SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report for Money Market Obligations
Trust-Institutional Capital Shares. This report combines information for three
money market mutual funds that are part of the Trust. The report covers the
first half of each fund's fiscal year, which is the six-month period ended
January 31, 2000. It begins with investment reviews by the portfolio managers on
each fund's market. Following the investment reviews are the funds' portfolios
of investments and financial statements.
As money market funds, each of these funds gives you the opportunity to put your
cash to work pursuing daily dividends while giving you the comfort of a high
level of liquidity and a stable net asset value of $1.00 per share. 1 The
following are fund-by-fund performance highlights:
MUNICIPAL OBLIGATIONS FUND pursues tax-free income by investing in a portfolio
of short-term securities issued by municipalities across the United States. 2
During the six-month reporting period, the fund paid tax-free dividends totaling
$0.02 per share to shareholders of Institutional Capital Shares.2 At the end of
the reporting period, the fund's net assets totaled $602 million.
PRIME CASH OBLIGATIONS FUND invests in a well-diversified portfolio of
high-quality money market securities. During the six-month reporting period,
dividends paid to shareholders of Institutional Capital Shares totaled $0.03 per
share. At the end of the reporting period, the fund's net assets totaled $4.7
billion.
PRIME VALUE OBLIGATIONS FUND invests in a well-diversified portfolio of
high-quality money market securities. During the six-month reporting period,
dividends paid to shareholders of Institutional Capital Shares each totaled
$0.03 per share. At the end of the reporting period, the fund's net assets
totaled $2.3 billion.
Thank you for selecting one or more of these funds as a convenient way to help
your ready cash earn daily income. As always, we welcome your questions,
comments or suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the funds.
2 Income may be subject to the federal alternative minimum tax. Unless otherwise
exempt, shareholders are required to pay federal income tax on dividends.
Economic Overview
The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions
over the funds' semi-annual reporting period ended January 31, 2000. These two
quarter-point moves, combined with an initial tightening of similar magnitude at
the end of June 1999, brought the federal funds target rate back to 5.50%. This
was the level of the federal funds target rate prior to the fourth quarter of
1998, when the Fed infused liquidity into the fixed income markets during a
period of global economic turmoil.
Robust economic growth prompted the policy moves by the Fed. Economic growth in
1999 exceeded 4.00%, well in excess of what is generally considered to be the
long-run non-inflationary growth potential of the economy. Consumer spending
continued to be the main drive behind the impressive pace of growth, and
although mortgage rates increased by close to 150 basis points over the
reporting period, the interest-sensitive sectors of the economy remained
persistently strong. Inflationary pressures at the producer and consumer levels
remained remarkably absent in spite of this growth. However, while the notion of
a non-inflationary potential, traditionally 2.00% to 2.50%, has increased in
recent times due to evidence that productivity enhancements have been
controlling inflationary pressures, continued growth well above 3.00% is likely
to keep the Fed on its current tightening course in the near future.
During the reporting period, short-term interest rates reflected, and largely
anticipated, the monetary policy tightenings that took place. The yield on the
1-year agency discount note, for example, began the reporting period at 5.66%,
traded up to 5.80% by the time of the Fed's decision to tighten rates in August,
and up again to 5.90% by the second tightening of the reporting period in
November. The yield continued to climb steadily to close the reporting period at
6.43%, two days prior to another decision by the Fed to tighten, which brought
the federal funds target rate to its current 5.75% level.
Much attention, both in the financial markets and the popular press, was given
in the fourth quarter of 1999 to the potential dislocations feared at year end
due to the Year 2000 effect. In hindsight, of course, the world experienced very
few troubles, and the economic impact appears to be non- existent. However, very
short-term government securities did seem to reflect a "flight to quality"
concentrated in the last few weeks of the trading year. Furthermore, the steps
that the Fed had taken to assure that sufficient liquidity would be available to
the banking system at year end in the event of a crisis caused rates on
repurchase agreements to trade around 3.00% in the last few days of the year,
well below the then typical level of 5.50%.
Investment Review
MUNICIPAL OBLIGATIONS FUND
Municipal Obligations Fund invests in high-quality, short-term tax-exempt
securities. Typical investments include, but are not limited to, variable rate
demand notes (VRDNs), commercial paper equivalents and fixed-rate notes and
bonds. For the six-month reporting period, the net assets of the fund increased
from $535 million to $602 million, while the seven-day net yield for the fund's
Institutional Capital Shares increased from 3.10% to 3.34%. 1 The average
maturity of the fund on January 31, 2000, was 47 days.
Interest rates in the tax-exempt money markets over the reporting period were
influenced by the Federal Reserve Board (the "Fed") tightenings as well as
expectations of future tightenings. Supply and demand factors also played a
large role in the absolute level of interest rates, as demand (cash inflows into
the market) remained steady over most of the reporting period. New supply of
fixed-rate notes was low relative to demand as municipalities continued to
benefit from a strong economy and record tax collections.
Yields on VRDNs, which comprised close to 70% of the fund's assets, started the
reporting period at 3.00%, but drifted slowly upward reflecting the Fed's
interest rate moves as well as supply and demand. In late December, yields
spiked to over 5.50%, reflecting the reluctance of dealers to position these
instruments over year-end. Strong demand in January brought yields down to 3.00%
and they ended the reporting period at 3.25%.
Going forward, the average maturity of the fund will continue to be managed in
accordance with expectations of continued monetary policy tightenings.
Therefore, the fund will continue to keep the average maturity short, waiting
for yields to rise further before locking in attractive fixed-rate note
opportunities. Fund management continues to watch, with great interest, market
developments in order to best serve our municipal clients.
1 Past performance is no guarantee of future results. Yields will vary. Yields
quoted for money market funds most closely reflect the fund's current earnings.
PRIME CASH OBLIGATIONS FUND AND PRIME VALUE OBLIGATIONS FUND
Prime Cash Obligations Fund and Prime Value Obligations Fund invest 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 of Prime Cash Obligations Fund 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. Portfolio securities of Prime Value Obligations Fund 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,
short term notes, time deposits, variable rate instruments and repurchase
agreements.
The Federal Reserve Board (the "Fed") continued to act preemptively to quell
inflationary threats and raised the federal funds target rate from 5.00% to
5.25% on August 24, 1999, and then again from 5.25% to 5.50% on November 16,
1999. The market had already anticipated such actions, resulting in a much
steeper money market yield curve throughout most of the reporting period.
Thirty-day commercial paper started the reporting period at 5.11% and then
traded steadily up to the 5.50% level by the end of November. Seasonal and Year
2000 effects took hold in December and caused the 30-day commercial paper rate
to spike as high as 6.46%, before retreating to 5.78% at the end of the
reporting period.
The target average maturity range for the funds was decreased from 45- 55 days
to 40-50 days on January 10, 2000, reflecting the Fed's concern about
overzealousness in the stock markets and potential inflationary threats. In
structuring the funds, there was continued emphasis placed on positioning
30%-35% of the funds' core assets in variable rate demand notes and
accomplishing a modest barbell structure.
During the six months ended January 31, 2000, the net assets of Prime Cash
Obligations Fund increased from $3.1 billion to $4.7 billion, while the
seven-day net yield for the fund's Institutional Capital Shares increased from
4.84% to 5.55%. 1 The effective average maturity of this fund on January 31,
2000 was 42 days.
During the six months ended January 31, 2000, the net assets of Prime Value
Obligations Fund increased from $2.1 billion to $2.3 billion, while the
seven-day net yield for the fund's Institutional Capital Shares increased from
4.87% to 5.59%. 1 The effective average maturity of this fund on January 31,
2000 was 44 days.
1 Past performance is no guarantee of future results. Yields 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 Municipal Obligations Fund, Prime Cash
Obligations Fund and Prime Value Obligations Fund was held on September 23,
1999. On July 26, 1999, the record date for shareholders voting at the meeting,
there were 509,899,505 total outstanding shares of the Municipal Obligations
Fund, 3,196,183,791 total outstanding shares of the Prime Cash Obligations Fund,
and 2,129,862,319 total outstanding shares of the Prime Value Obligations Fund.
The following items were considered by shareholders of the funds and the results
of their voting were as follows:
AGENDA ITEM 1:
To elect five Trustees. 1
MUNICIPAL OBLIGATIONS FUND
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
Nicholas P. Constantakis 308,562,058 1,285,396
John F. Cunningham 308,562,058 1,285,396
J. Christopher Donahue 308,562,058 1,285,396
Charles F. Mansfield, Jr. 308,562,058 1,285,396
John S. Walsh 308,562,058 1,285,396
</TABLE>
PRIME CASH OBLIGATIONS FUND
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
Nicholas P. Constantakis 1,903,382,954 559,977
John F. Cunningham 1,903,382,954 559,977
J. Christopher Donahue 1,903,382,954 559,977
Charles F. Mansfield, Jr. 1,903,382,954 559,977
John S. Walsh 1,903,382,954 559,977
</TABLE>
PRIME VALUE OBLIGATIONS FUND
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
Nicholas P. Constantakis 1,184,406,669 4,078,150
John F. Cunningham 1,184,503,612 3,981,207
J. Christopher Donahue 1,184,503,612 3,981,207
Charles F. Mansfield, Jr. 1,184,503,612 3,981,207
John S. Walsh 1,184,503,612 3,981,207
</TABLE>
1 The following Trustees continued their terms: John F. Donahue, Thomas G.
Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D., Peter E. Madden,
John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts.
AGENDA ITEM 2:
MUNICIPAL OBLIGATIONS FUND
To approve a proposed amendment and Plan of Reorganization between Money Market
Obligations Trust II, on behalf of it series, Municipal Obligations Fund (the
"Municipal Fund") and Money Market Obligations Trust, on behalf of its series,
Municipal Obligations Fund (the "New Municipal Fund") whereby the New Municipal
Fund would acquire all of the assets of the Municipal Fund in exchange for
shares of the New Municipal Fund to be distributed pro rata by the Municipal
Fund to its shareholders in complete liquidation and termination of the
Municipal Fund.
<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTENTIONS NON-VOTES
<S> <C> <C> <C>
291,381,643 1,044,999 904,413 16,516,399
</TABLE>
PRIME CASH OBLIGATIONS FUND
To approve a proposed amendment and Plan of Reorganization between Money Market
Obligations Trust II, on behalf of it series, Prime Cash Obligations Fund (the
"Prime Cash Fund") and Money Market Obligations Trust, on behalf of its series,
Prime Cash Obligations Fund (the "New Prime Cash Fund") whereby the New Prime
Cash Fund would acquire all of the assets of the Prime Cash Fund in exchange for
shares of the New Prime Cash Fund to be distributed pro rata by the Prime Cash
Fund to its shareholders in complete liquidation and termination of the Prime
Cash Fund.
<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTENTIONS NON-VOTES
<S> <C> <C> <C>
1,855,098,576 7,139,425 24,202,022 17,502,908
</TABLE>
PRIME VALUE OBLIGATIONS FUND
To approve a proposed amendment and Plan of Reorganization between Money Market
Obligations Trust II, on behalf of it series, Prime Value Obligations Fund (the
"Prime Value Fund") and Money Market Obligations Trust, on behalf of its series,
Prime Value Obligations Fund (the "New Prime Value Fund") whereby the New Prime
Value Fund would acquire all of the assets of the Prime Value Fund in exchange
for shares of the New Prime Value Fund to be distributed pro rata by the Prime
Value Fund to its shareholders in complete liquidation and termination of the
Prime Value Fund.
<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTENTIONS NON-VOTES
<S> <C> <C> <C>
1,051,986,244 20,628,726 16,208,046 99,661,803
</TABLE>
Portfolio of Investments
Municipal Obligations Fund
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
99.7% 1
ALABAMA-1.3%
$ 5,000,000 Hoover, AL Board of
Education, Series 1999 C,
3.80% BANs, 8/1/2000 $ 5,000,000
3,000,000 Tuscaloosa County, AL IDA,
Series 1995 A, Weekly VRDNs
(Tuscaloosa Steel
Corp.)/(Bayerische
Landesbank Girozentrale
LOC) 3,000,000
TOTAL 8,000,000
ARIZONA-0.7%
2,250,000 Pima County, AZ IDA, SFM, Roaring Fork Series 1999- 6, Weekly
VRDNs (GNMA COL)/(Bank of New
York, New York LIQ) 2,250,000
1,800,000 Yuma County, AZ Airport
Authority, Inc., Series
1997 A, Weekly VRDNs (Bank
One, Arizona N.A. LOC) 1,800,000
TOTAL 4,050,000
ARKANSAS-2.4%
1,000,000 Arkadelphia, AR IDRBs,
Series 1996, Weekly VRDNs
(Siplast, Inc.)/(Den
Danske Bank A/S LOC) 1,000,000
4,000,000 Arkansas Development
Finance Authority, Series
1995, Weekly VRDNs (Paco
Steel & Engineering
Corporation
Project)/(Union Bank of
California LOC) 4,000,000
1,800,000 Hope, AR Solid Waste
Disposal Revenue Bonds,
Series 1994, 4.25% CP
(Temple-Inland Forest
Products Corp.)/(Temple-
Inland, Inc. GTD),
Mandatory Tender 2/1/2000 1,800,000
7,400,000 Siloam Springs, AR IDRB,
Series 1994, Weekly VRDNs
(La-Z Boy Chair Co.)/(Bank
One, Michigan LOC) 7,400,000
TOTAL 14,200,000
COLORADO-1.5%
4,000,000 Arapahoe County, CO HFA,
4.20% TOBs (Reserve at
South Creek)/(FGIC INS),
Mandatory Tender 2/1/2000 4,000,000
4,955,000 2 Denver, CO City & County
Airport Authority, CDC
Class A Certificates,
Series 1997 K, 3.45% TOBs
(MBIA INS)/(CDC Municipal
Products, Inc. LIQ),
Optional Tender 5/11/2000 4,955,000
TOTAL 8,955,000
DISTRICT OF COLUMBIA-0.8%
5,000,000 District of Columbia HFA,
Series 1999 B, 3.30% BANs
(CDC Municipal
Products, Inc.), 6/15/2000 5,000,000
FLORIDA-1.4%
2,995,000 Hillsborough County, FL
HFA, PT-259, Weekly VRDNs
(GNMA COL)/(Credit Suisse
First Boston LIQ) 2,995,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
FLORIDA-CONTINUED
$ 2,600,000 Miami-Dade County, FL IDA,
Series 1999 A, Weekly VRDNs
(Airis Miami LLC)/(AMBAC
INS)/(Bayerische
Landesbank Girozentrale
LIQ) $ 2,600,000
3,000,000 Pinellas County, FL HFA,
Daily VRDNs (Chase
Manhattan Bank N.A., New
York LOC) 3,000,000
TOTAL 8,595,000
GEORGIA-1.0%
6,000,000 Savannah, GA EDA, Series
1995 A, Weekly VRDNs (Home
Depot, Inc.) 6,000,000
HAWAII-1.8%
11,000,000 Honolulu, HI City & County
Multifamily, Series 1999,
Block J Project, 5.015%
TOBs (Bayerische
Landesbank Girozentrale),
Mandatory Tender 12/1/2000 11,000,000
IDAHO-0.9%
5,401,000 2 Idaho Housing Agency, PA-
115, 3.70% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
2/17/2000 5,401,000
ILLINOIS-7.8%
10,500,000 Chicago, IL, Chicago
Midway Airport Special
Facility Revenue Bonds,
Series 1998, 3.95% TOBs
(Signature Flight Support
Corp.)/(Bayerische
Landesbank Girozentrale
LOC), Optional Tender
6/1/2000 10,500,000
3,000,000 Chicago, IL, Gas Supply
Revenue Bonds, Series 1993
B, 4.05% TOBs (Peoples Gas
Light & Coke Co.), Optional
Tender 12/1/2000 3,000,000
3,100,000 Chicago, IL Series 1997,
Weekly VRDNs (Trendler
Components,
Inc.)/(American National
Bank & Trust Co., Chicago
LOC) 3,100,000
3,960,000 2 Chicago, IL SFM, PT-290,
3.90% TOBs (GNMA
COL)/(Landesbank Hessen-
Thueringen, Frankfurt
LIQ), Optional Tender
10/5/2000 3,960,000
1,200,000 Galva, IL Series 1999,
Weekly VRDNs (John H. Best
& Sons, Inc.)/(Norwest
Bank Minnesota, N.A. LOC) 1,200,000
6,000,000 Illinois Development
Finance Authority, Series
1997, Weekly VRDNs (Toyal
America, Inc.)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 6,000,000
2,100,000 Illinois Development
Finance Authority, EDRB,
Series 1995, Weekly VRDNs
(Evapco, Inc.
Project)/(Bank of America,
N.A. LOC) 2,100,000
3,200,000 Illinois Development
Finance Authority, IDRB,
Series 1995, Weekly VRDNs
(Dickson Weatherproof Nail
Co.)/(Bank of America,
N.A. LOC) 3,200,000
7,615,000 2 Illinois Housing
Development Authority, PT-
7, 3.375% TOBs (AMBAC
INS)/(Commerzbank AG,
Frankfurt LIQ), Optional
Tender 5/11/2000 7,615,000
1,620,000 Martinsville, IL IDRB,
Series 1995, Weekly VRDNs
(PAP-R Products Co.
Project)/(Bank One,
Illinois, N.A. LOC) 1,620,000
2,415,000 Peoria, IL Series 1995,
Weekly VRDNs (Praise and
Leadership Elementary
School)/(Bank One,
Illinois, N.A. LOC) 2,415,000
2,230,000 Rockford, IL EDRB, 4.20%
TOBs (Independence Village
of Rockford)/(Paribas,
Paris LOC), Optional
Tender 12/1/2000 2,230,000
TOTAL 46,940,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
INDIANA-4.2%
$ 2,000,000 Clarksville, IN Series
1997, Weekly VRDNs (Metal
Sales Manufacturing
Corp.)/(Firstar Bank,
N.A., Cincinnati LOC) $ 2,000,000
3,435,000 Elkhart County, IN Series
1997, Weekly VRDNs (Hart
Housing Group,
Inc.)/(KeyBank, N.A. LOC) 3,435,000
1,500,000 Huntington, IN EDRB,
Series 1999, Weekly VRDNs
(DK Enterprises
LLC)/(Norwest Bank
Minnesota, N.A. LOC) 1,500,000
3,400,000 Indianapolis, IN EDRB,
Series 1999, Weekly VRDNs
(Chip Ganassi Racing
Teams)/(PNC Bank, Delaware
LOC) 3,400,000
2,155,000 Kendallville, IN IDRB,
Series 1995, Weekly VRDNs
(Rivnut Real Estate Ltd.
Project)/(National City
Bank, Ohio LOC) 2,155,000
1,385,000 Richmond, IN EDRB, Series
1996, Weekly VRDNs
(Holland Colors Americas,
Inc. Project)/(Bank One,
Indiana, N.A. LOC) 1,385,000
4,000,000 Rushville, IN Series 1996,
Weekly VRDNs (Fujitsu Ten
Corp. of America)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 4,000,000
4,000,000 Westfield, IN EDRB, Series
1998, Weekly VRDNs
(Standard Locknut,
Inc.)/(Bank One, Indiana,
N.A. LOC) 4,000,000
3,200,000 Whitley County, IN Series
1999, Weekly VRDNs
(Undersea Sensor Systems,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 3,200,000
TOTAL 25,075,000
IOWA-0.3%
2,000,000 Iowa Falls, IA Series 1998,
Weekly VRDNs (Heartland
Pork Enterprises,
Inc.)/(Bank of Nova
Scotia, Toronto LOC) 2,000,000
KANSAS-0.3%
1,900,000 Olathe, KS Industrial
Revenue Bonds, Series
1995, Weekly VRDNs (Garmin
International, Inc.
Project)/(Bank of America,
N.A. LOC) 1,900,000
KENTUCKY-1.0%
1,730,000 Jefferson County, KY
Industrial Building
Revenue Bonds, Series
1995, Weekly VRDNs (Derby
Industries, Inc.)/(Bank
One, Kentucky LOC) 1,730,000
4,110,000 Paris, KY Weekly VRDNs
(Monessen Holdings
LLC)/(Bank One, Kentucky
LOC) 4,110,000
TOTAL 5,840,000
LOUISIANA-1.7%
5,000,000 Lake Charles, LA Harbor &
Terminal District, Revenue
Bonds, Series 1995 A,
Weekly VRDNs (Polycom-
Huntsman, Inc.)/(National
City, Pennsylvania LOC) 5,000,000
3,400,000 Louisiana HFA, Trust
Receipts, FR/RI-52, Series
1999, Weekly VRDNs
(GNMA COL)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ) 3,400,000
1,600,000 Ouachita Parish, LA IDB,
Series 1998, Weekly VRDNs
(Dixie Carbonic,
Inc.)/(Bank One, Illinois,
N.A. LOC) 1,600,000
TOTAL 10,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
MAINE-0.3%
$ 1,840,000 Trenton, ME Series 1998,
Weekly VRDNs (Hinckley
Co.)/(KeyBank, N.A. LOC) $ 1,840,000
MARYLAND-4.7%
2,468,000 Frederick County, MD
Series 1998 A, Weekly VRDNs
(Thogar LLC)/(Allfirst
LOC) 2,468,000
6,600,000 Harford County, MD Series
1989, Weekly VRDNs
(Harford Commons
Associates
Facility)/(Allfirst LOC) 6,600,000
1,386,000 Harford County, MD
Variable Rate Demand/Fixed
Rate Refunding Bond (1989
Issue) Weekly VRDNs
(Harford Commons
Associates
Facility)/(Allfirst LOC) 1,386,000
1,000,000 Maryland EDC, Tax Exempt
Adjustable Mode IDRBs,
Series 1998, Weekly VRDNs
(Morrison Health Care,
Inc.)/(Wachovia Bank of
NC, N.A. LOC) 1,000,000
4,375,000 Maryland Industrial
Development Financing
Authority, Special
Facility Airport Revenue
Bonds, Series 1999, 3.95%
TOBs (Signature Flight
Support Corp.)/(Bayerische
Landesbank Girozentrale
LOC), Optional Tender
6/1/2000 4,375,000
2,560,000 Maryland State Community
Development
Administration, Series
1990 A, Weekly VRDNs
(College
Estates)/(Allfirst LOC) 2,560,000
3,000,000 Maryland State Community
Development
Administration, Series
1990 B, Weekly VRDNs
(Cherry Hill Apartment
Ltd.)/(Bank of America,
N.A. LOC) 3,000,000
3,000,000 Maryland State Energy
Financing Administration,
IDRB, Series 1988, Weekly
VRDNs (Morningstar Foods,
Inc.)/(First Union
National Bank, Charlotte,
N.C. LOC) 3,000,000
4,000,000 Wicomico County, MD EDRB,
Series 1994, Weekly VRDNs
(Field Container Co. LP)/(
Northern Trust Co.,
Chicago, IL LOC) 4,000,000
TOTAL 28,389,000
MASSACHUSETTS-0.5%
3,000,000 Massachusetts IFA, IDRB,
Series 1995, Weekly VRDNs
(Dunsirn Industries, Inc.
Project)/(Firstar Bank,
Milwaukee LOC) 3,000,000
MINNESOTA-5.9%
1,400,000 Blaine, MN Series 1997,
Weekly VRDNs (Plastic
Enterprises,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 1,400,000
3,600,000 Brooklyn Center, MN
Shingle Creek Tower, Series 1999, 4.93% TOBs (Bank of America,
N.A.),
Mandatory Tender 4/1/2000 3,600,000
4,000,000 Coon Rapids, MN Series
1999, Weekly VRDNs
(Assurance Mfg. Co.,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 4,000,000
10,195,000 2 Dakota County & Washington
County MN, Housing &
Redevelopment Authority,
MERLOTS, Series J, 4.00%
TOBs (United States
Treasury COL)/(First Union
National Bank, Charlotte,
N.C. LIQ), Optional Tender
2/1/2000 10,195,000
5,000,000 2 Dakota County, Washington
County & Anoka City, MN
Housing & Redevelopment
Authority, MERLOTS, Series
H, 4.00% TOBs (United
States Treasury
COL)/(First Union National
Bank, Charlotte, N.C.
LIQ), Optional Tender
2/1/2000 5,000,000
2,600,000 Minneapolis, MN IDA,
Series 1999, Weekly VRDNs
(Viking Materials,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 2,600,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
MINNESOTA-CONTINUED
$ 2,755,000 Savage, MN Series 1998,
Weekly VRDNs (Fabcon,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) $ 2,755,000
1,870,000 Springfield, MN Series
1998, Weekly VRDNs (Ochs
Brick Co.)/(Norwest Bank
Minnesota, N.A. LOC) 1,870,000
2,250,000 White Bear Lake, MN Series
1999, Weekly VRDNs (Taylor
Corp.)/(Norwest Bank
Minnesota, N.A. LOC) 2,250,000
2,000,000 White Bear Lake, MN Century
Townhomes, Series 1997,
4.5475% TOBs (Westdeutsche
Landesbank Girozentrale),
Optional Tender 5/1/2000 2,000,000
TOTAL 35,670,000
MISSISSIPPI-7.3%
1,168,000 Greenville, MS IDA, Weekly
VRDNs (Mebane Packaging
Corp.)/(First Union
National Bank, Charlotte,
N.C. LOC) 1,168,000
6,455,000 Mississippi Business
Finance Corp., Series
1995, Weekly VRDNs
(Mississippi Baking
Company LLC
Project)/(Allfirst LOC) 6,455,000
5,400,000 Mississippi Business
Finance Corp., Series
1995, Weekly VRDNs
(Schuller International,
Inc.)/(Bank of New York,
New York LOC) 5,400,000
7,500,000 Mississippi Home Corp.,
Multifamily Housing
Adjustable/Fixed Rate
Revenue Bonds, Series
1997, Weekly VRDNs
(Windsor Park
Apartments)/(SouthTrust
Bank of Alabama,
Birmingham LOC) 7,500,000
9,805,000 2 Mississippi Home Corp.,
PT-218B, 3.65% TOBs (GNMA
COL)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
7/6/2000 9,805,000
9,790,000 Mississippi Regional
Housing Authority No. II,
Series 1998, 4.00% TOBs
(Bradford Park
Apartments)/(Amsouth Bank
N.A., Birmingham LOC),
Mandatory Tender 10/1/2000 9,790,000
4,000,000 Warren County, MS IDA,
Weekly VRDNs (Vesper Corp.)/(PNC Bank, N.A.
LOC) 4,000,000
TOTAL 44,118,000
MISSOURI-1.6%
1,750,000 Kansas City, MO IDA, Series
1999, Weekly VRDNs (B&B
Investments LLC)/(Norwest
Bank Minnesota, N.A. LOC) 1,750,000
1,600,000 Springfield, MO IDA,
Series 1999, Weekly VRDNs
(Dabryan Coach Builders,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 1,600,000
1,000,000 St. Louis, MO IDA, Series
1997, Weekly VRDNs (Cee Kay
Supply)/(Commerce Bank,
Kansas City, N.A. LOC) 1,000,000
5,000,000 St. Louis, MO IDA, Homer G.
Phillips Dignity House,
Series 1999, 5.10% TOBs
(Bayerische Landesbank
Girozentrale) 12/1/2000 5,000,000
TOTAL 9,350,000
MULTI STATE-11.2%
18,100,000 Charter Mac Floater
Certificates Trust I,
(Third Tranche) Weekly
VRDNs (MBIA
INS)/(Bayerische
Landesbank Girozentrale,
Commerzbank AG, Frankfurt
and Credit Communal de
Belgique, Brussels LIQs) 18,100,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
MULTI STATE-CONTINUED
$ 20,000,000 Charter Mac Floater
Certificates Trust I,
(Fifth Tranche) Weekly
VRDNs
(MBIA INS)/(Bayerische
Landesbank Girozentrale,
Commerzbank AG, Frankfurt
and Credit Communal de
Belgique, Brussels LIQs) $ 20,000,000
29,338,000 Clipper Tax-Exempt Trust
(AMT MultiState), Series A, Weekly VRDNs (State Street Bank and
Trust Co.
LIQ) 29,338,000
TOTAL 67,438,000
NEBRASKA-1.2%
6,995,000 Nebraska Investment
Finance Authority,
MERLOTS, Series 1999 A,
Weekly VRDNs (GNMA
COL)/(First Union National
Bank, Charlotte, N.C. LIQ) 6,995,000
NEVADA-0.2%
550,000 Nevada State Department of
Community & Industrial
Development, Weekly VRDNs
(Kinplex Co.
Project)/(Credit
Commercial de France,
Paris LOC) 550,000
855,000 Sparks, NV IDRBs, Series
1996, Weekly VRDNs (The
Antioch Publishing Co.
Project)/(National City
Bank, Ohio LOC) 855,000
TOTAL 1,405,000
NEW HAMPSHIRE-0.6%
3,685,000 New Hampshire Business
Finance Authority, IDRB,
Series A, Weekly VRDNs
(Upper Valley
Press)/(KeyBank, N.A. LOC) 3,685,000
NEW JERSEY-0.8%
4,995,000 2 New Jersey Housing &
Mortgage Financing
Authority, PT-285, 3.80%
TOBs (MBIA
INS)/(Landesbank Hessen-
Thueringen, Frankfurt
LIQ), Optional Tender
8/10/2000 4,995,000
NEW MEXICO-1.6%
4,755,000 Albuquerque, NM, Series
1996, Weekly VRDNs (Rose's
Southwest Papers,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 4,755,000
5,000,000 Los Lunas Village, NM,
Series 1998, Weekly VRDNs
(Wall Colmonoy
Corp.)/(Michigan National
Bank, Farmington Hills
LOC) 5,000,000
TOTAL 9,755,000
NEW YORK-1.8%
3,800,000 Brookhaven-Comsewogue
Union Free School
District, NY, 4.25% TANs,
6/30/2000 3,806,820
7,000,000 New York City, NY
Transitional Finance
Authority, 1999 Trust
Receipts, Weekly VRDNs
(Bank of New York, New York
LIQ) 7,000,001
TOTAL 10,806,821
OHIO-7.6%
34,100,000 Clipper Tax-Exempt Certificates Trust (Ohio AMT), Series
1999-4, Weekly VRDNs (Ohio HFA)/(GNMA COL)/(State Street Bank
and Trust Co.
LIQ) 34,100,000
3,045,000 Mentor, OH Adjustable Rate
IDRBs, Series 1997, Weekly
VRDNs (Risch
Investments/Roll Kraft,
Inc.)/(KeyBank, N.A. LOC) 3,045,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
OHIO-CONTINUED
$ 980,000 Stark County, OH IDR,
Weekly VRDNs (Shearer's
Foods, Inc.)/(Bank One,
N.A. (Ohio) LOC) $ 980,000
4,000,000 Toledo-Lucas County, OH
Port Authority, Airport
Development Revenue Bonds,
Series 1996-1, Weekly
VRDNs (Burlington Air
Express, Inc.)/(ABN AMRO
Bank N.V., Amsterdam LOC) 4,000,000
3,720,000 Youngstown, OH Adjustable
Rate Demand IDRBs, Series
1996 A, Weekly VRDNs
(Cantar/Polyair
Corp./Performa
Corp.)/(HSBC Bank USA LOC) 3,720,000
TOTAL 45,845,000
OKLAHOMA-0.6%
3,610,000 Tulsa County, OK HFA, CDC
Municipal Products, Inc.,
Class A Certificates,
Series 1996 E, Weekly
VRDNs (GNMA COL)/(CDC
Municipal Products, Inc.
LIQ) 3,610,000
OREGON-0.1%
495,000 Oregon State, EDRBs,
Series 1988 B, Weekly VRDNs
(Domaine Drouhin
Oregon, Inc.)/(Wells Fargo
Bank, N.A. LOC) 495,000
PENNSYLVANIA-2.0%
5,000,000 Clinton County, PA IDA,
Solid Waste Disposal Revenue Bonds, Series 1992 A, 4.70% TOBs
(International Paper Co.),
Optional Tender 1/15/2001 5,000,000
6,745,000 2 Philadelphia, PA IDA,
Variable Rate
Certificates, Series 1998
P-1, 3.65% TOBs
(Philadelphia Airport
System)/(FGIC INS)/(Bank
of America, N.A. LIQ),
Optional Tender 7/20/2000 6,745,000
TOTAL 11,745,000
SOUTH CAROLINA-3.3%
5,200,000 Berkeley County, SC IDB,
Series 1998, Weekly VRDNs
(Nucor Corp.) 5,200,000
1,865,000 Berkeley County, SC IDB,
Series 1989, Weekly VRDNs
(W.W. Williams Co.
Project)/(Bank One, N.A.
Ohio, LOC) 1,865,000
3,690,000 South Carolina Job
Development Authority
Weekly VRDNs (Boozer
Lumber Co.)/(SouthTrust
Bank of Alabama,
Birmingham LOC) 3,690,000
250,000 South Carolina Job
Development Authority,
Series 1988 B, Weekly VRDNs
(Seacord Corp.)/(Credit
Commercial de France,
Paris LOC) 250,000
450,000 South Carolina Job
Development Authority,
Series 1990, Weekly VRDNs
(NMFO
Associates)/(Wachovia Bank
of NC, N.A. LOC) 450,000
850,000 South Carolina Job
Development Authority,
Series 1990, Weekly VRDNs
(Old Claussen's
Bakery)/(Wachovia Bank of
NC, N.A. LOC) 850,000
500,000 South Carolina Job
Development Authority,
Series 1990, Weekly VRDNs
(Rice Street
Association)/(Wachovia
Bank of NC, N.A. LOC) 500,000
3,700,000 South Carolina Job
Development Authority,
Series 1996, Weekly VRDNs
(PVC Container Corp.
Project)/(Fleet Bank N.A.
LOC) 3,700,000
660,000 South Carolina Job
Development Authority,
Series B, Weekly VRDNs
(Osmose Wood
Preserving)/(Credit
Commercial de France,
Paris LOC) 660,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
SOUTH CAROLINA-CONTINUED
$ 2,620,000 York County, SC IDA, IDRBs,
Series 1989, Weekly VRDNs
(Sediver, Inc.)/(Banque
Nationale de Paris LOC) $ 2,620,000
TOTAL 19,785,000
SOUTH DAKOTA-0.8%
4,230,000 South Dakota Housing
Development Authority,
Series 1999 I, 3.85% BANs,
9/28/2000 4,230,000
515,000 South Dakota Housing
Development Authority,
Homeownership Mortgage
Bonds, 1997 Series E,
Weekly VRDNs 515,000
TOTAL 4,745,000
TENNESSEE-4.1%
4,000,000 Carter County, TN IDB,
Series 1983, Monthly VRDNs
(Inland Container Corp.)/
(Temple-Inland, Inc. GTD) 4,000,000
1,500,000 Cheatham County, TN IDB,
Series 1997 B, Weekly VRDNs
(Triton Boat Co.)/(First
American National Bank,
Nashville, TN LOC) 1,500,000
2,000,000 Covington, TN IDB, Series
1992, Weekly VRDNs
(Wallace Computer
Services, Inc.)/(Wachovia
Bank of NC, N.A. LOC) 2,000,000
1,500,000 Hamilton County, TN IDB,
Series 1987, Weekly VRDNs
(Seaboard Farms
Project)/(SunTrust Bank,
Atlanta LOC) 1,500,000
1,510,000 Hawkins County, TN IDB,
Series 1995, Weekly VRDNs
(Sekisui Ta Industries,
Inc.)/(Bank of Tokyo-
Mitsubishi Ltd. LOC) 1,510,000
2,000,000 Jackson, TN IDB, Solid
Waste Facility Bonds,
Series 1995, Weekly VRDNs
(Florida Steel
Corp.)/(Bank of America,
N.A. LOC) 2,000,000
500,000 Knox County, TN IDB, Series
1996, Weekly VRDNs (Health
Ventures, Inc.)/(SunTrust
Bank, Nashville LOC) 500,000
4,000,000 Morristown, TN IDB, Series
1999, Weekly VRDNs (Tuff
Torq Corp.)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 4,000,000
3,000,000 Sevier County, TN Public
Building Authority, Local
Government Improvement
Bonds, Series II-G-2,
Weekly VRDNs (Knoxville,
TN)/(AMBAC INS)/(KBC Bank
N.V. LIQ) 3,000,000
800,000 South Pittsburg, TN IDB,
Series 1996, Weekly VRDNs
(Lodge Manufacturing Co.)/
(SunTrust Bank, Nashville
LOC) 800,000
3,995,000 Tennessee Housing
Development Agency, Series
1997 K, Weekly VRDNs (Bank
of America, N.A. LIQ) 3,995,000
TOTAL 24,805,000
TEXAS-9.7%
4,000,000 Angelina and Neches River
Authority, Texas, Solid
Waste Disposal Revenue
Bonds, Series 1993, 4.60%
CP (Temple-Eastex,
Inc.)/(Temple-Inland, Inc.
GTD), Mandatory Tender
2/17/2000 4,000,000
2,500,000 Angelina and Neches River
Authority, Texas, Solid
Waste Disposal Revenue
Bonds, Series 1993, 4.60%
CP (Temple-Eastex,
Inc.)/(Temple-Inland, Inc.
GTD), Mandatory Tender
2/18/2000 2,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
TEXAS-CONTINUED
$ 1,600,000 Angelina and Neches River
Authority, Texas, Waste
Disposal Revenue Bonds,
Series 1998, 4.60% CP
(Temple-Inland Forest
Products Corp.)/(Temple-
Inland, Inc. GTD),
Mandatory Tender 2/17/2000 $ 1,600,000
5,755,000 Brazos River Authority,
TX, Series 1999 B, Weekly
VRDNs (TXU Electric
Co.)/(Morgan Guaranty
Trust Co., New York LOC) 5,755,000
5,420,000 2 Dallas-Fort Worth, TX
Regional Airport, Custody
Receipts, 4.05% TOBs
(FGIC INS)/(Citibank N.A,
New York LIQ), Optional
Tender 5/1/2000 5,420,000
7,100,000 Gulf Coast, TX Waste
Disposal Authority, Daily
VRDNs (Amoco Corp.) 7,100,000
3,500,000 Harris County, TX HFDC,
Series 1994, Daily VRDNs
(Methodist Hospital,
Harris County, TX) 3,500,000
3,500,000 Harris County, TX HFDC,
Series 1997 A, Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Bank of
America, N.A., Morgan
Guaranty Trust Co., New
York and Toronto Dominion
Bank LIQs) 3,500,000
5,000,000 Harris County, TX HFDC,
Hospital Revenue Bonds, Series 1997 B, 3.70% CP (Memorial
Hospital System)/(MBIA INS)/(Chase Bank of Texas LIQ),
Mandatory Tender 3/1/2000 5,000,000
2,200,000 Harris County, TX HFDC,
Unit Priced Demand
Adjustable Revenue Bonds,
Series 1997 B, Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Bank of
America, N.A., Morgan
Guaranty Trust Co., New
York and Toronto Dominion
Bank LIQs) 2,200,000
3,210,000 Houston, TX Airport
System, Series 1998 A, PT- 1102, Weekly VRDNs (FGIC
INS)/(Merrill Lynch Capital Services, Inc.
LIQ) 3,210,000
2,100,000 Lubbock, TX IDC, Daily
VRDNs (McLane Co.,
Inc.)/(Bank of America,
N.A. LOC) 2,100,000
8,000,000 McAllen, TX IDA, Series
1998, Weekly VRDNs (NiTek
McAllen LLC)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 8,000,000
4,545,000 Saginaw, TX IDA, Series
1998, Weekly VRDNs (Glad
Investing Partners
Ltd.)/(Bank One, Texas
N.A. LOC) 4,545,000
TOTAL 58,430,000
VIRGINIA-3.5%
5,000,000 Campbell County, VA IDA,
Solid Waste Disposal
Facilities Revenue ACES,
Weekly VRDNs (Georgia-
Pacific Corp.)/(SunTrust
Bank, Atlanta LOC) 5,000,000
10,000,000 2 Fairfax County, VA EDA,
Trust Receipt, FR/RI-A15, Series 1999, 3.55% TOBs (AMBAC
INS)/(National Westminster Bank PLC, London LIQ), Optional
Tender 2/1/2000 10,000,000
6,000,000 Halifax, VA IDA, MMMs, PCR,
3.85% CP (Virginia
Electric Power Co.),
Mandatory Tender 3/10/2000 6,000,000
TOTAL 21,000,000
WASHINGTON-1.2%
4,000,000 2 Washington State, PT-1187,
3.95% TOBs (Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
10/19/2000 4,000,000
3,000,000 Yakima County, WA Public
Corp., Series 1999, Weekly
VRDNs (John I. Haas,
Inc.)/(Bayerische
Hypotheken-und Vereinsbank
AG and Deutsche Bank AG
LOCs) 3,000,000
TOTAL 7,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-
continued 1
WEST VIRGINIA-0.4%
$ 2,335,000 Berkeley County, WV County
Commission, IDB, Series
1994, Weekly VRDNs
(Brentwood Industries,
Inc. Project)/(First Union
National Bank, Charlotte,
NC LOC) $ 2,335,000
WISCONSIN-1.6%
2,000,000 Milwaukee, WI Series 1997,
3.95% TOBs (Signature
Flight Support
Corp.)/(Bayerische
Landesbank Girozentrale
LOC), Optional Tender
6/1/2000 2,000,000
1,000,000 New Berlin, WI Series 1997
A, Weekly VRDNs (Sunraider
LLC/New Berlin Plastics,
Inc.)/(Bank One,
Wisconsin, N.A. LOC) 1,000,000
6,905,000 2 Wisconsin Housing & EDA,
PT-90, 3.175% TOBs (Banque
Nationale de Paris LIQ),
Optional Tender 2/17/2000 6,905,000
TOTAL 9,905,000
TOTAL INVESTMENTS
(AMORTIZED COST) 3 $ 600,102,821
</TABLE>
Securities that are subject to alternative minimum tax represent 91.6% of the
portfolio as calculated based upon total portfolio market value.
1 The fund may only invest in securities rated in one of the two highest
short-term rating categories by nationally recognized statistical rating
organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's
two highest rating categories are determined without regard for sub-categories
and gradations. For example, securities rated SP-1+, SP-1 or SP-2 by Standard &
Poor's, MIG-1 or MIG-2 by Moody's Investors Service, or F-1+, F-1 or F-2 by
Fitch IBCA, Inc., are all considered rated in one of the two highest short-term
rating categories. Securities rated in the highest short-term rating category
(and unrated securities of comparable quality) are identified as First Tier
securities. Securities rated in the second highest short-term rating category
(and unrated securities of comparable quality) are identified as Second Tier
securities. The fund follows applicable regulations in determining whether a
security is rated and whether a security rated by multiple NRSROs in different
rating categories should be identified as a First or Second Tier security. At
January 31, 2000, the portfolio securities were rated as follows:
Tier Rating Based on Total Market Value (Unaudited)
FIRST TIER Second Tier
96.85% 3.15%
2 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At January 31, 2000 these
securities amounted to $84,996,000 which represents 14.1% of net assets.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($602,128,089) at January 31, 2000.
The following acronyms are used throughout this portfolio:
ACES -Adjustable Convertible Extendable Securities AMBAC -American Municipal
Bond Assurance Corporation AMT -Alternative Minimum Tax BANs -Bond Anticipation
Notes COL -Collateralized CP -Commercial Paper EDA -Economic Development
Authority EDC -Economic Development Corporation EDRB -Economic Development
Revenue Bonds FGIC -Financial Guaranty Insurance Company GNMA -Government
National Mortgage Association GTD -Guaranteed HFA -Housing Finance Authority
HFDC -Health Facility Development Corporation IDA -Industrial Development
Authority IDB -Industrial Development Bond IDC -Industrial Development
Corporation IDRB -Industrial Development Revenue Bond IFA -Industrial Finance
Authority INS -Insured LIQ -Liquidity Agreement LOC -Letter of Credit MBIA
- -Municipal Bond Investors Assurance MERLOTS -Municipal Exempt Receipts Liquidity
Optional Tender Series MMMs -Money Market Municipals PCR -Pollution Control
Revenue SFM -Single Family Mortgages TANs -Tax Anticipation Notes TOBs -Tender
Option Bonds VRDNs -Variable Rate Demand Notes
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Prime Cash Obligations Fund
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT TERM NOTES-10.6%
BANKING-1.0% $ 30,000,000 Bank One, Illinois, N.A.,
6.025%, - 6.07%,
10/10/2000 - 11/13/2000 $ 29,985,690
16,000,000 Westpac Banking Corp.
Ltd., Sydney, 6.22%,
11/30/2000 15,989,736
TOTAL 45,975,426
BROKERAGE-2.9%
138,000,000 Goldman Sachs Group, Inc.,
5.831% - 6.010%, 3/24/2000
- 4/26/2000 138,000,000
FINANCE - AUTOMOTIVE-0.2%
3,536,571 Honda Auto Lease Trust
1999-A, Class A-1, 5.445%,
8/15/2000 3,536,571
7,862,118 Toyota Auto Receivables
1999-A Owner Trust, Class
A-1, 5.365%, 8/11/2000 7,862,118
TOTAL 11,398,689
FINANCE - COMMERCIAL-6.1%
153,500,000 Beta Finance, Inc., 5.10% -
5.52%, 2/16/2000 -
6/12/2000 153,499,051
136,000,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 6.00% -
6.78%, 8/11/2000 -
2/28/2001 136,000,000
TOTAL 289,499,051
FINANCE - EQUIPMENT-0.4%
4,402,965 Caterpillar Financial
Asset Trust 1999-A, Class
A-1, 5.365%, 7/25/2000 4,402,965
12,416,035 Copelco Capital Funding
LLC 1999-B, Class A-1,
5.937%, 10/18/2000 12,416,035
176,431 Navistar Financial 1999-A
Owner Trust, Class A-1,
5.003%, 6/15/2000 176,431
TOTAL 16,995,431
INSURANCE-0.0%
12,000 Americredit Automobile
Receivables Trust 2000-A,
Class A-1, 6.040%,
2/5/2001 12,000
TOTAL SHORT TERM NOTES 501,880,597
CERTIFICATES OF DEPOSIT-
4.3%
BANKING-4.3%
27,000,000 Bank of Montreal, 5.20%,
5/12/2000 26,996,404
40,000,000 Bank of Scotland,
Edinburgh, 5.95%,
4/12/2000 39,999,924
26,000,000 Bayerische Landesbank
Girozentrale, 5.115%,
3/21/2000 25,997,103
39,000,000 Canadian Imperial Bank of
Commerce, 4.987% - 5.16%,
2/7/2000 - 2/23/2000 38,999,432
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
CERTIFICATES OF DEPOSIT-
continued
BANKING-CONTINUED
$ 25,000,000 Commerzbank AG, Frankfurt,
5.16% - 5.24%, 4/7/2000 -
5/15/2000 $ 24,997,585
45,000,000 UBS AG, Stamford, 6.080% -
6.260%, 11/13/2000 -
12/11/2000 44,976,726
TOTAL CERTIFICATES OF
DEPOSIT 201,967,174
COMMERCIAL PAPER-46.0% 2
BANKING-25.6%
80,000,000 Abbey National N.A. Corp.,
(Guaranteed by Abbey
National Bank PLC,
London), 5.906% - 5.917%,
4/13/2000 - 4/25/2000 78,971,200
39,000,000 Asset Securitization
Cooperative Corp., 5.92%,
2/24/2000 38,856,729
50,000,000 Corporate Asset Funding
Co., Inc. (CAFCO), 5.808%,
3/22/2000 49,600,694
130,000,000 Cregem North America,
Inc., (Guaranteed by
Credit Communal de
Belgique, Brussels),
5.893% - 6.020%, 2/8/2000 -
4/17/2000 129,406,876
65,000,000 Den Danske Corp., Inc.,
(Guaranteed by Den Danske
Bank A/S), 5.936% - 6.069%,
4/25/2000 - 6/21/2000 63,814,472
30,000,000 Edison Asset
Securitization LLC,
5.984%, 4/25/2000 29,587,700
125,594,000 Falcon Asset
Securitization Corp.,
5.699% - 5.746%, 2/1/2000 -
2/17/2000 125,379,996
28,805,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
SA), 5.749% - 5.956%,
2/22/2000 - 4/24/2000 28,549,050
61,595,000 Greenwich Funding Corp.,
5.119% - 5.938%, 2/1/2000 -
4/11/2000 61,365,832
238,682,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.739% - 5.849%,
2/22/2000 - 3/6/2000 237,760,595
30,000,000 PREFCO-Preferred
Receivables Funding Co.,
5.789%, 3/7/2000 29,832,292
47,000,000 Park Avenue Receivables
Corp., 5.741%, 2/25/2000 46,821,400
75,000,000 Receivables Capital Corp.,
5.707% - 5.937%, 2/8/2000 -
2/9/2000 74,911,569
30,000,000 Svenska Handelsbanken,
Inc., (Guaranteed by
Svenska Handelsbanken,
Stockholm), 5.928%,
4/12/2000 29,654,467
117,398,000 Three Rivers Funding
Corp., 5.701% - 5.756%,
2/11/2000 - 2/22/2000 117,150,086
25,000,000 Westpac Capital Corp.,
(Guaranteed by Westpac
Banking Corp. Ltd.,
Sydney), 5.967%, 5/2/2000 24,633,472
50,000,000 Westpac Trust Securities
NZ Ltd., (Guaranteed by
Westpac Banking Corp.
Ltd., Sydney), 5.936%,
4/25/2000 49,317,500
TOTAL 1,215,613,930
BROKERAGE-1.9%
90,000,000 Morgan Stanley, Dean
Witter & Co., 5.927% -
5.942%, 4/17/2000 -
4/24/2000 88,832,778
CONSUMER PRODUCTS-2.3%
108,000,000 Diageo Capital PLC,
(Guaranteed by Diageo
PLC), 5.919% - 6.008%,
3/1/2000 - 4/11/2000 107,166,751
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued
2
FINANCE - AUTOMOTIVE-0.4%
$ 20,000,000 General Motors Acceptance
Corp., 5.459%, 3/6/2000 $ 19,900,833
FINANCE - COMMERCIAL-6.3%
65,000,000 CIT Group Holdings, Inc.,
5.811%, 2/1/2000 65,000,000
30,000,000 Eureka Securitization,
Inc., 5.701%, 2/14/2000 29,938,575
42,500,000 GE Capital International
Funding, Inc., (Guaranteed
by General Electric
Capital Corp.), 5.994% -
6.093%, 3/9/2000 -
4/11/2000 42,053,999
140,000,000 General Electric Capital
Corp., 5.917% - 6.032%,
2/25/2000 - 5/12/2000 138,259,428
25,000,000 Sigma Finance, Corp.,
(Guaranteed by Sigma
Finance Corp.), 5.717% -
5.959%, 2/4/2000 -
4/14/2000 24,816,829
TOTAL 300,068,831
FINANCE - RETAIL-0.3% 15,000,000 CommoLoCo, Inc.,
(Guaranteed by American
General Finance Corp.),
6.104%, 3/9/2000 14,907,963
INSURANCE-9.2%
200,000,000 Aspen Funding Corp.,
(Insured by MBIA), 5.757%,
2/17/2000 199,490,667
54,300,000 CXC, Inc., 5.927% - 5.980%,
2/2/2000 - 4/10/2000 53,863,333
60,000,000 Marsh USA, Inc., 5.754% -
6.040%, 2/16/2000 -
7/28/2000 59,465,567
125,430,000 Sheffield Receivables
Corp., 5.758% - 6.023%,
2/11/2000 - 2/28/2000 125,026,814
TOTAL 437,846,381
TOTAL COMMERCIAL PAPER 2,184,337,467
LOAN PARTICIPATION-3.9%
ELECTRICAL EQUIPMENT-0.4%
16,700,000 Mt. Vernon Phenol Plant
Partnership, (Guaranteed
by General Electric Co.),
6.120%, 5/17/2000 16,700,000
FINANCE - AUTOMOTIVE-2.5%
120,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
5.620% - 6.863%, 2/3/2000 -
3/15/2000 120,000,000
FINANCE - EQUIPMENT-1.0%
50,000,000 Pitney Bowes Credit Corp.,
5.809%, 2/10/2000 49,927,750
TOTAL LOAN PARTICIPATION 186,627,750
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE OBLIGATIONS-
22.6% 3
BANKING-10.2%
$ 2,000,000 Albuquerque, NM, Series
1997 El Canto, Inc.,
(Norwest Bank Minnesota,
N.A. LOC), 6.290%,
2/3/2000 $ 2,000,000
46,000,000 Asset Securitization
Cooperative Corp., 5.831%
- 5.903%, 2/7/2000 -
2/14/2000 45,999,580
1,600,000 Beech Grove, IN, Series
1997, Poster Display Co.
Project, (Bank One,
Indiana, N.A. LOC),
5.940%, 2/3/2000 1,600,000
1,925,000 C. W. Caldwell, Inc.,
Sweetbriar Assisted Living
Facility, Project,
(Huntington National Bank,
Columbus, OH LOC), 5.89%,
2/3/2000 1,925,000
5,500,000 Capital One Funding Corp.,
Series 1993-A, (Bank One,
Ohio N.A. LOC),
5.940%, 2/3/2000 5,500,000
21,270,000 Capital One Funding Corp.,
Series 1999-A, (Bank One,
Kentucky LOC),
5.940%, 2/3/2000 21,270,000
2,845,000 Casna LP, Series 1997,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 2,845,000
9,965,000 Cedarville College OH,
Series 1998, (KeyBank,
N.A. LOC), 6.100%,
2/3/2000 9,965,000
4,515,000 Chartiers Valley
Industrial & Commercial
Development Authority,
Woodhaven Convalescent
Center, Series 1997-B,
(Bank One, Ohio, N.A. LOC),
5.980%, 2/3/2000 4,515,000
1,440,000 Children's Defense Fund,
(Allfirst LOC), 5.960%,
2/1/2000 1,440,000
5,715,000 Colonie, NY IDA,
Mechanical Technology,
Inc. Project, Series 1998
A, (KeyBank, N.A. LOC),
5.900%, 2/3/2000 5,715,000
56,000,000 Comerica Bank, 5.791% -
5.864%, 2/9/2000 -
2/25/2000 55,974,616
9,000,000 Comerica Bank, 5.864%,
2/25/2000 8,995,989
10,150,000 Cuyahoga County, OH,
Gateway Arena Project,
Series 1992-B, (Canadian
Imperial Bank of Commerce
LOC), 5.940%, 2/2/2000 10,150,000
9,450,000 Elsinore Properties, LP,
Series 1999, (Fifth Third
Bank, Cincinnati LOC),
5.830%, 2/3/2000 9,450,000
1,020,000 Flowform, Inc.,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 1,020,000
4,000,000 Frank Parsons Paper Co.,
Inc., Series 1999,
(Allfirst LOC), 5.871%,
2/4/2000 4,000,000
6,580,000 Franklin County, OH,
Edison Welding, Series
1995, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 6,580,000
11,730,000 Georgetown, KY Educational
Institution, Series 1997-
A, (Bank One, Kentucky
LOC), 5.940%, 2/3/2000 11,730,000
4,130,000 Georgia Ports Authority,
Colonel's Island Terminal
Project, Series 1996-A,
Revenue Bonds, (SunTrust
Bank, Atlanta LOC),
5.850%, 2/2/2000 4,130,000
1,380,000 Gerald T. Thom, Trustee
U.A.D., March 27, 1997,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 1,380,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
BANKING-CONTINUED
$ 1,480,000 Gettysburg Area IDA,
Hanover Lantern, Inc.
