK</B></H3>
<P>
To purchase Shares by check:</P>
<UL>
<LI>
sign the Automatic Collection and Reinvestment Service Agreement;<SUP>1</SUP>
<LI>
complete and sign a checkwriting application;<SUP>1</SUP>
<LI>
enclose a check for $1,000 or more made payable to Edward D. Jones & Co.; and
<LI>
send the check and any completed forms to your local Edward D. Jones & Co. office
with instructions that it be invested in the Fund.
</UL>
<P>
<R></P>
<P>
1 These forms are available from your Edward D. Jones & Co. investment
professional. They are optional but recommended.</P>
<P>
</R></P>
<H3>
<B>BY WIRE</B></H3>
<P>
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.</P>
<H3>
<B>THROUGH AN EXCHANGE</B></H3>
<P>
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.</P>
<P>
<B><R></B></P>
<H3>
<B>RETIREMENT INVESTMENTS</B></H3>
<P>
</R></P>
<P>
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.</P>
<P>
<R></P>
<H3>
<B>BY AUTOMATED CLEARING HOUSE (ACH)</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Once you have opened an account, you may purchase additional Shares through a
depository institution that is an ACH member.</P>
<P>
</R></P>
<H2>
How to Redeem and Exchange Shares</H2>
<P>
You may redeem or exchange Shares by submitting a request by telephone or by mail to
your Edward D. Jones & Co. investment professional.</P>
<H3>
<B>BY TELEPHONE</B></H3>
<P>
You may redeem or exchange Shares by calling your Edward D. Jones & Co.
investment professional.</P>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
<R></P>
<P>
If you call after 3:00 p.m. (Eastern time), your redemption will be mailed to you the
following business day. You will receive that day's dividend.</P>
<P>
</R></P>
<H3>
<B>BY MAIL</B></H3>
<P>
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.</P>
<P>
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.</P>
<P>
All written requests must include:</P>
<UL>
<LI>
Fund Name, account number and account registration;
<LI>
amount to be redeemed or exchanged;
<LI>
signatures of all shareholders exactly as registered; and
<LI>
<B><B>if exchanging</B></B>, the Fund Name and Share Class, account number and
account registration into which you are exchanging.
</UL>
<H3>
<B>PAYMENT METHODS FOR REDEMPTIONS</B></H3>
<P>
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:</P>
<UL>
<LI>
an electronic transfer to your account at a financial institution that is an ACH
member; or
<LI>
wire payment to your account at a domestic commercial bank that is a Federal Reserve
System member.
</UL>
<H3>
<B>Redemption in Kind</B></H3>
<P>
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.</P>
<H3>
<B>LIMITATIONS ON REDEMPTION PROCEEDS</B></H3>
<P>
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:</P>
<UL>
<LI>
to allow your purchase to clear;
<LI>
during periods of market volatility; or
<LI>
when a shareholder's trade activity or amount adversely impacts the Fund's ability to
manage its assets.
</UL>
<P>
You will not accrue interest or dividends on uncashed checks from the Fund if those
checks are undeliverable and returned to the Fund.</P>
<H3>
<B>REDEMPTIONS FROM RETIREMENT ACCOUNTS</B></H3>
<P>
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.</P>
<H3>
<B>EXCHANGE PRIVILEGES</B></H3>
<P>
You may exchange Shares of the Fund into Shares of certain Federated Funds. To do
this, you must:</P>
<UL>
<LI>
ensure that the account registrations are identical;
<LI>
meet any minimum initial investment requirements; and
<LI>
receive a prospectus for the fund into which you wish to exchange.
</UL>
<P>
An exchange is treated as a redemption and a subsequent purchase, and is a taxable
transaction.</P>
<P>
<R></P>
<P>
The Fund may modify or terminate the exchange privilege at any time. The Fund's
management or 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.</P>
<P>
</R></P>
<H3>
<B>CHECKWRITING</B></H3>
<P>
<R></P>
<P>
You may request checks to redeem your Fund Shares. 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, including minimum
checkwriting requirements, contact your Edward D. Jones & Co. investment
professional.</P>
<P>
</R></P>
<H3>
<B>VISA ACCOUNT</B></H3>
<P>
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.</P>
<H3>
<B>ADDITIONAL CONDITIONS</B></H3>
<H3>
<B>Share Certificates</B></H3>
<P>
The Fund does not issue share certificates.</P>
<H2>
Account and Share Information</H2>
<H3>
<B>ACCOUNT ACTIVITY</B></H3>
<P>
You will receive monthly statements reporting all account activity, including
dividends and capital gains paid.</P>
<H3>
<B>DIVIDENDS AND CAPITAL GAINS</B></H3>
<P>
<R></P>
<P>
The Fund declares any dividends daily and pays them monthly to shareholders. If you
purchase Shares by wire, you begin earning dividends on the second business day after
your wire is received. If you purchase Shares by check, you begin earning dividends
on the third business day after your check is received.</P>
<P>
</R></P>
<P>
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.</P>
<H3>
<B>ACCOUNTS WITH LOW BALANCES</B></H3>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<H3>
<B>TAX INFORMATION</B></H3>
<P>
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.</P>
<P>
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.</P>
<H2>
Who Manages the Fund?</H2>
<P>
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.</P>
<P>
<R></P>
<P>
The Adviser and other subsidiaries of Federated advise approximately 176 mutual funds
and separate accounts, which totaled approximately $125 billion in assets as of
December 31, 1999. 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.</P>
<P>
</R></P>
<H3>
<B>ADVISORY FEES</B></H3>
<P>
The Adviser receives an annual investment advisory fee based on the Fund's average
daily net assets as shown in the chart below.</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Average Daily Net Assets</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Advisory Fee as<BR>
Percentage of Average<BR>
Daily Net Assets</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
First $500 million</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.500%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Second $500 million</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.475%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Third $500 million</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.450%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Fourth $500 million</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.425%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Over $2 billion</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
0.400%</P>
</TD>
</TR>
</TABLE>
<P>
<B><R></B></P>
<H2>
Financial Information</H2>
<P>
</R></P>
<H3>
<B>FINANCIAL HIGHLIGHTS</B></H3>
<P>
<R></P>
<P>
The following Financial Highlights will help you understand the Fund's financial
performance for its past five fiscal years. Some of the information is presented on a
per share basis. Total returns represent the rate an investor would have earned (or
lost) on an investment in the Fund, assuming reinvestment of any dividends and
capital gains.</P>
<P>
</R></P>
<P>
<R></P>
<P>
This information has been audited by Ernst & Young LLP, whose report, along with
the Fund's audited financial statements, is included in this Prospectus.</P>
<P>
</R></P>
<H2>
Financial Highlights</H2>
<P>
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)</P>
<P>
</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Year Ended February 28 or 29</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1998</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1997</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1996</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Net Asset Value, Beginning of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Income From Investment Operations:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.04</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.04</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Less Distributions:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Distributions from net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(0.04</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(0.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(0.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(0.04</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(0.05</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Net Asset Value, End of Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>$ 1.00</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Total Return<SUP>1</SUP></B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.43</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.63</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.84</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.59</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>5.06</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Ratios to Average Net Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Expenses </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.94</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.87</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.89</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.89</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0.96</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net investment income </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.35</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.50</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.72</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.49</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4.92</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
%</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Supplemental Data:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net assets, end of period (000 omitted)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$8,761,300</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=RIGHT> $7,671,750</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=RIGHT> $5,805,434</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=RIGHT> $4,760,020</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=RIGHT> $3,951,155</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="16">
<P>
<HR>
</TD>
</TR>
</TABLE>
<P>
1 Based on net asset value, which does not reflect the sales charge or contingent
deferred sales charge, if applicable.</P>
<P>
See Notes which are an integral part of the Financial Statements</P>
<H2>
Portfolio of Investments</H2>
<P>
FEBRUARY 29, 2000</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=LEFT><B>Principal<BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
GOVERNMENT AGENCIES--51.8%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>40,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Farm Credit Bank Discount Notes, 5.940%, 1/23/2001</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>37,835,200</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>50,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Farm Credit Bank Notes, 5.400%, 7/3/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>49,974,391</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>289,200,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Home Loan Bank Discount Notes, 5.490% - 5.950%, 3/1/2000 - 1/12/2001</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>286,872,333</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>191,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Home Loan Bank Floating Rate Notes, 5.685% - 5.874%, 3/15/2000 - 5/12/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>190,910,867</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>428,230,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Home Loan Bank Notes, 4.970% - 6.580%, 3/8/2000 - 2/16/2001</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>428,075,860</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>614,558,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Home Loan Mortgage Corp. Discount Notes, 5.218% - 6.160%, 3/16/2000 -
2/1/2001</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>607,833,104</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>412,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal Home Loan Mortgage Corp. Floating Rate Notes, 5.670% - 5.710%, 3/17/2000 -
3/22/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>411,891,947</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>769,383,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>1</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal National Mortgage Association Discount Notes, 5.210% - 5.880%, 3/2/2000 -
6/22/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>763,839,421</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>984,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal National Mortgage Association Floating Rate Notes, 5.675% - 5.970%, 3/1/2000
- - 6/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>983,598,730</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>220,500,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Federal National Mortgage Association Notes, 4.980% - 6.445%, 3/10/2000 -
2/23/2001</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>220,024,099</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>528,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>2</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Student Loan Marketing Association Floating Rate Notes, 5.720% - 6.531%, 3/1/2000 --
3/7/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>527,807,503</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>30,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Student Loan Marketing Association Notes, 6.045%, 11/3/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>29,988,055</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
TOTAL GOVERNMENT AGENCIES </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4,538,651,510</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
REPURCHASE AGREEMENTS--47.6%<SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>141,330,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
