SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to shareholders for Money Market
Trust. This report covers the first half of the trust's fiscal year, which is
the six-month reporting period ended January 31, 1999. It begins with an
investment review on the short-term market from the trust's portfolio manager.
Following the investment review are the trust's portfolio of investments and
financial statements.
Over the six-month reporting period, dividends paid to shareholders
totaled $0.03 per share. The trust's 30-day net yield on January 31, 1999
was 4.75%. 1
In Money Market Trust, your ready cash is at work pursuing competitive daily
income along with the additional advantages of daily liquidity and stability of
principal. 2 At the end of the reporting period, 48.7% of the trust's $424.2
million portfolio was invested in high-quality commercial paper. The remainder
was invested in variable-rate obligations, repurchase agreements, short-term
notes, loan participation securities, and certificates of deposit.
Thank you for your confidence in the daily earning power of Money Market Trust.
We welcome your comments and suggestions.
Sincerely,
[Graphic]
Glen R. Johnson
President
March 15, 1999
1 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 trust's current earnings.
2 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the trust.
Investment Review
Money Market Trust (the "Trust") invests in money market instruments maturing in
13 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 the highest short-term rating category 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.
Economic growth during the second half of 1998 resumed its above-average pace
after a brief slowdown in the second quarter. Specifically, third quarter gross
domestic product (GDP) registered 3.9% while fourth quarter GDP topped the year
at 5.6%. Despite the high growth, inflation remained subdued by all measures.
The consumer price index rose just 1.6% on an annualized basis for the six month
period ended January 31, 1999. For the same time period, the producer price
index increased 1.7%, while the employment cost index grew 3.5%. Despite the
higher number associated with wage and benefit increases, the uptick in
productivity more than outweighed the higher cost base. This
productivity/technology factor has been referred to by Federal Reserve Board
(the "Fed") Chairman Greenspan in many of his positive discussions on economic
outlook.
Thirty-day commercial paper started the reporting period at 5.56% on July 31,
1998, hovered in the 5.50% range area until September 23, 1998 when expectations
began to surface about the Fed lowering rates, and then increased as high as
5.51% during the month of December 1998 due to year-end spread pressures. Those
pressures evaporated in January 1999 and the reporting period ended with a 4.81%
rate for 30-day commercial paper.
The money market yield curve looked lower but similarly shaped over the
six-month reporting period. One-month commercial paper rates declined 0.75%
while six-month rates declined 0.77%, reflecting the accommodative Fed policy,
based on concern in the market about the lack of liquidity in the U.S. credit
markets. The Fed responded to this by lowering the federal funds target rate
three times during the reporting period-0.25% on September 29, 1998, 0.25% on
October 15, 1998, and 0.25% on November 17, 1998 - to end the reporting period
with a 4.75% target rate. The Fed also lowered the discount rate twice by 0.25%
to 4.75% on October 15, 1998, and by 0.25% on November 17, 1998 to 4.50%.
The target average maturity range for Money Market Trust was lengthened from
40-50 days to 45-55 days on October 1, 1998, reflecting the Fed's concern about
liquidity in the credit markets and the Fed easing scenario. In structuring the
Trust, there is continued emphasis placed on positioning 30-35% of the Trust's
assets in variable rate demand notes and accomplishing a modest barbell
structure.
During the six months ended January 31, 1999, the net assets of Money Market
Trust increased from $412.1 to $423.8 million while the 7-day net yield
decreased from 5.24% to 4.69%. The effective average maturity of the Trust on
January 31, 1999, was 49 days.