Project, Series 1998-B,
(Allfirst LOC), 5.860%,
2/2/2000 $ 1,480,000
11,180,000 Healthcare Network
Properties LLC, Series A,
(National City Bank,
Michigan/Illinois LOC),
5.790%, 2/3/2000 11,180,000
8,400,000 IT Spring Wire LLC, Series
1997, (Fifth Third Bank,
Cincinnati LOC),
5.820%, 2/3/2000 8,400,000
3,877,000 International Processing
Corp., (Bank One, Kentucky
LOC), 5.990%, 2/3/2000 3,877,000
2,000,000 Kit Carson County, CO,
Midwest Farms LLC Project,
(Norwest Bank Minnesota,
N.A. LOC), 5.950%,
2/2/2000 2,000,000
6,000,000 La Verne City, IDA, Mobile
Tool International, Inc.
Project, Series 1998-B,
(Fleet Bank N.A. LOC),
5.870%, 2/3/2000 6,000,000
54,724,185 Liquid Asset Backed
Securities Trust, Series
1997-1, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.793%,
2/15/2000 54,724,185
7,730,000 Lombard IL, Multifamily
Housing, MHRV, Series
1999, Clover Creek
Apartments (Bank One,
Arizona N.A. LOC), 5.98%,
2/3/2000 7,730,000
32,670,000 M/S Land, LLC, (Bank One,
Illinois, N.A. LOC),
5.99%, 2/3/2000 32,670,000
5,900,000 MMR Funding I, Series A,
(Bayerische Hypotheken-und
Vereinsbank AG LOC),
5.94%, 2/3/2000 5,900,000
4,375,000 Maryland EDC, Human Genome
Sciences, Series 1999A,
(Allfirst LOC),
5.86%, 2/1/2000 4,375,000
13,125,000 Maryland EDC, Human Genome
Sciences, Series 1999B,
(First Union National
Bank, Charlotte, NC LOC),
5.86%, 2/1/2000 13,125,000
4,770,000 Medilodge Group,
Meadowbrook Project,
(KeyBank, N.A. LOC),
6.03%, 2/3/2000 4,770,000
1,280,000 Michigan State Housing
Development Authority,
Series 1999B, Lexington
Place Apartments, (Bank of
America, N.A. LOC), 5.78%,
2/3/2000 1,280,000
10,000,000 Mississippi Business
Finance Corp., Kohler Co.
Project, (Wachovia Bank of
NC, N.A. LOC), 5.80%,
2/3/2000 10,000,000
2,990,000 New Berlin, WI, Sunraider
LLC, Series 1997-B, (Bank
One, Wisconsin, N.A. LOC),
5.98%, 2/3/2000 2,990,000
4,100,000 New Jersey EDA, Morey
Organization, Inc. Project
Series 1997, (First Union
National Bank, Charlotte,
NC LOC), 5.91%, 2/2/2000 4,100,000
2,565,000 New Jersey EDA, Phoenix
Realty Partners, (First
Union National Bank,
Charlotte, NC LOC),
5.910%, 2/2/2000 2,565,000
9,130,000 O.K.I. Supply Co., Series
1998, (Fifth Third Bank,
Cincinnati LOC), 5.83%,
2/3/2000 9,130,000
3,325,000 Oakwoods Master LP, Series
1997, (Amsouth Bank N.A.,
Birmingham LOC), 6.16%,
2/3/2000 3,325,000
3,525,000 Olszeski Properties, Inc.,
Series 1988, (Bank One,
Ohio, N.A. LOC),
6.03%, 2/3/2000 3,525,000
10,000,000 Park Avenue Receivables
Corp., 5.475%, 2/3/2000 10,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
BANKING-CONTINUED
$ 1,000,000 Poseyville, IN, North
American Green, Series
1999, (Fifth Third Bank,
Cincinnati LOC), 6.04%,
2/3/2000 $ 1,000,000
4,033,000 Primex Funding Corp.,
Series 1997-A, (Bank One,
Indiana, N.A. LOC),
5.94%, 2/3/2000 4,033,000
1,776,912 1 Rabobank Optional
Redemption Trust, Series
1997-101, 6.186%,
4/20/2000 1,776,912
9,635,000 Royal Wine Corp. and KFP
International Ltd., Series
1998, (KeyBank, N.A. LOC),
6.10%, 2/3/2000 9,635,000
7,000,000 Sandridge Food Corp.,
(Bank One, Ohio, N.A. LOC),
5.99%, 2/3/2000 7,000,000
9,600,000 Smith Land Improvement
Corp., Series 1999,
(Allfirst LOC), 5.860%,
2/1/2000 9,600,000
3,810,000 Solon Properties LLC,
(Huntington National Bank,
Columbus, OH LOC),
5.98%, 2/3/2000 3,810,000
2,130,000 Spitzer Group, Series
1998-C, (Bank One, Ohio,
N.A. LOC), 5.98%, 2/3/2000 2,130,000
1,100,000 TDB Realty Ltd.,
(Huntington National Bank,
Columbus, OH LOC),
5.98%, 2/3/2000 1,100,000
2,160,000 Tallahassee-Leon County
Civic Center Authority,
Series 1998-C, (SunTrust
Bank, Central Florida
LOC), 5.85%, 2/2/2000 2,160,000
3,280,000 Team Rahal of Pittsburgh,
Inc., Series 1997,
(Huntington National Bank,
Columbus, OH LOC), 5.98%,
2/3/2000 3,280,000
10,000,000 Three Rivers Funding
Corp., 5.88%, 2/1/2000 10,000,000
2,050,000 Trap Rock Industries,
Inc., Series 1997, (First
Union National Bank,
Charlotte, NC LOC), 5.91%,
2/2/2000 2,050,000
885,000 Triple O LLC, Series 1999,
(Huntington National Bank,
Columbus, OH LOC), 6.03%,
2/3/2000 885,000
5,565,000 VLF LLC, The Village of
Lovejoy, Fountain Project,
(KeyBank, N.A. LOC),
6.10%, 2/3/2000 5,565,000
2,715,000 Van Wyk Enterprises, Inc.,
(Huntington National Bank,
Columbus, OH LOC), 5.98%,
2/3/2000 2,715,000
10,000,000 Wildcat Management Ltd.,
Inc., Series 1999,
(Firstar Bank, N.A.,
Cincinnati LOC), 5.90%,
2/3/2000 10,000,000
TOTAL 487,075,293
BROKERAGE-2.5%
117,600,000 Morgan Stanley, Dean
Witter & Co., 5.83%,
2/4/2000 117,600,000
FINANCE - AUTOMOTIVE-1.9%
88,800,000 General Motors Acceptance
Corp., Mortgage of PA,
(General Motors Acceptance
Corp. LOC), 5.83% - 5.924%,
3/7/2000 88,442,874
FINANCE - COMMERCIAL-1.4%
68,800,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 5.83% -
6.296%, 2/1/2000 -
3/28/2000 68,800,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
FINANCE - EQUIPMENT-0.2%
$ 9,000,000 Deere (John) Capital
Corp., 6.23%, 2/1/2000 $ 9,001,452
INSURANCE-6.4%
24,000,000 Allstate Life Insurance
Co., 6.113% - 6.616%,
2/1/2000 24,000,000
27,000,000 First Allmerica Financial
Life Insurance Co.,
6.306%, 2/3/2000 27,000,000
15,000,000 GE Life and Annuity
Assurance Co., 6.20%,
3/1/2000 15,000,000
62,400,000 Jackson National Life
Insurance Co., 5.90% -
6.271%, 2/1/2000 -
4/30/2000 62,400,000
15,087,000 1 Liquid Asset Backed
Securities Trust, Series
1997-3 Sr. Notes, (AMBAC
INS), 6.151%, 2/27/2000 15,087,000
15,835,324 1 Liquid Asset Backed
Securities Trust, Sr.
Notes (Series 1998-1),
(AMBAC INS), 5.819%,
2/27/2000 15,835,324
24,000,000 Peoples Security Life
Insurance Co., 5.93% -
6.41%, 2/1/2000 24,000,000
20,000,000 Principal Life Insurance
Co., 6.26%, 3/1/2000 20,000,000
15,000,000 Protective Life Insurance
Co., 6.355%, 2/1/2000 15,000,000
30,000,000 Security Life of Denver
Insurance Co., 6.100% -
6.359%, 2/10/2000 -
3/28/2000 30,000,000
35,000,000 Transamerica Life
Insurance and Annuity Co.,
6.094%, 3/1/2000 -
4/1/2000 35,000,000
10,000,000 Transamerica Occidental
Life Insurance Co.,
6.329%, 2/29/2000 10,000,000
10,000,000 Travelers Insurance Co.,
6.094%, 3/1/2000 10,000,000
TOTAL 303,322,324
TOTAL VARIABLE RATE
OBLIGATIONS 1,074,241,943
TIME DEPOSIT-4.2%
BANKING-4.2%
200,000,000 SunTrust Bank, Atlanta,
5.875%, 2/1/2000 200,000,000
REPURCHASE AGREEMENTS-8.8%
4
138,100,000 Bank of America, 5.80%,
dated 1/31/2000, due
2/1/2000 138,100,000
150,000,000 Deutsche Bank Financial,
Inc., 5.80%, dated
1/31/2000, due 2/1/2000 150,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
continued 4
$ 56,200,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.70%, dated 1/31/2000,
due 2/1/2000 $ 56,200,000
75,000,000 Toronto Dominion
Securities (USA), Inc.,
5.69%, dated 1/31/2000,
due 2/1/2000 75,000,000
TOTAL REPURCHASE
AGREEMENTS 419,300,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 4,768,354,931
</TABLE>
1 Denotes a restricted security that has been deemed liquid by criteria approved
by the fund's Board of Trustees. At January 31, 2000, these securities amounted
to $32,699,236 which represents 0.69% of net assets.
2 Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
3 Current rate and next reset date shown.
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 represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($4,747,906,186) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation EDA -Economic Development
Authority EDC -Economic Development Corp.
IDA -Industrial Development Authority
INS -Insured
LOC -Letter of Credit
MBIA -Municipal Bond Investors Assurance
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Prime Value Obligations Fund
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM NOTES-8.6%
BANKING-0.9% $ 15,000,000 Bank One, Illinois, N.A.,
6.025% - 6.070%,
10/10/2000 - 11/13/2000 $ 14,993,288
5,000,000 Westpac Banking Capital
Corp. Ltd., Sydney,
6.220%, 11/30/2000 4,996,792
TOTAL 19,990,080
BROKERAGE-2.2%
50,000,000 Goldman Sachs Group, Inc.,
5.900% - 6.00%, 3/14/2000 -
3/24/2000 50,000,000
FINANCE - COMMERCIAL-5.3%
95,500,000 Beta Finance, Inc., 5.000%
- 5.700%, 2/1/2000 -
6/28/2000 95,499,226
9,000,000 FINOVA Capital Corp.,
6.170% - 6.45%, 6/1/2000 -
6/12/2000 9,006,460
18,000,000 Sigma Finance, Inc.,
6.000% - 6.780%, 8/11/2000
- 2/28/2001 18,000,000
TOTAL 122,505,686
FINANCE - EQUIPMENT-0.2%
5,227,804 Copelco Capital Funding
LLC, Series 1999-B, Class
A-1, 5.937%, 10/18/2000 5,227,804
105,275 Heller Equipment Asset
Receivables Trust, Series
1999-1, Class A1,
4.948%, 5/13/2000 105,275
TOTAL 5,333,079
INSURANCE-0.0%
5,500 Americredit Automobile
Receivables Trust, Series
2000-A, Class A1,
6.040%, 2/5/2001 5,500
TOTAL SHORT-TERM NOTES 197,834,345
CERTIFICATES OF DEPOSIT-
14.9%
BANKING-14.9%
15,000,000 Bank of Nova Scotia,
Toronto, 5.290%, 3/9/2000 14,999,415
25,000,000 Bank of Scotland,
Edinburgh, 5.950%,
4/12/2000 24,999,952
50,000,000 Bank One, Illinois, N.A.,
6.030%, 11/13/2000 49,971,934
10,000,000 Bayerische Landesbank
Girozentrale, 5.150%,
3/21/2000 9,999,549
25,000,000 Canadian Imperial Bank of
Commerce, 5.160% - 5.340%,
2/23/2000 - 3/21/2000 24,999,080
20,000,000 Commerzbank AG, Frankfurt,
5.290%, 5/15/2000 19,997,259
30,000,000 Halifax PLC, 5.900%,
3/31/2000 30,000,000
121,000,000 MBNA America Bank, N.A.,
6.000% - 6.030%, 4/12/2000
- 4/19/2000 121,000,000
50,000,000 Svenska Handelsbanken,
Stockholm, 5.180%,
3/20/2000 49,998,100
TOTAL CERTIFICATES OF
DEPOSIT 345,965,289
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
BANKING-12.1%
$ 28,000,000 Abbey National N.A. Corp.,
(Guaranteed by Abbey
National Bank PLC,
London), 5.906%, 4/25/2000 $ 27,619,760
20,000,000 Australia & New Zealand
ANZ, Inc., (Guaranteed by
Australia & New Zealand
Banking Group, Melbourne),
5.928%, 4/12/2000 19,769,644
71,000,000 Cregem North America,
Inc., (Guaranteed by
Credit Communal de
Belgique, Brussels),
5.920% - 6.020%, 2/14/2000
- 2/18/2000 70,829,760
24,000,000 Den Danske Corp., Inc.,
(Guaranteed by Den Danske
Bank A/S), 6.007% - 6.069%,
5/31/2000 - 6/21/2000 23,460,100
43,594,000 Gotham Funding Corp.,
5.718% - 5.786%, 2/2/2000 -
2/15/2000 43,533,411
50,000,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.750%, 2/23/2000 49,825,222
10,000,000 Svenska Handelsbanken,
Inc., (Guaranteed by
Svenska Handelsbanken,
Stockholm), 5.928%,
4/12/2000 9,884,822
37,000,000 Westpac Capital Corp.,
(Guaranteed by Westpac
Banking Corp. Ltd.,
Sydney), 5.967%, 5/2/2000 36,457,539
TOTAL 281,380,258
BROKERAGE-2.7%
32,000,000 Goldman Sachs Group, Inc.,
5.935%, 4/28/2000 31,547,600
10,000,000 Morgan Stanley, Dean
Witter & Co., 5.927%,
4/24/2000 9,865,356
21,000,000 Salomon Smith Barney
Holdings, Inc., 5.922%,
4/3/2000 20,788,425
TOTAL 62,201,381
CHEMICALS-0.8%
6,955,000 IMC Global, Inc., 6.454%,
2/7/2000 6,947,639
10,516,000 Rohm & Haas Co., 6.347% -
6.475%, 2/4/2000 10,510,473
TOTAL 17,458,112
CONTAINER/PACKAGING-0.3%
7,300,000 Crown Cork & Seal Co.,
Inc., 5.846% - 5.858%,
2/15/2000 - 2/24/2000 7,279,094
FINANCE - COMMERCIAL-10.9%
20,000,000 Corporate Asset Funding
Co., Inc., 5.808%,
3/22/2000 19,840,278
20,000,000 Edison Asset
Securitization LLC,
6.003%, 5/15/2000 19,659,111
41,135,000 Falcon Asset
Securitization Corp.,
5.697% - 5.750%, 2/10/2000
- 2/22/2000 41,007,601
50,000,000 General Electric Capital
Corp., 5.917% - 6.032%,
2/25/2000 - 3/10/2000 49,759,156
83,013,000 Receivables Capital Corp.,
5.937% - 5.981%, 2/8/2000 -
4/20/2000 82,528,698
41,000,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 5.941% -
5.941%, 4/3/2000 -
5/10/2000 40,363,871
TOTAL 253,158,715
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued
2
HOMEBUILDING-0.5%
$ 11,700,000 Centex Corp., 5.801% -
5.832%, 2/2/2000 -
2/10/2000 $ 11,689,740
INDUSTRIAL PRODUCTS-0.5%
11,160,000 Praxair, Inc., 6.421%,
2/1/2000 11,160,000
INSURANCE-5.4%
37,000,000 CXC, Inc., 5.947%,
4/7/2000 36,601,818
87,860,000 Sheffield Receivables
Corp., 5.707% - 6.022%,
2/2/2000 - 2/22/2000 87,733,696
TOTAL 124,335,514
RETAIL-1.0%
24,053,000 Safeway, Inc., 5.799% -
5.820%, 2/3/2000 -
2/9/2000 24,036,557
TOTAL COMMERCIAL PAPER 792,699,371
NOTES - VARIABLE-28.9% 2
BANKING-11.8%
9,410,000 500 South Front St. LP,
Series A, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 9,410,000
5,075,000 500 South Front St. LP,
Series B, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 5,075,000
1,112,500 Alabama State IDA,
(Nichols Research Corp.),
(SouthTrust Bank of
Alabama, Birmingham LOC),
6.090%, 2/4/2000 1,112,500
16,900,000 Beverly California Corp.,
(PNC Bank, N.A. LOC),
5.810%, 2/7/2000 16,900,000
16,385,000 Beverly Hills Nursing
Center, Inc., Medilodge
Project Series 1996,
(KeyBank, N.A. LOC),
6.030%, 2/3/2000 16,385,000
1,725,000 Bissett, William K. and
Sheryl B., Multi-Option
Adjustable Rate Notes,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 1,725,000
6,000,000 Bond Holdings LP,
(SouthTrust Bank of
Alabama, Birmingham LOC),
5.930%, 2/4/2000 6,000,000
6,715,000 Briarwood LP, Briarwood
Ltd. Partnership Project
Series 1999, (Bank One,
Ohio, N.A. LOC), 6.040%,
2/3/2000 6,715,000
9,826,000 Capital One Funding Corp.,
Series 1999-B, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 9,826,000
480,000 Carmel, IN, Telamon Corp.,
Series 1996-C, (Huntington
National Bank, Columbus,
OH LOC), 6.080%, 2/3/2000 480,000
930,000 Carmel, IN, Telamon Corp.,
Series A, (Huntington
National Bank, Columbus,
OH LOC), 6.080%, 2/3/2000 930,000
1,005,000 Carmel, IN, Telamon Corp.,
Series B, (Huntington
National Bank, Columbus,
OH LOC), 6.080%, 2/3/2000 1,005,000
900,000 Colorado Health Facilities
Authority, Series B, (Bank
One, Colorado LOC),
6.030%, 2/3/2000 900,000
36,900,000 Comerica Bank, 5.791% -
5.864%, 9/25/2000 -
11/9/2000 36,883,292
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
NOTES - VARIABLE-continued
2
BANKING-CONTINUED
$ 1,900,000 Continental Downtown
Properties, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 $ 1,900,000
5,795,000 Dellridge Care Center LP,
Series 1997, (Allfirst
LOC), 5.860%, 2/2/2000 5,795,000
3,445,000 Denver Urban Renewal
Authority, Series 1992-B,
(Paribas, Paris LOC),
5.880%, 2/3/2000 3,445,000
9,445,000 ERC Real Estate LLC,
(KeyBank, N.A. LOC),
6.100%, 2/3/2000 9,445,000
4,000,000 Frank Parsons Paper Co.,
Inc., Series 1999,
(Allfirst LOC), 5.871%,
2/4/2000 4,000,000
5,000,000 Greene County Development
Authority, Reynolds Lodges
LLC, Series 1999-A,
(Firstar Bank, N.A.,
Cincinnati LOC), 5.900%,
2/2/2000 5,000,000
5,000,000 Industrial Dimensions,
Inc., Series 1999, (Fifth
Third Bank of Northwestern
OH LOC), 5.830%, 2/3/2000 5,000,000
8,123,000 International Processing
Corp., (Bank One, Kentucky
LOC), 5.990%, 2/3/2000 8,123,000
2,000,000 Jeffersonville, IN, Series
1997-B, Wayne Steel, Inc.,
(Bank One, Ohio, N.A. LOC),
5.940%, 2/3/2000 2,000,000
5,500,000 Kenwood Country Club,
Inc., Series 1999,
(Firstar Bank, N.A.,
Cincinnati LOC), 5.900%,
2/3/2000 5,500,000
4,000,000 Lake Sherwood Senior
Living Center LLC, (Union
Planters NB, Memphis, TN
LOC), 6.290%, 2/3/2000 4,000,000
1,425,000 Lincoln Park Associates
Ltd. (Bank One, N.A. LOC),
5.980%, 2/3/2000 1,425,000
2,000,000 Liquid Asset Backed
Securities Trust, Series
1996-3, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.801%,
2/15/2000 2,000,000
9,657,209 Liquid Asset Backed
Securities Trust, Series
1997-1, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.793%,
2/15/2000 9,657,209
9,052,209 3 Liquid Asset Backed
Securities Trust, Series
1997-3, Sr. Notes, (AMBAC
INS), 6.151%, 3/28/2000 9,052,209
6,686,026 3 Liquid Asset Backed
Securities Trust, Series
1998-1, Sr. Notes, (AMBAC
INS), 5.819%, 2/25/2000 6,686,026
5,000,000 Maryland Industrial
Development Financing
Authority, Gen-Vec, Inc.
Facility, Series 1999,
(Allfirst LOC), 5.870%,
2/4/2000 5,000,000
4,100,000 Melberger, Clifford K. and
Ruth B., (PNC Bank, N.A.
LOC), 5.810%, 2/7/2000 4,100,000
9,500,000 Park Avenue Receivables
Corp., 5.475%, 2/3/2000 9,500,000
6,860,000 Pine Ridge Associates
Ltd., (Mellon Bank N.A.,
Pittsburgh LOC), 6.050%,
2/2/2000 6,860,000
7,055,000 Rubloff-Rockford LLC,
Series 1997, (National
City Bank,
Michigan/Illinois LOC),
5.860%, 2/2/2000 7,055,000
15,640,000 Scranton Times LP, Series
1997, (PNC Bank, N.A. LOC),
5.810% 2/7/2000 15,640,000
2,690,000 Solon, OH, IDRB Schneps
Family LP, (Bank One, Ohio,
N.A. LOC),
5.940%, 2/3/2000 2,690,000
7,520,000 Southern Coil Processing,
Inc. Notes, (AmSouth Bank
N.A., Birmingham LOC),
5.850%, 2/3/2000 7,520,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
NOTES - VARIABLE-continued
2
BANKING-CONTINUED
$ 1,640,000 Team Rahal of
Mechanicsburg, Inc.,
Series 1997, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 $ 1,640,000
1,795,000 Team Rahal, Inc., Series
1997, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 1,795,000
5,000,000 Three Rivers Funding
Corp., 5.880%, 2/17/2000 5,000,000
7,300,000 Tift County, GA
Development Authority,
Chickasha of Georgia
Project Series 1997, (Bank
of Tokyo-Mitsubishi Ltd.
LOC), 6.000%, 2/2/2000 7,300,000
1,700,000 Village Green Finance Co.,
LLC, Series 1997,
(Wachovia Bank of NC, N.A.
Winston-Salem LOC),
5.820%, 2/2/2000 1,700,000
1,240,000 Vista Funding Corp.,
Series 1995-A, (Firstar
Bank, N.A., Cincinnati
LOC), 6.100%, 2/3/2000 1,240,000
TOTAL 273,415,236
BROKERAGE-3.6%
84,000,000 Morgan Stanley, Dean
Witter & Co., 5.830 -
5.880%, 2/4/2000 84,000,000
FINANCE - AUTOMOTIVE-1.8%
42,000,000 General Motors Acceptance
Corp., 5.830%, 3/7/2000 42,000,000
FINANCE - COMMERCIAL-3.7%
25,000,000 Asset Securitization
Cooperative Corp., 5.831%
- 5.903%, 2/14/2000 -
3/7/2000 24,999,772
60,200,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 6.000% -
6.158%, 2/29/2000 -
3/22/2000 60,200,000
TOTAL 85,199,772
FINANCE - EQUIPMENT-0.7%
10,000,000 Comdisco, Inc., 6.656%,
2/29/2000 10,000,000
5,000,000 Deere (John) Capital
Corp., 6.074%, 2/1/2000 5,000,807
TOTAL 15,000,807
FINANCE - RETAIL-0.3%
8,000,000 AFS Insurance Premium
Receivables Trust, Series
1994-A, 7.019%, 2/15/2000 8,000,000
HOMEBUILDING-0.4%
8,900,000 Centex Corp., 6.540%,
4/27/2000 8,900,000
INSURANCE-6.6%
12,000,000 Allstate Life Insurance
Co., 6.616%, 2/1/2000 12,000,000
22,500,000 First Allmerica Financial
Life Insurance Co.,
6.306%, 2/1/2000 22,500,000
5,000,000 GE Life and Annuity
Assurance Co., 6.200%,
2/1/2000 5,000,000
30,000,000 Jackson National Life
Insurance Co., 5.900% -
6.160%, 2/1/2000 -
2/22/2000 30,000,000
25,000,000 Monumental Life Insurance
Co., 158, 6.180%, 2/6/2000 25,000,000
15,000,000 Principal Life Insurance
Co., 6.260%, 3/1/2000 15,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
NOTES - VARIABLE-continued
2
INSURANCE-CONTINUED
$ 13,000,000 Protective Life Insurance
Co., 6.200%, 2/1/2000 $ 13,000,000
15,000,000 Security Life of Denver
Insurance Co., 6.100%,
4/28/2000 15,000,000
10,000,000 Transamerica Life
Insurance and Annuity Co.,
6.094%, 2/1/2000 -
4/1/2000 10,000,000
5,000,000 Transamerica Occidental
Life Insurance Co.,
6.329%, 2/29/2000 5,000,000
TOTAL 152,500,000
TOTAL NOTES - VARIABLE 669,015,815
LOAN PARTICIPATION-4.0%
CHEMICALS-2.2% 7,500,000 DuPont Teijin Films U.K.
Ltd., (Guaranteed by Du
Pont (E.I.) de Nemours &
Co.), 6.000%, 2/22/2000 7,500,000
43,000,000 Teijin DuPont Films,
(Guaranteed by Du Pont
(E.I.) de Nemours & Co.),
6.000% - 6.100%, 2/29/2000
- 3/29/2000 43,000,000
TOTAL 50,500,000
ELECTRICAL EQUIPMENT-0.5%
12,100,000 Mt. Vernon Phenol Plant
Partnership, (Guaranteed
by General Electric Co.),
6.120%, 5/17/2000 12,100,000
FINANCE - AUTOMOTIVE-0.2%
6,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
6.210%, 2/1/2000 6,000,000
FINANCE - EQUIPMENT-1.1%
25,000,000 Pitney Bowes Credit Corp.,
5.809%, 2/10/2000 24,963,875
TOTAL LOAN PARTICIPATION 93,563,875
TIME DEPOSIT-2.2%
BANKING-2.2%
50,000,000 Societe Generale, Paris,
5.813%, 2/1/2000 50,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-7.5%
4
$ 49,500,000 Bank of America, 5.800%,
dated 1/31/2000, due
2/1/2000 $ 49,500,000
75,000,000 Deutsche Bank Financial,
Inc., 5.800%, dated
1/31/2000, due 2/1/2000 75,000,000
23,300,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.700%, dated 1/31/2000,
due 2/1/2000 23,300,000
25,000,000 Toronto Dominion
Securities (USA), Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 25,000,000
TOTAL REPURCHASE
AGREEMENTS 172,800,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 2,321,878,695
</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 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At January 31, 2000, these
securities amounted to $15,738,235 which represents 0.7% of net assets.
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 represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,316,019,703) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation
IDA -Industrial Development Authority
IDRB -Industrial Development Revenue Bond
INS -Insured
LOC -Letter of Credit
See Notes which are an integral part of the Financial Statements
Statements of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL PRIME CASH PRIME
VALUE
OBLIGATIONS OBLIGATIONS
OBLIGATIONS
FUND FUND
FUND
<S> <C> <C>
<C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 600,102,821 $ 4,768,354,931 $
2,321,878,695
Cash 3,953 - -
Income receivable 3,753,169 22,889,897 17,367,919
TOTAL ASSETS 603,859,943 4,791,244,828
2,339,246,614
LIABILITIES:
Payable for investments
purchased - 23,000,000
13,005,500
Payable for shares
redeemed - -
119,958
Income distribution
payable 1,669,061 19,935,135
9,917,589
Accrued expenses 62,793 403,507
183,864
TOTAL LIABILITIES 1,731,854 43,338,642 23,226,911
TOTAL NET ASSETS $ 602,128,089 $ 4,747,906,186 $ 2,316,019,703
NET ASSETS:
Institutional Shares $ 385,011,947 $ 3,552,028,420 $
1,464,772,259
Institutional Service
Shares 156,813,788 941,678,879
644,807,473
Institutional Capital
Shares 60,302,354 254,198,887
206,439,971
TOTAL NET ASSETS $ 602,128,089 $ 4,747,906,186 $
2,316,019,703
SHARES OUTSTANDING:
Institutional Shares 385,011,947 3,552,028,420
1,464,772,259
Institutional Service
Shares 156,813,788 941,678,879
644,807,473
Institutional Capital
Shares 60,302,354 254,198,887
206,439,971
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
Institutional Shares $1.00 $1.00 $1.00
Institutional Service
Shares $1.00 $1.00 $1.00
Institutional Capital
Shares $1.00 $1.00 $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL PRIME CASH PRIME
VALUE
OBLIGATIONS OBLIGATIONS
OBLIGATIONS
FUND FUND
FUND
<S> <C> <C>
<C>
INVESTMENT INCOME:
Interest $ 11,492,304 $ 110,742,532 $
63,805,090
EXPENSES:
Investment adviser fee 621,635 3,933,700
2,287,798
Administrative personnel
and services fee 230,607 1,482,342
862,148
Custodian fees 9,198 127,845
69,790
Transfer and dividend
disbursing agent fees and
expenses 37,351 63,464
57,131
Directors'/Trustees' fees 3,604 11,801
7,992
Auditing fees 7,518 7,867
5,739
Legal fees 9,480 11,801
4,592
Portfolio accounting fees 63,941 167,182
106,371
Shareholder services fee-
Institutional Shares - -
15,623
Shareholder services fee-
Institutional Service
Shares 129,753 1,263,556
807,577
Shareholder services fee-
Institutional Capital
Shares 144,269 326,171
331,859
Share registration costs 35,702 27,536
23,192
Printing and postage 12,326 15,735
19,350
Insurance premiums 13,482 100,309
56,189
Miscellaneous 3,914 15,735
12,513
TOTAL EXPENSES 1,322,780 7,555,044
4,667,864
WAIVERS:
Waiver of investment
adviser fee (467,728) (2,312,353)
(1,605,681)
Waiver of shareholder
services fee-Institutional
Shares - -
(15,623)
Waiver of shareholder
services fee-Institutional
Capital Shares (86,561) (195,702)
(199,115)
TOTAL WAIVERS (554,289) (2,508,055)
(1,820,419)
Net expenses 768,491 5,046,989
2,847,445
Net investment income 10,723,813 105,695,543
60,957,645
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
MUNICIPAL
OBLIGATIONS FUND
SIX MONTHS
ENDED
(unaudited) PERIOD ENDED
YEAR ENDED
JANUARY 31, JULY 31,
JANUARY 31,
2000 1999
1 1999
<S> <C> <C>
<C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 10,723,813 $ 8,046,126 $
13,575,634
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (7,009,718) (5,706,072)
(9,176,860)
Institutional Service
Shares (1,728,405) (1,210,234)
(2,031,566)
Institutional Capital
Shares (1,985,690) (1,129,820)
(2,367,208)
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (10,723,813) (8,046,126)
(13,575,634)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 3,627,131,426 3,686,794,227
6,671,442,391
Net asset value of shares
issued to shareholders in
payment of distributions
declared 3,078,152 2,790,181
4,797,681
Cost of shares redeemed (3,563,407,568) (3,640,523,643)
(6,466,730,133)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 66,802,010 49,060,765
209,509,939
Change in net assets 66,802,010 49,060,765
209,509,939
NET ASSETS:
Beginning of period 535,326,079 486,265,314
276,755,375
End of period $ 602,128,089 $ 535,326,079 $
486,265,314
</TABLE>
1 The fund has changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
PRIME CASH
OBLIGATIONS FUND
SIX MONTHS
ENDED
(unaudited) PERIOD
ENDED YEAR ENDED
JANUARY 31, JULY 31,
JANUARY 31,
2000 1999
1 1999
<S> <C> <C>
<C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 105,695,543 $ 85,879,759 $
122,009,606
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (72,721,053) (52,994,564)
(73,059,518)
Institutional Service
Shares (26,072,744) (21,202,105)
(36,684,622)
Institutional Capital
Shares (6,901,746) (11,683,090)
(12,265,466)
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (105,695,543) (85,879,759)
(122,009,606)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 31,955,436,436 24,795,354,445
33,162,916,740
Net asset value of shares
issued to shareholders in
payment of distributions
declared 45,791,699
35,271,569 55,512,391
Cost of shares redeemed (30,387,022,597) (24,647,235,068)
(32,428,562,553)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 1,614,205,538 183,390,946
789,866,578
Change in net assets 1,614,205,538 183,390,946
789,866,578
NET ASSETS:
Beginning of period 3,133,700,648 2,950,309,702
2,160,443,124
End of period $ 4,747,906,186 $ 3,133,700,648 $
2,950,309,702
</TABLE>
1 The fund has changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
PRIME VALUE
OBLIGATIONS FUND
SIX MONTHS
ENDED
(unaudited) PERIOD ENDED
YEAR ENDED
JANUARY 31, JULY 31,
JANUARY 31,
2000 1999
1 1999
<S> <C> <C>
<C>
INCREASE (DECREASE) IN
NET
ASSETS
OPERATIONS:
Net investment income $ 60,957,645 $ 57,197,837 $
86,540,164
DISTRIBUTIONS
TO SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (37,407,899) (38,874,779)
(60,707,164)
Institutional Service
Shares (16,581,631) (12,570,275)
(19,716,305)
Institutional Capital
Shares (6,968,115) (5,752,783)
(6,116,695)
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (60,957,645) (57,197,837)
(86,540,164)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 17,875,953,483 17,356,187,248
26,516,611,802
Net asset value of shares
issued to shareholders in
payment of distributions
declared 32,277,704 39,241,753
51,764,190
Cost of shares redeemed (17,723,421,217) (17,433,612,169)
(25,657,179,044)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 184,809,970 (38,183,168)
911,196,948
Change in net assets 184,809,970 (38,183,168)
911,196,948
NET ASSETS:
Beginning of period 2,131,209,733 2,169,392,901
1,258,195,953
End of period $ 2,316,019,703 $ 2,131,209,733 $
2,169,392,901
</TABLE>
1 The fund has changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NET ASSET DISTRIBUTIONS
VALUE, NET FROM NET
BEGINNING INVESTMENT INVESTMENT
YEAR ENDED JULY 31 OF PERIOD INCOME INCOME
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS FUND
1997 3 $1.00 0.03 (0.03)
1998 $1.00 0.04 (0.04)
1999 $1.00 0.03 (0.03)
1999 4 $1.00 0.02 (0.02)
2000 5 $1.00 0.02 (0.02)
PRIME CASH OBLIGATIONS FUND
1995 7 $1.00 0.02 (0.02)
1996 $1.00 0.06 (0.06)
1997 3 $1.00 0.05 (0.05)
1998 $1.00 0.05 (0.05)
1999 $1.00 0.05 (0.05)
1999 4 $1.00 0.02 (0.02)
2000 5 $1.00 0.03 (0.03)
PRIME VALUE OBLIGATIONS FUND
1997 3 $1.00 0.05 (0.05)
1998 $1.00 0.05 (0.05)
1999 $1.00 0.05 (0.05)
1999 4 $1.00 0.02 (0.02)
2000 5 $1.00 0.03 (0.03)
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown.
3 Federated Investment Management Company, formerly Federated Management, became
the fund's investment adviser on November 15, 1996. Prior to November 15, 1996,
Lehman Brothers Global Asset Management served as the fund's investment adviser.
4 The fund has changed its fiscal year-end from January 31 to July 31.
5 For the six month period ended January 31, 2000.
6 Computed on an annualized basis.
7 Reflects operations for the period from October 6, 1994 (date of initial
public investment) to January 31, 1995.
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET NET
ASSETS,
NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END OF
PERIOD
END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000
OMITTED)
<S> <C> <C> <C> <C>
<C>
$1.00 3.42% 0.30% 2.90% 0.35%
$ 0.30
$1.00 3.56% 0.30% 3.53%
0.38% 17,701
$1.00 3.40% 0.30% 3.40% 0.31%
114,535
$1.00 1.53% 0.30% 6 3.00% 6 0.33%
6 74,609
$1.00 1.74% 0.30% 6 3.44% 6 0.30%
6 60,302
$1.00 1.66% 0.27% 6 4.15% 6 0.12%
6 8,318
$1.00 5.94% 0.32% 5.75%
0.08% 11,811
$1.00 5.23% 0.32% 5.00%
0.18% 48,910
$1.00 5.48% 0.30% 5.46% 0.26%
391,159
$1.00 5.37% 0.30% 5.18% 0.27%
230,193
$1.00 2.36% 0.30% 6 4.64% 6 0.28% 6
245,815
$1.00 2.68% 0.30% 6 5.29% 6 0.27% 6
254,199
$1.00 5.26% 0.28% 5.17%
0.31% 20,006
$1.00 5.55% 0.27% 5.61%
0.32% 67,064
$1.00 5.40% 0.28% 5.23% 0.30%
200,098
$1.00 2.38% 0.28% 6 4.76% 6 0.30% 6
275,756
$1.00 2.67% 0.28% 6 4.61% 6 0.29% 6
206,440
</TABLE>
Notes to Financial Statements
JANUARY 31, 2000 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust, (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of 40 portfolios. The financial
statements of the following portfolios (individually referred to as the "Fund",
or collectively as the "Funds") are presented herein:
<TABLE>
<CAPTION>
PORTFOLIO NAME DIVERSIFICATION CLASS OF SHARES
INVESTMENT OBJECTIVE
<S> <C> <C>
<C>
Municipal Obligations Fund diversified Institutional Shares To
provide current income
Institutional Service Shares
exempt from federal
Institutional Capital Shares
regular income tax
consistent with stability
of
principal.
Prime Cash Obligations Fund diversified Institutional Shares To
provide current income
Institutional Service Shares
consistent with stability
Institutional Capital Shares of
principal and liquidity.
Prime Value Obligations Fund diversified Institutional Shares To
provide current income
Institutional Service Shares
consistent with stability
Institutional Capital Shares of
principal and liquidity.
</TABLE>
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
The Funds use the amortized cost method to value their portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Funds 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 Funds 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.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' 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 Funds could receive less
than the repurchase price on the sale of collateral securities. The Funds, along
with other affiliated investment companies, may utilize a joint trading account
for the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at fair market value. The Funds offer multiple classes of shares,
which differ in their respective distribution and service fees. All shareholders
bear the common expenses of the Funds based on average daily net assets of each
class, without distinction between share classes. Dividends are declared
separately for each class. No class has preferential dividend rights;
differences in per share dividend rates are generally due to differences in
separate class expenses.
FEDERAL TAXES
It is the Funds' policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provisions for federal tax
are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Funds may engage in when-issued or delayed delivery transactions. The Funds
record when-issued securities on the trade date and 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. Losses may occur on these transactions due to changes in market conditions
or the failure of counterparties to perform under the contract.
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 Funds 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.
CHANGE IN FISCAL YEAR
Municipal Obligations Fund, Prime Cash Obligations Fund and Prime Value
Obligations Fund have changed their fiscal year-ends from January 31 to July 31.
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 a trade date basis.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED YEAR
ENDED
JANUARY 31, JULY 31, JANUARY 31,
MUNICIPAL OBLIGATIONS FUND 2000 1999 1
1999
<S> <C> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 2,864,665,365 3,220,798,056 5,212,142,622
Shares issued to
shareholders in payment of
distributions declared 1,141,383 1,004,656 1,302,615
Shares redeemed (2,834,828,428) (3,171,653,273) (5,127,376,711)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 30,978,320 50,149,439 86,068,526
INSTITUTIONAL SERVICE
SHARES:
Shares sold 314,612,990 217,446,882 422,524,378
Shares issued to
shareholders in payment of
distributions declared 1,103,221 1,080,682 1,503,612
Shares redeemed (265,585,981) (179,672,680) (397,415,401)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 50,130,230 38,854,884 26,612,589
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 447,853,071 248,572,618 1,036,775,391
Shares issued to
shareholders in payment of
distributions declared 833,548 704,843 1,991,454
Shares redeemed (462,993,159) (289,197,690) (941,938,021)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS (14,306,540) (39,920,229) 96,828,824
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 66,802,010 49,084,094 209,509,939
</TABLE>
1 The fund has changed its fiscal year-end from January 31 to July 31.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED YEAR
ENDED
PRIME CASH OBLIGATIONS JANUARY 31, JULY 31, JANUARY
31,
FUND 2000 1999 1
1999
<S> <C> <C>
<C>
INSTITUTIONAL SHARES:
Shares sold 25,812,285,601 18,081,938,275
23,532,773,371
Shares issued to
shareholders in payment of
distributions declared 37,802,892 26,581,479
44,134,116
Shares redeemed (24,227,947,440) (18,003,898,560)
(22,852,260,827)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 1,622,141,053 104,621,194
724,646,660
INSTITUTIONAL SERVICE
SHARES:
Shares sold 5,043,773,891 4,467,896,195
7,290,975,466
Shares issued to
shareholders in payment of
distributions declared 5,359,279 3,350,044
5,275,668
Shares redeemed (5,065,452,343) (4,408,099,082)
(7,070,064,987)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (16,319,173) 63,147,157
226,186,147
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 1,099,376,944 2,245,519,975
2,339,167,903
Shares issued to
shareholders in payment of
distributions declared 2,629,528 5,340,046
6,102,607
Shares redeemed (1,093,622,814) (2,235,237,426)
(2,506,236,739)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS 8,383,658 15,622,595
(160,966,229)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 1,614,205,538 183,390,946
789,866,578
</TABLE>
1 The fund has changed its fiscal year-end from January 31 to July 31.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED YEAR
ENDED
PRIME VALUE OBLIGATIONS JANUARY 31, JULY 31, JANUARY
31,
FUND 2000 1999 1
1999
<S> <C> <C>
<C>
INSTITUTIONAL SHARES:
Shares sold 11,233,594,319 11,553,124,074
19,781,464,858
Shares issued to
shareholders in payment of
distributions declared 19,884,976 27,134,621
34,346,178
Shares redeemed (10,936,424,092) (11,906,664,823)
(19,207,430,021)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 317,055,203 (326,406,128)
608,381,015
INSTITUTIONAL SERVICE
SHARES:
Shares sold 5,683,567,035 4,750,407,849
5,129,107,787
Shares issued to
shareholders in payment of
distributions declared 8,972,651 8,335,094
12,725,748
Shares redeemed (5,755,469,263) (4,546,178,066)
(4,972,051,133)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (62,929,577) 212,564,877
169,782,402
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 958,792,129 1,052,655,325
1,606,039,157
Shares issued to
shareholders in payment of
distributions declared 3,420,077 3,772,038
4,692,264
Shares redeemed (1,031,527,862) (980,769,280)
(1,477,697,890)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS (69,315,656) 75,658,083
133,033,531
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 184,809,970 (38,183,168)
911,196,948
</TABLE>
1 The fund has changed its fiscal year-end from January 31 to July 31.
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Funds' investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
the percentage of the Funds' average daily net assets as follows:
<TABLE>
<CAPTION>
INVESTMENT ADVISER
FUND FEE PERCENTAGE
<S> <C>
Municipal Obligations Fund 0.20%
Prime Cash Obligations Fund 0.20%
Prime Value Obligations Fund 0.20%
</TABLE>
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 Funds with administrative personnel and services. The
fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Funds will pay FSSC up to 0.25% of average daily
net assets of each Fund 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 Funds. 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 Funds' accounting records for which it receives a fee. The
fee is based on the level of each Fund's average daily net assets for the
period, plus out-of-pocket expenses.
INTERFUND TRANSACTIONS
During the period ended January 31, 2000, the Funds engaged in purchase and sale
transactions with funds that have a common investment adviser (or affiliated
investment advisers), common Directors/Trustees, and/or common Officers. These
purchase and sale transactions complied with Rule 17a-7 under the Act. Interfund
transactions were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
<S> <C> <C>
Municipal Obligations Fund $ 1,047,410,000 $ 1,359,638,000
Prime Cash Obligations Fund $ - $ 5,000,000
</TABLE>
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the funds' prospectuses which contain facts
concerning each fund's objective and policies, management fees, expenses, and
other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Money Market Obligations Trust
Institutional Capital Shares
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
[Graphic]
Federated
Money Market Obligations Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N633
Cusip 60934N591
Cusip 60934N567
25245 (3/00)
[Graphic]
JANUARY 31, 2000
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report for Money Market Obligations
Trust-Institutional Shares and Institutional Service Shares. This report
combines information for six money market mutual funds that are part of the
Trust. The report covers the first half of each fund's fiscal year, which is the
six-month period ended January 31, 2000. It begins with investment reviews by
the funds' portfolio managers on each fund's market. Following the investment
reviews are the funds' portfolios of investments and financial statements.
As money market funds, each of these funds gives you the opportunity to put your
cash to work pursuing daily dividends while giving you the comfort of a high
level of liquidity and a stable net asset value of $1.00 per share. 1 The
following are fund-by-fund performance highlights:
GOVERNMENT OBLIGATIONS FUND invests in short-term U.S. government obligations
and repurchase agreements fully collateralized by U.S. government securities.
During the six-month reporting period, the fund paid dividends totaling $0.03
per share to shareholders of both Institutional Shares and Institutional Service
Shares. At the end of the reporting period, the fund's net assets totaled $7.7
billion.
GOVERNMENT OBLIGATIONS TAX-MANAGED FUND invests in U.S. government securities.
The fund's portfolio is managed so that dividends are exempt from state and
local income taxes. 2 During the six-month reporting period, the fund paid
double-tax-free dividends totaling $0.03 per share to shareholders of both
Institutional Shares and Institutional Service Shares.2 At the end of the
reporting period, the fund's net assets totaled $2.7 billion.
MUNICIPAL OBLIGATIONS FUND pursues tax-free income by investing in a portfolio
of short-term securities issued by municipalities across the United States. 2
During the six-month reporting period, the fund paid tax- free dividends
totaling $0.02 per share to shareholders of both Institutional Shares and
Institutional Service Shares.2 At the end of the reporting period, the fund's
net assets totaled $602 million.
PRIME CASH OBLIGATIONS FUND invests in a well-diversified portfolio of
high-quality money market securities. During the six-month reporting period, the
fund paid dividends totaling $0.03 per share to shareholders of both
Institutional Shares and Institutional Service Shares. At the end of the
reporting period, the fund's net assets totaled $4.7 billion.
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the funds.
2 Income may be subject to the federal alternative minimum tax. Unless otherwise
exempt, shareholders are required to pay federal income tax on dividends.
PRIME VALUE OBLIGATIONS FUND invests in a well-diversified portfolio of
high-quality money market securities. During the six-month reporting period, the
fund paid dividends totaling $0.03 per share to shareholders of both
Institutional Shares and Institutional Service Shares. At the end of the
reporting period, the fund's net assets totaled $2.3 billion.
TAX-FREE OBLIGATIONS FUND pursues tax-free income by investing in a portfolio of
short-term securities issued by municipalities across the United States. 2
During the six-month reporting period, the fund paid tax- free dividends of
$0.02 per share to shareholders of both Institutional Shares and Institutional
Service Shares.2 At the end of the reporting period, the fund's net assets
totaled $3.5 billion.
Thank you for selecting one or more of these funds as a convenient way to help
your ready cash earn daily income. As always, we welcome your questions,
comments or suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
Economic Overview
The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions
over the funds' semi-annual reporting period ended January 31, 2000. These two
quarter-point moves, combined with an initial tightening of similar magnitude at
the end of June 1999, brought the federal funds target rate back to 5.50%. This
was the level of the federal funds target rate prior to the fourth quarter of
1998, when the Fed infused liquidity into the fixed income markets during a
period of global economic turmoil.
Robust economic growth prompted the policy moves by the Fed. Economic growth in
1999 exceeded 4.00%, well in excess of what is generally considered to be the
long-run non-inflationary growth potential of the economy. Consumer spending
continued to be the main drive behind the impressive pace of growth, and
although mortgage rates increased by close to 150 basis points over the
reporting period, the interest-sensitive sectors of the economy remained
persistently strong. Inflationary pressures at the producer and consumer levels
remained remarkably absent in spite of this growth. However, while the notion of
a non-inflationary potential, traditionally 2.00% to 2.50%, has increased in
recent times due to evidence that productivity enhancements have been
controlling inflationary pressures, continued growth well above 3.00% is likely
to keep the Fed on its current tightening course in the near future.
During the reporting period, short-term interest rates reflected, and largely
anticipated, the monetary policy tightenings that took place. The yield on the
1-year agency discount note, for example, began the reporting period at 5.66%,
traded up to 5.80% by the time of the Fed's decision to tighten rates in August,
and up again to 5.90% by the second tightening of the reporting period in
November. The yield continued to climb steadily to close the reporting period at
6.43%, two days prior to another decision by the Fed to tighten, which brought
the federal funds target rate to its current 5.75% level.
Much attention, both in the financial markets and the popular press, was given
in the fourth quarter of 1999 to the potential dislocations feared at year end
due to the Year 2000 effect. In hindsight, of course, the world experienced very
few troubles, and the economic impact appears to be non- existent. However, very
short-term government securities did seem to reflect a "flight to quality"
concentrated in the last few weeks of the trading year. Furthermore, the steps
that the Fed had taken to assure that sufficient liquidity would be available to
the banking system at year end in the event of a crisis caused rates on
repurchase agreements to trade around 3.00% in the last few days of the year,
well below the then typical level of 5.50%.
Investment Review
GOVERNMENT OBLIGATIONS FUND
Government Obligations Fund, which is rated AAAm 1 by Standard & Poor's ("S&P"),
Aaa1 by Moody's Investors Service ("Moody's"), and AAA1 by Fitch IBCA, Inc.
("Fitch"), is invested in direct U.S. Treasury and agency obligations and in
repurchase agreements which have these securities as collateral. The fund, at
times, maintains a small U.S. Treasury position for liquidity purposes.
The fund was managed within a 40- to 50-day average maturity target range
throughout most of the reporting period, moving within that range according to
relative value opportunities available in the market. The fund continued to
pursue a barbelled structure, combining significant positions in repurchase
agreements, agency floating rate notes and short-term agency discount notes with
purchases of longer-term agency securities having 6- to 13-month maturities.
During the reporting period the floating rate position was kept close to its
maximum of 25% of fund net assets to maximize the fund's responsiveness to
changes in short-term interest rates. Floating rate products performed very well
over the reporting period. While Treasury bill-based holdings were the best
performing agency floaters in 1999 overall, 1- and 3-month floaters based on the
London Inter-Bank Offered Rate (LIBOR) did especially well in the fourth
quarter, as dislocations in the LIBOR markets due to Year 2000 fears caused this
index to trade well above its typical levels. The fund held balanced positions
of all of these index types. The fund also reduced its holdings of overnight
securities as the end of 1999 approached, in anticipation of very low funding
levels.
With the Gross Domestic Product continuing to grow, it is anticipated that the
Federal Reserve Board (the "Fed") will gradually restrict monetary policy
further until Fed officials see concrete signs of a slowing in economic activity
to a more sustainable pace.
GOVERNMENT OBLIGATIONS TAX-MANAGED FUND
Government Obligations Tax-Managed Fund is rated AAAm 1 by Standard & Poor's
("S&P") and Aaa1 by Moody's Investors Service ("Moody's") and invests only in
U.S. Treasury and U.S. government agency obligations. The fund invests in issues
of the Student Loan Marketing Association, the Federal Farm Credit Bank System,
the Federal Home Loan Bank System and the Tennessee Valley Authority. The fund
may maintain a small U.S. Treasury position for liquidity purposes. The fund
does not invest in repurchase agreements and is managed to provide distributions
which may be exempt from state and local taxes.
1 An AAAm rating is obtained after S&P evaluates a number of factors, including
credit quality, market price exposure, and management. S&P monitors the
portfolio weekly for developments that could cause changes in the ratings. Money
market funds and bond funds rated Aaa by Moody's are judged to be of an
investment quality similar to Aaa-rated fixed income obligations; that is, they
are judged to be of the best quality. Fitch's money market fund ratings are an
assessment of the safety of invested principal and the ability to maintain a
stable market value of the fund's shares. Ratings are based on an evaluation of
several factors, including credit quality, diversification, and maturity of
assets in the portfolio, as well as managed strength and operational
capabilities. Ratings are subject to change and do not remove interest rate
risk.
Movements in short-term interest rates reflected economic strength and the
Federal Reserve Board's (the "Fed's") expectations. The yield on the one- year
agency discount note began the reporting period at 5.66%. Anticipating Fed
interest rate action, the yield on the security climbed to 5.80% by August 24,
the day of the first Fed tightening in the reporting period. The yield continued
to climb to 5.90% by the second Fed tightening in mid-November and ended the
reporting period yielding 6.43%.
In the face of the uncertainty surrounding the Year 2000 effect, the Fed was on
hold but lower short-term interest rates were expected. In this environment, the
fund reduced its holdings of ultra- short agency paper and focused on purchasing
securities in the two- and three-month areas of the curve. The fund maintained a
40- to 50-day average maturity target range for nearly the entire reporting
period. In late January, the fund shortened its target range to 35 to 45 days in
light of ongoing economic strength and expectations for further interest rate
increases. At the end of the reporting period, the fund's portfolio continued to
be barbelled in structure, combining short-term agency and floating rate paper
with securities maturing in 6 to 13 months. On January 31, 2000, 23% of the
fund's assets were invested in U.S. government agency floating rate paper,
including a position in a Student Loan Marketing Association master note, to
help provide liquidity for the portfolio.
Going forward, it is reasonable to expect further interest rate increases as the
Fed puts its anti-inflation efforts in gear. We will continue to monitor
changing economic conditions and market developments to derive an appropriate
target range and to best serve our clients.
MUNICIPAL OBLIGATIONS FUND
Municipal Obligations Fund invests in high-quality, short-term tax-exempt
securities. Typical investments include, but are not limited to, variable rate
demand notes (VRDNs), commercial paper equivalents and fixed-rate notes and
bonds. For the six-month reporting period, the net assets of the fund increased
from $535 million to $602 million, while the seven-day net yield for the fund's
Institutional Shares increased from 3.22% to 3.46% and the fund's Institutional
Service Shares increased from 2.97% to 3.21%. 2 The average maturity of the fund
on January 31, 2000, was 47 days.
2 Past performance is no guarantee of future results. Yields will vary. Yields
quoted for money market funds most closely reflect the fund's current earnings.
Interest rates in the tax-exempt money markets over the reporting period were
influenced by Federal Reserve Board (the "Fed") tightenings as well as
expectations of future tightenings. Supply and demand factors also played a
large role in the absolute level of interest rates, as demand (cash inflows into
the market) remained steady over most of the reporting period. New supply of
fixed-rate notes was low relative to demand as municipalities continued to
benefit from a strong economy and record tax collections.
Yields on VRDNs, which comprised close to 70% of the fund's assets, started the
reporting period at 3.00%, but drifted slowly upward, reflecting the Fed's
interest rate moves as well as supply and demand. In late December, yields
spiked to over 5.50%, reflecting the reluctance of dealers to position these
instruments over year-end. Strong demand in January brought yields down to 3.00%
and they ended the reporting period at 3.25%.