ABN AMRO, Inc., 5.860%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>141,330,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>800,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Bank of America, 5.850%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>800,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>135,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Barclays Capital, Inc., 5.770%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>135,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>220,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Bear, Stearns and Co., 5.860%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>220,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>100,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Countrywide Securities Corp., 5.860%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>100,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>450,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Credit Suisse First Boston, Inc., 5.750%, dated 2/9/2000, due 3/13/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>450,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>100,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Deutsche Bank Financial, Inc., 5.750%, dated 2/9/2000, due 3/13/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>100,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>12,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Deutsche Bank Financial, Inc., 5.770%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>12,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>236,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Goldman Sachs Group, LP, 5.760%, dated 2/14/2000, due 3/16/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>236,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>232,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Goldman Sachs Group, LP, 5.770%, dated 2/23/2000, due 3/22/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>232,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>265,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT><SUP>4</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Lehman Brothers, Inc., 5.760%, dated 2/9/2000, due 3/10/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>265,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>360,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Paribas Corp., 5.850%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>360,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>180,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Prudential Securities, Inc., 5.860%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>180,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=LEFT><B>Principal<BR>
Amount</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="2">
<P>
<P ALIGN=RIGHT><B>Value</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
REPURCHASE AGREEMENTS--continued<SUP>3</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>155,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Salomon Brothers, Inc., 5.860%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>155,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>50,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Toronto Dominion Securities (USA), Inc., 5.780%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>50,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>390,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Warburg Dillon Reed LLC, 5.770%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>390,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>295,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Warburg Dillon Reed LLC, 5.860%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>295,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>50,000,000</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Westdeutsche Landesbank Girozentrale, 5.750%, dated 2/29/2000, due 3/1/2000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>50,000,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
TOTAL REPURCHASE AGREEMENTS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4,171,330,000</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
TOTAL INVESTMENTS (AT AMORTIZED COST)<SUP>5</SUP></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>8,709,981,510</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
</TABLE>
<P>
1 Discount rate at time of purchase.</P>
<P>
2 Floating rate note with current rate and next reset date shown.</P>
<P>
3 The repurchase agreements are fully collateralized by U.S. Treasury or
government 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.</P>
<P>
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.</P>
<P>
5 Also represents cost for federal tax purposes.</P>
<P>
Note: The categories of investments are shown as a percentage of net assets
($8,761,300,212) at February 29, 2000.</P>
<P>
See Notes which are an integral part of the Financial Statements</P>
<H2>
Statement of Assets and Liabilities</H2>
<P>
FEBRUARY 29, 2000</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Investments in securities</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$ </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4,538,651,510</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Investments in repurchase agreements</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>4,171,330,000</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Total investments in securities, at amortized cost and value</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>8,709,981,510</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Cash</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>10,073,592</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Income receivable</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>20,944,487</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Receivable for shares sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>181,524,992</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
TOTAL ASSETS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>8,922,524,581</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Liabilities:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Payable for investments purchased</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>110,911,200</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Payable for shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>36,462,205</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Income distribution payable</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>8,408,639</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Accrued expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>5,442,325</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
TOTAL LIABILITIES</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>161,224,369</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net assets for 8,761,300,212 shares outstanding</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>8,761,300,212</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Net Asset Value, Offering Price and Redemption Proceeds Per Share:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
$8,761,300,212 ÷ 8,761,300,212 shares outstanding</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$1.00</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
</TABLE>
<P>
See Notes which are an integral part of the Financial Statements</P>
<H2>
Statement of Operations</H2>
<P>
YEAR ENDED FEBRUARY 29, 2000</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Investment Income:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Interest</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>435,052,383</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Expenses:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Investment adviser fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>34,194,313</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Administrative personnel and services fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>6,207,980</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Custodian fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>245,745</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Transfer and dividend disbursing agent fees and expenses</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>11,868,520</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Directors'/Trustees' fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>59,655</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Auditing fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>18,631</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Legal fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>29,752</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Portfolio accounting fees</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>570,128</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Shareholder services fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>20,590,196</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Share registration costs</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>815,339</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Printing and postage</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>2,504,831</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Insurance premiums</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>15,379</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Miscellaneous</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>57,072</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
TOTAL EXPENSES</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>77,177,541</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>357,874,842</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
</TABLE>
<P>
See Notes which are an integral part of the Financial Statements</P>
<H2>
Statement of Changes in Net Assets</H2>
<P>
</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Year Ended February 28 or 29</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Increase (Decrease) in Net Assets</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Operations:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>357,874,842</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>298,512,837</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Distributions to Shareholders:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Distributions from net investment income</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(357,874,842</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(298,512,837</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Share Transactions:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Proceeds from sale of shares</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>36,477,258,796</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>27,783,437,416</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Net asset value of shares issued to shareholders in payment of distributions
declared</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>349,424,325</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>293,550,669</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Cost of shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(35,737,132,412</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(26,210,672,944</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,089,550,709</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,866,315,141</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Change in net assets</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,089,550,709</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,866,315,141</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B>Net Assets:</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Beginning of period</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>7,671,749,503</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>5,805,434,362</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
End of period</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>8,761,300,212</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>7,671,749,503</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="9">
<P>
<HR>
</TD>
</TR>
</TABLE>
<P>
See Notes which are an integral part of the Financial Statements</P>
<H2>
Notes to Financial Statements</H2>
<P>
FEBRUARY 29, 2000</P>
<H3>
<B>ORGANIZATION</B></H3>
<P>
Edward D. Jones & Co. Daily Passport Cash Trust (the "Fund") 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 Fund is stability of principal and current income
consistent with stability of principal.</P>
<H3>
<B>SIGNIFICANT ACCOUNTING POLICIES</B></H3>
<P>
The following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements. These policies are in
conformity with generally accepted accounting principles.</P>
<H3>
<B>Investment Valuations</B></H3>
<P>
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.</P>
<H3>
<B>Repurchase Agreements</B></H3>
<P>
It is the policy of the Fund 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 Fund 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.</P>
<P>
The Fund will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker/dealers, which are deemed by the Fund'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 Fund could receive less than the repurchase price on the
sale of collateral securities. The Fund, along with other affiliated investment
companies, may utilize a joint trading account for the purpose of entering into one
or more repurchase agreements.</P>
<H3>
<B>Investment Income, Expenses and Distributions</B></H3>
<P>
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any, are
recorded at fair value.</P>
<H3>
<B>Federal Taxes</B></H3>
<P>
It is the Fund'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 provision for federal tax is
necessary.</P>
<H3>
<B>When-Issued and Delayed Delivery Transactions</B></H3>
<P>
The Fund may engage in when-issued or delayed delivery transactions. The Fund 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. Losses may occur
on these transactions due to the changes in market conditions or the failure of
counterparties to perform under the contract.</P>
<H3>
<B>Use of Estimates</B></H3>
<P>
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.</P>
<H3>
<B>Other</B></H3>
<P>
Investment transactions are accounted for on a trade date basis.</P>
<H3>
<B>SHARES OF BENEFICIAL INTEREST</B></H3>
<P>
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 29,
2000, capital paid-in aggregated $8,761,300,212. Transactions in shares were as
follows:</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Year Ended February 28 or 29</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B> </B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Shares sold</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>36,477,258,796</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>27,783,437,416</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Shares issued to shareholders in payment of distributions declared</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>349,424,325</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>293,550,669</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Shares redeemed</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(35,737,132,412</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>(26,210,672,944</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
)</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
NET CHANGE RESULTING FROM SHARE TRANSACTIONS</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,089,550,709</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>1,866,315,141</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT> </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
</TABLE>
<H3>
<B>INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES</B></H3>
<H3>
<B>Investment Adviser Fee</B></H3>
<P>
Passport Research Ltd., the Fund's investment adviser (the "Adviser"),
receives for its services an annual investment adviser fee based on average daily net
assets of the Fund as follows: 0.500% on the first $500 million; 0.475% on the second
$500 million; 0.450% on the third $500 million; 0.425% on the fourth $500 million;
and 0.400% on more than $2 billion. The Adviser will waive the amount that normal
operating expenses of the Fund (including the investment adviser 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 Fund, 2.0% per year
on the next $70 million of average daily net assets of the Fund, and 1.5% per year on
any additional assets.</P>
<H3>
<B>Adviser's Background</B></H3>
<P>
Passport Research, Ltd. is a Pennsylvania limited partnership organized in 1981.