Portfolio of Investments
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM NOTES-5.7%
FINANCE - AUTOMOTIVE-2.0%
$ 6,202,422 Ford Credit Auto Owner Trust 1998-C, Class A-2, 5.670%,
6/15/1999 $ 6,202,422
2,115,802 MMCA Auto Owner Trust 1998-1, Class A-1, 5.621%, 8/16/1999 2,115,802
TOTAL 8,318,224
FINANCE - EQUIPMENT-0.8%
1,164,151 Case Equipment Receivables Trust 1998-B, Class A-1, 5.608%,
9/15/1999 1,164,151
2,011,049 Copelco Capital Funding Trust 1998-A, Class A-1, 5.680%,
8/15/1999 2,011,049
TOTAL 3,175,200
FINANCE - RETAIL-0.4%
1,701,755 Greentree Recreational, Equipment & Consumer Trust 1998-C,
Class A-1,
5.554%, 8/15/1999 1,701,755
INSURANCE-2.5%
2,451,060 Americredit Automobile Receivables Trust 1998-C, Class A-1,
(Insured by FSA), 5.380%, 9/12/1999 2,451,060
3,313,685 Americredit Automobile Receivables Trust 1998-D, Class A-1,
(Insured by FSA), 5.199%, 11/12/1999 3,313,685
5,000,000 WFS Financial Owner Trust 1998-C, Class A-1, (Guaranteed by FSA),
5.395%, 11/20/1999 5,000,000
TOTAL 10,764,745
TOTAL SHORT-TERM NOTES 23,959,924
CERTIFICATES OF DEPOSIT-5.9%
BANKING-5.9%
10,000,000 Bankers Trust Co., New York, 5.645%, 2/26/1999 9,999,770
15,000,000 First National Bank of Maryland, Baltimore, 5.020%,
1/25/2000 14,995,742
TOTAL CERTIFICATES OF DEPOSIT 24,995,512
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-48.7% 1
BANKING-5.0%
$ 21,512,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank,
Cincinnati
Support Agreement), 5.243% - 5.660%, 3/1/1999 - 6/1/1999 $ 21,340,349
BROKERAGE-1.6%
7,000,000 Salomon Smith Barney Holdings, Inc., 5.145%, 3/8/1999 6,965,428
FINANCE - AUTOMOTIVE-2.1%
9,000,000 Ford Motor Credit Corp., 5.139%, 2/5/1999 8,994,950
FINANCE - COMMERCIAL-16.1%
15,000,000 Asset Securitization Cooperative Corp., 5.156%, 4/16/1999 14,843,983
19,000,000 General Electric Capital Corp., 4.970% - 5.460%, 2/17/1999 -
8/9/1999 18,699,337
16,975,000 PREFCO-Preferred Receivables Funding Co., 5.069% - 5.164%,
3/8/1999 - 3/25/1999 16,877,737
10,000,000 Receivables Capital Corp., 5.450%, 2/12/1999 9,983,531
8,000,000 Sheffield Receivables Corp., 5.369%, 2/5/1999 7,995,307
TOTAL 68,399,895
FINANCE - RETAIL-7.0%
10,000,000 American Express Credit Corp., 5.023%, 4/12/1999 9,904,722
17,000,000 Associates Corp. of North America, 4.867% - 5.401%, 3/9/1999
- 4/19/1999 16,846,884
3,000,000 Associates First Capital B.V., (Guaranteed by Associates
First Capital Corp.),
4.908%, 5/17/1999 2,957,738
TOTAL 29,709,344
INSURANCE-8.2%
19,000,000 CXC, Inc., 5.138% - 5.161%, 3/15/1999 - 5/17/1999 18,835,838
16,000,000 Marsh & McLennan Cos., Inc., 5.112% - 5.599%, 3/26/1999 -
5/5/1999 15,805,995
TOTAL 34,641,833
MACHINERY, EQUIPMENT, AUTO-2.8%
12,000,000 Eaton Corp., 5.026% - 5.649%, 5/11/1999 - 5/21/1999 11,818,437
OIL & OIL FINANCE-5.9%
25,000,000 Chevron Transport Corp., (Guaranteed by Chevron Corp.),
5.087%, 2/19/1999 24,937,500
TOTAL COMMERCIAL PAPER 206,807,736
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
LOAN PARTICIPATION-4.7%
FINANCE - AUTOMOTIVE-1.2%
$ 5,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed
by General Motors Acceptance Corp.), 5.120%, 2/1/1999 $ 5,000,000
FINANCE - EQUIPMENT-3.5%
15,000,000 Pitney Bowes Credit Corp., 5.046%, 2/10/1999 14,981,156
TOTAL LOAN PARTICIPATION 19,981,156
VARIABLE RATE OBLIGATIONS-20.2% 2
BANKING-6.8%
3,740,000 500 South Front St. L.P., Series A, (Huntington National
Bank, Columbus, OH LOC), 4.910%, 2/4/1999 3,740,000
4,000,000 Barker Property Management, LLC, (Series 1998), (Wachovia
Bank of NC, N.A., Winston-Salem LOC), 4.940%, 2/3/1999 4,000,000
4,500,000 Economic Development Partnership of Alabama, Inc., Series
1998, (Amsouth Bank N.A., Birmingham LOC), 4.970%, 2/4/1999 4,500,000
2,620,000 Franklin County, OH, Series 1998 Promark Electronics, Inc.