Going forward, the average maturity of the fund will continue to be managed in
accordance with expectations of continued monetary policy tightenings.
Therefore, the fund will continue to keep the average maturity short, waiting
for yields to rise further before locking in attractive fixed-rate note
opportunities. Fund management continues to watch, with great interest, market
developments in order to best serve our municipal clients.
PRIME CASH OBLIGATIONS FUND AND PRIME VALUE OBLIGATIONS FUND
Prime Cash Obligations Fund and Prime Value Obligations Fund invest 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 of Prime Cash Obligations Fund 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. Portfolio securities of Prime Value Obligations Fund 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,
short term notes, time deposits, variable rate instruments and repurchase
agreements.
The Federal Reserve Board (the "Fed") continued to act preemptively to quell
inflationary threats and raised the federal funds target rate from 5.00% to
5.25% on August 24, 1999, and then again from 5.25% to 5.50% on November 16,
1999. The market had already anticipated such actions, resulting in a much
steeper money market yield curve throughout most of the reporting period.
Thirty-day commercial paper started the reporting period at 5.11% and then
traded steadily up to the 5.50% level by the end of November. Seasonal and Year
2000 effects took hold in December and caused the 30-day commercial paper rate
to spike as high as 6.46%, before retreating to 5.78% at the end of the
reporting period.
The target average maturity range for the funds was decreased from 45- 55 days
to 40-50 days on January 10, 2000, reflecting the Fed's concern about
overzealousness in the stock markets and potential inflationary threats. In
structuring the funds, there was continued emphasis placed on positioning
30%-35% of the funds' core assets in variable rate demand notes and
accomplishing a modest barbell structure.
During the six months ended January 31, 2000, the net assets of Prime Cash
Obligations Fund increased from $3.1 billion to $4.7 billion, while the
seven-day net yield of the fund's Institutional Shares increased from 4.96% to
5.67% and the fund's Institutional Service Shares increased from 4.71% to 5.42%.
2 The effective average maturity of this fund on January 31, 2000 was 42 days.
During the six months ended January 31, 2000, the net assets of Prime Value
Obligations Fund increased from $2.1 billion to $2.3 billion, while the
seven-day net yield for the fund's Institutional Shares increased from 4.99% to
5.71% and Institutional Service Shares increased from 4.74% to 5.46%. 2 The
effective average maturity of this fund on January 31, 2000 was 44 days.
TAX-FREE OBLIGATIONS FUND
Tax-Free Obligations Fund invests in high quality, short-term tax-exempt
securities. Typical investments include, but are not limited to, variable rate
demand notes (VRDNs), commercial paper equivalents and fixed-rate notes and
bonds. For the six-month reporting period, the seven-day net yield of the fund's
Institutional Shares increased from 3.00% to 3.20% and the fund's Institutional
Service Shares increased from 2.75% to 2.95%. 2 The average maturity of the fund
on January 31, 2000, was 38 days.
Interest rates in the tax-exempt money markets over the reporting period were
influenced by Federal Reserve Board (the "Fed") tightenings as well as
expectations of future tightenings. Supply and demand factors also played a
large role in the absolute level of interest rates, as demand (cash inflows into
the market) remained steady over most of the reporting period. New supply of
fixed-rate notes was low relative to demand as municipalities continued to
benefit from a strong economy and record tax collections.
2 Past performance is no guarantee of future results. Yields will vary. Yields
quoted for money market funds most closely reflect the fund's current earnings.
Yields on VRDNs, which comprised close to 70% of the fund's net assets, started
the period at 3.00%, but drifted slowly upward, reflecting the Fed's interest
rate moves as well as supply and demand. In late December, yields spiked to over
5.50%, reflecting the reluctance of dealers to position these instruments over
year-end. Strong demand in January brought yields down to 3.00% and they ended
the reporting period at 3.25%.
Going forward, the average maturity of the fund will continue to be managed in
accordance with expectations of continued monetary policy tightenings.
Therefore, the fund will continue to keep the average maturity short, waiting
for yields to rise further before locking in attractive fixed-rate note
opportunities. Fund management continues to watch, with great interest, market
developments in order to best serve our municipal clients.
Shareholder Meeting Results
A Special Meeting of Shareholders of Municipal Obligations Fund, Prime Cash
Obligations Fund and Prime Value Obligations Fund was held on September 23,
1999. On July 26, 1999, the record date for shareholders voting at the meeting,
there were 509,899,505 total outstanding shares of the Municipal Obligations
Fund, 3,196,183,791 total outstanding shares of the Prime Cash Obligations Fund,
and 2,129,862,319 total outstanding shares of the Prime Value Obligations Fund.
The following items were considered by shareholders of the funds and the results
of their voting were as follows:
AGENDA ITEM 1:
To elect five Trustees. 1
MUNICIPAL OBLIGATIONS FUND
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
Nicholas P. Constantakis 308,562,058 1,285,396
John F. Cunningham 308,562,058 1,285,396
J. Christopher Donahue 308,562,058 1,285,396
Charles F. Mansfield, Jr. 308,562,058 1,285,396
John S. Walsh 308,562,058 1,285,396
</TABLE>
PRIME CASH OBLIGATIONS FUND
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
Nicholas P. Constantakis 1,903,382,954 559,977
John F. Cunningham 1,903,382,954 559,977
J. Christopher Donahue 1,903,382,954 559,977
Charles F. Mansfield, Jr. 1,903,382,954 559,977
John S. Walsh 1,903,382,954 559,977
</TABLE>
PRIME VALUE OBLIGATIONS FUND
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
Nicholas P. Constantakis 1,184,406,669 4,078,150
John F. Cunningham 1,184,503,612 3,981,207
J. Christopher Donahue 1,184,503,612 3,981,207
Charles F. Mansfield, Jr. 1,184,503,612 3,981,207
John S. Walsh 1,184,503,612 3,981,207
</TABLE>
1 The following Trustees continued their terms: John F. Donahue, Thomas G.
Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D., Peter E. Madden,
John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts.
AGENDA ITEM 2:
MUNICIPAL OBLIGATIONS FUND
To approve a proposed amendment and Plan of Reorganization between Money Market
Obligations Trust II, on behalf of it series, Municipal Obligations Fund (the
"Municipal Fund") and Money Market Obligations Trust, on behalf of its series,
Municipal Obligations Fund (the "New Municipal Fund") whereby the New Municipal
Fund would acquire all of the assets of the Municipal Fund in exchange for
shares of the New Municipal Fund to be distributed pro rata by the Municipal
Fund to its shareholders in complete liquidation and termination of the
Municipal Fund.
<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTENTIONS NON-VOTES
<S> <C> <C> <C>
291,381,643 1,044,999 904,413 16,516,399
</TABLE>
PRIME CASH OBLIGATIONS FUND
To approve a proposed amendment and Plan of Reorganization between Money Market
Obligations Trust II, on behalf of it series, Prime Cash Obligations Fund (the
"Prime Cash Fund") and Money Market Obligations Trust, on behalf of its series,
Prime Cash Obligations Fund (the "New Prime Cash Fund") whereby the New Cash
Fund would acquire all of the assets of the Prime Cash Fund in exchange for
shares of the New Prime Cash Fund to be distributed pro rata by the Prime Cash
Fund to its shareholders in complete liquidation and termination of the Prime
Cash Fund.
<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTENTIONS NON-VOTES
<S> <C> <C> <C>
1,855,098,576 7,139,425 24,202,022 17,502,908
</TABLE>
PRIME VALUE OBLIGATIONS FUND
To approve a proposed amendment and Plan of Reorganization between Money Market
Obligations Trust II, on behalf of it series, Prime Value Obligations Fund (the
"Prime Value Fund") and Money Market Obligations Trust, on behalf of its series,
Prime Value Obligations Fund (the "New Prime Value Fund") whereby the New Value
Fund would acquire all of the assets of the Prime Value Fund in exchange for
shares of the New Prime Value Fund to be distributed pro rata by the Prime Value
Fund to its shareholders in complete liquidation and termination of the Prime
Value Fund.
<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTENTIONS NON-VOTES
<S> <C> <C> <C>
1,051,986,244 20,628,726 16,208,046 99,661,803
</TABLE>
Portfolio of Investments
Government Obligations Fund
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM OBLIGATIONS-
59.1%
$ 35,000,000 1 Federal Farm Credit Bank,
Discount Notes, 5.940%,
1/23/2001 $ 32,938,325
40,500,000 Federal Farm Credit Bank,
Notes, 5.400%, 7/3/2000 40,474,406
545,000,000 1 Federal Home Loan Bank,
Discount Notes, 5.370% -
5.950%,
2/2/2000 -1/12/2001 541,465,710
225,000,000 2 Federal Home Loan Bank,
Floating Rate Notes,
5.581% - 5.839%,
2/11/2000 -2/18/2000 224,899,714
419,650,000 Federal Home Loan Bank,
Notes, 4.790% - 6.372%,
2/4/2000 - 2/7/2001 419,562,970
704,292,000 1 Federal Home Loan Mortgage
Corp., Discount Notes,
5.180% - 5.820%,
2/2/2000 - 8/4/2000 699,589,993
230,000,000 2 Federal Home Loan Mortgage
Corp., Floating Rate
Notes, 5.586% - 5.640%,
2/18/2000 - 2/22/2000 229,902,934
816,269,000 1 Federal National Mortgage
Association, Discount
Notes, 5.040% - 5.880%,
2/7/2000 - 6/22/2000 809,136,767
533,000,000 2 Federal National Mortgage
Association, Floating Rate
Notes, 5.571% - 5.970%,
2/10/2000 - 3/23/2000 532,740,832
185,500,000 Federal National Mortgage
Association, Notes, 4.860%
- 6.445%,
2/10/2000 -2/23/2001 185,123,192
95,000,000 Federal National Mortgage
Association, Notes,
5.632%, 2/1/2000 95,000,000
291,737,000 Housing and Urban
Development, 6.201%,
6/30/2000 291,737,000
37,800,000 Student Loan Marketing
Association, Notes, 4.930%
- 6.045%,
2/8/2000 -11/3/2000 37,788,966
430,000,000 2 Student Loan Marketing
Association, Floating Rate
Notes,
5.720% -6.249%, 2/1/2000 429,821,028
TOTAL SHORT-TERM
OBLIGATIONS 4,570,181,837
REPURCHASE AGREEMENTS-
43.7% 3
150,000,000 ABN AMRO Chicago Corp.,
5.790%, dated 1/31/2000,
due 2/1/2000 150,000,000
980,000,000 Bank of America, 5.800%,
dated 1/31/2000, due
2/1/2000 980,000,000
110,000,000 Barclays Capital, Inc.,
5.800%, dated 1/31/2000,
due 2/1/2000 110,000,000
150,000,000 Bear, Stearns and Co.,
5.800%, dated 1/31/2000,
due 2/1/2000 150,000,000
300,000,000 Deutsche Bank AG, 5.670%,
dated 1/31/2000, due
2/1/2000 300,000,000
15,300,000 Deutsche Bank AG, 5.700%,
dated 1/31/2000, due
2/1/2000 15,300,000
200,000,000 First Union Capital
Markets, 5.800%, dated
1/31/2000, due 2/1/2000 200,000,000
325,000,000 Goldman Sachs Group LP,
5.800%, dated 1/31/2000,
due 2/1/2000 325,000,000
195,000,000 Morgan Stanley Group,
Inc., 5.800%, dated
1/31/2000, due 2/1/2000 195,000,000
230,000,000 Paribas Corp., 5.800%,
dated 1/31/2000, due
2/1/2000 230,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-
continued 3
$ 265,000,000 Prudential Securities,
Inc., 5.800%, dated
1/31/2000, due 2/1/2000 $ 265,000,000
390,000,000 Salomon Smith Barney,
Inc., 5.800%, dated
1/31/2000, due 2/1/2000 390,000,000
25,000,000 Warburg Dillon Reed LLC,
5.650%, dated 1/31/2000,
due 2/1/2000 25,000,000
50,000,000 4 Warburg Dillon Reed LLC,
5.680%, dated 1/20/2000,
due 2/17/2000 50,000,000
TOTAL REPURCHASE
AGREEMENTS 3,385,300,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 7,955,481,837
</TABLE>
1 Each issue shows the rate of discount at the time of purchase.
2 Current rate and next reset date shown.
3 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.
4 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($7,740,245,129) at January 31, 2000.
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Government Obligations Tax-Managed Fund
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
GOVERNMENT AGENCY
OBLIGATIONS-101.3%
$ 69,250,000 Federal Farm Credit Bank,
5.000% - 6.350%, 3/1/2000 -
2/1/2001 $ 69,208,120
231,875,000 1 Federal Farm Credit Bank,
Discount Notes, 5.430% -
5.940%,
2/2/2000 - 1/23/2001 230,633,030
93,000,000 2 Federal Farm Credit Bank,
Floating Rate Notes,
5.643% - 5.653%, 2/1/2000 92,983,293
197,930,000 Federal Home Loan Bank,
4.790% - 6.372%, 2/4/2000 -
2/7/2001 197,845,576
1,412,120,000 1 Federal Home Loan Bank,
Discount Notes, 5.430% -
5.830%,
2/1/2000 - 3/29/2000 1,407,142,901
287,500,000 2 Federal Home Loan Bank,
Floating Rate Notes,
5.550% - 5.839%,
2/1/2000 - 2/22/2000 287,423,066
27,000,000 Student Loan Marketing
Association, 4.930% -
6.045%, 2/8/2000 -
11/3/2000 26,995,996
88,922,000 1 Student Loan Marketing
Association, Discount
Notes, 5.470% - 5.590%,
2/18/2000 - 3/22/2000 88,336,574
171,000,000 2 Student Loan Marketing
Association, Floating Rate
Notes, 5.720% -
6.249%, 2/1/2000 170,923,471
102,100,000 2 Student Loan Marketing
Association, Master Note,
5.849%, 2/1/2000 102,100,000
158,000,000 1 Tennessee Valley Authority
Discount Notes, 5.470% -
5.590%,
2/9/2000 - 3/6/2000 157,531,355
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 2,831,123,382
</TABLE>
1 The issue shows the discount rate at time of purchase.
2 Current rate and next reset date shown.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,793,862,089) at January 31, 2000.
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Municipal Obligations Fund
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
99.7% 1
ALABAMA-1.3%
$ 5,000,000 Hoover, AL Board of
Education, Series 1999 C,
3.80% BANs, 8/1/2000 $ 5,000,000
3,000,000 Tuscaloosa County, AL IDA,
Series 1995 A, Weekly VRDNs
(Tuscaloosa Steel
Corp.)/(Bayerische
Landesbank Girozentrale
LOC) 3,000,000
TOTAL 8,000,000
ARIZONA-0.7%
2,250,000 Pima County, AZ IDA, SFM,
Roaring Fork Series 1999-
6, Weekly VRDNs
(GNMA COL)/(Bank of New
York, New York LIQ) 2,250,000
1,800,000 Yuma County, AZ Airport
Authority, Inc., Series
1997 A, Weekly VRDNs (Bank
One, Arizona N.A. LOC) 1,800,000
TOTAL 4,050,000
ARKANSAS-2.4%
1,000,000 Arkadelphia, AR IDRBs,
Series 1996, Weekly VRDNs
(Siplast, Inc.)/(Den
Danske Bank A/S LOC) 1,000,000
4,000,000 Arkansas Development
Finance Authority, Series
1995, Weekly VRDNs (Paco
Steel & Engineering
Corporation
Project)/(Union Bank of
California LOC) 4,000,000
1,800,000 Hope, AR Solid Waste
Disposal Revenue Bonds,
Series 1994, 4.25% CP
(Temple-Inland Forest
Products Corp.)/(Temple-
Inland, Inc. GTD),
Mandatory Tender 2/1/2000 1,800,000
7,400,000 Siloam Springs, AR IDRB,
Series 1994, Weekly VRDNs
(La-Z Boy Chair Co.)/(Bank
One, Michigan LOC) 7,400,000
TOTAL 14,200,000
COLORADO-1.5%
4,000,000 Arapahoe County, CO HFA,
4.20% TOBs (Reserve at
South Creek)/(FGIC INS),
Mandatory Tender 2/1/2000 4,000,000
4,955,000 2 Denver, CO City & County
Airport Authority, CDC
Class A Certificates,
Series 1997 K, 3.45% TOBs
(MBIA INS)/(CDC Municipal
Products, Inc. LIQ),
Optional Tender 5/11/2000 4,955,000
TOTAL 8,955,000
DISTRICT OF COLUMBIA-0.8%
5,000,000 District of Columbia HFA,
Series 1999 B, 3.30% BANs
(CDC Municipal
Products, Inc.), 6/15/2000 5,000,000
FLORIDA-1.4%
2,995,000 Hillsborough County, FL
HFA, PT-259, Weekly VRDNs
(GNMA COL)/(Credit Suisse
First Boston LIQ) 2,995,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
FLORIDA-CONTINUED
$ 2,600,000 Miami-Dade County, FL IDA,
Series 1999 A, Weekly VRDNs
(Airis Miami LLC)/(AMBAC
INS)/(Bayerische
Landesbank Girozentrale
LIQ) $ 2,600,000
3,000,000 Pinellas County, FL HFA,
Daily VRDNs (Chase
Manhattan Bank N.A., New
York LOC) 3,000,000
TOTAL 8,595,000
GEORGIA-1.0%
6,000,000 Savannah, GA EDA, Series
1995 A, Weekly VRDNs (Home
Depot, Inc.) 6,000,000
HAWAII-1.8%
11,000,000 Honolulu, HI City & County
Multifamily, Series 1999,
Block J Project, 5.015%
TOBs (Bayerische
Landesbank Girozentrale),
Mandatory Tender 12/1/2000 11,000,000
IDAHO-0.9%
5,401,000 2 Idaho Housing Agency, PA-
115, 3.70% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
2/17/2000 5,401,000
ILLINOIS-7.8%
10,500,000 Chicago, IL, Chicago
Midway Airport Special
Facility Revenue Bonds,
Series 1998, 3.95% TOBs
(Signature Flight Support
Corp.)/(Bayerische
Landesbank Girozentrale
LOC), Optional Tender
6/1/2000 10,500,000
3,000,000 Chicago, IL, Gas Supply
Revenue Bonds, Series 1993
B, 4.05% TOBs (Peoples Gas
Light & Coke Co.), Optional
Tender 12/1/2000 3,000,000
3,100,000 Chicago, IL Series 1997,
Weekly VRDNs (Trendler
Components,
Inc.)/(American National
Bank & Trust Co., Chicago
LOC) 3,100,000
3,960,000 2 Chicago, IL SFM, PT-290,
3.90% TOBs (GNMA
COL)/(Landesbank Hessen-
Thueringen, Frankfurt
LIQ), Optional Tender
10/5/2000 3,960,000
1,200,000 Galva, IL Series 1999,
Weekly VRDNs (John H. Best
& Sons, Inc.)/(Norwest
Bank Minnesota, N.A. LOC) 1,200,000
6,000,000 Illinois Development
Finance Authority, Series
1997, Weekly VRDNs (Toyal
America, Inc.)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 6,000,000
2,100,000 Illinois Development
Finance Authority, EDRB,
Series 1995, Weekly VRDNs
(Evapco, Inc.
Project)/(Bank of America,
N.A. LOC) 2,100,000
3,200,000 Illinois Development
Finance Authority, IDRB,
Series 1995, Weekly VRDNs
(Dickson Weatherproof Nail
Co.)/(Bank of America,
N.A. LOC) 3,200,000
7,615,000 2 Illinois Housing
Development Authority, PT-
7, 3.375% TOBs (AMBAC
INS)/(Commerzbank AG,
Frankfurt LIQ), Optional
Tender 5/11/2000 7,615,000
1,620,000 Martinsville, IL IDRB,
Series 1995, Weekly VRDNs
(PAP-R Products Co.
Project)/(Bank One,
Illinois, N.A. LOC) 1,620,000
2,415,000 Peoria, IL Series 1995,
Weekly VRDNs (Praise and
Leadership Elementary
School)/(Bank One,
Illinois, N.A. LOC) 2,415,000
2,230,000 Rockford, IL EDRB, 4.20%
TOBs (Independence Village
of Rockford)/(Paribas,
Paris LOC), Optional
Tender 12/1/2000 2,230,000
TOTAL 46,940,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
INDIANA-4.2%
$ 2,000,000 Clarksville, IN Series
1997, Weekly VRDNs (Metal
Sales Manufacturing
Corp.)/(Firstar Bank,
N.A., Cincinnati LOC) $ 2,000,000
3,435,000 Elkhart County, IN Series
1997, Weekly VRDNs (Hart
Housing Group,
Inc.)/(KeyBank, N.A. LOC) 3,435,000
1,500,000 Huntington, IN EDRB,
Series 1999, Weekly VRDNs
(DK Enterprises
LLC)/(Norwest Bank
Minnesota, N.A. LOC) 1,500,000
3,400,000 Indianapolis, IN EDRB,
Series 1999, Weekly VRDNs
(Chip Ganassi Racing
Teams)/(PNC Bank, Delaware
LOC) 3,400,000
2,155,000 Kendallville, IN IDRB,
Series 1995, Weekly VRDNs
(Rivnut Real Estate Ltd.
Project)/(National City
Bank, Ohio LOC) 2,155,000
1,385,000 Richmond, IN EDRB, Series
1996, Weekly VRDNs
(Holland Colors Americas,
Inc. Project)/(Bank One,
Indiana, N.A. LOC) 1,385,000
4,000,000 Rushville, IN Series 1996,
Weekly VRDNs (Fujitsu Ten
Corp. of America)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 4,000,000
4,000,000 Westfield, IN EDRB, Series
1998, Weekly VRDNs
(Standard Locknut,
Inc.)/(Bank One, Indiana,
N.A. LOC) 4,000,000
3,200,000 Whitley County, IN Series
1999, Weekly VRDNs
(Undersea Sensor Systems,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 3,200,000
TOTAL 25,075,000
IOWA-0.3%
2,000,000 Iowa Falls, IA Series 1998,
Weekly VRDNs (Heartland
Pork Enterprises,
Inc.)/(Bank of Nova
Scotia, Toronto LOC) 2,000,000
KANSAS-0.3%
1,900,000 Olathe, KS Industrial
Revenue Bonds, Series
1995, Weekly VRDNs (Garmin
International, Inc.
Project)/(Bank of America,
N.A. LOC) 1,900,000
KENTUCKY-1.0%
1,730,000 Jefferson County, KY
Industrial Building
Revenue Bonds, Series
1995, Weekly VRDNs (Derby
Industries, Inc.)/(Bank
One, Kentucky LOC) 1,730,000
4,110,000 Paris, KY Weekly VRDNs
(Monessen Holdings
LLC)/(Bank One, Kentucky
LOC) 4,110,000
TOTAL 5,840,000
LOUISIANA-1.7%
5,000,000 Lake Charles, LA Harbor &
Terminal District, Revenue
Bonds, Series 1995 A,
Weekly VRDNs (Polycom-
Huntsman, Inc.)/(National
City, Pennsylvania LOC) 5,000,000
3,400,000 Louisiana HFA, Trust
Receipts, FR/RI-52, Series
1999, Weekly VRDNs
(GNMA COL)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ) 3,400,000
1,600,000 Ouachita Parish, LA IDB,
Series 1998, Weekly VRDNs
(Dixie Carbonic,
Inc.)/(Bank One, Illinois,
N.A. LOC) 1,600,000
TOTAL 10,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MAINE-0.3%
$ 1,840,000 Trenton, ME Series 1998,
Weekly VRDNs (Hinckley
Co.)/(KeyBank, N.A. LOC) $ 1,840,000
MARYLAND-4.7%
2,468,000 Frederick County, MD
Series 1998 A, Weekly VRDNs
(Thogar LLC)/(Allfirst
LOC) 2,468,000
6,600,000 Harford County, MD Series
1989, Weekly VRDNs
(Harford Commons
Associates
Facility)/(Allfirst LOC) 6,600,000
1,386,000 Harford County, MD
Variable Rate Demand/Fixed
Rate Refunding Bond (1989
Issue) Weekly VRDNs
(Harford Commons
Associates
Facility)/(Allfirst LOC) 1,386,000
1,000,000 Maryland EDC, Tax Exempt
Adjustable Mode IDRBs,
Series 1998, Weekly VRDNs
(Morrison Health Care,
Inc.)/(Wachovia Bank of
NC, N.A. LOC) 1,000,000
4,375,000 Maryland Industrial
Development Financing
Authority, Special
Facility Airport Revenue
Bonds, Series 1999, 3.95%
TOBs (Signature Flight
Support Corp.)/(Bayerische
Landesbank Girozentrale
LOC), Optional Tender
6/1/2000 4,375,000
2,560,000 Maryland State Community
Development
Administration, Series
1990 A, Weekly VRDNs
(College
Estates)/(Allfirst LOC) 2,560,000
3,000,000 Maryland State Community
Development
Administration, Series
1990 B, Weekly VRDNs
(Cherry Hill Apartment
Ltd.)/(Bank of America,
N.A. LOC) 3,000,000
3,000,000 Maryland State Energy
Financing Administration,
IDRB, Series 1988, Weekly
VRDNs (Morningstar Foods,
Inc.)/(First Union
National Bank, Charlotte,
N.C. LOC) 3,000,000
4,000,000 Wicomico County, MD EDRB,
Series 1994, Weekly VRDNs
(Field Container Co. LP)/(
Northern Trust Co.,
Chicago, IL LOC) 4,000,000
TOTAL 28,389,000
MASSACHUSETTS-0.5%
3,000,000 Massachusetts IFA, IDRB,
Series 1995, Weekly VRDNs
(Dunsirn Industries, Inc.
Project)/(Firstar Bank,
Milwaukee LOC) 3,000,000
MINNESOTA-5.9%
1,400,000 Blaine, MN Series 1997,
Weekly VRDNs (Plastic
Enterprises,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 1,400,000
3,600,000 Brooklyn Center, MN
Shingle Creek Tower, Series 1999, 4.93% TOBs (Bank of America,
N.A.),
Mandatory Tender 4/1/2000 3,600,000
4,000,000 Coon Rapids, MN Series
1999, Weekly VRDNs
(Assurance Mfg. Co.,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 4,000,000
10,195,000 2 Dakota County & Washington
County MN, Housing &
Redevelopment Authority,
MERLOTS, Series J, 4.00%
TOBs (United States
Treasury COL)/(First Union
National Bank, Charlotte,
N.C. LIQ), Optional Tender
2/1/2000 10,195,000
5,000,000 2 Dakota County, Washington
County & Anoka City, MN
Housing & Redevelopment
Authority, MERLOTS, Series
H, 4.00% TOBs (United
States Treasury
COL)/(First Union National
Bank, Charlotte, N.C.
LIQ), Optional Tender
2/1/2000 5,000,000
2,600,000 Minneapolis, MN IDA,
Series 1999, Weekly VRDNs
(Viking Materials,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 2,600,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MINNESOTA-CONTINUED
$ 2,755,000 Savage, MN Series 1998,
Weekly VRDNs (Fabcon,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) $ 2,755,000
1,870,000 Springfield, MN Series
1998, Weekly VRDNs (Ochs
Brick Co.)/(Norwest Bank
Minnesota, N.A. LOC) 1,870,000
2,250,000 White Bear Lake, MN Series
1999, Weekly VRDNs (Taylor
Corp.)/(Norwest Bank
Minnesota, N.A. LOC) 2,250,000
2,000,000 White Bear Lake, MN Century
Townhomes, Series 1997,
4.5475% TOBs (Westdeutsche
Landesbank Girozentrale),
Optional Tender 5/1/2000 2,000,000
TOTAL 35,670,000
MISSISSIPPI-7.3%
1,168,000 Greenville, MS IDA, Weekly
VRDNs (Mebane Packaging
Corp.)/(First Union
National Bank, Charlotte,
N.C. LOC) 1,168,000
6,455,000 Mississippi Business
Finance Corp., Series
1995, Weekly VRDNs
(Mississippi Baking
Company LLC
Project)/(Allfirst LOC) 6,455,000
5,400,000 Mississippi Business
Finance Corp., Series
1995, Weekly VRDNs
(Schuller International,
Inc.)/(Bank of New York,
New York LOC) 5,400,000
7,500,000 Mississippi Home Corp.,
Multifamily Housing
Adjustable/Fixed Rate
Revenue Bonds, Series
1997, Weekly VRDNs
(Windsor Park
Apartments)/(SouthTrust
Bank of Alabama,
Birmingham LOC) 7,500,000
9,805,000 2 Mississippi Home Corp.,
PT-218B, 3.65% TOBs (GNMA
COL)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
7/6/2000 9,805,000
9,790,000 Mississippi Regional
Housing Authority No. II,
Series 1998, 4.00% TOBs
(Bradford Park
Apartments)/(Amsouth Bank
N.A., Birmingham LOC),
Mandatory Tender 10/1/2000 9,790,000
4,000,000 Warren County, MS IDA,
Weekly VRDNs (Vesper Corp.)/(PNC Bank, N.A.
LOC) 4,000,000
TOTAL 44,118,000
MISSOURI-1.6%
1,750,000 Kansas City, MO IDA, Series
1999, Weekly VRDNs (B&B
Investments LLC)/(Norwest
Bank Minnesota, N.A. LOC) 1,750,000
1,600,000 Springfield, MO IDA,
Series 1999, Weekly VRDNs
(Dabryan Coach Builders,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 1,600,000
1,000,000 St. Louis, MO IDA, Series
1997, Weekly VRDNs (Cee Kay
Supply)/(Commerce Bank,
Kansas City, N.A. LOC) 1,000,000
5,000,000 St. Louis, MO IDA, Homer G.
Phillips Dignity House,
Series 1999, 5.10% TOBs
(Bayerische Landesbank
Girozentrale) 12/1/2000 5,000,000
TOTAL 9,350,000
MULTI STATE-11.2%
18,100,000 Charter Mac Floater
Certificates Trust I,
(Third Tranche) Weekly
VRDNs (MBIA
INS)/(Bayerische
Landesbank Girozentrale,
Commerzbank AG, Frankfurt
and Credit Communal de
Belgique, Brussels LIQs) 18,100,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MULTI STATE-CONTINUED
$ 20,000,000 Charter Mac Floater
Certificates Trust I,
(Fifth Tranche) Weekly
VRDNs
(MBIA INS)/(Bayerische
Landesbank Girozentrale,
Commerzbank AG, Frankfurt
and Credit Communal de
Belgique, Brussels LIQs) $ 20,000,000
29,338,000 Clipper Tax-Exempt Trust
(AMT MultiState), Series A, Weekly VRDNs (State Street Bank and
Trust Co.
LIQ) 29,338,000
TOTAL 67,438,000
NEBRASKA-1.2%
6,995,000 Nebraska Investment
Finance Authority,
MERLOTS, Series 1999 A,
Weekly VRDNs (GNMA
COL)/(First Union National
Bank, Charlotte, N.C. LIQ) 6,995,000
NEVADA-0.2%
550,000 Nevada State Department of
Community & Industrial
Development, Weekly VRDNs
(Kinplex Co.
Project)/(Credit
Commercial de France,
Paris LOC) 550,000
855,000 Sparks, NV IDRBs, Series
1996, Weekly VRDNs (The
Antioch Publishing Co.
Project)/(National City
Bank, Ohio LOC) 855,000
TOTAL 1,405,000
NEW HAMPSHIRE-0.6%
3,685,000 New Hampshire Business
Finance Authority, IDRB,
Series A, Weekly VRDNs
(Upper Valley
Press)/(KeyBank, N.A. LOC) 3,685,000
NEW JERSEY-0.8%
4,995,000 2 New Jersey Housing &
Mortgage Financing
Authority, PT-285, 3.80%
TOBs (MBIA
INS)/(Landesbank Hessen-
Thueringen, Frankfurt
LIQ), Optional Tender
8/10/2000 4,995,000
NEW MEXICO-1.6%
4,755,000 Albuquerque, NM, Series
1996, Weekly VRDNs (Rose's
Southwest Papers,
Inc.)/(Norwest Bank
Minnesota, N.A. LOC) 4,755,000
5,000,000 Los Lunas Village, NM,
Series 1998, Weekly VRDNs
(Wall Colmonoy
Corp.)/(Michigan National
Bank, Farmington Hills
LOC) 5,000,000
TOTAL 9,755,000
NEW YORK-1.8%
3,800,000 Brookhaven-Comsewogue
Union Free School
District, NY, 4.25% TANs,
6/30/2000 3,806,820
7,000,000 New York City, NY
Transitional Finance
Authority, 1999 Trust
Receipts, Weekly VRDNs
(Bank of New York, New York
LIQ) 7,000,001
TOTAL 10,806,821
OHIO-7.6%
34,100,000 Clipper Tax-Exempt Certificates Trust (Ohio AMT), Series
1999-4, Weekly VRDNs (Ohio HFA)/(GNMA COL)/(State Street Bank
and Trust Co.
LIQ) 34,100,000
3,045,000 Mentor, OH Adjustable Rate
IDRBs, Series 1997, Weekly
VRDNs (Risch
Investments/Roll Kraft,
Inc.)/(KeyBank, N.A. LOC) 3,045,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
OHIO-CONTINUED
$ 980,000 Stark County, OH IDR Weekly
VRDNs (Shearer's Foods,
Inc.)/(Bank One, N.A.
(Ohio) LOC) $ 980,000
4,000,000 Toledo-Lucas County, OH
Port Authority, Airport
Development Revenue Bonds,
Series 1996-1, Weekly
VRDNs (Burlington Air
Express, Inc.)/(ABN AMRO
Bank N.V., Amsterdam LOC) 4,000,000
3,720,000 Youngstown, OH Adjustable
Rate Demand IDRBs, Series
1996 A, Weekly VRDNs
(Cantar/Polyair
Corp./Performa
Corp.)/(HSBC Bank USA LOC) 3,720,000
TOTAL 45,845,000
OKLAHOMA-0.6%
3,610,000 Tulsa County, OK HFA, CDC
Municipal Products, Inc.,
Class A Certificates,
Series 1996 E, Weekly
VRDNs (GNMA COL)/(CDC
Municipal Products, Inc.
LIQ) 3,610,000
OREGON-0.1%
495,000 Oregon State, EDRBs,
Series 1988 B, Weekly VRDNs
(Domaine Drouhin
Oregon, Inc.)/(Wells Fargo
Bank, N.A. LOC) 495,000
PENNSYLVANIA-2.0%
5,000,000 Clinton County, PA IDA,
Solid Waste Disposal Revenue Bonds, Series 1992 A, 4.70% TOBs
(International Paper Co.),
Optional Tender 1/15/2001 5,000,000
6,745,000 2 Philadelphia, PA IDA,
Variable Rate
Certificates, Series 1998
P-1, 3.65% TOBs
(Philadelphia Airport
System)/(FGIC INS)/(Bank
of America, N.A. LIQ),
Optional Tender 7/20/2000 6,745,000
TOTAL 11,745,000
SOUTH CAROLINA-3.3%
5,200,000 Berkeley County, SC IDB,
Series 1998, Weekly VRDNs
(Nucor Corp.) 5,200,000
1,865,000 Berkeley County, SC IDB,
Series 1989, Weekly VRDNs
(W.W. Williams Co.
Project)/(Bank One, N.A.
Ohio, LOC) 1,865,000
3,690,000 South Carolina Job
Development Authority
Weekly VRDNs (Boozer
Lumber Co.)/(SouthTrust
Bank of Alabama,
Birmingham LOC) 3,690,000
250,000 South Carolina Job
Development Authority,
Series 1988 B, Weekly VRDNs
(Seacord Corp.)/(Credit
Commercial de France,
Paris LOC) 250,000
450,000 South Carolina Job
Development Authority,
Series 1990, Weekly VRDNs
(NMFO
Associates)/(Wachovia Bank
of NC, N.A. LOC) 450,000
850,000 South Carolina Job
Development Authority,
Series 1990, Weekly VRDNs
(Old Claussen's
Bakery)/(Wachovia Bank of
NC, N.A. LOC) 850,000
500,000 South Carolina Job
Development Authority,
Series 1990, Weekly VRDNs
(Rice Street
Association)/(Wachovia
Bank of NC, N.A. LOC) 500,000
3,700,000 South Carolina Job
Development Authority,
Series 1996, Weekly VRDNs
(PVC Container Corp.
Project)/(Fleet Bank N.A.
LOC) 3,700,000
660,000 South Carolina Job
Development Authority,
Series B, Weekly VRDNs
(Osmose Wood
Preserving)/(Credit
Commercial de France,
Paris LOC) 660,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
SOUTH CAROLINA-CONTINUED
$ 2,620,000 York County, SC IDA, IDRBs,
Series 1989, Weekly VRDNs
(Sediver, Inc.)/(Banque
Nationale de Paris LOC) $ 2,620,000
TOTAL 19,785,000
SOUTH DAKOTA-0.8%
4,230,000 South Dakota Housing
Development Authority,
Series 1999 I, 3.85% BANs,
9/28/2000 4,230,000
515,000 South Dakota Housing
Development Authority,
Homeownership Mortgage
Bonds, 1997 Series E,
Weekly VRDNs 515,000
TOTAL 4,745,000
TENNESSEE-4.1%
4,000,000 Carter County, TN IDB,
Series 1983, Monthly VRDNs
(Inland Container Corp.)/
(Temple-Inland, Inc. GTD) 4,000,000
1,500,000 Cheatham County, TN IDB,
Series 1997 B, Weekly VRDNs
(Triton Boat Co.)/(First
American National Bank,
Nashville, TN LOC) 1,500,000
2,000,000 Covington, TN IDB, Series
1992, Weekly VRDNs
(Wallace Computer
Services, Inc.)/(Wachovia
Bank of NC, N.A. LOC) 2,000,000
1,500,000 Hamilton County, TN IDB,
Series 1987, Weekly VRDNs
(Seaboard Farms
Project)/(SunTrust Bank,
Atlanta LOC) 1,500,000
1,510,000 Hawkins County, TN IDB,
Series 1995, Weekly VRDNs
(Sekisui Ta Industries,
Inc.)/(Bank of Tokyo-
Mitsubishi Ltd. LOC) 1,510,000
2,000,000 Jackson, TN IDB, Solid
Waste Facility Bonds,
Series 1995, Weekly VRDNs
(Florida Steel
Corp.)/(Bank of America,
N.A. LOC) 2,000,000
500,000 Knox County, TN IDB, Series
1996, Weekly VRDNs (Health
Ventures, Inc.)/(SunTrust
Bank, Nashville LOC) 500,000
4,000,000 Morristown, TN IDB, Series
1999, Weekly VRDNs (Tuff
Torq Corp.)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 4,000,000
3,000,000 Sevier County, TN Public
Building Authority, Local
Government Improvement
Bonds, Series II-G-2,
Weekly VRDNs (Knoxville,
TN)/(AMBAC INS)/(KBC Bank
N.V. LIQ) 3,000,000
800,000 South Pittsburg, TN IDB,
Series 1996, Weekly VRDNs
(Lodge Manufacturing Co.)/
(SunTrust Bank, Nashville
LOC) 800,000
3,995,000 Tennessee Housing
Development Agency, Series
1997 K, Weekly VRDNs (Bank
of America, N.A. LIQ) 3,995,000
TOTAL 24,805,000
TEXAS-9.7%
4,000,000 Angelina and Neches River
Authority, Texas, Solid
Waste Disposal Revenue
Bonds, Series 1993, 4.60%
CP (Temple-Eastex,
Inc.)/(Temple-Inland, Inc.
GTD), Mandatory Tender
2/17/2000 4,000,000
2,500,000 Angelina and Neches River
Authority, Texas, Solid
Waste Disposal Revenue
Bonds, Series 1993, 4.60%
CP (Temple-Eastex,
Inc.)/(Temple-Inland, Inc.
GTD), Mandatory Tender
2/18/2000 2,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
TEXAS-CONTINUED
$ 1,600,000 Angelina and Neches River
Authority, Texas, Waste
Disposal Revenue Bonds,
Series 1998, 4.60% CP
(Temple-Inland Forest
Products Corp.)/(Temple-
Inland, Inc. GTD),
Mandatory Tender 2/17/2000 $ 1,600,000
5,755,000 Brazos River Authority,
TX, Series 1999 B, Weekly
VRDNs (TXU Electric
Co.)/(Morgan Guaranty
Trust Co., New York LOC) 5,755,000
5,420,000 2 Dallas-Fort Worth, TX
Regional Airport, Custody
Receipts, 4.05% TOBs
(FGIC INS)/(Citibank N.A,
New York LIQ), Optional
Tender 5/1/2000 5,420,000
7,100,000 Gulf Coast, TX Waste
Disposal Authority, Daily
VRDNs (Amoco Corp.) 7,100,000
3,500,000 Harris County, TX HFDC,
Series 1994, Daily VRDNs
(Methodist Hospital,
Harris County, TX) 3,500,000
3,500,000 Harris County, TX HFDC,
Series 1997 A, Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Bank of
America, N.A., Morgan
Guaranty Trust Co., New
York and Toronto Dominion
Bank LIQs) 3,500,000
5,000,000 Harris County, TX HFDC,
Hospital Revenue Bonds, Series 1997 B, 3.70% CP (Memorial
Hospital System)/(MBIA INS)/(Chase Bank of Texas LIQ),
Mandatory Tender 3/1/2000 5,000,000
2,200,000 Harris County, TX HFDC,
Unit Priced Demand
Adjustable Revenue Bonds,
Series 1997 B, Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Bank of
America, N.A., Morgan
Guaranty Trust Co., New
York and Toronto Dominion
Bank LIQs) 2,200,000
3,210,000 Houston, TX Airport
System, Series 1998 A, PT- 1102, Weekly VRDNs (FGIC
INS)/(Merrill Lynch Capital Services, Inc.
LIQ) 3,210,000
2,100,000 Lubbock, TX IDC, Daily
VRDNs (McLane Co.,
Inc.)/(Bank of America,
N.A. LOC) 2,100,000
8,000,000 McAllen, TX IDA, Series
1998, Weekly VRDNs (NiTek
McAllen LLC)/(Bank of
Tokyo-Mitsubishi Ltd. LOC) 8,000,000
4,545,000 Saginaw, TX IDA, Series
1998, Weekly VRDNs (Glad
Investing Partners
Ltd.)/(Bank One, Texas
N.A. LOC) 4,545,000
TOTAL 58,430,000
VIRGINIA-3.5%
5,000,000 Campbell County, VA IDA,
Solid Waste Disposal
Facilities Revenue ACES,
Weekly VRDNs (Georgia-
Pacific Corp.)/(SunTrust
Bank, Atlanta LOC) 5,000,000
10,000,000 2 Fairfax County, VA EDA,
Trust Receipt, FR/RI-A15, Series 1999, 3.55% TOBs (AMBAC
INS)/(National Westminster Bank PLC, London LIQ), Optional
Tender 2/1/2000 10,000,000
6,000,000 Halifax, VA IDA, MMMs, PCR,
3.85% CP (Virginia
Electric Power Co.),
Mandatory Tender 3/10/2000 6,000,000
TOTAL 21,000,000
WASHINGTON-1.2%
4,000,000 2 Washington State, PT-1187,
3.95% TOBs (Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
10/19/2000 4,000,000
3,000,000 Yakima County, WA Public
Corp., Series 1999, Weekly
VRDNs (John I. Haas,
Inc.)/(Bayerische
Hypotheken-und Vereinsbank
AG and Deutsche Bank AG
LOCs) 3,000,000
TOTAL 7,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
WEST VIRGINIA-0.4%
$ 2,335,000 Berkeley County, WV County
Commission, IDB, Series
1994, Weekly VRDNs
(Brentwood Industries,
Inc. Project)/(First Union
National Bank, Charlotte,
NC LOC) $ 2,335,000
WISCONSIN-1.6%
2,000,000 Milwaukee, WI Series 1997,
3.95% TOBs (Signature
Flight Support
Corp.)/(Bayerische
Landesbank Girozentrale
LOC), Optional Tender
6/1/2000 2,000,000
1,000,000 New Berlin, WI Series 1997
A, Weekly VRDNs (Sunraider
LLC/New Berlin Plastics,
Inc.)/(Bank One,
Wisconsin, N.A. LOC) 1,000,000
6,905,000 2 Wisconsin Housing & EDA,
PT-90, 3.175% TOBs (Banque
Nationale de Paris LIQ),
Optional Tender 2/17/2000 6,905,000
TOTAL 9,905,000
TOTAL INVESTMENTS
(AMORTIZED COST) 3 $ 600,102,821
</TABLE>
Securities that are subject to alternative minimum tax represent 91.6% of the
portfolio as calculated based upon total portfolio market value.
1 The fund may only invest in securities rated in one of the two highest
short-term rating categories by nationally recognized statistical rating
organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's
two highest rating categories are determined without regard for sub-categories
and gradations. For example, securities rated SP-1+, SP-1 or SP-2 by Standard &
Poor's, MIG-1 or MIG-2 by Moody's Investors Service, or F-1+, F-1 or F-2 by
Fitch IBCA, Inc., are all considered rated in one of the two highest short-term
rating categories. Securities rated in the highest short-term rating category
(and unrated securities of comparable quality) are identified as First Tier
securities. Securities rated in the second highest short-term rating category
(and unrated securities of comparable quality) are identified as Second Tier
securities. The fund follows applicable regulations in determining whether a
security is rated and whether a security rated by multiple NRSROs in different
rating categories should be identified as a First or Second Tier security. At
January 31, 2000, the portfolio securities were rated as follows:
Tier Rating Based on Total Market Value (Unaudited)
<TABLE>
<CAPTION>
FIRST TIER SECOND TIER
<S> <C>
96.85% 3.15%
</TABLE>
2 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At January 31, 2000 these
securities amounted to $84,996,000 which represents 14.1% of net assets.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($602,128,089) at January 31, 2000.
The following acronyms are used throughout this portfolio:
ACES -Adjustable Convertible Extendable Securities AMBAC -American Municipal
Bond Assurance Corporation AMT -Alternative Minimum Tax BANs -Bond Anticipation
Notes COL -Collateralized CP -Commercial Paper EDA -Economic Development
Authority EDC -Economic Development Corporation EDRB -Economic Development
Revenue Bonds FGIC -Financial Guaranty Insurance Company GNMA -Government
National Mortgage Association GTD -Guaranteed HFA -Housing Finance Authority
HFDC -Health Facility Development Corporation IDA -Industrial Development
Authority IDB -Industrial Development Bond IDC -Industrial Development
Corporation IDRB -Industrial Development Revenue Bond IFA -Industrial Finance
Authority INS -Insured LIQ -Liquidity Agreement LOC -Letter of Credit MBIA
- -Municipal Bond Investors Assurance MERLOTS -Municipal Exempt Receipts -
Liquidity Optional Tender Series MMMs -Money Market Municipals PCR -Pollution
Control Revenue SFM -Single Family Mortgages TANs -Tax Anticipation Notes TOBs
- -Tender Option Bonds VRDNs -Variable Rate Demand Notes
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Prime Cash Obligations Fund
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT TERM NOTES-10.6%
BANKING-1.0% $ 30,000,000 Bank One, Illinois, N.A.,
6.025%, - 6.07%,
10/10/2000 - 11/13/2000 $ 29,985,690
16,000,000 Westpac Banking Corp.
Ltd., Sydney, 6.22%,
11/30/2000 15,989,736
TOTAL 45,975,426
BROKERAGE-2.9%
138,000,000 Goldman Sachs Group, Inc.,
5.831% - 6.010%, 3/24/2000
- 4/26/2000 138,000,000
FINANCE - AUTOMOTIVE-0.2%
3,536,571 Honda Auto Lease Trust
1999-A, Class A-1, 5.445%,
8/15/2000 3,536,571
7,862,118 Toyota Auto Receivables
1999-A Owner Trust, Class
A-1, 5.365%, 8/11/2000 7,862,118
TOTAL 11,398,689
FINANCE - COMMERCIAL-6.1%
153,500,000 Beta Finance, Inc., 5.10% -
5.52%, 2/16/2000 -
6/12/2000 153,499,051
136,000,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 6.00% -
6.78%, 8/11/2000 -
2/28/2001 136,000,000
TOTAL 289,499,051
FINANCE - EQUIPMENT-0.4%
4,402,965 Caterpillar Financial
Asset Trust 1999-A, Class
A-1, 5.365%, 7/25/2000 4,402,965
12,416,035 Copelco Capital Funding
LLC 1999-B, Class A-1,
5.937%, 10/18/2000 12,416,035
176,431 Navistar Financial 1999-A
Owner Trust, Class A-1,
5.003%, 6/15/2000 176,431
TOTAL 16,995,431
INSURANCE-0.0%
12,000 Americredit Automobile
Receivables Trust 2000-A,
Class A-1, 6.040%,
2/5/2001 12,000
TOTAL SHORT TERM NOTES 501,880,597
CERTIFICATES OF DEPOSIT-
4.3%
BANKING-4.3%
27,000,000 Bank of Montreal, 5.20%,
5/12/2000 26,996,404
40,000,000 Bank of Scotland,
Edinburgh, 5.95%,
4/12/2000 39,999,924
26,000,000 Bayerische Landesbank
Girozentrale, 5.115%,
3/21/2000 25,997,103
39,000,000 Canadian Imperial Bank of
Commerce, 4.987% - 5.16%,
2/7/2000 - 2/23/2000 38,999,432
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
CERTIFICATES OF DEPOSIT-
continued
BANKING-CONTINUED
$ 25,000,000 Commerzbank AG, Frankfurt,
5.16% - 5.24%, 4/7/2000 -
5/15/2000 $ 24,997,585
45,000,000 UBS AG, Stamford, 6.080% -
6.260%, 11/13/2000 -
12/11/2000 44,976,726
TOTAL CERTIFICATES OF
DEPOSIT 201,967,174
COMMERCIAL PAPER-46.0% 2
BANKING-25.6%
80,000,000 Abbey National N.A. Corp.,
(Guaranteed by Abbey
National Bank PLC,
London), 5.906% - 5.917%,
4/13/2000 - 4/25/2000 78,971,200
39,000,000 Asset Securitization
Cooperative Corp., 5.92%,
2/24/2000 38,856,729
50,000,000 Corporate Asset Funding
Co., Inc. (CAFCO), 5.808%,
3/22/2000 49,600,694
130,000,000 Cregem North America,
Inc., (Guaranteed by
Credit Communal de
Belgique, Brussels),
5.893% - 6.020%, 2/8/2000 -
4/17/2000 129,406,876
65,000,000 Den Danske Corp., Inc.,
(Guaranteed by Den Danske
Bank A/S), 5.936% - 6.069%,
4/25/2000 - 6/21/2000 63,814,472
30,000,000 Edison Asset
Securitization LLC,
5.984%, 4/25/2000 29,587,700
125,594,000 Falcon Asset
Securitization Corp.,
5.699% - 5.746%, 2/1/2000 -
2/17/2000 125,379,996
28,805,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
SA), 5.749% - 5.956%,
2/22/2000 - 4/24/2000 28,549,050
61,595,000 Greenwich Funding Corp.,
5.119% - 5.938%, 2/1/2000 -
4/11/2000 61,365,832
238,682,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.739% - 5.849%,
2/22/2000 - 3/6/2000 237,760,595
30,000,000 PREFCO-Preferred
Receivables Funding Co.,
5.789%, 3/7/2000 29,832,292
47,000,000 Park Avenue Receivables
Corp., 5.741%, 2/25/2000 46,821,400
75,000,000 Receivables Capital Corp.,
5.707% - 5.937%, 2/8/2000 -
2/9/2000 74,911,569
30,000,000 Svenska Handelsbanken,
Inc., (Guaranteed by
Svenska Handelsbanken,
Stockholm), 5.928%,
4/12/2000 29,654,467
117,398,000 Three Rivers Funding
Corp., 5.701% - 5.756%,
2/11/2000 - 2/22/2000 117,150,086
25,000,000 Westpac Capital Corp.,
(Guaranteed by Westpac
Banking Corp. Ltd.,
Sydney), 5.967%, 5/2/2000 24,633,472
50,000,000 Westpac Trust Securities
NZ Ltd., (Guaranteed by
Westpac Banking Corp.
Ltd., Sydney), 5.936%,
4/25/2000 49,317,500
TOTAL 1,215,613,930
BROKERAGE-1.9%
90,000,000 Morgan Stanley, Dean
Witter & Co., 5.927% -
5.942%, 4/17/2000 -
4/24/2000 88,832,778
CONSUMER PRODUCTS-2.3%
108,000,000 Diageo Capital PLC,
(Guaranteed by Diageo
PLC), 5.919% - 6.008%,
3/1/2000 - 4/11/2000 107,166,751
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMERCIAL PAPER-continued
2
FINANCE - AUTOMOTIVE-0.4%
$ 20,000,000 General Motors Acceptance
Corp., 5.459%, 3/6/2000 $ 19,900,833
FINANCE - COMMERCIAL-6.3%
65,000,000 CIT Group Holdings, Inc.,
5.811%, 2/1/2000 65,000,000
30,000,000 Eureka Securitization,
Inc., 5.701%, 2/14/2000 29,938,575
42,500,000 GE Capital International
Funding, Inc., (Guaranteed
by General Electric
Capital Corp.), 5.994% -
6.093%, 3/9/2000 -
4/11/2000 42,053,999
140,000,000 General Electric Capital
Corp., 5.917% - 6.032%,
2/25/2000 - 5/12/2000 138,259,428
25,000,000 Sigma Finance, Corp.,
(Guaranteed by Sigma
Finance Corp.), 5.717% -
5.959%, 2/4/2000 -
4/14/2000 24,816,829
TOTAL 300,068,831
FINANCE - RETAIL-0.3%
15,000,000 CommoLoCo, Inc,
(Guaranteed by American
General Finance Corp.),
6.104%, 3/9/2000 14,907,963
INSURANCE-9.2%
200,000,000 Aspen Funding Corp.,
(Insured by MBIA), 5.757%,
2/17/2000 199,490,667
54,300,000 CXC, Inc., 5.927% - 5.980%,
2/2/2000 - 4/10/2000 53,863,333
60,000,000 Marsh USA, Inc., 5.754% -
6.040%, 2/16/2000 -
7/28/2000 59,465,567
125,430,000 Sheffield Receivables
Corp., 5.758% - 6.023%,
2/11/2000 - 2/28/2000 125,026,814
TOTAL 437,846,381
TOTAL COMMERCIAL PAPER 2,184,337,467
LOAN PARTICIPATION-3.9%
ELECTRICAL EQUIPMENT-0.4%
16,700,000 Mt. Vernon Phenol Plant
Partnership, (Guaranteed
by General Electric Co.),
6.120%, 5/17/2000 16,700,000
FINANCE - AUTOMOTIVE-2.5%
120,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
5.620% - 6.863%, 2/3/2000 -
3/15/2000 120,000,000
FINANCE - EQUIPMENT-1.0%
50,000,000 Pitney Bowes Credit Corp.,
5.809%, 2/10/2000 49,927,750
TOTAL LOAN PARTICIPATION 186,627,750
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE OBLIGATIONS-
22.6% 3
BANKING-10.2%
$ 2,000,000 Albuquerque, NM, Series
1997 El Canto, Inc.,
(Norwest Bank Minnesota,
N.A. LOC), 6.290%,
2/3/2000 $ 2,000,000
46,000,000 Asset Securitization
Cooperative Corp., 5.831%
- 5.903%, 2/7/2000 -
2/14/2000 45,999,580
1,600,000 Beech Grove, IN, Series
1997, Poster Display Co.
