AUTOMATED
CASH
MANAGEMENT
TRUST
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
OCTOBER 31, 1993
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
2112509 (12/93)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Cash Management Trust (the "Trust") for the six-month period ending October 31,
1993. The Report begins with our Investment Review, in which the Trust's
portfolio manager provides a brief commentary on the short-term government
market. Following the Investment Review, you will find Financial Statements
containing the Trust's Portfolio of Investments.
The Trust pursues competitive income, a high level of liquidity, and a stable
net asset value of $1.00 per share* through a well-diversified portfolio
consisted primarily of a wide range of high-quality commercial paper and
variable rate instruments.
During the six-month reporting period, dividends paid to shareholders totaled
$14 million. At the end of the period, net assets stood at $955 million.
Thank you for your participation in the Trust. Your questions, comments, or
suggestions are always welcome.
Sincerely,
Glen R. Johnson
President
December 8, 1993
* While no money market mutual fund can guarantee that a stable net asset value
will be maintained, the Trust has done so since its inception. An investment
in the Trust is neither insured nor guaranteed by the U.S. government.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
During the past year, the U.S. economy has grown at a very modest pace,
commensurate with a low inflation environment. October, 1993 was the first month
during which almost all economic releases were positive. Employment seems to be
making modest but steady gains, while personal income and spending have
experienced minor upticks. From a manufacturing vantage point, industrial
production, capacity utilization, and durable goods orders have all begun to
rebound. In this mild recovery, inflation has remained under control with
respect to both the CPI and PPI. Strength in the CRB index has been attributed
to problems resulting from the flooding in the Midwest.
The money supply has been steadily increasing during the last six months
following a very weak period over the prior several months. In aggregate, money
supply has been growing, although the measures are still below Fed targets. The
annualized growth rate for M2 over the past six months has been 3.5%. Utilizing
the other aggregates, M1 expanded by 14.0% while M3 increased by 2.3%. It is
unlikely that a strong recovery can occur without an uptick in liquidity for
sustenance.
Over the past six months short-term rates have held steady in the low 3% range.
Both the Fed Funds rate and the discount rate have stayed at 3% during the
period. The Fed changed from a neutral position to being biased to tighten in
August, but then reverted back to neutrality in September.
Given these low short-term interest rates but taking into consideration the fact
that inflation has started to rise, the target effective average maturity range
for the Trust has been 50-60 days throughout the past six months. This reflects
a belief that short-term rates may have bottomed but should not be rising
quickly. This also reflects a modest lengthening of about five days throughout
the period. In structuring the Trust, there is continued emphasis placed on
positioning 25-30% of the Trust's assets in variable rate demand notes and
accomplishing a modest barbell structure.
During the six months ending October 31, 1993, the net assets of the Trust
decreased from $1,172.2 to $955.4 million while the 7-day net yield increased
from 2.70% at the beginning of the period to 2.74% at the end of the period. The
effective average maturity of the Trust on October 31, 1993 was 61 days.
* Past performance is not indicative of future results. Yield will vary.
