PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Government
Obligations Fund (the "Fund"). The report covers the six-month period ended
January 31, 1995. It begins with the Fund's Investment Review, followed by
Financial Statements which include the Portfolio of Investments. In addition,
separate Financial Highlights tables have been included for both classes of
shares of the Fund ("Institutional Shares" and "Institutional Service Shares").
The Fund pursues current income consistent with stability of principal. In
addition, you have daily access to your money. At the end of the period, the
Fund's portfolio was invested in repurchase agreements fully collateralized by
U.S. government securities, and in short-term U.S. government obligations.
During the six-month reporting period, dividends paid to holders of
Institutional Shares totaled $25.6 million, or $0.03 per share. For the same
period, dividends paid to holders of Institutional Service Shares totaled $1.1
million, or $0.02 per share. A the end of the period, net assets stood at $1.4
billion.
Thank you for your confidence in the Fund. As always, your questions and
comments are welcome.
Sincerely,
J. Christopher Donahue
President
March 15, 1995
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Government Obligations Fund (the "Fund") is invested in direct U.S. Treasury and
agency obligations and in repurchase agreements which have these securities as
collateral. The Fund continued to invest in issues of the Federal National
Mortgage Association, Student Loan Marketing Association, Farm Credit Bank
System, Federal Home Loan Bank System, and Federal Home Loan Mortgage Corp. The
Fund has been combining attractive yields from overnight repurchase agreements
collateralized by mortgage-backed securities with short-term agency floating
rate notes and longer maturity Treasury and agency securities. Recently, the
Fund has been managed with a rather conservative average maturity of 30-40 days.
The Federal Reserve Board (the "Fed") continued to tighten monetary policy over
the semi-annual reporting period, raising the Federal Funds target rate 125
basis points from 4.25% to 5.50%. Short-term interest rates led the Fed moves
upward, as the rate on the six month Treasury bill rose from 4.9% to 6.4% over
the reporting period. The 7-day net yield for Institutional Shares and
Institutional Service Shares followed suit, rising from 4.19% to 5.58% and from
3.96% to 5.33%, respectively.*
The Fund's average maturity remained in the 30-40 day target range that it
adopted with the onset of the firming in rates by the Fed in February 1994. The
Fund continued to combine attractive yields from repurchase agreements
collateralized by U.S. government mortgage-backed securities with short-term
agency floating rate notes and Treasury and agency securities with longer
maturities of 6 to 12 months. This portfolio structure continues to provide a
competitive yield.
Shortly after the end of January, the Fed moved once more, raising the target
rate to its current level of 6%. A year after it began, it appears that the Fed
may be nearing the end of its tightening process, having raised the Federal
Funds rate by 300 basis points. There are signs of slowing in economic growth
and indications that inflation is still being held reasonably in check, and
expectations are that the Fed will be cautious in increasing rates further
before the effects of the policy moves taken so far are known. Additional
tightenings from the Fed cannot be ruled out completely, however. The Fund would
look to reinforce its barbelled structure should market opportunities permit,
and will continue to maximize performance through ongoing relative value
analysis. However, changing economic and market developments are continuously
monitored to best serve our clients attracted to the short-term U.S. government
market.
*Performance quoted represents past performance and is not indicative of future
results. Yield will vary.
GOVERNMENT OBLIGATIONS FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
SHORT-TERM OBLIGATIONS--45.0%
----------------------------------------------------------------------------------------------
*FEDERAL HOME LOAN BANK, DISCOUNT NOTES--4.7%
------------------------------------------------------------------------------
$ 68,000,000 5.06%-7.12%, 2/22/1995-11/22/1995 $ 66,612,707
------------------------------------------------------------------------------ ----------------
**FEDERAL HOME LOAN BANK, FLOATING RATE NOTES--1.4%
------------------------------------------------------------------------------
19,000,000 5.93%, 2/7/1995 18,994,175
------------------------------------------------------------------------------ ----------------
*FEDERAL HOME LOAN MORTGAGE CORP., DISCOUNT NOTES--1.3%
------------------------------------------------------------------------------
18,000,000 5.72%-5.83%, 4/4/1995 17,825,005
------------------------------------------------------------------------------ ----------------
**FEDERAL HOME LOAN MORTGAGE CORP., FLOATING RATE NOTES--1.2%
------------------------------------------------------------------------------
16,500,000 5.71%, 2/2/1995 16,491,411
------------------------------------------------------------------------------ ----------------
*FEDERAL NATIONAL MORTGAGE ASSOCIATION, DISCOUNT NOTES--22.9%
------------------------------------------------------------------------------
325,835,000 5.01%-6.89%, 2/1/1995-7/17/1995 322,172,795
------------------------------------------------------------------------------ ----------------
**FEDERAL NATIONAL MORTGAGE ASSOCIATION, FLOATING RATE NOTES--4.2%
------------------------------------------------------------------------------
60,000,000 5.86%-5.94%, 2/2/1995-2/7/1995 59,316,122
------------------------------------------------------------------------------ ----------------
*FEDERAL FARM CREDIT BANK, DISCOUNT NOTES--0.6%
------------------------------------------------------------------------------
9,000,000 6.84%, 6/13/1995 8,781,540
------------------------------------------------------------------------------ ----------------
**HOUSING AND URBAN DEVELOPMENT, FLOATING RATE NOTES--2.9%
------------------------------------------------------------------------------
39,995,000 6.70%, 2/1/1995 39,995,000
------------------------------------------------------------------------------ ----------------
*STUDENT LOAN MARKETING ASSOCIATION, DISCOUNT NOTES--0.6%
------------------------------------------------------------------------------
8,760,000 5.76%, 4/5/1995 8,674,152
------------------------------------------------------------------------------ ----------------
**STUDENT LOAN MARKETING ASSOCIATION, FLOATING RATE NOTES--1.9%
------------------------------------------------------------------------------
26,230,000 6.11%-6.56%, 2/7/1995 26,272,787
------------------------------------------------------------------------------ ----------------
*U.S. TREASURY BILLS--1.9%
------------------------------------------------------------------------------
27,000,000 3.73%-6.43%, 2/9/1995-8/24/1995 26,237,643
------------------------------------------------------------------------------ ----------------
U.S. TREASURY NOTES--1.4%
------------------------------------------------------------------------------
20,000,000 5.50%-8.50%, 2/15/1995-5/15/1995 20,064,834
------------------------------------------------------------------------------ ----------------
TOTAL SHORT-TERM OBLIGATIONS 631,438,171
------------------------------------------------------------------------------ ----------------
(A)REPURCHASE AGREEMENTS--57.7%
----------------------------------------------------------------------------------------------
60,000,000 BT Securities Corp., 5.86%, dated 1/31/1995, due 2/1/1995 60,000,000
------------------------------------------------------------------------------
7,800,000 BZW Securities, Inc., 5.84%, dated 1/31/1995, due 2/1/1995 7,800,000
------------------------------------------------------------------------------
</TABLE>
GOVERNMENT OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
(A)REPURCHASE AGREEMENTS--CONTINUED
----------------------------------------------------------------------------------------------
$ 40,000,000 Deutsche Bank Government Securities, Inc., 5.89%, dated
1/31/1995, due 2/1/1995 $ 40,000,000
------------------------------------------------------------------------------
55,000,000 Fuji Government Securities, Inc., 5.89%, dated 1/31/1995, due
2/1/1995 55,000,000
------------------------------------------------------------------------------
60,000,000 HSBC Securities, Inc., 5.89%, dated 1/31/1995, due 2/1/1995 60,000,000
------------------------------------------------------------------------------
25,000,000 J.P. Morgan & Co., Inc., 5.92%, dated 1/31/1995, due 2/1/1995 25,000,000
------------------------------------------------------------------------------
60,000,000 Merrill Lynch Government Securities, Inc. 5.87%, dated
1/31/1995, due 2/1/1995 60,000,000
------------------------------------------------------------------------------
220,000,000 Morgan Stanley and Co., Inc., 5.90%, dated 1/31/1995, due
2/1/1995 220,000,000
------------------------------------------------------------------------------
170,000,000 UBS Securities, Inc., 5.86%, dated 1/31/1995, due 2/1/1995 170,000,000
------------------------------------------------------------------------------
32,000,000 (b)Lehman Government Securities, Inc., 5.60%, dated 1/11/1995, due 2/1/1995 32,000,000
------------------------------------------------------------------------------
28,000,000 (b)Goldman, Sachs and Co., 5.75%, dated 1/5/1995, due 2/6/1995 28,000,000
------------------------------------------------------------------------------
30,000,000 (b)Goldman, Sachs and Co., 5.92%, dated 1/26/1995, due 2/27/1995 30,000,000
------------------------------------------------------------------------------
22,000,000 (b)First Boston Corp., 6.00%, dated 1/20/1995, due 3/21/1995 22,000,000
------------------------------------------------------------------------------ ----------------
TOTAL REPURCHASE AGREEMENTS 809,800,000
------------------------------------------------------------------------------ ----------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 1,441,238,171+
------------------------------------------------------------------------------ ----------------
</TABLE>
* Each issue shows the rate of discount at the time of purchase.