Project, (Bank One,
Indiana, N.A. LOC),
5.940%, 2/3/2000 1,600,000
1,925,000 C. W. Caldwell, Inc.,
Sweetbriar Assisted Living
Facility, Project,
(Huntington National Bank,
Columbus, OH LOC), 5.89%,
2/3/2000 1,925,000
5,500,000 Capital One Funding Corp.,
Series 1993-A, (Bank One,
Ohio N.A. LOC),
5.940%, 2/3/2000 5,500,000
21,270,000 Capital One Funding Corp.,
Series 1999-A, (Bank One,
Kentucky LOC),
5.940%, 2/3/2000 21,270,000
2,845,000 Casna LP, Series 1997,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 2,845,000
9,965,000 Cedarville College OH,
Series 1998, (KeyBank,
N.A. LOC), 6.100%,
2/3/2000 9,965,000
4,515,000 Chartiers Valley
Industrial & Commercial
Development Authority,
Woodhaven Convalescent
Center, Series 1997-B,
(Bank One, Ohio, N.A. LOC),
5.980%, 2/3/2000 4,515,000
1,440,000 Children's Defense Fund,
(Allfirst LOC), 5.960%,
2/1/2000 1,440,000
5,715,000 Colonie, NY IDA,
Mechanical Technology,
Inc. Project, Series 1998
A, (KeyBank, N.A. LOC),
5.900%, 2/3/2000 5,715,000
56,000,000 Comerica Bank, 5.791% -
5.864%, 2/9/2000 -
2/25/2000 55,974,616
10,150,000 Cuyahoga County, OH,
Gateway Arena Project,
Series 1992-B, (Canadian
Imperial Bank of Commerce
LOC), 5.940%, 2/2/2000 10,150,000
9,450,000 Elsinore Properties, LP,
Series 1999, (Fifth Third
Bank, Cincinnati LOC),
5.830%, 2/3/2000 9,450,000
1,020,000 Flowform, Inc.,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 1,020,000
4,000,000 Frank Parsons Paper Co.,
Inc., Series 1999,
(Allfirst LOC), 5.871%,
2/4/2000 4,000,000
6,580,000 Franklin County, OH,
Edison Welding, Series
1995, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 6,580,000
11,730,000 Georgetown, KY Educational
Institution, Series 1997-
A, (Bank One, Kentucky
LOC), 5.940%, 2/3/2000 11,730,000
4,130,000 Georgia Ports Authority,
Colonel's Island Terminal
Project, Series 1996-A,
Revenue Bonds, (SunTrust
Bank, Atlanta LOC),
5.850%, 2/2/2000 4,130,000
1,380,000 Gerald T. Thom, Trustee
U.A.D., March 27, 1997,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 1,380,000
1,480,000 Gettysburg Area IDA,
Hanover Lantern, Inc.
Project, Series 1998-B,
(Allfirst LOC), 5.860%,
2/2/2000 1,480,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
BANKING-CONTINUED
$ 11,180,000 Healthcare Network
Properties LLC, Series A,
(National City Bank,
Michigan/Illinois LOC),
5.790%, 2/3/2000 $ 11,180,000
8,400,000 IT Spring Wire LLC, Series
1997, (Fifth Third Bank,
Cincinnati LOC),
5.820%, 2/3/2000 8,400,000
3,877,000 International Processing
Corp., (Bank One, Kentucky
LOC), 5.990%, 2/3/2000 3,877,000
2,000,000 Kit Carson County, CO,
Midwest Farms LLC Project,
(Norwest Bank Minnesota,
N.A. LOC), 5.950%,
2/2/2000 2,000,000
6,000,000 La Verne City, IDA, Mobile
Tool International, Inc.
Project, Series 1998-B,
(Fleet Bank N.A. LOC),
5.870%, 2/3/2000 6,000,000
54,724,185 Liquid Asset Backed
Securities Trust, Series
1997-1, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.793%,
2/15/2000 54,724,185
7,730,000 Lombard IL, Multifamily
Housing, MHRV, Series
1999, Clover Creek
Apartments (Bank One,
Arizona N.A. LOC), 5.98%,
2/3/2000 7,730,000
32,670,000 M/S Land, LLC, (Bank One,
Illinois, N.A. LOC),
5.99%, 2/3/2000 32,670,000
5,900,000 MMR Funding I, Series A,
(Bayerische Hypotheken-und
Vereinsbank AG LOC),
5.94%, 2/3/2000 5,900,000
4,375,000 Maryland EDC, Human Genome
Sciences, Series 1999A,
(Allfirst LOC),
5.86%, 2/1/2000 4,375,000
13,125,000 Maryland EDC, Human Genome
Sciences, Series 1999B,
(First Union National
Bank, Charlotte, NC LOC),
5.86%, 2/1/2000 13,125,000
4,770,000 Medilodge Group,
Meadowbrook Project,
(KeyBank, N.A. LOC),
6.03%, 2/3/2000 4,770,000
1,280,000 Michigan State Housing
Development Authority,
Series 1999B, Lexington
Place Apartments, (Bank of
America, N.A. LOC), 5.78%,
2/3/2000 1,280,000
10,000,000 Mississippi Business
Finance Corp., Kohler Co.
Project, (Wachovia Bank of
NC, N.A. LOC), 5.80%,
2/3/2000 10,000,000
2,990,000 New Berlin, WI, Sunraider
LLC, Series 1997-B, (Bank
One, Wisconsin, N.A. LOC),
5.98%, 2/3/2000 2,990,000
4,100,000 New Jersey EDA, Morey
Organization, Inc. Project
Series 1997, (First Union
National Bank, Charlotte,
NC LOC), 5.91%, 2/2/2000 4,100,000
2,565,000 New Jersey EDA, Phoenix
Realty Partners, (First
Union National Bank,
Charlotte, NC LOC),
5.910%, 2/2/2000 2,565,000
9,130,000 O.K.I. Supply Co., Series
1998, (Fifth Third Bank,
Cincinnati LOC), 5.83%,
2/3/2000 9,130,000
3,325,000 Oakwoods Master LP, Series
1997, (Amsouth Bank N.A.,
Birmingham LOC), 6.16%,
2/3/2000 3,325,000
3,525,000 Olszeski Properties, Inc.,
Series 1988, (Bank One,
Ohio, N.A. LOC),
6.03%, 2/3/2000 3,525,000
10,000,000 Park Avenue Receivables
Corp., 5.475%, 2/3/2000 10,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
BANKING-CONTINUED
$ 1,000,000 Poseyville, IN, North
American Green, Series
1999, (Fifth Third Bank,
Cincinnati LOC), 6.04%,
2/3/2000 $ 1,000,000
4,033,000 Primex Funding Corp.,
Series 1997-A, (Bank One,
Indiana, N.A. LOC),
5.94%, 2/3/2000 4,033,000
1,776,912 1 Rabobank Optional
Redemption Trust, Series
1997-101, 6.186%,
4/20/2000 1,776,912
9,635,000 Royal Wine Corp. and KFP
International Ltd., Series
1998, (KeyBank, N.A. LOC),
6.10%, 2/3/2000 9,635,000
7,000,000 Sandridge Food Corp.,
(Bank One, Ohio, N.A. LOC),
5.99%, 2/3/2000 7,000,000
9,600,000 Smith Land Improvement
Corp., Series 1999,
(Allfirst LOC), 5.860%,
2/1/2000 9,600,000
3,810,000 Solon Properties LLC,
(Huntington National Bank,
Columbus, OH LOC),
5.98%, 2/3/2000 3,810,000
2,130,000 Spitzer Group, Series
1998-C, (Bank One, Ohio,
N.A. LOC), 5.98%, 2/3/2000 2,130,000
1,100,000 TDB Realty Ltd.,
(Huntington National Bank,
Columbus, OH LOC),
5.98%, 2/3/2000 1,100,000
2,160,000 Tallahassee-Leon County
Civic Center Authority,
Series 1998-C, (SunTrust
Bank, Central Florida
LOC), 5.85%, 2/2/2000 2,160,000
3,280,000 Team Rahal of Pittsburgh,
Inc., Series 1997,
(Huntington National Bank,
Columbus, OH LOC), 5.98%,
2/3/2000 3,280,000
10,000,000 Three Rivers Funding
Corp., 5.88%, 2/1/2000 10,000,000
2,050,000 Trap Rock Industries,
Inc., Series 1997, (First
Union National Bank,
Charlotte, NC LOC), 5.91%,
2/2/2000 2,050,000
885,000 Triple O LLC, Series 1999,
(Huntington National Bank,
Columbus, OH LOC), 6.03%,
2/3/2000 885,000
5,565,000 VLF LLC, The Village of
Lovejoy, Fountain Project,
(KeyBank, N.A. LOC),
6.10%, 2/3/2000 5,565,000
2,715,000 Van Wyk Enterprises, Inc.,
(Huntington National Bank,
Columbus, OH LOC), 5.98%,
2/3/2000 2,715,000
10,000,000 Wildcat Management Ltd.,
Inc., Series 1999,
(Firstar Bank, N.A.,
Cincinnati LOC), 5.90%,
2/3/2000 10,000,000
TOTAL 487,075,293
BROKERAGE-2.5%
117,600,000 Morgan Stanley, Dean
Witter & Co., 5.83%,
2/4/2000 117,600,000
FINANCE - AUTOMOTIVE-1.9%
88,800,000 General Motors Acceptance
Corp., Mortgage of PA,
(General Motors Acceptance
Corp. LOC), 5.83% - 5.924%,
3/7/2000 88,442,874
FINANCE - COMMERCIAL-1.4%
68,800,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 5.83% -
6.296%, 2/1/2000 -
3/28/2000 68,800,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
FINANCE - EQUIPMENT-0.2%
$ 9,000,000 Deere (John) Capital
Corp., 6.23%, 2/1/2000 $ 9,001,452
INSURANCE-6.4%
24,000,000 Allstate Life Insurance
Co., 6.113% - 6.616%,
2/1/2000 24,000,000
27,000,000 First Allmerica Financial
Life Insurance Co.,
6.306%, 2/3/2000 27,000,000
15,000,000 GE Life and Annuity
Assurance Co., 6.20%,
3/1/2000 15,000,000
62,400,000 Jackson National Life
Insurance Co., 5.90% -
6.271%, 2/1/2000 -
4/30/2000 62,400,000
15,087,000 1 Liquid Asset Backed
Securities Trust, Series
1997-3 Sr. Notes, (AMBAC
INS), 6.151%, 2/27/2000 15,087,000
15,835,324 1 Liquid Asset Backed
Securities Trust, Sr.
Notes (Series 1998-1),
(AMBAC INS), 5.819%,
2/27/2000 15,835,324
24,000,000 Peoples Security Life
Insurance Co., 5.93% -
6.41%, 2/1/2000 24,000,000
20,000,000 Principal Life Insurance
Co., 6.26%, 3/1/2000 20,000,000
15,000,000 Protective Life Insurance
Co., 6.355%, 2/1/2000 15,000,000
30,000,000 Security Life of Denver
Insurance Co., 6.100% -
6.359%, 2/10/2000 -
3/28/2000 30,000,000
35,000,000 Transamerica Life
Insurance and Annuity Co.,
6.094%, 3/1/2000 -
4/1/2000 35,000,000
10,000,000 Transamerica Occidental
Life Insurance Co.,
6.329%, 2/29/2000 10,000,000
10,000,000 Travelers Insurance Co.,
6.094%, 3/1/2000 10,000,000
TOTAL 303,322,324
TOTAL VARIABLE RATE
OBLIGATIONS 1,074,241,943
TIME DEPOSIT-4.2%
BANKING-4.2%
200,000,000 SunTrust Bank, Atlanta,
5.875%, 2/1/2000 200,000,000
REPURCHASE AGREEMENTS-8.8%
4
138,100,000 Bank of America, 5.80%,
dated 1/31/2000, due
2/1/2000 138,100,000
150,000,000 Deutsche Bank Financial,
Inc., 5.80%, dated
1/31/2000, due 2/1/2000 150,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-
continued 4
$ 56,200,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.70%, dated 1/31/2000,
due 2/1/2000 $ 56,200,000
75,000,000 Toronto Dominion
Securities (USA), Inc.,
5.69%, dated 1/31/2000,
due 2/1/2000 75,000,000
TOTAL REPURCHASE
AGREEMENTS 419,300,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 4,768,354,931
</TABLE>
1 Denotes a restricted security that has been deemed liquid by criteria approved
by the fund's Board of Trustees. At January 31, 2000, these securities amounted
to $32,699,236 which represents 0.69% of net assets.
2 Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
3 Current rate and next reset date shown.
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 represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($4,747,906,186) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation EDA -Economic Development
Authority EDC -Economic Development Corp.
IDA -Industrial Development Authority
INS -Insured
LOC -Letter of Credit
MBIA -Municipal Bond Investors Assurance
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Prime Value Obligations Fund
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM NOTES-8.6%
BANKING-0.9% $ 15,000,000 Bank One, Illinois, N.A.,
6.025% - 6.070%,
10/10/2000 - 11/13/2000 $ 14,993,288
5,000,000 Westpac Banking Capital
Corp. Ltd., Sydney,
6.220%, 11/30/2000 4,996,792
TOTAL 19,990,080
BROKERAGE-2.2%
50,000,000 Goldman Sachs Group, Inc.,
5.900% - 6.00%, 3/14/2000 -
3/24/2000 50,000,000
FINANCE - COMMERCIAL-5.3%
95,500,000 Beta Finance, Inc., 5.000%
- 5.700%, 2/1/2000 -
6/28/2000 95,499,226
9,000,000 FINOVA Capital Corp.,
6.170% - 6.45%, 6/1/2000 -
6/12/2000 9,006,460
18,000,000 Sigma Finance, Inc.,
6.000% - 6.780%, 8/11/2000
- 2/28/2001 18,000,000
TOTAL 122,505,686
FINANCE - EQUIPMENT-0.2%
5,227,804 Copelco Capital Funding
LLC, Series 1999-B, Class
A-1, 5.937%, 10/18/2000 5,227,804
105,275 Heller Equipment Asset
Receivables Trust, Series
1999-1, Class A1,
4.948%, 5/13/2000 105,275
TOTAL 5,333,079
INSURANCE-0.0%
5,500 Americredit Automobile
Receivables Trust, Series
2000-A, Class A1,
6.040%, 2/5/2001 5,500
TOTAL SHORT-TERM NOTES 197,834,345
CERTIFICATES OF DEPOSIT-
14.9%
BANKING-14.9%
15,000,000 Bank of Nova Scotia,
Toronto, 5.290%, 3/9/2000 14,999,415
25,000,000 Bank of Scotland,
Edinburgh, 5.950%,
4/12/2000 24,999,952
50,000,000 Bank One, Illinois, N.A.,
6.030%, 11/13/2000 49,971,934
10,000,000 Bayerische Landesbank
Girozentrale, 5.150%,
3/21/2000 9,999,549
25,000,000 Canadian Imperial Bank of
Commerce, 5.160% - 5.340%,
2/23/2000 - 3/21/2000 24,999,080
20,000,000 Commerzbank AG, Frankfurt,
5.290%, 5/15/2000 19,997,259
30,000,000 Halifax PLC, 5.900%,
3/31/2000 30,000,000
121,000,000 MBNA America Bank, N.A.,
6.000% - 6.030%, 4/12/2000
- 4/19/2000 121,000,000
50,000,000 Svenska Handelsbanken,
Stockholm, 5.180%,
3/20/2000 49,998,100
TOTAL CERTIFICATES OF
DEPOSIT 345,965,289
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMERCIAL PAPER-34.2% 1
BANKING-12.1%
$ 28,000,000 Abbey National N.A. Corp.,
(Guaranteed by Abbey
National Bank PLC,
London), 5.906%, 4/25/2000 $ 27,619,760
20,000,000 Australia & New Zealand
ANZ, Inc., (Guaranteed by
Australia & New Zealand
Banking Group, Melbourne),
5.928%, 4/12/2000 19,769,644
71,000,000 Cregem North America,
Inc., (Guaranteed by
Credit Communal de
Belgique, Brussels),
5.920% - 6.020%, 2/14/2000
- 2/18/2000 70,829,760
24,000,000 Den Danske Corp., Inc.,
(Guaranteed by Den Danske
Bank A/S), 6.007% - 6.069%,
5/31/2000 - 6/21/2000 23,460,100
43,594,000 Gotham Funding Corp.,
5.718% - 5.786%, 2/2/2000 -
2/15/2000 43,533,411
50,000,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.750%, 2/23/2000 49,825,222
10,000,000 Svenska Handelsbanken,
Inc., (Guaranteed by
Svenska Handelsbanken,
Stockholm), 5.928%,
4/12/2000 9,884,822
37,000,000 Westpac Capital Corp.,
(Guaranteed by Westpac
Banking Corp. Ltd.,
Sydney), 5.967%, 5/2/2000 36,457,539
TOTAL 281,380,258
BROKERAGE-2.7%
32,000,000 Goldman Sachs Group, Inc.,
5.935%, 4/28/2000 31,547,600
10,000,000 Morgan Stanley, Dean
Witter & Co., 5.927%,
4/24/2000 9,865,356
21,000,000 Salomon Smith Barney
Holdings, Inc., 5.922%,
4/3/2000 20,788,425
TOTAL 62,201,381
CHEMICALS-0.8%
6,955,000 IMC Global, Inc., 6.454%,
2/7/2000 6,947,639
10,516,000 Rohm & Haas Co., 6.347% -
6.475%, 2/4/2000 10,510,473
TOTAL 17,458,112
CONTAINER/PACKAGING-0.3%
7,300,000 Crown Cork & Seal Co.,
Inc., 5.846% - 5.858%,
2/15/2000 - 2/24/2000 7,279,094
FINANCE - COMMERCIAL-10.9%
20,000,000 Corporate Asset Funding
Co., Inc., 5.808%,
3/22/2000 19,840,278
20,000,000 Edison Asset
Securitization LLC,
6.003%, 5/15/2000 19,659,111
41,135,000 Falcon Asset
Securitization Corp.,
5.697% - 5.750%, 2/10/2000
- 2/22/2000 41,007,601
50,000,000 General Electric Capital
Corp., 5.917% - 6.032%,
2/25/2000 - 3/10/2000 49,759,156
83,013,000 Receivables Capital Corp.,
5.937% - 5.981%, 2/8/2000 -
4/20/2000 82,528,698
41,000,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 5.941% -
5.941%, 4/3/2000 -
5/10/2000 40,363,871
TOTAL 253,158,715
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMERCIAL PAPER-continued
1
HOMEBUILDING-0.5%
$ 11,700,000 Centex Corp., 5.801% -
5.832%, 2/2/2000 -
2/10/2000 $ 11,689,740
INDUSTRIAL PRODUCTS-0.5%
11,160,000 Praxair, Inc., 6.421%,
2/1/2000 11,160,000
INSURANCE-5.4%
37,000,000 CXC, Inc., 5.947%,
4/7/2000 36,601,818
87,860,000 Sheffield Receivables
Corp., 5.707% - 6.022%,
2/2/2000 - 2/22/2000 87,733,696
TOTAL 124,335,514
RETAIL-1.0%
24,053,000 Safeway, Inc., 5.799% -
5.820%, 2/3/2000 -
2/9/2000 24,036,557
TOTAL COMMERCIAL PAPER 792,699,371
NOTES - VARIABLE-28.9% 2
BANKING-11.8%
9,410,000 500 South Front St. LP,
Series A, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 9,410,000
5,075,000 500 South Front St. LP,
Series B, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 5,075,000
1,112,500 Alabama State IDA,
(Nichols Research Corp.),
(SouthTrust Bank of
Alabama, Birmingham LOC),
6.090%, 2/4/2000 1,112,500
16,900,000 Beverly California Corp.,
(PNC Bank, N.A. LOC),
5.810%, 2/7/2000 16,900,000
16,385,000 Beverly Hills Nursing
Center, Inc., Medilodge
Project Series 1996,
(KeyBank, N.A. LOC),
6.030%, 2/3/2000 16,385,000
1,725,000 Bissett, William K. and
Sheryl B., Multi-Option
Adjustable Rate Notes,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 1,725,000
6,000,000 Bond Holdings LP,
(SouthTrust Bank of
Alabama, Birmingham LOC),
5.930%, 2/4/2000 6,000,000
6,715,000 Briarwood LP, Briarwood
Ltd. Partnership Project
Series 1999, (Bank One,
Ohio, N.A. LOC), 6.040%,
2/3/2000 6,715,000
9,826,000 Capital One Funding Corp.,
Series 1999-B, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 9,826,000
480,000 Carmel, IN, Telamon Corp.,
Series 1996-C, (Huntington
National Bank, Columbus,
OH LOC), 6.080%, 2/3/2000 480,000
930,000 Carmel, IN, Telamon Corp.,
Series A, (Huntington
National Bank, Columbus,
OH LOC), 6.080%, 2/3/2000 930,000
1,005,000 Carmel, IN, Telamon Corp.,
Series B, (Huntington
National Bank, Columbus,
OH LOC), 6.080%, 2/3/2000 1,005,000
900,000 Colorado Health Facilities
Authority, Series B, (Bank
One, Colorado LOC),
6.030%, 2/3/2000 900,000
36,900,000 Comerica Bank, 5.791% -
5.864%, 9/25/2000 -
11/9/2000 36,883,292
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
NOTES - VARIABLE-continued
2
BANKING-CONTINUED
$ 1,900,000 Continental Downtown
Properties, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 $ 1,900,000
5,795,000 Dellridge Care Center LP,
Series 1997, (Allfirst
LOC), 5.860%, 2/2/2000 5,795,000
3,445,000 Denver Urban Renewal
Authority, Series 1992-B,
(Paribas, Paris LOC),
5.880%, 2/3/2000 3,445,000
9,445,000 ERC Real Estate LLC,
(KeyBank, N.A. LOC),
6.100%, 2/3/2000 9,445,000
4,000,000 Frank Parsons Paper Co.,
Inc., Series 1999,
(Allfirst LOC), 5.871%,
2/4/2000 4,000,000
5,000,000 Greene County Development
Authority, Reynolds Lodges
LLC, Series 1999-A,
(Firstar Bank, N.A.,
Cincinnati LOC), 5.900%,
2/2/2000 5,000,000
5,000,000 Industrial Dimensions,
Inc., Series 1999, (Fifth
Third Bank of Northwestern
OH LOC), 5.830%, 2/3/2000 5,000,000
8,123,000 International Processing
Corp., (Bank One, Kentucky
LOC), 5.990%, 2/3/2000 8,123,000
2,000,000 Jeffersonville, IN, Series
1997-B, Wayne Steel, Inc.,
(Bank One, Ohio, N.A. LOC),
5.940%, 2/3/2000 2,000,000
5,500,000 Kenwood Country Club,
Inc., Series 1999,
(Firstar Bank, N.A.,
Cincinnati LOC), 5.900%,
2/3/2000 5,500,000
4,000,000 Lake Sherwood Senior
Living Center LLC, (Union
Planters NB, Memphis, TN
LOC), 6.290%, 2/3/2000 4,000,000
1,425,000 Lincoln Park Associates
Ltd., (Bank One, N.A. LOC),
5.980%, 2/3/2000 1,425,000
2,000,000 Liquid Asset Backed
Securities Trust, Series
1996-3, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.801%,
2/15/2000 2,000,000
9,657,209 Liquid Asset Backed
Securities Trust, Series
1997-1, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.793%,
2/15/2000 9,657,209
9,052,209 3 Liquid Asset Backed
Securities Trust, Series
1997-3 Sr. Notes, (AMBAC
INS), 6.151%, 3/28/2000 9,052,209
6,686,026 3 Liquid Asset Backed
Securities Trust, Series
1998-1 Sr. Notes, (AMBAC
INS), 5.819%, 2/25/2000 6,686,026
5,000,000 Maryland Industrial
Development Financing
Authority, Gen-Vec, Inc.
Facility, Series 1999,
(Allfirst LOC), 5.870%,
2/4/2000 5,000,000
4,100,000 Melberger, Clifford K. and
Ruth B., (PNC Bank, N.A.
LOC), 5.810%, 2/7/2000 4,100,000
9,500,000 Park Avenue Receivables
Corp., 5.475%, 2/3/2000 9,500,000
6,860,000 Pine Ridge Associates
Ltd., (Mellon Bank N.A.,
Pittsburgh LOC), 6.050%,
2/2/2000 6,860,000
7,055,000 Rubloff-Rockford LLC,
Series 1997, (National
City Bank,
Michigan/Illinois LOC),
5.860%, 2/2/2000 7,055,000
15,640,000 Scranton Times LP, Series
1997, (PNC Bank, N.A. LOC),
5.810% 2/7/2000 15,640,000
2,690,000 Solon, OH, IDRB Schneps
Family LP, (Bank One, Ohio,
N.A. LOC),
5.940%, 2/3/2000 2,690,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
NOTES - VARIABLE-continued
2
BANKING-CONTINUED
$ 7,520,000 Southern Coil Processing,
Inc. Notes, (AmSouth Bank
N.A., Birmingham LOC),
5.850%, 2/3/2000 $ 7,520,000
1,640,000 Team Rahal of
Mechanicsburg, Inc.,
Series 1997, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 1,640,000
1,795,000 Team Rahal, Inc., Series
1997, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 1,795,000
5,000,000 Three Rivers Funding
Corp., 5.880%, 2/17/2000 5,000,000
7,300,000 Tift County, GA
Development Authority,
Chickasha of Georgia
Project Series 1997, (Bank
of Tokyo-Mitsubishi Ltd.
LOC), 6.000%, 2/2/2000 7,300,000
1,700,000 Village Green Finance Co.,
LLC, Series 1997,
(Wachovia Bank of NC, N.A.
Winston-Salem LOC),
5.820%, 2/2/2000 1,700,000
1,240,000 Vista Funding Corp.,
Series 1995-A, (Firstar
Bank, N.A., Cincinnati
LOC), 6.100%, 2/3/2000 1,240,000
TOTAL 273,415,236
BROKERAGE-3.6%
84,000,000 Morgan Stanley, Dean
Witter & Co., 5.830 -
5.880%, 2/4/2000 84,000,000
FINANCE - AUTOMOTIVE-1.8%
42,000,000 General Motors Acceptance
Corp., 5.830%, 3/7/2000 42,000,000
FINANCE - COMMERCIAL-3.7%
25,000,000 Asset Securitization
Cooperative Corp., 5.831%
- 5.903%, 2/14/2000 -
3/7/2000 24,999,772
60,200,000 Sigma Finance, Inc.,
(Guaranteed by Sigma
Finance Corp.), 6.000% -
6.158%, 2/29/2000 -
3/22/2000 60,200,000
TOTAL 85,199,772
FINANCE - EQUIPMENT-0.7%
10,000,000 Comdisco, Inc., 6.656%,
2/29/2000 10,000,000
5,000,000 Deere (John) Capital
Corp., 6.074%, 2/1/2000 5,000,807
TOTAL 15,000,807
FINANCE - RETAIL-0.3%
8,000,000 AFS Insurance Premium
Receivables Trust, Series
1994-A, 7.019%, 2/15/2000 8,000,000
HOMEBUILDING-0.4%
8,900,000 Centex Corp., 6.540%,
4/27/2000 8,900,000
INSURANCE-6.6%
12,000,000 Allstate Life Insurance
Co., 6.616%, 2/1/2000 12,000,000
22,500,000 First Allmerica Financial
Life Insurance Co.,
6.306%, 2/1/2000 22,500,000
5,000,000 GE Life and Annuity
Assurance Co., 6.200%,
2/1/2000 5,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
NOTES - VARIABLE-continued
2
INSURANCE-CONTINUED
$ 30,000,000 Jackson National Life
Insurance Co., 5.900% -
6.160%, 2/1/2000 -
2/22/2000 $ 30,000,000
25,000,000 Monumental Life Insurance
Co., 158, 6.180%, 2/6/2000 25,000,000
15,000,000 Principal Life Insurance
Co., 6.260%, 3/1/2000 15,000,000
13,000,000 Protective Life Insurance
Co., 6.200%, 2/1/2000 13,000,000
15,000,000 Security Life of Denver
Insurance Co., 6.100%,
4/28/2000 15,000,000
10,000,000 Transamerica Life
Insurance and Annuity Co.,
6.094%, 2/1/2000 -
4/1/2000 10,000,000
5,000,000 Transamerica Occidental
Life Insurance Co.,
6.329%, 2/29/2000 5,000,000
TOTAL 152,500,000
TOTAL NOTES - VARIABLE 669,015,815
LOAN PARTICIPATION-4.0%
CHEMICALS-2.2% 7,500,000 DuPont Teijin Films U.K.
Ltd., (Guaranteed by Du
Pont (E.I.) de Nemours &
Co.), 6.000%, 2/22/2000 7,500,000
43,000,000 Teijin DuPont Films,
(Guaranteed by Du Pont
(E.I.) de Nemours & Co.),
6.000% - 6.100%, 2/29/2000
- 3/29/2000 43,000,000
TOTAL 50,500,000
ELECTRICAL EQUIPMENT-0.5%
12,100,000 Mt. Vernon Phenol Plant
Partnership, (Guaranteed
by General Electric Co.),
6.120%, 5/17/2000 12,100,000
FINANCE - AUTOMOTIVE-0.2%
6,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
6.210%, 2/1/2000 6,000,000
FINANCE - EQUIPMENT-1.1%
25,000,000 Pitney Bowes Credit Corp.,
5.809%, 2/10/2000 24,963,875
TOTAL LOAN PARTICIPATION 93,563,875
TIME DEPOSIT-2.2%
BANKING-2.2%
50,000,000 Societe Generale, Paris,
5.813%, 2/1/2000 50,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-7.5%
4
$ 49,500,000 Bank of America, 5.800%,
dated 1/31/2000, due
2/1/2000 $ 49,500,000
75,000,000 Deutsche Bank Financial,
Inc., 5.800%, dated
1/31/2000, due 2/1/2000 75,000,000
23,300,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.700%, dated 1/31/2000,
due 2/1/2000 23,300,000
25,000,000 Toronto Dominion
Securities (USA), Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 25,000,000
TOTAL REPURCHASE
AGREEMENTS 172,800,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 2,321,878,695
</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 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At January 31, 2000, these
securities amounted to $15,738,235 which represents 0.7% of net assets.
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 represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,316,019,703) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation
IDA -Industrial Development Authority
IDRB -Industrial Development Revenue Bond
INS -Insured
LOC -Letter of Credit
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Tax-Free Obligations Fund
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
99.6% 1
ALABAMA-5.0%
$ 3,705,000 Alabama HFA, Series 1995 E,
Weekly VRDNs (Royal
Gardens
Apartments)/(SouthTrust
Bank of Alabama,
Birmingham, AL LOC) $ 3,705,000
5,000,000 Alabama State Public
School & College
Authority, Series D, 5.00%
Bonds, 8/1/2000 5,027,759
5,000,000 Alabama State Public
School & College
Authority, PUTTERs, Series
124, Weekly VRDNs (FGIC
INS)/(J.P. Morgan & Co.,
Inc. LIQ) 5,000,000
2,000,000 Anniston, AL, IDB, Series
1989 A, Weekly VRDNs (Union
Foundry Co.)/(Amsouth Bank
N.A., Birmingham, AL LOC) 2,000,000
1,125,000 Birmingham, AL IDA,
Revenue Refunding Bonds
Weekly VRDNs (S.P. Hotel
Co.)/(Amsouth Bank N.A.,
Birmingham, AL LOC) 1,125,000
3,500,000 Birmingham, AL Medical
Clinic Board, Medical
Clinic Revenue Bonds,
Series 1996, Weekly VRDNs
(St. Martin's In The
Pines)/(Regions Bank,
Alabama LOC) 3,500,000
7,800,000 Chatom, AL, IDB PCR, 3.90%
CP (Alabama Electric Co-
op, Inc.)/(National Rural
Utilities Cooperative
Finance Corp. GTD),
Mandatory Tender 2/10/2000 7,800,000
24,600,000 Columbia, AL IDB, Series
1999 C, Daily VRDNs
(Alabama Power Co.) 24,600,000
3,300,000 Homewood, AL IDA Weekly
VRDNs (Mountain Brook Inn,
Homewood, AL)/(SouthTrust
Bank of Alabama,
Birmingham, AL LOC) 3,300,000
30,000,000 Hoover, AL Board of
Education, Series 1999 C,
3.80% BANs, 8/1/2000 30,000,000
35,000,000 Jefferson County, AL,
Series 1999, Weekly VRDNs
(Bayerische Landesbank
Girozentrale LOC) 35,000,000
16,500,000 Jefferson County, AL, GO
Warrants, Series 1996,
Weekly VRDNs (Bayerische
Landesbank Girozentrale
LOC) 16,500,000
6,250,000 Marshall County, AL,
Special Obligation School
Refunding Warrant, Series
1994, Weekly VRDNs
(Marshall County, AL Board
of Education)/(Regions
Bank, Alabama LOC) 6,250,000
2,500,000 Mobile, AL IDA Weekly VRDNs
(McRae's Industries,
Inc.)/(Bank of America,
N.A. LOC) 2,500,000
8,500,000 Mobile, AL IDB, PCR, Series
1993 B, Weekly VRDNs
(Alabama Power Co.) 8,500,000
13,000,000 Mobile, AL Port City
Medical Clinic Board,
Series 1998 A, 3.75% CP
(Infirmary Health System,
Inc.)/(AMBAC
INS)/(Rabobank Nederland,
Utrecht LIQ), Mandatory
Tender 2/18/2000 13,000,000
200,000 Montgomery, AL IDB, Series
1988 A, Weekly VRDNs (Smith
Industries)/(SunTrust
Bank, Atlanta, GA LOC) 200,000
1,190,000 Tuscaloosa County, AL Port
Authority, Series 1989 A,
Weekly VRDNs (Capstone
Hotel Ltd.)/(SouthTrust
Bank of Alabama,
Birmingham, AL LOC) 1,190,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
ALABAMA-CONTINUED
$ 280,000 Tuscaloosa, AL IDB,
Revenue Refunding Bonds,
Series 1994, Weekly VRDNs
(Harco, Inc.)/(Amsouth
Bank N.A., Birmingham, AL
LOC) $ 280,000
4,295,000 Vincent, AL IDB Weekly
VRDNs (Headquarters
Partnership
Project)/(National
Australia Bank, Ltd.,
Melbourne LOC) 4,295,000
TOTAL 173,772,759
ALASKA-0.7%
11,000,000 Alaska State Housing
Finance Corp., MERLOTS,
Series 1999 D, Weekly VRDNs
(First Union National
Bank, Charlotte, NC LIQ) 11,000,000
7,205,000 2 Alaska State Housing
Finance Corp., (PT-202),
3.25% TOBs (Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
3/11/2000 7,205,000
6,385,000 Alaska State Housing
Finance Corp., Variable
Rate Certificates, Series
1997 A, Weekly VRDNs (Bank
of America, N.A. LIQ) 6,385,000
TOTAL 24,590,000
ARIZONA-0.9%
8,250,000 Apache County, AZ IDA,
Series 1983 A, Weekly VRDNs
(Tucson Electric
Power Co.)/(Toronto
Dominion Bank LOC) 8,250,000
1,800,000 Arizona Health Facilities
Authority Weekly VRDNs
(University
Physicians, Inc.)/(Bank
One, AZ N.A. LOC) 1,800,000
1,700,000 Arizona Health Facilities
Authority, Pooled Loan
Program Revenue Bonds,
Series 1985 B, Weekly
VRDNs (FGIC INS)/(Chase
Manhattan Bank N.A., NY
LIQ) 1,700,000
4,900,000 Chandler, AZ IDA Weekly
VRDNs (SMP II Limited
Partnership)/(Bank One, AZ
N.A. LOC) 4,900,000
3,375,000 Gila County, AZ IDA Weekly
VRDNs (Cobre Valley
Hospital)/(Bank One, AZ
N.A. LOC) 3,375,000
2,000,000 Glendale, AZ IDA, Variable
Rate Senior Living
Facilities Revenue Bonds
Weekly VRDNs (Friendship
Retirement Corp.)/(Norwest
Bank MN, N.A. LOC) 2,000,000
1,000,000 Maricopa County, AZ
Pollution Control Corp.,
Series 1984, Weekly VRDNs
(El Paso Electric
Co.)/(Barclays Bank PLC,
London LOC) 1,000,000
5,300,000 Pima County, AZ IDA Weekly
VRDNs (Tucson Electric
Power Co.)/(Toronto
Dominion Bank LOC) 5,300,000
2,600,000 Pinal County, AZ IDA, PCR
Bonds Daily VRDNs (Magma
Copper Co.)/(ABN AMRO Bank
N.V., Amsterdam LOC) 2,600,000
TOTAL 30,925,000
ARKANSAS-0.1%
2,000,000 Sheridan, AR IDA, Series A,
Weekly VRDNs (H.H.
Robertson Co.)/(PNC Bank,
N.A. LOC) 2,000,000
CALIFORNIA-0.2%
7,000,000 Stanislaus County, CA
Office of Education, 4.00%
TRANs, 8/1/2000 7,017,405
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
COLORADO-1.0%
$ 3,785,000 Colorado Health Facilities
Authority, Series 1998 C-
1, Weekly VRDNs
(Developmental
Disabilities Center)/(Bank
One, CO LOC) $ 3,785,000
2,275,000 Denver (City & County), CO,
4.40% TOBs (Blake Street
Compendium)/(Norwest Bank
Minnesota, N.A. LOC),
Optional Tender 12/15/2000 2,275,000
14,660,000 Denver (City & County), CO,
MERLOTS, Series 1997 E,
Weekly VRDNs (Department
of Aviation Airport
System)/(MBIA INS)/(First
Union National Bank,
Charlotte, NC LIQ) 14,660,000
5,100,000 Denver (City & County), CO,
Trust Reciepts, Series
1998 FR/RI-13, Weekly
VRDNs (MBIA INS)/(Bank of
New York, NY LIQ) 5,100,000
9,725,000 2 Eagle County School
District No. RE50J, CO,
(PT-1155), 3.30% TOBs
(FGIC INS)/(Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
5/18/2000 9,725,000
TOTAL 35,545,000
CONNECTICUT-0.3%
4,000,000 2 Connecticut State HFA,
Variable Rate
Certificates, Series 1998
S, 3.70% TOBs (Bank of
America, N.A. LIQ),
Optional Tender 8/17/2000 4,000,000
5,000,000 Connecticut State,
PUTTERs, Series 110,
Weekly VRDNs (FGIC
INS)/(J.P. Morgan & Co.,
Inc. LIQ) 5,000,000
TOTAL 9,000,000
DISTRICT OF COLUMBIA-1.9%
2,070,000 District of Columbia
Housing Finance Agency,
Multifamily Housing, 3.50%
TOBs (Chastleton
Project)/(Bank of America,
N.A. LOC), Optional Tender
7/1/2000 2,070,000
10,090,000 District of Columbia,
Series 1999, Weekly VRDNs
(Association of American
Medical Colleges)/(AMBAC
INS)/(Bank of America,
N.A. LIQ) 10,090,000
6,300,000 District of Columbia,
Series 1999, Weekly VRDNs
(Young Men's Christian
Association of
Metropolitan
Washington)/(Allfirst LOC) 6,300,000
24,365,000 District of Columbia,
Series 1999 C, Weekly VRDNs
(George Washington
University)/(MBIA
INS)/(Bank of America,
N.A. LIQ) 24,365,000
21,665,000 District of Columbia,
Series 1999 C, Weekly VRDNs
(National Academy of
Sciences)/(AMBAC
INS)/(Bank of America,
N.A. LOC) 21,665,000
3,575,000 District of Columbia,
Revenue Bonds, Series 1997
B, Weekly VRDNs
(Association of American
Medical Colleges)/(AMBAC
INS)/(Chase Manhattan Bank
N.A., NY LIQ) 3,575,000
TOTAL 68,065,000
FLORIDA-7.3%
7,100,000 ABN AMRO MuniTOPS
Certificates Trust
(Florida Non-AMT), Series
1998-8, Weekly VRDNs (Dade
County, FL Water & Sewer
System)/(FGIC INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 7,100,000
7,000,000 ABN AMRO MuniTOPS
Certificates Trust
(Florida Non-AMT), Series
1998-9, Weekly VRDNs
(Florida State Board of
Education Capital
Outlay)/(FSA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 7,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
FLORIDA-CONTINUED
$ 6,920,000 2 ABN AMRO MuniTOPS Certificates Trust (Florida
Non-AMT), Series 1999-11, 3.85% TOBs (Tampa Bay Water Utility
System, FL)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ),
Optional Tender 3/8/2000 $ 6,920,000
2,830,000 Brevard County, FL Weekly
VRDNs (Greywater
Investments)/(Huntington
National Bank, Columbus,
OH LOC) 2,830,000
6,500,000 Broward County, FL HFA,
Series 1997, Weekly VRDNs
(Jacaranda Village
Apartments)/(HSBC Bank USA
LOC) 6,500,000
2,710,000 Broward County, FL Health
Facility Authority,
Revenue Bonds Weekly VRDNs
(John Knox Village of
Florida)/(First Union
National Bank, Charlotte,
NC LOC) 2,710,000
8,000,000 Florida HFA, Multifamily
Housing Revenue Bonds,
Series 1985 SS, Weekly
VRDNs (Woodlands
Apartments)/(Northern
Trust Co., Chicago, IL LOC) 8,000,000
2,580,000 Fort Lauderdale, FL
Performing Arts Center
Authority Weekly VRDNs
(SunTrust Bank, Central
Florida LOC) 2,580,000
500,000 Fort Myers, FL Utilities
Revenue, Series 1998-168,
Weekly VRDNs (FGIC
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 500,000
15,740,000 Gulf Breeze, FL, Series
1985 E, Weekly VRDNs (FGIC
INS)/(Credit Local de
France LIQ) 15,740,000
43,000,000 Highlands County, FL
Health Facilities, Series
1996 A, Weekly VRDNs
(Adventist Health
System)/(MBIA INS)/(Bank
One, N.A. LIQ) 43,000,000
24,000,000 Highlands County, FL
Health Facilities,
Variable Rate Demand
Revenue Bonds, Series 1996
A, Weekly VRDNs (Adventist
Health System)/(SunTrust
Bank, Central Florida LOC) 24,000,000
10,600,000 Highlands County, FL
Health Facilities,
Variable Rate Demand
Revenue Bonds, Series 1997
A, Weekly VRDNs (Adventist
Health System)/(SunTrust
Bank, Central Florida LOC) 10,600,000
7,570,000 Jacksonville
Transportation Authority,
(PA-146) Weekly VRDNs
(Florida State)/(Merrill
Lynch Capital Services,
Inc. LIQ) 7,570,000
1,700,000 Jacksonville, FL HFDC,
Health Facilities Revenue
Bonds, Series 1996, Weekly
VRDNs (Jacksonville
Faculty Practice
Association)/(Bank of
America, N.A. LOC) 1,700,000
2,200,000 Orange County, FL HFA,
Variable Rate
Certificates, Series 1997
G, Weekly VRDNs (GNMA
COL)/(Bank of America,
N.A. LIQ) 2,200,000
19,910,000 Orange County, FL School
District, Lehman, Series
1999 A49, Weekly VRDNs
(Bayerische Hypotheken-und
Vereinsbank AG LIQ) 19,910,000
7,400,000 Orlando Utilities
Commission, FL, BANs,
Series 1999 A, 3.60% CP
(Morgan Guaranty Trust
Co., New York LIQ),
Mandatory Tender 3/7/2000 7,400,000
13,750,000 Palm Beach County, FL
Airport System, FR/RI,
Series 1999 A 30, Weekly
VRDNs (MBIA INS)/(Bank of
New York, New York LIQ) 13,750,000
41,910,000 Palm Beach County, FL
School District, Series
1999/FR/RI-40, Weekly
VRDNs (Bank of New York, NY
LIQ) 41,910,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
FLORIDA-CONTINUED
$ 2,650,000 Pasco County, FL
Educational Facilities
Authority, Series 1999,
Weekly VRDNs (Saint Leo
University, FL)/(Allied
Irish Banks PLC LOC) $ 2,650,000
3,510,000 Pinellas County Industry
Council, FL Weekly VRDNs
(Loulourgas
Properties)/(First Union
National Bank, Charlotte,
NC LOC) 3,510,000
5,005,000 Pinellas County, FL Health
Facility Authority, Series
1987, Weekly VRDNs
(St. Mark Village
Project)/(Bank of America,
N.A. LOC) 5,005,000
5,525,000 Polk County, FL IDA, PCR Refunding Bonds Weekly VRDNs (IMC
Fertilizer, Inc.)/(Rabobank Nederland,
Utrecht LOC) 5,525,000
7,950,000 Putnam County, FL
Development Authority, PCR
Bonds, Series 1984 H,
Weekly VRDNs (Seminole
Electric Cooperative, Inc
(FL))/(National Rural
Utilities Cooperative
Finance Corp. LOC) 7,950,000
160,000 Sarasota, FL, Educational
Facilities Revenue Bonds,
Series 1996, Weekly VRDNs
(Ringling School of Art and
Design, Inc.)/(SunTrust
Bank, Central Florida LOC) 160,000
TOTAL 256,720,000
GEORGIA-4.4%
9,995,000 2 Bibb County, GA, (PT-199),
3.30% TOBs (Georgia State
GTD)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
5/11/2000 9,995,000
17,300,000 Burke County, GA
Development Authority,
Series 1999 A, Daily VRDNs
(Oglethorpe Power Corp.
Vogtle Project)/(AMBAC
INS)/(Morgan Guaranty
Trust Co., NY LIQ) 17,300,000
6,200,000 Burke County, GA
Development Authority,
Series A, Weekly VRDNs
(Oglethorpe Power
Corp.)/(FGIC INS)/(Credit
Local de France LIQ) 6,200,000
10,150,000 Burke County, GA
Development Authority, PCR
Bonds, Series 1993 A,
Weekly VRDNs (Oglethorpe
Power Corp.)/(FGIC
INS)/(Canadian Imperial
Bank of Commerce LIQ) 10,150,000
2,000,000 Clayton County, GA Housing
Authority, Revenue
Refunding Bonds, Series
1992, Weekly VRDNs (Oxford
Townhomes)/(Amsouth Bank
N.A., Birmingham, AL LOC) 2,000,000
8,000,000 Cobb County, GA IDA, Series
1997, Weekly VRDNs
(Wyndham Gardens)/
(Bankers Trust Co., NY
LOC) 8,000,000
4,200,000 Cobb-Marietta, GA Coliseum
& Exhibit Hall Authority,
Junior Lien Revenue Bonds,
Series 1996 A, Weekly VRDNs
(MBIA INS)/(SunTrust Bank,
Atlanta, GA LIQ) 4,200,000
1,400,000 De Kalb County, GA
Development Authority,
Series 1992, Weekly VRDNs
(American Cancer Society,
GA)/(SunTrust Bank,
Atlanta, GA LOC) 1,400,000
8,550,000 Floyd County, GA, PCR
Bonds, Series 1996, Daily
VRDNs (Georgia Power Co.) 8,550,000
15,900,000 Fulco, GA Hospital
Authority, Series 1999,
Weekly VRDNs (Piedmont
Hospital)/(SunTrust Bank,
Atlanta, GA LOC) 15,900,000
3,400,000 Fulton County, GA
Development Authority,
Series 1998, Weekly VRDNs
(Morehouse School of
Medicine)/(SunTrust Bank,
Atlanta, GA LOC) 3,400,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
GEORGIA-CONTINUED
$ 6,000,000 Fulton County, GA
Development Authority,
Series 1999, Weekly VRDNs
(Boy's and Girl's
Clubs)/(SunTrust Bank,
Atlanta, GA LOC) $ 6,000,000
10,000,000 Gainesville and Hall
County, GA Development
Authority, Series 1999 A,
Weekly VRDNs (Lanier
Village Estates,
Inc.)/(Regions Bank,
Alabama LOC) 10,000,000
2,000,000 Georgia Municipal Electric
Authority, (PT-294) Weekly
VRDNs
(MBIA INS)/(Landesbank
Hessen-Thueringen,
Frankfurt LIQ) 2,000,000
4,925,000 2 Gwinnett County, GA Water
and Sewer Authority, (PT-
1169), 3.62% TOBs
(Gwinnett County,
GA)/(Merrill Lynch Capital
Services, Inc. LIQ),
Optional Tender 7/20/2000 4,925,000
1,280,000 Macon-Bibb County, GA
Urban Development
Authority, Refunding
Revenue Bonds, Series
1995, Weekly VRDNs (Macon
Hotel Investors)/(Bank
One, MI LOC) 1,280,000
3,000,000 Marietta, GA Housing
Authority, Multifamily
Housing Revenue Refunding
Bonds, Series 1996, Weekly
VRDNs (Winterset
Apartments)/(Wachovia Bank
of NC, N.A. LOC) 3,000,000
9,260,000 Metropolitan Atlanta Rapid
Transit Authority, Floater
Certificates, Series 1998
59, Weekly VRDNs (MBIA
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 9,260,000
11,615,000 Monroe County, GA
Development Authority
IDRB, Series 1999 B, Daily
VRDNs (Oglethorpe Power
Corp. Scherer
Project)/(AMBAC
INS)/(Morgan Guaranty
Trust Co., NY LIQ) 11,615,000
5,800,000 Monroe County, GA
Development Authority
IDRB, PCR Bonds, Series
1997, Daily VRDNs (Georgia
Power Co.) 5,800,000
7,500,000 Rabun County, GA
Development Authority,
Series 1999, Weekly VRDNs
(Rabun Gap-Nacoochee,
Inc.)/(SunTrust Bank,
Atlanta, GA LOC) 7,500,000
7,340,000 Rockdale County, GA
Hospital Authority,
Revenue Anticipation
Certificates, Series 1994,
Weekly VRDNs (Rockdale
Hospital)/(SunTrust Bank,
Atlanta, GA LOC) 7,340,000
TOTAL 155,815,000
IDAHO-0.4%
15,000,000 Idaho Health Facilities
Authority, Series 1995,
3.65% CP (Holy Cross Health
System Corp.), Mandatory
Tender 3/8/2000 15,000,000
ILLINOIS-7.5%
10,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT),
Series 1998-14, Weekly VRDNs (Cook County, IL)/(FGIC INS)/(ABN
AMRO
Bank N.V., Amsterdam LIQ) 10,000,000
11,990,000 2 Chicago, IL Board of
Education, (PT-268), 3.80%
TOBs (FGIC
INS)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
7/13/2000 11,990,000
12,500,000 Chicago, IL Board of
Education, MERLOTS, Series
1997 E, Weekly VRDNs (AMBAC
INS)/(First Union National
Bank, Charlotte, NC LIQ) 12,500,000
40,435,000 Chicago, IL Board of
Education, Morgan Stanley, Series 1998 115, Weekly VRDNs (FGIC
INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc.
LIQ) 40,435,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
ILLINOIS-CONTINUED
$ 10,000,000 Chicago, IL Board of
Education, Variable Rate
Certificates, Series 1996
BB, Weekly VRDNs (MBIA
INS)/(Bank of America,
N.A. LIQ) $ 10,000,000
8,400,000 Chicago, IL Public
Building Commission,
Series 1997, Lehman TR/FR-
15 Weekly VRDNs (Chicago,
IL Board of
Education)/(MBIA
INS)/(Bank of New York, NY
LIQ) 8,400,000
2,760,000 Chicago, IL Weekly VRDNs
(Canadian Imperial Bank of
Commerce LOC) 2,760,000
3,245,000 Chicago, IL, Floater
Certificates, Series 1998-
92, Weekly VRDNs (FGIC
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 3,245,000
20,000,000 Chicago, IL, MERLOTS,
Series 1997 V, Weekly VRDNs
(Chicago, IL Water
Revenue)/(FGIC INS)/(First
Union National Bank,
Charlotte, NC LIQ) 20,000,000
20,000,000 2 Chicago, IL, Variable Rate
Certificates, Series 1998
M, 3.70% TOBs (FGIC
INS)/(Bank of America,
N.A. LIQ), Optional Tender
7/13/2000 20,000,000
9,940,000 2 Cook County, IL, (PT-
1111), 3.175% TOBs (FGIC
INS)/(Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
5/11/2000 9,940,000
3,800,000 Galesburg, IL, Series
1996, Weekly VRDNs (Knox
College)/(Lasalle National
Bank, Chicago, IL LOC) 3,800,000
155,000 Hopedale Village, IL,
Series 1998, Weekly VRDNs
(Hopedale Medical
Foundation)/(Bank One,
Illinois, N.A. LOC) 155,000
3,000,000 Illinois Development
Finance Authority Weekly
VRDNs (Newlywed
Food)/(Mellon Bank N.A.,
Pittsburgh, PA LOC) 3,000,000
2,500,000 Illinois Development
Finance Authority, Series
1997, Weekly VRDNs (Ada S.
McKInley Community
Services, Inc.)/(Harris
Trust & Savings Bank,
Chicago, IL LOC) 2,500,000
4,000,000 Illinois Development
Finance Authority, Cultural Facilities Revenue Bonds Weekly
VRDNs (Burpee Museum of Natural History)/(American National
Bank & Trust Co.,
Chicago, IL LOC) 4,000,000
1,000,000 Illinois Educational
Facilities Authority,
Revenue Bonds, Series
1995, Weekly VRDNs
(Ravinia Festival
Association (IL))/(Bank
One, MI LOC) 1,000,000
35,800,000 Illinois Health Facilities
Authority, Revenue Bonds,
Series 1985 B, Weekly VRDNs
(OSF Health Care
Systems)/(Bank of America,
N.A. LOC) 35,800,000
36,500,000 Illinois Health Facilities
Authority, Revenue
Refunding Bonds, Series
1997 B, Weekly VRDNs
(Advocate Health Care
Network)/(Bank One, N.A.,
Bank of America, N.A. and
Northern Trust Co.,
Chicago, IL LIQs) 36,500,000
1,000,000 Illinois Health Facilities
Authority, Revolving Fund
Pooled Financing Program,
Series 1985 F, Weekly VRDNs
(Bank One, MI LOC) 1,000,000
4,350,000 Illinois Housing
Development Authority,
Housing Bonds, Series
1999, Subseries B-1, 4.20%
TOBs, Mandatory Tender
12/22/2000 4,350,000
8,740,000 2 Lake County, IL Forest
Preserve District, (PT-
1171), 3.70% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
7/22/2000 8,740,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
ILLINOIS-CONTINUED
$ 1,725,000 Metropolitan Pier &
Exposition Authority, IL,
(PT-1079) Weekly VRDNs
(McCormick Place)/(FGIC
INS)/(Bank of America,
N.A. LIQ) $ 1,725,000
11,915,000 Village of Lombard, DuPage
Cty, IL MHRV, Series 1985,
4.05% TOBs (Clover Creek
Apartments)/(Bank One,
Arizona N.A. LOC),
Mandatory Tender
12/15/2000 11,915,000
TOTAL 263,755,000
INDIANA-1.7%
500,000 Dale, IN IDA Weekly VRDNs
(Spencer
Industries)/(National City
Bank, KY LOC) 500,000
8,800,000 Franklin, IN, EDR Bonds,
Series 1999, Weekly VRDNs
(Franklin United Methodist
Home, Inc.)/(Firstar Bank,
Milwaukee, WI LOC) 8,800,000
1,355,000 Indiana Health Facilities
Finance Authority
Rehabilitation Center
Weekly VRDNs (Crossroads
Rehabilitation
Center)/(Bank One, IN,
N.A. LOC) 1,355,000
16,500,000 Indianapolis, IN Local
Public Improvement Bond
Bank, Series 1999 E, 4.50%
TANs (Indianapolis, IN),
7/10/2000 16,542,342
4,485,000 Indianapolis, IN, Variable
Rate Demand EDR Bonds,
Series 1995, Weekly VRDNs
(Pleasant Run Children's
Homes, Inc.)/(Fifth Third
Bank, Cincinnati LOC) 4,485,000
1,935,000 Linton, IN, EDR Bonds,
Series 1999, Weekly VRDNs
(Franklin-Glenburn Home,
Inc.)/(Firstar Bank,
Milwaukee, WI LOC) 1,935,000
16,700,000 Mt. Vernon, IN Pollution
Control & Solid Waste
Authority, Disposal
Revenue Bonds, 3.40% CP
(General Electric Co.),
Mandatory Tender 2/4/2000 16,700,000
2,015,000 St. Joseph County, IN,
Multi-Mode Variable Rate
EDR Bonds, Series 1998,
Weekly VRDNs (South Bend
Heritage Foundation,
Inc.)/(KeyBank, N.A. LOC) 2,015,000
6,105,000 Winona Lake, IN, Series
1999 A, Weekly VRDNs (Grace
Village Retirement
Community)/(Firstar Bank,
N.A., Cincinnati, OH LOC) 6,105,000
TOTAL 58,437,342
KANSAS-0.5%
17,900,000 Burlington, KS, Series
1999 FR/RI-A7, Weekly
VRDNs (Kansas Gas and
Electric Company)/(MBIA
INS)/(Bank of New York, NY
LIQ) 17,900,000
KENTUCKY-1.4%
950,000 Boone County, KY, Revenue
Refunding Bonds Weekly
VRDNs (Spring Meadow
Associates)/(Huntington
National Bank, Columbus,
OH LOC) 950,000
7,500,000 Jefferson County, KY,
Adjustable Rate Industrial
Building Revenue Refunding
Bonds, Series 1997, Weekly
VRDNs (Kosmos Cement Co.