AUTOMATED CASH MANAGEMENT TRUST
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
CERTIFICATE OF DEPOSIT--2.3%
- ---------------------------------------------------------------------------------
BANKING--2.3%
------------------------------------------------------------------
$12,000,000 Banque Nationale de Paris, 3.35%, 7/7/94 $ 11,993,957
------------------------------------------------------------------
10,000,000 Old Kent Bank & Trust Co., 3.15%, 11/29/93 10,000,000
------------------------------------------------------------------ ------------
TOTAL CERTIFICATE OF DEPOSIT 21,993,957
------------------------------------------------------------------ ------------
++ COMMERCIAL PAPER--55.4%
- ---------------------------------------------------------------------------------
BANKING--17.4%
------------------------------------------------------------------
37,000,000 Abbey National N.A. Corp. (Guaranteed by Abbey National Bank PLC),
3.22%-3.27%, 3/22/94-4/26/94 36,464,356
------------------------------------------------------------------
5,000,000 ABN AMRO Bank, NV, 3.30%, 1/12/94 4,967,000
------------------------------------------------------------------
7,000,000 Bank of Nova Scotia, 3.28%, 1/21/94 6,948,340
------------------------------------------------------------------
17,500,000 Barclays Bank of Canada, 3.12%-3.20%, 11/3/93-3/16/94 17,458,670
------------------------------------------------------------------
12,000,000 Canadian Imperial Holdings, Inc., 3.17%-3.19%, 3/10/94-3/14/94 11,861,560
------------------------------------------------------------------
26,500,000 PEMEX Capital, Inc. (Swiss Bank Corp. LOC), 3.30%-3.33%,
1/4/94-1/12/94 26,334,086
------------------------------------------------------------------
33,183,000 Queensland Alumina Ltd. (Credit Suisse LOC), 3.11%-3.30%,
11/5/93-1/28/94 33,046,356
------------------------------------------------------------------
9,000,000 TNT Limited (Barclays Bank PLC LOC), 3.37%, 1/28/94 8,925,860
------------------------------------------------------------------
20,000,000 Toronto Dominion Holdings (USA), Inc., 3.10%-3.30%,
11/16/93-1/10/94 19,922,916
------------------------------------------------------------------ ------------
TOTAL 165,929,144
------------------------------------------------------------------ ------------
CHEMICALS--3.1%
------------------------------------------------------------------
30,000,000 Waste Management, Inc., 3.30%, 5/17/94 29,458,250
------------------------------------------------------------------ ------------
FINANCE--AUTOMOTIVE--1.0%
------------------------------------------------------------------
10,000,000 Ford Credit Receivables Funding, Inc., 3.16%, 11/15/93 9,987,711
------------------------------------------------------------------ ------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
++ COMMERCIAL PAPER--CONTINUED
- ---------------------------------------------------------------------------------
FINANCE--COMMERCIAL--6.7%
------------------------------------------------------------------
$27,000,000 CIT Group Holdings, Inc., 3.10%-3.27%, 11/10/93-4/19/94 $ 26,924,476
------------------------------------------------------------------
37,000,000 General Electric Capital Corp., 3.10%-3.35%, 11/5/93-2/3/94 36,845,590
------------------------------------------------------------------ ------------
TOTAL 63,770,066
------------------------------------------------------------------ ------------
FINANCE--RETAIL--6.9%
------------------------------------------------------------------
5,000,000 Grand Metropolitan Finance PLC, 3.28%, 1/11/94 4,967,656
------------------------------------------------------------------
7,000,000 Household Finance Corp., 3.25%, 1/20/94 6,949,444
------------------------------------------------------------------
10,00,000 ITT Financial Corp., 3.00%, 11/1/93 10,000,000
------------------------------------------------------------------
45,000,000 Sears Credit Corp. B, 3.25%-3.28%, 1/6/94-4/13/94 44,456,616
------------------------------------------------------------------ ------------
TOTAL 66,373,716
------------------------------------------------------------------ ------------
FUNDING CORPORATION--17.6%
------------------------------------------------------------------
48,000,000 Beta Finance, Inc., 3.15%-3.39%, 11/16/93-4/19/94 47,462,720
