--------------------------------------------------------------------------------
MONEY
--------------------------------------------------------------------------------
MARKET
--------------------------------------------------------------------------------
MANAGEMENT, INC.
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JUNE 30, 1995
FEDERATED SECURITIES CORP.
(LOGO)
---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
CUSIP 609346200
8080103 (8/95)
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Money Market
Management, Inc., which covers the six-month period ended June 30, 1995. The
report includes the Investment Review, Financial Statements and the Portfolio of
Investments.
As a shareholder of Money Market Management, Inc., you are putting your cash to
work pursuing current income while keeping your principal stable.* In addition,
you have convenient, daily access to your money.
To give you a competitive daily yield, the fund invests in a portfolio of
high-quality money market securities. As of June 30, 1995, slightly less than
half of the fund's assets were invested in high-quality commercial paper, with
35% invested in variable notes and 12% invested in a repurchase agreement.
Dividends paid to shareholders during the period totaled $2.6 million, or $0.03
per share. On June 30, 1995, net assets stood at $102.8 million.
Remember, if you have longer-term financial goals, you can conveniently move all
or part of your assets in Money Market Management, Inc. to any mutual fund in
the Fortress Investment Program. Fortress funds give you a wide range of
opportunities to invest in the stock and bond markets.**
Thank you for choosing Money Market Management, Inc. as a way to put your cash
to work. We will continue to keep you up to date on your investment, and welcome
your comments and suggestions.
Sincerely,
(SIGNATURE)
J. Christopher Donahue
President
August 15, 1995
* Although money market mutual funds seek to maintain a stable net asset value
of $1.00 per share, there is no assurance that they will be able to do so.
Investments in mutual funds are neither insured nor guaranteed by the U.S.
government.
** These privileges may be modified or discontinued at any time. Exchanges may
be subject to a sales load.
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Money Market Management, Inc. invests exclusively in money market instruments
maturing in thirteen months or less. The average maturity of these securities,
computed on a dollar weighted basis, is restricted to 90 days or less. Portfolio
securities must be rated in one of the two highest short-term rating categories
by one or more of the nationally recognized statistical rating organizations or
be of comparable quality to securities having such ratings. Typical security
types include, but are not limited to, commercial paper, certificates of
deposit, time deposits, variable rate instruments and repurchase agreements.
During the reporting period, the Federal Reserve Board (the "Fed") initially
continued its restrictive interest rate stance but gradually moved to a more
neutral stance. The Fed tightened monetary policy by increasing the Fed Funds
target rate from 5.5% to 6.0% in early February, but reversed its path and went
into an easing mode in the beginning of July. Given the current scenario of a
contained inflationary environment as well as an economic growth slowdown, it is
likely that the Fed has achieved its "soft landing." Recent steep declines in
employment statistics, however, may have made the landing seem a bit bumpy. In
this regard, the market is assuming a continued easing of Fed policy through the
end of 1995.
Reflecting this change in sentiment, the money market yield curve changed its
shape drastically during the reporting period. One-month commercial paper rates
declined 29 basis points while six-month rates dropped 48 basis points,
resulting in a very flat money market curve.
The target average maturity range for Money Market Management, Inc. began the
period at 30-40 days but was subsequently lengthened to a 35-45 day range,
reflecting the changing economic and monetary sentiment. In structuring the
fund, there is continued emphasis placed on positioning 30-35% of the fund's
assets in variable rate demand notes and accomplishing a modest barbell
structure.
During the six months ended June 30, 1995, the net assets of Money Market
Management, Inc. decreased from $114.6 million to $102.8 million while the 7-day
net yield increased from 4.94% to 5.07%.* The effective average maturity of the
fund on June 30, 1995, was 46 days.
* Past performance may not be indicative of future performance. Yield will vary.