Partnership)/(Societe
Generale, Paris LOC) 7,500,000
4,665,000 Kentucky Economic
Development Finance
Authority Weekly VRDNs
(Henderson County Health
Care, Inc.)/(Federal Home
Loan Bank of Cincinnati, OH
LOC) 4,665,000
35,000,000 Owensboro, KY, Series
1996, Weekly VRDNs
(Owensboro Mercy Health
System, Inc.)/(Bank of
America, N.A. LOC) 35,000,000
TOTAL 48,115,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
LOUISIANA-0.7%
$ 14,000,000 Calcasieu Parish, LA, IDB,
Series 1999, Weekly VRDNs
(PPG Industries, Inc.) $ 14,000,000
800,000 Calcasieu Parish, LA, IDB,
PCR Bonds Weekly VRDNs
(Citgo Petroleum
Corp.)/(Westdeutsche
Landesbank Girozentrale
LOC) 800,000
2,010,000 Louisiana PFA, Advance
Funding Notes, Series 1999
E, 4.25% TRANs (St. James
Parish, LA), 10/24/2000 2,015,898
2,000,000 Louisiana PFA, Advance
Funding Notes, Series 1999
D, 4.25% TRANs (St. Charles
Parish, LA), 10/24/2000 2,005,869
6,500,000 Louisiana Public
Facilities Authority
Hospital Revenue, Series
1999 FR/RI-A31, Daily
VRDNs (Franciscan
Missionaries of Our Lady
Health System)/(FSA
INS)/(Bank of New York, NY
LIQ) 6,500,000
TOTAL 25,321,767
MAINE-0.1%
3,500,000 Biddeford, ME, 3.75% BANs,
6/1/2000 3,505,033
MARYLAND-4.0%
4,200,000 Anne Arundel County, MD,
Series 1988, Weekly VRDNs
(Oakland Hills L. P.
Facility)/(Allfirst LOC) 4,200,000
7,000,000 Anne Arundel County, MD,
3.52% TOBs (Baltimore Gas &
Electric Co.), Mandatory
Tender 6/30/2000 7,000,000
800,000 Baltimore County, MD,
Series 1992, Weekly VRDNs
(Sheppard & Enoch Pratt
Hospital
Facility)/(Societe
Generale, Paris LOC) 800,000
4,490,000 Baltimore County, MD,
Series 1999, Weekly VRDNs
(Calvert Hall College
Facility)/(Allfirst LOC) 4,490,000
3,700,000 Baltimore, MD PCR Weekly
VRDNs (SCM Plants,
Inc.)/(Barclays Bank PLC,
London LOC) 3,700,000
1,950,000 Baltimore, MD, Variable
Rate Demand/Fixed Rate
Refunding Bond, Series
1988, Weekly VRDNs
(University West
LP)/(Allfirst LOC) 1,950,000
10,000,000 Frederick County, MD,
Series 1997, Weekly VRDNs
(Homewood at Frederick MD,
Inc. Facility)/(Allfirst
LOC) 10,000,000
1,500,000 Frederick County, MD,
Series 1997 E, Weekly VRDNs
(Buckinghams Choice,
Inc.)/(Lasalle National
Bank, Chicago, IL LOC) 1,500,000
1,500,000 Frederick County, MD,
Revenue Bonds, Series
1995, Weekly VRDNs
(Sheppard Pratt
Residential Treatment
Facility)/(Societe
Generale, Paris LOC) 1,500,000
1,950,000 Harford County, MD, Series
1988, Weekly VRDNs (1001
Partnership
Facility)/(Allfirst LOC) 1,950,000
5,490,000 Howard County, MD, Series
1995, Weekly VRDNs (Bluffs
at Clarys Forest
Apartments)/(Allfirst LOC) 5,490,000
3,335,000 Howard County, MD, Series
1999, Weekly VRDNs (Howard
Development Limited
Partnership
Facility)/(Allfirst LOC) 3,335,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MARYLAND-CONTINUED
$ 200,000 Maryland Economic
Development Corp., Pooled
Financing Revenue Bonds,
Series 1995, Weekly VRDNs
(Maryland Municipal Bond
Fund)/(Bank of America,
N.A. LOC) $ 200,000
3,510,000 Maryland Economic
Development Corp.,
Variable Rate Demand/Fixed
Rate Refunding Revenue
Bonds, Series 1997, Weekly
VRDNs (Jenkins Memorial
Nursing Home, Inc.
Facility)/(Allfirst LOC) 3,510,000
6,860,000 Maryland Health & Higher
Educational Facilities
Authority, Series 1998 A,
Weekly VRDNs (Charlestown
Community)/(First Union
National Bank, Charlotte,
NC LOC) 6,860,000
6,700,000 Maryland Health & Higher
Educational Facilities
Authority, Series 1999,
Weekly VRDNs (Boys' Latin
School)/(Allfirst LOC) 6,700,000
11,000,000 Maryland Health & Higher
Educational Facilities
Authority, Series 1999,
Weekly VRDNs (Landon
School)/(Crestar Bank of
Virginia, Richmond, VA
LOC) 11,000,000
11,975,000 Maryland Health & Higher
Educational Facilities
Authority, Revenue Bonds,
Series 1994, Weekly VRDNs
(University Physicians,
Inc.)/(Allfirst LOC) 11,975,000
9,200,000 Maryland Health & Higher
Educational Facilities Authority, Series 1997, Weekly VRDNs
(Augsburg Lutheran Home of MD.,
Inc.)/(Allfirst LOC) 9,200,000
21,290,000 2 Maryland State Community
Development
Administration, (PT-123),
3.80% TOBs (Commerzbank
AG, Frankfurt LIQ),
Optional Tender 10/5/2000 21,290,000
4,990,000 Maryland State, Floater
Certificate, Series 1998- 64, Weekly VRDNs (Morgan Stanley,
Dean Witter Municipal Funding, Inc.
LIQ) 4,990,000
2,319,000 Montgomery County, MD Housing Opportunities Commission,
Variable Rate Housing Revenue Bonds, Series 1998, Weekly VRDNs
(Byron House, Inc.
Facility)/(Allfirst LOC) 2,319,000
5,000,000 Montgomery County, MD, EDR
Weekly VRDNs (Howard
Hughes Medical Center) 5,000,000
11,780,000 Westminster, MD, Series
1997, Weekly VRDNs
(Western Maryland College,
Inc. Facilities)/(Allfirst
LOC) 11,780,000
TOTAL 140,739,000
MASSACHUSETTS-0.3%
11,600,000 Commonwealth of
Massachusetts, Series 1997
B, Weekly VRDNs
(Landesbank Hessen-
Thueringen, Frankfurt LIQ) 11,600,000
MICHIGAN-5.6%
1,800,000 ABN AMRO MuniTOPS
Certificates Trust
(Michigan Non-AMT), Series
1998-11, Weekly VRDNs
(DeWitt, MI Public
Schools)/(FSA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 1,800,000
2,909,000 Battle Creek, MI Economic
Development Corporation,
Limited Obligation EDR
Refunding Bonds, Series
1992, Weekly VRDNs
(Michigan Carton &
Paperboard Co.)/(American
National Bank & Trust Co.,
Chicago, IL LOC) 2,909,000
300,000 Bruce Township, MI
Hospital Finance
Authority, Tender
Securities Weekly VRDNs
(Sisters of Charity Health
Care System)/(MBIA
INS)/(Morgan Guaranty
Trust Co., NY LIQ) 300,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MICHIGAN-CONTINUED
$ 33,000,000 Detroit, MI Sewage
Disposal System, Trust
Receipts FR/RI-A75, Series
1999, Weekly VRDNs (FGIC
INS)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ) $ 33,000,000
800,000 Detroit, MI Water Supply
System, Water Supply
System Revenue and Revenue
Refunding Bonds, Series
1993, Weekly VRDNs (FGIC
INS)/(FGIC Securities
Purchase, Inc. LIQ) 800,000
12,000,000 Detroit, MI, MERLOTS,
Series 2000 D, Weekly VRDNs
(FGIC INS)/(First Union
National Bank, Charlotte,
NC LIQ) 12,000,000
1,740,000 Garden City, MI HFA,
Hospital Revenue Bonds,
Series 1996 A, Weekly VRDNs
(Garden City Hospital,
Osteopathic)/(National
City Bank,
Michigan/Illinois LOC) 1,740,000
2,100,000 Grand Rapids, MI EDR,
Floating/Fixed Rate Demand
Bonds, Series 1983 B,
Weekly VRDNs (Amway Grand
Plaza Hotel
Facilities)/(Old Kent Bank
& Trust Co., Grand Rapids,
MI LOC) 2,100,000
500,000 Grand Rapids, MI Economic
Development Corp., EDR
Refunding Bonds,
Series 1991 A, Weekly
VRDNs (Amway Hotel
Corp.)/(Michigan National
Bank, Farmington Hills, MI
LOC) 500,000
1,000,000 Grand Rapids, MI Water
Supply System, Series
1993, Weekly VRDNs
(FGIC INS)/(Societe
Generale, Paris LIQ) 1,000,000
6,830,000 Ingham County, MI Economic
Development Corp.,
Adjustable Demand Limited
Obligation Revenue Bonds,
Series 1995, Weekly VRDNs
(Martin Luther Memorial
Home, Inc.)/(Bank One, IN
N.A. LOC) 6,830,000
4,655,000 Kalamazoo, MI Economic
Development Corp., Series
1995, Limited Obligation
Revenue Refunding Bonds
Weekly VRDNs (Wyndham
Project, MI)/(National
City Bank,
Michigan/Illinois LOC) 4,655,000
1,800,000 Michigan Higher Education
Facilities Authority,
Series 1999, Daily VRDNs
(Concordia College, Ann
Arbor MI)/(Allied Irish
Banks PLC LOC) 1,800,000
840,000 Michigan Higher Education
Facilities Authority,
Limited Obligation Revenue
Bonds, Series 1997, Weekly
VRDNs (Davenport College
of Business)/(Old Kent
Bank & Trust Co., Grand
Rapids, MI LOC) 840,000
16,000,000 Michigan State Building
Authority, Series 1, 3.65%
CP (Canadian Imperial Bank
of Commerce LOC),
Mandatory Tender 4/27/2000 16,000,000
9,000,000 Michigan State Hospital
Finance Authority, Series
1999 A, Weekly VRDNs
(Covenant Reitrement
Communities,
Inc.)/(Lasalle National
Bank, Chicago, IL LOC) 9,000,000
1,300,000 Michigan State Hospital
Finance Authority, Series
A, Weekly VRDNs (National
City Bank,
Michigan/Illinois LOC) 1,300,000
1,900,000 Michigan State Hospital
Finance Authority,
Hospital Equipment Loan
Program Bonds, Series A,
Weekly VRDNs (National
City Bank,
Michigan/Illinois LOC) 1,900,000
19,650,000 Michigan State Hospital
Finance Authority,
MERLOTS, Series 1997 A,
Weekly VRDNs (Detroit
Medical Center Obligated
Group)/(AMBAC INS)/(First
Union National Bank,
Charlotte, NC LIQ) 19,650,000
39,995,000 Michigan State Hospital
Finance Authority,
MERLOTS, Series 1999 K,
Weekly VRDNs (Ascension
Health Credit Group)/(MBIA
INS)/(First Union National
Bank, Charlotte, NC LIQ) 39,995,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MICHIGAN-CONTINUED
$ 10,000,000 Michigan State Hospital
Finance Authority, Morgan
Stanley Floater,
Series 1998-180, Weekly
VRDNs (Ascension Health
Credit Group)/(Morgan
Stanley, Dean Witter
Municipal Funding, Inc.
LIQ) $ 10,000,000
11,000,000 Michigan State Housing
Development Authority,
MERLOTS, Series G,
Weekly VRDNs (MBIA
INS)/(First Union National
Bank, Charlotte, NC LIQ) 11,288,090
7,295,000 Michigan Strategic Fund,
(PA-334), COL Series 1998 AA, Weekly VRDNs (Detroit Edison
Co.)/(MBIA INS)/(Merrill Lynch Capital Services, Inc.
LIQ) 7,295,000
2,500,000 Michigan Strategic Fund,
(PT-244) Weekly VRDNs
(Detroit Edison Co.)/(FGIC
INS)/(Banque Nationale de
Paris LIQ) 2,500,000
2,695,000 Ottawa County, MI Economic
Development Corp., Limited
Obligation Revenue Bonds,
Series 1995 B, Weekly
VRDNs (Sunset Manor, Inc.
Project)/(Old Kent Bank &
Trust Co., Grand Rapids
LOC) 2,695,000
4,485,000 Wayne Westland Community
Schools, MI, Floater
Certificates, Series 1998-
67, Weekly VRDNs (FGIC
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 4,485,000
TOTAL 196,382,090
MINNESOTA-4.6%
24,229,000 ABN AMRO MuniTOPS
Certificates Trust
(Minnesota Non-AMT),
Series 1998-6, Weekly
VRDNs (Minneapolis/St.
Paul, MN Airport
Commission)/(AMBAC
INS)/(ABN AMRO Bank N.V.,
Amsterdam LIQ) 24,229,000
2,475,000 Albert Lea, MN ISD No. 241,
3.90% TRANs (Minnesota
State GTD), 9/30/2000 2,475,000
4,400,000 Becker, MN, PCR, Series
1993 B, 3.55% CP (Northern
States Power Co.),
Mandatory Tender 3/10/2000 4,400,000
3,420,000 Chicago Lakes, MN Area
Schools No. 2144, 3.84%
TRANs (Minnesota State
GTD), 9/30/2000 3,420,000
4,420,000 Faribault, MN ISD 656,
3.25% TANs (Minnesota
State GTD), 3/9/2000 4,421,081
4,530,000 Forest Lake, MN ISD No.
831, Series 1999 A, 3.65%
TANs (Minnesota State
GTD), 8/1/2000 4,533,240
3,075,000 Lakeville, MN ISD 194,
3.82% TRANs (Minnesota
State GTD), 9/26/2000 3,075,000
3,540,000 Little Falls, MN ISD 482,
3.85% TRANs (Minnesota
State GTD), 9/30/2000 3,541,122
3,570,000 Minneapolis, MN, Series
1995 B, Daily VRDNs 3,570,000
20,420,000 Minneapolis, MN, Series
1999, Daily VRDNs
(Bayerische Hypotheken-und
Vereinsbank AG LIQ) 20,420,000
8,100,000 Minneapolis, MN, Series
1999 A, Daily VRDNs
(Bayerische Hypotheken-und
Vereinsbank AG LIQ) 8,100,000
16,165,000 Minneapolis, MN, Variable
Rate Housing Revenue Bonds
Weekly VRDNs (One Ten Grant
Project)/(U.S. Bank, N.A.,
Minneapolis, MN LOC) 16,165,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MINNESOTA-CONTINUED
$ 5,370,000 Minneapolis, MN, Various
Purpose Bonds, Series
1996, Daily VRDNs
(Bayerische Hypotheken-und
Vereinsbank AG LIQ) $ 5,370,000
3,995,000 Minnesota Public
Facilities Authority,
Morgan Stanley Floater
Certificate, Series 1998
73, Weekly VRDNs (Morgan
Stanley, Dean Witter
Municipal Funding,
Inc. LIQ) 3,995,000
6,000,000 Oak Park Heights, MN,
Elderly Housing Revenue
Bonds, Series 1998 B, 5.27%
TOBs (Bayerische
Landesbank Girozentrale),
Mandatory Tender 12/1/2000 6,000,000
29,000,000 Rochester, MN Health Care
Facility Authority, 3.90%
TOBs (Mayo
Foundation)/(United States
Treasury COL), Mandatory
Tender 4/20/2000 29,000,000
6,900,000 Southern Minnesota
Municipal Power Agency,
3.75% CP, Mandatory
Tender 3/7/2000 6,900,000
11,150,000 University of Minnesota,
Series 1999 A, Weekly VRDNs 11,150,000
TOTAL 160,764,443
MISSISSIPPI-0.3%
1,305,000 Hinds County, MS, Series
1991, Weekly VRDNs (North
State St.
Project)/(Amsouth Bank
N.A., Birmingham, AL LOC) 1,305,000
10,000,000 Jackson County, MS Port
Facility, 3.85% TOBs
(Chevron U.S.A.,
Inc.)/(Chevron Corp. LOC),
Mandatory Tender 5/1/2000 10,000,000
TOTAL 11,305,000
MISSOURI-0.6%
6,490,000 Missouri State HEFA Weekly
VRDNs (Barnes
Hospital)/(Morgan Guaranty
Trust Co., NY LOC) 6,490,000
4,200,000 Missouri State HEFA,
Series 1999 F, 4.25% TRANs
(Grandview Consolidated
School District #4, MO),
9/19/2000 4,212,712
5,000,000 Missouri State HEFA,
Series 1999 H, 4.25% TRANs
(Mehville R-9 School
District, MO), 9/19/2000 5,015,133
4,200,000 Poplar Bluff, MO IDA,
Series 1987, Weekly VRDNs
(Gates Rubber Co.)/(Bank
One, MI LOC) 4,200,000
TOTAL 19,917,845
MULTI STATE-2.9%
26,341,425 ABN AMRO Chicago Corp.,
Series 1997-1, LeaseTOPS
Trust Weekly VRDNs
(Lasalle National Bank,
Chicago LIQ)/(Lasalle
National Bank, Chicago, IL
LOC) 26,341,425
33,734,000 Clipper Tax-Exempt
Certificates Trust (Non-
AMT Multistate), Series A,
Weekly VRDNs (State Street
Bank and Trust Co. LIQ) 33,734,000
19,081,010 Equity Trust II, Series
1996, Weekly VRDNs
(Republic National Bank of
New York LOC) 19,081,010
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
MULTI STATE-CONTINUED
$ 16,754,826 PBCC LeaseTOPS Trust
(Multistate Non-AMT),
Series 1998 2, Weekly VRDNs
(AMBAC INS)/(Pitney Bowes
Credit Corp. LIQ) $ 16,754,826
4,840,021 PBCC LeaseTOPS Trust
(Multistate Non-AMT),
Series 1999 2, Weekly VRDNs
(AMBAC INS)/(Pitney Bowes
Credit Corp. LIQ) 4,840,021
TOTAL 100,751,282
NEVADA-0.2%
7,500,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT),
Series 1998-1, Weekly VRDNs (Nevada State)/(MBIA INS)/(ABN AMRO
Bank N.V.,
Amsterdam LIQ) 7,500,000
NEW JERSEY-0.7%
24,930,000 2 New Jersey State, CDC,
Series 1997 L, 3.50% TOBs
(CDC Municipal Products,
Inc. LIQ), Optional Tender
6/8/2000 24,930,000
NEW YORK-8.1%
10,500,000 Long Island Power
Authority, Electric System
Subordinated Revenue
Bonds, Series 1, Weekly
VRDNs (Bayerische
Landesbank Girozentrale
and Westdeutsche
Landesbank Girozentrale
LOCs) 10,500,000
1,430,000 Metropolitan
Transportation Authority,
NY, Trust Receipts, Series
1997 FR/RI-9, Weekly VRDNs
(FGIC INS)/(Bank of New
York, NY LIQ) 1,430,000
25,000,000 Nassau County, NY, Series
1999 B, 4.75% TANs (First
Union National Bank,
Charlotte, NC LOC),
8/31/2000 25,105,581
10,000,000 Nassau County, NY, Series
1999 C, 4.25% RANs (Bank of
New York, NY
LOC), 3/15/2000 10,007,456
6,750,000 Nassau County, NY, 4.25%
BANs (Fleet National Bank,
Springfield, MA
LOC), 5/16/2000 6,762,663
2,590,000 New York City Municipal
Water Finance Authority,
(PT-243) Weekly VRDNs (FSA
INS)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ) 2,590,000
8,000,000 New York City Municipal
Water Finance Authority,
Trust Receipts, Series
1997 FR/RI-6, Weekly VRDNs
(MBIA INS)/(Bank of New
York, NY LIQ) 8,000,000
25,000,000 2 New York City, NY
Transitional Finance
Authority, Trust Receipts,
Series 1999 FR/RI-A47,
3.85% TOBs (Bank of New
York, NY LIQ), Optional
Tender 2/23/2000 25,000,000
58,000,000 New York City, NY
Transitional Finance
Authority, Trust Receipts,
Series 1999 FR/RI-A48,
Weekly VRDNs (Bank of New
York, NY LIQ) 58,000,000
10,700,000 New York City, NY
Transitional Finance
Authority, (PT-1047)
Weekly VRDNs (Bank of
America, N.A. LIQ) 10,700,000
55,000,000 New York City, NY, Trust
Receipts, Series 1999
FR/RI-A51, Weekly VRDNs
(Bank of New York, NY LIQ) 55,000,000
5,425,000 New York State
Environmental Facilities
Corp., Trust Receipts,
Series 1997 FR/RI-4,
Weekly VRDNs (New York City
Municipal Water Finance
Authority)/(Bank of New
York, NY LIQ) 5,425,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
NEW YORK-CONTINUED
$ 4,995,000 2 New York State Mortgage
Agency, (PT-164), 3.25%
TOBs (Banque Nationale de
Paris LIQ), Optional
Tender 3/9/2000 $ 4,995,000
14,735,000 2 New York State Thruway
Authority, (PT-1158),
3.25% TOBs (Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
6/8/2000 14,735,000
10,000,000 Syracuse, NY, 4.25% BANs
(Fleet National Bank,
Springfield, MA LOC),
6/30/2000 10,026,304
28,700,000 VRDC/IVRC Trust, Series
1992 A, Weekly VRDNs (New
York City Municipal Water
Finance Authority)/(MBIA
INS)/(Citibank N.A., NY
LIQ) 28,700,000
1,600,000 VRDC/IVRC Trust, Series
1993 B, Weekly VRDNs
(Metropolitan
Transportation Authority,
NY)/(AMBAC INS)/(Citibank
N.A., NY LIQ) 1,600,000
4,500,000 VRDC/IVRC Trust, Series
1993 G, Weekly VRDNs (St.
Lukes Roosevelt Hospital
Center)/(FHA INS)/(Chase
Manhattan Bank N.A., NY
LIQ) 4,500,000
TOTAL 283,077,004
NORTH CAROLINA-1.4%
15,000,000 Martin County, NC IFA,
Series 1993, Weekly VRDNs
(Weyerhaeuser Co.) 15,000,000
15,500,000 North Carolina Medical
Care Commission, Revenue
Bonds, Series 1992 B,
Weekly VRDNs (North
Carolina Baptist) 15,500,000
13,250,000 North Carolina State,
Series 1998 A, (PA-342)
Weekly VRDNs (Merrill
Lynch Capital Services,
Inc. LIQ) 13,250,000
6,600,000 North Carolina State,
Floater Certificates,
Series 1998-38, Weekly
VRDNs (Morgan Stanley,
Dean Witter Municipal
Funding, Inc. LIQ) 6,600,000
TOTAL 50,350,000
OHIO-8.0%
8,338,000 ABN AMRO MuniTOPS Certificates Trust (Ohio Non-AMT), Series
1998-18, Weekly VRDNs (Cleveland, OH Waterworks)/(FSA INS)/(ABN
AMRO Bank N.V.,
Amsterdam LIQ) 8,338,000
2,150,000 Akron, Bath & Copley, OH
Joint Township Weekly
VRDNs (Visiting
Nurses)/(National City
Bank, OH LOC) 2,150,000
12,685,000 Ashland County, OH Health
Care, Series 1999, Weekly
VRDNs (Brethren Care,
Inc.)/(FirstMerit Bank,
N.A. LOC) 12,685,000
8,000,000 Avon Lake, OH, 3.625% BANs,
3/31/2000 8,005,932
6,360,000 Banc One Capital Higher
Education Tax-Exempt
Income Trust, Series 2,
Certificates of Ownership,
Weekly VRDNs (Bank One, KY
LOC) 6,360,000
3,265,000 Butler County, OH, Series
1999, Weekly VRDNs (Knolls
of Oxford)/(Firstar Bank,
N.A., Cincinnati, OH LOC) 3,265,000
15,000,000 Clark County, OH, Series
1999, Weekly VRDNs (Ohio
Masonic Home)/(AMBAC
INS)/(Harris Trust &
Savings Bank, Chicago, IL
LIQ) 15,000,000
4,500,000 Cuyahoga County, OH Health
Care Facilities, Series
1999, Weekly VRDNs
(Hospice of the Western
Reserve)/(Fifth Third
Bank, Cincinnati, OH LOC) 4,500,000
7,500,000 Cuyahoga County, OH
Hospital Authority, Series
C, Weekly VRDNs
(Cleveland Clinic) 7,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
OHIO-CONTINUED
$ 14,365,000 Cuyahoga County, OH,
Series 1999, Weekly VRDNs
(The Renaissance)/(Lasalle
National Bank, Chicago, IL
LOC) $ 14,365,000
6,500,000 Dublin, OH, Industrial
Development Refunding
Revenue Bonds, Series
1997, Weekly VRDNs (Witco
Corp.)/(Fleet National
Bank, Springfield, MA LOC) 6,500,000
4,850,000 Erie County, OH,
Adjustable Rate Demand
Health Care Facilities
Bonds, Series 1996 A,
Weekly VRDNs (Providence
Care Center)/(Bank One,
OH, N.A. LOC) 4,850,000
21,035,000 Greene County, OH, Series
A, 3.15% BANs, 3/2/2000 21,038,345
17,146,000 Greene County, OH, Series
C, 3.50% BANs, 6/1/2000 17,162,427
36,000,000 Greene County, OH,
Certificates of
Indebtedness, 3.30% BANs,
5/4/2000 36,017,660
5,550,000 Louisville City, OH,
Series 1999 A, Weekly VRDNs
(St. Joseph Care
Center)/(FirstMerit Bank,
N.A. LOC) 5,550,000
4,450,000 Louisville City, OH,
Series 1999 B, Weekly VRDNs
(St. Joseph Care
Center)/(FirstMerit Bank,
N.A. LOC) 4,450,000
7,090,000 Lucas County, OH Weekly
VRDNs (Lutheran Homes
Society)/(Bank One, Ohio,
N.A. LOC) 7,090,000
190,000 Lucas County, OH, Hospital
Improvement Revenue Weekly
VRDNs (Sunshine Children's
Home)/(National City Bank,
OH LOC) 190,000
6,230,000 Mahoning County, OH HFA,
Housing Revenue Bonds,
Series 1995, Weekly VRDNs
(Copeland Oaks
Project)/(Bank One, Ohio,
N.A. LOC) 6,230,000
6,860,000 Mahoning County, OH
Hospital Facilities,
Series 1995, Weekly VRDNs
(Shepherd of the
Valley)/(Bank One, Ohio,
N.A. LOC) 6,860,000
7,400,000 Medina County, OH, Series
1997, Weekly VRDNs (Plaza
71 Associates
Ltd.)/(Westdeutsche
Landesbank Girozentrale
LOC) 7,400,000
550,000 Montgomery County, OH IDA Weekly VRDNs (Center-Plex
Venture)/(KeyBank, N.A.
LOC) 550,000
11,400,000 Montgomery County, OH,
Series 1998 B, 3.85% CP
(Miami (OH) Valley
Hospital)/(Morgan Guaranty
Trust Co., New York LIQ),
Mandatory Tender 2/8/2000 11,400,000
3,345,000 Montgomery, OH IDA Weekly
VRDNs (Bethesda Two
Limited
Partnership)/(Huntington
National Bank, Columbus,
OH LOC) 3,345,000
7,780,000 New Albany, OH Community
Authority, Adjustable Rate
Multi-Purpose
Infrastructure Improvement
Bonds, Series A, Weekly
VRDNs (Huntington National
Bank, Columbus, OH LOC) 7,780,000
1,000,000 Ohio State Air Quality
Development Authority
Weekly VRDNs (Timken
Co.)/(Credit Suisse First
Boston LOC) 1,000,000
3,800,000 Ohio State Air Quality
Development Authority,
Series 1988 A, Weekly VRDNs
(PPG Industries, Inc.) 3,800,000
10,000,000 Ohio State Higher
Education Facility, Series
1999, Weekly VRDNs (Higher
Education Pooled Financing
1999 Program) (Fifth Third
Bank, Cincinnati, OH, LOC) 10,000,000
1,395,000 Ohio State Higher
Education Facility,
Revenue Bonds Weekly VRDNs
(Notre Dame
College)/(National City
Bank, OH LOC) 1,395,000
5,000,000 Ohio State University,
Series 1999 B2, Weekly
VRDNs 5,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
OHIO-CONTINUED
$ 6,000,000 Rickenbacker, OH Port
Authority, Series 1992,
Weekly VRDNs (Rickenbacker
Holdings, Inc.)/(Bank One,
OH, N.A. LOC) $ 6,000,000
5,185,000 Ross County, OH, Hospital
Facilities Revenue Bonds,
Series 1995, Weekly VRDNs
(Medical Center
Hospital)/(Fifth Third
Bank, Cincinnati, OH, LOC) 5,185,000
4,665,000 Ross County, OH, Hospital
Revenue Bonds Weekly VRDNs
(Adena Health
System)/(Fifth Third Bank,
Cincinnati, OH LOC) 4,665,000
5,200,000 Scioto County, OH Hospital
Authority Weekly VRDNs
(AMBAC INS)/(Bank One,
N.A. LIQ) 5,200,000
3,160,000 Summit County, OH,
Adjustable Rate Healthcare
Facilities Revenue Bonds,
Series 1996, Weekly VRDNs
(United Disability
Services,
Inc.)/(FirstMerit Bank,
N.A. LOC) 3,160,000
50,000 Twinsburg, OH IDA Weekly VRDNs (Carl J Massara
Project)/(KeyBank, N.A.
LOC) 50,000
4,000,000 Walnut Hills, OH High
School Alumni Foundation,
Series 1998, Weekly VRDNs
(Fifth Third Bank,
Cincinnati, OH LOC) 4,000,000
2,500,000 Wood County, OH, Series
1998, Weekly VRDNs (IMCO
Carbide Tool,
Inc.)/(Huntington National
Bank, Columbus, OH LOC) 2,500,000
TOTAL 280,537,364
OKLAHOMA-3.4%
63,200,000 Oklahoma State Industrial Authority, Flexible Rate Hospital
Revenue Bonds, Series 1990 B, 3.95% TOBs (Baptist Medical
Center, OK)/(AIG Funding, Inc.),
Mandatory Tender 2/17/2000 63,200,000
37,000,000 Oklahoma State Industrial
Authority, Health System Revenue Bonds, Series 1995 A, 3.95%
TOBs (Baptist Medical Center, OK)/(AIG Funding, Inc.),
Optional Tender 2/17/2000 37,000,000
18,640,000 Tulsa, OK International
Airport, Variable Rate
Certificates, Series 1997
B-2, Weekly VRDNs (MBIA
INS)/(Bank of America,
N.A. LIQ) 18,640,000
TOTAL 118,840,000
OREGON-0.2%
6,000,000 Oregon State, Veteran's
Welfare Bonds, Series 73 E,
Weekly VRDNs (Morgan
Guaranty Trust Co., NY LIQ) 6,000,000
PENNSYLVANIA-5.8%
20,525,000 2 ABN AMRO MuniTOPS
Certificates Trust
(Pennsylvania Non-AMT),
Series 1998-28, 3.55% TOBs
(Temple University)/(MBIA
INS)/(ABN AMRO Bank N.V.,
Amsterdam LIQ), Optional
Tender 2/9/2000 20,525,000
10,000,000 Allegheny County, PA IDA,
Series B, Weekly VRDNs
(Zoological Society of
Pittsburgh)/(PNC Bank,
N.A. LOC) 10,000,000
1,225,000 Allegheny County, PA IDA,
Commercial Development
Revenue Bonds,
Series 1992, Weekly VRDNs
(Eleven Parkway Center
Associates)/(Mellon Bank
N.A., Pittsburgh, PA LOC) 1,225,000
31,215,000 Commonwealth of
Pennsylvania, Floater
Certificate, Series 1998-
53, Weekly VRDNs (FGIC
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 31,215,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
PENNSYLVANIA-CONTINUED
$ 14,295,000 Commonwealth of
Pennsylvania, Trust
Series, Series 1999-3,
Weekly VRDNs (FGIC
INS)/(Chase Manhattan Bank
N.A., NY LIQ) $ 14,295,000
12,700,000 Dauphin County, PA General Authority, (Education and Health
Loan Program, Series 1997, Weekly VRDNs (AMBAC INS)/(Chase
Manhattan Bank N.A.,
NY LIQ) 12,700,000
4,900,000 Delaware County, PA Authority, Hospital Revenue Bonds, Series
1996, Weekly VRDNs (Crozer-Chester Medical Center)/(KBC Bank
N.V.
LOC) 4,900,000
5,500,000 Doylestown Hospital
Authority, PA, Doylestown
Hospital Revenue Bonds
Weekly VRDNs (AMBAC
INS)/(PNC Bank, N.A. LIQ) 5,500,000
3,000,000 Erie County, PA Hospital
Authority, Series 1998 B,
Daily VRDNs (Hamot Health
Foundation)/(AMBAC
INS)/(PNC Bank, N.A. LIQ) 3,000,000
19,500,000 Lancaster County, PA
Hospital Authority, Health
Center Revenue Bonds,
Series 1996, Weekly VRDNs
(Masonic Homes) 19,500,000
7,000,000 Lehigh County, PA General
Purpose Authority, Series
2000, Weekly VRDNs
(The Good Shepherd
Group)/(AMBAC INS)/(First
Union National Bank,
Charlotte, NC LIQ) 7,000,000
6,290,000 Montgomery County, PA IDA,
Commercial Development
Revenue Bonds,
Series 1992, Weekly VRDNs
(Hickory Pointe
Project)/(First Union
National Bank, Charlotte,
NC LOC) 6,290,000
8,760,000 Pennsylvania State Higher
Education Assistance
Agency, Revenue Refunding
Bonds, 6.80% Bonds (FGIC
INS), 12/1/2000 8,968,232
7,335,000 Pennsylvania State
University, (PT-242)
Weekly VRDNs (Bayerische
Hypotheken und Vereinsbank
AG LIQ) 7,335,000
1,250,000 Philadelphia, PA IDA,
Variable Rate Revenue
Bonds, Series 1998, Weekly
VRDNs (Philadelphia
Academy of Music)/(First
Union National Bank,
Charlotte, NC LOC) 1,250,000
3,500,000 Philadelphia, PA School
District, Series 1999-2000
B, 4.00% TRANs (Mellon Bank
N.A., Pittsburgh, PA LOC),
6/30/2000 3,507,644
15,000,000 Philadelphia, PA School
District, Series 1999-2000
C, 4.00% TRANs (PNC Bank,
N.A. LOC), 6/30/2000 15,032,761
25,000,000 Philadelphia, PA, Series
1999-2000 A, 4.25% TRANs,
6/30/2000 25,074,384
7,500,000 Temple University,
University Funding
Obligations, 3.15% BANs,
5/12/2000 7,500,000
TOTAL 204,818,021
RHODE ISLAND-0.2%
7,540,000 Rhode Island State Health
and Educational Building
Corp., 8.375% Bonds
(Johnson and Wales
University)/(United States
Treasury PRF), 4/1/2000
(Prerefunded@102) 7,752,677
SOUTH CAROLINA-2.0%
20,000,000 South Carolina State
Public Service Authority,
3.70% CP (Bank of America,
N.A., Bank of Nova Scotia,
Toronto, Commerzbank AG,
Frankfurt and Toronto
Dominion Bank LIQs),
Mandatory Tender 3/7/2000 20,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
SOUTH CAROLINA-CONTINUED
$ 18,300,000 South Carolina State
Public Service Authority,
3.75% CP (Bank of America,
N.A., Bank of Nova Scotia,
Toronto, Commerzbank AG,
Frankfurt and Toronto
Dominion Bank LIQs),
Mandatory Tender 2/22/2000 $ 18,300,000
30,000,000 Spartanburg County, SC
School District, (No.7),
3.00% BANs, 2/25/2000 30,001,147
TOTAL 68,301,147
TENNESSEE-3.5%
13,071,000 2 ABN AMRO MuniTOPS
Certificates Trust
(Multistate Non-AMT),
Series 1999-1, 3.35% TOBs
(Metropolitan Government
Nashville & Davidson
County, TN)/(FGIC
INS)/(ABN AMRO Bank N.V.,
Amsterdam LIQ), Optional
Tender 5/3/2000 13,071,000
22,500,000 Chattanooga, TN HEFA
Weekly VRDNs (Mccallie
School)/(SunTrust Bank,
Atlanta, GA LOC) 22,500,000
8,000,000 Chattanooga, TN HEFA
Weekly VRDNs (Sisken
Hospital)/(Bank of
America, N.A. LOC) 8,000,000
3,200,000 Chattanooga, TN IDB,
Series 1997, Weekly VRDNs
(YMCA)/(SunTrust Bank,
Nashville, TN LOC) 3,200,000
6,300,000 Jackson County, TN IDB,
Series B, Daily VRDNs
(Esselte AB)/(Bank of
America, N.A. LOC) 6,300,000
2,200,000 Knox County, TN IDB, Series
1999, Weekly VRDNs
(Educational Services of
the South, Inc.)/(SunTrust
Bank, Nashville, TN LOC) 2,200,000
4,900,000 Maury County, TN HEFA,
Series 1996 E, Weekly VRDNs
(Southern Healthcare
Systems, Inc.)/(Bank One,
TX N.A. LOC) 4,900,000
8,775,000 Memphis, TN Center City
Revenue Finance Corp.,
Series 1996 A, Weekly VRDNs
(South Bluffs)/(National
Bank of Commerce, Memphis,
TN LOC) 8,775,000
2,700,000 Memphis, TN, General
Improvement Refunding
Bonds, Series 1995 A,
Weekly VRDNs (Westdeutsche
Landesbank Girozentrale
LOC) 2,700,000
1,000,000 Memphis, TN, General
Improvement Refunding
Bonds, Series 1995 A,
Weekly VRDNs (Westdeutsche
Landesbank Girozentrale
LOC) 1,000,000
1,600,000 Metropolitan Government
Nashville & Davidson
County, TN HEFA, Series
1996, Weekly VRDNs (Dede
Wallace Center)/(SunTrust
Bank, Nashville, TN LOC) 1,600,000
7,500,000 Metropolitan Government
Nashville & Davidson
County, TN HEFA,
Educational Facilities
Revenue Bonds, Series
1997, Weekly VRDNs
(Belmont
University)/(SunTrust
Bank, Nashville, TN LOC) 7,500,000
2,900,000 Metropolitan Government
Nashville & Davidson
County, TN IDB, Series
1995, Weekly VRDNs
(Hickory Trace
Apartments)/(National City
Bank, KY LOC) 2,900,000
1,000,000 Montgomery Co, TN Public
Building Authority, Pooled
Financing Revenue Bonds,
Series 1996, Weekly VRDNs
(Montgomery County
Loan)/(Bank of America,
N.A. LOC) 1,000,000
5,000,000 Sevier County, TN Public
Building Authority, Series
IV-B-10, Daily VRDNs
(FSA INS)/(Morgan Guaranty
Trust Co., NY LIQ) 5,000,000
5,000,000 Sevier County, TN Public
Building Authority, Series
IV-B-11, Daily VRDNs
(FSA INS)/(Morgan Guaranty
Trust Co., NY LIQ) 5,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
TENNESSEE-CONTINUED
$ 5,000,000 Sevier County, TN Public
Building Authority, Series
IV-B-12, Daily VRDNs (FSA
INS)/(Morgan Guaranty
Trust Co., NY LIQ) $ 5,000,000
5,500,000 Sevier County, TN Public
Building Authority, Series
IV-B-9, Daily VRDNs (FSA
INS)/(Morgan Guaranty
Trust Co., NY LIQ) 5,500,000
2,500,000 Sevier County, TN Public
Building Authority, Local
Government Public
Improvement Bonds, Series
II-G-3, Weekly VRDNs
(Maryville, TN)/(AMBAC
INS)/(KBC Bank N.V. LIQ) 2,500,000
1,645,000 Washington County, TN IDB,
Revenue Refunding Bonds,
Series 1996, Weekly VRDNs
(Springbrook
Properties)/(SunTrust
Bank, Nashville, TN LOC) 1,645,000
12,900,000 Wilson County, TN Sports
Authority, Series 1999,
Weekly VRDNs (PNC Bank,
N.A. LOC) 12,900,000
TOTAL 123,191,000
TEXAS-8.6%
15,000,000 ABN AMRO MuniTOPS
Certificates Trust (Multi-
State Non-AMT), Series
1998-26, Weekly VRDNs
(Grapevine-Colleyville, TX
ISD)/(Texas Permanent
School Fund Guarantee
Program GTD)/(ABN AMRO
Bank N.V., Amsterdam LIQ) 15,000,000
12,996,000 ABN AMRO MuniTOPS
Certificates Trust
(Multistate Non-AMT),
Series 1998-19, Weekly
VRDNs (Dallas, TX
Waterworks & Sewer
System)/(FSA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 12,996,000
8,950,000 Aldine, TX ISD, Series
1997, SGB-29 Weekly VRDNs
(Texas Permanent School
Fund Guarantee Program
GTD)/(Societe Generale,
Paris LIQ) 8,950,000
9,365,000 2 Collin County, TX, (PT-
1156), 3.30% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
5/18/2000 9,365,000
5,575,000 2 Conroe, TX ISD, (PT-1168),
3.65% TOBs (Texas
Permanent School Fund
Guarantee Program
GTD)/(Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
7/20/2000 5,575,000
400,000 Grapevine, TX, IDC,
SimuFlite Training
International Project,
Series 1993, Weekly VRDNs
(Southern Air Transport,
Inc.)/(Bank of Montreal
LOC) 400,000
17,500,000 Harris County, TX HFDC,
Series 1994, Daily VRDNs
(Methodist Hospital,
Harris County, TX) 17,500,000
8,800,000 Harris County, TX HFDC,
Series 1997A, Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Bank of
America, N.A., Morgan
Guaranty Trust Co., New
York and Toronto Dominion
Bank LIQs) 8,800,000
14,170,000 Harris County, TX HFDC,
Unit Priced Demand
Adjustable Revenue Bonds,
Series 1997 B, Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Bank of
America, N.A., Morgan
Guaranty Trust Co., New
York and Toronto Dominion
Bank LIQs) 14,170,000
19,435,000 Houston, TX ISD, Morgan
Stanley Floater
Certificates, Series 1998-
133, Weekly VRDNs (Texas
Permanent School Fund
Guarantee Program
GTD)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 19,435,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
TEXAS-CONTINUED
$ 40,000,000 North Central Texas HFDC,
Flexible Rate Hospital
Revenue Bonds, Series
1998, 3.55% CP (Methodist
Hospitals of
Dallas)/(AMBAC
INS)/(Methodist Hospitals
of Dallas and Rabobank
Nederland, Utrecht LIQs),
Mandatory Tender 2/18/2000 $ 40,000,000
15,000,000 North Central Texas HFDC,
Series 1999 C, Weekly VRDNs
(Northwest Senior Housing
Corp.)/(Lasalle National
Bank, Chicago, IL LOC) 15,000,000
1,470,000 North Richland Hills, TX
IDC Weekly VRDNs (Tecnol,
Inc.)/(Bank of America,
N.A. LOC) 1,470,000
10,000,000 2 San Antonio ISD, TX, (PT-
1184), 3.80% TOBs (Texas
Permanent School Fund
Guarantee Program
GTD)/(Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
9/7/2000 10,000,000
23,200,000 San Antonio, TX Electric &
Gas, Series A, 3.60% CP
(Chase Bank of Texas,
Morgan Guaranty Trust Co.,
New York, Toronto Dominion
Bank and UBS AG LIQs),
Mandatory Tender 3/13/2000 23,200,000
4,000,000 San Antonio, TX Electric &
Gas, Municipal Securities
Trust Receipts,
Series 1997 SG 101, Weekly
VRDNs (Societe Generale,
Paris LIQ) 4,000,000
9,890,000 2 San Antonio, TX Electric &
Gas, (PT-1110), 3.25% TOBs
(Merrill Lynch Capital
Services, Inc. LIQ),
Optional Tender 5/11/2000 9,890,000
15,000,000 San Antonio, TX, Waste
System, Series 1995, 3.80%
CP (Westdeutsche
Landesbank Girozentrale
LIQ), Mandatory Tender
3/9/2000 15,000,000
3,860,000 TX Pooled Tax Exempt Trust,
Certificates of
Participation, Series
1996, Weekly VRDNs (Bank
One, Texas N.A. LOC) 3,860,000
65,000,000 Texas State, 4.50% TRANs,
8/31/2000 65,268,810
TOTAL 299,879,810
UTAH-0.1%
5,000,000 Emery County, UT, PCR Refunding Bonds, Series 1994, Daily VRDNs
(Pacificorp)/(AMBAC INS)/(Bank of Nova Scotia,
Toronto LIQ) 5,000,000
VERMONT-0.0%
800,000 Vermont Educational and
Health Buildings Financing
Agency, Series 1995 A,
Weekly VRDNs (KeyBank,
N.A. LOC) 800,000
VIRGINIA-1.0%
10,000,000 ABN AMRO MuniTOPS
Certificates Trust
(Virginia Non-AMT), Series
1998 21, Weekly VRDNs
(Norfolk, VA Water
Revenue)/(FSA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 10,000,000
4,340,000 Alexandria, VA IDA, Series
1999, Weekly VRDNs (Church
Schools in the Diocese of
Virginia)/(Crestar Bank of
Virginia, Richmond, VA
LOC) 4,340,000
1,800,000 Arlington County, VA
Weekly VRDNs (Ballston
Public Parking)/(Citibank
N.A. NY LOC) 1,800,000
3,125,000 Arlington County, VA,
Series 2000 A, Weekly VRDNs
(National Science Teachers
Association)/(Crestar Bank
of Virginia, Richmond, VA
LOC) 3,125,000
100,000 Fairfax County, VA EDA,
Series 1995, Weekly VRDNs (American Society of Civil Engineers
Foundation, Inc.)/(Mellon Bank N.A.,
Pittsburgh, PA LOC) 100,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
VIRGINIA-CONTINUED
$ 3,100,000 Fauquier County, VA IDA,
Refunding Revenue Bonds
Weekly VRDNs (Warrenton
Development Co.)/(Fleet
Bank N.A. LOC) $ 3,100,000
1,000,000 Hampton, VA Redevelopment
& Housing Authority,
Series 1998, Weekly VRDNs
(Township
Apartments)/(Amsouth Bank
N.A., Birmingham, AL LOC) 1,000,000
2,600,000 Newport News, VA EDA,
Series 1998, Weekly VRDNs
(Jefferson Point
Development)/(Credit
Suisse First Boston LOC) 2,600,000
2,885,000 Richmond, VA Redevelopment
& Housing Authority,
Series 1989, Weekly VRDNs
(Belmont Apartment)/(First
Union National Bank,
Charlotte, NC LOC) 2,885,000
6,254,000 Roanoke, VA IDA, Series A,
Daily VRDNs (Carillion
Health System)/(Bank of
America, N.A. LIQ) 6,254,000
1,185,000 Virginia Resources
Authority, Water and
Sewer, Series 1997, Weekly
VRDNs (Henrico County,
VA)/(Crestar Bank of
Virginia, Richmond, VA
LIQ) 1,185,000
TOTAL 36,389,000
WASHINGTON-0.9%
4,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT),
Series 1998-16, Weekly VRDNs (Port of Seattle, WA)/(MBIA
INS)/(ABN AMRO
Bank N.V., Amsterdam LIQ) 4,000,000
11,957,000 ABN AMRO MuniTops
Certificates Trust
(Multistate Non-AMT),
Series 1999-12, Weekly
VRDNs (Washington
State)/(MBIA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 11,957,000
10,000,000 King County, WA, MERLOTS,
Series E, Weekly VRDNs
(FGIC INS)/(First Union
National Bank, Charlotte,
NC LIQ) 10,000,000
2,200,000 Port of Seattle, WA, IDR Bonds, Series 1985, Weekly VRDNs
(Douglas Management Co.)/(Mellon Bank N.A.,
Pittsburgh, PA LOC) 2,200,000
2,930,000 Seattle, WA, Solid Waste
Utility Revenue Bonds,
4.75% Bonds (FSA INS),
8/1/2000 2,946,938
TOTAL 31,103,938
WEST VIRGINIA-0.6%
7,340,000 Cabell County Commission,
WV, Life Care Facilities
Multi-Option Revenue
Bonds, Series 1995, Weekly
VRDNs (Foster
Foundation)/(Huntington
National Bank, Columbus,
OH LOC) 7,340,000
14,500,000 Marshall County, WV, PCR,
Series 1992, Weekly VRDNs
(PPG Industries, Inc.) 14,500,000
TOTAL 21,840,000
WISCONSIN-2.2%
10,000,000 Appleton, WI Area School
District, 4.25% TRANs,
9/25/2000 10,028,053
3,250,000 Hancock, WI, IDR Refunding
Bonds, Series 1996, Weekly
VRDNs (Ore-Ida Foods,
Inc.)/(Heinz (H.J.) Co.