** Current rate and next demand date shown.
(a) 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.
(b) Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement.
Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($1,404,124,814) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
GOVERNMENT OBLIGATIONS FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
-----------------------------------------------------------------------------------------------
Investments in repurchase agreements $ 809,800,000
-------------------------------------------------------------------------------
Investments in securities 631,438,171
------------------------------------------------------------------------------- --------------
Total investments, at amoritzed cost and value $ 1,441,238,171
-----------------------------------------------------------------------------------------------
Cash 97,233
-----------------------------------------------------------------------------------------------
Income receivable 2,306,587
-----------------------------------------------------------------------------------------------
Receivable for shares sold 50,491
----------------------------------------------------------------------------------------------- ----------------
Total assets 1,443,692,482
-----------------------------------------------------------------------------------------------
LIABILITIES:
-----------------------------------------------------------------------------------------------
Payable for investments purchased 34,500,000
-------------------------------------------------------------------------------
Income distribution payable 4,983,039
-------------------------------------------------------------------------------
Accrued expenses 84,629
------------------------------------------------------------------------------- --------------
Total liabilities 39,567,668
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS for 1,404,124,814 shares outstanding $ 1,404,124,814
----------------------------------------------------------------------------------------------- ----------------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
-----------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES:
-----------------------------------------------------------------------------------------------
($1,198,120,473 / 1,198,120,473 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
INSTITUTIONAL SERVICE SHARES:
-----------------------------------------------------------------------------------------------
($206,004,341 / 206,004,341 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
GOVERNMENT OBLIGATIONS FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------------------------
Interest income $ 27,750,250
---------------------------------------------------------------------------------------------------
EXPENSES:
-------------------------------------------------------------------------------------
Investment advisory fee $ 1,052,944
-------------------------------------------------------------------------------------
Administrative personnel and services fee 398,539
-------------------------------------------------------------------------------------
Custodian fees 83,691
-------------------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 19,819
-------------------------------------------------------------------------------------
Trustees' fees 3,682
-------------------------------------------------------------------------------------
Auditing fees 6,560
-------------------------------------------------------------------------------------
Legal fees 6,446
-------------------------------------------------------------------------------------
Portfolio accounting fees 72,465
-------------------------------------------------------------------------------------
Institutional Service Shares--Shareholder services fee 51,112
-------------------------------------------------------------------------------------
Share registration costs 43,759
-------------------------------------------------------------------------------------
Printing and postage 3,215
-------------------------------------------------------------------------------------
Insurance premiums 8,402
-------------------------------------------------------------------------------------
Taxes 6,663
-------------------------------------------------------------------------------------
Miscellaneous 5,133
------------------------------------------------------------------------------------- ------------
Total expenses 1,762,430
-------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 658,355
------------------------------------------------------------------------------------- ------------
Net expenses 1,104,075
--------------------------------------------------------------------------------------------------- -------------
Net investment income $ 26,646,175
--------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
GOVERNMENT OBLIGATIONS FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
<S> <C> <C>
--------------------------------------------------------------------------- ------------------ -----------------
INCREASE (DECREASE) IN NET ASSETS:
---------------------------------------------------------------------------
OPERATIONS--
---------------------------------------------------------------------------
Net investment income $ 26,646,175 $ 22,768,833
---------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS--
---------------------------------------------------------------------------
Institutional Shares--Distributions from net
investment income (25,550,045) (22,768,833)
---------------------------------------------------------------------------
Institutional Service Shares--Distributions from net
investment income (1,096,130) 0
--------------------------------------------------------------------------- ------------------ -----------------
Change in net assets resulting from distributions
to shareholders (26,646,175) (22,768,833)
---------------------------------------------------------------------------
SHARE TRANSACTIONS--
---------------------------------------------------------------------------
Proceeds from sale of Shares 3,053,772,999 3,045,297,053
---------------------------------------------------------------------------
Net asset value of Shares issued to shareholders in
payment of distributions declared 4,028,993 1,181,007
---------------------------------------------------------------------------
Cost of Shares redeemed (2,417,556,042) (2,989,745,626)
--------------------------------------------------------------------------- ------------------ -----------------
Change in net assets resulting from share
transactions 640,245,950 56,732,434
--------------------------------------------------------------------------- ------------------ -----------------
Change in net assets 640,245,950 56,732,434
---------------------------------------------------------------------------
NET ASSETS:
---------------------------------------------------------------------------
Beginning of period 763,878,864 707,146,430
--------------------------------------------------------------------------- ------------------ -----------------
End of period $ 1,404,124,814 $ 763,878,864
--------------------------------------------------------------------------- ------------------ -----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
GOVERNMENT OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31,
1995 YEAR ENDED JULY 31,
(UNAUDITED) 1994 1993 1992 1991 1990(A)
<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 0.03 0.03 0.05 0.07 0.03
---------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------
Distributions from net investment income (0.03) (0.03) (0.03) (0.05) (0.07) (0.03)
--------------------------------------------------- ----- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------- ----- --------- --------- --------- --------- ---------
TOTAL RETURN (B) 2.53% 3.41% 3.22% 4.70% 7.20% 2.80%
---------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------------------
Expenses 0.20(c) 0.20% 0.20% 0.20% 0.20% 0.20%(c)
---------------------------------------------------
Net investment income 5.05(c) 3.38% 3.16% 4.55% 6.77% 8.24%(c)
---------------------------------------------------
Expense waiver/reimbursement (d) 0.13(c) 0.15% 0.11% 0.12% 0.22% 0.34%(c)
---------------------------------------------------
SUPPLEMENTAL DATA
---------------------------------------------------
Net assets, end of period (000 omitted) $1,198,120 $763,879 $707,146 $679,533 $331,454 $148,598
---------------------------------------------------
</TABLE>
(a) Reflects operations for the period from March 31, 1990 (date of initial
public investment) to July 31, 1990.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This volunatry 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)
GOVERNMENT OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31,
1995(A)
(UNAUDITED)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
---------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------
Net investment income 0.02
---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------
Distributions from net investment income (0.02)
--------------------------------------------------------------------------------------------------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00
--------------------------------------------------------------------------------------------------- -------
TOTAL RETURN (B) 2.40%
---------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------------------------------------------------------------------
Expenses 0.45%(c)
---------------------------------------------------------------------------------------------------
Net investment income 5.36%(c)
---------------------------------------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.13%(c)
---------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $206,004
---------------------------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from August 1, 1994, (date of initial
public investment) to January 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.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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)
GOVERNMENT OBLIGATIONS FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Money Markey 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 5 diversified portfolios. The
financial statements included herein are only those of Government 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
Fund offers 2 classes of shares; Institutional Shares and Institutional Service
Shares.