------------------------------------------------------------------
9,000,000 CIESCO, 3.10%-3.16%, 11/2/93-11/16/93 8,994,302
------------------------------------------------------------------
19,200,000 Corporate Asset Funding Co., Inc., 3.17%-3.30%, 12/10/93-3/9/94 19,045,516
------------------------------------------------------------------
23,950,000 Falcon Asset Securitization Corp., 3.23%-3.28%, 1/19/94-2/2/94 23,767,102
------------------------------------------------------------------
25,000,000 McKenna Triangle National Corp., 3.30%-3.35%, 1/21/94-2/8/94 24,785,033
------------------------------------------------------------------
30,000,000 New Center Asset Trust, 3.23%-3.25%, 1/6/94-4/18/94 29,650,656
------------------------------------------------------------------
11,000,000 PREFCO, 3.15%-3.20%, 11/4/93-11/8/93 10,994,992
------------------------------------------------------------------
3,000,000 Premium Funding, Inc., Series B, 3.26%, 1/7/94 2,981,798
------------------------------------------------------------------ ------------
TOTAL 167,682,119
------------------------------------------------------------------ ------------
INSURANCE--1.0%
------------------------------------------------------------------
10,000,000 Prudential Funding Corp., 3.27%, 1/13/94 9,933,692
------------------------------------------------------------------ ------------
TELECOMMUNICATIONS--1.7%
------------------------------------------------------------------
16,000,000 AT&T Corp., 3.25%-3.27%, 12/13/93-1/7/94 15,927,909
------------------------------------------------------------------ ------------
TOTAL COMMERCIAL PAPER 529,062,607
------------------------------------------------------------------ ------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
*VARIABLE RATE INSTRUMENTS--36.8%
- ---------------------------------------------------------------------------------
BANKING--22.2%
------------------------------------------------------------------
$13,000,000 American Seaway Foods, Inc. (Society National Bank LOC),
3.45%, 11/5/93 $ 13,000,000
------------------------------------------------------------------
13,000,000 Armstrong County PA Hospital Authority (First National Bank,
Chicago LOC), 3.20%, 11/5/93 13,000,000
------------------------------------------------------------------
12,350,000 Associated Materials, Inc. (Society National Bank LOC),
3.45%, 11/5/93 12,350,000
------------------------------------------------------------------
9,400,000 Beverly California Corp. (PNC Bank N.A. LOC), 3.27%, 11/5/93 9,400,000
------------------------------------------------------------------
7,400,000 Development Authority of Richmond County, GA
(PNC Bank, Kentucky LOC), 3.27%, 11/5/93 7,400,000
------------------------------------------------------------------
2,500,000 Eastern Milk Producers Cooperative Assn., Inc.
(Barclays Bank, PLC LOC), 3.36%, 11/5/93 2,500,000
------------------------------------------------------------------
5,000,000 Kentucky Rural EDA (PCI)/(PNC Bank N.A. LOC), 3.27%, 11/5/93 5,000,000
------------------------------------------------------------------
10,000,000 Massachusetts Industrial Finance Agency (PNC Bank N.A. LOC),
3.32%, 11/5/93 10,000,000
------------------------------------------------------------------
14,600,000 Merit-Cal (PNC Bank N.A. LOC), 3.27%, 11/5/93 14,600,000
------------------------------------------------------------------
12,000,000 National Funding Corp. (Societe Generale LOC), 3.40%, 11/5/93 12,000,000
------------------------------------------------------------------
2,970,000 New Jersey EDA Economic Growth Bonds, Series 1992T
(Banque Nationale de Paris), 3.32%, 11/1/93 2,970,000
------------------------------------------------------------------
2,750,000 New Jersey EDA Economic Growth Bonds, Series 1992U
(Banque Nationale de Paris), 3.32%, 11/1/93 2,750,000
------------------------------------------------------------------
18,400,000 Oakwood Medical Enterprises, Inc. (Sumitomo Bank, Ltd. LOC),
3.27%, 11/5/93 18,400,000
------------------------------------------------------------------
44,000,000 PHH/CFC Leasing (Societe Generale LOC), 3.27%, 11/5/93 44,000,000
------------------------------------------------------------------
5,000,000 SMM Trust 1993-A (Guaranteed by Morgan Guaranty Trust Co.), 3.36%,
12/18/93 5,000,000
------------------------------------------------------------------