Federated Investment Management Company is the general partner of the Adviser and has
a 50.5% interest in the Adviser. Federated Investment Management Company is owned by
Federated Investors, Inc. Edward D. Jones & Co. L.P. is the limited partner of
the Adviser and has a 49.5% interest in the Adviser.</P>
<H3>
<B>Administrative Fee</B></H3>
<P>
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee paid
to FServ is based on a scale that ranges from 0.15% to 0.075% of the average
aggregate daily net assets of all funds advised by subsidiaries of Federated
Investors, Inc. subject to a $125,000 minimum per portfolio and $30,000 per each
additional class.</P>
<H3>
<B>Shareholder Services Fee</B></H3>
<P>
Under the terms of a Shareholder Services Agreement with Federated Shareholders
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average
daily net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts.</P>
<H3>
<B>Transfer and Dividend Disbursing Agent Fees and Expenses</B></H3>
<P>
Edward D. Jones & Co. L.P. serves as the transfer and dividend disbursing agent
to the Fund. The fee paid to Edward D. Jones & Co. L.P. is based on the size,
type, and number of accounts and transactions made by shareholders.</P>
<H3>
<B>Portfolio Accounting Fees</B></H3>
<P>
FServ maintains the Fund's accounting records for which it receives a fee. The fee is
based on the level of the Fund's average daily net assets for the period, plus
out-of-pocket expenses.</P>
<H3>
<B>General</B></H3>
<P>
Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.</P>
<H2>
Report of Ernst & Young LLP, Independent Auditors</H2>
<P>
TO THE TRUSTEES AND SHAREHOLDERS OF<BR>
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST:</P>
<P>
We have audited the accompanying statement of assets and liabilities, including the
portfolio of investments, of Edward D. Jones & Co. Daily Passport Cash Trust (the
"Fund"), as of February 29, 2000, and the related statement of operations
for the year then ended, 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 Fund's management. Our responsibility is to express an opinion
on these financial statements and financial highlights based on our audits.</P>
<P>
We conducted our audits in accordance with auditing standards generally accepted in
the United States. 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 29, 2000, 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.</P>
<P>
In our opinion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of the Edward D.
Jones & Co. Daily Passport Cash Trust at February 29, 2000, and the results of
its operations for the year then ended, the changes in its 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, in conformity with accounting principles generally
accepted in the United States.</P>
<P>
</P>
<P>
<B>Ernst & Young LLP</B></P>
<P>
Boston, Massachusetts<BR>
April 18, 2000</P>
<P>
<B>EdwardJones</B> </P>
<H2>
Edward D. Jones & Co. Daily Passport Cash Trust</H2>
<P>
PROSPECTUS</P>
<P>
<R></P>
<P>
MAY 31, 2000</P>
<P>
</R></P>
<P>
<R></P>
<P>
A Statement of Additional Information (SAI) dated May 31, 2000, is incorporated by
reference into this prospectus. Additional information about the Fund and its
investments is contained in the Fund's SAI and Annual and Semi-Annual Reports to
shareholders as they become available. The Annual Report discusses market conditions
and investment strategies that significantly affected the Fund's performance during
its last fiscal year. To obtain the SAI, Annual Report, Semi-Annual Report and other
information without charge, and make inquiries, call your investment professional or
the Fund at 1-800-341-7400.</P>
<P>
</R></P>
<P>
<B><R></B></P>
<P>
You can obtain information about the Fund (including the SAI) by writing to or
visiting the Public Reference Room in Washington, DC. You may also access fund
information from the EDGAR Database on the SEC's Internet site at http://www.sec.gov.
You can purchase copies of this information by contacting the SEC by email at
publicinfo@sec.gov or by writing to the SEC's Public Reference Section,
Washington, DC 20549-0102. Call 1-202-942-8090 for information on the Public
Reference Room's operations and copying fees.</P>
<P>
</R></P>
<P>
A Passport to Cash Management<BR><BR>Serving Individual Investors Since
1871<BR><BR>Edward Jones<BR>201 Progress Parkway<BR>Maryland Heights, Missouri
63043<BR>1-800-331-2451<BR>Distributor<BR><BR>EdwardJones </P>
<P>
Investment Company Act File No. 811-2993<BR>
Cusip 480023100</P>
<P>
<R></P>
<P>
8032801A (5/00)</P>
<P>
</R></P>
<P>
</P>
<P>
<B>STATEMENT OF ADDITIONAL INFORMATION</B> </P>
<H2>
Edward D. Jones & Co. Daily Passport Cash Trust</H2>
<P>
</P>
<H3>
</H3>
<P>
<R></P>
<P>
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 May 31, 2000. Obtain the prospectus without charge by calling
1-800-341-7400.</P>
<P>
</R></P>
<P>
<P>
<R></P>
<P>
MAY 31, 2000</P>
<P>
</R></P>
<P>
<R></P>
<P>
<B>Federated<BR>World-Class Investment Manager</B><BR>Edward D. Jones & Co. Daily
Passport Cash Trust<BR>Federated Investors Funds<BR>5800 Corporate
Drive<BR>Pittsburgh, PA
15237-7000<BR>1-800-341-7400<BR><B>www.federatedinvestors.com</B><BR>Federated
Securities Corp., Distributor </P>
<P>
8032801B (5/00)</P>
<P>
</R></P>
<H3>
<B>CONTENTS</B></H3>
<P>
How is the Fund Organized? 1</P>
<P>
Securities in Which the Fund Invests 1</P>
<P>
<R></P>
<P>
How is the Fund Sold? 5</P>
<P>
</R></P>
<P>
<R></P>
<P>
Redemption in Kind 6</P>
<P>
</R></P>
<P>
<R></P>
<P>
Massachusetts Partnership Law 6</P>
<P>
</R></P>
<P>
<R></P>
<P>
Account and Share Information 6</P>
<P>
</R></P>
<P>
<R></P>
<P>
Tax Information 6</P>
<P>
</R></P>
<P>
<R></P>
<P>
Who Manages and Provides Services to the Fund? 7</P>
<P>
</R></P>
<P>
<R></P>
<P>
How Does the Fund Measure Performance? 10</P>
<P>
</R></P>
<P>
<R></P>
<P>
Who is Federated Investors, Inc.? 11</P>
<P>
</R></P>
<P>
<R></P>
<P>
Addresses 13</P>
<P>
</R></P>
<H2>
How is the Fund Organized?</H2>
<P>
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).</P>
<H2>
Securities in Which the Fund Invests</H2>
<P>
In pursuing its investment strategy, the Fund may invest in the following securities
for any purpose that is consistent with its investment objective.</P>
<P>
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).</P>
<H3>
<B>SECURITIES DESCRIPTIONS AND TECHNIQUES</B></H3>
<H3>
<B>Fixed Income Securities</B></H3>
<P>
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.</P>
<P>
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.</P>
<P>
The following describes the types of fixed income securities in which the Fund
invests.</P>
<H3>
<B>Corporate Debt Securities</B></H3>
<P>
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.</P>
<H3>
<B>Commercial Paper</B></H3>
<P>
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.</P>
<H3>
<B>Demand Instruments</B></H3>
<P>
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.</P>
<H3>
<B>Bank Instruments</B></H3>
<P>
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.</P>
<H3>
<B>Asset Backed Securities</B></H3>
<P>
<R></P>
<P>
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.
Asset backed securities have prepayment risks.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Zero Coupon Securities</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Zero coupon securities do not pay interest or principal until final maturity unlike
debt securities that provide periodic payments of interest (referred to as a coupon
payment). Investors buy zero coupon securities at a price below the amount payable at
maturity. The difference between the purchase price and the amount paid at maturity
represents interest on the zero coupon security. Investors must wait until maturity
to receive interest and principal, which increases the interest rate and credit risk
of a zero coupon security.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Insurance Contracts</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Insurance contracts include guaranteed investment contracts, funding agreements and
annuities. The Fund treats these contracts as fixed income securities.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Foreign Securities</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Foreign securities are securities of issuers based outside the United States. The
Fund considers an issuer to be based outside the United States if:</P>
<P>
</R></P>
<P>
<R></P>
<UL>
<LI>
it is organized under the laws of, or has a principal office located in another
country;
</UL>
<P>
</R></P>
<P>
<R></P>
<UL>
<LI>
the principal trading market for its securities is in another country; or
</UL>
<P>
</R></P>
<P>
<R></P>
<UL>
<LI>
it (or its subsidiaries) derived in its most current fiscal year at least 50% of its
total assets, capitalization, gross revenue or profit from goods produced, services
performed, or sales made in another country.
</UL>
<P>
</R></P>
<P>
<R></P>
<P>
Along with the risks normally associated with domestic securities of the same type,
foreign securities are subject to risks of foreign investing.</P>
<P>
</R></P>
<H3>
<B>Credit Enhancement</B></H3>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>SPECIAL TRANSACTIONS</B></H3>
<P>
<R></P>
<H3>
<B>Inter-fund Borrowing and Lending Arrangements</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
The Securities and Exchange Commission (SEC) has granted an exemption that permits
the Fund and all other funds advised by subsidiaries of Federated Investors, Inc.
