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Previous: PNC MORTGAGE SECURITIES CORP, 424B5, 2000-05-03 |
Next: BETHLEHEM STEEL CORP TRUSTEES OF THE PENSION TRUST, 13F-HR, 2000-05-03 |
Richard B. Fisher
President
Edward D. Jones & Co. Daily Passport Cash Trust
Dear Fellow Shareholder:
Edward D. Jones & Co. Daily Passport Cash Trust was created in 1980, and I am pleased to present its 20th Annual Report. Today, the trust provides more than 1.3 million shareholder accounts with competitive yields from short-term U.S. government securities. It also provides daily liquidity, as monies can be added or redeemed without fees or penalties at any time.
This report covers the 12-month reporting period from March 1, 1999 through February 29, 2000. It begins with an interview by the portfolio manager Joseph M. Natoli, Assistant Vice President, who manages the trust with Susan R. Hill, Vice President, both of Passport Research, Ltd. The report also features a complete listing of the trust's holdings and its financial statements.
The trust is in its 20th year of serving Edward Jones clients--individuals and institutions--by providing a competitive level of daily income and stability of principal with daily access to the money in the account.1 Over the trust's 20 years of operation, shareholders have deposited a total of $187 billion and withdrawn $178 billion. The trust is a popular cash sweep vehicle, as evidenced by its current 1.2 million sweep accounts.
On February 29, 2000, more than $8.8 billion in investor assets were earning income every day from the trust's portfolio of short-term U.S. government securities.
1 An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the trust.
During the 12-month reporting period, the trust paid dividends to shareholders totaling $0.04 per share, for a total return of 4.43%. On February 29, 2000, the 7-day net yield was 4.89%, and the 7-day effective yield was 5.01%.2
Thank you for keeping your ready cash working through Edward D. Jones & Co. Daily Passport Cash Trust. As always, we welcome your questions and comments.
Sincerely,
Richard B. Fisher
Richard B. Fisher
President
April 15, 2000
2 Past performance is no guarantee of future results. Yields will vary. Yields quoted for money market funds most closely reflect the trust's current earnings.
Susan R. Hill
Vice President
Passport Research, Ltd.
Joseph M. Natoli
Assistant Vice President
Passport Research, Ltd.
After economic crises overseas, a significant worldwide liquidity crisis and a series of three Federal Reserve Board (the "Fed") interest rate reductions, 1998 ended with the capital markets stabilized and the economy showing considerable strength. In 1999, U.S. Gross Domestic Product ("GDP") grew by 4.50%, the fourth year in a row in which economic growth had increased by more than 4.00%. This level of growth clearly exceeds what the Fed considered to be the non-inflationary potential of the economy. The consumer had much to do with this strong growth, as retail sales in 1999 grew strongly versus 1998. In fact, in February of 2000, we witnessed a year-over-year increase of 9.40% in retail sales. Labor markets remained tight as the average increase in non-farm payrolls was 224,000 in 1999. The U.S. unemployment rate ended the reporting period at 4.10%, near the 29-year low set in January 2000.
Benign inflation helped offset robust economic growth. The Producer Price Index ("PPI") rose 3.00% in 1999, after showing no change in 1998. Surging energy prices had much to do with the increase, as crude oil prices rose 176% in 1999. The core PPI rate--excluding the food and energy sectors--rose just 0.90% in 1999. Productivity growth rates of nearly 5.00% through the course of 1999 continued to be a factor in dampening the impact of tightness in the labor markets and creeping wage pressures.
Despite the robust economic environment and generally rising short-term interest rates, the Fed kept the Fed Funds Target Rate at 4.75% through nearly all of the first half of 1999. In June, prior to the Federal Open Market Committee's ("FOMC") fourth meeting of the year, Chairman Alan Greenspan appeared before the Joint Economic Committee and set the groundwork for a series of interest rate increases. Mr. Greenspan hinted that it may be appropriate to take back some of the liquidity that had been infused into the market in late 1998. Not surprisingly, the Fed opted to tighten monetary policy by 25 basis points on June 30, 1999, and followed this action with another 25 basis point move to 5.25% at the FOMC meeting on August 24, 1999. A third 25 basis point interest rate increase occurred in November of 1999.
