- --------------------------------------------------------------------------------
CALIFORNIA
- --------------------------------------------------------------------------------
MUNICIPAL
- --------------------------------------------------------------------------------
CASH
- --------------------------------------------------------------------------------
TRUST
- --------------------------------------------------------------------------------
Semi-Annual Report
To Shareholders
March 31, 1994
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
0041609 (5/94)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for California
Municipal Cash Trust (the "Trust"), which covers the six-month period ended
March 31, 1994. The report begins with an interview with the Trust's portfolio
manager and follows with a complete listing of its holdings and its financial
statements.
The Trust pursues double-tax-free income--free of federal regular income tax*
and California personal income tax--through a portfolio of high quality,
short-term securities used for projects as varied as housing, industrial
development, education, and health care.
At the end of the period, the Trust's net assets stood at $95 million. Dividends
paid to shareholders during the period totaled $912,038, or $0.01 per share.
With taxes continuing to climb, you can continue to count on the Trust to ease
your tax burden by pursuing competitive double-tax-free yields--with the
additional advantages of daily liquidity and stability of principal.**
Thank you for your participation in California Municipal Cash Trust. We welcome
your comments and suggestions.
Sincerely,
(LOGO)
Glen R. Johnson
President
May 16, 1994
* Income may be subject to the Federal alternative minimum tax.
** While no money market mutual fund can guarantee that a stable net asset value
will be maintained, the Trust has maintained a stable net asset value of
$1.00 per share since its inception in 1989.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Mary Jo Ochson, Vice President, Federated Management
Q
What has happened to interest rates and the municipal money markets since
our last reporting?
A
Throughout most of last year, economic numbers continued to be more anemic
than anticipated, and inflation appeared to be under control. With little
threat of inflation, the municipal markets responded with some of the
lowest yields over the past decade in both the bond and the money markets.
In the first quarter of 1994, signs of economic strength prompted the Federal
Reserve to twice "tighten" or increase short-term interest rates, moving the
Federal Funds rate target from 3.00% to 3.50%. The municipal money market
reacted with a corresponding back-up in rates, which was somewhat exacerbated by
$3.2 billion of new fixed-rate supply offered by the State of California in
mid-February. With renewed concerns of economic recovery and inflation,
investors immediately began to demand higher liquidity premiums to invest
further out the yield curve, causing rates on one year notes to rise to their
highest levels since June, 1992. Total assets of municipal money market funds
reached an all-time high of over $116 billion in March, 1994, illustrating the
popularity of short-term tax-exempt investments.
Q
How are you managing the portfolio in response to this rate environment?
A
Unlike most of last year, when expectations of stable to lower interest
rates were commonplace, we now are in an environment of rising interest
rate expectations. For most of last year, I maintained a longer average
maturity in the Trust, to take advantage of the yield premium available on
fixed-rate notes relative to variable rate demand notes. Since October of 1993,
I have allowed the average maturity of the Trust to slowly decrease from 62 days
to 42 days at the end of March, 1994. A shorter average maturity, combined with
a higher percentage of liquid variable rate demand notes, will allow the Trust
to be even more responsive to an increasing rate environment.
Q
Going forward, what is your outlook for the tax-free money markets and the
Trust?
A
I believe that interest rates will continue to rise over the year, and that
the Federal Funds rate target will be 4.25% by mid-year and 4.50% or higher
by year-end. The Trust's yield should improve if interest rates rise (of
course, Trust performance is not guaranteed). If rates do in fact rise this
year, I will continue to keep the average maturity short and the portfolio
liquid, while choosing carefully and selectively along the yield curve as
attractive fixed-rate opportunities appear.
- --------------------------------------------------------------------------------
Q
Mary Jo, how has the Trust performed?
A
On March 31, 1994, the Trust's 30-day net yield was 1.75% and the Trust's
7-day net yield was 1.64%. For investors in the 39.6% federal tax bracket
and the 11% California state tax bracket, the 30-day net yield was the
equivalent of a 3.25% yield on a taxable investment. Through March, the Trust's
twelve-month total return was 1.94%* compared to 2.00% for the average of all
California tax free funds tracked by Lipper Analytical Services.
Q
As the national economy continues to rebound from the recession, what is
the outlook for California's economy?
