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 reporting period from January 1,
1998 through June 30, 1998. The report begins with commentary by the fund's
portfolio manager and follows with a complete listing of the fund's holdings and
its financial statements.
This high-quality money market fund puts your cash to work pursuing income every
day while keeping your principal stable.* And, you have convenient, daily access
to your money.
During the six-month reporting period, the fund paid shareholders a total of
$0.02 per share in dividends. On June 30, 1998, the fund's $86 million portfolio
was invested in high-quality money market securities that included repurchase
agreements (29.3%), high-quality commercial paper (25.7%), variable notes
(18.9%), short-term notes (15.1%), and certificates of deposit (10.9%).
Thank you for choosing this money market fund as a convenient, liquid daily cash
investment. We will continue to keep you up to date on your investment, and
welcome your comments and suggestions.
Sincerely,
/s/ J. Christopher Donahue
J. Christopher Donahue
President
August 15, 1998
* 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. An investment in
the fund is not insured or guaranteed by the U.S. government.
INVESTMENT REVIEW
Money Market Management, Inc. invests in money market instruments maturing in
397 days 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 first half of 1998, inflation has remained subdued although
inflationary pressures are building. The strength in domestic consumer spending
and housing has been offset by the turbulence in many Asian economies and a
domestic inventory overhang as imports to the U.S. have exceeded exports.
Monetary policy has remained on hold throughout the first half of 1998 due to
the continued problems in Asia, despite strong domestic economic growth.
Nevertheless, the Federal Reserve Board has maintained a bias toward tightening
due to strong domestic growth, tight labor markets and rapidly rising labor
costs. The dampening inflationary effects of the emerging markets and domestic
inventory adjustments could prove to be temporary and inflationary pressures
could rise.
Market interest rates should remain in a narrow trading range throughout the
second half of 1998. The 30-day commercial paper rate began 1998 at a high of
5.56% and traded as low as 5.43% on January 22, 1998. Thirty-day commercial
paper has traded around the federal funds target rate of 5.50% throughout the
first half of 1998. Ninety-day commercial paper rates have also traded within
this range as the yield curve remains extremely flat.
The target average maturity range for the fund remained in the 35- to 45-day
area throughout the six-month reporting period. In structuring the fund, there
is continued emphasis placed on positioning 30%-35% of the fund's core assets in
variable rate demand notes and accomplishing a modest barbell structure.
However, on June 30, 1998, 18.9% of the fund's core assets were held in variable
rate demand notes.
During the six month reporting period ended June 30, 1998, the total net assets
of the fund increased from $81.3 to $86.0 million while the seven-day net yield
decreased from 4.81% on January 1, 1998, to 4.65% on June 30, 1998.* The
effective average maturity of the fund on June 30, 1998 was 45 days.
* Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the fund's current earnings.
SHAREHOLDER MEETING RESULTS
A Special Meeting of Shareholders of Money Market Management, Inc. (the
"Company") was held on May 15, 1998. On February 26, 1998, the record date for
shareholders eligible to vote at the meeting, there were 78,206,393 total
outstanding shares. The following items were considered by shareholders of the
Company and the results of their voting were as follows:
AGENDA ITEM 1: To elect three Directors.*
Shares Voted Shares Withheld
For Authority
Thomas G. Bigley 49,179,163 2,521,888
John E. Murray, Jr.,
J.D., S.J.D. 49,179,163 2,521,888
Nicholas P. Constantakis 49,179,163 2,521,888
AGENDA ITEM 2: To approve or disapprove an amendment in the Company's
fundamental investment policy on diversification of its investments.
Shares Voted Shares Voted Shares Broker
For Against Abstain Non-Vote
46,222,637 1,537,164 2,949,860 991,390
* The following Directors of the Company continued their terms: John F. Donahue,
John T. Conroy, Jr., William J. Copeland, J. Christopher Donahue, James E.