(2) 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 of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the 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 in support of
repurchase agreement investments. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of
each repurchase agreement's underlying collateral to ensure that the value
of collateral at least equals the principal amount of the repurchase
agreement, including accrued interest.
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
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.
INVESTMENT INCOME, EXPENSES, AND DISTRIBUTIONS--Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the
"Code"). Distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the 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 taxable income.
Accordingly, no provisions for federal tax are necessary.
GOVERNMENT OBLIGATIONS FUND
--------------------------------------------------------------------------------
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.
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) for each
class of shares.
At January 31, 1995, capital paid-in aggregated $1,404,124,814.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED JULY 31,
JANUARY 31, 1995 1994
<S> <C> <C>
INSTITUTIONAL SHARES
------------------------------------------------------------------------------
Shares sold 2,721,199,885 3,045,297,053
------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 3,606,105 1,181,007
------------------------------------------------------------------------------
Shares redeemed (2,290,564,131) (2,989,745,626)
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from Institutional Shares' transactions 434,241,859 56,732,434
------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
PERIOD YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1995(A) 1994
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES
-----------------------------------------------------------------------------------
Shares sold 332,573,114 --
-----------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 422,888 --
-----------------------------------------------------------------------------------
Shares redeemed (126,991,911) --
----------------------------------------------------------------------------------- --------------- ------------
Net change resulting from Institutional Service Shares' transactions 206,004,091 --
----------------------------------------------------------------------------------- --------------- ------------
Net change resulting from Trust share transactions 640,245,950 56,732,434
----------------------------------------------------------------------------------- --------------- ------------
</TABLE>
(a) Reflects operations for the period from July 5, 1994 (date of initial public
offering) to January 31, 1995.
GOVERNMENT OBLIGATIONS FUND
--------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to 0.20 of 1% of the average daily net assets. The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS"), under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. The FAS 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 the period of the
Administrative Services Agreement shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to 0.25 of
1% of average daily net assets of the Fund for the period. This fee is to obtain
certain services for shareholders and to maintain the shareholder accounts. For
the six months ended January 31, 1995, Institutional Shares did not incur a
Shareholder Services Fee.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund. This fee is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also 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 OFFICERS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. J. Christopher Donahue
William J. Copeland President
J. Christopher Donahue Richard B. Fisher
James E. Dowd Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Vice President and Treasurer
Peter E. Madden John W. McGonigle
Gregor F. Meyer Vice President and Secretary
Wesley W. Posvar David M. Taylor
Marjorie P. Smuts Assistant Treasurer
Jeannette Fisher-Garber
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board, or
any other government agency. Investment in mutual funds involves
investment risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Prime
Obligations Fund (the "Fund"). The report covers the six-month period ended
January 31, 1995. It begins with the Fund's Investment Review, followed by
Financial Statements which include the Portfolio of Investments. In addition,
separate Financial Highlights tables have been included for both classes of
shares of the Fund ("Institutional Shares" and "Institutional Service Shares").
The Fund pursues current income consistent with stability of principal through a
diversified portfolio of short-term, high quality money market securities. In
addition, you have daily access to your money.
During the six-month reporting period, dividends paid to holders of
Institutional Shares totaled $42.8 million, or $0.03 per share. For the same
period, dividends paid to holders of Institutional Service Shares totaled $2.4
million, or $0.02 per share. At the end of the period, net assets stood at $2.5
billion.
Thank you for your confidence in the Fund. We welcome your questions and
comments.
Sincerely,
J. Christopher Donahue
President
March 15, 1995
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Prime Obligations Fund (the "Fund") invests primarily in money market
instruments maturing in thirteen 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.
During the reporting period, the Federal Reserve Board (the "Fed") continued its
restrictive interest rate stance. The Fed tightened monetary policy by
increasing the Federal Funds target rate from 4.25% to 5.50% over the period.
Despite the continued low inflationary environment, solid economic growth,
growing employment rolls and capacity constraints would point toward another
increase to the targeted Federal Funds rate early in 1995.
The target average maturity range for the Fund has remained in its current 30-40
day range throughout the reporting time period. This reflects management's
continuing bias that the money market yield curve is fairly steep, and value can
be obtained through both structure as well as by stepping out the curve a bit.
In structuring the Fund, there is continued emphasis placed on positioning 25%
to 30% of the Fund's assets in variable rate demand notes and accomplishing a
modest barbell structure.
Being on the shorter end of the average maturity spectrum has proven to be
helpful over the reporting period. The Fed has raised short-term rates two times
since July 31, 1994. Despite the fact that the Consumer Price Index and the
Producer Price Index indicate moderate inflationary levels, the Fed continues to
fight "inflation expectations".
During the six months ended January 31, 1995, the net assets of the Fund
increased from $1.3 billion to $2.5 billion, while the 7-day yield for
Institutional Shares and Institutional Service Shares increased from 4.30% to
5.76% and from 4.08% to 5.51%, respectively.* The effective average maturity of
the Fund on January 31 was 30 days.
*Performance quoted represents past performance and is not indicative of future
results. Yield will vary.