MONEY MARKET MANAGEMENT, INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------ ------------
<C> <C> <S> <C>
BANK NOTES--1.0%
-----------------------------------------------------------------------------------
BANKING--1.0%
------------------------------------------------------------------
$1,000,000 Mellon Bank NA, Pittsburgh, 6.09%, 11/28/1995 $ 1,000,000
------------------------------------------------------------------ ------------
CERTIFICATE OF DEPOSIT--2.9%
-----------------------------------------------------------------------------------
BANKING--2.9%
------------------------------------------------------------------
3,000,000 MBNA America Bank, NA, 6.19%, 8/14/1995 3,000,000
------------------------------------------------------------------ ------------
(A) COMMERCIAL PAPER--45.1%
-----------------------------------------------------------------------------------
BANKING--12.5%
------------------------------------------------------------------
3,000,000 Canadian Imperial Holdings, Inc., (Guaranteed by Canadian Imperial
Bank of Commerce, Toronto), 5.979%-6.452%, 8/21/1995-8/31/1995 2,971,185
------------------------------------------------------------------
4,000,000 Commerzbank U.S. Finance, Inc., (Guaranteed by Commerzbank AG,
Frankfurt), 5.841%, 11/15/1995 3,913,233
------------------------------------------------------------------
5,000,000 Queensland Alumina Ltd., (Credit Suisse, Zurich LOC),
5.940%-5.975%, 9/7/1995-9/14/1995 4,943,550
------------------------------------------------------------------
1,000,000 Toronto Dominion Holdings (USA), Inc., (Guaranteed by Toronto-
Dominion Bank), 5.870%, 12/8/1995 974,667
------------------------------------------------------------------ ------------
Total 12,802,635
------------------------------------------------------------------ ------------
FINANCE-COMMERCIAL--19.1%
------------------------------------------------------------------
4,000,000 Asset Securitization Cooperative Corp., 5.918%, 9/15/1995 3,950,769
------------------------------------------------------------------
5,000,000 Beta Finance, Inc., 5.979%-6.322%, 7/7/1995-10/10/1995 4,937,501
------------------------------------------------------------------
2,000,000 CIESCO, Inc., 6.356%, 9/21/1995 1,971,983
------------------------------------------------------------------
2,000,000 CIT Group Holdings, Inc., 5.781%, 12/22/1995 1,945,673
------------------------------------------------------------------
4,000,000 General Electric Capital Corp., 6.207%, 10/23/1995 3,923,747
------------------------------------------------------------------
2,000,000 PREFCO-Preferred Receivables Funding Co., 6.092%, 11/15/1995 1,955,018
------------------------------------------------------------------
1,000,000 Sheffield Receivables Corp., 6.10%, 8/9/1995 993,500
------------------------------------------------------------------ ------------
Total 19,678,191
------------------------------------------------------------------ ------------
</TABLE>
MONEY MARKET MANAGEMENT, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------ ------------
<C> <C> <S> <C>
(A) COMMERCIAL PAPER--CONTINUED
-----------------------------------------------------------------------------------
FINANCE-RETAIL--3.9%
------------------------------------------------------------------
$1,000,000 McKenna Triangle National Corp., 6.410%, 10/2/1995 $ 983,958
------------------------------------------------------------------
3,000,000 New Center Asset Trust, A1+/P1 Series, 6.448%-6.824%,
7/7/1995-9/1/1995 2,985,807
------------------------------------------------------------------ ------------
Total 3,969,765
------------------------------------------------------------------ ------------
INSURANCE--1.0%
------------------------------------------------------------------
1,000,000 Marsh & McLennan Cos., Inc., 5.944%, 12/1/1995 975,478
------------------------------------------------------------------ ------------
TELECOMMUNICATIONS--3.8%
------------------------------------------------------------------
4,000,000 AT&T Corp., 5.854%-5.891%, 9/5/1995-9/25/1995 3,947,978
------------------------------------------------------------------ ------------
TOBACCO--4.8%
------------------------------------------------------------------
5,000,000 Philip Morris Capital Corp., 6.107%, 8/1/1995 4,974,124
------------------------------------------------------------------ ------------
TOTAL COMMERCIAL PAPER 46,348,171
------------------------------------------------------------------ ------------
CORPORATE NOTES--4.3%
-----------------------------------------------------------------------------------
AUTO & AUTO FINANCE--3.4%
------------------------------------------------------------------
3,459,793 Banc One Auto Trust, 6.363%, 4/15/1996 3,459,793
------------------------------------------------------------------ ------------
LEASING--0.9%
------------------------------------------------------------------