A
The economic decline in California appears to be moderating and many of the
structural problems facing the state are beginning to unwind. California's
abnormal economic recovery is due not only to the state's general economic
conditions, but also the state's bout with many natural disasters, such as brush
fires, mud slides, and, most recently, earthquakes. However, there is growing
evidence that California could experience an economic turnaround. The labor
market is showing signs of bottoming--nonfarm employment increased in March for
the third month in a row, the first three-month increase since the recession
began in mid 1990. Additionally, retail sales are slowly improving, sales of
existing homes have risen to their highest level in nearly four years, and
overall consumer confidence appears to be on the rise. Over the short term, the
state will continue to experience sluggish growth; however, California's
long-term prospects are positive, reflecting the magnitude, diversity, and
wealth of the state's economy.
* Performance quoted represents past performance and is not indicative of future
returns.
CALIFORNIA MUNICIPAL CASH TRUST
PORTFOLIO OF INVESTMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------------- --------- -----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--98.8%
- -----------------------------------------------------------------------
$1,980,000 California Health Facilities Authority Weekly VRDNs
(O'Connor Hospital and St. Vincent's Medical Center,
Inc.)/ (Daughters of Charity Health System Guaranty) VMIG1 $ 1,980,000
---------------------------------------------------------
200,000 California Health Facilities Authority Weekly VRDNs
(Santa Barbara Hospital)/(Credit Suisse LOC) VMIG1 200,000
---------------------------------------------------------
2,880,000 California Health Facilities Authority Weekly VRDNs
(St. Vincent Medical Center)/(Daughters of Charity Health
System Guaranty) VMIG1 2,880,000
---------------------------------------------------------
1,200,000 California Health Facilities Finance Authority Weekly
VRDNs (Pooled Loan Program)/(FGIC Insured) VMIG1 1,200,000
---------------------------------------------------------
2,000,000 California HFA Multi-Unit Rental Housing, 2.45%
Semi-Annual TOBs (California Housing Finance Agency)/
MBIA Insured)/(Citibank BPA), Optional Tender 8/1/94 NR(1) 2,000,000
---------------------------------------------------------
1,000,000 California Pollution Control Finance Authority Weekly
VRDNs (Exxon Corp. Guaranty) A-1+ 1,000,000
---------------------------------------------------------
6,000,000 California Pollution Control Finance Authority Weekly
VRDNs (Series 1991)/(North County Recycling & Energy
Recovery Centre)/(Union Bank of Switzerland LOC) A-1+ 6,000,000
---------------------------------------------------------
3,000,000 California Pollution Control Finance Authority, 2.65% CP
(Pacific Gas & Electric Co.)/(Morgan Guaranty Trust Co.
LOC), Mandatory Tender 5/16/94 A-1+ 3,000,000
---------------------------------------------------------
1,500,000 California Pollution Control Finance Authority, 2.90%
Annual TOBs (San Diego Gas & Electric Co. Guaranty),
Optional Tender 9/1/94 A-1 1,500,000
---------------------------------------------------------
2,000,000 California Pollution Control Finance Authority, 3.05%
Annual TOBs (San Diego Gas & Electric Co. Guaranty),
Optional Tender 8/1/94 A-1 2,000,000
---------------------------------------------------------
</TABLE>
CALIFORNIA MUNICIPAL CASH TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------------- --------- -----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- -----------------------------------------------------------------------
$5,370,000 California School Cash Reserve Program Authority, 2.85%
TANs (California School Boards Pooled Loan Program)/
(Series 1993)/(Industrial Bank of Japan Ltd. LOC),
6/21/94 SP-1 $ 5,370,000
---------------------------------------------------------
6,000,000 California School Cash Reserve Program Authority, 3.40%
TANs (Series 1993A)/(California School Boards Pooled Loan
Program), 7/5/94 SP-1+ 6,007,574
---------------------------------------------------------
1,675,000 California State, 3.90%, GO Bonds, 4/1/94 NR(3) 1,675,000
---------------------------------------------------------
4,000,000 California State Variable Rate Notes SP-1 4,000,000