PRIME OBLIGATIONS FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
*COMMERCIAL PAPER--40.1%
----------------------------------------------------------------------------------------------
BANKING--7.2%
------------------------------------------------------------------------------
$ 6,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National Bank PLC, London),
6.017%, 5/9/1995 $ 5,905,587
------------------------------------------------------------------------------
27,000,000 Bank of Nova Scotia, Toronto, 5.869%, 4/25/1995 26,645,175
------------------------------------------------------------------------------
14,000,000 Canadian Imperial Holdings, Inc., (Guaranteed by Canadian
Imperial Bank of Commerce, Toronto), 5.246%-6.093%,
2/24/1995-3/2/1995 13,946,508
------------------------------------------------------------------------------
24,700,000 City of Cleveland, (Union Bank of Switzerland, Zurich LOC), 6.250%, 2/6/1995 24,700,000
------------------------------------------------------------------------------
29,000,000 Commerzbank U.S. Finance, Inc., (Guaranteed by Commerzbank AG, Frankfurt),
5.583%-6.708%, 3/30/1995-7/3/1995 28,656,438
------------------------------------------------------------------------------
25,418,000 Queensland Alumina Ltd., (Credit Suisse, Zurich LOC),
6.269%-6.302%, 4/13/1995-4/21/1995 25,087,813
------------------------------------------------------------------------------
8,000,000 Royal Bank of Canada, Montreal, (Guaranteed by Royal Bank of Canada), 6.134%,
4/28/1995 7,884,760
------------------------------------------------------------------------------
18,000,000 Toronto Dominion Holdings (USA), Inc., (Guaranteed by Toronto-Dominion Bank),
5.203%-5.219%, 3/8/1995-3/9/1995 17,909,314
------------------------------------------------------------------------------
30,000,000 UBS Finance (Delaware), Inc., (Guaranteed by Union Bank of Switzerland,
Zurich), 5.831%, 2/1/1995 30,000,000
------------------------------------------------------------------------------ ----------------
Total 180,735,595
------------------------------------------------------------------------------ ----------------
DIVERSIFIED--2.4%
------------------------------------------------------------------------------
62,000,000 Rockwell International Corp., 6.819%-6.824%, 6/2/1995-6/6/1995 60,606,300
------------------------------------------------------------------------------ ----------------
FINANCE-COMMERCIAL--16.5%
------------------------------------------------------------------------------
83,500,000 Asset Securitization Cooperative Corp., 5.734%-6.219%,
2/10/1995-4/28/1995 82,982,257
------------------------------------------------------------------------------
44,500,000 Beta Finance, Inc., 5.340%-6.746%, 3/13/1995-6/27/1995 44,081,347
------------------------------------------------------------------------------
34,000,000 CIESCO, Inc., 5.235%-6.262%, 2/9/1995-5/3/1995 33,543,504
------------------------------------------------------------------------------
50,000,000 CIT Group Holdings, Inc., 5.782%, 2/9/1995 49,936,111
------------------------------------------------------------------------------
</TABLE>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
*COMMERCIAL PAPER--CONTINUED
----------------------------------------------------------------------------------------------
FINANCE-COMMERCIAL--CONTINUED
------------------------------------------------------------------------------
$ 13,400,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.132%-6.677%,
2/2/1995-7/26/1995 $ 13,203,678
------------------------------------------------------------------------------
127,000,000 General Electric Capital Corp., 5.629%-6.718%, 4/6/1995-7/17/1995 124,808,948
------------------------------------------------------------------------------
66,000,000 Sheffield Receivables Corp., 6.253%-6.273%, 5/1/1995-5/2/1995 64,989,499
------------------------------------------------------------------------------ ----------------
Total 413,545,344
------------------------------------------------------------------------------ ----------------
FINANCE-RETAIL--11.7%
------------------------------------------------------------------------------
25,000,000 American General Finance Corp., 5.851%, 2/1/1995 25,000,000
------------------------------------------------------------------------------
60,000,000 Associates Corp. of North America, 5.831%-6.404%,
2/1/1995-4/7/1995 59,601,875
------------------------------------------------------------------------------
53,700,000 Ford Credit Receivables Funding, Inc., 5.883%-6.270%,
2/23/1995-5/4/1995 53,091,057
------------------------------------------------------------------------------
152,000,000 New Center Asset Trust, A1+/P1 Series, 5.209%-6.824%,
2/17/1995-7/21/1995 149,359,177
------------------------------------------------------------------------------
6,000,000 Norwest Financial Corp., 6.255%, 4/27/1995 5,912,875
------------------------------------------------------------------------------ ----------------
Total 292,964,984
------------------------------------------------------------------------------ ----------------
INSURANCE--2.2%
------------------------------------------------------------------------------
43,789,000 Prospect Street Senior Portfolio, L.P., (Guaranteed by Financial Security
Assurance, Inc.), 5.234%-6.880%, 2/2/1995-7/19/1995 43,033,839
------------------------------------------------------------------------------
13,000,000 Prudential Funding Corp., 6.030%, 5/11/1995 12,790,863
------------------------------------------------------------------------------ ----------------
Total 55,824,702
------------------------------------------------------------------------------ ----------------
TOTAL COMMERCIAL PAPER 1,003,676,925
------------------------------------------------------------------------------ ----------------
CORPORATE BONDS--1.1%
----------------------------------------------------------------------------------------------
BANKING--1.1%
------------------------------------------------------------------------------
28,000,000 (a)SMM Trust Series 1994-H, (Guaranteed by Morgan Guaranty Trust Co., NY),
6.034%, 2/22/1995 27,995,249
------------------------------------------------------------------------------ ----------------
</TABLE>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
**VARIABLE RATE INSTRUMENTS--15.6%
----------------------------------------------------------------------------------------------
BANKING--8.9%
------------------------------------------------------------------------------
$ 4,045,000 500 South Front St. L.P., Series A, (Huntington National Bank, Columbus, OH
LOC), 6.360%, 2/2/1995 $ 4,045,000
------------------------------------------------------------------------------
6,500,000 500 South Front St. L.P., Series B, (Huntington National Bank, Columbus, OH
LOC), 6.360%, 2/2/1995 6,500,000
------------------------------------------------------------------------------
12,064,000 Adesa Funding Corp., (Bank One, Indianapolis, IN LOC), 6.220%, 2/2/1995 12,064,000
------------------------------------------------------------------------------
8,610,000 Alexandria Executive Club L.P., (Huntington National Bank, Columbus, OH LOC),
6.360%, 2/2/1995 8,610,000
------------------------------------------------------------------------------
16,900,000 Beverly California Corp., (PNC Bank, N.A. LOC), 6.304%, 2/6/1995 16,900,000
------------------------------------------------------------------------------
1,642,790 Bowling Green Manor L.P., (Huntington National Bank, Columbus, OH LOC),
6.360%, 2/2/1995 1,642,790
------------------------------------------------------------------------------
17,400,000 CMH Funding, (Huntington National Bank, Columbus, OH LOC), 7.040%, 7/3/1995 17,400,000
------------------------------------------------------------------------------
22,105,000 Capital One Funding Corp., (Bank One, Cleveland, N.A. LOC), 6.560%, 2/2/1995 22,105,000
------------------------------------------------------------------------------
1,062,337 Clyde Manor L.P., (Huntington National Bank, Columbus, OH LOC), 6.360%,
2/2/1995 1,062,337