918,650 Copelco Capital Funding Corp. II Series 1994-A, 6.030%, 10/20/1995 918,650
------------------------------------------------------------------ ------------
TOTAL CORPORATE NOTES 4,378,443
------------------------------------------------------------------ ------------
(B) VARIABLE NOTES--35.0%
-----------------------------------------------------------------------------------
BANKING--21.0%
------------------------------------------------------------------
1,845,000 Canton Township Equity Partners L.P., (Huntington National Bank,
Columbus, OH LOC), 6.120%, 7/6/1995 1,845,000
------------------------------------------------------------------
4,458,000 Congregate Care Corp., (Union Bank LOC), 6.367%, 7/5/1995 4,458,000
------------------------------------------------------------------
5,000,000 Mercy Health Systems, (Morgan Guaranty Trust Co., New York LOC),
6.101%, 7/5/1995 5,000,000
------------------------------------------------------------------
1,335,000 North Center Properties, (Huntington National Bank, Columbus, OH
LOC), 6.120%, 7/6/1995 1,335,000
------------------------------------------------------------------
4,400,000 Poly Foam Intl., Inc., (National City Bank, Cleveland, OH LOC),
6.20%, 7/6/1995 4,400,000
------------------------------------------------------------------
</TABLE>
MONEY MARKET MANAGEMENT, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------ ------------
<C> <C> <S> <C>
(B) VARIABLE NOTES--CONTINUED
-----------------------------------------------------------------------------------
BANKING--CONTINUED
------------------------------------------------------------------
$3,600,000 Ramsey Real Estate Enterprises, (National City Bank, Kentucky
LOC), 6.20%, 7/6/1995 $ 3,600,000
------------------------------------------------------------------
1,000,000 * SMM Trust, Series 1994-B, (Guaranteed by Morgan Guaranty Trust
Co., New York), 6.205%, 8/11/1995 999,936
------------------------------------------------------------------ ------------
Total 21,637,936
------------------------------------------------------------------ ------------
ELECTRICAL EQUIPMENT--0.8%
------------------------------------------------------------------
811,075 GS Funding Corp., (Guaranteed by General Electric Co.), 6.103%,
7/3/1995 811,075
------------------------------------------------------------------ ------------
FINANCE-AUTOMOTIVE--1.0%
------------------------------------------------------------------
1,000,000 State Industrial Development Authority (Alabama) Tax Revenue
Bonds, Series 1994 (GMC Project), (General Motors Corp. LOC),
6.371%, 7/6/1995 1,000,000
------------------------------------------------------------------ ------------
FINANCE-RETAIL--7.8%
------------------------------------------------------------------
5,000,000 * AFS Insurance Premium Receivables Trust Series 1994-A, 6.618%,
7/15/1995 5,000,000
------------------------------------------------------------------
3,000,000 Carco Auto Loan Master Trust, Series 1993-2, Class A1, 6.135%,
7/15/1995 3,000,000
------------------------------------------------------------------ ------------
Total 8,000,000
------------------------------------------------------------------ ------------
INSURANCE--4.4%
------------------------------------------------------------------
4,500,000 Sun Life Insurance Co. of America, 6.213%, 7/3/1995 4,500,000
------------------------------------------------------------------ ------------
TOTAL VARIABLE-NOTES 35,949,011
------------------------------------------------------------------ ------------
</TABLE>
MONEY MARKET MANAGEMENT, INC.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------------------------------------------------------------ ------------
<C> <C> <S> <C>
(C) REPURCHASE AGREEMENTS--11.8%
-----------------------------------------------------------------------------------
$3,100,000 First Chicago Capital Markets, Inc., 6.15%, dated 6/30/1995, due
7/3/1995 $ 3,100,000
------------------------------------------------------------------
4,500,000 PaineWebber, Inc., 6.18%, dated 6/30/1995, due 7/3/1995 4,500,000
------------------------------------------------------------------
4,500,000 S.G. Warburg & Co., Inc., 6.20%, dated 6/30/1995, due 7/3/1995 4,500,000
------------------------------------------------------------------ ------------
TOTAL REPURCHASE AGREEMENTS 12,100,000
------------------------------------------------------------------ ------------
TOTAL INVESTMENTS, AT AMORTIZED COST(D) $102,775,625
------------------------------------------------------------------ ------------
</TABLE>
* Restricted Securities are investments in securities not registered under the
Securities Act of 1933. At the end of the period, these securities amounted
to 5.8% of net assets.
(a) Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
(b) Current rate and next reset date shown.
(c) 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.
(d) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($102,791,623) at June 30, 1995.