---------------------------------------------------------
4,200,000 California Statewide Communities Development Authority
Weekly VRDNs (Series A)/(Barton Memorial Hospital)/
(Banque Nationale de Paris LOC) VMIG1 4,200,000
---------------------------------------------------------
5,000,000 California VRDCs IVRCs Trust (Series 1994C)Weekly
VRDNs/(Regents of the University of California Guaranty)/
(AMBAC Insured)/ (Hong Kong Shanghai Bank BPA) (R) A-1 5,000,000
---------------------------------------------------------
1,000,000 Fremont, CA, Unified School District, 3.50% TRANs, 8/8/94 MIG1 1,002,337
---------------------------------------------------------
1,000,000 Golden Empire Schools Financing Authority Weekly VRDNs
(Kern High School District)/(Swiss Bank Corp. LOC) VMIG1 1,000,000
---------------------------------------------------------
1,000,000 Golden Empire Schools Financing Authority Weekly
VRDNs (Series B)/(Kern High School District)/
(Barclays Bank PLC LOC) A-1+ 1,000,000
---------------------------------------------------------
1,600,000 Irvine, CA, Public Facilities and Infrastructure
Authority Weekly VRDNs (Capital Improvements Program)/
(National Westminster Bank PLC LOC) A-1+ 1,600,000
---------------------------------------------------------
900,000 Kern Community College District, CA, Weekly VRDNs, (Swiss
Bank Corp. LOC) VMIG1 900,000
---------------------------------------------------------
1,400,000 Kern County, CA, Public Facility Corp. Weekly VRDNs
(Sanwa Bank Ltd. LOC) VMIG1 1,400,000
---------------------------------------------------------
100,000 Kern County, CA, Public Facility Corp. Weekly VRDNs
(Sanwa Bank Ltd. LOC) VMIG1 100,000
---------------------------------------------------------
2,000,000 Los Angeles County, CA, 3.00% TRANs, 6/30/94 SP-1+ 2,000,192
---------------------------------------------------------
</TABLE>
CALIFORNIA MUNICIPAL CASH TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------------- --------- -----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- -----------------------------------------------------------------------
$4,000,000 Los Angeles County, CA, Transportation Commission, 2.50%
CP (Bank of California N.A., Banque Nationale de Paris,
Canadian Imperial Bank of Commerce, National Westminster
Bank PLC and ABN AMRO Bank N.V. LOCs), Mandatory Tender
5/26/94 A-1+ $ 4,000,000
---------------------------------------------------------
2,885,000 Los Angeles, CA, Harbor Improvement Corp.
Weekly VRDNs (Wilmington Liquid Bulk Terminal)/
(Mellon Bank N.A. LOC) P-1 2,885,000
---------------------------------------------------------
1,000,000 Los Angeles, CA, IDA Weekly VRDNs (Series 1985A)/
(Mediatech West)/(Chemical Bank LOC) P-1 1,000,000
---------------------------------------------------------
2,000,000 Monterey Peninsula, CA, Water Management District
Weekly VRDNs (Series 1992)/(Wastewater Reclamation)/
(Sumitomo Bank Ltd. LOC) VMIG1 2,000,000
---------------------------------------------------------
3,100,000 Municipal Water District of Orange County, CA, Water
Facilities Corporate Certificates Partnership Weekly
VRDNs (Series B)/(Allen-McColloch Pipeline, Inc.)/
(National Westminster Bank PLC LOC) A-1+ 3,100,000
---------------------------------------------------------
1,800,000 Orange County, CA, IDA Weekly VRDNs (Hon Development
Corp.)/(Series 1985B--Niguel Summit II)/(Bank of America
LOC) VMIG1 1,800,000
---------------------------------------------------------
1,000,000 Orange County, CA, Weekly VRDNs (Series 1991A)/
(Apartment Development The Lakes)/(Citibank N.A. LOC) A-1 1,000,000
---------------------------------------------------------
1,000,000 Riverside County, CA, COPs Weekly VRDNs (Public
Facility Finance Program)/(Sanwa Bank Ltd. LOC) MIG1 1,000,000
---------------------------------------------------------
1,000,000 Roseville, CA, Hospital Facilities Authority Weekly
VRDNs (Series 1989A)/(Roseville Hospital)/
(Swiss Bank Corp. LOC) VMIG1 1,000,000
---------------------------------------------------------
1,600,000 Sacramento, CA, COPs Weekly VRDNs (Series 1990)/
(Administration Center & Courthouse)/(Union Bank of
Switzerland LOC) VMIG1 1,600,000
---------------------------------------------------------
1,900,000 San Bernardino County, CA, Weekly VRDNs (Series 1985)/
(Woodview Apartments)/(Bank of America LOC) VMIG1 1,900,000
---------------------------------------------------------