------------------------------------------------------------------------------
4,020,000 Eastwinds Investment, Ltd., (Huntington National Bank, Columbus, OH LOC),
6.360%, 2/2/1995 4,020,000
------------------------------------------------------------------------------
2,485,000 Grote Family L.P., (Huntington National Bank, Columbus, OH LOC), 6.360%,
2/2/1995 2,485,000
------------------------------------------------------------------------------
5,000,000 Hunt Club Apartments, Inc., (Huntington National Bank, Columbus, OH LOC),
6.360%, 2/1/1995 5,000,000
------------------------------------------------------------------------------
4,500,000 Kokosing Construction Co., Inc., (National City Bank, Cleveland, OH LOC),
6.200%, 2/1/1995 4,500,000
------------------------------------------------------------------------------
8,600,000 Mississippi Business Finance Corp., (Comercia Bank, Detroit, MI LOC), 6.360%,
2/2/1995 8,600,000
------------------------------------------------------------------------------
5,000,000 Olen Corp., (National City Bank, Cleveland, OH LOC), 6.20%,
2/1/1995 5,000,000
------------------------------------------------------------------------------
</TABLE>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
**VARIABLE RATE INSTRUMENTS--CONTINUED
----------------------------------------------------------------------------------------------
BANKING--CONTINUED
------------------------------------------------------------------------------
$ 29,000,000 PHH/CFC Leasing, Inc., (Banque Nationale de Paris LOC), 6.320%, 2/1/1995 $ 29,000,000
------------------------------------------------------------------------------
2,350,000 Ramsey Real Estate Enterprises, (National City Bank, Kentucky LOC), 6.200%,
2/2/1995 2,350,000
------------------------------------------------------------------------------
7,900,000 Roby Company Ltd. Partnership, (Huntington National Bank, Columbus, OH LOC),
6.360%, 2/2/1995 7,900,000
------------------------------------------------------------------------------
13,450,000 Rooker, J.W., (Wachovia Bank of Georgia NA, Atlanta LOC), 6.339%, 2/1/1995 13,450,000
------------------------------------------------------------------------------
20,000,000 (a)SMM Trust 1994-B, (Guaranteed by Morgan Guaranty Trust Co., NY), 5.892%,
2/11/1995 19,994,010
------------------------------------------------------------------------------
7,040,000 Shenandoah Partners L.P., (Huntington National Bank, Columbus, OH LOC),
6.360%, 2/2/1995 7,040,000
------------------------------------------------------------------------------
6,100,000 State Industrial Development Authority (Alabama) Miltope Project, Series 1994,
(First Alabama Bank, Birmingham LOC), 6.610%, 2/2/1995 6,100,000
------------------------------------------------------------------------------
3,526,000 Vista Funding Corp., (Bank One, Akron, N.A. LOC), 6.220%,
2/2/1995 3,526,000
------------------------------------------------------------------------------
6,678,000 Vista Funding Corp., (Fifth Third Bank of Northwestern OH LOC), 6.360%,
2/2/1995 6,678,000
------------------------------------------------------------------------------
1,011,431 Wauseon Manor II L.P., (Huntington National Bank, Columbus, OH LOC), 6.360%,
2/2/1995 1,011,431
------------------------------------------------------------------------------
3,775,000 Wexner Heritage House, (Huntington National Bank, Columbus, OH LOC), 6.360%,
2/2/1995 3,775,000
------------------------------------------------------------------------------
2,500,000 YMCA of Central, OH, (Huntington National Bank, Columbus, OH LOC), 6.360%,
2/2/1995 2,500,000
------------------------------------------------------------------------------ ----------------
Total 223,258,568
------------------------------------------------------------------------------ ----------------
ELECTRICAL EQUIPMENT--1.7%
------------------------------------------------------------------------------
13,058,538 GS Funding Corp., (Guaranteed by General Electric Co.), 6.304%, 2/6/1995 13,058,537
------------------------------------------------------------------------------
6,000,000 Lauda Air, (Guaranteed by General Electric Co.), 6.337%, 2/1/1995 6,000,000
------------------------------------------------------------------------------
</TABLE>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
**VARIABLE RATE INSTRUMENTS--CONTINUED
----------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--CONTINUED
------------------------------------------------------------------------------
$ 25,388,464 Northwest Airlines, Inc., (Guaranteed by General Electric Co.), 6.337%,
2/6/1995 $ 25,388,464
------------------------------------------------------------------------------ ----------------
Total 44,447,001
------------------------------------------------------------------------------ ----------------
FINANCE-AUTOMOTIVE--2.9%
------------------------------------------------------------------------------
32,000,000 Carco Auto Loan Master Trust, Series 1993-2, 5.791%, 2/15/1995 32,000,000
------------------------------------------------------------------------------
40,000,000 Money Market Auto Loan Trust, 5.896%, 2/15/1995 40,000,000
------------------------------------------------------------------------------ ----------------
Total 72,000,000
------------------------------------------------------------------------------ ----------------
INSURANCE--1.0%
------------------------------------------------------------------------------
25,000,000 (a)Peoples Security Life Insurance, 6.290%, 2/1/1995 25,000,000
------------------------------------------------------------------------------ ----------------
MUNICIPAL--1.1 %
------------------------------------------------------------------------------
26,700,000 (a)City of Columbus, Ohio, 6.610%, 2/2/1995 26,700,000
------------------------------------------------------------------------------ ----------------
TOTAL VARIABLE RATE INSTRUMENTS 391,405,569
------------------------------------------------------------------------------ ----------------
***REPURCHASE AGREEMENTS--43.4%
----------------------------------------------------------------------------------------------
130,000,000 Chase Securities, Inc., 5.800%, dated 1/31/1995, due 2/1/1995 130,000,000
------------------------------------------------------------------------------
218,000,000 Chemical Banking Corp., 5.820%, dated 1/31/1995, due 2/1/1995 218,000,000
------------------------------------------------------------------------------
250,000,000 First Chicago Capital Markets, Inc., 5.820%, dated 1/31/1995,
due 2/1/1995 250,000,000
------------------------------------------------------------------------------
130,000,000 Fuji Government Securities, Inc., 5.820%, dated 1/31/1995,
due 2/1/1995 130,000,000
------------------------------------------------------------------------------
250,000,000 Lehman Government Securities, Inc., 5.830%, dated 1/31/1995,
due 2/1/1995 250,000,000
------------------------------------------------------------------------------
90,000,000 Nationsbank of North Carolina N.A., 5.820%, dated 1/31/1995,
due 2/1/1995 90,000,000
------------------------------------------------------------------------------
</TABLE>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
***REPURCHASE AGREEMENTS--CONTINUED
----------------------------------------------------------------------------------------------
$ 20,500,000 State Street Bank and Trust Co., Boston, MA, 5.820%,
dated 1/31/1995, due 2/1/1995 $ 20,500,000
------------------------------------------------------------------------------ ----------------
TOTAL REPURCHASE AGREEMENTS 1,088,500,000
------------------------------------------------------------------------------ ----------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 2,511,577,743+
------------------------------------------------------------------------------ ----------------
</TABLE>
* Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
** Current rate and next reset date shown.
*** Repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
(a) Restricted Securities.
Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,505,887,460) at January 31, 1995.