(Federated funds) to lend and borrow money for certain temporary purposes directly to
and from other Federated funds. Participation in this inter-fund lending program is
voluntary for both borrowing and lending funds, and an inter-fund loan is only made
if it benefits each participating fund. Federated administers the program according
to procedures approved by the Board and the Board monitors the operation of the
program. Any inter-fund loan must comply with certain conditions set out in the
exemption, which are designed to assure fairness and protect all participating
funds.</P>
<P>
</R></P>
<P>
<R></P>
<P>
For example, inter-fund lending is permitted only (a) to meet shareholder redemption
requests and (b) to meet commitments arising from "failed" trades. All
inter-fund loans must be repaid in seven days or less. The Fund's participation in
this program must be consistent with its investment policies and limitations, and
must meet certain percentage tests. Inter-fund loans may be made only when the rate
of interest to be charged is more attractive to the lending fund than
market-competitive rates on overnight repurchase agreements (the Repo Rate) and more
attractive to the borrowing fund than the rate of interest that would be charged by
an unaffiliated bank for short-term borrowings (the Bank Loan Rate), as determined by
the Board. The interest rate imposed on inter-fund loans is the average of the Repo
Rate and the Bank Loan Rate.</P>
<P>
</R></P>
<H3>
<B>Repurchase Agreements</B></H3>
<P>
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.</P>
<P>
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.</P>
<P>
Repurchase agreements are subject to credit risks.</P>
<H3>
<B>Delayed Delivery Transactions</B></H3>
<P>
<R></P>
<P>
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. The Fund does not
intend to engage in deliver transactions to an extent that would cause the
segregation of more than 20% of the total value of its assets.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Reverse Repurchase Agreements</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Reverse repurchase agreements are repurchase agreements in which the Fund is the
seller (rather than the buyer) of the securities, and agrees to repurchase them at an
agreed upon time and price. A reverse repurchase agreement may be viewed as a type of
borrowing by the Fund. Reverse repurchase agreements are subject to credit risks. In
addition, reverse repurchase agreements create leverage risks because the Fund must
repurchase the underlying security at a higher price, regardless of the market value
of the security at the time of repurchase.</P>
<P>
</R></P>
<H3>
<B>Asset Coverage</B></H3>
<P>
<R></P>
<P>
In order to secure its obligations in connection with special transactions, the Fund
will either own the underlying assets 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 terminating a special transaction. This may cause the Fund to
miss favorable trading opportunities or to realize losses on special transactions.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Investing in Securities of Other Investment Companies</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
The Fund may invest its assets in securities of other investment companies, including
the securities of affiliated money market funds, as an efficient means of carrying
out its investment policies and managing its uninvested cash.</P>
<P>
</R></P>
<H3>
<B>INVESTMENT RATINGS</B></H3>
<P>
<R></P>
<P>
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."</P>
<P>
</R></P>
<H3>
<B>INVESTMENT RISKS</B></H3>
<P>
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.</P>
<H3>
<B>Credit Risks</B></H3>
<P>
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.</P>
<P>
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.</P>
<P>
<P>
<R></P>
<P>
Fixed income securities generally compensate for greater credit risk by paying
interest at a higher rate. The difference between the yield of a security and the
yield of a U.S. Treasury security with a comparable maturity (the spread) measures
the additional interest paid for risk. Spreads may increase generally in response to
adverse economic or market conditions. A security's spread may also increase if the
security's rating is lowered, or the security is perceived to have an increased
credit risk. An increase in the spread will cause the price of the security to
decline.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Leverage Risks</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Leverage risk is created when an investment exposes the Fund to a level of risk that
exceeds the amount invested. Changes in the value of such an investment magnify the
Fund's risk of loss and potential for gain.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Risks of Foreign Investing</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Foreign securities pose additional risks because foreign economic or political
conditions may be less favorable than those of the U.S. Securities in foreign markets
may also be subject to taxation policies that reduce returns for U.S. investors.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>Prepayment Risks</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
Unlike traditional fixed income securities, which pay a fixed rate of interest until
maturity (when the entire principal amount is due), payments on asset backed
securities include both interest and a partial payment of principal. Partial payment
of principal may be comprised of scheduled principal payments as well as unscheduled
payments from voluntary prepayment, refinancing or foreclosure of the underlying
loans. If the Fund receives unscheduled prepayments, it may have to reinvest the
proceeds in other fixed income securities with lower interest rates, higher credit
risks or other less favorable characteristics.</P>
<P>
</R></P>
<P>
<R></P>
<H3>
<B>FUNDAMENTAL INVESTMENT OBJECTIVE AND POLICIES</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
The investment objective of the Fund is stability of principal and current income
consistent with stability of principal. The investment objective may not be changed
by the Fund's Trustees without shareholder approval.</P>
<P>
</R></P>
<P>
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.</P>
<P>
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.</P>
<P>
<R></P>
<P>
Commercial paper investments will be limited to commercial paper rated A-1 or A-2 by
S&P, Prime 1 or Prime 2 by Moody's or F-1 or F-2 by Fitch. 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.</P>
<P>
</R></P>
<P>
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.</P>
<P>
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.</P>
<P>
<R></P>
<P>
The Fund may attempt to increase yield by trading portfolio securities to take
advantage of short-term market variations.</P>
<P>
</R></P>
<H3>
<B>INVESTMENT LIMITATIONS</B></H3>
<H3>
<B>Selling Short and Buying on Margin</B></H3>
<P>
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.</P>
<H3>
<B>Borrowing Money</B></H3>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>Investing in Commodities or Real Estate</B></H3>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<H3>
<B>Pledging Assets</B></H3>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<H3>
<B>Underwriting</B></H3>
<P>
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.</P>
<H3>
<B>Lending Cash or Securities</B></H3>
<P>
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.</P>
<H3>
<B>Diversification of Investments</B></H3>
<P>
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.</P>
<H3>
<B>Concentration of Investments</B></H3>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>Issuing Senior Securities</B></H3>
<P>
The Fund will not issue senior securities, except as permitted by the investment
objective and policies and investment limitations of the Fund.</P>
<P>
<R></P>
<P>
<B><B>The above limitations cannot be changed unless authorized by the Board and by
the </B><B>"vote of a majority of its outstanding voting securities," as
defined by the Investment </B><B>Company Act of 1940 (1940 Act)</B><B>. The following
limitations, however, may be changed by the Board without shareholder approval.
Shareholders will be notified before </B><B>any material change in these limitations
becomes effective.</B></B></P>
<P>
</R></P>
<H3>
<B>Acquiring Securities</B></H3>
<P>
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.</P>
<H3>
<B>Investing in Restricted Securities</B></H3>
<P>
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.</P>
<P>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
<R></P>
<P>
For purposes of the diversification limitation, the Fund considers certificates of
deposit and demand and time deposits issued 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." 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 limitation.</P>
<P>
</R></P>
<H3>
<B>REGULATORY COMPLIANCE</B></H3>
<P>
<R></P>
<P>
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
SAI, in order to comply with applicable laws and regulations, including the
provisions of and regulations under the 1940 Act. In particular, the Fund will comply
with the various requirements of Rule 2a-7 (the Rule), which regulates money market
mutual funds. The Fund will determine the effective maturity of its investments
according to the Rule. The Fund may change these operational policies to reflect
changes in the laws and regulations without the approval of its shareholders.</P>
<P>
</R></P>
<H3>
<B>DETERMINING MARKET VALUE OF SECURITIES</B></H3>
<P>
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.</P>
<P>
<R></P>
<P>
The Fund's use of the amortized cost method of valuing portfolio instruments depends
on its compliance with certain conditions in the Rule. 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 it considers 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.</P>
<P>
</R></P>
<H2>
How is the Fund Sold?</H2>
<P>
<R></P>
<P>
Under the Distributor's Contract with the Fund, the Distributor (Federated Securities
Corp.) offers Shares on a continuous, best-efforts basis.</P>
<P>
</R></P>
<H3>
<B>SHAREHOLDER SERVICES</B></H3>
<P>
<R></P>
<P>
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 may select others to
perform these services for their customers and pay them fees.</P>
<P>
</R></P>
<H2>
Redemption in Kind</H2>
<P>
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.</P>
<P>
<R></P>
<P>
Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, 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.</P>
<P>
</R></P>
<P>
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.</P>
<P>
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.</P>
<H2>
Massachusetts Partnership Law</H2>
<P>
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.</P>
<P>
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.</P>
<H2>
Account and Share Information</H2>
<H3>
<B>VOTING RIGHTS</B></H3>
<P>
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.</P>
<P>
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.</P>
<P>
<R></P>
<P>
As of May 15, 2000, there were no shareholders who owned of record, beneficially, or
both, 5% or more of outstanding Shares.</P>
<P>
</R></P>
<H2>
Tax Information</H2>
<H3>
<B>FEDERAL INCOME TAX</B></H3>
<P>
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.</P>
<H2>
Who Manages and Provides Services to the Fund?</H2>
<H3>
<B>BOARD OF TRUSTEES</B></H3>
<P>
<R></P>
<P>
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 43 investment
companies, whose investment advisers are affiliated with the Fund's Adviser.</P>
<P>
</R></P>
<P>
<R></P>
<P>
As of May 15, 2000, the Fund's Board and Officers as a group owned less than 1% of
the Fund's outstanding Shares.</P>
<P>
</R></P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Name<BR>
Birth Date<BR>
Address<BR>
Position With Fund</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Principal Occupations <BR>
for Past Five Years</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Aggregate<BR>
Compensation<BR>
From Fund</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Total<BR>
Compensation <BR>
From Fund and <BR>
Fund Complex</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>John F. Donahue*†#</B></B><BR>
Birth Date: July 28, 1924<BR>
Federated Investors Tower <BR>
1001 Liberty Avenue <BR>
Pittsburgh, PA<BR>
CHAIRMAN AND TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Chief Executive Officer and Director or Trustee of the Federated Fund Complex;
Chairman and Director, Federated Investors, Inc.; Chairman, Federated Investment
Management Company, Federated Global Investment Management Corp. and Passport
Research, Ltd. ; formerly: Trustee, Federated Investment Management Company and
Chairman and Director, Federated Investment Counseling.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund and <BR>
43 other investment <BR>
companies in the <BR>
Fund Complex </P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Thomas G. Bigley</B></B><BR>
Birth Date: February 3, 1934<BR>
15 Old Timber Trail<BR>
Pittsburgh, PA<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; Director, Member of Executive
Committee, Children's Hospital of Pittsburgh; Director, Robroy Industries, Inc.