GTD) 3,250,000
4,400,000 Kettle Moraine, WI School
District, 4.00% TRANs,
9/1/2000 4,406,411
5,900,000 Middleton-Cross Plains
Area School District,
4.10% TRANs, 8/23/2000 5,911,072
9,450,000 New Berlin, WI School
District, 4.25% TRANs (New
Berlin, WI), 8/24/2000 9,474,083
5,000,000 Sparta, WI Area School
District, 3.25% BANs,
3/1/2000 5,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-
continued 1
WISCONSIN-CONTINUED
$ 4,975,000 Stevens Point, WI Area
Public School District,
4.25% TRANs, 10/13/2000 $ 4,988,670
3,500,000 Tomah, WI Area School
District, 4.15% TRANs,
9/26/2000 3,507,226
21,590,000 Wisconsin Health and
Educational Facilities
Authority, MERLOTS, Series
1997 B, Weekly VRDNs (Sinai
Samaritan Medical Center,
Inc.)/(MBIA INS)/(First
Union National Bank,
Charlotte, NC LIQ) 21,590,000
9,030,000 2 Wisconsin State, (PT-
1137), 3.90% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
3/9/2000 9,030,000
TOTAL 77,185,515
WYOMING-0.3%
2,050,000 Douglas, WY, IDR Bonds,
4.10% TOBs (Safeway,
Inc.)/(Bankers Trust Co.,
NY LOC) 6/1/2000 2,050,000
6,900,000 Lincoln County, WY,
Pollution Control Revenue
Bonds, Series 1985, Daily
VRDNs (Exxon Corp.) 6,900,000
1,125,000 Natrona County, WY,
Hospital Revenue, 5.525%
TOBs (Grainger (W.W.),
Inc.), Optional Tender
6/1/2000 1,125,000
TOTAL 10,075,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 3,494,514,442
</TABLE>
1 The fund invests in securities rated in the highest short-term rating category
by one or more nationally recognized statistical rating organizations ("NRSROs")
or unrated securities of comparable quality. An NRSRO's highest rating category
is determined without regard for sub- categories and gradations. For example,
securities rated SP-1+ or SP-1 by Standard & Poor's, MIG-1 or VMIG-1 by Moody's
Investors Service, or F-1+, F-1 or F-2 by Fitch IBCA, Inc. are all considered
rated in the highest short-term rating category. Securities rated in the highest
short-term rating category (and unrated securities of comparable quality) are
identified as First Tier securities. The fund follows applicable regulations in
determining whether a security rated by multiple NRSROs in different rating
categories should be identified as a First Tier security. At January 31, 2000,
the portfolio securities were rated as follows:
Tier Rating Based on Total Market Value (Unaudited)
<TABLE>
<CAPTION>
FIRST TIER SECOND TIER
<S> <C>
100.0% 0%
</TABLE>
2 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At January 31, 2000, these
securities amounted to $261,846,000 which represents 7.5% of net assets.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($3,510,259,181) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation AMT -Alternative Minimum
Tax BANs -Bond Anticipation Notes COL -Collateralized CP -Commercial Paper EDA
- -Economic Development Authority EDR -Economic Development Revenue FGIC
- -Financial Guaranty Insurance Company FHA -Federal Housing Administration FSA
- -Financial Security Assurance GNMA -Government National Mortgage Association GO
- -General Obligation GTD -Guaranteed HEFA -Health and Education Facilities
Authority HFA -Housing Finance Authority HFDC -Health Facility Development
Corporation IDA -Industrial Development Authority IDB -Industrial Development
Bond IDC -Industrial Development Corporation IDR -Industrial Development Revenue
IDRB -Industrial Development Revenue Bond IFA -Industrial Finance Authority INS
- -Insured ISD -Independent School District LIQ(s) -Liquidity Agreement(s) LOC(s)
- -Letter(s) of Credit MBIA -Municipal Bond Investors Assurance MERLOTS -Municipal
Exempt Receipts - Liquidity Optional Tender Series PUTTERs -Puttable Tax Exempt
Receipts PCR -Pollution Control Revenue PFA -Public Facility Authority PRF
- -Prerefunded RANs -Revenue Anticipation Notes TANs -Tax Anticipation Notes TOBs
- -Tender Option Bonds TRANs -Tax and Revenue Anticipation Notes VRDNs -Variable
Rate Demand Notes
See Notes which are an integral part of the Financial Statements
Statements of Assets and Liabilities
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
GOVERNMENT
GOVERNMENT OBLIGATIONS MUNICIPAL
OBLIGATIONS TAX-MANAGED OBLIGATIONS
FUND FUND FUND
<S> <C> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 3,385,300,000 $ - $ -
Investments in securities 4,570,181,837 2,831,123,382 600,102,821
Total investments in
securities, at amortized
cost and value 7,955,481,837 2,831,123,382 600,102,821
Cash - 31,727 3,953
Income receivable 24,439,766 8,681,712 3,753,169
TOTAL ASSETS 7,979,921,603 2,839,836,821 603,859,943
LIABILITIES:
Payable for investments
purchased 205,381,180 33,164,199 -
Income distribution
payable 33,564,541 12,474,421 1,669,061
Accrued expenses 730,753 336,112 62,793
TOTAL LIABILITIES 239,676,474 45,974,732 1,731,854
NET ASSETS CONSIST OF:
Paid-in capital $ 7,740,245,129 $ 2,793,862,089 $ 602,128,089
TOTAL NET ASSETS $ 7,740,245,129 $ 2,793,862,089 $ 602,128,089
NET ASSETS:
Institutional Shares $ 5,359,860,329 $ 1,299,312,363 $ 385,011,947
Institutional Service
Shares 2,380,384,800 1,494,549,726 156,813,788
Institutional Capital
Shares - - 60,302,354
TOTAL NET ASSETS $ 7,740,245,129 $ 2,793,862,089 $ 602,128,089
SHARES OUTSTANDING:
Institutional Shares 5,359,860,329 1,299,312,363 385,011,947
Institutional Service
Shares 2,380,384,800 1,494,549,726 156,813,788
Institutional Capital
Shares - - 60,302,354
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
Institutional Shares $1.00 $1.00 $1.00
Institutional Service
Shares $1.00 $1.00 $1.00
Institutional Capital
Shares - - $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Assets and Liabilities
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRIME CASH PRIME VALUE
TAX-FREE
OBLIGATIONS OBLIGATIONS
OBLIGATIONS
FUND FUND
FUND
<S> <C> <C>
<C>
ASSETS:
Investments in repurchase
agreements $ 419,300,000 $ 172,800,000
$ -
Investments in securities 4,349,054,931 2,149,078,695
3,494,514,442
Total investments in
securities, at amortized
cost and value 4,768,354,931 2,321,878,695
3,494,514,442
Cash - -
51,278
Income receivable 22,889,897 17,367,919
25,832,321
TOTAL ASSETS 4,791,244,828 2,339,246,614
3,520,398,041
LIABILITIES:
Payable for investments
purchased 23,000,000
13,005,500 -
Payable for shares
redeemed -
119,958 -
Income distribution
payable 19,935,135 9,917,589
9,758,408
Accrued expenses 403,507 183,864
380,452
TOTAL LIABILITIES 43,338,642 23,226,911
10,138,860
NET ASSETS CONSIST
OF:
Paid-in capital $ 4,747,906,186 $ 2,316,019,703 $
3,510,198,190
Accumulated net realized
loss on investments - -
(9,417)
Undistributed net
investment income - -
70,408
TOTAL NET ASSETS $ 4,747,906,186 $ 2,316,019,703 $
3,510,259,181
NET
ASSETS:
Institutional Shares $ 3,552,028,420 $ 1,464,772,259 $
2,514,172,741
Institutional Service
Shares 941,678,879 644,807,473
996,086,440
Institutional Capital
Shares 254,198,887
206,439,971 -
TOTAL NET ASSETS $ 4,747,906,186 $ 2,316,019,703 $
3,510,259,181
SHARES
OUTSTANDING:
Institutional Shares 3,552,028,420 1,464,772,259
2,514,157,700
Institutional Service
Shares 941,678,879 644,807,473
996,059,903
Institutional Capital
Shares 254,198,887
206,439,971 -
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER
SHARE:
Institutional Shares $1.00 $1.00
$1.00
Institutional Service
Shares $1.00 $1.00
$1.00
Institutional Capital
Shares $1.00
$1.00 -
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Operations
Six Months Ended January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
GOVERNMENT
GOVERNMENT OBLIGATIONS MUNICIPAL
OBLIGATIONS TAX-MANAGED
OBLIGATIONS
FUND FUND FUND
<S> <C> <C>
<C>
INVESTMENT
INCOME:
Interest $ 187,924,630 $ 72,111,871 $
11,492,304
EXPENSES:
Investment adviser fee 6,843,214 2,630,606
621,635
Administrative personnel
and services fee 2,578,757 991,290
230,607
Custodian fees 186,251 69,427
9,198
Transfer and dividend
disbursing agent fees and
expenses 108,520 17,845
37,351
Directors'/Trustees' fees 18,931 7,947
3,604
Auditing fees 6,837 6,575
7,518
Legal fees 11,893 5,913
9,480
Portfolio accounting fees 245,925 117,103
63,941
Shareholder services fee-
Institutional Shares 5,926,984 1,531,299
- -
Shareholder services fee-
Institutional Service
Shares 2,629,451 1,756,959
129,753
Shareholder services fee-
Institutional Capital
Shares - -
144,269
Share registration costs 29,499 32,139
35,702
Printing and postage 35,805 14,632
12,326
Insurance premiums 6,905 3,311
13,482
Miscellaneous 19,029 15,202
3,914
TOTAL EXPENSES 18,648,001 7,200,248
1,322,780
WAIVERS:
Waiver of investment
adviser fee (3,096,184) (1,244,508)
(467,728)
Waiver of shareholder
services fee-
Institutional Shares (5,926,984) (1,531,299)
- -
Waiver of shareholder
services fee-Institutional
Capital Shares - -
(86,561)
TOTAL WAIVERS (9,023,168) (2,775,807)
(554,289)
Net expenses 9,624,833 4,424,441
768,491
Net investment income 178,299,797 67,687,430
10,723,813
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Operations
Six Months Ended January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRIME CASH PRIME VALUE TAX-
FREE
OBLIGATIONS OBLIGATIONS
OBLIGATIONS
FUND FUND FUND
<S> <C> <C>
<C>
INVESTMENT
INCOME:
Interest $ 110,742,532 $ 63,805,090 $
62,025,897
EXPENSES:
Investment adviser fee 3,933,700 2,287,798
3,504,355
Administrative personnel
and services fee 1,482,342 862,148
1,320,585
Custodian fees 127,845 69,790
64,074
Transfer and dividend
disbursing agent fees and
expenses 63,464 57,131
36,319
Directors'/Trustees' fees 11,801 7,992
10,513
Auditing fees 7,867 5,739
5,257
Legal fees 11,801 4,592
39,348
Portfolio accounting fees 167,182 106,371
136,670
Shareholder services fee-
Institutional Shares - 15,623
3,117,368
Shareholder services fee-
Institutional Service
Shares 1,263,556 807,577
1,263,075
Shareholder services fee-
Institutional Capital
Shares 326,171 331,859
- -
Share registration costs 27,536 23,192
14,017
Printing and postage 15,735 19,350
19,750
Insurance premiums 100,309 56,189
98,879
Miscellaneous 15,735 12,513
10,513
TOTAL EXPENSES 7,555,044 4,667,864
9,640,723
WAIVERS:
Waiver of investment
adviser fee (2,312,353) (1,605,681)
(1,678,829)
Waiver of shareholder
services fee-Institutional
Shares - (15,623)
(3,117,368)
Waiver of shareholder
services fee-Institutional
Capital Shares (195,702) (199,115)
- -
TOTAL WAIVERS (2,508,055) (1,820,419)
(4,796,197)
Net expenses 5,046,989 2,847,445
4,844,526
Net investment income 105,695,543 60,957,645
57,181,371
REALIZED AND UNREALIZED
GAIN ON
INVESTMENTS:
Net realized gain on
investments - -
38,568
Change in net assets
resulting from operations $ 105,695,543 $ 60,957,645 $
57,219,939
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
GOVERNMENT GOVERNMENT OBLIGATIONS
OBLIGATIONS
FUND TAX-MANAGED FUND
SIX MONTHS SIX
MONTHS
ENDED
ENDED
(unaudited) YEAR ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
JANUARY 31, JULY 31,
2000 1999
2000 1999
<S> <C> <C>
<C> <C>
INCREASE (DECREASE) IN
NET
ASSETS
OPERATIONS:
Net investment income $ 178,299,797 $ 305,404,334 $
67,687,430 $ 105,399,317
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (125,282,016) (222,751,323)
(32,376,997) (50,768,000)
Institutional Service
Shares (53,017,781) (82,653,011)
(35,310,433) (54,631,317)
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (178,299,797) (305,404,334)
(67,687,430) (105,399,317)
SHARE
TRANSACTIONS:
Proceeds from sale of
shares 35,603,087,459 51,401,497,598
5,526,772,319 9,394,668,858
Net asset value of shares
issued to shareholders
in payment of
distributions declared 51,056,584 97,236,668
11,210,610 24,328,475
Cost of shares redeemed (34,499,733,881) (50,292,422,340)
(5,140,088,134) (8,806,949,621)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 1,154,410,162 1,206,311,926
397,894,795 612,047,712
Change in net assets 1,154,410,162 1,206,311,926
397,894,795 612,047,712
NET
ASSETS:
Beginning of period 6,585,834,967 5,379,523,041
2,395,967,294 1,783,919,582
End of period $ 7,740,245,129 $ 6,585,834,967 $
2,793,862,089 $ 2,395,967,294
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
MUNICIPAL
OBLIGATIONS FUND
SIX MONTHS
ENDED
(unaudited) PERIOD ENDED
YEAR ENDED
JANUARY 31, JULY 31,
JANUARY 31,
2000 1999 1
1999
<S> <C> <C>
<C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 10,723,813 $ 8,046,126 $
13,575,634
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (7,009,718) (5,706,072)
(9,176,860)
Institutional Service
Shares (1,728,405) (1,210,234)
(2,031,566)
Institutional Capital
Shares (1,985,690) (1,129,820)
(2,367,208)
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (10,723,813) (8,046,126)
(13,575,634)
SHARE
TRANSACTIONS:
Proceeds from sale of
shares 3,627,131,426 3,686,794,227
6,671,442,391
Net asset value of shares
issued to shareholders in
payment of distributions
declared 3,078,152 2,790,181
4,797,681
Cost of shares redeemed (3,563,407,568) (3,640,523,643)
(6,466,730,133)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 66,802,010 49,060,765
209,509,939
Change in net assets 66,802,010 49,060,765
209,509,939
NET
ASSETS:
Beginning of period 535,326,079 486,265,314
276,755,375
End of period $ 602,128,089 $ 535,326,079 $
486,265,314
</TABLE>
1 The fund changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
PRIME CASH
OBLIGATIONS FUND
SIX MONTHS
ENDED
(unaudited) PERIOD ENDED
YEAR ENDED
JANUARY 31, JULY 31,
JANUARY 31,
2000 1999 1
1999
<S> <C> <C>
<C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 105,695,543 $ 85,879,759 $
122,009,606
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (72,721,053) (52,994,564)
(73,059,518)
Institutional Service
Shares (26,072,744) (21,202,105)
(36,684,622)
Institutional Capital
Shares (6,901,746) (11,683,090)
(12,265,466)
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (105,695,543) (85,879,759)
(122,009,606)
SHARE
TRANSACTIONS:
Proceeds from sale of
shares 31,955,436,436 24,795,354,445
33,162,916,740
Net asset value of shares
issued to shareholders in
payment of distributions
declared 45,791,699
35,271,569 55,512,391
Cost of shares redeemed (30,387,022,597) (24,647,235,068)
(32,428,562,553)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 1,614,205,538 183,390,946
789,866,578
Change in net assets 1,614,205,538 183,390,946
789,866,578
NET
ASSETS:
Beginning of period 3,133,700,648 2,950,309,702
2,160,443,124
End of period $ 4,747,906,186 $ 3,133,700,648 $
2,950,309,702
</TABLE>
1 The fund changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
PRIME
VALUE TAX-FREE
OBLIGATIONS
FUND OBLIGATIONS FUND
SIX
MONTHS SIX MONTHS
ENDED ENDED
(unaudited) PERIOD ENDED YEAR
ENDED (unaudited) YEAR ENDED
JANUARY 31, JULY 31, JANUARY
31, JANUARY 31, JULY 31,
2000 1999 1
1999 2000 1999
<S> <C> <C>
<C> <C> <C>
INCREASE (DECREASE) IN
NET
ASSETS
OPERATIONS:
Net investment income $ 60,957,645 $ 57,197,837 $
86,540,164 $ 57,181,371 $ 105,505,939
Net realized gain (loss)
on investments - -
- - 38,568 (30,299)
CHANGE IN NET
ASSETS RESULTING
FROM OPERATIONS 60,957,645 57,197,837
86,540,164 57,219,939 105,475,640
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions from net
investment
income
Institutional Shares (37,407,899) (38,874,779)
(60,707,164) (41,622,998) (76,303,750)
Institutional Service
Shares (16,581,631) (12,570,275)
(19,716,305) (15,558,373) (29,202,189)
Institutional Capital
Shares (6,968,115) (5,752,783)
(6,116,695) - -
CHANGE IN NET ASSETS FROM
DISTRIBUTIONS
TO SHAREHOLDERS (60,957,645) (57,197,837)
(86,540,164) (57,181,371) (105,505,939)
SHARE
TRANSACTIONS:
Proceeds from sale of
shares 17,875,953,483 17,356,187,248
26,516,611,802 8,104,100,858 19,112,974,988
Net asset value of shares
issued to shareholders in
payment of distributions
declared 32,277,704 39,241,753
51,764,190 4,732,626 12,430,534
Cost of shares redeemed (17,723,421,217) (17,433,612,169)
(25,657,179,044) (8,115,960,133) (18,828,314,145)
CHANGE IN NET ASSETS FROM
SHARE TRANSACTIONS 184,809,970 (38,183,168)
911,196,948 (7,126,649) 297,091,377
Change in net assets 184,809,970 (38,183,168)
911,196,948 (7,088,081) 297,061,078
NET
ASSETS:
Beginning of period 2,131,209,733 2,169,392,901
1,258,195,953 3,517,347,262 3,220,286,184
End of period $ 2,316,019,703 $ 2,131,209,733 $
2,169,392,901 $ 3,510,259,181 $ 3,517,347,262
Undistributed net
investment income included
in net assets at end of
period $ - $ - $
- - $ 70,408 $ 70,408
</TABLE>
1 The fund changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
Financial Highlights - Institutional Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
NET ASSET
DISTRIBUTIONS
VALUE, NET FROM NET
DISTRIBUTIONS
BEGINNING INVESTMENT INVESTMENT
FROM NET
YEAR ENDED JULY 31 OF PERIOD INCOME INCOME
REALIZED GAINS
<S> <C> <C> <C>
<C>
GOVERNMENT OBLIGATIONS FUND
1995 $1.00 0.05
(0.05) -
1996 $1.00 0.05
(0.05) -
1997 $1.00 0.05
(0.05) -
1998 $1.00 0.05
(0.05) -
1999 $1.00 0.05
(0.05) -
2000 3 $1.00 0.03
(0.03) -
GOVERNMENT OBLIGATIONS TAX-MANAGED FUND
1995 5 $1.00 0.01
(0.01) -
1996 $1.00 0.05
(0.05) -
1997 $1.00 0.05
(0.05) -
1998 $1.00 0.05
(0.05) -
1999 $1.00 0.05
(0.05) -
2000 3 $1.00 0.03
(0.03) -
MUNICIPAL OBLIGATIONS FUND
1995 $1.00 0.03
(0.03) -
1996 $1.00 0.04
(0.04) (0.00) 6
1997 7 $1.00 0.04
(0.04) -
1998 $1.00 0.04
(0.04) -
1999 $1.00 0.03
(0.03) -
1999 8 $1.00 0.02
(0.02) -
2000 3 $1.00 0.02
(0.02) -
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown.
3 Six months ended January 31, 2000 (unaudited).
4 Computed on an annualized basis.
5 Reflects operations for the period from June 2, 1995 (date of initial public
investment) to July 31, 1995.
6 Amount represents less than ($0.01) per share.
7 Federated Investment Management Company, formerly Federated Management, became
the fund's investment adviser on November 15, 1996. Prior to November 15, 1996,
Lehman Brothers Global Asset Management served as the fund's investment adviser.
8 The fund changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET NET
ASSETS,
NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END
OF PERIOD
END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000
OMITTED)
<S> <C> <C> <C> <C> <C>
$1.00 5.57% 0.20% 5.58% 0.40% $
1,926,516
$1.00 5.55% 0.20% 5.41% 0.36% $
2,182,999
$1.00 5.43% 0.20% 5.32% 0.35% $
3,293,392
$1.00 5.59% 0.20% 5.45% 0.35% $
3,707,106
$1.00 5.04% 0.20% 4.92% 0.34% $
4,498,581
$1.00 2.68% 0.20% 4 5.29% 4 0.34% 4 $
5,359,860
$1.00 0.94% 0.20% 4 5.78% 4 0.65% 4
$ 3,070
$1.00 5.50% 0.17% 5.28% 0.44% $
199,243
$1.00 5.35% 0.20% 5.26% 0.38% $
510,683
$1.00 5.49% 0.20% 5.35% 0.37% $
953,268
$1.00 5.00% 0.20% 4.88% 0.35% $
1,066,412
$1.00 2.67% 0.20% 4 5.28% 4 0.35% 4 $
1,299,312
$1.00 3.04% 0.15% 2.86% 0.16%
$ 93,595
$1.00 4.03% 0.18% 3.95% 0.12% $
135,120
$1.00 3.56% 0.18% 3.48% 0.20% $
159,561
$1.00 3.68% 0.18% 3.57% 0.23% $
217,838
$1.00 3.53% 0.18% 3.41% 0.41% $
303,899
$1.00 1.59% 0.18% 4 3.17% 4 0.18% 4 $
354,034
$1.00 1.80% 0.18% 4 3.49% 4 0.15% 4 $
385,012
</TABLE>
Financial Highlights - Institutional Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
NET ASSET DISTRIBUTIONS
VALUE, NET FROM NET
BEGINNING INVESTMENT INVESTMENT
YEAR ENDED JULY 31 OF PERIOD INCOME INCOME
<S> <C> <C> <C>
PRIME CASH OBLIGATIONS FUND
1995 $1.00 0.04 (0.04)
1996 $1.00 0.06 (0.06)
1997 3 $1.00 0.05 (0.05)
1998 $1.00 0.06 (0.06)
1999 $1.00 0.05 (0.05)
1999 4 $1.00 0.02 (0.02)
2000 6 $1.00 0.03 (0.03)
PRIME VALUE OBLIGATIONS FUND
1995 $1.00 0.04 (0.04)
1996 $1.00 0.06 (0.06)
1997 3 $1.00 0.05 (0.05)
1998 $1.00 0.06 (0.06)
1999 $1.00 0.05 (0.05)
1999 4 $1.00 0.02 (0.02)
2000 6 $1.00 0.03 (0.03)
TAX-FREE OBLIGATIONS FUND
1995 $1.00 0.04 (0.04)
1996 $1.00 0.03 (0.03)
1997 $1.00 0.03 (0.03)
1998 $1.00 0.03 (0.03)
1999 $1.00 0.03 (0.03)
2000 6 $1.00 0.02 (0.02)
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown.
3 Federated Investment Management Company, formerly Federated Management, became
the fund's investment adviser on November 15, 1996. Prior to November 15, 1996,
Lehman Brothers Global Asset Management served as the fund's investment adviser.
4 The fund changed its fiscal year-end from January 31 to July 31.
5 Computed on an annualized basis.
6 Six months ended January 31, 2000 (unaudited).
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET
NET ASSETS,
NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/
END OF PERIOD
END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2
(000 OMITTED)
<S> <C> <C> <C> <C>
<C>
$1.00 4.52% 0.12% 4.30% 0.13% $
1,538,802
$1.00 6.08% 0.17% 5.90% 0.08% $
3,919,186
$1.00 5.38% 0.18% 5.25% 0.14% $
1,572,912
$1.00 5.61% 0.18% 5.44% 0.12% $
1,100,620
$1.00 5.50% 0.18% 5.29% 0.37% $
1,825,266
$1.00 2.42% 0.18% 5 4.81% 5 0.13% 5 $
1,929,887
$1.00 2.74% 0.18% 5 5.47% 5 0.12% 5 $
3,552,028
$1.00 4.51% 0.09% 4.20% 0.16% $
1,470,317
$1.00 6.10% 0.17% 5.93% 0.08% $
2,754,390
$1.00 5.41% 0.16% 5.29% 0.15%
$ 387,994
$1.00 5.68% 0.14% 5.59% 0.18%
$ 865,742
$1.00 5.53% 0.16% 5.37% 0.40% $
1,474,123
$1.00 2.44% 0.16% 5 4.87% 5 0.15% 5 $
1,147,717
$1.00 2.73% 0.16% 5 5.44% 5 0.14% 5 $
1,464,772
$1.00 3.64% 0.20% 3.62% 0.39% $
1,295,458
$1.00 3.55% 0.20% 3.46% 0.36% $
1,514,979
$1.00 3.49% 0.20% 3.43% 0.35% $
1,474,180
$1.00 3.50% 0.20% 3.45% 0.35% $
2,279,770
$1.00 3.14% 0.20% 3.08% 0.35% $
2,461,697
$1.00 1.69% 0.20% 5 3.34% 5 0.35% 5 $
2,514,173
</TABLE>
Financial Highlights - Institutional Service Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
NET ASSET DISTRIBUTIONS
VALUE, NET FROM NET
BEGINNING INVESTMENT INVESTMENT
YEAR ENDED JULY 31 OF PERIOD INCOME INCOME
<S> <C> <C> <C>
GOVERNMENT OBLIGATIONS FUND
1995 3 $1.00 0.05 (0.05)
1996 $1.00 0.05 (0.05)
1997 $1.00 0.05 (0.05)
1998 $1.00 0.05 (0.05)
1999 $1.00 0.05 (0.05)
2000 5 $1.00 0.03 (0.03)
GOVERNMENT OBLIGATIONS TAX-MANAGED FUND
1995 6 $1.00 0.01 (0.01)
1996 $1.00 0.05 (0.05)
1997 $1.00 0.05 (0.05)
1998 $1.00 0.05 (0.05)
1999 $1.00 0.05 (0.05)
2000 5 $1.00 0.03 (0.03)
MUNICIPAL OBLIGATIONS FUND
1997 7 $1.00 0.03 (0.03)
1998 $1.00 0.03 (0.03)
1999 $1.00 0.03 (0.03)
1999 8 $1.00 0.01 (0.01)
2000 5 $1.00 0.02 (0.02)
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown.
3 Reflects operations for the period from August 1, 1994 (date of initial public
investment) to July 31, 1995. For the period from the effective date, July 5,
1994 to July 31, 1994, all net investment income was distributed to the fund's
Adviser.
4 Computed on an annualized basis.
5 Six months ended January 31, 2000 (unaudited).
6 Reflects operations for the period from May 30, 1995 (date of initial public
investment) to July 31, 1995.
7 Federated Investment Management Company, formerly Federated Management, became
the fund's investment adviser on November 15, 1996. Prior to November 15, 1996,
Lehman Brothers Global Asset Management served as the fund's investment adviser.
8 The fund changed its fiscal year-end from January 31 to July 31.
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET
NET ASSETS,
NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/
END OF PERIOD
END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2
(000 OMITTED)
<S> <C> <C> <C> <C>
<C>
$1.00 5.31% 0.45% 4 5.63% 4 0.15% 4
$ 339,105
$1.00 5.29% 0.45% 5.14% 0.11%
$ 702,274
$1.00 5.16% 0.45% 5.06% 0.10%
$ 936,869
$1.00 5.33% 0.45% 5.23% 0.10% $
1,672,417
$1.00 4.78% 0.45% 4.67% 0.09% $
2,087,254
$1.00 2.55% 0.45% 4 5.04% 4 0.09% 4 $
2,380,385
$1.00 0.95% 0.45% 4 5.55% 4 0.40% 4
$ 76,165
$1.00 5.23% 0.42% 5.00% 0.19% $
322,698
$1.00 5.09% 0.45% 4.97% 0.13%
$ 421,095
$1.00 5.23% 0.45% 5.11% 0.12%
$ 830,652
$1.00 4.74% 0.45% 4.63% 0.10% $
1,329,556
$1.00 2.55% 0.45% 4 5.02% 4 0.10% 4 $
1,494,550
$1.00 3.31% 0.43% 3.08% 0.21%
$ 0.30
$1.00 3.43% 0.43% 3.48% 0.23%
$ 41,216
$1.00 3.27% 0.43% 3.22% 0.16%
$ 67,832
$1.00 1.47% 0.43% 4 2.98% 4 0.18% 4
$ 106,684
$1.00 1.67% 0.43% 4 3.33% 4 0.15% 4
$ 156,814
</TABLE>
Financial Highlights -Institutional Service Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
NET ASSET DISTRIBUTIONS
VALUE, NET FROM NET
BEGINNING INVESTMENT INVESTMENT
YEAR ENDED JULY 31 OF PERIOD INCOME INCOME
<S> <C> <C> <C>
PRIME CASH OBLIGATIONS FUND
1995 $1.00 0.04 (0.04)
1996 $1.00 0.06 (0.06)
1997 3 $1.00 0.05 (0.05)
1998 $1.00 0.05 (0.05)
1999 $1.00 0.05 (0.05)
1999 4 $1.00 0.02 (0.02)
2000 6 $1.00 0.03 (0.03)
PRIME VALUE OBLIGATIONS FUND
1995 $1.00 0.04 (0.04)
1996 $1.00 0.06 (0.06)
1997 3 $1.00 0.05 (0.05)
1998 $1.00 0.05 (0.05)
1999 $1.00 0.05 (0.05)
1999 4 $1.00 0.02 (0.02)
2000 6 $1.00 0.03 (0.03)
TAX-FREE OBLIGATIONS FUND
1995 $1.00 0.03 (0.03)
1996 $1.00 0.03 (0.03)
1997 $1.00 0.03 (0.03)
1998 $1.00 0.03 (0.03)
1999 $1.00 0.03 (0.03)
2000 6 $1.00 0.02 (0.02)
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown.
3 Federated Investment Management Company, formerly Federated Management, became
the fund's investment adviser on November 15, 1996. Prior to November 15, 1996,
Lehman Brothers Global Asset Management served as the fund's investment adviser.
4 The fund changed its fiscal year-end from January 31 to July 31.
5 Computed on an annualized basis.
6 Six months ended January 31, 2000 (unaudited).
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET
NET ASSETS,
NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/
END OF PERIOD
END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2
(000 OMITTED)
<S> <C> <C> <C> <C>
<C>
$1.00 4.21% 0.37% 4.05% 0.13% $
342,673
$1.00 5.83% 0.42% 5.65% 0.08% $
324,474
$1.00 5.11% 0.43% 5.02% 0.14% $
412,762
$1.00 5.34% 0.43% 5.29% 0.12% $
668,665
$1.00 5.23% 0.43% 5.09% 0.12% $
894,851
$1.00 2.29% 0.43% 5 4.63% 5 0.13% 5 $
957,998
$1.00 2.61% 0.43% 5 5.16% 5 0.12% 5 $
941,679
$1.00 4.26% 0.34% 3.95% 0.16%
$ 21,739
$1.00 5.84% 0.42% 5.68% 0.08%
$ 20,372
$1.00 5.15% 0.41% 5.05% 0.16%
$ 18,415
$1.00 5.41% 0.39% 5.32% 0.17% $
325,390
$1.00 5.27% 0.41% 5.13% 0.15% $
495,172
$1.00 2.31% 0.41% 5 4.64% 5 0.15% 5 $
707,737
$1.00 2.61% 0.41% 5 5.13% 5 0.14% 5 $
644,807
$1.00 3.39% 0.45% 3.48% 0.14% $
252,016
$1.00 3.29% 0.45% 3.22% 0.11% $
406,408
$1.00 3.24% 0.45% 3.19% 0.10% $
587,983
$1.00 3.25% 0.45% 3.20% 0.10% $
940,516
$1.00 2.89% 0.45% 2.83% 0.10% $
1,055,650
$1.00 1.57% 0.45% 5 3.08% 5 0.10% 5 $
996,086
</TABLE>
Notes to Financial Statements
January 31, 2000 (unaudited)
ORGANIZATION
Money Market Obligations Trust, (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of 40 portfolios. The financial
statements of the following portfolios (individually referred to as the "Fund",
or collectively as the "Funds") are presented herein:
<TABLE>
<CAPTION>
PORTFOLIO NAME DIVERSIFICATION CLASS OF
SHARES INVESTMENT OBJECTIVE
<S> <C>
<C> <C>
Government Obligations Fund diversified Institutional
Shares
Institutional Service
Shares To provide current income
consistent with stability
of principal.
Government Obligations Tax-Managed Fund non-diversified Institutional
Shares
Institutional Service
Shares To provide current income
consistent with stability
of principal and
liquidity.
Municipal Obligations Fund diversified Institutional
Shares
Institutional Service
Shares
Institutional Capital
Shares To provide current income
exempt from federal
regular income tax
consistent with stability
of principal.
Prime Cash Obligations Fund diversified Institutional
Shares
Institutional Service
Shares
Institutional Capital
Shares To provide current income
consistent with stability
of principal and
liquidity.
Prime Value Obligations Fund diversified Institutional
Shares
Institutional Service
Shares
Institutional Capital
Shares To provide current income
consistent with stability
of principal and
liquidity.
Tax-Free Obligations Fund non-diversified Institutional
Shares
Institutional Service
Shares To provide dividend income
exempt from federal
regular income tax
consistent with stability
of principal.
</TABLE>
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
The Funds use the amortized cost method to value their portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Funds 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 Funds 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.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' 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 Funds could receive less
than the repurchase price on the sale of collateral securities. The Funds, along
with other affiliated investment companies, may utilize a joint trading account
for the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at fair market value. The Funds offer multiple classes of shares,
which differ in their respective distribution and service fees. All shareholders
bear the common expenses of the Funds based on average daily net assets of each
class, without distinction between share classes. Dividends are declared
separately for each class. No class has preferential dividend rights;
differences in per share dividend rates are generally due to differences in
separate class expenses.
FEDERAL TAXES
It is the Funds' policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provisions for federal tax
are necessary.
At July 31, 1999, the Tax-Free Obligations Fund, for federal tax purposes, had a
capital loss carryforward of $43,005, which will reduce the Fund's taxable
income arising from future net realized gain on investments, if any, to the
extent permitted by the Code, and thus will reduce the amount of the
distributions to shareholders which would otherwise be necessary to relieve the
Fund of any liability for federal tax. Pursuant to the code, such capital loss
carryforward will expire as follows:
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
<S> <C>
2005 $17,686
2007 25,319
</TABLE>
Additionally, for the Tax-Free Obligations Fund, net capital losses of $4,980
attributable to security transactions incurred after October 31, 1998, are
treated as arising on August 1, 1999, the first day of the Fund's next taxable
year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Funds may engage in when-issued or delayed delivery transactions. The Funds
record when-issued securities on the trade date and 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. Losses may occur on these transactions due to changes in market conditions
or the failure of counterparties to perform under the contract.
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 Funds 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.
CHANGE IN FISCAL YEAR
Municipal Obligations Fund, Prime Cash Obligations Fund and Prime Value
Obligations Fund have changed their fiscal year-ends from January 31 to July 31.
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 a trade date basis.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
GOVERNMENT OBLIGATIONS JANUARY 31, JULY 31,
FUND 2000 1999
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 20,862,025,312 36,151,964,653
Shares issued to
shareholders in payment of
distributions declared 30,960,744 61,202,566
Shares redeemed (20,031,706,577) (35,421,691,944)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 861,279,479 791,475,275
INSTITUTIONAL SERVICE
SHARES:
Shares sold 14,741,062,147 15,249,532,945
Shares issued to
shareholders in payment of
distributions declared 20,095,840 36,034,102
Shares redeemed (14,468,027,304) (14,870,730,396)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 293,130,683 414,836,651
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 1,154,410,162 1,206,311,926
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
GOVERNMENT OBLIGATIONS JANUARY 31, JULY 31,
TAX-MANAGED FUND 2000 1999
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 2,156,226,826 3,078,610,269
Shares issued to
shareholders in payment of
distributions declared 2,390,929 8,784,273
Shares redeemed (1,925,717,052) (2,974,250,945)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 232,900,703 113,143,597
INSTITUTIONAL SERVICE
SHARES:
Shares sold 3,370,545,493 6,316,058,589
Shares issued to
shareholders in payment of
distributions declared 8,819,681 15,544,202
Shares redeemed (3,214,371,082) (5,832,698,676)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 164,994,092 498,904,115
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 397,894,795 612,047,712
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31,
MUNICIPAL OBLIGATIONS FUND 2000 1999 1 1999
<S> <C> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 2,864,665,365 3,220,798,056 5,212,142,622
Shares issued to
shareholders in payment of
distributions declared 1,141,383 1,004,656 1,302,615
Shares redeemed (2,834,828,428) (3,171,653,273) (5,127,376,711)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 30,978,320 50,149,439 86,068,526
INSTITUTIONAL SERVICE
SHARES:
Shares sold 314,612,990 217,446,882 422,524,378
Shares issued to
shareholders in payment of
distributions declared 1,103,221 1,080,682 1,503,612
Shares redeemed (265,585,981) (179,672,680) (397,415,401)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 50,130,230 38,854,884 26,612,589
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 447,853,071 248,572,618 1,036,775,391
Shares issued to
shareholders in payment of
distributions declared 833,548 704,843 1,991,454
Shares redeemed (462,993,159) (289,197,690) (941,938,021)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS (14,306,540) (39,920,229) 96,828,824
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 66,802,010 49,084,094 209,509,939
</Table
1 The Fund changed its fiscal year-end from January 31 to July 31.
SIX MONTHS
ENDED PERIOD ENDED YEAR
ENDED
PRIME CASH OBLIGATIONS JANUARY 31, JULY 31, JANUARY 31,
FUND 2000 1999 1
1999
INSTITUTIONAL
SHARES:
Shares sold 25,812,285,601 18,081,938,275
23,532,773,371
Shares issued to
shareholders in payment of
distributions declared 37,802,892 26,581,479
44,134,116
Shares redeemed (24,227,947,440) (18,003,898,560)
(22,852,260,827)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 1,622,141,053 104,621,194
724,646,660
INSTITUTIONAL SERVICE
SHARES:
Shares sold 5,043,773,891 4,467,896,195
7,290,975,466
Shares issued to
shareholders in payment of
distributions declared 5,359,279 3,350,044
5,275,668
Shares redeemed (5,065,452,343) (4,408,099,082)
(7,070,064,987)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (16,319,173) 63,147,157
226,186,147
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 1,099,376,944 2,245,519,975
2,339,167,903
Shares issued to
shareholders in payment of
distributions declared 2,629,528 5,340,046
6,102,607
Shares redeemed (1,093,622,814) (2,235,237,426)
(2,506,236,739)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS 8,383,658 15,622,595
(160,966,229)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 1,614,205,538 183,390,946
789,866,578
</TABLE>
1 The Fund changed its fiscal year-end from January 31 to July 31.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED YEAR
ENDED
PRIME VALUE OBLIGATIONS JANUARY 31, JULY 31, JANUARY
31,
FUND 2000 1999 1
1999
<S> <C> <C>
INSTITUTIONAL
SHARES:
Shares sold 11,233,594,319 11,553,124,074
19,781,464,858
Shares issued to
shareholders in payment of
distributions declared 19,884,976 27,134,621
34,346,178
Shares redeemed (10,936,424,092) (11,906,664,823)
(19,207,430,021)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 317,055,203 (326,406,128)
608,381,015
INSTITUTIONAL SERVICE
SHARES:
Shares sold 5,683,567,035 4,750,407,849
5,129,107,787
Shares issued to
shareholders in payment of
distributions declared 8,972,651 8,335,094
12,725,748
Shares redeemed (5,755,469,263) (4,546,178,066)
(4,972,051,133)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (62,929,577) 212,564,877
169,782,402
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 958,792,129 1,052,655,325
1,606,039,157
Shares issued to
shareholders in payment of
distributions declared 3,420,077 3,772,038
4,692,264
Shares redeemed (1,031,527,862) (980,769,280)
(1,477,697,890)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS (69,315,656) 75,658,083
133,033,531
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 184,809,970 (38,183,168)
911,196,948
</TABLE>
1 The Fund changed its fiscal year-end from January 31 to July 31.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
TAX-FREE OBLIGATIONS FUND 2000 1999
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 6,397,226,285 15,059,862,985
Shares issued to
shareholders in payment of
distributions declared 3,225,276 9,142,522
Shares redeemed (6,348,001,440) (14,887,054,802)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 52,450,121 181,950,705
INSTITUTIONAL SERVICE
SHARES:
Shares sold 1,706,874,573 4,053,112,003
Shares issued to
shareholders in payment of
distributions declared 1,507,350 3,288,012
Shares redeemed (1,767,958,693) (3,941,259,343)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (59,576,770) 115,140,672
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (7,126,649) 297,091,377
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Funds' investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
the percentage of the Funds' average daily net assets as follows:
<TABLE>
<CAPTION>
INVESTMENT ADVISER
FUND FEE PERCENTAGE
<S> <C>
Government Obligations Fund 0.20%
Government Obligations Tax-Managed Fund 0.20%
Municipal Obligations Fund 0.20%
Prime Cash Obligations Fund 0.20%
Prime Value Obligations Fund 0.20%
Tax-Free Obligations Fund 0.20%
</TABLE>
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 Funds with administrative personnel and services. The
fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Funds will pay FSSC up to 0.25% of average daily
net assets of each Fund 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 Funds. 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 Funds' accounting records for which it receives a fee. The
fee is based on the level of each Fund's average daily net assets for the
period, plus out-of-pocket expenses.
INTERFUND TRANSACTIONS
During the period ended January 31, 2000, the Funds engaged in purchase and sale
transactions with funds that have a common investment adviser (or affiliated
investment advisers), common Directors/Trustees, and/or common Officers. These
purchase and sale transactions complied with Rule 17a-7 under the Act. Interfund
transactions were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
<S> <C> <C>
Government Obligations Tax-Managed Fund $ 9,988,467 $ -
Municipal Obligations Fund $ 1,047,410,000 $ 1,359,638,000
Prime Cash Obligations Fund $ - $ 5,000,000
Tax-Free Obligations Fund $ 2,870,922,000 $ 2,964,635,160
</TABLE>
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the funds' prospectuses which contain facts
concerning each fund's objective and policies, management fees, expenses, and
other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Money Market Obligations Trust
Institutional Shares
Institutional Service Shares
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
January 31, 2000
[Graphic]
Federated
Money Market Obligations Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N104 Cusip 60934N625
Cusip 60934N807 Cusip 60934N617
Cusip 60934N856 Cusip 60934N583
Cusip 60934N849 Cusip 60934N575
Cusip 60934N658 Cusip 60934N401
Cusip 60934N641 Cusip 60934N880
25244 (3/00)
[Graphic]
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 fund's fiscal year, which is the
six-month reporting period ended January 31, 2000. It begins with an investment
review on the short-term market by the fund's portfolio manager. Following the
investment review are the fund's portfolio of investments and financial
statements.
In Money Market Trust, your ready cash is working to pursue competitive daily
income and to provide the additional advantages of daily liquidity and stability
of principal. 1 At the end of the reporting period, 53% of the fund's $390
million portfolio was invested in high-quality commercial paper. The remainder
was invested in variable-rate obligations, short-term notes, loan participation
securities, a repurchase agreement, a municipal bond and a certificate of
deposit.
Over the six-month reporting period, dividends paid to shareholders totaled
$0.03 per share.
Thank you for your confidence in the daily earning power of Money Market Trust.
We welcome your comments and suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
the money market funds seeks to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in these funds.
Investment Review
Money Market 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.
The past six months represented another banner period for economic growth in the
U.S. Gross domestic product growth averaged 5.5% in 1999, with the economy
gaining steam in the second half of the year. The outlook for 2000 is one of
continuing strength and above trend performance based on a phenomenal consumer
sentiment. The consumer has kept this year's performance on steady ground, but
the industrial sector also kept pace through the fourth quarter. Although
industry did not out perform in the fourth quarter, it held steady, letting the
consumer engine pull the overall economy ahead. With an overall unemployment
rate of just 4.1%, it is difficult to see what could derail the consumer.
Inflation concerns retreated from their spring heights to rather mundane levels.
For the entire reporting period, the consumer price index increased just 2.90%,
while the producer price index rose 3.50%, both on an annualized basis. Wages
also increased throughout the year, growing at an overall rate of 4.00%
annualized during the second half of 1999. However, concern remains that the
pool of labor available may cause wage pressures to escalate in the near term.
The Federal Reserve Board (the "Fed") continued to act preemptively to quell
these inflationary threats and raised the target rate for Federal Funds from
5.00% to 5.25% on August 24, 1999, and then again from 5.25% to 5.50% on
November 16, 1999. The market had already anticipated such actions, resulting in
a much steeper money market yield curve throughout most of the reporting period.
Thirty day commercial paper started the period at 5.11% on July 1, 1999, and
then basically traded steadily up to the 5.50% level through the end of
November. Seasonal and Y2K effects then took hold and caused the 30-day
commercial paper rate to spike as high as 6.46% in December before retreating to
the 5.78% level at the end of the reporting period.
The target average maturity range for the fund was decreased from 45- 55 days to
40-50 days on January 10, 2000, reflecting the Fed's concerns about
overzealousness in the stock markets and potential inflationary threats. 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 January 31, 2000, the net assets of the fund
increased from $380.4 to $390.1 million while the 7-day net yield increased from
4.72% to 5.43%. 1 The effective average maturity of the Fund on January 31, 2000
was 44 days.
1 Past performance is no guarantee of future results. Yield will vary. Yields
quoted for money market funds most closely reflect the fund's current earning.
Last Meeting of Shareholders
A special meeting of Shareholders of Money Market Trust (the "Former Fund"), a
portfolio of Money Market Obligations Trust (the "Trust") was held on November
17, 1999. On September 20, 1999, the record date for shareholders voting at the
meeting, there were 388,186,446 total outstanding shares. The following items
were considered by shareholders and the results of their voting were as follows:
AGENDA ITEM 1
Election of Trustees: 1
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
John F. Cunningham 273,622,230 158,322
J. Christopher Donahue 273,519,174 261,378
Charles F. Mansfield, Jr. 273,622,230 158,322
John S. Walsh 273,580,818 199,734
</TABLE>
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Thomas G. Bigley, John T. Conroy, Nicholas P. Constantakis,
Lawrence D. Ellis, M.D., Peter E. Madden, John E. Murray, Jr., J.D., S.J.D.
and Marjorie P. Smuts.
AGENDA ITEM 2
To approve amendments to, and a restatement of, the Former Fund's declaration of
trust:
(a) To approve an amendment and restatement of the Former Fund's Declaration of
Trust to require the approval by a majority of the outstanding voting shares in
the event of the sale or conveyance of the assets of the Former Fund to another
trust or corporation.
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
273,343,321 113,260 288,222
</TABLE>
(b) To amend and restate the Former Fund's declaration of trust to permit the
Board of Trustees to liquidate assets of the Former Fund, and distribute the
proceeds of such assets to the holders of such shares representing such
interests, without seeking shareholder approval.
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
271,713,104 1,690,667 341,032
</TABLE>
AGENDA ITEM 3
To approve a proposed agreement and plan of reorganization between the Former
Fund and the Trust, on behalf of its series, Money Market Trust ( the "Fund"),
whereby the Fund would acquire all of the assets of the Former Fund in exchange
for shares of the Fund to be distributed pro rata by the Former Fund to its
shareholders in complete liquidation and termination of the Former Fund:
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
272,658,601 566,074 520,128
</TABLE>
Portfolio of Investments
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM NOTES-13.1%
BANKING-3.4% $ 13,200,000 Bank One, Illinois, N.A.,
6.025% - 6.200%,
10/10/2000 - 11/13/2000 $ 13,194,938
BROKERAGE-8.7%
2,000,000 1 Goldman Sachs Group, Inc.,
5.900%, 3/24/2000 2,000,000
32,000,000 Goldman Sachs Group, Inc.,
6.000% - 6.010%, 3/14/2000
- 4/26/2000 32,000,000
TOTAL 34,000,000
FINANCE - AUTOMOTIVE-0.4%
618,900 Honda Auto Lease Trust
1999-A, Class A-1, 5.445%,
8/15/2000 618,900
786,212 Toyota Auto Receivables
1999-A, Owner Trust, Class
1, 5.365%, 8/11/2000 786,212
TOTAL 1,405,112
FINANCE - EQUIPMENT-0.6%
587,062 Caterpillar Financial
Asset Trust 1999-A, Class
1, 5.365%, 7/25/2000 587,062
1,306,951 Copelco Capital Funding
Trust 1999-B, Class A-1,
5.937%, 10/18/2000 1,306,951
375,981 Heller Equipment Asset
Receivables Trust 1999-1,
Class A-1, 4.948%,
5/13/2000 375,981
176,431 Navistar Financial 1999-A
Owner Trust, Class A-1,
5.003%, 6/15/2000 176,431
TOTAL 2,446,425
INSURANCE-0.0%
1,000 Americredit Automobile
Receivables Trust 2000-A,
Class A-1, 6.040%,
2/5/2001 1,000
TOTAL SHORT-TERM NOTES 51,047,475
CERTIFICATES OF DEPOSIT-
2.1%
BANKING-2.1%
8,000,000 BankAmerica, N.A., 5.260%,
2/1/2000 8,000,000
COMMERCIAL PAPER-53.3% 2
BANKING-25.8%
2,000,000 Asset Securitization
Cooperative Corp., 5.750%,
2/24/2000 1,992,653
10,000,000 Benedictine Health System,
(Harris Trust & Savings
Bank, Chicago LOC),
6.125%, 3/9/2000 9,937,049
19,611,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
Support Agreement), 5.870%
- 5.950%, 2/22/2000 -
4/17/2000 19,444,839
16,955,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.700% - 5.760%,
2/22/2000 - 3/6/2000 16,883,915
19,455,000 PREFCO-Preferred
Receivables Funding Co.,
5.670% - 5.750%, 2/22/2000
- 3/7/2000 19,381,521
7,000,000 Park Avenue Receivables
Corp., 5.900%, 2/10/2000 6,989,675
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued
2
BANKING-CONTINUED
$ 12,200,000 Receivables Capital Corp.,
5.680% - 5.900%, 2/9/2000 -
4/20/2000 $ 12,067,751
14,000,000 Three Rivers Funding
Corp., 5.660%, 2/10/2000 13,980,190
TOTAL 100,677,593
BROKERAGE-7.3%
10,000,000 Morgan Stanley, Dean
Witter & Co., 5.850%,
4/17/2000 9,876,500
19,000,000 Salomon Smith Barney
Holdings, Inc., 5.850%,
4/3/2000 18,808,575
TOTAL 28,685,075
FINANCE - AUTOMOTIVE-1.3%
5,000,000 General Motors Acceptance
Corp., 5.250%, 3/6/2000 4,975,208
FINANCE - COMMERCIAL-11.6%
20,000,000 CIT Group, Inc., 5.840%,
4/27/2000 19,720,978
20,000,000 General Electric Capital
Corp., 4.950% - 5.920%,
2/4/2000 - 5/12/2000 19,842,578
5,800,000 Sheffield Receivables
Corp., 5.720% - 5.950%,
2/11/2000 - 2/22/2000 5,785,699
TOTAL 45,349,255
INSURANCE-7.3%
11,700,000 CXC, Inc., 5.870%,
4/7/2000 - 4/28/2000 11,536,586
17,000,000 Marsh USA, Inc., 5.780% -
5.850%, 2/16/2000 -
7/28/2000 16,823,834
TOTAL 28,360,420
TOTAL COMMERCIAL PAPER 208,047,551
LOAN PARTICIPATION-5.4%
FINANCE - AUTOMOTIVE-1.6%
6,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
5.620% - 5.820%, 2/3/2000 -
2/22/2000 6,000,000
FINANCE - EQUIPMENT-3.8% 15,000,000 Pitney Bowes Credit Corp.,
5.809%, 2/10/2000 14,978,325
TOTAL LOAN PARTICIPATION 20,978,325
MUNICIPALS-1.7%
6,800,000 Bergen County, NJ
Improvement Authority,
Bergen Regional Medical
Center Project, (Series
1999-A), (Guaranteed by
Bergen County, NJ
Improvement Authority),
5.330%, 3/16/2000 6,800,000
VARIABLE RATE OBLIGATIONS-
22.7% 3
BANKING-12.1%
3,700,000 500 South Front St. LP,
Series A, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 3,700,000
3,800,000 Barker Property Management
LLC, (Series 1998),
(Wachovia Bank of NC, N.A.,
Winston- Salem LOC),
5.820%, 2/2/2000 3,800,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE OBLIGATIONS-
continued 3
BANKING-CONTINUED $ 3,500,000 Chemi-Trol Chemical Co.,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 $ 3,500,000
4,500,000 Comerica Bank, 5.791%,
2/9/2000 4,497,954
6,000,000 Economic Development
Partnership of Alabama,
Inc., (Series 1998),
(Amsouth Bank N.A.,
Birmingham LOC), 6.160%,
2/3/2000 6,000,000
2,000,000 Bethesda Healthcare, Inc.,
(Series 1999), (Firstar
Bank, N.A., Cincinnati
LOC), 5.900%, 2/3/2000 2,000,000
10,400,000 Home City Ice Co. & H.C.
Transport, (Series 2000),
(Firstar Bank, N.A.,
Cincinnati LOC), 5.930%,
2/3/2000 10,400,000
2,000,000 Kent Capital LLC, (Series
1999), (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 2,000,000
1,900,000 Scranton Times LP, (PNC
Bank, N.A. LOC), 5.810%,
8/30/2000 1,900,000
5,000,000 Three Rivers Funding
Corp., 5.880%, 2/17/2000 5,000,000
4,300,000 Wildcat Management Co.,
Inc., (Series 1999),
(Firstar Bank, N.A.,
Cincinnati LOC), 5.900%,
2/3/2000 4,300,000
TOTAL 47,097,954
BROKERAGE-2.3%
9,200,000 Morgan Stanley, Dean
Witter & Co., 5.830% -
5.880%, 2/4/2000 9,200,000
ELECTRICAL EQUIPMENT-0.9%
3,655,000 Alabama State IDA, General
Electric Project, (General
Electric Co. LOC),
5.750%, 2/3/2000 3,655,000
FINANCE - AUTOMOTIVE-1.2%
4,600,000 General Motors Acceptance
Corp., 5.830%, 2/1/2000 4,600,000
FINANCE - EQUIPMENT-2.6%
10,000,000 Deere (John) Capital
Corp., 6.230%, 2/1/2000 10,001,614
INSURANCE-3.6%
4,000,000 Albuquerque, NM, (Series
2000 A), (Insured by MBIA),
5.730%, 2/2/2000 4,000,000
4,000,000 1 Allstate Life Insurance
Co., 6.113% - 6.616%,
2/1/2000 4,000,000
3,000,000 1 Jackson National Life
Insurance Co., 5.900%,
2/22/2000 3,000,000
3,000,000 Security Life of Denver
Insurance Co., 6.359%,
2/10/2000 3,000,000
TOTAL 14,000,000
TOTAL VARIABLE RATE
OBLIGATIONS 88,554,568
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENT-1.6%
4
$ 6,300,000 Bank of America, 5.800%,
dated 1/31/2000, due
2/1/2000 $ 6,300,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 389,727,919
</TABLE>
1 Denotes a security which is subject to restrictions on resale under federal
securities laws. At January 31, 2000, these securities amounted to $9,000,000,
which represents 2.3% of net assets.
2 Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
3 Current rate and next reset date shown.
4 The repurchase agreement is collateralized fully by U.S. Treasury or
government agency obligations based on market prices at the date of the
portfolio. The investment in the repurchase agreement is through participation
in joint accounts with other Federated funds.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($390,060,690) as of January 31, 2000.
The following acronyms are used throughout this portfolio:
IDA -Industrial Development Authority
LOC -Letter of Credit
MBIA -Municipal Bond Investors Assurance
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities at amortized
cost and value $ 389,727,919
Income receivable 2,112,699
Receivable for shares sold 24,782
TOTAL ASSETS 391,865,400
LIABILITIES:
Payable for investments
purchased $ 1,000
Payable for shares
redeemed 1,500
Income distribution
payable 1,769,597
Accrued expenses 32,613
TOTAL LIABILITIES 1,804,710
Net assets for 390,060,690
shares outstanding $ 390,060,690
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$390,060,690 / 390,060,690
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 10,965,325
EXPENSES:
Investment adviser fee $ 784,957
Administrative personnel
and services fee 147,903
Custodian fees 16,324
Transfer and dividend
disbursing agent fees and
expenses 64,108
Directors'/Trustees' fees 6,831
Auditing fees 6,596
Legal fees 4,068
Portfolio accounting fees 40,812
Shareholder services fee 490,598
Share registration costs 9,699
Printing and postage 11,464
Insurance premiums 13,231
Miscellaneous 2,711
TOTAL EXPENSES 1,599,302
WAIVERS:
Waiver of investment
adviser fee $ (314,022)
Waiver of shareholder
services fee (392,478)
TOTAL WAIVERS (706,500)
Net expenses 892,802
Net investment income $ 10,072,523
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 10,072,523 $ 21,206,728
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (10,072,523) (21,206,728)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 1,069,301,832 2,231,199,677
Net asset value of shares
issued to shareholders in
payment of
distributions declared 1,608,394 3,706,698
Cost of shares redeemed (1,061,249,944) (2,266,609,807)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 9,660,282 (31,703,432)
Change in net assets 9,660,282 (31,703,432)
NET ASSETS:
Beginning of period 380,400,408 412,103,840
End of period $ 390,060,690 $ 380,400,408
</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,
2000 1999 1998
1997 1996 1995
<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 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05) (0.05)
(0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
$ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.59% 4.88%
5.35% 5.19% 5.31% 5.42%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.46% 2 0.46%
0.46% 0.46% 0.46% 0.46%
Net investment income 5.13% 2 4.81%
5.24% 5.09% 5.22% 5.32%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $390,061 $380,400 $412,104
$464,012 $513,687 $507,272
</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, 2000 (UNAUDITED)
ORGANIZATION
Money Market Trust (the "Fund") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
Effective February 1, 2000, the Fund became a portfolio of Money Market
Obligations Trust (the "Trust"). The Trust consists of 40 portfolios. The
financial statements included herein are only those of the Fund. The financial
statements of the other portfolios are presented separately. The assets of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held. The investment objective of the Fund 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 Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund's use 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.
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 Trustees (the "Trustees").
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. The Fund, along with
other affiliated investment companies, may utilize a joint trading account for
the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at fair value.
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 provision for federal tax is
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 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. Losses may occur on these transactions due to changes in market
conditions or the failure of counterparties to perform under the contract.
RESTRICTED SECURITIES
Restricted securities are securities that may only be resold upon registration
under federal securities laws or in transactions exempt from such registration.
In some cases, the issuer of restricted securities has agreed to register such
securities for resale, at the issuer's expense, either upon demand by the Fund
or in connection with another registered offering of the securities. Many
restricted securities may be resold in the secondary market in transactions
exempt from registration. Such restricted securities may be determined to be
liquid under criteria established by the Trustees. The Fund will not incur any
registration costs upon such resales. The Fund's restricted securities are
valued at the price provided by dealers in the secondary market or, if no market
prices are available, at the fair market value as determined by the Fund's
pricing committee.