Project, (Bank One, Ohio, N.A. LOC), 4.910%, 2/4/1999 2,620,000
3,100,000 Scranton Times, L.P., (PNC Bank, N.A. LOC), 4.938%, 2/1/1999 3,100,000
4,800,000 Scranton Times, L.P., Series 1997, (PNC Bank, N.A. LOC),
4.938%, 2/1/1999 4,800,000
5,990,000 Westminster Village Terre Haute, Inc., (Huntington National
Bank, Columbus, OH LOC), 4.910%, 2/4/1999 5,990,000
TOTAL 28,750,000
ELECTRICAL EQUIPMENT-5.6%
3,700,000 Alabama State IDA, General Electric Project, (General
Electric Co. LOC),
4.900%, 2/4/1999 3,700,000
2,629,407 Marta Leasing Ltd., (Guaranteed by General Electric Co.),
4.938%, 2/1/1999 2,629,407
17,422,897 Northwest Airlines, Inc., (Guaranteed by General Electric
Co.), 4.938%, 2/1/1999 17,422,897
TOTAL 23,752,304
FINANCE - RETAIL-0.5%
2,000,000 3 Bishop's Gate Residential Mortgage Trust 1998-2, Class A-1,
5.280%, 2/10/1999 2,000,000
INSURANCE-7.3%
10,000,000 General American Life Insurance Co., 5.140%, 2/22/1999 10,000,000
3,000,000 Jackson National Life Insurance Co., 5.040%, 2/22/1999 3,000,000
18,000,000 Monumental Life Insurance Company, 5.250%, 2/1/1999 18,000,000
TOTAL 31,000,000
TOTAL VARIABLE RATE OBLIGATIONS 85,502,304
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-14.9% 4
$ 18,000,000 Bear, Stearns and Co., 4.820%, dated 1/29/1999, due 2/1/1999 $ 18,000,000
20,000,000 HSBC Securities, Inc., 4.820%, dated 1/29/1999, due 2/1/1999 20,000,000
20,000,000 NationsBanc Montgomery Securities, Inc., 4.820%, dated
1/29/1999, due 2/1/1999 20,000,000
5,000,000 Societe Generale Securities Corp., 4.730%, dated 1/29/1999,
due 2/1/1999 5,000,000
TOTAL REPURCHASE AGREEMENTS 63,000,000
TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 424,246,632
</TABLE>
1 Each issue shows the rate of discount at the time of purchase for discount
issues or the coupon for interest bearing issues.
2 Current rate and next reset date shown.
3 Securities exempt from registration under the Securities Act of 1933, as
amended, may only be sold to dealers and other exempt investors. These
securities have been determined to be liquid according to guidelines established
by the Board of Trustees.
4 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.