The following abbreviation is used throughout this portfolio:
LOC--Letter of Credit
(See Notes which are an integral part of the Financial Statements.)
PRIME OBLIGATIONS FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
-----------------------------------------------------------------------------------------------
Investments in repurchase agreements $ 1,088,500,000
-----------------------------------------------------------------------------
Investments in securities 1,423,077,743
----------------------------------------------------------------------------- ----------------
Total investments, at amortized cost and value $ 2,511,577,743
-----------------------------------------------------------------------------------------------
Income receivable 2,937,444
-----------------------------------------------------------------------------------------------
Receivable for shares sold 39,237
----------------------------------------------------------------------------------------------- ----------------
Total assets 2,514,554,424
-----------------------------------------------------------------------------------------------
LIABILITIES:
-----------------------------------------------------------------------------------------------
Income distribution payable 8,317,966
-----------------------------------------------------------------------------
Accrued expenses 43,401
-----------------------------------------------------------------------------
Payable to Bank 305,597
----------------------------------------------------------------------------- ----------------
Total liabilities 8,666,964
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS for 2,505,887,460 shares outstanding $ 2,505,887,460
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS VALUE, Offering Price and Redemption Proceeds Per Share:
-----------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES:
-----------------------------------------------------------------------------------------------
($2,348,306,099 / 2,348,306,099 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
INSTITUTIONAL SERVICE SHARES:
-----------------------------------------------------------------------------------------------
($157,581,361 / 157,581,361 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
PRIME OBLIGATIONS FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------------------------
Interest $ 47,165,529
---------------------------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------------------------
Investment advisory fee $ 1,767,789
-------------------------------------------------------------------------------------
Administrative personnel and services fee 669,108
-------------------------------------------------------------------------------------
Custodian fees 85,117
-------------------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 27,249
-------------------------------------------------------------------------------------
Trustees' fees 7,000
-------------------------------------------------------------------------------------
Auditing fees 6,375
-------------------------------------------------------------------------------------
Legal fees 11,158
-------------------------------------------------------------------------------------
Portfolio accounting fees 109,350
-------------------------------------------------------------------------------------
Institutional Service Shares--Shareholder services fee 115,646
-------------------------------------------------------------------------------------
Share registration costs 194,606
-------------------------------------------------------------------------------------
Printing and postage 5,250
-------------------------------------------------------------------------------------
Insurance premiums 16,380
-------------------------------------------------------------------------------------
Taxes 10,515
-------------------------------------------------------------------------------------
Miscellaneous 8,950
------------------------------------------------------------------------------------- ------------
Total expenses 3,034,493
-------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 1,150,753
------------------------------------------------------------------------------------- ------------
Net expenses 1,883,740
--------------------------------------------------------------------------------------------------- -------------
Net investment income $ 45,281,789
--------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
PRIME OBLIGATIONS FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
--------------------------------------------------------------------------
OPERATIONS--
--------------------------------------------------------------------------
Net investment income $ 45,281,789 $ 41,204,591
-------------------------------------------------------------------------- ------------------ -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
--------------------------------------------------------------------------
Institutional Shares--Distributions from net
investment income (42,846,135) (41,183,125)
--------------------------------------------------------------------------
Institutional Service Shares--Distributions from net
investment income (2,435,654) (21,466)
-------------------------------------------------------------------------- ------------------ -----------------
Change in net assets resulting from
distributions to shareholders (45,281,789) (41,204,591)
-------------------------------------------------------------------------- ------------------ -----------------
SHARE TRANSACTIONS--
--------------------------------------------------------------------------
Proceeds from sale of Shares 13,741,680,250 8,598,402,134
--------------------------------------------------------------------------
Net asset value of Shares issued to shareholders in
payment of distributions declared 12,692,842 6,605,494
--------------------------------------------------------------------------
Cost of Shares redeemed (12,508,852,103) (8,442,800,343)
-------------------------------------------------------------------------- ------------------ -----------------
Change in net assets resulting from share
transactions 1,245,520,989 162,207,285
-------------------------------------------------------------------------- ------------------ -----------------
Change in net assets 1,245,520,989 162,207,285
--------------------------------------------------------------------------
NET ASSETS:
--------------------------------------------------------------------------
Beginning of period 1,260,366,471 1,098,159,186
-------------------------------------------------------------------------- ------------------ -----------------
End of period $ 2,505,887,460 $ 1,260,366,471
-------------------------------------------------------------------------- ------------------ -----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
PRIME OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31,
1995 YEAR ENDED JULY 31,
(UNAUDITED) 1994 1993 1992 1991 1990(A)
<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 0.03 0.03 0.05 0.07 0.03
----------------------------------------------------
LESS DISTRIBUTIONS
----------------------------------------------------
Distributions from net investment income (0.03) (0.03) (0.03) (0.05) (0.07) (0.03)
---------------------------------------------------- ------ ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------- ------ ----- ----- ----- ----- -----
TOTAL RETURN (B) 2.58% 3.47% 3.25% 4.74% 7.30% 2.89%
----------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
----------------------------------------------------
Expenses 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%(c)
----------------------------------------------------
Net investment income 5.12%(c) 3.47% 3.20% 4.53% 6.54% 8.21%(c)
----------------------------------------------------
Expense waiver/reimbursement (d) 0.13%(c) 0.14% 0.09% 0.10% 0.24% 0.68%(c)
----------------------------------------------------
SUPPLEMENTAL DATA
----------------------------------------------------
NET ASSETS, END OF PERIOD (000 OMITTED) $2,348,306 $1,250,979 $1,098,159 $917,418 $473,593 $34,777
----------------------------------------------------
</TABLE>
(a) Reflects operations for the period from March 26, 1990 (date of initial
public investment) to July 31, 1990.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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)
PRIME OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, YEAR ENDED
1995 JULY 31,
(UNAUDITED) 1994(A)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00
----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------------------------------------------------
Net investment income 0.02 0.003
----------------------------------------------------------------------------------
LESS DISTRIBUTIONS
----------------------------------------------------------------------------------
Distributions from net investment income (0.02) (0.003)
---------------------------------------------------------------------------------- ------- --------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
---------------------------------------------------------------------------------- ------- --------------
TOTAL RETURN (B) 2.45% 0.30%
----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
----------------------------------------------------------------------------------
Expenses 0.45%(c) 0.34%(c)
----------------------------------------------------------------------------------
Net investment income 5.27%(c) 4.68%(c)
----------------------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.13%(c) 0.14%(c)
----------------------------------------------------------------------------------
SUPPLEMENTAL DATA
----------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $157,581 $9,387
----------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This volunatry 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)
PRIME OBLIGATIONS FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) 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 5 diversified portfolios. The financial
statements presented herein present 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 Fund offers 2
classes of shares; Institutional Shares and Institutional Service Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the 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 in support of
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 underlying securities to ensure that the value
of collateral at least equals the repurchase price to be paid under the
repurchase agreement transaction.
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 guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees").
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discounts, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the 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
provisions for federal tax are necessary.