Dowd, Esq., Lawrence D. Ellis, M.D., Edward L. Flaherty, Jr., Esq., Peter E.
Madden, Wesley W. Posvar and Marjorie P. Smuts.
AGENDA ITEM 3: To approve or disapprove changing from a fundamental to an
operating policy the Company's policy regarding the maturity of money market
securities in which it will invest.
Shares Voted Shares Voted Shares Broker
For Against Abstain Non-Vote
46,876,158 1,082,885 2,750,618 991,390
AGENDA ITEM 4: To approve or disapprove changing from a fundamental to an
operating policy the Company's ability to invest in restricted securities.
Shares Voted Shares Voted Shares Broker
For Against Abstain Non-Vote
44,351,796 3,259,886 3,097,979 991,390
PORTFOLIO OF INVESTMENTS
Money Market Management, Inc.
June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Certificate of Deposit--10.9%
Banking--10.9%
$1,000,000 Bankers Trust Co., New York, 5.95%, 9/9/1998 $ 999,908
1,500,000 Canadian Imperial Bank of Commerce, Toronto, 5.74%, 4/1/1999 1,499,353
3,000,000 Rabobank Nederland, Utrecht, 5.69%, 1/7/1999 2,998,102
3,900,000 Societe Generale, Paris, 5.68% - 5.93%, 8/6/1998 - 4/27/1999 3,899,263
Total Certificates of Deposit 9,396,626
(a) Commercial Paper--25.7%
Banking--5.7%
1,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal
de Belgique, Brussles), 5.50%, 11/9/1998 979,986
4,000,000 Gotham Funding Corp., 5.64% - 5.67%, 7/10/1998 - 7/14/1998 3,993,085
Total 4,973,071
Brokerage--1.1%
1,000,000 Merrill Lynch & Co., Inc., 5.52%, 9/17/1998 988,040
Chemicals--1.0%
827,000 IMC Global, Inc., 5.71% - 5.72%, 7/22/1998 824,242
Finance - Automotive--2.3%
2,000,000 Chrysler Financial Corp., 5.53%, 9/14/1998 1,976,958
Finance - Commercial--9.3%
3,000,000 General Electric Capital Corp., 5.47%, 7/30/1998 2,986,781
2,000,000 Receivables Capital Corp., 5.57%, 7/15/1998 1,995,668
3,000,000 Sheffield Receivables Corp., 5.525% - 5.300%, 8/26/1998 - 8/27/1998 2,974,055
Total 7,956,504
Finance - Equipment--0.8%
700,000 Comdisco, Inc., 5.72%, 7/28/1998 696,998
Finance - Retail--2.3%
2,000,000 New Center Asset Trust, A1+/P1 Series, 5.49%, 7/29/1998 1,991,460
Forest Products--0.5%
400,000 Temple-Inland, Inc., 6.05%, 7/9/1998 399,463
Industrial Products--0.8%
</TABLE>
<TABLE>
<S> <C> <C>
700,000 Praxair, Inc., 5.65%, 7/27/1998 697,144
Principal
Amount Value
(a) Commercial Paper--continued
Oil & Oil Finance--0.9%
$780,000 Occidental Petroleum Corp., 5.70%, 7/6/1998 $ 779,383
Retail--1.0%
850,000 Safeway, Inc., 5.67% - 5.80%, 7/10/1998 - 9/29/1998 845,316
Total Commercial Paper 22,128,579
(c) Notes - Variable--18.9%
Banking--5.9%
1,000,000 Bankers Trust Co., New York, 5.770%, 7/1/1998 999,367
2,000,000 (b)Liquid Asset Backed Securities Trust, Series 1996-3,
(Westdeutsche Landesbank Girozentrale Swap Agreement), 5.676%,
7/15/1998 2,000,000
1,000,000 Long Lane Master Trust III, Series 1997-C, 5.749%, 8/3/1998 1,000,000
1,035,000 North Center Properties, (Huntington National Bank, Columbus,
OH LOC), 5.660%, 7/2/1998 1,035,000
Total 5,034,367