40,000,000 SMM Trust 1993-B (Guaranteed by Morgan Guaranty Trust Co.), 3.24%,
11/12/93 40,000,000
------------------------------------------------------------------ ------------
TOTAL 212,370,000
------------------------------------------------------------------ ------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
*VARIABLE RATE INSTRUMENTS--CONTINUED
- ---------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--4.7%
------------------------------------------------------------------
$10,000,000 Compagnie Euralair S.A. (Guaranteed by General Electric Co.),
3.27%, 11/5/93 $ 10,000,000
------------------------------------------------------------------
973,400 GS Funding Corp. (Guaranteed by General Electric Co.),
3.27%, 11/5/93 973,400
------------------------------------------------------------------
28,518,017 Northwest Airlines, Inc. (Guaranteed by General Electric Co.),
3.28%, 11/5/93 28,518,017
------------------------------------------------------------------
5,615,886 Marta Leasing Ltd., (Guaranteed by General Electric Co.),
3.27%, 11/5/93 5,615,886
------------------------------------------------------------------ ------------
TOTAL 45,107,303
------------------------------------------------------------------ ------------
FINANCE--AUTOMOTIVE--4.7%
------------------------------------------------------------------
45,000,000 Money Market Auto Loan Trust, 3.32%, 11/29/93 45,000,000
------------------------------------------------------------------ ------------
INSURANCE--5.2%
------------------------------------------------------------------
25,000,000 People's Security Life Insurance Co., 3.36%, 11/29/93 25,000,000
------------------------------------------------------------------
25,000,000 Sun Life Insurance Co. of America, 3.34%, 11/5/93 25,000,000
------------------------------------------------------------------ ------------
TOTAL 50,000,000
------------------------------------------------------------------ ------------
TOTAL VARIABLE RATE INSTRUMENTS 352,477,303
------------------------------------------------------------------ ------------
SHORT-TERM NOTES--1.6%
- ---------------------------------------------------------------------------------
FINANCE--AUTOMOTIVE--1.1%
------------------------------------------------------------------
9,178,322 Premier Auto Trust 1993-2 Class A-1, 3.23%, 4/15/94 9,178,322
------------------------------------------------------------------
1,582,805 Premier Auto Trust 1993-3 Class A-1, 3.38%, 6/15/94 1,582,177
------------------------------------------------------------------ ------------
TOTAL 10,760,499
------------------------------------------------------------------ ------------
TOBACCO--0.5%
------------------------------------------------------------------
5,000,000 Philip Morris Cos., Inc., 7.63%, 2/15/94 5,057,000
------------------------------------------------------------------ ------------
TOTAL SHORT-TERM NOTES 15,817,499
------------------------------------------------------------------ ------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
** REPURCHASE AGREEMENTS--3.7%
- ---------------------------------------------------------------------------------
$ 5,200,000 BT Securities Corp., 3.00%, 11/1/93 $ 5,200,000
------------------------------------------------------------------
20,000,000 Chase Manhattan Bank, N.A., 2.95%, 11/1/93 20,000,000
------------------------------------------------------------------
2,150,000 Goldman, Sachs & Co., 2.97%, 11/1/93 2,150,000
------------------------------------------------------------------
8,000,000 PaineWebber, Inc., 3.00%, 11/1/93 8,000,000
------------------------------------------------------------------ ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 1B) 35,350,000
------------------------------------------------------------------ ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $954,701,366+
------------------------------------------------------------------ ------------
</TABLE>
The following abbreviation is used in this portfolio:
LOC--Letter(s) of Credit
+ Also represents cost for federal tax purposes.
++ Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
* Current rate and next demand date shown.
** 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 repurchase agreements are through participation in joint
accounts with other Federated funds.