Additional information on each restricted security held at January 31, 2000 is
as follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION DATE ACQUISITION COST
<S> <C> <C>
Goldman Sachs Group, Inc. 1/24/2000 $2,000,000
Jackson National Life Insurance Co. 12/31/1999 3,000,000
Allstate Life Insurance Co. 5/24/1999 4,000,000
</TABLE>
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 a trade date basis.
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, 2000, capital paid-in aggregated $390,060,690. Transactions in
shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
Shares sold 1,069,301,832 2,231,199,677
Shares issued to
shareholders in payment of
distributions declared 1,608,394 3,706,698
Shares redeemed (1,061,249,944) (2,266,609,807)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 9,660,282 (31,703,432)
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.40% of the Fund's average daily net assets. The Adviser will waive, to the
extent of its adviser fee, the amount, if any, by which the Fund's aggregate
annual operating expenses exceed 0.45% of average daily net assets of the Fund.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a
Shareholder Services
Agreement with Federated
Shareholder Services Company
("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the
Fund 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 Fund. 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 Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
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.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Money Market Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 2000
[Graphic]
Federated
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 60934N229
8030103 (3/00)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Prime
Obligations Fund. This report covers the first half of the fund's fiscal year,
which is the six-month period ended January 31, 2000. It begins with an
investment review of the short-term market from the fund's portfolio manager.
Following the investment review are the fund's portfolio of investments and
financial statements.
In Prime Obligations Fund, your ready cash is at work pursuing daily income
along with the additional advantages of daily liquidity and stability of
principal. 1 At the end of the reporting period, the fund's $10.3 billion in net
assets were invested across a wide range of high-quality, short-term money
market securities, including commercial paper (39.7%), variable rate instruments
(28.8%), short-term notes (10.4%), certificates of deposit (7.6%), time deposits
(6.2%), repurchase agreements (3.8%), and loan participation notes (3.5%).
Over the six-month reporting period, dividends paid to shareholders of
Institutional Shares and Institutional Service Shares each totaled $0.03 per
share.
Thank you for your confidence in the daily earning power of Prime Obligations
Fund. Your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
the 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 these funds.
Investment Review
Prime Obligations Fund 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
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, loan participation notes,
short-term notes, time deposits, variable rate instruments and repurchase
agreements.
The past six months was another banner period for economic growth in the U.S.
Gross domestic product growth averaged 5.50% in 1999, with the economy gaining
steam in the second half of the year. The outlook for 2000 is one of continuing
strength and above trend performance based on a phenomenal consumer sentiment.
The consumer has kept this year's performance on steady ground, but the
industrial sector also kept pace through the fourth quarter. Although industry
did not outperform in the fourth quarter, it held steady, letting the consumer
engine pull the overall economy ahead. With an overall unemployment rate of just
4.10%, it is difficult to see what could derail the consumer.
Inflation concerns retreated from their spring heights to rather mundane levels.
For the entire reporting period, the consumer price index increased just 2.90%,
while the producer price index rose 3.50%, both on an annualized basis. Wages
also increased throughout the year, growing at an overall rate of 4.00%
annualized during the second half of 1999. However, concern remains that the
pool of labor available may cause wage pressures to escalate in the near term.
The Federal Reserve Board (the "Fed") continued to act preemptively to quell
these inflationary threats and raised the target rate for federal funds from
5.00% to 5.25% on August 24, 1999, and then from 5.25% to 5.50% on November 16,
1999. The market had already anticipated such actions, resulting in a much
steeper money market yield curve throughout most of the reporting period.
Thirty-day commercial paper started the reporting period at 5.11% on July 1,
1999, and basically traded steadily up to the 5.50% level through the end of
November. Seasonal and Year 2000 effects then took hold and caused the 30-day
commercial paper rate to spike as high as 6.46% in December before retreating to
the 5.78% level at the end of the reporting period.
The target average maturity range for the fund was decreased from 45- 55 days to
40-50 days on January 10, 2000, reflecting the Fed's concern about
overzealousness in the stock markets and potential inflationary threats. In
structuring the fund, there was 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 January 31, 2000, the net assets of Prime
Obligations Fund increased from $9.4 billion to $10.3 billion, while the 7- day
net yield increased from 5.01% to 5.68% 1 for Institutional Shares, and from
4.76% to 5.43%1 for Institutional Service Shares. The effective average maturity
of the fund on January 31, 2000 was 41 days.
1 Past performance is no guarantee of future results. Yield will vary. Yields
quoted for money market funds most closely reflect the fund's current earnings.
Portfolio of Investments
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
CERTIFICATES OF DEPOSIT-
7.6%
BANKING-7.6%
$ 50,000,000 Bank One, Illinois, N.A.,
5.960%, 11/13/2000 $ 49,971,934
15,000,000 Bank of Montreal, 5.200%,
5/12/2000 14,998,002
70,000,000 Bayerische Landesbank
Girozentrale, 5.120%
3/21/2000 69,993,610
110,000,000 Canadian Imperial Bank of
Commerce, 5.010% - 5.270%,
2/7/2000 - 3/3/2000 109,997,526
262,500,000 Commerzbank AG, Frankfurt,
5.160% - 5.240%, 3/9/2000 -
5/15/2000 262,487,989
50,000,000 Svenska Handelsbanken,
Stockholm, 5.150%,
3/20/2000 49,998,100
41,000,000 Toronto - Dominion Bank,
5.900%, 4/10/2000 40,997,677
189,000,000 UBS AG, 5.250% - 6.130%,
3/10/2000 - 11/29/2000 188,916,270
TOTAL CERTIFICATES OF
DEPOSIT 787,361,108
COMMERCIAL PAPER-39.7% 1
BANKING-17.6%
190,000,000 Abbey National N.A. Corp.,
(Abbey National Bank PLC,
London, GTD),
5.820% - 5.830%, 4/13/2000
- 4/25/2000 187,688,600
75,000,000 Asset Securitization
Cooperative Corp., 5.750%
- 5.850%, 2/22/2000 -
2/24/2000 74,731,007
80,000,000 Australia & New Zealand ANZ
(Delaware), Inc.,
(Australia & New Zealand
Banking Group, Melbourne,
GTD), 5.840%, 4/12/2000 79,078,578
204,000,000 Cregem North America,
Inc., (Credit Communal de
Belgique, Brussels, GTD),
5.740% - 5.920%, 2/8/2000 -
3/7/2000 203,466,858
129,300,000 Den Danske Corp., Inc.,
(Den Danske Bank AS, GTD),
5.790% - 5.890%, 3/1/2000 -
5/2/2000 128,095,732
18,784,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
Support Agreement), 5.700%
- 5.800%, 2/9/2000 -
5/10/2000 18,696,502
533,251,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.680% - 6.070%,
2/7/2000 - 3/6/2000 531,142,527
55,982,000 Park Avenue Receivables
Corp., 5.720% - 5.900%,
2/10/2000 - 2/25/2000 55,848,025
4,648,000 Riverside County, CA,
(Westdeutsche Landesbank
Girozentrale LOC),
5.650%, 2/3/2000 4,646,541
150,000,000 Svenska Handelsbanken,
Inc., (Svenska
Handelsbanken, Stockholm,
GTD), 5.840%, 4/17/2000 148,150,667
175,799,000 Three Rivers Funding
Corp., 5.600% - 5.720%,
2/10/2000 - 2/24/2000 175,430,702
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued
1
BANKING-CONTINUED
$ 172,000,000 Toronto Dominion Holdings
(USA), Inc., (Toronto
Dominion Bank GTD),
5.850%, 4/7/2000 $ 170,155,300
30,000,000 Westpac Capital Corp.,
(Westpac Banking Corp.
Ltd., Sydney GTD),
5.800%, 5/2/2000 29,560,167
TOTAL 1,806,691,206
BROKERAGE-2.4%
100,000,000 Credit Suisse First
Boston, Inc., 5.850%,
4/6/2000 - 4/7/2000 98,936,438
50,000,000 Goldman Sachs Group, Inc.,
6.000%, 4/28/2000 49,293,125
100,000,000 Morgan Stanley, Dean
Witter & Co., 5.850%,
4/17/2000 98,765,000
TOTAL 246,994,563
ELECTRIC POWER-0.3%
26,150,000 Southern Electric
Generating Co. (SEGCO),
5.960%, 4/11/2000 25,846,951
FINANCE - AUTOMOTIVE-0.2%
20,000,000 General Motors Acceptance
Corp., 5.250%, 3/6/2000 19,900,833
FINANCE - COMMERCIAL-13.3%
200,000,000 CIT Group, Inc., 5.810% -
5.950%, 2/1/2000 -
4/27/2000 199,228,068
59,000,000 Corporate Asset Funding
Co., Inc. (CAFCO), 5.860%,
2/28/2000 58,740,695
25,000,000 Edison Asset
Securitization LLC,
5.900%, 5/15/2000 24,573,889
85,000,000 Eureka Securitization
Inc., 5.830%, 4/7/2000 84,091,492
200,205,000 Falcon Asset
Securitization Corp.,
5.660% - 5.720%, 2/10/2000
- 2/28/2000 199,719,574
58,000,000 GE Capital International
Funding, Inc., (General
Electric Capital Corp.
GTD), 5.960%, 3/9/2000 57,644,718
223,000,000 General Electric Capital
Corp., 5.800% - 5.920%,
2/25/2000 - 3/20/2000 221,685,849
87,194,000 Greenwich Funding Corp.,
4.930% - 5.850%, 2/1/2000 -
4/11/2000 86,574,500
70,000,000 Preferred Receivables
Funding Co. (PREFCO),
5.750%, 3/7/2000 69,608,681
194,435,000 Receivables Capital Corp.,
5.670% - 5.850%, 2/7/2000 -
3/20/2000 193,888,351
176,800,000 Sigma Finance, Inc.,
5.500% - 5.870%, 2/1/2000 -
4/25/2000 175,402,504
TOTAL 1,371,158,321
FINANCE - RETAIL-0.1%
14,000,000 Island Finance, Puerto
Rico, (Norwest Corp.
Support Agreement)
5.670%, 2/11/2000 13,977,950
INSURANCE-5.8%
117,124,000 Aspen Funding Corp., (MBIA
INS), 5.670% - 5.730%,
2/4/2000 - 2/17/2000 116,925,240
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued
1
INSURANCE-CONTINUED
$ 68,000,000 CXC, Inc., 5.870% - 5.910%,
2/2/2000 - 4/28/2000 $ 67,218,466
112,000,000 Marsh USA Inc., 5.580% -
5.850%, 2/16/2000 -
7/28/2000 110,200,156
307,900,000 Sheffield Receivables
Corp., 5.680% - 5.950%,
2/4/2000 - 2/22/2000 307,372,902
TOTAL 601,716,764
TOTAL COMMERCIAL PAPER 4,086,286,588
SHORT-TERM NOTES-10.4%
BANKING-0.9%
89,000,000 Bank One, Illinois, N.A.,
6.025% - 6.070%,
10/10/2000 - 11/13/2000 88,961,829
4,000,000 Westpac Banking Corp.
Ltd., Sydney, 6.220%,
11/30/2000 3,997,434
TOTAL 92,959,263
BROKERAGE-3.9%
405,000,000 Goldman Sachs Group, Inc.,
5.831% - 6.010%, 3/14/2000
- 3/29/2000 405,000,000
FINANCE - AUTOMOTIVE-0.3%
5,658,514 Honda Auto Lease Trust
1999-A, Class A1, 5.445%,
8/15/2000 5,658,514
22,276,001 Toyota Auto Receivables
1999-A Owner Trust, Class
1, 5.365%, 8/11/2000 22,276,001
TOTAL 27,934,515
FINANCE - COMMERCIAL-5.0%
340,400,000 Beta Finance, Inc., 5.100%
-6.020%, 2/16/2000 -
9/1/2000 340,399,941
174,500,000 Sigma Finance, Inc.,
6.000% - 6.360%, 8/11/2000
- 11/13/2000 174,500,000
TOTAL 514,899,941
FINANCE - EQUIPMENT-0.3%
13,502,425 Caterpillar Financial
Asset Trust 1999-A, Class
1, 5.365%, 7/25/2000 13,502,425
16,075,498 Copelco Capital Funding
LLC 1999-B, Class A-1,
5.937%, 10/18/2000 16,075,498
714,600 Navistar Financial 1999-A
Owner Trust, Class A-1,
5.003%, 6/15/2000 714,549
TOTAL 30,292,472
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM NOTES-continued
INSURANCE-0.0%
$ 25,000 Americredit Automobile
Receivables Trust 2000-A,
Class A1, (FSA INS),
6.040%, 2/5/2001 $ 25,000
754,021 First Sierra Equipment
Contract Trust 1999-1,
Class A1, (MBIA INS),
4.967%, 5/15/2000 754,005
TOTAL 779,005
TOTAL SHORT-TERM NOTES 1,071,865,196
LOAN PARTICIPATION-3.5%
ELECTRICAL EQUIPMENT-0.3%
29,300,000 Mt. Vernon Phenol Plant
Partnership, (General
Electric Co. GTD),
6.120%, 5/17/2000 29,300,000
FINANCE - AUTOMOTIVE-2.4%
251,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(General Motors Acceptance
Corp. GTD), 5.620% -
6.863%, 2/1/2000 - 3/15/2000 251,000,000
FINANCE - EQUIPMENT-0.8%
85,000,000 Pitney Bowes Credit Corp.,
5.809%, 2/10/2000 84,877,175
TOTAL LOAN PARTICIPATION 365,177,175
VARIABLE RATE INSTRUMENTS-
28.8% 3
BANKING-13.4%
8,835,000 4 C's LLC, Series 1998,
(KeyBank, N.A. LOC),
6.100%, 2/3/2000 8,835,000
2,965,000 550 West 14th Place, Series
1999-A, (Harris Trust &
Savings Bank,
Chicago LOC), 5.900%,
2/3/2000 2,965,000
5,390,000 Abbott Foods, Series 1996,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 5,390,000
13,200,000 Active Living of Glenview,
LLC, Series 1998, (Firstar
Bank, Milwaukee, WI LOC),
6.000%, 2/2/2000 13,200,000
4,760,000 Alabama State IDA, Series
1994, Miltope Project,
(Regions Bank, Alabama
LOC), 6.160%, 2/3/2000 4,760,000
5,210,000 Alabama State IDA,
(Wellborn Cabinet, Inc.),
Tax Revenue Bonds, (Fleet
Bank N.A. LOC), 5.850%,
2/3/2000 5,210,000
2,135,000 Alabama State IDA,
Standard Furniture
Project, Series 1995,
(AmSouth Bank N.A.,
Birmingham, AL LOC),
5.850%, 2/3/2000 2,135,000
5,420,000 Alexandria Executive Club
LP, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 5,420,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 7,500,000 Aliceville, AL IDB,
Buchanan Hardwood Flooring
Co., Series 1999, (Regions
Bank, Alabama LOC),
6.160%, 2/3/2000 $ 7,500,000
2,870,000 Allegheny County, PA IDA,
Series 1999-B, (Bank One,
Ohio, N.A. LOC),
5.980%, 2/3/2000 2,870,000
10,890,000 American Xtal Technology,
Inc., Xtal Project, Series
1998, (U.S. Bank, N.A.,
Minneapolis, MN LOC),
5.780%, 2/3/2000 10,890,000
8,080,000 Arrow N.A., Inc., (Bank of
America, N.A. LOC),
5.980%, 2/3/2000 8,080,000
3,500,000 Asset Holdings V,
(Bayerische Hypotheken-und
Vereinsbank AG LOC),
5.940%, 2/3/2000 3,500,000
47,000,000 Asset Securitization
Cooperative Corp., 5.831%
- 5.903%, 2/7/2000 -
2/14/2000 46,999,610
12,000,000 Association of American
Medical Colleges, (Chase
Manhattan Bank N.A.,
New York), 6.040%, 2/2/2000 12,000,000
3,000,000 Auth Family LLC, 1998
Issue, (Allfirst LOC),
5.860%, 2/1/2000 3,000,000
3,800,000 Balboa Investment Group V,
Series 1997, (AmSouth Bank
N.A., Birmingham, AL LOC),
5.850%, 2/3/2000 3,800,000
4,000,000 Bardstown City, KY, (RJ
Tower Project), Series
1995, (Comerica Bank LOC),
5.950%, 2/3/2000 4,000,000
8,000,000 Bethesda Country Club,
Inc., Series 1997,
(Allfirst LOC), 5.860%,
2/1/2000 8,000,000
18,305,000 Beverly Hills Nursing
Center, Inc., Medilodge
Project Series 1996,
(KeyBank, N.A. LOC),
6.030%, 2/3/2000 18,305,000
1,557,790 Bowling Green Manor L.P.,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 1,557,790
9,670,000 Brentlinger Real Estate
Co., (Huntington National
Bank, Columbus, OH LOC),
5.940%, 2/3/2000 9,670,000
2,800,000 Broadway Investments,
Inc., Series 1999,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 2,800,000
1,390,000 Burlington, WI Community
Development Authority, Hi
Liter Graphics,
Series 1998 B, (Bank One,
Wisconsin, N.A. LOC),
5.990%, 2/3/2000 1,390,000
9,321,000 Capital One Funding Corp.,
Series 1998-C, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 9,321,000
21,805,000 Capital One Funding Corp.,
Series 1999-B, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 21,805,000
2,400,000 Capital One Funding Corp.,
Series 1994-A, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 2,400,000
11,691,000 Capital One Funding Corp.,
Series 1994-C, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 11,691,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 8,187,000 Capital One Funding Corp.,
Series 1994-D, (Bank One,
Kentucky LOC),
5.940%, 2/3/2000 $ 8,187,000
260,000 Capital One Funding Corp.,
Series 1995-A, (Bank One,
Indiana, N.A. LOC),
5.940%, 2/3/2000 260,000
8,430,000 Capital One Funding Corp.,
Series 1995-B, (Bank One,
Kentucky LOC),
5.940%, 2/3/2000 8,430,000
19,020,000 Capital One Funding Corp.,
Series 1995-F, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 19,020,000
8,000,000 Capital One Funding Corp.,
Series 1996-H, (Bank One,
West Virginia, N.A. LOC),
5.940%, 2/3/2000 8,000,000
905,000 Carpenter, Thomas E.,
Series 1998, (Huntington
National Bank, Columbus,
OH LOC), 6.030%, 2/3/2000 905,000
9,000,000 Carport, Inc., Series
1997, (AmSouth Bank N.A.,
Birmingham, AL LOC),
5.850%, 2/3/2000 9,000,000
4,050,000 Cattail Creek Country
Club, Series 1999,
(Allfirst LOC), 5.860%,
2/1/2000 4,050,000
3,600,000 Cleveland Sportsplex Ltd.,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 3,600,000
5,140,000 Clinton County, NY IDA,
Bombardier Project, Series
1998-B, (HSBC Bank USA
LOC), 6.000%, 2/3/2000 5,140,000
1,007,337 Clyde Manor LP,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 1,007,337
490,000 Colorado Health Facilities
Authority, Development
Disabilities Center
Project, Series 1998-F1,
(Bank One, Colorado LOC),
6.040%, 2/3/2000 490,000
1,070,000 Colorado Health Facilities
Authority, Development
Disabilities Resource
Center, Series 1998-C1,
(Bank One, Colorado LOC),
5.940%, 2/3/2000 1,070,000
2,915,000 Colorado Health Facilities
Authority, Goodwill
Industries of Denver
Project, Series 1998-G1,
(Bank One, Colorado LOC),
5.980%, 2/3/2000 2,915,000
2,805,000 Columbia County, GA
Development Authority,
Series 1993, (SunTrust
Banks, Inc. LOC), 5.850%,
2/2/2000 2,805,000
140,300,000 Comerica Bank, 5.791% -
5.864%, 2/9/2000 -
2/25/2000 140,236,389
8,000,000 Commercial Contractors,
Inc., Series 1998,
(Allfirst LOC), 5.860%,
2/1/2000 8,000,000
7,000,000 Communications Corp. of
America, Series 1998,
(Wachovia Bank of NC, N.A.
LOC), 5.820%, 2/2/2000 7,000,000
7,300,000 Cruiser Properties LLC,
Series 1999, (Huntington
National Bank, Columbus,
OH LOC), 6.030%, 2/3/2000 7,300,000
4,800,000 Damascus Company Ltd.,
Series 1998, (Huntington
National Bank, Columbus,
OH LOC), 6.030%, 2/3/2000 4,800,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 11,000,000 David Lipscomb University,
Series 1998, (SunTrust
Bank, Nashville, TN LOC),
5.850%, 2/2/2000 $ 11,000,000
18,000,000 Decatur, AL IDB, Bailey-
PVS Oxides Project, Series
1998, (SunTrust Bank,
Central Florida LOC),
6.060%, 2/3/2000 18,000,000
8,210,000 Dewberry IV LP, Series
1997, (Allfirst LOC),
5.860%, 2/1/2000 8,210,000
5,050,000 Die-Matic Corp.,
(Huntington National Bank,
Columbus, OH LOC),
6.030%, 2/3/2000 5,050,000
4,305,000 Double H Plastics, Inc.,
Series 1998, (First Union
National Bank, Charlotte,
NC LOC), 5.860%, 2/2/2000 4,305,000
2,915,000 Douglas County, GA
Development Authority,
Heritage Bag Project,
Series 1998-B, (Wachovia
Bank of NC, N.A. LOC),
6.160%, 2/3/2000 2,915,000
3,600,000 Eastwinds Investment,
Ltd., (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 3,600,000
6,000,000 Fannin County IDA, Series
1998, Georgia Crown
Distributing Co.,
(SunTrust Bank, Atlanta,
GA LOC), 5.850%, 2/2/2000 6,000,000
4,690,000 Foothill Development Group
LLC, Series 1998,
(U.S. Bank, N.A.,
Minneapolis, MN LOC),
5.940%, 2/3/2000 4,690,000
4,142,000 Frank Parsons Paper Co.,
Inc., Series 1999,
(Allfirst LOC), 5.871%,
2/4/2000 4,142,000
1,345,000 Frederick County, MD,
Thogar LLC Facility,
Series 1998-B, (Allfirst
LOC), 5.860%, 2/1/2000 1,345,000
3,700,000 G.M.H. Enterprises, Inc.,
Series 1995, (National
City Bank, Ohio LOC),
5.820%, 2/3/2000 3,700,000
16,400,000 Galasso Materials LLC and
Galasso Holdings LLC,
Series 1998, (KeyBank,
N.A. LOC), 6.100%, 2/3/2000 16,400,000
2,420,000 Gerken Materials, Inc.,
Series 1995, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 2,420,000
3,210,000 Gerken Materials, Inc.,
Series 1997, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 3,210,000
11,735,000 Grand Aire Express, Inc.,
Series 1997, (National
City Bank, Ohio LOC),
5.820%, 2/3/2000 11,735,000
1,100,000 Great Lakes Brewing Co.,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 1,100,000
2,100,000 Grote Family LP
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 2,100,000
7,350,000 Gwinnett County, GA,
Newell Recycling of
Atlanta, Series 1998,
(Bank One, Texas N.A. LOC),
5.940%, 2/3/2000 7,350,000
7,200,000 Hamilton Farm Bureau
Cooperative, Inc., Series
1999, (Huntington National
Bank, Columbus, OH LOC),
6.030%, 2/3/2000 7,200,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 4,920,000 Hazlet Manor Associates,
Series 1998, (Allfirst
LOC), 5.860%, 2/1/2000 $ 4,920,000
4,390,000 Historical Preservation
Authority of Birmingham,
Series 1993, (AmSouth Bank
N.A., Birmingham, AL LOC),
5.850%, 2/3/2000 4,390,000
10,385,000 Hunt Club Apartments,
Inc., (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 10,385,000
170,000 Illinois Development
Finance Authority, Series
1996B, Nimlok Co.,
Project, (Bank One,
Illinois, N.A. LOC),
6.090%, 2/3/2000 170,000
4,500,000 J.P. Plymouth Properties
LLC, Series 1999,
(Michigan National Bank,
Farmington Hills, MI LOC),
5.920%, 2/2/2000 4,500,000
6,100,000 J.W. Harris, Series 1999 &
2000, (Fifth Third Bank,
Cincinnati, OH LOC),
5.830%, 2/3/2000 6,100,000
17,295,000 JFK Family Borrowing LLP,
Series 1997, (Allfirst
LOC), 5.810%, 2/1/2000 17,295,000
10,780,000 Kendall Health Care
Properties, Series 1997,
(SunTrust Bank, Miami, FL
LOC), 5.900%, 2/2/2000 10,780,000
6,500,000 Kendall Health Care
Properties, Series 1998-A,
(SunTrust Bank, Miami, FL
LOC), 5.900%, 2/2/2000 6,500,000
5,500,000 Kendall Health Care
Properties, Series 1998-B,
(SunTrust Bank, Miami, FL
LOC), 5.900%, 2/2/2000 5,500,000
4,055,000 Kings Creek Country Club,
Inc., Series 1997, (First
Union National Bank,
Charlotte, NC LOC),
5.910%, 2/2/2000 4,055,000
2,400,000 L.H. Kroh, Inc., Series
1998, (First Union
National Bank, Charlotte,
NC LOC), 5.910%, 2/2/2000 2,400,000
157,000,000 Liquid Asset Backed
Securities Trust, Series
1996-3, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.801%,
2/15/2000 157,000,000
37,341,209 Liquid Asset Backed
Securities Trust, Series
1997-1, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.793%,
2/15/2000 37,341,209
7,960,000 Mack Industries, Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 7,960,000
5,600,000 Maples Industries, Inc.,
(Regions Bank, Alabama
LOC), 6.190%, 2/3/2000 5,600,000
22,685,000 Maryland Economic
Development Corp., Human
Genome Series 1997,
(Allfirst LOC), 5.810%,
2/1/2000 22,685,000
4,000,000 McClatchy-Avondale Corp.,
Series 1999, (Allfirst
LOC), 5.860%, 2/1/2000 4,000,000
1,440,000 McClellan Management,
Inc., Genoa Health Care
Center Project, Series
1999, (Fifth Third Bank of
Northwestern OH LOC),
6.040%, 2/3/2000 1,440,000
5,990,000 Medford Convalescent &
Nursing Center, Series
1997, (Allfirst LOC),
5.860%, 2/1/2000 5,990,000
2,835,000 Midwest Funding Corp.,
Series 1991 A, Class A-1,
(Bank One, Ohio, N.A. LOC),
5.980%, 2/3/2000 2,835,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 3,069,000 Midwest Funding Corp.,
Series 1991-C, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 $ 3,069,000
2,584,000 Midwest Funding Corp.,
Series 1992-B, (Bank One,
Ohio, N.A. LOC),
5.940%, 2/3/2000 2,584,000
2,081,000 Midwest Funding Corp.,
Series 1992-C, (Bank One,
Ohio, N.A. LOC),
5.980%, 2/3/2000 2,081,000
4,650,000 Miller, James & Deborah,
Series 1997, (Allfirst
LOC), 5.860%, 2/1/2000 4,650,000
10,000,000 Mississippi Business
Finance Corp., Choctaw
Foods, Inc., (Rabobank
Nederland, Utrecht LOC),
5.850%, 2/2/2000 10,000,000
17,000,000 Mississippi Business
Finance Corp., Series
1994, Georgia Gulf,
(Wachovia Bank of NC, N.A.
LOC), 5.820%, 2/2/2000 17,000,000
2,000,000 Mississippi Business
Finance Corp., Series
1995, Plantation Pointe LP
Project, (SunTrust Bank,
Atlanta LOC), 6.160%,
2/3/2000 2,000,000
13,235,000 North Oaks Partnership,
Series 1998, (Lasalle
National Bank, Chicago, IL
LOC), 5.890%, 2/3/2000 13,235,000
1,800,000 Nova University, Inc.
Lease Revenue Bonds,
Series 1993, Miami
Dolphins Training
Facility, (SunTrust Bank,
South Florida LOC),
5.850%, 2/2/2000 1,800,000
5,099,000 Oceana County Freezer
Storage, Inc., Series
1998, (Huntington National
Bank, Columbus, OH LOC),
6.080%, 2/3/2000 5,099,000
1,200,000 Oceana County Freezer
Storage, Inc., Series
1999, (Huntington National
Bank, Columbus, OH LOC),
6.080%, 2/3/2000 1,200,000
10,150,000 Ohio Solid Waste Facility,
Bailey-PVS Oxides LLC,
Series 1998, (KeyBank,
N.A. LOC), 6.100%,
2/3/2000 10,150,000
5,500,000 Old South Country Club,
Inc., Series 1999,
(Allfirst LOC), 5.860%,
2/1/2000 5,500,000
11,500,000 One Renaissance Hamilton,
Inc., Series 1999, (Bank
One, Ohio N.A. LOC),
5.880%, 2/3/2000 11,500,000
1,815,000 Orangeburg Convalescent
Care Center, Inc., Series
1995-A, (PNC Bank, N.A.
LOC), 5.810%, 2/1/2000 1,815,000
2,070,000 P & P Investment Co., Inc.,
Series 1998, (Fifth Third
Bank, Cincinnati, OH LOC),
5.830%, 2/3/2000 2,070,000
2,080,000 PV Communications, Inc.,
Series 1998, (Huntington
National Bank, Columbus,
OH LOC), 6.030%, 2/3/2000 2,080,000
41,400,000 Park Avenue Receivables
Corp., 5.922%, 2/3/2000 41,400,000
1,840,000 Port Authority of Saint
Paul, MN, Bix Fruit Co.,
Series 1998-B, (U.S. Bank,
N.A., Minneapolis, MN
LOC), 6.070%, 2/3/2000 1,840,000
3,150,000 Port Authority of Saint
Paul, MN, National
Checking Co. Project,
Series 1998-B, (U.S. Bank,
N.A., Minneapolis, MN
LOC), 5.970%, 2/3/2000 3,150,000
8,067,000 Primex Funding Corp.,
Series 1997-A, (Bank One,
Indiana, N.A. LOC),
5.940%, 2/3/2000 8,067,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 2,000,000 R.M.D.H. Properties LLC,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 $ 2,000,000
21,041,330 Rabobank Optional
Redemption Trust, Series
1997-101, 6.186%, 4/20/2000 21,041,330
2,710,000 Roby Company Ltd.
Partnership, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 2,710,000
6,780,000 Roby Company Ltd.
Partnership, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 6,780,000
9,000,000 Rollins College, Series
1998, 5.850%, 2/2/2000 9,000,000
11,350,000 Rooker, J.W., (Wachovia
Bank of NC, N.A. LOC),
5.820%, 2/2/2000 11,350,000
2,600,000 San Jose, CA Multifamily
Housing Revenue Bonds,
Carlton Plaza of San Jose
Series 1998 A-T,
(Commerzbank AG, Frankfurt
LOC), 5.980%, 2/3/2000 2,600,000
3,306,000 Sawmill Creek Lodge Co.,
Series 1996, (Fifth Third
Bank of Northwestern OH
LOC), 5.830%, 2/3/2000 3,306,000
4,360,000 Scranton Times, LP, Series
1997, (PNC Bank, N.A. LOC),
5.810%, 2/7/2000 4,360,000
780,000 Solon, OH, Custom
Graphics, (Bank One, Ohio
N.A. LOC), 5.940%,
2/3/2000 780,000
1,865,000 Sourser Family Ltd.
Partnership, Series 1998,
(Dauphin Deposit Bank and
Trust LOC), 6.050%, 2/2/2000 1,865,000
6,450,000 Special Care Facilities,
Daphne AL, Presbyterian
Retirement Corp.,
Series 1998-B, 5.875%,
2/3/2000 6,450,000
2,880,000 Spitzer Group, Series
1996-A, (Bank One, Ohio,
N.A. LOC), 5.940%, 2/3/2000 2,880,000
1,855,000 Spitzer Group, Series
1996-B, (Bank One, Ohio,
N.A. LOC), 5.940%, 2/3/2000 1,855,000
14,000,000 Spitzer Group, Series
1998-A, (Bank One, Ohio,
N.A. LOC), 5.940%, 2/3/2000 14,000,000
9,698,000 Spitzer Group, Series
1998-B, (Bank One, Ohio,
N.A. LOC), 5.940%, 2/3/2000 9,698,000
6,150,000 Springfield Ltd., Series
A, (UBS AG LOC), 5.940%,
2/3/2000 6,150,000
2,750,000 Stratford Properties LP,
Series 1998, (Allfirst
LOC), 5.860%, 2/1/2000 2,750,000
4,525,000 TNT Co., Series 1998,
(Huntington National Bank,
Columbus, OH LOC),
6.030%, 2/3/2000 4,525,000
46,345,000 Terry Griffin Gate
Partners, Ltd., Series
1995, (Bank One, Kentucky
LOC), 5.940%, 2/2/2000 46,345,000
10,000,000 Three Rivers Funding
Corp., 5.880%, 2/1/2000 10,000,000
5,290,000 Van Dyne Crotty Co., Series
1996, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 5,290,000
9,290,000 Van Dyne Crotty Co., Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.890%, 2/3/2000 9,290,000
3,060,000 Van Wyk Enterprises, Inc.,
Series 1998-A, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 3,060,000
2,115,000 Van Wyk Enterprises, Inc.,
Series 1998-B, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 2,115,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 415,000 Van Wyk Enterprises, Inc.,
Series 1998-C, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 $ 415,000
3,490,000 Van Wyk Enterprises, Inc.,
Series 1998-D, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 3,490,000
630,000 Van Wyk Enterprises, Inc.,
Series 1998-E, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 630,000
795,000 Van Wyk Enterprises, Inc.,
Series 1998-F, (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 795,000
975,000 Van Wyk, Bruce M., Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.980%, 2/3/2000 975,000
2,292,000 Vista Funding Corp.,
Series 1992-A, (Bank One,
Ohio, N.A. LOC),
5.980%, 2/3/2000 2,292,000
2,373,000 Vista Funding Corp.,
Series 1994-A, (Fifth
Third Bank of Northwestern
OH LOC), 5.980%, 2/3/2000 2,373,000
1,202,000 Vista Funding Corp.,
Series 1995-B, (Fifth
Third Bank of Northwestern
OH LOC), 5.980%, 2/3/2000 1,202,000
9,014,000 Vista Funding Corp.,
Series 1995-D, (Fifth
Third Bank of Northwestern
OH LOC), 5.940%, 2/3/2000 9,014,000
3,901,000 Vista Funding Corp.,
Series 1995-E, (Bank One,
Ohio N.A. LOC),
5.940%, 2/3/2000 3,901,000
7,111,000 Vista Funding Corp.,
Series 1998-B, (Fifth
Third Bank of Northwestern
OH LOC), 5.880%, 2/3/2000 7,111,000
3,990,000 Vulcan, Inc., (AmSouth
Bank N.A., Birmingham, AL
LOC), 5.850%, 2/3/2000 3,990,000
956,431 Wauseon Manor II LP,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 956,431
5,990,000 Westminster Village Terre
Haute, Inc., (Huntington
National Bank, Columbus,
OH LOC), 5.980%, 2/3/2000 5,990,000
2,715,000 Wexner Heritage House,
(Huntington National Bank,
Columbus, OH LOC), 5.980%,
2/3/2000 2,715,000
13,025,000 Whetstone Care Center LLC,
Series 1998, (Fifth Third
Bank, Cincinnati, OH LOC),
6.060%, 2/3/2000 13,025,000
3,000,000 White Bear Lake, MN, Series
1993, (Norwest Bank
Minnesota, N.A. LOC),
6.290%, 2/3/2000 3,000,000
13,800,000 Willacoochee, City of,
Development Authority,
Longboard, Inc. Project,
Series 1997, (Wachovia
Bank of NC, N.A. LOC),
5.820%, 2/2/2000 13,800,000
16,235,000 William Hill Manor, Inc.,
Series 1998, (Allfirst
LOC), 5.810%, 2/1/2000 16,235,000
9,015,000 Willow Hill Industries,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 9,015,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
BANKING-CONTINUED
$ 9,000,000 Wilsbach Distributors,
Inc., Series 1999,
(Allfirst LOC), 6.050%,
2/2/2000 $ 9,000,000
2,175,000 YMCA of Central, OH,
(Huntington National Bank,
Columbus, OH LOC),
5.980%, 2/3/2000 2,175,000
TOTAL 1,378,618,096
BROKERAGE-2.6%
267,000,000 Morgan Stanley, Dean
Witter & Co., 5.830% -
5.880%, 2/1/2000 267,000,000
ELECTRICAL EQUIPMENT-0.6%
65,786,454 Northwest Airlines, Inc.,
(General Electric Co.
GTD), 5.819%, 2/7/2000 65,786,454
FINANCE - AUTOMOTIVE-2.3%
138,500,000 General Motors Acceptance
Corp., 5.830%, 2/1/2000 138,500,000
100,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(General Motors Acceptance
Corp. LOC), 5.924%,
2/18/2000 98,979,639
TOTAL 237,479,639
FINANCE - COMMERCIAL-1.5% 153,700,000 Sigma Finance, Inc.,
5.830% - 6.296%, 2/1/2000 -
3/28/2000 153,700,000
FINANCE - EQUIPMENT-0.2%
25,000,000 Deere (John) Capital
Corp., 6.230%, 2/1/2000 25,004,034
GOVERNMENT AGENCY-0.1%
3,750,000 Grand Pointe II Ltd.
Partnership, Series 1999,
Globe Apartments, (Federal
Home Loan Bank of
Indianapolis LOC), 5.980%,
2/3/2000 3,750,000
INSURANCE-8.1%
84,000,000 Allstate Life Insurance
Co., 6.113% - 6.616%,
2/1/2000 84,000,000
85,500,000 First Allmerica Financial
Life Insurance Co., 5.488%
- 6.306%,
2/3/2000 - 2/16/2000 85,500,000
40,000,000 GE Life and Annuity
Assurance Co., 6.200%,
3/1/2000 40,000,000
158,600,000 Jackson National Life
Insurance Co., 5.900% -
6.295%, 2/1/2000 -
4/1/2000 158,600,000
36,208,837 2 Liquid Asset Backed
Securities Trust, Series
1997-3, Senior Notes,
(AMBAC INS), 6.151%,
3/28/2000 36,208,837
25,688,415 2 Liquid Asset Backed
Securities Trust, Sr.
Notes, Series 1998-1,
(AMBAC INS), 5.819%,
2/25/2000 25,688,415
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-
continued 3
INSURANCE-CONTINUED
$ 67,000,000 Monumental Life Insurance
Co., 5.930% - 5.990%,
2/1/2000 $ 67,000,000
75,000,000 Principal Life Insurance
Co., 6.260%, 3/1/2000 75,000,000
49,000,000 Protective Life Insurance
Co., 6.355%, 2/1/2000 49,000,000
49,000,000 Security Life of Denver
Insurance Co., 6.100% -
6.359%, 2/10/2000 -
4/28/2000 49,000,000
100,000,000 Transamerica Life
Insurance and Annuity Co.,
6.094%, 2/25/2000 -
4/7/2000 100,000,000
20,000,000 Transamerica Occidental
Life Insurance Co.,
6.329%, 2/29/2000 20,000,000
44,000,000 Travelers Insurance Co.,
6.094%, 4/1/2000 44,000,000
TOTAL 833,997,252
TOTAL VARIABLE RATE
INSTRUMENTS 2,965,335,475
TIME DEPOSITS-6.2%
150,000,000 Chase Manhattan Bank (USA)
N.A., Wilmington, 5.813%,
2/1/2000 150,000,000
100,000,000 Deutsche Bank, AG, 5.813%,
2/1/2000 100,000,000
20,000,000 Dresdner Bank, AG,
Frankfurt, 5.813%,
2/1/2000 20,000,000
40,000,000 Mellon Bank N.A.,
Pittsburgh, 5.813%,
2/1/2000 40,000,000
225,000,000 Societe Generale, Paris,
5.813%, 2/1/2000 225,000,000
100,000,000 Westdeutsche Landesbank
Girozentrale, 5.813%,
2/1/2000 100,000,000
TOTAL TIME DEPOSITS 635,000,000
REPURCHASE AGREEMENTS-3.8% 4
90,100,000 Bank of America, 5.800%,
dated 1/31/2000, due
2/1/2000 90,100,000
169,800,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.700%, dated 1/31/2000,
due 2/1/2000 169,800,000
85,000,000 Toronto Dominion
Securities (USA), Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 85,000,000
50,000,000 Warburg Dillon Reed LLC,
5.650%, dated 1/31/2000,
due 2/1/2000 50,000,000
TOTAL REPURCHASE
AGREEMENTS 394,900,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 10,305,925,542
</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 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At January 31, 2000, these
securities amounted to $99,238,461 which represents 1.0% of net assets.
3 Current rate and next reset date shown.
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 represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($10,305,752,303) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation FSA -Financial Security
Assurance GTD -Guaranteed IDA -Industrial Development Authority IDB -Industrial
Development Bond INS -Insured LOC -Letter of Credit MBIA -Municipal Bond
Investors Assurance
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 10,305,925,542
Income receivable 68,707,853
Receivable for shares sold 3,660
TOTAL ASSETS 10,374,637,055
LIABILITIES:
Payable for investments
purchased $ 25,000
Payable for shares
redeemed 15,042,908
Income distribution
payable 49,261,806
Accrued expenses 4,555,038
TOTAL LIABILITIES 68,884,752
Net assets for
10,305,752,303 shares
outstanding $ 10,305,752,303
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$6,355,046,516 /
6,355,046,516 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$3,950,705,787 /
3,950,705,787 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 281,532,953
EXPENSES:
Investment adviser fee $ 10,066,612
Administrative personnel
and services fee 3,793,457
Custodian fees 305,240
Transfer and dividend
disbursing agent fees and
expenses 159,361
Directors'/Trustees' fees 30,200
Auditing fees 5,033
Legal fees 37,024
Portfolio accounting fees 342,265
Shareholder services fee-
Institutional Shares 7,450,206
Shareholder services fee-
Institutional Service
Shares 5,063,786
Share registration costs 20,133
Printing and postage 35,233
Insurance premiums 275,041
Miscellaneous 34,551
TOTAL EXPENSES 27,618,142
WAIVERS:
Waiver of investment
adviser fee $ (4,816,075)
Waiver of shareholder
services fee-Institutional
Shares (7,450,206)
TOTAL WAIVERS (12,266,281)
Net expenses 15,351,861
Net investment income $ 266,181,092
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 266,181,092 $ 445,961,130
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (162,261,994) (266,999,113)
Institutional Service
Shares (103,919,098) (178,962,017)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (266,181,092) (445,961,130)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 63,860,628,068 123,404,105,177
Net asset value of shares
issued to shareholders in
payment of distributions
declared 68,421,913 125,920,596
Cost of shares redeemed (63,024,255,132) (121,577,629,746)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 904,794,849 1,952,396,027
Change in net assets 904,794,849 1,952,396,027
NET ASSETS:
Beginning of period 9,400,957,454 7,448,561,427
End of period $ 10,305,752,303 $ 9,400,957,454
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY
31,
2000 1999
1998 1997 1996 1995
<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 0.06
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05)
(0.05) (0.05) (0.05) (0.06)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.73% 5.14%
5.64% 5.45% 5.58% 5.65%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.20% 2 0.20%
0.20% 0.20% 0.20% 0.20%
Net investment income 5.39% 2 4.99%
5.51% 5.35% 5.43% 5.60%
Expense waiver/reimbursement 3 0.35% 2 0.35%
0.35% 0.36% 0.36% 0.38%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $6,355,047 $5,185,448
$3,980,339 $3,588,082 $3,032,602 $2,457,797
</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.
3 This voluntary expense decrease is reflected in both the expense and the net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR
ENDED JULY 31,
2000 1999
1998 1997 1996 1995
<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 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05)
(0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.60% 4.88%
5.37% 5.19% 5.32% 5.38%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.45% 2 0.45%
0.45% 0.45% 0.45% 0.45%
Net investment income 5.13% 2 4.77%
5.24% 5.11% 5.13% 5.66%
Expense waiver/reimbursement 3 0.10% 2 0.10%
0.10% 0.11% 0.11% 0.13%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $3,950,706 $4,215,510
$3,468,222 $2,236,997 $1,297,019 $500,954
</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.
3 This voluntary expense decrease is reflected in both the expense and the net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 2000 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end, management
investment company. The Trust consists of 40 portfolios. The financial
statements included herein are only those of Prime Obligations Fund (the
"Fund"). The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held. The investment
objective of the Fund is to provide current income consistent with stability of
principal.
The Fund offers two classes of shares: Institutional Shares and
Institutional Service Shares.
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 VALUATION
The Fund uses the amortized cost method to value its portfolio securities 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.
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 Trustees (the "Trustees").
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. The Fund, along with
other affiliated investment companies, may utilize a joint trading account for
the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at fair value. The Fund offers multiple classes of shares, which
differ in their respective distribution and service fees. All shareholders bear
the common expenses of the Fund based on average daily net assets of each class,
without distinction between share classes. Dividends are declared separately for
each class. No class has preferential dividend rights; differences in per share
dividend rates are generally due to differences in separate class expenses.
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 provision for federal tax is
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 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. Losses may occur on these transactions due to changes in market
conditions or the failure of couterparties to perform under the contract.
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 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 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 a trade date basis.
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) for each
class of shares. At January 31, 2000, capital paid-in aggregated
$10,305,752,303. Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 47,978,045,202 95,897,980,619
Shares issued to
shareholders in payment of
distributions declared 45,437,900 77,869,797
Shares redeemed (46,853,884,307) (94,770,741,882)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 1,169,598,795 1,205,108,534
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 15,882,582,866 27,506,124,558
Shares issued to
shareholders in payment of
distributions declared 22,984,013 48,050,799
Shares redeemed (16,170,370,825) (26,806,887,864)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (264,803,946) 747,287,493
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 904,794,849 1,952,396,027
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.20% of the Fund's average daily net assets. 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 Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund 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 Fund. 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 Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund'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.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
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.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Prime
Obligations
Fund
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 2000
[Graphic]
Federated
Prime Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N203
Cusip 60934N708
1022002 (3/00)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Treasury
Obligations Fund, which covers the six-month period from August 1, 1999 through
January 31, 2000. It begins with an investment review of the short- term U.S.
Treasury market by the fund's portfolio manager. Following the investment review
are the fund's portfolio of investments and financial statements.
In Treasury Obligations Fund, your ready cash pursues daily income, along with
daily liquidity and stability of principal, 1 by investing exclusively in
short-term U.S. Treasury obligations and repurchase agreements collateralized by
these obligations. At the end of the reporting period, the fund's net assets
totaled $10.8 billion.
Over the six-month reporting period, dividends paid to shareholders of
Institutional Shares, Institutional Service Shares and Institutional Capital
Shares totaled $0.03, $0.02 and $0.02 per share, respectively.
Thank you for your confidence in the daily earning power of Treasury Obligations
Fund. As always, your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 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 these funds.
Investment Review
Treasury Obligations Fund, which is rated AAAm 1 by Standard & Poor's ("S&P")
and Aaa1 by Moody's Investors Service ("Moody's"), is invested in direct
obligations of the U.S. Treasury either in the form of notes and bills or as
collateral for repurchase agreements.
The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions
over the semi-annual reporting period ended January 31, 2000. These two
quarter-point moves, combined with an initial tightening of 25 basis points at
the end of June 1999, brought the federal funds target rate back to 5.50%. This
was the level of the federal funds target rate prior to the fourth quarter of
1998, when the Fed infused liquidity into the fixed income markets during a
period of global economic turmoil. Shortly after the end of January 2000,
however, the Fed raised the federal funds target rate yet again by 25 basis
points, arguably restricting monetary policy for the first time since before the
liquidity and credit crisis of over a year ago.
Robust economic growth prompted the policy moves by the Fed. Economic growth in
1999 exceeded 4%, well in excess of what is generally considered to be the
long-run, non-inflationary growth potential of the economy. Consumer spending
continued to be one of the main drivers behind the impressive pace of growth,
and although mortgage rates have increased by close to 150 basis points over the
reporting period, the interest-sensitive sectors of the economy have remained
persistently strong. Inflationary pressures at the producer and consumer level
remain remarkably absent in the face of this growth. However, while the notion
of a non-inflationary potential, traditionally 2.00% to 2.50%, has increased in
recent times due to evidence that productivity enhancements have been
controlling inflationary pressures, continued growth well above 3% is likely to
keep the Fed on its current tightening course in the near term.
Short-term interest rates reflected, and largely anticipated, the monetary
policy tightenings over the reporting period. The yield on the 1-year Treasury
bill, for example, began the reporting period at close to 5%, traded up to 5.2%
by the time of the Fed's decision to tighten in August, and to 5.5% by the
second tightening of the reporting period in November. The yield then climbed
steadily to close the period at 6.25%, two days prior to the latest decision by
the Fed to tighten, which brought the federal funds target rate to its current
5.75% level.
1 An AAAm rating is obtained after S&P evaluates a number of factors, including
credit quality, market price exposure and management. S&P monitors the portfolio
weekly for developments that could cause changes in the ratings. Money market
funds and bond funds rated Aaa by Moody's are judged to be of an investment
quality similar to Aaa-rated fixed-income obligations; that is, they are judged
to be of the best quality. These ratings, however, are subject to change and do
not remove market risk.
Much attention-both in the financial markets and the popular press-was given in
the fourth quarter to the potential dislocations feared at year end due to the
Year 2000 effect. In hindsight, of course, the world experienced very few
troubles, and the economic impact appears to be non- existent. However, very
short term government securities did seem to reflect a flight to quality
concentrated in the last few days and weeks of the trading year. Furthermore,
rates on repurchase agreements reflected the steps that the Fed had taken to
assure that sufficient liquidity would be available to the banking system at
year end in the event of a crisis; they traded around 3.00% in the last few days
of the year, well below the typical level of around the then 5.50% federal funds
target rate. After the tightening step taken in November, the Fed was largely
and accurately expected to stay on hold until the early February Federal Open
Market Committee meeting to minimize any dislocations experienced at this time.
We managed the fund within a 40 to 50 day average maturity target range
throughout most of the reporting period, moving within that range according to
relative value opportunities available in the market. We continued to pursue a
barbelled structure for the fund, combining a significant position in repurchase
agreements, primarily on an overnight basis, with purchases of Treasury
securities in the 6 to 13 month area. As has been the case for some time, due to
the technical influences in the Treasury bill market that have kept this sector
of the curve quite expensive, we concentrated our direct purchases of Treasury
securities in Treasury notes that met our maturity guidelines. We also reduced
our traditional holdings of overnight repurchase agreements, which were
typically at 70% to 80% of the fund, to about 50% of fund net assets at the end
of 1999 due to our expectation of very low repurchase agreement rates.
With fourth quarter gross domestic product in 1999 now expected to have grown at
close to 7.00%, we anticipate that the Fed will gradually restrict monetary
policy further until Fed officials see concrete signs of a slowing in economic
activity to a more sustainable pace. As a result, we recently lowered our
average maturity target range to 35 to 45 days in anticipation of higher
interest rates, and are currently positioned at the lower end of that range.
Portfolio of Investments
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM U.S. TREASURY
OBLIGATIONS-23.8%
U.S. TREASURY BILLS-1.2% 1
$ 138,000,000 4.470% - 5.260%, 3/30/2000
- 11/9/2000 $ 134,768,895
U.S. TREASURY NOTES-22.6%
1
2,444,500,000 4.000% - 6.375%, 2/15/2000
- 1/31/2001 2,442,566,989
TOTAL SHORT-TERM
U.S. TREASURY OBLIGATIONS 2,577,335,884
REPURCHASE AGREEMENTS -
76.9% 2
125,000,000 Banc One Capital Markets,
5.690%, dated 1/31/2000,
due 2/1/2000 125,000,000
175,000,000 Barclays de Zoete Wedd
Securities, Inc., 5.650%,
dated 1/31/2000,
due 2/1/2000 175,000,000
485,000,000 Barclays de Zoete Wedd
Securities, Inc., 5.710%,
dated 1/31/2000,
due 2/1/2000 485,000,000
300,000,000 Bear, Stearns and Co.,
5.710%, dated 1/31/2000,
due 2/1/2000 300,000,000
200,000,000 CIBC Wood Gundy Securities
Corp., 5.700%, dated
1/31/2000, due 2/1/2000 200,000,000
306,000,000 3 Deutsche Bank Government
Securites, Inc., 5.640%,
dated 1/14/2000, due
2/29/2000 306,000,000
373,000,000 3 Deutsche Bank Government
Securites, Inc., 5.650%,
dated 1/26/2000, due
2/22/2000 373,000,000
344,410,000 Deutsche Bank Government
Securites, Inc., 5.700%,
dated 1/31/2000, due
2/1/2000 344,410,000
304,000,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.700%, dated 1/31/2000,
due 2/1/2000 304,000,000
170,000,000 First Union Capital
Markets, 5.700%, dated
1/31/2000, due 2/1/2000 170,000,000
500,000,000 Morgan Stanley Group,
Inc., 5.700%, dated
1/31/2000, due 2/1/2000 500,000,000
450,000,000 Paribas Corp., 5.700%,
dated 1/31/2000, due
2/1/2000 450,000,000
805,000,000 Salomon Brothers, Inc.,
5.700%, dated 1/31/2000,
due 2/1/2000 805,000,000
305,000,000 Scotia McLeod (USA), Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 305,000,000
500,000,000 SG Cowen Securities Corp.,
5.690%, dated 1/31/2000,
due 2/1/2000 500,000,000
532,015,000 Societe Generale
Securities Corp., 5.690%,
dated 1/31/2000,
due 2/1/2000 532,015,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS -
continued 2
$ 320,000,000 State Street, 5.690%,
dated 1/31/2000, due
2/1/2000 $ 320,000,000
505,000,000 Toronto Dominion Holdings
(USA), Inc., 5.690%, dated
1/31/2000, due 2/1/2000 505,000,000
175,000,000 3 Warburg Dillon Reed LLC,
5.340%, dated 8/18/1999,
due 2/14/2000 175,000,000
150,000,000 Warburg Dillon Reed LLC,
5.550%, dated 1/31/2000,
due 2/1/2000 150,000,000
60,000,000 Warburg Dillon Reed LLC,
5.600%, dated 1/31/2000,
due 2/1/2000 60,000,000
343,000,000 3 Warburg Dillon Reed LLC,
5.650%, dated 1/18/2000,
due 3/20/2000 343,000,000
390,000,000 Warburg Dillon Reed LLC,
5.700%, dated 1/31/2000,
due 2/1/2000 390,000,000
505,000,000 Westdeutsche Landesbank
Girozentrale, 5.690%,
dated 1/31/2000,
due 2/1/2000 505,000,000
TOTAL REPURCHASE
AGREEMENTS 8,322,425,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 4 $ 10,899,760,884
</TABLE>
1 The issue shows the rate of discount at the time of purchase.
2 The repurchase agreements are fully collateralized by U.S. Treasury government
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.
3 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days.