The following abbreviation is used throughout this portfolio:
<TABLE>
<S> <C>
LOC -- Letter of Credit
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET MANAGEMENT, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
-------------------------------------------------------------------------------
Investments in securities, at amortized cost and value $102,775,625
-------------------------------------------------------------------------------
Cash 169,960
-------------------------------------------------------------------------------
Income receivable 227,465
-------------------------------------------------------------------------------
Receivable for shares sold 151,020
------------------------------------------------------------------------------- ------------
Total assets 103,324,070
-------------------------------------------------------------------------------
LIABILITIES:
-------------------------------------------------------------------------------
Payable for shares redeemed $440,087
--------------------------------------------------------------------
Income distribution payable 32,961
--------------------------------------------------------------------
Accrued expenses 59,399
-------------------------------------------------------------------- --------
Total liabilities 532,447
------------------------------------------------------------------------------- ------------
Net Assets for 102,791,623 shares outstanding $102,791,623
------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
($102,791,623 / 102,791,623 shares outstanding) $1.00
------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET MANAGEMENT, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------
Interest $3,178,230
---------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------
Investment advisory fee $255,863
----------------------------------------------------------------------
Administrative personnel and services fee 61,987
----------------------------------------------------------------------
Custodian fees 24,739
----------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 103,121
----------------------------------------------------------------------
Directors'/Trustees' fees 3,631
----------------------------------------------------------------------
Auditing fees 7,970
----------------------------------------------------------------------
Legal fees 5,380
----------------------------------------------------------------------
Portfolio accounting fees 25,977
----------------------------------------------------------------------
Shareholder services fee 73,125
----------------------------------------------------------------------
Share registration costs 13,586
----------------------------------------------------------------------
Printing and postage 8,650
----------------------------------------------------------------------
Insurance premiums 2,896
----------------------------------------------------------------------
Taxes 12,714
----------------------------------------------------------------------
Miscellaneous 1,943
---------------------------------------------------------------------- --------
Total expenses 601,582
----------------------------------------------------------------------
Deduct--Waiver of shareholder services fee 33,738
---------------------------------------------------------------------- --------
Net expenses 567,844
--------------------------------------------------------------------------------- ----------
Net investment income $2,610,386
--------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET MANAGEMENT, INC.
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
------------------------------------------------
OPERATIONS--
------------------------------------------------
Net investment income $ 2,610,386 $ 3,930,083
------------------------------------------------ ---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
------------------------------------------------
Distributions from net investment income (2,610,386) (3,930,083)
------------------------------------------------ ---------------- -----------------
SHARE TRANSACTIONS--
------------------------------------------------
Proceeds from sale of Shares 55,734,236 187,854,032
------------------------------------------------
Net asset value of Shares issued to shareholders
in payment of distributions declared 2,366,332 3,517,693
------------------------------------------------
Cost of Shares redeemed (69,896,803) (185,093,267)
------------------------------------------------ ---------------- -----------------
Change in net assets resulting from share
transactions (11,796,235) 6,278,458
------------------------------------------------ ---------------- -----------------
NET ASSETS:
------------------------------------------------
Beginning of period 114,587,858 108,309,400
------------------------------------------------ ---------------- -----------------
End of period $102,791,623 $ 114,587,858
------------------------------------------------ ---------------- -----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET MANAGEMENT, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE YEAR ENDED DECEMBER 31, 1994
30, 1995 --------------------------------------------------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
----------- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <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 $1.00
----
INCOME
FROM
INVESTMENT
OPERATIONS
----
Net
investment
income 0.03 0.03 0.02 0.03 0.05 0.07 0.08 0.07 0.06 0.06 0.07
---- ------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
LESS
DISTRIBUTIONS
----
Distributions
from net
investment
income (0.03) (0.03) (0.02) (0.03) (0.05) (0.07) (0.08) (0.07) (0.06) (0.06) (0.07)
---- ------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
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 $1.00
---- ------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total
Return
(a) 2.57% 3.31% 2.19% 2.86% 5.43% 7.65% 8.73% 7.03% 6.08% 6.28% 7.68%
----
RATIOS
TO
AVERAGE
NET
ASSETS
----
Expenses 1.11%(b) 1.14% 1.17% 1.11% 0.96% 0.89% 0.89% 0.91% 0.89% 0.84% 0.89%
----
Net
investment
income 5.10%(b) 3.27% 2.15% 2.85% 5.32% 7.38% 8.39% 6.81% 5.88% 6.12% 7.41%
----
Expense
waiver/
reimbursement
(c) 0.07%(b) 0.00% 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
----
SUPPLEMENTAL
DATA
----
Net
assets,
end of
period
(000
omitted) $102,792 $114,588 $108,309 $127,711 $168,889 $194,836 $204,393 $188,239 $178,813 $205,723 $238,454
----
</TABLE>
(a) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(b) Computed on an annualized basis.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET MANAGEMENT, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
The Fund is registered under the Investment Company Act of 1940, as amended (the
"Act"), as a diversified open-end, management investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
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.
INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--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
transaction.
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 Directors (the
"Directors"). 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.
INVESTMENT INCOME, EXPENSES, AND DISTRIBUTIONS--Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the
"Code"). Distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the 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
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--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
MONEY MARKET MANAGEMENT, INC.
--------------------------------------------------------------------------------
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.
RESTRICTED SECURITIES--Restricted securities are securities that may only
be resold upon registration under federal securities laws or in
transactions exempt from such registration. Many restricted securities may
be resold in the secondary market in transactions exempt from registration.
In some cases, the restricted securities may be resold without registration
upon exercise of a demand feature. Such restricted securities may be
determined to be liquid under criteria established by the Board of
Directors. The Fund will not incur any registration costs upon such
resales. Restricted securities are valued at amortized cost in accordance
with Rule 2a-7 under the Investment Company Act of 1940. Additional
information on each restricted security held at June 30, 1995 is as
follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION DATE ACQUISITION COST
----------------------------------------------------- ----------------- -----------------
<S> <C> <C>
AFS Insurance Premium Receivables Trust Series 1994-A 8/16/94 $5,000,000
SMM Trust Series 1994-B 8/31/94 999,470
</TABLE>
OTHER--Investment transactions are accounted for on the trade date.
(3) CAPITAL STOCK
At June 30, 1995, there were 50,000,000,000 shares of $0.001 par value capital
stock authorized. Capital paid-in aggregated $102,791,623. Transactions in
capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE 30, PERIOD ENDED
1995 DECEMBER 31, 1994
-------------- ------------------
<S> <C> <C>
Shares Sold 55,734,236 187,854,032
------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 2,366,332 3,517,693
------------------------------------------------------
Shares redeemed (69,896,803) (185,093,267)
------------------------------------------------------ ------------- ----------------
Net change resulting from share transactions (11,796,235) 6,278,458
------------------------------------------------------ ------------- ----------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Advisers, the Fund's investment adviser, (the
"Adviser"), receives for its services an annual investment advisory fee based on
the average daily net assets of the Fund as follows: 0.50% on the first $500
million, 0.475% on the next $500 million, 0.45% on the next $500 million, 0.425%
on the next $500 million, and 0.40% thereafter.
MONEY MARKET MANAGEMENT, INC.
--------------------------------------------------------------------------------
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS"), under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. The FAS fee is based on the level of average aggregate
daily net assets of all funds advised by subsidiaries of Federated Investors for
the period. The administrative fee received during the period of the
Administrative Services Agreement shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to .25 of
1% of average daily net assets of the Fund for the period. This fee is to obtain
certain services for shareholders and to maintain the shareholder accounts. FSS
may voluntarily choose to waive a portion of this fee. FSS can modify or
terminate this voluntary waiver at any time at its sole discretion.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund. The fee is based on the size, type, and number of accounts and
transactions made by shareholders.
GENERAL--Certain of the Officers and Directors of the Fund are Officers and
Directors or Trustees of the above companies.
MONEY MARKET MANAGEMENT, INC.
--------------------------------------------------------------------------------
[THIS PAGE INTENTIONALLY LEFT BLANK]
<TABLE>
<S> <C>
DIRECTORS OFFICERS
---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. J. Christopher Donahue
William J. Copeland President
J. Christopher Donahue Edward C. Gonzales
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. John W. McGonigle
Edward L. Flaherty, Jr. Executive Vice President and Secretary
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
John E. Murray, Jr. David M. Taylor
Wesley W. Posvar Treasurer
Marjorie P. Smuts Charles H. Field
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other government agency.
Investment in mutual funds involves risk, including possible loss of principal.
Although money market funds seek to maintain a stable net asset value of $1.00
per share, there is no assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus, which contains facts
concerning its objective and policies, management fees, expenses and other
information.