Following the November move, and despite relentless economic strength, market participants correctly anticipated that the Fed would refrain from raising rates in the face of the year 2000 date changeover. However, in February of 2000, the Fed resumed its series of rate increases by bumping up the Fed Funds Target Rate by an additional 25 basis points, which ended the reporting period at 5.75%.
Early in 1999, short-term interest rates began to reflect the robust economic activity and the Fed's gradually changing expectations. The yield on one-year agency paper began the reporting period at 5.02% and was essentially range-bound between 4.90% and 5.05% through mid-May of 1999. In late May, however, the yield began to climb and traded at 5.52% by the time of the first Fed move in June of 1999. Through the second half of the year, the yield on the discount note followed a pattern of pricing in Fed tightenings, traded range-bound, then pricing in additional tightenings. By year-end 1999, the yield on the discount note had broken through the 6.00% level and continued its rise to 6.45% by February 29, 2000.
For much of the year, we managed the trust within a 40- to 50-day average maturity target range. In late January 2000, we reduced our target range to 35-45 days in light of ongoing economic strength and our expectations of further interest rate increases. As always, we attempted to maximize performance through ongoing relative value analysis. We added to the trust's position in floating rate securities, from 19% to 24% of the trust at period end. We also added to our position in overnight and short-term repurchase agreements. Both actions were taken to enhance the portfolio's responsiveness to expected increases in interest rates. Overall, the 7-day net yield of the trust rose from 4.09% on March 1, 1999 to 4.89% by February 29, 2000.1
It is reasonable to expect further rate increases as the Fed puts its anti-inflationary efforts in action. Led by the consumer sector and empowered by extraordinary gains in the equity markets, the U.S. economy continues to exhibit strong growth. Employment growth may slow somewhat in 2000, but will continue to put pressure on the limited pool of available workers. Finally, it will be important to examine the U.S. inflation data to determine whether the recent increases in energy prices have begun to impact producer and consumer prices. Increases in short-term rates are reflected in the trust's daily competitive yield.
1 Past performance is no guarantee of future results. Yields will vary. Yields quoted for money market funds most closely reflect the trust's current earnings.
FEBRUARY 29, 2000
|
Principal |
|
|
|
Value |
||
|
|
|
|
GOVERNMENT AGENCIES--51.8% |
|
|
|
|
$ |
40,000,000 |
1 |
Federal Farm Credit Bank Discount Notes, 5.940%, 1/23/2001 |
|
$ |
37,835,200 |
|
|
50,000,000 |
|
Federal Farm Credit Bank Notes, 5.400%, 7/3/2000 |
|
|
49,974,391 |
|
|
289,200,000 |
1 |
Federal Home Loan Bank Discount Notes, 5.490% - 5.950%, 3/1/2000 - 1/12/2001 |
|
|
286,872,333 |
|
|
191,000,000 |
2 |
Federal Home Loan Bank Floating Rate Notes, 5.685% - 5.874%, 3/15/2000 - 5/12/2000 |
|
|
190,910,867 |
|
|
428,230,000 |
|
Federal Home Loan Bank Notes, 4.970% - 6.580%, 3/8/2000 - 2/16/2001 |
|
|
428,075,860 |
|
|
614,558,000 |
1 |
