MONEY
MARKET
TRUST
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1994
FEDERATED SECURITIES CORP.
- ---------------------------------------------
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
8030103 (4/94)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Money Market
Trust (the "Trust"), which covers the six-month period ended January 31, 1994.
The Report begins with our Investment Review, which is a brief commentary on the
short-term government securities market from the Trust's portfolio manager.
Following the Investment Review, you will find Financial Statements containing
the Trust's Portfolio of Investments.
The Trust is managed to pursue competitive daily income along with the
additional advantages of daily liquidity and stability of principal.* At the end
of the reporting period, approximately half of the Trust's portfolio was
invested in high-quality commercial paper. The remainder was invested in
variable-rate obligations, short-term notes and repurchase agreements.
At the end of the period, the Trust's net assets stood at $611.2 million.
Dividends paid to shareholders during the period totaled $9.5 million.
Thank you for your confidence in Money Market Trust. We welcome your comments
and suggestions.
Sincerely,
Glen R. Johnson
President
March 8, 1994
* 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
when almost all economic releases were positive, and the trend continued for
both November and December. We believe that consumer spending, especially on
durable goods, housing and business investment, should continue to push the
economy forward. But we also believe that a variety of other factors, including
slow growth abroad, continued corporate restructuring and a tighter federal
budget, should help prevent the economy from overheating. In this mild recovery,
inflation has remained under control with respect to both the Consumer Price and
Producer Price Indices. Strength in the Consumer Price 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, the
money supply has been growing, although the measures are still below Federal
Reserve Board (the "FED") targets. The annualized growth rate for M2 over the
past six months has been 2.8%. Utilizing the other aggregates, M1 expanded by
11.8% while M3 increased by 2.6%. We believe that 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 Federal 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 January 31, 1994, the net assets of the Trust
decreased from $712.6 to $611.2 million while the 7-day net yield increased from
2.82% to 2.83%. The effective average maturity of the Trust on January 31, 1994,
was 56 days.
MONEY MARKET TRUST
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1994
(UNAUDITED)
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
*COMMERCIAL PAPER--52.2%
- ---------------------------------------------------------------------------------
FINANCE--AUTOMOTIVE--4.1%
------------------------------------------------------------------
$25,000,000 Ford Credit Receivables Funding Inc., 3.17%-3.35%, 2/16/94-4/12/94 $ 24,893,584
------------------------------------------------------------------ ------------
FINANCE--COMMERCIAL--8.9%
------------------------------------------------------------------
26,000,000 CIT Group Holdings Inc., 3.25%-3.33%, 4/19/94-7/18/94 25,684,604
------------------------------------------------------------------
29,000,000 General Electric Capital Corp., 3.18%-3.37%, 3/15/94-8/4/94 28,665,106
------------------------------------------------------------------ ------------
Total 54,349,710
------------------------------------------------------------------ ------------
FINANCE--RETAIL--2.4%
------------------------------------------------------------------
15,000,000 American General Finance Corp., 3.10%, 4/20/94 14,899,250
------------------------------------------------------------------ ------------
FOOD & BEVERAGE--3.6%
------------------------------------------------------------------
7,100,000 Coca-Cola Financial Corp., 3.20%, 3/21/94 7,069,707
------------------------------------------------------------------
15,000,000 Coca-Cola Co., 3.25%, 6/20/94 14,811,771
------------------------------------------------------------------ ------------
Total 21,881,478
------------------------------------------------------------------ ------------
FUNDING CORPORATION--22.5%
------------------------------------------------------------------
17,000,000 Asset Securitization Cooperative Corp., 3.35%, 3/4/94-5/19/94 16,844,877
------------------------------------------------------------------
31,300,000 CIESCO, LP, 3.12%-3.35%, 2/3/94-7/20/94 31,125,943
------------------------------------------------------------------
22,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 3.14%-3.32%,
2/9/94-7/21/94 21,881,662
------------------------------------------------------------------
11,000,000 Falcon Asset Securitization Corp., 3.28%-3.36%, 2/2/94-2/22/94 10,989,653
------------------------------------------------------------------
27,000,000 New Center Asset Trust (Series A1 +/P1), 3.15%-3.25%,
4/4/94-4/27/94 26,831,122
------------------------------------------------------------------
30,150,000 Preferred Receivables Funding Corp. (PREFCO), 3.12%-3.35%,
2/4/94-4/28/94 30,076,272
------------------------------------------------------------------ ------------
Total 137,749,529
------------------------------------------------------------------ ------------
</TABLE>
MONEY MARKET TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
*COMMERCIAL PAPER--CONTINUED
- ---------------------------------------------------------------------------------
INSURANCE--6.3%