(coated steel conduits/computer storage equipment); formerly: Senior Partner, Ernst
& Young LLP; Director, MED 3000 Group, Inc. (physician practice management);
Director, Member of Executive Committee, University of Pittsburgh.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,183.93</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$116,760.63 for the Fund <BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>John T. Conroy, Jr.</B></B><BR>
Birth Date: June 23, 1937<BR>
Grubb & Ellis/Investment Properties<BR>
Corporation<BR>
3201 Tamiami Trail North <BR>
Naples, FL<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; President, Investment Properties
Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors;
Partner or Trustee in private real estate ventures in Southwest Florida; formerly:
President, Naples Property Management, Inc. and Northgate Village Development
Corporation.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,622.72</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$128,455.37 for the Fund <BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Nicholas P. Constantakis</B></B><BR>
Birth Date: September 3, 1939<BR>
175 Woodshire Drive<BR>
Pittsburgh, PA<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; Director, Michael Baker
Corporation (engineering, construction, operations and technical services); formerly:
Partner, Andersen Worldwide SC.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,183.93</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$73,191.21 for the Fund <BR>
and 37 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>John F. Cunningham</B></B><BR>
Birth Date: March 5, 1943<BR>
353 El Brillo Way<BR>
Palm Beach, FL<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of some of the Federated Fund Complex; Chairman, President and
Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting);
Trustee Associate, Boston College; Director, Iperia Corp. (communications/software);
formerly: Director, Redgate Communications and EMC Corporation (computer storage
systems).<BR>
<BR>
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.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,019.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$93,190.48 for the Fund <BR>
and 37 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Lawrence D. Ellis, M.D.*</B></B><BR>
Birth Date: October 11, 1932<BR>
3471 Fifth Avenue <BR>
Suite 1111<BR>
Pittsburgh, PA<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; Professor of Medicine, University
of Pittsburgh; Medical Director, University of Pittsburgh Medical Center -- Downtown;
Hematologist, Oncologist and Internist, University of Pittsburgh Medical Center;
Member, National Board of Trustees, Leukemia Society of America.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,019.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$116,760.63 for the Fund <BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Peter E. Madden</B></B><BR>
Birth Date: March 16, 1942<BR>
One Royal Palm Way<BR>
100 Royal Palm Way<BR>
Palm Beach, FL<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; formerly: Representative,
Commonwealth of Massachusetts General Court; President, State Street Bank and Trust
Company and State Street Corporation. <BR>
<BR>
Previous Positions: Director, VISA USA and VISA International; Chairman and Director,
Massachusetts Bankers Association; Director, Depository Trust Corporation; Director,
The Boston Stock Exchange.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$5,587.27</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$109,153.60 for the Fund <BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Name<BR>
Birth Date<BR>
Address<BR>
Position With Fund</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Principal Occupations <BR>
for Past Five Years</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Aggregate<BR>
Compensation<BR>
From Fund</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Total<BR>
Compensation <BR>
From Fund and <BR>
Fund Complex</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Charles F. Mansfield, Jr.</B></B><BR>
Birth Date: April 10, 1945<BR>
80 South Road<BR>
Westhampton Beach, NY<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of some of the Federated Fund Complex; Executive Vice President,
Legal and External Affairs, Dugan Valva Contess, Inc. (marketing, communications,
technology and consulting); formerly: Management Consultant.<BR>
<BR>
Previous Positions: Chief 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.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>$6,490.51</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$102,573.91 for the Fund <BR>
and 40 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>John E. Murray, Jr., J.D., S.J.D.#</B></B><BR>
Birth Date: December 20, 1932<BR>
President, Duquesne University<BR>
Pittsburgh, PA<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; President, Law Professor, Duquesne
University; Consulting Partner, Mollica & Murray; Director, Michael Baker Corp.
(engineering, construction, operations and technical services).<BR>
<BR>
Previous Positions: Dean and Professor of Law, University of Pittsburgh School of
Law; Dean and Professor of Law, Villanova University School of Law.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,458.58</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$128,455.37 for the Fund <BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Marjorie P. Smuts</B></B><BR>
Birth Date: June 21, 1935<BR>
4905 Bayard Street<BR>
Pittsburgh, PA<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of the Federated Fund Complex; Public
Relations/Marketing/Conference Planning.<BR>
<BR>
Previous Positions: National Spokesperson, Aluminum Company of America; television
producer; business owner.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,019.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$116,760.63 for the Fund<BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>John S. Walsh</B></B><BR>
Birth Date: November 28, 1957<BR>
2007 Sherwood Drive<BR>
Valparaiso, IN<BR>
TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Director or Trustee of some of the Federated Fund Complex; President and Director,
Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (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.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$6,019.79</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$94,536.85 for the Fund <BR>
and 39 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>J. Christopher Donahue†</B></B><BR>
Birth Date: April 11, 1949<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
EXECUTIVE VICE PRESIDENT<BR>
and TRUSTEE</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
President or Executive Vice President of the Federated Fund Complex; Director or
Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; President, Chief Executive
Officer and Trustee, Federated Investment Management Company; Trustee, Federated
Investment Counseling; President, Chief Executive Officer and Director, Federated
Global Investment Management Corp.; President and Chief Executive Officer, Passport
Research, Ltd.; Trustee, Federated Shareholder Services Company; Director, Federated
Services Company; formerly: President, Federated Investment Counseling.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund <BR>
and 30 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Edward C. Gonzales</B></B><BR>
Birth Date: October 22, 1930<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
EXECUTIVE VICE PRESIDENT</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
President, Executive Vice President and Treasurer of some of the Funds in the
Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Trustee, Federated
Administrative Services; formerly: Trustee or Director of some of the Funds in the
Federated Fund Complex; CEO and Chairman, Federated Administrative Services; Vice
President, Federated Investment Management Company, Federated Investment Counseling,
Federated Global Investment Management Corp. and Passport Research, Ltd.; Director
and Executive Vice President, Federated Securities Corp.; Director, Federated
Services Company; Trustee, Federated Shareholder Services Company.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund <BR>
and 42 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>John W. McGonigle</B></B><BR>
Birth Date: October 26, 1938<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
EXECUTIVE VICE PRESIDENT<BR>
and SECRETARY</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Executive Vice President and Secretary of the Federated Fund Complex; Executive Vice
President, Secretary and Director, Federated Investors, Inc.; formerly: Trustee,
Federated Investment Management Company and Federated Investment Counseling;
Director, Federated Global Investment Management Corp., Federated Services Company
and Federated Securities Corp.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund<BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Richard J. Thomas</B></B><BR>
Birth Date: June 17, 1954<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
TREASURER</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Treasurer of the Federated Fund Complex; Senior Vice President, Federated
Administrative Services; formerly: Vice President, Federated Administrative Services;
held various management positions within Funds Financial Services Division of
Federated Investors, Inc.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund <BR>
and 43 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Name<BR>
Birth Date<BR>
Address<BR>
Position With Fund</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Principal Occupations <BR>
for Past Five Years</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Aggregate<BR>
Compensation<BR>
From Fund</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Total<BR>
Compensation <BR>
From Fund and <BR>
Fund Complex</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Richard B. Fisher</B></B><BR>
Birth Date: May 17, 1923<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
PRESIDENT</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
President or Vice President of some of the Funds in the Federated Fund Complex; Vice
Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.; formerly:
Director or Trustee of some of the Funds in the Federated Fund Complex,; Executive
Vice President, Federated Investors, Inc. and Director and Chief Executive Officer,
Federated Securities Corp.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="TOP">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund <BR>
and 41 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>William D. Dawson, III</B></B><BR>
Birth Date: March 3, 1949<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
CHIEF INVESTMENT OFFICER</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Chief Investment Officer of this Fund and various other Funds in the Federated Fund
Complex; Executive Vice President, Federated Investment Counseling, Federated Global
Investment Management Corp., Federated Investment Management Company and Passport
Research, Ltd.; Director, Federated Global Investment Management Corp. and Federated