Federal Home Loan Mortgage Corp. Discount Notes, 5.218% - 6.160%, 3/16/2000 - 2/1/2001 |
|
|
607,833,104 |
|
|
412,000,000 |
2 |
Federal Home Loan Mortgage Corp. Floating Rate Notes, 5.670% - 5.710%, 3/17/2000 - 3/22/2000 |
|
|
411,891,947 |
|
|
769,383,000 |
1 |
Federal National Mortgage Association Discount Notes, 5.210% - 5.880%, 3/2/2000 - 6/22/2000 |
|
|
763,839,421 |
|
|
984,000,000 |
2 |
Federal National Mortgage Association Floating Rate Notes, 5.675% - 5.970%, 3/1/2000 - 6/1/2000 |
|
|
983,598,730 |
|
|
220,500,000 |
|
Federal National Mortgage Association Notes, 4.980% - 6.445%, 3/10/2000 - 2/23/2001 |
|
|
220,024,099 |
|
|
528,000,000 |
2 |
Student Loan Marketing Association Floating Rate Notes, 5.720% - 6.531%, 3/1/2000 -- 3/7/2000 |
|
|
527,807,503 |
|
|
30,000,000 |
|
Student Loan Marketing Association Notes, 6.045%, 11/3/2000 |
|
|
29,988,055 |
|
|
||||||
|
|
|
|
TOTAL GOVERNMENT AGENCIES |
|
|
4,538,651,510 |
|
|
||||||
|
|
|
|
REPURCHASE AGREEMENTS--47.6%3 |
|
|
|
|
|
141,330,000 |
|
ABN AMRO, Inc., 5.860%, dated 2/29/2000, due 3/1/2000 |
|
|
141,330,000 |
|
|
800,000,000 |
|
Bank of America, 5.850%, dated 2/29/2000, due 3/1/2000 |
|
|
800,000,000 |
|
|
135,000,000 |
|
Barclays Capital, Inc., 5.770%, dated 2/29/2000, due 3/1/2000 |
|
|
135,000,000 |
|
|
220,000,000 |
|
Bear, Stearns and Co., 5.860%, dated 2/29/2000, due 3/1/2000 |
|
|
220,000,000 |
|
|
100,000,000 |
|
Countrywide Securities Corp., 5.860%, dated 2/29/2000, due 3/1/2000 |
|
|
100,000,000 |
|
|
450,000,000 |
4 |
Credit Suisse First Boston, Inc., 5.750%, dated 2/9/2000, due 3/13/2000 |
|
|
450,000,000 |
|
|
100,000,000 |
4 |
Deutsche Bank Financial, Inc., 5.750%, dated 2/9/2000, due 3/13/2000 |
|
|
100,000,000 |
|
|
12,000,000 |
|
Deutsche Bank Financial, Inc., 5.770%, dated 2/29/2000, due 3/1/2000 |
|
|
12,000,000 |
|
|
236,000,000 |
4 |
Goldman Sachs Group, LP, 5.760%, dated 2/14/2000, due 3/16/2000 |
|
|
236,000,000 |
|
|
232,000,000 |
4 |
Goldman Sachs Group, LP, 5.770%, dated 2/23/2000, due 3/22/2000 |
|
|
232,000,000 |
|
|
265,000,000 |
4 |
Lehman Brothers, Inc., 5.760%, dated 2/9/2000, due 3/10/2000 |
|
|
265,000,000 |
|
|
360,000,000 |
|
Paribas Corp., 5.850%, dated 2/29/2000, due 3/1/2000 |
|
|
360,000,000 |
|
|
180,000,000 |
|
Prudential Securities, Inc., 5.860%, dated 2/29/2000, due 3/1/2000 |
|
|
180,000,000 |
|
Principal |
|
|
|
Value |
||
|
|
|
|
REPURCHASE AGREEMENTS--continued3 |
|
|
|
|
$ |
155,000,000 |
|
Salomon Brothers, Inc., 5.860%, dated 2/29/2000, due 3/1/2000 |
|
$ |
155,000,000 |
|
|
50,000,000 |
|
Toronto Dominion Securities (USA), Inc., 5.780%, dated 2/29/2000, due 3/1/2000 |
|
|
50,000,000 |
|
|
390,000,000 |
|
Warburg Dillon Reed LLC, 5.770%, dated 2/29/2000, due 3/1/2000 |
|
|
390,000,000 |
|
|
295,000,000 |
|
Warburg Dillon Reed LLC, 5.860%, dated 2/29/2000, due 3/1/2000 |
|
|
295,000,000 |
|
|
50,000,000 |
|
Westdeutsche Landesbank Girozentrale, 5.750%, dated 2/29/2000, due 3/1/2000 |
|
|
50,000,000 |
|
|
||||||
|
|
|
|
TOTAL REPURCHASE AGREEMENTS |
|
|
4,171,330,000 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (AT AMORTIZED COST)5 |
|
$ |
8,709,981,510 |
|
|
||||||
1 Discount rate at time of purchase.
2 Floating rate note with current rate and next reset date shown.
3 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds.