Note: The categories of investments are shown as a percentage of net assets
($955,399,630) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments, at amortized cost and value (Notes 1A and 1B) $954,701,366
- --------------------------------------------------------------------------------
Cash 1,011,062
- --------------------------------------------------------------------------------
Interest receivable 1,126,282
- --------------------------------------------------------------------------------
Receivable for Trust shares sold 8,583
- -------------------------------------------------------------------------------- ------------
Total assets 956,847,293
- --------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------
Dividends payable $1,076,978
- -------------------------------------------------------------------
Payable for Trust shares repurchased 356,219
- -------------------------------------------------------------------
Accrued expenses and other liabilities 14,466
- ------------------------------------------------------------------- ----------
Total liabilities 1,447,663
- -------------------------------------------------------------------------------- ------------
NET ASSETS for 955,399,630 shares of beneficial interest
outstanding $955,399,630
- -------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share:
($955,399,630 / 955,399,630 shares of beneficial interest outstanding) $1.00
- -------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest income (Note 1C) $16,988,681
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee (Note 4) $2,589,787
- --------------------------------------------------------------------
Trustees' fees 6,286
- --------------------------------------------------------------------
Administrative personnel and services (Note 4) 331,342
- --------------------------------------------------------------------
Custodian, transfer and dividend disbursing agent fees and expenses 132,069
- --------------------------------------------------------------------
Trust share registration costs 31,745
- --------------------------------------------------------------------
Auditing fees 10,000
- --------------------------------------------------------------------
Legal fees 10,800
- --------------------------------------------------------------------
Printing and postage 5,500
- --------------------------------------------------------------------
Insurance premiums 13,800
- --------------------------------------------------------------------
Taxes 7,248
- --------------------------------------------------------------------
Miscellaneous 4,305
- -------------------------------------------------------------------- ----------
Total expenses 3,142,882
- --------------------------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 4) 241,198
- -------------------------------------------------------------------- ----------
Net expenses 2,901,684
- --------------------------------------------------------------------------------- -----------
NET INVESTMENT INCOME $14,086,997
- --------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are in integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
------------------------------------
1994* 1993
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 14,086,997 $ 37,887,029
- --------------------------------------------------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2)
- ---------------------------------------------------------
Dividends to shareholders from net investment income (14,086,997) (37,887,029)
- --------------------------------------------------------- --------------- ---------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)
- ---------------------------------------------------------
Proceeds from sale of shares 4,585,222,091 9,875,584,346
- ---------------------------------------------------------
Net asset value of shares issued to shareholders
electing to receive payment of dividends in Trust Shares 7,119,066 16,100,512
- ---------------------------------------------------------
Cost of shares redeemed (4,809,111,508) (9,939,726,738)
- --------------------------------------------------------- --------------- ---------------
Change in net assets from Trust share transactions (216,770,351) (48,041,880)
- --------------------------------------------------------- --------------- ---------------
Change in net assets (216,770,351) (48,041,880)
- ---------------------------------------------------------
NET ASSETS--
- ---------------------------------------------------------
Beginning of period 1,172,169,981 1,220,211,861
- --------------------------------------------------------- --------------- ---------------
End of period $ 955,399,630 $ 1,172,169,981
- --------------------------------------------------------- --------------- ---------------
</TABLE>
* For the six months ended October 31, 1993 (unaudited).
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
------------------------------------------------------------------------------------------------------------------
1994* 1993 1992 1991 1990 1989 1988 1987 1986 1985
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET
VALUE,
BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------
INCOME FROM
INVESTMENT
OPERATIONS
- ------------
Net
investment
income 0.01 0.03 0.05 0.07 0.08 0.08 0.07 0.06 0.07 0.10
- ------------ ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
LESS
DISTRIBUTIONS
- ------------
Dividends
to
shareholders
from net
investment
income (0.01) (0.03) (0.05) (0.07) (0.08) (0.08) (0.07) (0.06) (0.07) (0.10)
- ------------ ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
NET ASSET
VALUE, END
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------ ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL
RETURN** 1.38% 3.11% 5.02% 7.52% 8.69% 8.20% 6.72% 6.00% 7.69% 10.01%
- ------------
RATIOS TO
AVERAGE
NET ASSETS
- ------------
Expenses 0.56%(a) 0.56% 0.56% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
- ------------
Net
investment
income 2.72%(a) 3.07% 4.88% 7.23% 8.32% 7.93% 6.53% 5.82% 7.43% 9.37%
- ------------
Expense
adjustment(b) 0.05%(a) 0.04% 0.03% 0.12% 0.09% 0.10% 0.04% 0.04% 0.06% 0.05%
- ------------
SUPPLEMENTAL
DATA
- ------------
Net assets,
end of
period (000
omitted) 955,400 1,172,170 1,220,212 1,464,710 1,164,013 943,136 924,558 867,725 764,841 851,457
- ------------
</TABLE>
* Six months ended October 31, 1993 (unaudited).
** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense ratios due to waiver or reimbursement.
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end, management investment company. The following is a
summary of significant accounting policies consistently followed by the Trust in
the preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. INVESTMENT VALUATIONS--The Board of Trustees ("Trustees") has determined that
the best method currently available for valuing portfolio securities is
amortized cost. The Trust's use of the amortized cost method to value its
portfolio securities is conditioned on its compliance with Rule 2a-7 under
the Investment Company Act of 1940.
B. REPURCHASE AGREEMENTS--It is the policy of the Trust to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve
Book Entry System or to have segregated within the custodian bank's vault,
all securities held as collateral in support of repurchase agreement
investments. Additionally, procedures have been established by the Trust to
monitor, on a daily basis, the market value of each repurchase agreement's
underlying securities to ensure the existence of a proper level of
collateral.
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. 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.
C. INCOME--Interest income is recorded on the accrual basis. Interest income
includes interest and discount earned (net of premium), including original
issue discount as required by the Internal Revenue Code, plus realized net
gains, if any, on portfolio securities.
D. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of the
Internal Revenue Code available to investment companies and distribute to
shareholders each year all of its taxable income. Accordingly, no provision
for federal tax is necessary.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. To the extent the Trust engages
in such transactions, it will do so for the purpose of acquiring portfolio
securities consistent with its investment objectives and policies and not for
the purpose of investment leverage. The Trust will record a when-issued
security and the related liability on the trade date. Until the securities
are received and paid for, the Trust will maintain security positions such
that sufficient liquid assets will be available to make payment for
AUTOMATED CASH MANAGEMENT TRUST
- --------------------------------------------------------------------------------
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.
F. OTHER--Investment transactions are accounted for on the date of the
transaction.
(2) DIVIDENDS
The Trust computes its net income daily and, immediately prior to the
calculation of its net asset value at the close of business, declares and
records dividends to shareholders of record at the time of the previous
computation of the Trust's net asset value. Payment of dividends is made monthly
in cash, or in additional shares at the net asset value on the payable date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
October 31, 1993 capital paid in aggregated $955,399,630 Transactions in Trust
shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
---------------------------------
1994* 1993
- ------------------------------------------------------------ -------------- --------------
<S> <C> <C>
Shares outstanding, beginning of period 1,172,169,981 1,220,211,861
- ------------------------------------------------------------
Shares sold 4,585,222,091 9,875,584,346
- ------------------------------------------------------------
Shares issued to shareholders electing to receive
payment of dividends in Trust Shares 7,119,066 16,100,512
- ------------------------------------------------------------
Shares redeemed (4,809,111,508) (9,939,726,738)
- ------------------------------------------------------------ -------------- --------------
Shares outstanding, end of period 955,399,630 1,172,169,981
- ------------------------------------------------------------ -------------- --------------
</TABLE>
* For the six months ended October 31, 1993.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Federated Management ("Adviser") receives for its services an annual investment
advisory fee equal to .50% of 1% of the Trust's average daily net assets.
Adviser has voluntarily agreed to waive a portion of its advisory fee to the
extent that the Trust's aggregate annual normal operating expenses, including
its investment advisory fee (excluding interest, taxes, brokerage commissions,
insurance premiums, expenses of registering and qualifying the Trust and
extraordinary expenses) exceeded .55% of 1% of average daily net assets. For the
year ended October 31, 1993, the Adviser received an advisory fee of $2,589,787
of which $241,198 was voluntarily waived in accordance with such undertaking.
Administrative personnel and services were provided at approximate cost by
Federated Administrative Services, Inc. ("FAS"). Certain of the Officers and
Trustees of the Trust are Officers and Directors of the above Corporations.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Glen R. Johnson
James E. Dowd President
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
Wesley W. Posvar Edward C. Gonzales
Marjorie P. Smuts Vice President and Treasurer
John W. McGonigle
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
G. Andrew Bonnewell
Assistant Secretary
</TABLE>
Mutual funds are not obligations of or insured by any bank, nor are they
insured by the federal government or any of its agencies.
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.