Finance - Retail--8.1%
2,000,000 AFS Insurance Premium Receivables Trust, (Series 1994-A),
6.212%, 7/15/1998 2,000,000
2,000,000 (b)Associates Corp. of North America, 5.790%, 7/1/1998 1,999,504
3,000,000 Carco Auto Loan Master Trust 1993-2, (Series 1993-2 Class A1),
5.580%, 7/15/1998 3,000,000
Total 6,999,504
Insurance--4.9%
3,500,000 General American Life Insurance Co., 5.860%, 7/23/1998 3,500,000
710,975 (b)Liquid Asset Backed Securities Trust, Series 1997-3 Senior
Notes, (Guaranteed by AMBAC), 5.658%, 9/28/1998 710,975
Total 4,210,975
Total Notes - Variable 16,244,846
Short-Term Notes--15.1%
Banking--1.2%
1,000,000 SALTS II Cayman Islands Corp., (Guaranteed by Bankers Trust
International, PLC), 5.738%, 6/17/1999 1,000,000
Brokerage--2.3%
2,000,000 Goldman Sachs & Co., 5.660%, 7/27/1998 2,000,000
Finance - Automotive--1.6%
692,118 Chase Manhattan Auto Owner Trust 1998-B, Class A-1,
5.578%, 5/10/1999 692,118
500,000 Chase Manhattan Auto Owner Trust 1998-C, Class A1,
5.588%, 7/9/1999 499,944
208,705 Ford Credit Auto Owner Trust 1997-B, Class A-1, 5.748%,
10/15/1998 208,705
Total 1,400,767
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Short-Term Notes--continued
Finance - Commercial--7.3%
$2,350,000 CIT Group Holdings, Inc., 6.125% - 6.500%, 7/13/1998 - 9/1/1998 $ 2,350,682
3,900,000 (b)Triangle Funding Ltd., 5.656%, 11/16/1998 3,900,000
Total 6,250,682
Finance - Equipment--0.9%
801,990 Green Tree Lease Finance 1997-1 LLC, Class A1, 5.906%, 1/20/1999 801,990
Insurance--1.2%
500,000 ContiMortgage Home Equity Loan Trust 1998-2, Class A-1, (Guaranteed
by MBIA Insurance Corporation), 5.649%, 6/15/1999 500,000
500,000 WFS Financial 1998-B Owner Trust, Class A-1, (Guaranteed by FSA),
5.658%, 7/20/1999 500,000
Total 1,000,000
Recreation--0.6%
500,000 GreenTree Recreational, Equipment & Consumer Trust 1998-B, Class A-1, 5.669%,
7/15/1999 500,000
Total Corporate Notes 12,953,439
(d) Repurchase Agreements--29.3%
4,000,000 ABN AMRO Chicago Corp., 6.250%, dated 6/30/1998, due 7/1/1998 4,000,000
4,000,000 Fuji Government Securities, Inc., 5.880%, dated 6/30/1998, due 7/1/1998 4,000,000
4,000,000 Goldman Sachs Group, LP, 6.250%, dated 6/30/1998, due 7/1/1998 4,000,000
3,000,000 Morgan Stanley Group, Inc., 6.250%, dated 6/30/1998, due 7/1/1998 3,000,000
4,000,000 PaineWebber Group, Inc., 5.870%, dated 6/30/1998, due 7/1/1998 4,000,000
4,000,000 Salomon Brothers, Inc., 6.250%, dated 6/30/1998, due 7/1/1998 4,000,000
1,000,000 Societe Generale Securities Corp., 6.000%, dated 6/30/1998, due 7/1/1998 1,000,000
1,200,000 UBS Securities, Inc., 6.050%, dated 6/30/1998, due 7/1/1998 1,200,000
Total Repurchase Agreements 25,200,000
Total Investments (at amortized cost)(e) $85,923,490
</TABLE>
(a) Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
(b) Denotes a restricted security which is subject to restrictions on resale
under federal securities laws. At June 30, 1998, these securities amounted
to $8,610,479 which represents 10.0% of net assets.