4 Although final maturity falls beyond seven days, a liquidity feature is included in each transaction to permit termination of the repurchase agreement within seven days.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets ($8,761,300,212) at February 29, 2000.
See Notes which are an integral part of the Financial Statements
FEBRUARY 29, 2000
|
Assets: |
|
|
|
|
|
|
|
Investments in securities |
|
$ |
4,538,651,510 |
|
|
|
|
Investments in repurchase agreements |
|
|
4,171,330,000 |
|
|
|
|
|
||||||
|
Total investments in securities, at amortized cost and value |
|
|
|
|
$ |
8,709,981,510 |
|
Cash |
|
|
|
|
|
10,073,592 |
|
Income receivable |
|
|
|
|
|
20,944,487 |
|
Receivable for shares sold |
|
|
|
|
|
181,524,992 |
|
|
||||||
|
TOTAL ASSETS |
|
|
|
|
|
8,922,524,581 |
|
|
||||||
|
Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
|
110,911,200 |
|
|
|
|
Payable for shares redeemed |
|
|
36,462,205 |
|
|
|
|
Income distribution payable |
|
|
8,408,639 |
|
|
|
|
Accrued expenses |
|
|
5,442,325 |
|
|
|
|
|
||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
161,224,369 |
|
|
||||||
|
Net assets for 8,761,300,212 shares outstanding |
|
|
|
|
$ |
8,761,300,212 |
|
|
||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
|
|
|
$8,761,300,212 ÷ 8,761,300,212 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
YEAR ENDED FEBRUARY 29, 2000
|
Investment Income: |
|
|
|
|
|
|
|
Interest |
|
|
|
|
$ |
435,052,383 |
|
|
||||||
|
Expenses: |
|
|
|
|
|
|
|
Investment adviser fee |
|
$ |
34,194,313 |
|
|
|
|
Administrative personnel and services fee |
|
|
6,207,980 |
|
|
|
|
Custodian fees |
|
|
245,745 |
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
11,868,520 |
|
|
|
|
Directors'/Trustees' fees |
|
|
59,655 |
|
|
|
|
Auditing fees |
|
|
18,631 |
|
|
|
|
Legal fees |
|
|
29,752 |
|
|
|
|
Portfolio accounting fees |
|
|
570,128 |
|
|
|
|
Shareholder services fee |
|
|
20,590,196 |
|
|
|
|
Share registration costs |
|
|
815,339 |
|
|
|
|
Printing and postage |
|
|
2,504,831 |
|
|
|
|
Insurance premiums |
|
|
15,379 |
|
|
|
|
Miscellaneous |
|
|
57,072 |
|
|
|
|
|
||||||
|
TOTAL EXPENSES |
|
|
|
|
|
77,177,541 |
|
|
||||||
|
Net investment income |
|
|
|
|
$ |
357,874,842 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
|
Year Ended February 28 or 29 |
|
|
2000 |
|
|
|
1999 |
|
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
357,874,842 |
|
|
$ |
298,512,837 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
(357,874,842 |
) |
|
|
(298,512,837 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
36,477,258,796 |
|
|
|
27,783,437,416 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
349,424,325 |
|
|
|
293,550,669 |
|
|
Cost of shares redeemed |
|
|
(35,737,132,412 |
) |
|
|
(26,210,672,944 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
1,089,550,709 |
|
|
|
1,866,315,141 |
|
|
|
||||||||
|
Change in net assets |
|
|
1,089,550,709 |
|
|
|
1,866,315,141 |
|
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
7,671,749,503 |
|
|
|
5,805,434,362 |
|
|
|
||||||||
|
End of period |
|
$ |
8,761,300,212 |
|
|
$ |
7,671,749,503 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
|
Year Ended February 28 or 29 |
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
Net Asset Value, Beginning of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
Income From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
0.04 |
|
|
0.05 |
|
|
0.05 |
|
|
0.04 |
|
|
0.05 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.04 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.04 |
) |
|
(0.05 |
) |
|
|
|||||||||||||||
|
Net Asset Value, End of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
|
|||||||||||||||
|
Total Return1 |
|
4.43 |
% |
|
4.63 |
% |
|
4.84 |
% |
|
4.59 |
% |
|
5.06 |
% |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Expenses |
|
0.94 |
% |
|
0.87 |
% |
|
0.89 |
% |
|
0.89 |
% |
|
0.96 |
% |
|
|
|||||||||||||||
|
Net investment income |
|
4.35 |
% |
|
4.50 |
% |
|
4.72 |
% |
|
4.49 |
% |
|
4.92 |
% |
|
|
|||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$8,761,300 |
|
|
$7,671,750 |
|
|
$5,805,434 |
|
|
$4,760,020 |
|
|
$3,951,155 |
|
|
|
|||||||||||||||
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
See Notes which are an integral part of the Financial Statements