------------------------------------------------------------------
$22,554,000 Prospect Street Senior Loan Port., L.P. (FSA Guaranteed),
3.12%-3.41%, 2/10/94-5/17/94 $ 22,394,285
------------------------------------------------------------------
16,000,000 Prudential Funding Corp., 3.23%-3.30%, 2/2/94-7/26/94 15,842,436
------------------------------------------------------------------ ------------
Total 38,236,721
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OIL & OIL FINANCE-1.6%
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10,000,000 Chevron Transport Corp., 3.33%, 2/11/94 9,990,750
------------------------------------------------------------------ ------------
TELECOMMUNICATIONS-2.8%
------------------------------------------------------------------
17,000,000 AT & T Corp., 3.21%, 2/24/94 16,965,136
------------------------------------------------------------------ ------------
TOTAL COMMERCIAL PAPER 318,966,158
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SHORT-TERM NOTES--6.2%
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BANKING-3.6%
------------------------------------------------------------------
10,000,000 AP Investment Co. (Bankers Trust Co. Put), 3.85%, 9/7/94 10,000,000
------------------------------------------------------------------
12,000,000 NBD Bank N.A. Detroit, 3.30%, 7/11/94 12,001,527
------------------------------------------------------------------ ------------
Total 22,001,527
------------------------------------------------------------------ ------------
FINANCE--AUTOMOTIVE-2.6%
------------------------------------------------------------------
496,793 Premier Auto Trust, 1993-3, Class A-1, 3.375%, 6/15/94 496,677
------------------------------------------------------------------
15,318,535 Premier Auto Trust, 1993-4, Class A-1, 3.425%, 8/2/94 15,319,131
------------------------------------------------------------------ ------------
Total 15,815,808
------------------------------------------------------------------ ------------
TOTAL SHORT-TERM NOTES 37,817,335
------------------------------------------------------------------ ------------
**VARIABLE RATE OBLIGATIONS--32.5%
- ---------------------------------------------------------------------------------
25,000,000 Carco Auto Loan Master Trust Certificates, Series 1993-2, Class
A-1, 3.193%, 2/15/94 25,000,000
------------------------------------------------------------------
5,500,000 Clifford K. & Ruth B. Melberger (PNC Bank, Northeast PA LOC),
3.16%, 2/7/94 5,500,000
------------------------------------------------------------------
22,520,000 Donald R. & Cheryl A. Kenny (Huntington National Bank LOC),
3.163%, 2/7/94 22,520,000
------------------------------------------------------------------
7,300,000 Hunt Club Apts. Inc. (Huntington National Bank LOC), 3.16%, 2/3/94 7,300,000
------------------------------------------------------------------
</TABLE>
MONEY MARKET TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ------------------------------------------------------------------ ------------
<C> <S> <C>
**VARIABLE RATE OBLIGATIONS--CONTINUED
- ---------------------------------------------------------------------------------
$ 5,522,140 Marta Leasing Ltd. (Guaranteed by General Electric Co.), 3.163%,
2/7/94 $ 5,522,140
------------------------------------------------------------------
22,000,000 Money Market Auto Loan Trust, 3.295%, 2/15/94 22,000,000
------------------------------------------------------------------
30,373,618 Northwest Airlines Inc. (Guaranteed by General Electric Co.),
3.171%, 2/7/94 30,373,618
------------------------------------------------------------------
25,000,000 Peoples Security Life Insurance Co., 3.52%, 2/1/94 25,000,000
------------------------------------------------------------------
8,800,000 Shamrock Communications, Inc. (PNC Bank, Northeast PA LOC),
3.163%, 2/7/94 8,800,000
------------------------------------------------------------------
30,000,000 SMM Trust 1993-B (Guaranteed by Morgan Guaranty Trust Co.),
3.55%, 2/12/94 30,000,000
------------------------------------------------------------------
10,400,000 The Scranton Times (PNC Bank, Northeast PA LOC), 3.163%, 2/7/94 10,400,000
------------------------------------------------------------------
5,990,000 Westminster Village Terre Haute Inc. (Huntington National Bank
LOC), 3.16%, 2/3/94 5,990,000
------------------------------------------------------------------ ------------
TOTAL VARIABLE RATE OBLIGATIONS 198,405,758
------------------------------------------------------------------ ------------
***REPURCHASE AGREEMENTS--9.0%
- ---------------------------------------------------------------------------------
23,100,000 Daiwa Securities America, Inc., 3.17%, dated 1/31/94, due 2/1/94 23,100,000
------------------------------------------------------------------
2,000,000 Kidder, Peabody & Co., Inc., 3.20%, dated 1/31/94, due 2/1/94 2,000,000
------------------------------------------------------------------
10,000,000 PaineWebber, Inc., 3.20%, dated 1/31/94, due 2/1/94 10,000,000
------------------------------------------------------------------
20,000,000 S.G. Warburg & Co., Inc., 3.20%, dated 1/31/94, due 2/1/94 20,000,000
------------------------------------------------------------------ ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 1B) 55,100,000
------------------------------------------------------------------ ------------
TOTAL INVESTMENTS, AT AMORTIZED COST $610,289,251+
------------------------------------------------------------------ ------------
</TABLE>
+ 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 reset 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.