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
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 Board of
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 Investment Company Act of 1940. Additional information on
each restricted security held at January 31, 1995 is as follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
<S> <C> <C>
Peoples Security Life Insurance 7/11/94 25,000,000
City of Columbus 1/30/95 26,700,000
SMM Trust Series 1994-H 11/22/94 - 12/29/94 28,000,000
SMM Trust Series 1994-B 9/7/94 20,000,000
</TABLE>
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) for each
class of shares. At January 31, 1995, capital paid-in aggregated $2,505,887,460.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED JULY 31,
INSTITUTIONAL SHARES JANUARY 31, 1995 1994
<S> <C> <C>
Shares sold 12,135,270,589 8,582,784,664
----------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 12,105,310 6,585,754
----------------------------------------------------------------------------
Shares redeemed (11,050,049,062) (8,436,550,343)
---------------------------------------------------------------------------- ----------------- -----------------
Net change resulting from Institutional Shares transactions 1,097,326,837 152,820,075
---------------------------------------------------------------------------- ----------------- -----------------
</TABLE>
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED JULY 31,
INSTITUTIONAL SERVICE SHARES JANUARY 31, 1995 1994*
Shares sold 1,606,409,661 15,617,470
<S> <C> <C>
----------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 587,532 19,740
----------------------------------------------------------------------------
Shares redeemed (1,458,803,041) (6,250,000)
---------------------------------------------------------------------------- ----------------- -----------------
Net change resulting from Institutional Service Shares
transactions 148,194,152 9,387,210
---------------------------------------------------------------------------- ----------------- -----------------
Net change resulting from Fund share transactions 1,245,520,989 162,207,285
---------------------------------------------------------------------------- ----------------- -----------------
</TABLE>
*For the period from July 5, 1994 (date of initial public offering) to July 31,
1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .20 of 1% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee and reimburse certain operating
expenses of the Fund. The Adviser can modify or terminate this voluntary waiver
and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with administrative personnel and services. The FAS 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 the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to .25 of
1% of average daily net assets of the Fund for the period. This fee is to obtain
certain services for shareholders and to maintain the shareholder accounts. For
the six months ended January 31, 1995, Institutional Shares did not incur a
Shareholder Services Fee.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund. This fee is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also 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.
PRIME OBLIGATIONS FUND
--------------------------------------------------------------------------------
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
TRUSTEES OFFICERS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. J. Christopher Donahue
William J. Copeland President
J. Christopher Donahue Richard B. Fisher
James E. Dowd Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Vice President and Treasurer
Peter E. Madden John W. McGonigle
Gregor F. Meyer Vice President and Secretary
Wesley W. Posvar David M. Taylor
Marjorie P. Smuts Assistant Treasurer
Jeannette Fisher-Garber
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board, or
any other government agency. Investment in mutual funds involves
investment risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Tax-Free
Obligations Fund (the "Fund"). The report covers the six-month period ended
January 31, 1995. It begins with the Fund's Investment Review, followed by
Financial Statements which include the Portfolio of Investments. In addition,
separate Financial Highlights tables have been included for both classes of
shares of the Fund ("Institutional Shares" and "Institutional Service Shares").
Taxes continue to take more of your income than ever. The Fund responds by
helping you keep more of what you earn. It pursues dividend income exempt from
federal regular income tax* consistent with stability of principal through a
diversified portfolio consisting of short-term municipal securities. In
addition, you have daily access to your money.
During the six-month reporting period, tax-free dividends paid to holders of
Institutional Shares totaled $14.0 million or $0.02 per share. For the same
period, dividends to holders of Institutional Service Shares totaled $1.5
million, or $0.02 per share. At the end of the period, net assets stood at $1.1
billion.
Thank you for your confidence in the Fund. We welcome your questions and
comments.
Sincerely,
J. Christopher Donahue
President
March 15, 1995
*Income may be subject to the federal alternative minimum tax and state and
local taxes.
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Tax-Free Obligations Fund (the "Fund") invests in high quality short-term debt
securities, the income from which is exempt from federal regular income tax, and
seeks to maintain a stable net asset value of $1.00 per share. For the six-month
period ended January 31, 1995, the 7-day yield for Institutional Shares and
Institutional Service Shares was 3.61% and 3.36%, respectively.* Assuming a
39.6% federal tax bracket, the tax-equivalent yield at the end of the reporting
period for Institutional Shares and Institutional Service Shares was 5.97% and
5.56%, respectively.**
During the semi-annual reporting period, the Federal Reserve Board (the "Fed")
continued to tighten monetary policy, raising the Federal Funds rate 125 basis
points from 4.25% to 5.50%. Shortly after the report period, on February 1, the
Fed moved once more raising the target rate to its current level of 6.00%. This
move brings the cumulative increase in the Federal Funds target to 300 basis
points since the Fed began its tightening track one year ago.
The money markets responded to the Fed policy with an increase in interest
rates. One year Treasury bills rose from 5.50% in late July to 7.25% in early
January before declining to 6.90% to end the period. Short-term municipal note
rates increased as well, but to a lesser degree. The Bond Buyer Note Index
("BBNI"), a proxy for one year municipal notes offered in the marketplace,
started the period at 4.10% in early August and remained mostly unchanged until
the Fed tightening in mid-November. At that point, the BBNI rose to 4.50% and
continued to rise slowly into December when the effects of Orange County,
California bankruptcy filing and year-end redemptions were felt. The BBNI rose
to as high as 5.10% in early January before declining to 4.90% to end the
reporting period. Technical factors, particularly light new issue note supply,
caused increases in tax-free money market note yields to lag taxable yields over
the period. Actions taken by the Fed caused the yields on variable rate demand
notes ("VRDNs") to increase as well over the period from 2.90% to 3.60%.
However, seasonal technical factors caused VRDN's rates to display significant
volatility. For example, year-end redemptions caused yields to spike from 2.95%
in early December to a period high of 5.60% in late December. A week later in
early January, increased cash positions outpaced supply causing rates to decline
280 basis points to 2.80%. Despite the volatility of tax-exempt money market
rates, the Fund's yield, however, remained attractive compared to taxable
alternatives.
We expect that the Fed may briefly pause to see what effects its tightening
policy has had on the strength of the economy. Short-term interest rates, both
taxable and tax-free, declined since their peak in early January after signs of
a moderation in economic activity appeared and the prospects for a modest rise
in inflation were good. Additional tightenings from the Fed cannot be ruled out
completely, however. As long as the economy continues to grow faster than the
Fed's estimate of potential growth, the Fed will continue to push short-term
rates higher. In this environment of potentially higher short-term rates, we
will continue to keep the average maturity at the short end of our 30-70 day
range while choosing carefully and selectively along the yield curve as
attractive fixed income opportunities appear.
*Performance quoted represents past performance and is not indicative of future
results. Yield will vary.
**No money market mutual fund can guarantee that a stable net asset value will
be maintained. An investment in the Fund is neither insured nor guaranteed by
the U.S. government.