</TABLE>
CALIFORNIA MUNICIPAL CASH TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- ---------- --------------------------------------------------------- --------- -----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
- -----------------------------------------------------------------------
$4,500,000 San Francisco, CA, City and County Redevelopment
Agency Weekly VRDNs (Series B1)/(Fillmore Center)/
(Bank of Nova Scotia LOC) A-1+ $ 4,500,000
---------------------------------------------------------
2,000,000 Santa Clara County, CA, Housing Authority Weekly
VRDNs (Series 1985G)/(Benton Park Central Apartments)/
Citibank N.A. LOC) P-1 2,000,000
---------------------------------------------------------
900,000 Santa Clara County-El Comino Hospital District,
CA, Weekly VRDNs (Valley Medical Center)/
(National Westminster Bank LOC) A-1+ 900,000
---------------------------------------------------------
400,000 Santa Clara, CA, Weekly VRDNs (Series 1985C)/
(Santa Clara Electric System)/(National Westminster Bank
PLC LOC) VMIG1 400,000
---------------------------------------------------------
1,000,000 Solano County, CA, 3.25%, TRANs, 11/1/94 SP-1+ 1,002,851
---------------------------------------------------------
2,000,000 Southern California Public Power Authority Weekly VRDNs
(Transmission Project)/(Swiss Bank Corp. LOC and
AMBAC Insured) A-1+ 2,000,000
---------------------------------------------------------
885,000 Stockton, CA, IDR Refunding Bonds Weekly VRDNs (Series
1993)/(La Quinte Motor Inns, Inc.)/(Nationsbank of Texas
N.A. LOC) P-1 885,000
---------------------------------------------------------
1,000,000 Victor, CA, Elementary School District, 3.50% TRANs,
7/29/94 SP-1+ 1,001,268
---------------------------------------------------------
3,000,000 Yuba, CA, Community College District, 3.00% TRANs,
12/7/94 MIG1 3,006,986
--------------------------------------------------------- -----------
TOTAL INVESTMENTS, AT AMORTIZED COST (NOTE 2A) $93,996,208+
--------------------------------------------------------- -----------
</TABLE>
+ Also represents cost for federal tax purposes.
(R)--Denotes restricted securities which are subject to restrictions on resale
under Federal Securities laws. These securities have been determined to be
liquid under criteria established by the Board of Trustees (Note 2F).
* See Notes to Portfolio of Investments on page 9.
CALIFORNIA MUNICIPAL CASH TRUST
- --------------------------------------------------------------------------------
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC --American Municipal Bond Assurance Corporation
BPA --Bond Purchase Agreement
COPs --Certificates of Participation
CP --Commercial Paper
FGIC --Financial Guaranty Insurance Company
GO --General Obligation
HFA --Housing Finance Authority/Agency
IDA --Industrial Development Authority
IDR --Industrial Development Revenue
LOC(s) --Letter(s) of Credit
MBIA --Municipal Bond Investors Assurance
PLC --Public Limited Company
TANs --Tax Anticipation Notes
TOBs --Tender Option Bonds
TRANs --Tax and Revenue Anticipation Notes
VRDNs --Variable Rate Demand Notes
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($95,160,539) at March 31, 1994.
(See Notes which are an integral part of the Financial Statements)
CALIFORNIA MUNICIPAL CASH TRUST
NOTES TO PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL OBLIGATION RATINGS
S&P
A Standard & Poor's Corporation ("S&P") note rating reflects the liquidity
concerns and market access risks unique to notes.
SP-1Very strong or strong capacity to pay principal and interest. Those issues
determined to possess overwhelming safety characteristics will be given a
plus (+) designation.
SP-2 Satisfactory capacity to pay principal and interest.
MOODY'S
Moody's Investor Service, Inc. ("Moody's")short-term ratings are designated
Moody's Investment Grade (MIG or VMIG (see below)). The purpose of the MIG or
VMIG ratings is to provide investors with a simple system by which the relative
investment qualities of short-term obligations may be evaluated.
MIG1This designation denotes best quality. There is present strong protection by
established cash flows, superior liquidity support or demonstrated
broad-based access to the market for refinancing.
MIG2This designation denotes high quality. Margins of protection are ample
although not so large as in the preceding group.