(c) Floating rate note with current rate and next reset date shown. (d) 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.
(e) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($85,992,966) at June 30, 1998.
The following acronyms are used throughout this portfolio:
AMBAC --American Municipal Bond Assurance Corporation FSA --Federal Security
Assurance LLC --Limited Liability Corporation LOC --Letter of Credit LP
- --Limited Partnership MBIA --Municipal Bond Investors Assurance PLC --Public
Limited Company
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Money Market Management, Inc.
June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $25,200,000
Investments in securities 60,723,490
Total investments in securities, at amortized cost and value $85,923,490
Income receivable 519,649
Receivable for shares sold 500
Prepaid expenses 4,605
Total assets 86,448,244
Liabilities:
Income distribution payable 321,332
Payable to Bank 88,982
Accrued expenses 44,964
Total liabilities 455,278
Net Assets for 85,992,966 shares outstanding $85,992,966
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$85,992,966 (divided) 85,992,966 shares outstanding $1.00
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Money Market Management, Inc.
Six Months Ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $2,303,266
Expenses:
Investment advisory fee $ 201,307
Administrative personnel and services fee 61,987
Custodian fees 11,154
Transfer and dividend disbursing agent fees and expenses 97,707
Directors' fees 5,973
Auditing fees 6,878
Legal fees 2,534
Portfolio accounting fees 20,656
Shareholder services fee 100,654
Share registration costs 11,765
Printing and postage 7,964
Insurance premiums 2,521
Miscellaneous 3,258
Total expenses 534,358
Waivers --
Waiver of investment advisory fee $ (37,375)
Waiver of shareholder services fee (52,340)
Total waivers (89,715)
Net expenses 444,643
Net investment income $1,858,623
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Money Market Management, Inc.
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
(unaudited) December 31,
June 30, 1998 1997
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 1,858,623 $ 3,971,252
Distributions to Shareholders--
Distributions from net investment income (1,858,623) (3,971,252)
Share Transactions--
Proceeds from sale of shares 66,880,431 128,239,157
Net asset value of shares issued to shareholders in payment of
distributions declared 1,422,534 3,647,147
Cost of shares redeemed (63,619,478) (137,957,643)
Change in net assets resulting from share transactions 4,683,487 (6,071,339)
Change in net assets 4,683,487 (6,071,339)
Net Assets:
Beginning of period 81,309,479 87,380,818
End of period $ 85,992,966 $ 81,309,479
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Money Market Management, Inc.
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Six Months
Ended
(unaudited)
June 30, Year Ended June 30,
1998 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.02 0.05 0.05 0.05 0.03 0.02
Less distributions
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.03) (0.02)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return (a) 2.32% 4.69% 4.56% 5.13% 3.31% 2.19%
Ratios to average net assets
Expenses 1.10%* 1.10% 1.06% 1.08% 1.14% 1.17%
Net investment income 4.62%* 4.58% 4.46% 4.99% 3.27% 2.15%
Expense waiver/reimbursement (b) 0.22%* 0.15% 0.13% 0.15% 0.00% 0.07%
Supplemental data
Net assets, end of period (000 omitted) $85,993 $81,309 $87,381 $101,390 $114,588 $108,309
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) 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)
NOTES TO FINANCIAL STATEMENTS
Money Market Management, Inc.
June 30, 1998 (unaudited)
Organization
Money Market Management, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end management
investment company. The investment objective of the Company is to achieve
current income consistent with stability of principal.
Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Company in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations
The Company'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 Company 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 Company 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 Company will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Company'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 Company 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 Company'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 Company may engage in when-issued or delayed delivery transactions. The
Company 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.