Investment Management Company; 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.</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund <BR>
and 27 other investment <BR>
companies in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
<B><B>Susan R. Hill</B></B><BR>
Birth Date: June 20, 1963<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA<BR>
VICE PRESIDENT</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
Susan R. Hill has been the Fund's Portfolio Manager since 1993. She is Vice President
of the Fund. Ms. Hill joined Federated in 1990 and has been a Portfolio Manager since
1993 and a Vice President of the Fund's Adviser since 1997. Ms. Hill was a Portfolio
Manager and an Assistant Vice President of the Adviser from 1994 until 1997. Ms. Hill
is a Chartered Financial Analyst and received an M.S. in Industrial Administration
from Carnegie Mellon University. </P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
$0 for the Fund <BR>
and 1 other investment <BR>
company in the <BR>
Fund Complex</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
</TR>
</TABLE>
<P>
<R></P>
<P>
* An asterisk denotes a Trustee who is deemed to be an interested person as
defined in the 1940 Act.</P>
<P>
</R></P>
<P>
<R></P>
<P>
# A pound sign denotes a Member of the Board's Executive Committee, which handles
the Board's responsibilities between its meetings.</P>
<P>
</R></P>
<P>
<R></P>
<P>
† Mr. Donahue is the father of J. Christopher Donahue, Executive Vice
President and Trustee of the Fund.</P>
<P>
</R></P>
<P>
<P>
<R></P>
<H3>
<B>INVESTMENT ADVISER</B></H3>
<P>
</R></P>
<P>
The Adviser conducts investment research and makes investment decisions for the
Fund.</P>
<P>
<R></P>
<P>
Passport Research, Ltd. is a Pennsylvania limited partnership. Its general partner is
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.</P>
<P>
</R></P>
<H3>
<B>Other Related Services</B></H3>
<P>
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.</P>
<P>
<R></P>
<H3>
<B>CODE OF ETHICS RESTRICTIONS ON PERSONAL TRADING</B></H3>
<P>
</R></P>
<P>
<R></P>
<P>
As required by SEC rules, the Fund, its Adviser and its Distributor have adopted
codes of ethics. These codes govern securities trading activities of investment
personnel, Fund Trustees and certain other employees. Although they do permit these
people to trade in securities, including those that the Fund could buy, they also
contain significant safeguards designed to protect the Fund and its shareholders from
abuses in this area, such as requirements to obtain prior approval for, and to
report, particular transactions.</P>
<P>
</R></P>
<H3>
<B>BROKERAGE TRANSACTIONS</B></H3>
<P>
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.</P>
<H3>
<B>Research Services</B></H3>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
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.</P>
<H3>
<B>ADMINISTRATOR</B></H3>
<P>
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:</P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Maximum<BR>
Administrative Fee</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>Average Aggregate Daily <BR>
Net Assets of the Federated Funds</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
0.150 of 1%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
on the first $250 million</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
0.125 of 1%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
on the next $250 million</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
0.100 of 1%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
on the next $250 million</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
0.075 of 1%</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
on assets in excess of $750 million</P>
</TD>
</TR>
</TABLE>
<P>
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.</P>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>CUSTODIAN</B></H3>
<P>
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.</P>
<H3>
<B>TRANSFER AGENT AND DIVIDEND DISBURSING AGENT</B></H3>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<H3>
<B>INDEPENDENT AUDITORS</B></H3>
<P>
<P>
<R></P>
<P>
The independent auditor for the Fund, Ernst & Young LLP plans and performs its
audit so that it may provide an opinion as to whether the Fund's financial statements
and financial highlights are free of material misstatement.</P>
<P>
</R></P>
<H3>
<B>FEES PAID BY THE FUND FOR SERVICES</B></H3>
<H3>
</H3>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>For the Year Ended February 28 or 29</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>2000</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1999</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT><B>1998</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Advisory Fee Earned</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$34,194,313</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$27,782,250</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>$21,839,967</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Advisory Fee Reduction</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Brokerage Commissions</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>0</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Administrative Fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>6,207,980</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>5,001,329</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>3,884,997</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Shareholder Services Fee</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>20,590,196</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>--</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=RIGHT>--</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM" ROWSPAN="1" COLSPAN="7">
<P>
<HR>
</TD>
</TR>
</TABLE>
<H2>
How Does the Fund Measure Performance?</H2>
<P>
<R></P>
<P>
The Fund may advertise Share performance by using the SEC's 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.</P>
<P>
</R></P>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
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.</P>
<H3>
<B>AVERAGE ANNUAL TOTAL RETURNS AND YIELD</B></H3>
<P>
<R></P>
<P>
Total returns are given for the one, five and ten-year periods ended February 29,
2000.</P>
<P>
</R></P>
<P>
<R></P>
<P>
Yield and Effective Yield are given for the 30-day period ended February 29, 2000.</P>
<P>
</R></P>
<P>
</P>
<TABLE CELLSPACING=0 CELLPADDING=1>
<TR>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B> </B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>7-Day Period</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>1 Year</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>5 Years</B></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P ALIGN=LEFT><B>10 Years</B></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Total Return</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.43%</R></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.71%</R></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.48%</R></P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Yield</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<R>4.89%</R></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P>
Effective Yield</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
<P>
<R>
5.01%</R></P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
</P>
</TD>
<TD VALIGN="BOTTOM">
<P>
NA</P>
</TD>
</TR>
</TABLE>
<H3>
<B>TOTAL RETURN</B></H3>
<P>
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.</P>
<P>
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.</P>
<P>
<R></P>
<H3>
<B>YIELD AND EFFECTIVE YIELD</B></H3>
<P>
</R></P>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>PERFORMANCE COMPARISONS</B></H3>
<P>
Advertising and sales literature may include:</P>
<P>
<R></P>
<UL>
<LI>
references to ratings, rankings and financial publications and/or performance
comparisons of Shares to certain indices;
</UL>
<P>
</R></P>
<UL>
<LI>
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;
</UL>
<P>
<R></P>
<UL>
<LI>
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 Fund; and
</UL>
<P>
</R></P>
<UL>
<LI>
information about the mutual fund industry from sources such as the Investment
Company Institute.
</UL>
<P>
<R></P>
<P>
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.</P>
<P>
</R></P>
<P>
The Fund may quote information from reliable sources regarding individual countries
and regions, world stock exchanges, and economic and demographic statistics.</P>
<P>
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:</P>
<H3>
<B>Lipper Analytical Services Inc.</B></H3>
<P>
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.</P>
<H2>
Who is Federated Investors, Inc.?</H2>
<P>
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.</P>
<P>
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.</P>
<H3>
<B>FEDERATED FUNDS OVERVIEW</B></H3>
<H3>
<B>Municipal Funds</B></H3>
<P>
<R></P>
<P>
In the municipal sector, as of December 31, 1999, Federated managed 12 bond funds
with approximately $2.0 billion in assets and 24 money market funds with
approximately $13.1 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.</P>
<P>
</R></P>
<H3>
<B>Equity Funds</B></H3>
<P>
<R></P>
<P>
In the equity sector, Federated has more than 29 years' experience. As of December
31, 1999, Federated managed 53 equity funds totaling approximately $18.3 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.</P>
<P>
</R></P>
<H3>
<B>Corporate Bond Funds</B></H3>
<P>
<R></P>
<P>
In the corporate bond sector, as of December 31, 1999, Federated managed 13 money
market funds and 29 bond funds with assets approximating $35.7 billion and $7.7
billion, respectively. Federated's corporate bond decision making--based on
intensive, diligent credit analysis--is backed by over 27 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.</P>
<P>
</R></P>
<H3>
<B>Government Funds</B></H3>
<P>
<R></P>
<P>
In the government sector, as of December 31, 1999, Federated managed 9 mortgage
backed, 11 government/agency and 16 government money market mutual funds, with assets
approximating $4.7 billion, $1.6 billion and $34.1 billion, respectively. Federated
trades approximately $450 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
$43.8 billion in government funds within these maturity ranges.</P>
<P>
</R></P>
<H3>
<B>Money Market Funds</B></H3>
<P>
<R></P>
<P>
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, 1999, Federated managed
more than $83.0 billion in assets across 54 money market funds, including 16
government, 13 prime, 24 municipal and 1 euro-denominated with assets approximating
$34.1 billion, $35.7 billion, $13.1 billion and $115 million, respectively.</P>
<P>
</R></P>
<P>
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.</P>
<H3>
<B>MUTUAL FUND MARKET</B></H3>
<P>
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.</P>
<H3>
<B>FEDERATED CLIENTS OVERVIEW</B></H3>
<P>
Federated distributes mutual funds through its subsidiaries for a variety of
investment purposes. Specific markets include:</P>
<H3>
<B>Institutional Clients</B></H3>
<P>
<R></P>
<P>
Federated meets the needs of approximately 1,160 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.</P>
<P>
</R></P>
<H3>
<B>Bank Marketing</B></H3>
<P>
<R></P>
<P>
Other institutional clients include more than 1,600 banks and trust organizations.