MONEY MARKET TRUST
- --------------------------------------------------------------------------------
Note: The categories of investments are shown as a percentage of net assets
($611,221,486) at January 31, 1994.
The following abbreviations are used in this portfolio:
FSA--Financial Security Assurance
LOC--Letter of Credit
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET TRUST
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments, at amortized cost and value (Note 2A) $610,289,251
- --------------------------------------------------------------------------------
Receivable for Trust shares sold 5,624,738
- --------------------------------------------------------------------------------
Interest receivable 792,329
- --------------------------------------------------------------------------------
Prepaid/deferred expenses 34,567
- -------------------------------------------------------------------------------- ------------
Total Assets 616,740,885
- --------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------
Payable to Custodian $4,299,022
- -------------------------------------------------------------------
Dividends Payable 1,208,099
- -------------------------------------------------------------------
Accrued expenses and other liabilities 12,278
- ------------------------------------------------------------------- ----------
Total Liabilities 5,519,399
- -------------------------------------------------------------------------------- ------------
NET ASSETS for 611,221,486 shares of beneficial interest outstanding $611,221,486
- -------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share
($611,221,486 / 611,221,486 shares of beneficial interest outstanding) $1.00
- -------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest income (Note 2C) $11,090,036
- ---------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------
Investment advisory fee (Note 5) $1,341,847
- --------------------------------------------------------------------
Trustees' fees 6,727
- --------------------------------------------------------------------
Administrative personnel and services (Note 5) 258,677
- --------------------------------------------------------------------
Custodian and recordkeeping fees and expenses 73,516
- --------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 4,362
- --------------------------------------------------------------------
Trust share registration costs 13,792
- --------------------------------------------------------------------
Auditing fees 7,500
- --------------------------------------------------------------------
Legal fees 9,022
- --------------------------------------------------------------------
Printing and postage 1,782
- --------------------------------------------------------------------
Taxes 11,016
- --------------------------------------------------------------------
Insurance premiums 8,069
- --------------------------------------------------------------------
Miscellaneous 4,160
- -------------------------------------------------------------------- ----------
Total expenses 1,740,470
- --------------------------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 5) 201,277
- -------------------------------------------------------------------- ----------
Net expenses 1,539,193
- --------------------------------------------------------------------------------- -----------
NET INVESTMENT INCOME $ 9,550,843
- --------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
----------------------------------
1994* 1993
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------------
OPERATIONS--
- ------------------------------------------------------------
Net investment income $ 9,550,843 $ 24,834,637
- ------------------------------------------------------------ --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- ------------------------------------------------------------
Dividends to shareholders from net investment income (9,550,843) (24,834,637)
- ------------------------------------------------------------ --------------- ---------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- ------------------------------------------------------------
Proceeds from sale of shares 1,565,069,451 4,074,533,092
- ------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of dividends declared 1,893,959 4,717,881
- ------------------------------------------------------------
Cost of shares redeemed (1,668,318,693) (4,310,567,648)
- ------------------------------------------------------------ --------------- ---------------
Change in net assets from Trust share transactions (101,355,283) (231,316,675)
- ------------------------------------------------------------ --------------- ---------------
Change in net assets (101,355,283) (231,316,675)
- ------------------------------------------------------------
NET ASSETS--
- ------------------------------------------------------------
Beginning of period 712,576,769 943,893,444
- ------------------------------------------------------------ --------------- ---------------
End of period $ 611,221,486 $ 712,576,769
- ------------------------------------------------------------ --------------- ---------------
</TABLE>
* Six months ended January 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
Year Ended July 31,