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
Directors. The Company will not incur any registration costs upon such resales.
Restricted securities are valued at amortized cost in accordance with Rule 2a-7
under the Act.
Additional information on each restricted security held at June 30, 1998 is as
follows:
<TABLE>
<CAPTION>
Security Acquisition Date Acquisition Cost
<S> <C> <C>
Associates Corp. of North Amercia 12/8/97 $1,998,960
Liquid Asset Backed Securities Trust, Series 1996-3 8/15/96 2,000,000
Liquid Asset Backed Securities Trust, Series 1997-3 6/27/97 670,645
Triangle Funding Ltd. 11/4/97 3,900,000
Use of Estimates
</TABLE>
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
Other
Investment transactions are accounted for on the trade date.
Capital Stock
At June 30, 1998, there were 50,000,000,000 shares of $0.001 par value capital
stock authorized. Capital paid-in aggregated $85,992,966. Transactions in
capital stock were as follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 1998 December 31, 1997
<S> <C> <C>
Shares sold 66,880,431 128,239,157
Shares issued to shareholders in payment of distributions declared 1,422,534 3,647,147
Shares redeemed (63,619,478) (137,957,643)
Net change resulting from share transactions 4,683,487 (6,071,339)
</TABLE>
Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee
Federated Advisers, the Company's investment adviser (the "Adviser"), receives
for its services an annual investment advisory fee based on the average daily
net assets of the Company as follows: 0.500% on the first $500 million, 0.475%
on the next $500 million, 0.450% on the next $500 million, 0.425% on the next
$500 million, and 0.400% thereafter. The Adviser may voluntarily choose to waive
any portion of its fee. The Adviser can modify or terminate this voluntary
waiver at any time at its sole discretion.
Administrative Fee
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Company with administrative personnel and services. The
fee paid to FServ is based on the level of average aggregate daily net assets of
all funds advised by subsidiaries of Federated Investors, Inc. for the period.
The administrative fee received during any fiscal year 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, the Company will pay Federated Shareholder Services ("FSS") up to
0.25% of average daily net assets of the Company for the period. The fee paid to
FSS is used to finance certain services for shareholders and to maintain
shareholder accounts. FSS may voluntarily choose to waive any portion of its
fee. FSS can modify or terminate this voluntary waiver at any time at its sole
discretion.
Transfer and Dividend Disbursing Agent Fees and Expenses
FServ, through its subsidiary, Federated Shareholder Services Company ("FSSC")
serves as transfer and dividend disbursing agent for the Company. The fee paid
to FSSC is based on the size, type, and number of accounts and transactions made
by shareholders.
Portfolio Accounting Fees
Fserv maintains the Company's accounting records for which it receives a fee.
The fee is based on the level of the Company's average daily net assets for the
period, plus out-of-pocket expenses.
General
Certain of the Officers and Directors of the Company are Officers and Directors
or Trustees of the above companies.
Year 2000
Similar to other financial organizations, the Company could be adversely
affected if the computer systems used by the Company's service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. The Company's Adviser and administrator are taking measures
that they believe are reasonably designed to address the Year 2000 issue with
respect to computer systems that they use and to obtain reasonable assurances
that comparable steps are being taken by each of the Company's other service
providers. At this time, however, there can be no assurance that these steps
will be sufficient to avoid any adverse impact to the Company.
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
Nicholas P. Constantakis
William J. Copeland
J. Christopher Donahue
James E. Dowd, Esq.
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr., Esq.
Peter E. Madden
John E. Murray, Jr., J.D., S.J.D.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
J. Christopher Donahue
President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer,
and Secretary
Richard B. Fisher
Vice President
Karen M. Brownlee
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 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.
Money Market
Management, Inc.
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
1-800-341-7400
www.federatedinvestors.com
Semi-Annual Report
to Shareholders
June 30, 1998
Cusip 609346200
8080103 (8/98)