Virtually all of the trust divisions of the top 100 bank holding companies use
Federated Funds in their clients' portfolios. The marketing effort to trust clients
is headed by Timothy C. Pillion, Senior Vice President, Bank Marketing &
Sales.</P>
<P>
</R></P>
<H3>
<B>Broker/Dealers and Bank Broker/Dealer Subsidiaries</B></H3>
<P>
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.</P>
<H2>
Addresses</H2>
<H3>
<B>EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST</B></H3>
<P>
Federated Investors Funds<BR>
5800 Corporate Drive<BR>
Pittsburgh, PA 15237-7000</P>
<H3>
<B>Principal Distributor</B></H3>
<P>
<R></P>
<P>
Edward D. Jones & Co., L.P.<BR>
201 Progress Parkway<BR>
Maryland Heights, MO 63043</P>
<P>
</R></P>
<H3>
<B>Distributor</B></H3>
<P>
Federated Securities Corp.<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA 15222-3779</P>
<H3>
<B>Investment Adviser</B></H3>
<P>
Passport Research, Ltd.<BR>
Federated Investors Tower<BR>
1001 Liberty Avenue<BR>
Pittsburgh, PA 15222-3779</P>
<H3>
<B>Custodian</B></H3>
<P>
State Street Bank and Trust Company<BR>
P.O. Box 8600<BR>
Boston, MA 02266-8600</P>
<H3>
<B>Transfer Agent and Dividend Disbursing Agent</B></H3>
<P>
Edward D. Jones & Co., L.P.<BR>
201 Progress Parkway<BR>
Maryland Heights, MO 63043</P>
<H3>
<B>Independent Auditors</B></H3>
<P>
Ernst & Young LLP<BR>
200 Clarendon Street<BR>
Boston, MA 02116-5072</P>
<P>
</P>
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)
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)
(j) Conformed copy of Consent of Independent Auditors; + (k)
Not applicable; (l) Conformed copy of Initial Capital
Understanding; (15) (m) Not applicable; (n) Not applicable;
(o) (i) Conformed copy of Power of Attorney of the
Registrant; (+)
(ii) Conformed copy of Power of Attorney of
Charles F. Mansfield, Jr. a Trustee of
the Registrant; (+)
(iii) Conformed copy of Power of Attorney of
Nicholas P. Constantakis, a Trustee of the
Registrant; (+)
(iv) Conformed copy of Power of Attorney of John
F. Cunningham, a Trustee of the Registrant;(+)
(v) Conformed copy of Power of Attorney of John
S. Walsh, a Trustee of the Registrant; (+)
(vi) Conformed copy of Power of Attorney of
William D. Dawson, III, Chief Investment
Officer of the Registrant; (+)
(p) The Registrant hereby incorporates the conformed
copy of the Code of Ethics for Access Persons
from Item 23(p) of the Money Market Obligations Trust
Registration Statement on Form N-1A filed with the
Commission on February 25, 2000. (File Nos. 33-31602
and 811-5950).
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)
Item 26. Business and Other Connections of Investment Adviser:
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 Trustees of the investment adviser and, in
parentheses, their principal occupations are: Thomas R. Donahue, (Chief
Financial Officer, Federated Investors, Inc.), 1001 Liberty Avenue,
Pittsburgh, PA, 15222-3779 and 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
Jonathan C. Conley
Deborah A. Cunningham
Michael P. Donnelly
Linda A. Duessel
Mark E. Durbiano
James E. Grefenstette
Jeffrey A. Kozemchak
Sandra L. McInerney
Susan M. Nason
Mary Jo Ochson
Robert J. Ostrowski
Bernard A. Picchi
Peter Vutz
Vice Presidents: Todd A. Abraham
J. Scott Albrecht
Arthur J. Barry
Randall S. Bauer
G. Andrew Bonnewell
Micheal W. Casey
Robert E. Cauley
Alexandre de Bethmann
B. Anthony Delserone, Jr.
Donald T. Ellenberger
Eamonn G. Folan
Kathleen M. Foody-Malus
Thomas M. Franks
Marc Halperin
John W. Harris
Patricia L. Heagy
Susan R. Hill
Item 26. Business and Other Connections of Investment Adviser (continued):
Vice Presidents William R. Jamison
Constantine J. Kartsonas
Robert M. Kowit
Richard J. Lazarchic
Steven J. Lehman
Marian R. Marinack
Christopher Matyszewski
Jeffrey A. Petro
Keith J. Sabol
Frank Semack
Aash M. Shah
Michael W. Sirianni, Jr.
Christopher Smith
Edward J. Tiedge
Leonardo A. Vila
Paige M. Wilhelm
Lori A. Wolff
George B. Wright
Assistant Vice Presidents: Catherine A. Arendas
Arminda Aviles
Nancy J. Belz
James R. Crea, Jr.
Karol M. Krummie
Lee R. Cunningham, II
Fred B. Crutchfield
James H. Davis, II
Paul S. Drotch
Salvatore A. Esposito
Donna M. Fabiano
Gary E. Falwell
John T. Gentry
Nikola A. Ivanov
Nathan H. Kehm
John C. Kerber
Ted T. Lietz, Sr.
Monica Lugani
Grant K. McKay
Natalie F. Metz
Thomas Mitchell
Joseph M. Natoli
Bob Nolte
Mary Kay Pavuk
John Quartarolo
Rae Ann Rice
Roberto Sanchez-Dahl, Sr.
Sarath Sathkumara
James W. Schaub
John Sidawi
Diane R. Startari
Diane Tolby
Assistant Vice Presidents: Timothy G. Trebilcock
Michael R. Tucker
Steven J. Wagner
Secretary: G. Andrew Bonnewell
Treasurer: Thomas R. Donahue
Assistant Secretaries: C. Grant Anderson
Karen M. Brownlee
Leslie K. Ross
Assistant Treasurer: Denis McAuley, III
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.
Anderson, Andy United Kingdom
Armstrong, Ed Investment Representative (IR)
Arnold, Jandy Cust.Account Transfer & Intl.
Bachmann, John Firm Director
Bahr, Rodney Cash Area
Baldridge, Tony IS Home Office Services
Bashor, Jim IR - Regional Leader
Bastien, Kevin Accounting
Baumgertel, Armin IR - Regional Leader
Beck, Bob Muni Bonds
Bennett, Roger IR - Regional Leader
Bertsch, Tom IR - Regional Leader
Beuerlein, John IR Development Area 2
Bokhoven, Howard IR - Regional Leader
Borota, John Mkt Development/ IR Hiring
Box, Ken IR _ Regional Leader
Boyd, Robb IR - Regional Leader
Britton, Harold IR - Regional Leader
Broderick, Bill Product Review
Brown, John IR - Regional Leader
Brown, Mort Managed Asset Services
Burkett, Sheila IS - Trades and Products
Burkhardt, Dan Investment Banking
Burwell, Donald Canadian Compliance
Cahill, Jack Sales Training, Segment 3
Campbell, Brett Sales Training
Campbell, William IR - Regional Leader
Caruso, John IS Architecture Area
Cascella, Guy IR Development Area 4
Cavness, Pam Compliance
Charles, III Jim IR - Regional Leader
Christensen, Andy Mutual Funds Operations
Ciapciak, Bob Operating Assistant
Clement, Steve Video
Cook-Schneider, Cheryl Compliance Administration
Coon, Gary IR - Regional Leader
Coon, Richard IR - Regional Leader
Cronin, Lila Branch Staff & Serv. Trng.