FEBRUARY 29, 2000
Edward D. Jones & Co. Daily Passport Cash Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The investment objective of the Trust is stability of principal and current income consistent with stability of principal.
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles.
The Trust uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.
It is the policy of the Trust to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Trust to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.
The Trust will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Trust's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Trust could receive less than the repurchase price on the sale of collateral securities. The Trust, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
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.
It is the Trust's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.
The Trust may engage in when-issued or delayed delivery transactions. The Trust records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to the changes in market conditions or the failure of counterparties to perform under the contract.
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.
Investment transactions are accounted for on a trade date basis.
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:
|
Year Ended February 28 or 29 |
|
2000 |
|
|
1999 |
|
|
|
||||||
|
Shares sold |
|
36,477,258,796 |
|
|
27,783,437,416 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
349,424,325 |
|
|
293,550,669 |
|
|
Shares redeemed |
|
(35,737,132,412 |
) |
|
(26,210,672,944 |
) |
|
|
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NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
1,089,550,709 |
|
|
1,866,315,141 |
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|
|
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Passport Research Ltd., the Trust's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee based on average daily net assets of the Trust 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 Trust (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 Trust, 2.0% per year on the next $70 million of average daily net assets of the Trust, and 1.5% per year on any additional assets.
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.
Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Trust with administrative personnel and services. The fee paid to FServ is based on 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.
Under the terms of a Shareholder Services Agreement with Federated Shareholders Services Company ("FSSC"), the Trust will pay FSSC up to 0.25% of average daily net assets of the Trust for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts.
Edward D. Jones & Co. L.P. serves as the transfer and dividend disbursing agent to the Trust. The fee paid to Edward D. Jones & Co. L.P. is based on the size, type, and number of accounts and transactions made by shareholders.
FServ maintains the Trust's accounting records for which it receives a fee. The fee is based on the level of the Trust's average daily net assets for the period, plus out-of-pocket expenses.
Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.
TO THE TRUSTEES AND SHAREHOLDERS OF
EDWARD D. JONES & CO. DAILY PASSPORT CASH TRUST:
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Edward D. Jones & Co. Daily Passport Cash Trust (the "Trust"), 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 Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with 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.
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.
Ernst & Young LLP
Boston, Massachusetts
April 18, 2000
Chairman
President
Chief Investment Officer
Executive Vice President
Executive Vice President
Executive Vice President and Secretary
Treasurer
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when preceded or accompanied by the trust's prospectus which contains facts concerning its objective and policies, management fees, expenses, and other information.
Daily
Passport
Cash Trust
ANNUAL REPORT
FEBRUARY 29, 2000
Edward Jones
201 Progress Parkway
Maryland Heights, Missouri 63043
1-800-331-2451
Distributor
Cusip 480023100
G00592-01 (4/00)
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