VARIABLE RATE DEMAND NOTES (VRDNS)
AND
TENDER OPTION BONDS (TOBS)
RATINGS
S&P
S&P assigns dual ratings to all long-term debt issues that have as part of their
provisions a variable rate demand feature. The first rating (long-term rating)
addresses the likelihood of repayment of principal and interest when due, and
the second rating (short-term rating) describes the demand characteristics.
Several examples are AAA/A-1+, AA/A-1+, and A/A-1. (The definitions for the
long-term and the short-term ratings are provided below.)
MOODY'S
Short-term ratings on issues with demand features are differentiated by the use
of the VMIG symbol to reflect such characteristics as payment upon periodic
demand rather than fixed maturity dates and payment relying on external
liquidity.
- --------------------------------------------------------------------------------
In this case, two ratings are usually assigned, (for example, Aaa/VMIG-1); the
first representing an evaluation of the degree of risk associated with scheduled
principal and interest payments, and the second representing an evaluation of
the degree of risk associated with the demand feature. The VMIG rating can be
assigned a 1 or 2 designation using the same definitions described above for the
MIG rating.
COMMERCIAL PAPER (CP) RATINGS
S&P
An S&P commercial paper rating is a current assessment of the likelihood of
timely payment of debt having an original maturity of no more than 365 days.
A-1This designation indicates that the degree of safety regarding timely payment
is either overwhelming or very strong. Those issues determined to possess
overwhelming safety characteristics are denoted with a plus (+) sign
designation.
A-2Capacity for timely payment on issues with this designation is strong.
However, the relative degree of safety is not as high as for issues
designated "A-1."
MOODY'S
P-1 Issuers rated PRIME-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations.
P-2 Issuers rated PRIME-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations.
LONG-TERM DEBT RATINGS
S&P
AAA Debt rated "AAA" has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.
AA Debt rated "AA" has a very strong capacity to pay interest and repay
principal and differs from the highest rated issues only in small degree.
A Debt rated "A" has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than debt in higher rated
categories.
MOODY'S
AaaBonds that are rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt
edge." Interest payments are protected by a large margin and principal is
secure. While the various protective elements are likely to change, such
changes which can be foreseen are most unlikely to impair the fundamentally
strong position of such issues.
- --------------------------------------------------------------------------------
Aa Bonds that are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high
grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may be other
elements present which make the long-term risks appear somewhat larger than
in Aaa securities.
A Bonds that are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving security
to principal and interest are considered adequate, but elements may be
present that suggest a susceptibility to impairment sometime in the future.
NR indicates that both the bonds and the obligor or credit enhancer are not
currently rated by S&P's or Moody's with respect to short-term indebtedness.
However, management considers them to be of comparable quality to securities
rated A-1 or P-1.
NR(1) The underlying issuer/obligor/guarantor has other outstanding debt rated
"'AAA" by Standard & Poor's or "Aaa" by Moody's.
NR(2) The underlying issuer/obligor/guarantor has other outstanding debt rated
"AA" by Standard & Poor's or "Aa" Moody's.
NR(3) The security was issued with an original maturity of 366 days or less and
was rated A+ by S&P and Aa by Moody's.
CALIFORNIA MUNICIPAL CASH TRUST
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments, at amortized cost and value (Note 2A) $93,996,208
- ---------------------------------------------------------------------------------
Cash 1,798,888
- ---------------------------------------------------------------------------------
Interest receivable 719,062
- ---------------------------------------------------------------------------------
Receivable for Trust shares sold 48,801
- --------------------------------------------------------------------------------- -----------
Total assets 96,562,959
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for Trust shares redeemed $1,269,291
- --------------------------------------------------------------------
Dividends payable 117,448
- --------------------------------------------------------------------
Accrued expenses 15,681
- -------------------------------------------------------------------- ----------
Total liabilities 1,402,420
- --------------------------------------------------------------------------------- -----------
NET ASSETS for 95,163,754 shares of beneficial interest outstanding $95,160,539
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share
($95,160,539 / 95,163,754 shares of beneficial interest outstanding) $1.00
- --------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
CALIFORNIA MUNICIPAL CASH TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest income (Note 2B) $1,196,128
- ---------------------------------------------------------------------------------
EXPENSES--
- ---------------------------------------------------------------------
Investment advisory fee (Note 4) $ 245,171
- ---------------------------------------------------------------------
Trustees' fees 5,037
- ---------------------------------------------------------------------
Administrative personnel and services (Note 4) 117,551
- ---------------------------------------------------------------------
Custodian, and recordkeeping fees 26,496
- ---------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses (Note