4 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($10,823,241,881) as of January 31, 2000.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 8,322,425,000
Investments in securities 2,577,335,884
Total investments in
securities, at amortized
cost and value 10,899,760,884
Cash 1,619,341
Income receivable 39,108,094
TOTAL ASSETS 10,940,488,319
LIABILITIES:
Payable for investments
purchased 69,744,090
Income distribution
payable 46,265,971
Accrued expenses 1,236,377
TOTAL LIABILITIES 117,246,438
Net assets for
10,823,241,881 shares
outstanding $ 10,823,241,881
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$5,693,475,106 /
5,693,475,106 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$4,788,078,637 /
4,788,078,637 shares
outstanding $1.00
INSTITUTIONAL CAPITAL
SHARES:
$341,688,138 / 341,688,138
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 290,602,315
EXPENSES:
Investment adviser fee $ 11,097,996
Administrative personnel
and services fee 4,182,208
Custodian fees 314,627
Transfer and dividend
disbursing agent fees and
expenses 84,615
Director's/Trustees' fees 33,291
Auditing fees 5,563
Legal fees 19,158
Portfolio accounting fees 377,152
Shareholder services fee-
Institutional Shares 7,394,829
Shareholder services fee-
Institutional Service
Shares 5,950,635
Shareholder services fee-
Institutional Capital
Shares 527,031
Share registration costs 26,365
Printing and postage 27,675
Insurance premiums 13,468
Miscellaneous 27,473
TOTAL EXPENSES 30,082,086
WAIVERS:
Waiver of investment
adviser fee $ (4,862,172)
Waiver of shareholder
services fee-Institutional
Shares (7,394,829)
Waiver of shareholder
services fee-Institutional
Capital Shares (316,218)
TOTAL WAIVERS (12,573,219)
Net expenses 17,508,867
Net investment income $ 273,093,448
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 273,093,448 $ 528,606,628
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (149,040,258) (276,806,316)
Institutional Service
Shares (113,789,802) (235,867,234)
Institutional Capital
Shares (10,263,388) (15,933,078)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (273,093,448) (528,606,628)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 35,206,321,953 68,176,770,225
Net asset value of shares
issued to shareholders in
payment of distributions
declared 53,398,957 126,585,254
Cost of shares redeemed (35,410,701,747) (67,696,134,650)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (150,980,837) 607,220,829
Change in net assets (150,980,837) 607,220,829
NET ASSETS:
Beginning of period 10,974,222,718 10,367,001,889
End of period $ 10,823,241,881 $ 10,974,222,718
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR
ENDED JULY 31,
2000 1999
1998 1997 1996 1995
<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 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05)
(0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.56% 4.91%
5.54% 5.36% 5.53% 5.50%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.20% 2 0.20%
0.20% 0.20% 0.20% 0.20%
Net investment income 5.04% 2 4.79%
5.40% 5.24% 5.37% 5.42%
Expense waiver/reimbursement 3 0.34% 2 0.34%
0.35% 0.35% 0.36% 0.36%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $5,693,475 $5,477,028
$5,289,871 $4,814,583 $4,649,870 $3,441,068
</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.
3 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
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31,
YEAR ENDED JULY 31,
2000 1999
1998 1997 1996 1995
<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 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05)
(0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.43% 4.65%
5.28% 5.10% 5.26% 5.23%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.45% 2 0.45%
0.45% 0.45% 0.45% 0.45%
Net investment income 4.79% 2 4.54%
5.15% 5.03% 5.12% 5.53%
Expense waiver/reimbursement 3 0.09% 2 0.09%
0.10% 0.10% 0.11% 0.11%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $4,788,079 $5,034,388 $5,045,428
$3,054,110 $1,516,839 $543,855
</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.
3 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
Financial Highlights-Institutional Capital Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
2000 1999 1998
1997 1
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $
1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05
0.02
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05)
(0.02)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $
1.00
TOTAL RETURN 2 2.51% 4.81% 5.43%
1.58%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.30% 3 0.30% 0.30%
0.30% 3
Net investment income 4.87% 3 4.61% 5.30%
5.42% 3
Expense waiver/reimbursement 4 0.24% 3 0.24% 0.25%
0.25% 3
SUPPLEMENTAL DATA:
Net asset, end of period (000 omitted) $341,688 $462,807 $31,703
$42,505
</TABLE>
1 Reflects operations for the period from April 14, 1997 (date of initial public
investment) to July 31, 1997.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 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
JANUARY 31, 2000 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end, management
investment company. The Trust consists of 40 portfolios. The financial
statements included herein are only those of Treasury Obligations Fund (the
"Fund"). The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held. The investment
objective of the Fund is current income consistent with stability of principal.
The Fund offers three classes of shares: Institutional Shares,
Institutional Service Shares and Institutional Capital Shares.
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 uses the amortized cost method to value its portfolio securities 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.
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 Trustees (the "Trustees").
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. The Fund, along with
other affiliated investment companies, may utilize a joint trading account for
the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at fair market value. The Fund offers multiple classes of shares,
which differ in their respective distribution and service fees. All shareholders
bear the common expenses of the Fund based on average daily net assets of each
class, without distinction between share classes. Dividends are declared
separately for each class. No class has preferential dividend rights;
differences in per share dividend rates are generally due to differences in
separate class expenses.
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 provision for federal tax is
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 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. Losses may occur on these transactions due to changes in market
conditions or the failure of counterparties to perform under the contract.
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 a trade date basis.
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) for each
class of shares. At January 31, 2000, capital paid-in aggregated
$10,823,241,881.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 17,007,656,123 33,252,567,453
Shares issued to
shareholders in payment of
distributions declared 26,063,593 52,447,463
Shares redeemed (16,817,272,358) (33,117,858,112)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 216,447,358 187,156,804
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 16,854,915,375 32,219,870,036
Shares issued to
shareholders in payment of
distributions declared 26,210,840 71,770,419
Shares redeemed (17,127,435,186) (32,302,680,974)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (246,308,971) (11,040,519)
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 1,343,750,455 2,704,332,736
Shares issued to
shareholders in payment of
distributions declared 1,124,524 2,367,372
Shares redeemed (1,465,994,203) (2,275,595,564)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS (121,119,224) 431,104,544
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (150,980,837) 607,220,829
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.20% of the Fund's average daily net assets. 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 Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund 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 Fund. 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 Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund'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.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
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.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Treasury Obligations Fund
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 2000
[Graphic]
Federated
Treasury Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N500
Cusip 60934N872
Cusip 60934N823
1022004 (3/00)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Cash Management Trust. This report covers the first half of the fund's fiscal
year, which is the six-month period ended January 31, 2000. It begins with an
investment review on the short-term market by the fund's portfolio manager.
Following the investment review are the fund's portfolio of investments and
financial statements.
In Automated Cash Management Trust, your ready cash is at work pursuing daily
income, along with a high level of liquidity and a stable net asset value of
$1.00 per share. 1 At the end of the reporting period, the fund's $3.2 billion
in net assets was invested in commercial paper (43.0%), variable rate
instruments (20.8%), short-term notes (9.4%), repurchase agreements (9.1%), time
deposits (8.1%), certificates of deposit (5.4%), and loan participation
securities (4.3%).
Over the six-month reporting period, dividends paid to shareholders of
Institutional Service Shares and Cash II Shares totaled $0.03 per share and
$0.02 per share, respectively.
Thank you for participating in the daily earning power of this high-quality
money market mutual fund. As always, we welcome your questions, comments or
suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 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 these funds.
Investment Review
Automated Cash Management Trust (the "Fund") 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 the highest short-term rating category by one or
more of the nationally recognized statistical rating organizations, or if
unrated, 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.
The second half of 1999 brought low unemployment and a remarkable rise in
productivity in the United States. The Federal Reserve Board (the "Fed") policy
makers raised interest rates on June 30, August 24 and November 30, and the
federal funds target rate increased from 4.75% to 5.50%. The first two interest
rate increases were the Fed's attempt to partially undo the three rate cuts from
last year in the wake of the financial market crises overseas. The November rate
hike was viewed as an attempt to keep the strong U.S. economy from overheating
and preventing inflationary imbalances. We expect the Fed to continue to raise
interest rates during the first half of 2000.
Thirty-day commercial paper started the reporting period at 5.11% on July 1,
1999, and then traded steadily up to the 5.50% level through the end of
November. Seasonal and Y2K effects took hold in December and caused the 30-day
commercial paper rate to spike as high as 6.46% before retreating to end the
period at a 5.78%.
The target average maturity range for Automated Cash Management Trust was
decreased from 45-55 days to 40-50 days on January 10, 2000. This new target
reflects our outlook for increased Fed interest rate tightening over the next
several months. 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 January 31, 2000, the net assets of Automated Cash
Management Trust increased from $2.3 to $3.2 billion while the 7-day net yield
increased from 4.62% to 5.31% for Institutional Service Shares and from 4.45% to
5.14% for Cash II Shares. 1 The effective average maturity of the Fund on
January 31, 2000 was 40 days.
1 Past performance is no guarantee of future results. Yields will vary. Yields
quoted for money market funds most closely reflect the fund's current earnings.
Portfolio of Investments
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMERCIAL PAPER-43.0% 1
BANKING-19.8%
$ 50,000,000 Abbey Funding Corp.,
(Guaranteed by Abbey
National Bank PLC,
London), 5.82% - 5.83%,
4/13/2000 - 4/25/2000 $ 49,340,200
51,000,000 Cregem North America,
Inc., (Guaranteed by
Credit Communal de
Belgique, Brussels), 5.74%
- 5.83%, 2/8/2000 -
4/17/2000 50,807,393
117,000,000 Den Danske Corp., Inc.,
(Guaranteed by Den Danske
Bank A/S), 5.79% - 5.90%,
3/1/2000 - 6/21/2000 115,623,017
40,689,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
Support Agreement), 5.67%
- 5.96%, 2/7/2000 -
7/10/2000 40,244,998
30,000,000 Greenwich Funding Corp.,
5.84% - 5.90%, 2/15/2000 -
4/11/2000 29,840,556
110,139,000 Market Street Funding
Corp., (PNC Bank, N.A.
LOC), 5.70% - 5.80%,
2/22/2000 - 3/6/2000 109,580,171
15,000,000 Park Avenue Receivables
Corp., 5.90%, 2/10/2000 14,977,875
20,000,000 Svenska Handelsbanken,
Inc., (Guaranteed by
Svenska Handelsbanken,
Stockholm), 5.84%,
4/12/2000 19,769,644
61,000,000 Three Rivers Funding
Corp., 5.66%, 2/10/2000 60,913,685
20,000,000 Toronto Dominion Holdings
(USA), Inc., (Guaranteed
by Toronto Dominion Bank),
5.85%, 4/7/2000 19,785,500
40,000,000 Westpac Capital Corp.,
(Guaranteed by Westpac
Banking Corp. Ltd.,
Sydney), 5.80% - 5.85%,
4/25/2000 - 5/2/2000 39,448,944
84,334,000 Wood Street Funding Corp.,
5.68% - 6.07%, 2/1/2000 -
2/10/2000 84,256,994
TOTAL 634,588,977
BROKERAGE-2.7%
18,000,000 Goldman Sachs Group, Inc.,
5.85%, 4/28/2000 17,745,525
60,000,000 Morgan Stanley, Dean
Witter & Co., 5.84% -
5.85%, 4/17/2000 -
4/24/2000 59,214,422
10,000,000 Salomon Smith Barney,
Inc., 5.85%, 4/3/2000 9,899,250
TOTAL 86,859,197
CONSUMER PRODUCTS-0.9%
30,000,000 Diageo Capital PLC,
(Guaranteed by Diageo
PLC), 5.74% - 5.89%,
3/1/2000 - 4/11/2000 29,793,494
FINANCE - AUTOMOTIVE-0.1%
5,000,000 General Motors Acceptance
Corp., 5.25%, 3/6/2000 4,975,208
FINANCE - COMMERCIAL-13.5%
47,000,000 Asset Securitization
Cooperative Corp., 5.75% -
5.85%, 2/22/2000 -
2/24/2000 46,838,046
28,000,000 CIT Group, Inc., 5.84% -
5.95%, 2/10/2000 -
4/27/2000 27,833,714
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMERCIAL PAPER-continued
1
FINANCE - COMMERCIAL-
CONTINUED
$ 40,000,000 Corporate Asset Funding
Co., Inc. (CAFCO), 5.75% -
5.86%, 2/28/2000 -
3/22/2000 $ 39,716,467
35,098,000 Edison Asset
Securitization LLC, 5.89%
- 5.90%, 4/25/2000 -
5/15/2000 34,533,109
10,000,000 Eureka Securitization
Inc., 5.83%, 4/7/2000 9,893,117
22,815,000 Falcon Asset
Securitization Corp.,
5.72%, 2/22/2000 22,738,874
10,000,000 GE Capital International
Funding, Inc., (Guaranteed
by General Electric
Capital Corp.), 5.96%,
3/9/2000 9,938,744
50,000,000 General Electric Capital
Corp., 5.80% - 5.92%,
2/25/2000 - 3/20/2000 49,666,111
35,000,000 PREFCO-Preferred
Receivables Funding Co.,
5.67%, 2/22/2000 34,884,238
20,513,000 Receivables Capital Corp.,
5.85% - 5.90%, 2/8/2000 -
4/20/2000 20,430,618
99,270,000 Sheffield Receivables
Corp., 5.72% - 5.95%,
2/4/2000 - 2/22/2000 99,128,353
37,000,000 Sigma Finance, Inc., 5.55%
- 5.87%, 2/4/2000 -
4/14/2000 36,688,631
TOTAL 432,290,022
FINANCE - RETAIL-2.6%
42,000,000 Associates Corp. of North
America, 6.00%, 2/1/2000 42,000,000
42,770,000 Island Finance, Puerto
Rico, 5.67% - 5.73%,
2/11/2000 - 2/14/2000 42,702,933
TOTAL 84,702,933
INSURANCE-3.4%
35,000,000 Aspen Funding Corp.,
(Insured by MBIA), 5.70% -
6.03%, 2/2/2000 -
2/10/2000 34,962,888
59,000,000 CXC, Inc., 5.85% - 5.95%,
2/2/2000 - 4/27/2000 58,506,719
15,000,000 Marsh USA Inc., 5.76% -
5.78%, 2/18/2000 -
7/28/2000 14,701,036
TOTAL 108,170,643
TOTAL COMMERCIAL PAPER 1,381,380,474
SHORT TERM NOTES-9.4%
BANKING-1.6% 45,300,000 Bank One, Illinois, N.A.,
6.03%-6.20%, 1/13/2000 -
10/10/2000 45,282,819
5,000,000 Westpac Banking Corp.
Ltd., Sydney, 6.22%,
11/30/2000 4,996,792
TOTAL 50,279,611
BROKERAGE-3.9%
125,000,000 Goldman Sachs Group, Inc.,
5.83% - 6.01%, 3/29/2000 -
4/26/2000 125,000,000
FINANCE - AUTOMOTIVE-0.2%
2,652,428 Honda Auto Lease Trust
1999-A, Class A1, 5.45%,
8/15/2000 2,652,428
5,241,412 Toyota Auto Receivables
1999-A Owner Trust, Class
1, 5.37%, 8/11/2000 5,241,412
TOTAL 7,893,840
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM NOTES-continued
FINANCE - COMMERCIAL-3.3%
$ 84,200,000 Beta Finance, Inc., 5.03%-
6.02%, 2/4/2000 - 9/1/2000 $ 84,199,866
23,000,000 Sigma Finance, Inc.,
5.83%, 7/13/2000 23,000,000
TOTAL 107,199,866
FINANCE - EQUIPMENT-0.4%
2,935,310 Caterpillar Financial
Asset Trust 1999-A, Class
1, 5.37%, 7/25/2000 2,935,310
8,495,182 Copelco Capital Funding
Trust 1999-B, Class A-1,
5.94%, 10/18/2000 8,495,182
176,431 Navistar Financial 1999-A
Owner Trust, Class A-1,
5.00%, 6/15/2000 176,431
TOTAL 11,606,923
INSURANCE-0.0%
7,000 Americredit Automobile
Receivables Trust 2000-A,
Class A1, 6.04%, 2/5/2001 7,000
TOTAL SHORT-TERM NOTES 301,987,240
CERTIFICATE OF DEPOSIT-
5.4%
BANKING-5.4%
7,000,000 Bank of Montreal, 5.20%,
5/12/2000 6,999,068
10,000,000 Bank of Scotland,
Edinburgh, 5.95%,
4/12/2000 9,999,981
15,000,000 Bayerische Landesbank
Girozentrale, 5.10%,
3/21/2000 14,999,324
30,000,000 Canadian Imperial Bank of
Commerce, Toronto, 5.01% -
5.27%, 2/7/2000 - 3/3/2000 29,999,301
7,000,000 Canadian Imperial Bank of
Commerce, 5.12%, 2/23/2000 6,999,837
10,000,000 Commerzbank AG, Frankfurt,
5.16%, 4/7/2000 9,999,303
20,000,000 Halifax PLC, 5.90%,
3/31/2000 20,000,000
20,000,000 Rabobank Nederland,
Utrecht, 5.14%, 3/20/2000 19,998,987
15,000,000 Royal Bank of Canada,
Montreal, 5.24%, 3/9/2000 14,999,415
5,000,000 Svenska Handelsbanken,
Stockholm, 5.15%,
3/20/2000 4,999,810
33,000,000 UBS AG, 6.02% - 6.19%,
11/13/2000 - 12/11/2000 32,982,893
TOTAL CERTIFICATE OF
DEPOSIT 171,977,919
LOAN PARTICIPATION-4.3%
ELECTRICAL EQUIPMENT-0.4%
13,000,000 Mt. Vernon Phenol Plant
Partnership, (Guaranteed
by General Electric Co.),
6.12%, 5/17/2000 13,000,000
FINANCE - AUTOMOTIVE-2.3%
74,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
5.62% - 6.21%, 2/1/2000 -
2/22/2000 74,000,000
FINANCE - EQUIPMENT-1.6%
50,000,000 Pitney Bowes Credit Corp.,
5.78%, 2/10/2000 49,927,750
TOTAL LOAN PARTICIPATION 136,927,750
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
20.8% 2
BANKING-7.2%
$ 8,000,000 Bethesda Healthcare, Inc.,
Series 1999, (Firstar
Bank, N.A., Cincinnati
LOC), 5.90%, 2/10/2000 $ 8,000,000
6,000,000 Beverly California Corp.,
(PNC Bank, N.A. LOC),
5.81%, 2/7/2000 6,000,000
31,000,000 Comerica Bank, 5.79%,
2/9/2000 30,985,903
4,000,000 David Lipscomb University,
Series 1999, (SunTrust
Bank, Nashville LOC),
5.85%, 2/2/2000 4,000,000
3,200,000 Development Authority of
Richmond Cty., GA, (PNC
Bank, N.A. LOC), 5.81%,
2/7/2000 3,200,000
9,460,000 E & J Investments, LLC,
Bradner Village Health
Care, Series 1999,
(Lasalle National Bank,
Chicago LOC), 5.98%,
2/3/2000 9,460,000
9,775,000 Hannah Boulevard LP,
(Comerica Bank LOC),
6.10%, 2/3/2000 9,775,000
8,300,000 Infirmary Health Systems,
Inc., (Regions Bank,
Alabama LOC), 5.90%,
2/3/2000 8,300,000
7,200,000 K-O-I Warehouse, Inc.;
Hamlet Auto Parts, Inc.;
Kentucky Motor Services,
Inc.; Mad River Auto Parts,
Inc.; Ezzel Parts
Exchange, Inc., (Series
1998), (Firstar Bank,
N.A., Cincinnati LOC),
5.90%, 2/3/2000 7,200,000
7,886,290 Katie Realty, LLC, Series
2000, (Allfirst LOC),
5.87%, 2/4/2000 7,886,290
7,000,000 Kent Capital LLC, Series
1999, (Huntington National
Bank, Columbus, OH LOC),
5.98%, 2/3/2000 7,000,000
4,000,000 L. B. Industries, Series
2000, (Firstar Bank, N.A.,
Cincinnati LOC), 5.90%,
2/3/2000 4,000,000
60,000,000 Liquid Asset Backed
Securities Trust, Series
1996-3, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.80%,
2/15/2000 60,000,000
16,095,349 3 Liquid Asset Backed
Securities Trust, Series
1997-1, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 5.79%,
2/18/2000 16,095,349
1,900,000 Manatee County, FL, CFI
Manufacturing, Inc.
Project, Series B,
(Huntington National Bank,
Columbus, OH LOC), 5.98%,
2/3/2000 1,900,000
18,000,000 Mississippi Business
Finance Corp., Howard
Industries, Inc., Series
1999, (Bank One, Louisiana
LOC), 6.06%, 2/3/2000 18,000,000
8,884,562 3 Rabobank Optional
Redemption Trust, Series
1997-101, 6.19%, 4/20/2000 8,884,562
6,000,000 Rollins College, Series
1998, (SunTrust Bank, LIQ)
5.85%, 2/2/2000 6,000,000
6,300,000 South Pittsburg, TN IDB,
Lodge Manufacturing Co.
Project, Series 1999,
(SunTrust Bank, Nashville
LOC), 5.85%, 2/2/2000 6,300,000
2,593,000 Vista Funding Corp.,
Series 1996-A, (Bank One,
Ohio, N.A. LOC), 5.94%,
2/3/2000 2,593,000
5,250,000 Wendys of Las Vegas and San
Antonio, (Huntington
National Bank, Columbus,
OH LOC), 5.98%, 2/3/2000 5,250,000
TOTAL 230,830,104
BROKERAGE-2.1%
68,400,000 Morgan Stanley, Dean
Witter & Co., 5.83% -
5.88%, 2/4/2000 - 3/7/2000 68,400,000
ELECTRICAL EQUIPMENT-0.7%
20,181,046 Northwest Airlines, Inc.,
(Guaranteed by General
Electric Co.), 5.82%,
2/7/2000 20,181,046
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 2
FINANCE - AUTOMOTIVE-1.5%
$ 34,200,000 General Motors Acceptance
Corp., 5.83%, 3/7/2000 $ 34,200,000
15,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.
LOC), 5.92%, 4/3/2000 14,846,946
TOTAL 49,046,946
FINANCE - COMMERCIAL-2.6% 84,000,000 Sigma Finance, Inc.,
6.00%-6.78%, 2/4/2000 -
4/26/2000 84,000,000
FINANCE - EQUIPMENT-0.5%
15,000,000 Deere (John) Capital
Corp., 6.23%, 2/1/2000 15,002,420
INSURANCE-6.2%
10,000,000 Albuquerque, NM, Series
2000 A, (Insured by MBIA),
5.73%, 2/2/2000 10,000,000
12,000,000 GE Life and Annuity
Assurance Co., 6.20%,
3/1/2000 12,000,000
30,000,000 Jackson National Life
Insurance Co., 6.30%,
2/1/2000 30,000,000
21,121,821 3 Liquid Asset Backed
Securities Trust, Series
1997-3 Senior Notes,
(Guaranteed by AMBAC),
6.15%, 3/26/2000 21,121,821
43,000,000 Monumental Life Insurance
Co., 5.99%, 2/1/2000 43,000,000
30,000,000 Security Life of Denver
Insurance Co., 6.10% -
6.36%, 2/10/2000 -
4/28/2000 30,000,000
10,000,000 Transamerica Life
Insurance and Annuity Co.,
6.09%, 2/25/2000 10,000,000
44,000,000 Travelers Insurance Co.,
6.09%, 4/1/2000 44,000,000
TOTAL 200,121,821
TOTAL VARIABLE RATE
INSTRUMENTS 667,582,337
TIME DEPOSITS-8.1% 1
BANKING-8.1% 35,000,000 Mellon Bank N.A.,
Pittsburgh, 5.81%,
2/1/2000 35,000,000
75,000,000 Societe Generale, Paris,
5.81%, 2/1/2000 75,000,000
100,000,000 SunTrust Bank, Atlanta,
5.88%, 2/1/2000 100,000,000
50,000,000 Toronto Dominion Bank,
5.81%, 2/1/2000 50,000,000
TOTAL TIME DEPOSITS 260,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-9.1%
4
$ 89,100,000 Bank of America, 5.80%,
dated 1/31/2000, due
2/1/2000 $ 89,100,000
150,000,000 Deutsche Bank Financial,
Inc., 5.80%, dated
1/31/2000, due 2/1/2000 150,000,000
27,200,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.70%, dated 1/31/2000,
due 2/1/2000 27,200,000
25,000,000 Toronto Dominion
Securities (USA), Inc.,
5.69%, dated 1/31/2000,
due 2/1/2000 25,000,000
TOTAL REPURCHASE
AGREEMENTS 291,300,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 3,211,155,720
</TABLE>
1 Each issue shows the rate of discount at the time of purchase.
2 Variable rate securities with current rate and next reset date shown.
3 Denotes a security which is subject to restrictions on resale under federal
securities laws. These securities have been deemed liquid based upon criteria
approved by the Fund's Board of Trustees. At January 31, 2000, these securities
amounted to $46,101,732, which represents 1.44% of net assets.
4 The repurchase agreements are collateralized fully by U.S. Treasury or
government 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 represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($3,210,986,473) at January 31, 2000.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation
IDB -Industrial Development Bond
LIQ -Liquidity Agreement
LOC -Letter of Credit
MBIA -Municipal Bond Investors Assurance
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 3,211,155,720
Cash 710,991
Income receivable 16,913,475
Receivable for shares sold 142,381
TOTAL ASSETS 3,228,922,567
LIABILITIES:
Payable for investments
purchased $ 7,007,000
Payable for shares
redeemed 7,868
Income distribution
payable 10,079,156
Accrued expenses 842,070
TOTAL LIABILITIES 17,936,094
Net assets for
3,210,986,473 shares
outstanding $ 3,210,986,473
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SERVICE
SHARES:
$2,178,076,955 /
2,178,076,955 shares
outstanding $1.00
CASH II SHARES:
$1,032,909,518 /
1,032,909,518 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 72,596,717
EXPENSES:
Investment adviser fee $ 6,484,898
Administrative personnel
and services fee 977,496
Custodian fees 97,299
Transfer and dividend
disbursing agent fees and
expenses 555,748
Directors'/Trustees' fees 8,918
Auditing fees 6,316
Legal fees 7,607
Portfolio accounting fees 86,144
Distribution services fee-
Cash II Shares 968,804
Shareholder services fee-
Institutional Service
Shares 2,273,645
Shareholder services fee-
Cash II Shares 968,804
Share registration costs 42,516
Printing and postage 86,727
Insurance premiums 79,334
Miscellaneous 20,255
TOTAL EXPENSES 12,664,511
WAIVERS:
Waiver of investment
adviser fee $ (3,895,673)
Waiver of distribution
services fee-Cash II
Shares (337,144)
Waiver of shareholder
services fee-Institutional
Service Shares (63,662)
TOTAL WAIVERS (4,296,479)
Net expenses 8,368,032
Net investment income $ 64,228,685
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 64,228,685 $ 112,094,085
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Service
Shares (45,466,454) (79,840,623)
Cash II Shares (18,762,231) (32,253,462)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (64,228,685) (112,094,085)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 7,743,089,525 12,077,510,796
Net asset value of shares
issued to shareholders in
payment of
distributions declared 43,705,324 82,501,229
Cost of shares redeemed (6,897,743,531) (12,275,892,919)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 889,051,318 (115,880,894)
Change in net assets 889,051,318 (115,880,894)
NET ASSETS:
Beginning of period 2,321,935,155 2,437,816,049
End of period $ 3,210,986,473 $ 2,321,935,155
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX
MONTHS THREE
ENDED MONTHS
(unaudited) ENDED
JANUARY 31, YEAR ENDED
JULY 31, JULY 31,
2000 1999
1998 1997 1996 1995 1
<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 0.01
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05)
(0.05) (0.05) (0.05) (0.01)
NET ASSET VALUE, END
OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.54% 4.76%
5.25% 5.09% 5.20% 1.42%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.59% 3 0.59%
0.59% 0.58% 0.57% 0.57% 3
Net investment income 5.00% 3 4.66%
5.13% 4.97% 5.08% 5.60% 3
Expenses waiver/reimbursement 4 0.31% 3 0.32%
0.30% 0.33% 0.31% 0.40% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $2,178,077 $1,623,816 $1,734,061
$1,378,982 $1,274,419 $1,141,043
</TABLE>
1 The Fund was reorganized as a portfolio of Money Market Obligations Trust
effective July 30, 1994. The Fund changed its fiscal year-end from April 30 to
July 31 effective October 27, 1994.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and the net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Cash II Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
(unaudited) ENDED
JANUARY 31, YEAR ENDED JULY
31, JULY 31,
2000
1999 1998 1997 1
<S> <C>
<C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $
1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02
0.05 0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02)
(0.05) (0.05) (0.04)
NET ASSET VALUE, END OF PERIOD $ 1.00 $
1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.45%
4.58% 5.07% 4.14%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.76% 3
0.76% 0.76% 0.75% 3
Net investment income 4.84% 3
4.49% 4.94% 4.84% 3
Expenses waiver/reimbursement 4 0.39% 3
0.40% 0.38% 0.41% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,032,910
$698,119 $703,755 $725,267
</TABLE>
1 Reflects operations for the period from September 27, 1996 (date of initial
public investment) to July 31, 1997.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and the net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 2000 (UNAUDITED)
ORGANIZATION
Money Market Obligation Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end, management
investment company. The Trust consists of 40 portfolios. The financial
statements included herein are only those of Automated Cash Management Trust
(the "Fund"). The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held. The investment
objective of the Fund is stability of principal and current income consistent
with stability of principal.
The Fund offers two classes of shares: Institutional Service Shares and
Cash II Shares.
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 uses the amortized cost method to value its portfolio securities 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.
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 Trustees (the "Trustees").
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. The Fund, along with
other affiliated investment companies, may utilize a joint trading account for
the purpose of entering into one or more repurchase agreements.
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. Non-cash dividends included in dividend income, if any, are recorded at
fair market value. The Fund offers multiple classes of shares, which differ in
their respective distribution and service fees. All shareholders bear the common
expenses of the Fund based on average daily net assets of each class, without
distinction between share classes. Dividends are declared separately for each
class. No class has preferential dividend rights; differences in per share
dividend rates are generally due to differences in separate class expenses.
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 provision for federal tax is
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 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 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 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 a trade date basis.
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) for each
class of shares. At January 31, 2000, capital paid-in aggregated $3,210,986,473.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 5,076,542,725 8,194,463,894
Shares issued to
shareholders in payment of
distributions declared 26,285,954 52,248,986
Shares redeemed (4,548,567,526) (8,356,958,182)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 554,261,153 (110,245,302)
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
CASH II SHARES:
Shares sold 2,666,546,800 3,883,046,902
Shares issued to
shareholders in payment of
distributions declared 17,419,370 30,252,243
Shares redeemed (2,349,176,005) (3,918,934,737)
NET CHANGE RESULTING FROM
CASH II SHARE TRANSACTIONS 334,790,165 (5,635,592)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 889,051,318 (115,880,894)
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.50% of the Fund's average daily net assets. 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 Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to $125,000 minimum per portfolio and $30,000
per each additional class.
DISTRIBUTION SERVICES FEE
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b- 1
under the Act. Under the terms of the Plan, the Fund will compensate Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of the
Fund to finance activities intended to result in the sale of the Fund's Class II
Shares. The Plan provides that the Fund may incur distribution expenses up to
0.25% of the average daily net assets of Cash II Shares, annually, to compensate
FSC. FSC may voluntarily choose to waive any portion of its fee. FSC can modify
or terminate this voluntary waiver at any time at its sole discretion.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund 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 Fund. 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 Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
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.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Automated Cash Management Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 2000
[Graphic]
Federated
Automated Cash Management Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N864
Cusip 60934N831
8112802 (3/00)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Government Money Trust, which covers the six-month period from August 1, 1999
through January 31, 2000. It begins with an investment review of the short-term
government market by the fund's portfolio manager. Following the investment
review are the fund's portfolio of investments and financial statements.
Over the six-month reporting period, dividends paid to shareholders totaled
$0.02 per share.
This high-quality money market fund keeps the investor's cash at work pursuing
daily income, along with providing a high level of liquidity and a stable net
asset value of $1.00 per share. 1 The fund's portfolio maintained its AAAm
rating by Standard & Poor's and Aaa rating by Moody's Investors Service, the
highest ratings possible for a money market fund.2 At the end of the reporting
period, more than 76% of the fund's $1.9 billion in net assets were invested in
repurchase agreements backed by Treasury obligations because of their yield
advantage. The remainder of the portfolio was invested in U.S. Treasury bills
and notes.
Thank you for participating in the daily earning power of Automated Government
Money Trust. As always, we welcome your questions, comments or suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 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 these funds.
2 The Standard & Poor's rating is obtained after Standard & Poor's evaluates a
number of factors, including credit quality, market price exposure and
management. Standard & Poor's monitors the portfolio weekly for developments
that could cause changes in ratings. Money market funds rated Aaa by Moody's
Investors Service are judged to be of an investment quality similar to Aaa-rated
fixed income obligations, which means they are judged to be of the best quality.
Ratings are subject to change and do not remove interest rate risks.
Investment Review
Automated Government Money Trust, which is rated AAAm by Standard & Poor's and
Aaa by Moody's Investors Service, is invested in direct obligations of the U.S.
Treasury either in the form of notes and bills or as collateral for repurchase
agreements.
The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions
over the semi-annual reporting period ended January 31, 2000. These two
quarter-point moves, combined with an initial tightening of 25 basis points at
the end of June 1999, brought the federal funds target rate back to 5.50%. This
was the level of the federal funds target rate prior to the fourth quarter of
1998, when the Fed infused liquidity into the fixed income markets during a
period of global economic turmoil. Shortly after the end of January 2000,
however, the Fed raised the federal funds target rate yet again by 25 basis
points, arguably restricting monetary policy for the first time since before the
liquidity and credit crisis of over a year ago.
Robust economic growth prompted the policy moves by the Fed. Economic growth in
1999 exceeded 4%, well in excess of what is generally considered to be the
long-run, non-inflationary growth potential of the economy. Consumer spending
continued to be one of the main drivers behind the impressive pace of growth,
and although mortgage rates have increased by close to 150 basis points over the
reporting period, the interest-sensitive sectors of the economy have remained
persistently strong. Inflationary pressures at the producer and consumer level
remain remarkably absent in the face of this growth. However, while the notion
of non-inflationary potential (traditionally 2.00% to 2.50%) has increased in
recent times due to evidence that productivity enhancements have been
controlling inflationary pressures, continued growth well above 3.00% is likely
to keep the Fed on its current tightening course in the near term.
Short-term interest rates reflected, and largely anticipated, the monetary
policy tightenings over the reporting period. The yield on the 1-year U.S.
Treasury bill, for example, began the reporting period at close to 5%, traded up
to 5.2% by the time of the Fed's decision to tighten in August, and to 5.5% by
the second tightening of the reporting period in November. The yield then
climbed steadily to close the reporting period at 6.25%, two days prior to the
latest decision by the Fed to tighten, which brought the federal funds target
rate to its current 5.75% level.
Much attention-both in the financial markets and the popular press-was given in
the fourth quarter to the potential dislocations feared at year end due to the
Y2K effect. In hindsight, of course, the world experienced very few troubles,
and the economic impact appears to be non-existent. However, very short-term
government securities did seem to reflect a flight to quality concentrated in
the last few days and weeks of the trading year. Furthermore, rates on
repurchase agreements reflected the steps that the Fed had taken to assure that
sufficient liquidity would be available to the banking system at year end in the
event of a crisis; they traded around 3.00% in the last few days of the year,
well below the typical level of around the then 5.50% federal funds target rate.
After the tightening step taken in November, the Fed was largely and accurately
expected to stay on hold until the early February Federal Open Market Committee
("FOMC") meeting to minimize any dislocations experienced at this time.
We managed the fund within a 40 to 50 day average maturity target range
throughout most of the reporting period, moving within that range according to
relative value opportunities available in the market. We continued to pursue a
barbelled structure for the fund, combining a significant position in repurchase
agreements, primarily on an overnight basis, with purchases of U.S. Treasury
securities in the 6 to 13 month area. As has been the case for some time, due to
the technical influences in the Treasury bill market that have kept this sector
of the yield curve quite expensive, we concentrated our direct purchases of
Treasury securities in Treasury notes that met our maturity guidelines. We also
reduced our traditional holdings of overnight repurchase agreements, which were
typically at 70% to 80% of the fund, to about 50% of fund assets at the end of
1999 as we expected very low repo rates.
With fourth quarter Gross Domestic Product ("GDP") in 1999 now expected to have
grown at close to 7%, we anticipate that the Fed will gradually restrict
monetary policy further until Fed officials see concrete signs of a slowing in
economic activity to a more sustainable pace. As a result, we recently lowered
our average maturity target range to 35 to 45 days in anticipation of higher
interest rates, and are currently positioned at the lower end of that range.
Portfolio of Investments
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
U.S. TREASURY OBLIGATIONS-
24.3%
U.S. TREASURY BILLS-0.7%
$ 14,000,000 1 4.470% - 5.210%, 3/30/2000
- 11/9/2000 $ 13,630,297
U.S. TREASURY NOTES-23.6%
454,000,000 4.000% - 6.875%, 2/15/2000
- 1/31/2001 453,618,122
TOTAL U.S. TREASURY
OBLIGATIONS 467,248,419
REPURCHASE AGREEMENTS-76.4% 2
70,000,000 Bank One, 5.690%, dated
1/31/2000, due 2/1/2000 70,000,000
50,000,000 Bank of New York, 5.690%,
dated 1/31/2000, due 2/1/2000 50,000,000
90,000,000 Barclays Capital, Inc.,
5.710%, dated 1/31/2000,
due 2/1/2000 90,000,000
90,000,000 Bear, Stearns Companies,
Inc., 5.710%, dated
1/31/2000, due 2/1/2000 90,000,000
35,000,000 CIBC World Markets,
5.700%, dated 1/31/2000,
due 2/1/2000 35,000,000
76,000,000 3 Deutsche Bank AG, 5.640%,
dated 1/14/2000, due
2/29/2000 76,000,000
35,000,000 3 Deutsche Bank AG, 5.650%,
dated 1/26/2000, due
2/22/2000 35,000,000
114,000,000 Deutsche Bank AG, 5.700%,
dated 1/31/2000, due
2/1/2000 114,000,000
90,000,000 Donaldson, Lufkin and
Jenrette Inc., 5.700%,
dated 1/31/2000, due
2/1/2000 90,000,000
90,000,000 McLeodUSA, Inc., 5.690%,
dated 1/31/2000, due
2/1/2000 90,000,000
65,000,000 Morgan Stanley Dean Witter
& Co., 5.700%, dated
1/31/2000, due 2/1/2000 65,000,000
90,000,000 Salomon Smith Barney,
5.700%, dated 1/31/2000,
due 2/1/2000 90,000,000
50,000,000 Societe Generale
Securities Corp., 5.690%,
dated 1/31/2000, due
2/1/2000 50,000,000
75,000,000 State Street Corp.,
5.690%, dated 1/31/2000,
due 2/1/2000 75,000,000
90,000,000 Toronto Dominion
Securities (USA), Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 90,000,000
30,000,000 3 Warburg Dillon Read LLC,
5.340%, dated 8/18/1999,
due 2/14/2000 30,000,000
15,000,000 Warburg Dillon Read LLC,
5.600%, dated 1/31/2000,
due 2/1/2000 15,000,000
77,000,000 3 Warburg Dillon Read LLC,
5.650%, dated 1/18/2000,
due 3/20/2000 77,000,000
150,000,000 Warburg Dillon Read LLC,
5.700%, dated 1/31/2000,
due 2/1/2000 150,000,000
90,000,000 Westdeutsche Landesbank
NY, 5.690%, dated
1/31/2000, due 2/1/2000 90,000,000
TOTAL REPURCHASE
AGREEMENTS 1,472,000,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 4 $ 1,939,248,419
</TABLE>
1 The issue shows the rate of discount at the time of purchase.
2 The repurchase agreements are collateralized fully by U.S. Treasury
obligations based on market prices at the date of the portfolio.
3 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days.
4 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($1,925,565,481) as of January 31, 2000.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 1,472,000,000
Investments in securities 467,248,419
Total investments in
securities, at amortized
cost and value $ 1,939,248,419
Cash 23,653
Income receivable 7,621,119
Receivable for shares sold 11,425
TOTAL ASSETS 1,946,904,616
LIABILITIES:
Payable for investments
purchased 12,770,045
Income distribution
payable 8,107,216
Accrued expenses 461,874
TOTAL LIABILITIES 21,339,135
Net assets for
1,925,565,481 shares
outstanding $ 1,925,565,481
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$1,925,565,481 /
1,925,565,481 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 52,513,860
EXPENSES:
Investment adviser fee $ 5,005,133
Administrative personnel
and services fee 754,462
Custodian fees 71,583
Transfer and dividend
disbursing agent fees and
expenses 101,615
Directors'/Trustees' fees 12,203
Auditing fees 6,189
Legal fees 7,541
Portfolio accounting fees 65,631
Shareholder services fee 2,502,567
Share registration costs 12,202
Printing and postage 20,396
Insurance premiums 3,484
Miscellaneous 13,205
TOTAL EXPENSES 8,576,211
WAIVERS:
Waiver of investment
adviser fee $ (2,525,864)
Waiver of shareholder
services fee (99,711)
TOTAL WAIVERS (2,625,575)
Net expenses 5,950,636
Net investment income $ 46,563,224
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 46,563,224 $ 100,106,973
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (46,563,224) (100,106,973)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 5,303,359,163 9,358,843,731
Net asset value of shares
issued to shareholders in
payment of
distributions declared 18,939,983 41,924,345
Cost of shares redeemed (5,450,105,284) (9,714,709,880)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (127,806,138) (313,941,804)
Change in net assets (127,806,138) (313,941,804)
NET ASSETS:
Beginning of period 2,053,371,619 2,367,313,423
End of period $ 1,925,565,481 $ 2,053,371,619
</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,
2000 1999
1998 1997 1996 1995
<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 0.04
0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.04)
(0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.36% 4.50%
5.13% 4.97% 5.15% 5.10%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.59% 2 0.59%
0.59% 0.59% 0.57% 0.57%
Net investment income 4.65% 2 4.41%
5.00% 4.86% 5.03% 4.97%
Expense waiver/reimbursement 3 0.26% 2 0.26%
0.26% 0.27% 0.28% 0.29%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,925,565 $2,053,372
$2,367,313 $2,412,656 $2,478,477 $2,448,873
</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.
3 This voluntary expense decrease is reflected in both the expense and the net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 2000 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end management
investment company. The Trust consists of 40 portfolios. The financial
statements included herein are only those of Automated Government Money Trust
(the "Fund"). The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held. The investment
objective of the Fund 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 Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank or broker 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.
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 Trustees (the "Trustees").
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. The Fund, along with
other affiliated investment companies, may utilize a joint trading account for
the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends included in dividend income, if any,
are recorded at fair market value.
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 provision for federal tax is
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 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. Losses may occur on these transactions due to changes in market
conditions or the failure of counterparties to perform under the contract.
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 a trade date basis.
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, 2000, capital paid-in aggregated $1,925,565,481. Transactions in
shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
2000 1999
<S> <C> <C>
Shares sold 5,303,359,163 9,358,843,731
Shares issued to
shareholders in payment of
distributions declared 18,939,983 41,924,345
Shares redeemed (5,450,105,284) (9,714,709,880)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (127,806,138) (313,941,804)
</TABLE>
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.50% of the Fund's average daily net assets. 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 Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to $125,000 minimum per portfolio and $30,000
per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund 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 Fund. 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 Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
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.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Automated Government Money Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 2000
[Graphic]
Federated
Automated Government Money Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N815
8022501 (3/00)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Trust for
U.S. Treasury Obligations, which covers the six-month period from August 1, 1999
through January 31, 2000. The report begins with an investment review by the
fund's portfolio manager and follows with the portfolio of investments and
financial statements.
This money market mutual fund offers a high-quality approach to daily investment
income, along with daily liquidity and stability of principal, 1 through a
portfolio of short-term U.S. Treasury obligations. At the end of the reporting
period, approximately 72% of fund assets were invested in repurchase agreements
backed by U.S. Treasury obligations because of the yield advantage of these
securities. The remaining assets were invested in U.S. Treasury obligations.
Dividends paid to shareholders during the six-month reporting period totaled
$0.02 per share. At the end of the reporting period, the fund's net assets
totaled $1.2 billion.
Thank you for selecting Trust for U.S. Treasury Obligations as your quality cash
investment. We welcome your comments and suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 2000
1 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 these funds.
Investment Review
Trust for U.S. Treasury Obligations, which is rated AAAm by Standard & Poor's 1
and Aaa by Moody's Investors Service,2 is invested in direct obligations of the
U.S. Treasury either, in the form of notes and bills or as collateral for
repurchase agreements.
The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions
over the semi-annual reporting period ended January 31, 2000. These two
quarter-point moves, combined with an initial tightening of 25 basis points at
the end of June 1999, brought the federal funds target rate back to 5.50%. This
was the level of the federal funds target rate prior to the fourth quarter of
1998, when the Fed infused liquidity into the fixed income markets during a
period of global economic turmoil. Shortly after the end of January 2000,
however, the Fed raised the federal funds target rate yet again by 25 basis
points, arguably restricting monetary policy for the first time since before the
liquidity and credit crisis of over a year ago.
Robust economic growth prompted the policy moves by the Fed. Economic growth in
1999 exceeded 4%, well in excess of what is generally considered to be the
long-run, non-inflationary growth potential of the economy. Consumer spending
continued to be one of the main drivers behind the impressive pace of growth,
and although mortgage rates have increased by close to 150 basis points over the
reporting period, the interest-sensitive sectors of the economy have remained
persistently strong. Inflationary pressures at the producer and consumer level
remain remarkably absent in the face of this growth. However, while the notion
of a non-inflationary potential (traditionally 2% to 2.50%) has increased in
recent times due to evidence that productivity enhancements have been
controlling inflationary pressures, continued growth well above 3% is likely to
keep the Fed on its current tightening course in the near term.
Short-term interest rates reflected, and largely anticipated, the monetary
policy tightenings over the reporting period. The yield on the 1-year Treasury
bill, for example, began the reporting period at close to 5%, traded up to 5.2%
by the time of the Fed's decision to tighten in August, and to 5.5% by the
second tightening of the reporting period in November. The yield then climbed
steadily to close the reporting period at 6.25%, two days prior to the latest
decision by the Fed to tighten, which brought the federal funds target rate to
its current 5.75% level.
1 The Standard & Poor's rating is obtained after S&P evaluates a number of
factors, including credit quality, market price exposure and management. S&P
monitors the portfolio weekly for developments that could cause changes in the
ratings. Ratings are subject to change and do not remove interest rate risks.
2 Money market funds rated Aaa by Moody's Investors Service are judged to be of
an investment quality similar to Aaa-rated fixed income obligations, which means
they are judged to be of the best quality. Ratings are subject to change and do
not remove interest rate risks.
Much attention-both in the financial markets and the popular press-was given in
the fourth quarter to the potential dislocations feared at year end due to the
Y2K effect. In hindsight, of course, the world experienced very few troubles,
and the economic impact appears to be non-existent. However, very short-term
government securities did seem to reflect a flight to quality concentrated in
the last few days and weeks of the trading year. Furthermore, rates on
repurchase agreements reflected the steps that the Fed had taken to assure that
sufficient liquidity would be available to the banking system at year end in the
event of a crisis; they traded around 3% in the last few days of the year, well
below the typical level of around the then 5.50% federal funds target rate.
After the tightening step taken in November, the Fed was largely and accurately
expected to stay on hold until the early February Federal Open Market Committee
("FOMC") meeting to minimize any dislocations experienced at this time.
We managed the fund within a 40 to 50 day average maturity target range
throughout most of the reporting period, moving within that range according to
relative value opportunities available in the market. We continued to pursue a
barbelled structure for the fund, combining a significant position in repurchase
agreements, primarily on an overnight basis, with purchases of Treasury
securities in the 6 to 13 month area. As has been the case for some time, due to
the technical influences in the Treasury bill market that have kept this sector
of the curve quite expensive, we concentrated our direct purchases of Treasury
securities in Treasury notes that met our maturity guidelines. We also reduced
our traditional holdings of overnight repurchase agreements, which were
typically at 70% to 80% of the fund, to about 50% of fund assets at the end of
1999 as we expected very low repo rates.
With fourth quarter Gross Domestic Product ("GDP") in 1999 now expected to have
grown at close to 7%, we anticipate that the Fed will gradually restrict
monetary policy further until Fed officials see concrete signs of a slowing in
economic activity to a more sustainable pace. As a result, we recently lowered
our average maturity target range to 35 to 45 days in anticipation of higher
interest rates, and are currently positioned at the lower end of that range.
Portfolio of Investments
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
U.S. TREASURY OBLIGATIONS-
27.5%
U.S. TREASURY BILLS-0.9%
$ 11,500,000 1 United States Treasury
Bills, 4.470% - 5.210%,
3/30/2000 - 11/9/2000 $ 11,181,911
U.S. TREASURY NOTES-26.6%
330,750,000 United States Treasury
Notes, 4.000% - 6.875%,
2/15/2000 - 11/30/2000 330,543,387
TOTAL U.S. TREASURY
OBLIGATIONS 341,725,298
REPURCHASE AGREEMENTS-
72.7% 2
55,000,000 Bank One Capital, Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 55,000,000
55,000,000 Barclays de Zoete Wedd
Securities, Inc., 5.710%,
dated 1/31/2000, due
2/1/2000 55,000,000
55,000,000 Bear, Stearns and Co.,
5.710%, dated 1/31/2000,
due 2/1/2000 55,000,000
60,400,000 Deutsche Bank AG, 5.700%,
dated 1/31/2000, due
2/1/2000 60,400,000
55,000,000 3 Deutsche Bank AG, 5.650%,
dated 1/26/2000, due
2/22/2000 55,000,000
19,000,000 3 Deutsche Bank AG, 5.640%,
dated 1/14/2000, due
2/29/2000 19,000,000
55,000,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.700%, dated 1/31/2000,
due 2/1/2000 55,000,000
55,000,000 McLeodUSA Inc., 5.690%,
dated 1/31/2000, due
2/1/2000 55,000,000
55,000,000 Salomon Smith Barney
Holdings, Inc., 5.700%,
dated 1/31/2000, due
2/1/2000 55,000,000
105,000,000 State Street Corp.,
5.690%, dated 1/31/2000,
due 2/1/2000 105,000,000
55,000,000 Toronto Dominion
Securities (USA), Inc.,
5.690%, dated 1/31/2000,
due 2/1/2000 55,000,000
27,000,000 3 Warburg Dillon Read LLC,
5.340%, dated 8/18/1999,
due 2/14/2000 27,000,000
45,000,000 3 Warburg Dillon Read LLC,
5.650%, dated 1/18/2000,
due 3/20/2000 45,000,000
150,000,000 Warburg Dillon Read LLC,
5.700%, dated 1/31/2000,
due 2/1/2000 150,000,000
55,000,000 Westdeutsche Landesbank
Girozentrale, 5.690%,
dated 1/31/2000, due
2/1/2000 55,000,000
TOTAL REPURCHASE
AGREEMENTS 901,400,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 4 $ 1,243,125,298
</TABLE>
1 The issue shows the rate of discount at the time of purchase.
2 The repurchase agreements are collateralized fully by U.S. Treasury
obligations based on market prices at the date of the portfolio.
3 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven.
4 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($1,240,181,243) at January 31, 2000.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 901,400,000
Investments in securities 341,725,298
Total investments in
securities, at amortized
cost and value $ 1,243,125,298
Cash 4,611,064
Income receivable 5,638,882
Receivable for shares sold 36,380
TOTAL ASSETS 1,253,411,624
LIABILITIES:
Payable for investments
purchased 7,858,489
Income distribution
payable 5,246,589
Accrued expenses 125,303
TOTAL LIABILITIES 13,230,381
Net assets for
1,240,181,243 shares
outstanding $ 1,240,181,243
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$1,240,181,243 /
1,240,181,243 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 37,165,387
EXPENSES:
Investment adviser fee $ 2,837,811
Administrative personnel
and services fee 534,726
Custodian fees 58,574
Transfer and dividend
disbursing agent fees and
expenses 21,911
Trustees' fees 6,441
Auditing fees 5,743
Legal fees 7,368
Portfolio accounting fees 62,879
Shareholder services fee 1,773,632
Share registration costs 10,877
Printing and postage 6,757
Insurance premiums 2,274
Miscellaneous 12,956
TOTAL EXPENSES 5,341,949
WAIVERS:
Waiver of investment
adviser fee $ (717,211)
Waiver of shareholder
services fee (1,418,906)
TOTAL WAIVERS (2,136,117)
Net expenses 3,205,832
Net investment income $ 33,959,555
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
(unaudited) ENDED
JANUARY 31, JULY 31,
2000 1999 1
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 33,959,555 $ 66,615,537
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (33,959,555) (66,615,537)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 2,778,399,365 6,150,124,739
Net asset value of shares
issued to shareholders in
payment of
distributions declared 3,501,859 7,041,055
Cost of shares redeemed (3,007,101,002) (7,050,493,479)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (225,199,778) (893,327,685)
Change in net assets (225,199,778) (893,327,685)
NET ASSETS:
Beginning of period 1,465,381,021 2,358,708,706
End of period $ 1,240,181,243 $ 1,465,381,021
</TABLE>
1 The Fund has changed its fiscal year-end from September 30 to July 31.
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 PERIOD
(unaudited) ENDED
JANUARY 31, JULY 31,
YEAR ENDED SEPTEMBER 30,
2000 1999 1
1998 1997 1996 1995
<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 0.04
0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.04)
(0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $
1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.44% 3.76%
5.28% 5.16% 5.18% 5.45%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.45% 3 0.45% 3
0.45% 0.45% 0.45% 0.45%
Net investment income 4.77% 3 4.45% 3
5.17% 5.04% 5.06% 5.28%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,240,181 $1,465,381 $2,358,709
$1,797,163 $2,660,939 $3,031,247
</TABLE>
1 The Fund has changed its fiscal year-end from September 30 to July 31.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 2000 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of 40 portfolios. The financial
statements included herein are only those of the Trust for U.S. Treasury
Obligations (the "Fund"). The financial statements of the other portfolios are
presented separately. The assets of each portfolio are segregated and a
shareholder's interest is limited to the portfolio in which shares are held. The
investment objective of the Fund 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 Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities 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.
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 Trustees (the "Trustees").
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. The Fund, along with
other affiliated investment companies, may utilize a joint trading account for
the purpose of entering into one or more repurchase agreements.
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"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Distributions to shareholders are recorded on the
ex-dividend date. Non-cash dividends included in dividend income, if any, are
recorded at fair market value.
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 provision for federal tax is
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 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. Losses may occur on these transactions due to changes in market
conditions or the failure of counterparties to perform under the contract.
CHANGE IN FISCAL YEAR
The Fund has changed its fiscal year-end from September 30 to July 31.
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 a trade date basis.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31, JULY 31,
2000 1999 1
<S> <C> <C>
Shares sold 2,778,399,365 6,150,124,739
Shares issued to
shareholders in payment of
distributions declared 3,501,859 7,041,055
Shares redeemed (3,007,101,002) (7,050,493,479)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (225,199,778) (893,327,685)
</TABLE>
1 The Fund has changed its fiscal year-end from September 30 to July 31.
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.40% of the Fund's average daily net assets. The Adviser will waive to the
extent of its advisory fee, the amount, if any, by which the Fund's aggregate
annual operating expenses, exceed 0.45% of its average daily net assets of the
Fund.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc., subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund 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 Fund. 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 Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund'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.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
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
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
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.
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.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Trust for U.S. Treasury Obligations
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 2000
[Graphic]
Federated
Trust for U.S. Treasury Obligations
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N799
8042508 (3/00)
[Graphic]