5 Also represent cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($423,823,219) at January 31, 1999.
The following acronyms are used throughout this portfolio:
FSA -Financial Security Assurance
IDA -Industrial Development Authority
LOC -Letter of Credit
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase agreements $ 63,000,000
Investments in securities 361,246,632
Total investments in securities, at amortized cost and value $ 424,246,632
Cash 133,802
Income receivable 1,093,767
Receivable for shares sold 31,526
Prepaid expenses 2,648
TOTAL ASSETS 425,508,375
LIABILITIES:
Income distribution payable 1,674,736
Accrued expenses 10,420
TOTAL LIABILITIES 1,685,156
Net assets for 423,823,219 shares outstanding $ 423,823,219
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PROCEEDS PER SHARE:
$423,823,219 / 423,823,219 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 12,841,957
EXPENSES:
Investment advisory fee $ 942,292
Administrative personnel and services fee 177,622
Custodian fees 18,846
Transfer and dividend disbursing agent fees and expenses 58,422
Directors'/Trustees' fees 7,728
Auditing fees 7,485
Legal fees 1,080
Portfolio accounting fees 50,177
Shareholder services fee 588,933
Share registration costs 16,096
Printing and postage 12,613
Insurance premiums 21,259
Miscellaneous 8,323
TOTAL EXPENSES 1,910,876
WAIVERS:
Waiver of investment advisory fee $ (363,555)
Waiver of shareholder services fee (471,146)
TOTAL WAIVERS (834,701)
Net expenses 1,076,175
Net investment income $ 11,765,782
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(UNAUDITED) ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 11,765,782 $ 22,484,657
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income (11,765,782) (22,484,657)
SHARE TRANSACTIONS:
Proceeds from sale of shares 1,198,310,009 2,195,189,173
Net asset value of shares issued to shareholders in payment of
distributions declared 1,677,125 3,867,601
Cost of shares redeemed (1,188,267,755) (2,250,964,853)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 11,719,379 (51,908,079)
Change in net assets 11,719,379 (51,908,079)
NET ASSETS:
Beginning of period 412,103,840 464,011,919
End of period $ 423,823,219 $ 412,103,840
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994
<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 0.03 0.05 0.05 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.03)
NET ASSET VALUE, END
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.53% 5.35% 5.19% 5.31% 5.42% 3.18%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 0.46% 2 0.46% 0.46% 0.46% 0.46% 0.46%
Net investment income 4.99% 2 5.24% 5.09% 5.22% 5.32% 3.11%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $423,823 $412,104 $464,012 $513,687 $507,272 $539,983
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market Trust (the "Trust") 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 Trust is stability of principal and current
income consistent with stability of principal.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Trust'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 Trust to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Trust to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Trust's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Trust could receive less
than the repurchase price on the sale of collateral securities.
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 Trust's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Trust may engage in when-issued or delayed delivery transactions. The Trust
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
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
Trustees. The Trust 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.
USE OF ESTIMATES
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.
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, 1999, capital paid-in aggregated $423,823,219.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
Shares sold 1,198,310,009 2,195,189,173
Shares issued to shareholders in payment of
distributions declared 1,677,125 3,867,601
Shares redeemed (1,188,267,755) (2,250,964,853)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 11,719,379 (51,908,079)
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Research, The Trust's investment adviser (the "Adviser"), receives for
its services an annual investment advisory fee equal to 0.40% of the Trust's
average daily net assets. The Adviser will waive, to the extent of its advisory
fee, the amount, if any, by which the Trust's aggregate annual operating
expenses (excluding interest, taxes, brokerage commissions, expenses of
registering and qualifying the Trust and its shares under federal and state law,
expenses of withholding taxes, and extraordinary expenses) exceed 0.45% of
average daily net assets of the Trust.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Trust with administrative personnel and services. The
fee paid to FServ is based on 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 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 Company ("FSSC"), the Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC 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 FSSC, serves as transfer and dividend disbursing
agent for the Trust. 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 Trust's accounting records for which it receives a fee. The
fee is based on the level of each Trust's average daily net assets for the
period, plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000
Similar to other financial organizations, the Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust'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 Trust'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 Trust.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Research, the Trust's Adviser, merged into
Federated Investment Management Company (formerly Federated Advisers).
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
WILLIAM J. COPELAND
JOHN F. CUNNINGHAM
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
GLEN R. JOHNSON
President
J. CHRISTOPHER DONAHUE
Executive Vice President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
NICHOLAS J. SEITANAKIS
Assistant Secretary
GAIL CAGNEY
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. 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 trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses, and other
information.
Money Market Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Money Market Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 609900105
8030103 (3/99)