4) 11,574
- ---------------------------------------------------------------------
Legal fees 9,350
- ---------------------------------------------------------------------
Trust share registration costs 15,187
- ---------------------------------------------------------------------
Auditing fees 7,807
- ---------------------------------------------------------------------
Printing and postage 10,121
- ---------------------------------------------------------------------
Insurance premiums 3,391
- ---------------------------------------------------------------------
Shareholder service fees (Note 4) 4,109
- ---------------------------------------------------------------------
Taxes 42
- ---------------------------------------------------------------------
Miscellaneous 3,802
- --------------------------------------------------------------------- ---------
Total expenses 459,638
- ---------------------------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 4) (175,548)
- --------------------------------------------------------------------- ---------
Net expenses 284,090
- --------------------------------------------------------------------------------- ----------
Net investment income $ 912,038
- --------------------------------------------------------------------------------- ----------
Net realized loss on investments--identified cost basis (3,215)
- --------------------------------------------------------------------------------- ----------
Net increase in net assets resulting from operations $ 908,823
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
CALIFORNIA MUNICIPAL CASH TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------------
1994* 1993
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 912,038 $ 2,163,015
- --------------------------------------------------------------
Net realized loss on investments--identified cost basis (3,215) --
- -------------------------------------------------------------- ------------- -------------
Net increase in net assets resulting from operations 908,823 2,163,015
- -------------------------------------------------------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2B)--
- --------------------------------------------------------------
Dividends to shareholders from net investment income (912,038) (2,163,015)
- -------------------------------------------------------------- ------------- -------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)--
- --------------------------------------------------------------
Proceeds from sale of shares 199,715,744 446,459,618
- --------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of dividends declared 167,456 279,614
- --------------------------------------------------------------
Cost of shares redeemed (209,041,375) (402,126,423)
- -------------------------------------------------------------- ------------- -------------
Change in net assets from Trust share transactions (9,158,175) 44,612,809
- -------------------------------------------------------------- ------------- -------------
Change in net assets (9,161,390) 44,612,809
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 104,321,929 59,709,120
- -------------------------------------------------------------- ------------- -------------
End of period $ 95,160,539 $ 104,321,929
- -------------------------------------------------------------- ------------- -------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
CALIFORNIA MUNICIPAL CASH TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
1994* 1993 1992 1991 1990 1989**
- ---------------------------------- ------ ------ ------ ------ ------ ------
<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 0.01 0.02 0.03 0.04 0.05 0.03
- ---------------------------------- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
- ----------------------------------
Dividends to shareholders from
net investment income (0.01) (0.02) (0.03) (0.04) (0.05) (0.03)
- ---------------------------------- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------- ----- ----- ----- ----- ----- -----
TOTAL RETURN*** 0.93% 2.03% 2.83% 4.30% 5.38% 2.95%
- ----------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------
Expenses 0.58%(a) 0.54% 0.45% 0.35% 0.38% 0.40%(a)
- ----------------------------------
Net investment income 1.85%(a) 2.00% 2.76% 4.19% 5.27% 5.86%(a)
- ----------------------------------
Expense waiver/ reimbursement(b) 0.36%(a) 0.35% 0.58% 0.75% 0.86% 0.89%(a)
- ----------------------------------
SUPPLEMENTAL DATA
- ----------------------------------
Net assets, end of period (000
omitted) $95,161 $104,322 $59,709 $56,754 $50,391 $36,628
- ----------------------------------
</TABLE>
* Six months ended March 31, 1994 (unaudited).
** Reflects operations for the period from March 15, 1989 (date of initial
public offering), to September 30, 1989. For the period from the start of
business on February 27, 1989, to March 14, 1989, net investment income
aggregating $0.00124 per share ($124) was distributed to the Trust's
investment adviser. Such distribution represented the net investment income
of the Trust prior to the initial public offering of Trust shares which
commenced on March 15, 1989.
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 4).
(See Notes which are an integral part of the Financial Statements)
CALIFORNIA MUNICIPAL CASH TRUST
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Trust is registered under the Investment Company Act of 1940, as amended, as
a non-diversified, open-end, no load, management investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles (GAAP).
A. INVESTMENT VALUATIONS--The Trust's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Investment
Company Act of 1940.
B. INVESTMENT INCOME, EXPENSES, AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount are amortized as required by the
Internal Revenue Code (the "Code"). Distributions to shareholders are
recorded on the ex-dividend date.
C. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of the
Code applicable to investment companies and to distribute to shareholders
each year substantially all of its net tax-exempt income. Accordingly, no
provisions for federal tax are necessary.
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities 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.
E. RESTRICTED SECURITIES--Restricted securities are securities that may only be
resold upon registration under Federal Securities laws or in transactions
exempt from such registration. Many restricted securities may be resold in
the secondary market in transactions exempt from registration. In some cases,
the restricted securities may be resold without registration upon exercise of
a demand feature. Such restricted securities may be determined to be liquid
under criteria established by the Board of Trustees. The Trust will not incur
any registration costs upon such resales. Restricted securities are
CALIFORNIA MUNICIPAL CASH TRUST
- --------------------------------------------------------------------------------
valued at amortized cost in accordance with Rule2a-7 under the Investment
Company Act of 1940. Additional information on each restricted security held
at March 31, 1994 is as follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
--------------------------------------------------------- ----------- -----------
<S> <C> <C>
California VRDCs, IVRCs, Trust (Series 1994C) Weekly
VRDNs 2/22/94 5,000,000
</TABLE>
G. OTHER--Investment transactions are accounted for on the trade date.
(3) 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 March
31, 1994, capital paid-in aggregated $95,163,754. Transactions in Trust shares
were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-----------------------------
1994* 1993
- --------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Shares outstanding, beginning of period 104,321,929 59,709,120
- ---------------------------------------------------------------
Shares sold 199,715,744 446,459,618
- ---------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 167,456 279,614
- ---------------------------------------------------------------
Shares redeemed (209,041,375) (402,126,423)
- --------------------------------------------------------------- ------------ ------------
Shares outstanding, end of period 95,163,754 104,321,929
- --------------------------------------------------------------- ------------ ------------
</TABLE>
* For the six months ended March 31, 1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fee--Federated Management, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
.50 of 1% of the Trust's average daily net assets. Adviser may voluntarily
choose to waive a portion of its fee. Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
Administrative Fee--Federated Administrative Services and Federated
Administration Services Inc. collectively provided the Trust administrative
personnel and services. Prior to March 1, 1994, these services were provided at
approximate cost. Effective March 1, 1994, the fee is based on the level of
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors for the period. The administrative fee received during any
fiscal year shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
Shareholder Service Fees--Under the terms of a Shareholder Service Agreement
with Federated Shareholder Services ("FSS") the Trust will pay FSS up to o.25%
of 1% of average net assets for the
CALIFORNIA MUNICIPAL CASH TRUST
- --------------------------------------------------------------------------------
Trust for the period. This fee is to obtain certain personal services for
shareholders and maintenance of shareholder accounts. The fee is based on the
level of average net assets for the Trust for the period.
Transfer Agent and Dividend Disbursing Agent Fees--Federated Services Company
("FServ") serves as transfer agent and dividend disbursing agent for the Trust.
The fee is based on the size, type and number of accounts and transactions made
by shareholders.
Organization Expenses--Organizational expenses of $32,354 were borne initially
by Adviser. The Trust has agreed to reimburse Adviser at an annual rate of .005
of 1% of average daily net assets until expenses initially borne by Adviser are
fully reimbursed or the expiration of five years after March 15, 1989, the date
the Trust's registration statement first became effective, whichever occurs
earlier. For the six months ended March 31, 1994, the Trust paid Adviser $2,492
pursuant to this agreement.
17a-7--During the six months ended March 31, 1994, the Trust engaged in purchase
and sale transactions with other funds advised by the Adviser pursuant to Rule
17a-7 of the Investment Company Act of 1940 amounting to $89,900,000 and
$105,070,000, respectively. These purchases and sales were conducted on an
arms-length basis and transacted for cash consideration only, at independent
current market prices and without brokerage commission, fee or other
remuneration.
Certain Officers and Trustees of the Trust are Officers and Trustees of the
above companies.
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Glen R. Johnson
James E. Dowd President
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Glen R. Johnson Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer Edward C. Gonzales
Wesley W. Posvar Vice President and Treasurer
Marjorie P. Smuts John W. McGonigle
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
S. Elliott Cohan
Assistant Secretary
</TABLE>
Mutual funds are not obligations of or insured by any bank nor are they insured
by the
federal government or any of its agencies.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Trust's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