--------------------------------------------------------------------------------------------------------------
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 0.04 0.07 0.08 0.09 0.07 0.06 0.07 0.09
- ------------------ ---- ---- ---- ---- ---- ---- ---- ---- ---- -----
LESS DISTRIBUTIONS
- ------------------
Dividends to
shareholders from
net investment
income (0.01) (0.03) (0.04) (0.07) (0.08) (0.09) (0.07) (0.06) (0.07) (0.09)
- ------------------ ---- ---- ---- ---- ---- ---- ---- ---- ---- -----
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 1.44% 3.00% 4.49% 7.05% 8.43% 8.93% 6.94% 5.98% 7.42% 9.32%
- ------------------
RATIOS TO AVERAGE
NET ASSETS
- ------------------
Expenses 0.46 (a) 0.46% 0.46% 0.46% 0.46% 0.45% 0.45% 0.45% 0.45% 0.45%
- ------------------
Net investment
income 2.84 (a) 2.98% 4.40% 6.88% 8.14% 8.58% 6.72% 5.80% 7.17% 8.92%
- ------------------
SUPPLEMENTAL DATA
- ------------------
Net assets, end
of period
(000 omitted) $611,221 $712,577 $943,893 $956,538 $1,189,023 $1,649,683 $1,685,914 $1,747,618 $1,904,972 $1,948,005
- ------------------
</TABLE>
* Six months ended January 31, 1994 (unaudited).
(a) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
MONEY MARKET TRUST
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Trust is registered under the Investment Company Act of 1940, as amended, 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 Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--The Board of Trustees (the "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,
as amended.
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 pursuant to guidelines established by 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.
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, as amended, applicable to regulated investment companies and to distribute
to shareholders each year all of its taxable income. Accordingly, no provisions for
federal tax is necessary.
</TABLE>
MONEY MARKET TRUST
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
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 objective 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 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.
</TABLE>
(3) 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.
(4) 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
January 31, 1994, capital paid-in aggregated $611,221,486. Transactions in Trust
shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
--------------------------------
1994* 1993
-------------- --------------
<S> <C> <C>
Shares outstanding, beginning of period 712,576,769 943,893,444
- --------------------------------------------------------------
Shares sold 1,565,069,451 4,074,533,092
- --------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 1,893,959 4,717,881
- --------------------------------------------------------------
Shares redeemed (1,668,318,693) (4,310,567,648)
- -------------------------------------------------------------- -------------- --------------
Shares outstanding, end of period 611,221,486 712,576,769
- -------------------------------------------------------------- -------------- --------------
</TABLE>
* Six months ended January 31, 1994.
MONEY MARKET TRUST
- --------------------------------------------------------------------------------
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Federated Research ("Adviser") receives for its services an annual investment
advisory fee equal to .40 of 1% of the Trust's average daily net assets, subject
to an undertaking to waive, to the extent of its advisory fee, the amount, if
any, by which the Trust's aggregate annual operating expenses, including its
investment advisory fee but excluding interest, taxes, brokerage commissions,
expenses of registering and qualifying the Trust and its shares under federal
and state laws, expenses of withholding taxes, and extraordinary expenses,
exceed .45 of 1% of average daily net assets. For the six months ended January
31, 1994, the Adviser earned an advisory fee of $1,341,847, of which $201,277
was waived.
Administrative personnel and services were provided at approximate cost by
Federated Administrative Services, Inc. Effective March 1, 1994, Federated
Administrative Services ("FAS") will provide administrative personnel and
services at an annual rate of 0.15 of 1% on the first $250 million of average
aggregate net assets of the total Federated Funds; 0.125 of 1% on the next $250
million; 0.10 of 1% on the next $250 million; and 0.075 of 1% on average
aggregate net assets in excess of $750 million. 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.
Certain of the Officers and Trustees of the Trust are Officers and Directors of
the above corporations.
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
John F. Donahue
John F. Donahue
Chairman
John T. Conroy, Jr.
Glen R. Johnson
William J. Copeland
President
James E. Dowd
J. Christopher Donahue
Lawrence D. Ellis, M.D.
Vice President
Edward L. Flaherty, Jr.
Richard B. Fisher
Vice President
Peter E. Madden
Edward C. Gonzales
Gregor F. Meyer
Vice President and Treasurer
Wesley W. Posvar
John W. McGonigle
Marjorie P. Smuts
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
Mark A. Sheehan
Assistant Secretary
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.