Crow, Terry Trust Company
Cummins, Mike IR - Regional Leader
Curran, Paul IR- Regional Leader
Daniels, Paul IR - Regional Leader
Davis, Doug IR - Regional Leader
Delavan, John IR - Regional Leader
Dille, John IR - Regional Leader
Docksey, James IR - Regional Leader
Doria, Cynthia Legal
Dosmann, Greg IR Development Area 5
Duffy, Brian IR - Regional Leader
Dwyer, Bill IR - Regional Leader
Dye, Abe IR - Regional Leader
Eaker, Norm Operations
Eberle, Kevin IR - Regional Leader
Esser, Mike Government Relations
Ferguson, Scott IR - Regional Leader
Fiala, Bill Research
Ficken, Ann Internal Audit
Flatt, Kevin Corp. Bds./Fixed Income
Floyd, Laurens Jr. IR - Regional Leader
Forcade, Daniel F. Insurance/Annuity Processing
Fraser, John IR - Regional Leader
Fraser, Steve Operations Control
Frick, Brad Travel
Gilkison, Chris Sales Hiring & Placement
Gilman, Barb Sales Interview Team
Goldberg, Steve Central Services
Gorgen, Ron Field Supervision
Gregory, Bob New IR Support
Haarberg, Kevin IR - Regional Leader
Hamilton, Stuart IR - Regional Leader
Hansell, Paul IR - Regional Leader
Hansen, Kurt IS Architecture
Hayes, Dave IR - Regional Leader
Haynes, Randy Branch Services
Heisler, Pete IR - Regional Leader
Helbert, Clif IR - Regional Leader
Heying, Mary Beth Communications
Hill, Doug Products & Sales
Hirsch, David IR - Regional Leader
Hizar, Bill Investment Banking
Hochstetler, Bill IR - Regional Leader
Holmes, Alan IR- Regional Leader
Holmes, Michael Human Resources
Hope, Ruben IR - Regional Leader
Howard, Don IR - Regional Leader
Hull, Earl IR - Regional Leader
Huss, Julie Municipal Finance
Hunn, Glenn Information Systems
Iorio, Tom IR - Regional Leader
Johnson, John IS Architecture
Johnston, Joe IR - Regional Leader
Kelly, Myles Accounting
Kelly, Tim Compliance
Kimbrough, Barb IS HR Area
King, Ken Marketing Research
Kirley, Tim United Kingdom
Kliethermes, Tom IR - Regional Leader
Knickerbocker, Todd IR - Regional Leader
Koehl, Tim Canada Division
Krekeler, Jim Investment Banking
Kruse, Rick Boone National S&L
Lane, David IR - Regional Leader
Langstraat, Phil IR - Regional Leader
Leverenz, Mark Securities Processing
Liebman, Michele Information Systems
Liesenfeld, Rhonda Government Bonds
Malone, Rich Information Systems
Mangum, Kevin IR - Regional Leader
McCoy, Tim IR Development Area 5
Migneron, Tom Income Distribution/Settlement
Miller, Rich IR - Regional Leader
Million, Larry IR - Regional Leader
Miltenberger, Tom Mutual Funds Marketing
Moriarty, Bill IS Bus. Development
Mosbacher, Merry Ins./Annuity Marketing
Novik, Steve Accounting
Nyberg, Bob IR - Regional Leader
Ostby, Barbara IR - Regional Leader
Otto, Dave Research
Panchot, Jeff IR - Regional Leader
Paul, Curt IR - Regional Leader
Pearcy, Van IR - Regional Leader
Phillips, Jim IR _Regional Leader
Pope, Darryl Service Division
Powers, Dave Research Marketing
Price, Lee IR - Regional Leader
Raley, Colleen Advertising
Raley, Ray Equities Marketing
Reese, Trevor Jr IR - Regional Leader
Regnier, Jim Sales Training
Robbins, Ray Product and Service
Robinson, III Wann IR - Regional Leader
Rogers, Chuck IR Development Area 3
Rosen, Doug IR Development Area 3
Rupp, Tim IR - Regional Leader
Sauer, John Banking Services/Customer Loans
Scariano, Ronald IR - Regional Leader
Schlappi, Art IR - Regional Leader
Schloser, Thom IR - Regional Leader
Schwab, Phil Syndicate/Unit Trust/OTC
Seifert, Steve New IR Training
Shaughnessy, Fes Transfer Broker Recruiting
Shillingstad, Bob IR - Regional Leader
Silverstein, Connie Banking Services
Skinner, Dave IR - Regional Leader
Skrainka, Alan Research
Sloop, John Market Development
Smith, Randy IR - Regional Leader
Smith, Ron IR - Regional Leader
Sobol, Larry Legal
Staudacher, Leo IR - Regional Leader
Steinhouse, Eric Marketing Division
Suchocki, Roberta Sales Training
Thomas, Larry IR Development Area 1
Timm, Dan New IR Training
Tucker, Terry Information Systems
Unnerstall, Rich Information Systems
Venn, Susan Accounting
Vento, Tony Research
Virgil, Bob Management Development
Walter, Don Field Supervision
Ward, David IR - Regional Leader
Warner, Lee IR - Regional Leader
Weddle, Jim IR Development
Westphal, Tom Customer Information
Whitfield, Heidi IR Development Area 4
Wilkins, Lindsey Retirment Plan Marketing
Williams, Robert IR - Regional Leader
Woodward, Price IR Development Area 1
Wright, Alan Investment Banking
Ytterberg, Brad IR Development Area 2
Zeilmann, Judy 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 Edward D. Jones & Co., L.P.
Dividend Disbursing Agent") 201 Progress Parkway
Maryland Heights, MO
63043
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.
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 26th day of May, 2000.
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
May 26, 2000
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 Attorney In Fact May 26, 2000
Leslie K. Ross For the Persons
ASSISTANT SECRETARY 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
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EXHIBIT J UNDER FORM N-1A
EXHIBIT 23 UNDER ITEM 601/REG. S-K
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the references to our firm under the captions "Financial
Highlights" in the Prospectus and "Independent Auditors" in the Statement of
Additional Information, and to the use of our report dated April 18, 2000,
included in Post-Effective Amendment Number 38 to the Registration Statement
(Form N-1A, No. 2-66437) of the Edward D. Jones & Co. Daily Passport Cash Trust
for the year ended February 29, 2000.
ERNST & YOUNG LLP
Boston, Massachusetts
May 25, 2000
Exhibit (o) (i) under Form N-1A
Exhibit (24) under Item 601/Reg.S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and each of them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them and in their names,
place and stead, in any and all capacities, to sign any and all documents to be
filed with the Securities and Exchange Commission pursuant to the Securities Act
of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of
1940, by means of the Securities and Exchange Commission's electronic disclosure
system known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/JOHN F. DONAHUE Chairman and Trustee March 15, 2000
- ------------------
John F. Donahue (Chief Executive Officer)
/S/RICHARD B. FISHER President March 15, 2000
- --------------------
Richard B. Fisher
/S/J. CHRISTOPHER DONAHUE Executive Vice President March 15, 2000
- -------------------------
J. Christopher Donahue and Trustee
/S/RICHARD J. THOMAS Treasurer March 15, 2000
- --------------------
Richard J. Thomas (Principal Financial and
Accounting Officer)
/S/THOMAS G. BIGLEY Trustee March 15, 2000
- -------------------
Thomas G. Bigley
/S/JOHN T CONROY, JR. Trustee March 15, 2000
- ----------------------
John T. Conroy, Jr.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/LAWRENCE D. ELLIS, M.D. Trustee March 15, 2000
- --------------------------
Lawrence D. Ellis, M.D.
/S/PETER E. MADDEN Trustee March 15, 2000
- ------------------
Peter E. Madden
/S/JOHN E. MURRAY, JR. Trustee March 15, 2000
- ----------------------
John E. Murray, Jr.
/S/MARJORIE P. SMUTS Trustee March 15, 2000
- --------------------
Marjorie P. Smuts
Sworn to and subscribed before me this 15th day of March,2000
/S/JANICE L. VANDENBERG
JANICE L. VANDENBERG
Exhibit (o) (ii) under Form N-1A
Exhibit (24) under Item 601/Reg.S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and each of them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them and in their names,
place and stead, in any and all capacities, to sign any and all documents to be
filed with the Securities and Exchange Commission pursuant to the Securities Act
of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of
1940, by means of the Securities and Exchange Commission's electronic disclosure
system known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/CHARLES F. MANSFIELD, JR. Trustee March 15, 2000
- ----------------------------
Charles F. Mansfield, Jr.
Sworn to and subscribed before me this 15th day of March,2000
/S/JANICE L. VANDENBERG
JANICE L. VANDENBERG
Exhibit (o) (iii) under Form N-1A
Exhibit (24) under Item 601/Reg.S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and each of them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them and in their names,
place and stead, in any and all capacities, to sign any and all documents to be
filed with the Securities and Exchange Commission pursuant to the Securities Act
of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of
1940, by means of the Securities and Exchange Commission's electronic disclosure
system known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/ NICHOLAS P. CONSTANTAKIS Trustee March 15, 2000
- ----------------------------
Nicholas P. Constantakis
Sworn to and subscribed before me this 15th day of March,2000
/S/JANICE L. VANDENBERG
JANICE L. VANDENBERG
Exhibit (o) (iv) under Form N-1A
Exhibit (24) under Item 601/Reg.S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and each of them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them and in their names,
place and stead, in any and all capacities, to sign any and all documents to be
filed with the Securities and Exchange Commission pursuant to the Securities Act
of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of
1940, by means of the Securities and Exchange Commission's electronic disclosure
system known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/ JOHN F. CUNNINGHAM Trustee March 15, 2000
- ----------------------
John F. Cunningham
Sworn to and subscribed before me this 15th day of March,2000
/S/JANICE L. VANDENBERG
JANICE L. VANDENBERG
Exhibit (o) (v) under Form N-1A
Exhibit (24) under Item 601/Reg.S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and each of them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them and in their names,
place and stead, in any and all capacities, to sign any and all documents to be
filed with the Securities and Exchange Commission pursuant to the Securities Act
of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of
1940, by means of the Securities and Exchange Commission's electronic disclosure
system known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/ JOHN S. WALSH Trustee March 15, 2000
- -----------------
John S. Walsh
Sworn to and subscribed before me this 15th day of March,2000
/S/JANICE L. VANDENBERG
JANICE L. VANDENBERG
Exhibit (o) (vi) under Form N-1A
Exhibit (24) under Item 601/Reg.S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
the Secretary and Assistant Secretary of EDWARD D. JONES & CO. DAILY PASSPORT
CASH TRUST and each of them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them and in their names,
place and stead, in any and all capacities, to sign any and all documents to be
filed with the Securities and Exchange Commission pursuant to the Securities Act
of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of
1940, by means of the Securities and Exchange Commission's electronic disclosure
system known as EDGAR; and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to sign and perform each and every act and thing requisite and
necessary to be done in connection therewith, as fully to all intents and
purposes as each of them might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their
or his substitute or substitutes, may lawfully do or cause to be done by virtue
thereof.
SIGNATURES TITLE DATE
- ---------- ----- ----
/S/ WILLIAM D. DAWSON, III Chief Investment Officer March 15, 2000
- --------------------------
william D. Dawson, III
Sworn to and subscribed before me this 15th day of March,2000
/S/JANICE L. VANDENBERG
JANICE L. VANDENBERG