TAX-FREE OBLIGATIONS FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
SHORT-TERM MUNICIPAL SECURITIES--102.3%
<C> <S> <C> <C>
----------------------------------------------------------------------------
ALABAMA--3.7%
-------------------------------------------------------------
$ 1,645,000 Alabama Special Care Facilities, 3.90% Annual TOBs (Series
1984A)/(Montgomery Hospital)/ (AMBAC Insured), (Citibank NA
BPA) Optional Tender 7/1/95 A-1 $ 1,645,000
-------------------------------------------------------------
2,850,000 Birmingham, AL, 5.625% GO BANS (Series 1995A), 01/05/96 NR(2) 2,855,463
-------------------------------------------------------------
12,000,000 Birmingham, AL, GO Weekly VRDNs (Series 1992A)/(First Alabama
Bank LOC) A-1+ 12,000,000
-------------------------------------------------------------
6,500,000 Birmingham, AL, IDA Refunding Weekly VRDNs (S.P. Hotel
Company)/(AmSouth Bank N.A. LOC) VMIG1 6,500,000
-------------------------------------------------------------
1,000,000 Bon Air, AL, IDB Weekly VRDNs (Avondale Mills, Inc.)/(Trust
Company Bank LOC) P-1 1,000,000
-------------------------------------------------------------
2,000,000 Huntsville, AL, Health Care Authority/Health Care Facilities
Weekly VRDNs (Series 1994A)/(MBIA Insured)/(AmSouth Bank N.A.
BPA) A-1 2,000,000
-------------------------------------------------------------
2,200,000 Huntsville, AL, Health Care Authority/Health Care Facilities
Weekly VRDNs (Series 1994B)/(MBIA Insured)/(AmSouth Bank N.A.
BPA) A-1 2,200,000
-------------------------------------------------------------
360,000 Huntsville, AL, IDA Weekly FRDNs (Parkway)/ (First Alabama
Bank LOC) A-1+ 360,000
-------------------------------------------------------------
2,350,000 Madison, AL, IDA Weekly VRDNs (Series A)/ (Executive Inn
Ltd.)/(AmSouth Bank N.A. LOC) A-1 2,350,000
-------------------------------------------------------------
2,500,000 Mobile, AL, IDB, PCR Weekly VRDNs (Series 1993A)/(Alabama
Power Co. Guaranty) A-1 2,500,000
-------------------------------------------------------------
3,000,000 Mobile, AL, IDB, PCR Weekly VRDNs (Series 1993B)/(Alabama
Power Co. Guaranty) A-1 3,000,000
-------------------------------------------------------------
</TABLE>
3
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
ALABAMA--CONTINUED
-------------------------------------------------------------
$ 3,075,000 Mobile, AL, Port City Medical Clinic, 3.25% CP (Series
1992A)/(Fuji Bank and Mitsubishi Bank LOCs), Mandatory Tender
2/21/1995) A-1 $ 3,075,000
-------------------------------------------------------------
1,200,000 Montgomery, AL, IDB, Weekly VRDNs (Series 1988A)/(Smith
Industries)/(Trust Company Bank LOC) A-1 1,200,000
-------------------------------------------------------------
995,000 Tuscaloosa County, AL, Port Authority Weekly VRDNs (Series
1989A)/(Capstone Hotel Ltd.)/ (Southtrust Bank of Alabama
LOC) P-1 995,000
------------------------------------------------------------- ----------------
Total 41,680,463
------------------------------------------------------------- ----------------
ARIZONA--2.0%
-------------------------------------------------------------
5,000,000 Apache County, AZ, IDA Weekly VRDNs (Series 1983A)/(Tucson
Electric Power Company)/(Barclays Bank, PLC, LOC) A-1+ 5,000,000
-------------------------------------------------------------
13,270,000 Arizona Agricultural Improvement & Power
District, 4.10% CP (Salt River Project), Mandatory Tender
2/24/95 A-1+ 13,270,000
-------------------------------------------------------------
4,000,000 Arizona Health Facilities Authority, Weekly VRDNs (University
Physicians, Inc.)/(Bank One, Arizona N.A. LOC) P-1 4,000,000
------------------------------------------------------------- ----------------
Total 22,270,000
------------------------------------------------------------- ----------------
ARKANSAS--0.1%
-------------------------------------------------------------
1,000,000 Sheridan, AR, IDA Weekly VRDNs
(H.H. Robertson Co.)/(PNC Bank N.A. LOC) VMIG1 1,000,000
------------------------------------------------------------- ----------------
CALIFORNIA--11.5%
-------------------------------------------------------------
7,500,000 California School Cash Reserve Program Authority, 4.50% TRANs
(Series 1994A)/(California School Cash Reserve Program),
07/05/1995 MIG1 7,522,847
-------------------------------------------------------------
</TABLE>
4
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
CALIFORNIA--CONTINUED
-------------------------------------------------------------
$ 10,000,000 California School Cash Reserve Program Authority, 4.50% TRANs
(Series 1994A)/(Industrial Bank of Japan Ltd. LOC), 6/28/1995 MIG1 $ 10,025,212
-------------------------------------------------------------
15,000,000 California State Monthly VRNs (Series C) SP-1+ 15,000,000
-------------------------------------------------------------
6,000,000 California State, 5.00% RANs (Series A), 06/28/1995 SP-1+ 6,018,954
-------------------------------------------------------------
20,314,852 California State, FB California Trust/Floating Rate Trust
Certificate, Weekly VRDNs (Series 10)/(Credit Suisse
Financial Products BPA)/(Bank of America NT & SA, Banque
Nationale de Paris, Bank of Nova Scotia, Canadian Imperial
Bank of Commerce, ChemicalBank, Citibank N.A., Credit Suisse,
Morgan Guaranty Trust Co., National Westminster Bank, PLC,
London, Societe Generale North America, Inc., Sumitomo Bank
Ltd., Swiss Bank Corp., Westdeusche Landesbank Girozentrale &
Toronto Dominion Bank LOCs) MIG1 20,314,852
-------------------------------------------------------------
10,000,000 Clipper, CA, Tax-Exempt Trust (94-2), Weekly VRDNs (State
Street Bank and Trust Co. BPA)/ (Toronto-Dominion Bank, Bank
of Nova Scotia, Banque Nationale de Paris, Canadian Imperial
Bank of Commerce, Chemical Bank, Citibank N.A. and Credit
Suisse LOCs) VMIG1 10,000,000
-------------------------------------------------------------
7,000,000 Kern County Community College District, CA, 4.625% BANs (1994
Project Refunding Notes),
7/15/1995 MIG1 7,017,377
-------------------------------------------------------------
15,000,000 Los Angeles County, CA, Metropolitan Transportation
Authority, General Revenue Bonds Weekly VRDNs (Series
1995A)/(Union Station Gateway)/ (FSA Insured)/(Societe
Generale, Paris BPA) A-1+ 15,000,000
-------------------------------------------------------------
</TABLE>
5
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
CALIFORNIA--CONTINUED
-------------------------------------------------------------
$ 15,400,000 Los Angeles County, CA, Metropolitan Transportation
Authority, 4.05% CP (ABN AMRO Bank N.V., Banque Nationale de
Paris, Canadian Imperial Bank of Commerce, National
Westminster Bank, PLC and Bank of California N.A. LOCs),
Mandatory Tender 4/13/1995 A-1 $ 15,400,000
-------------------------------------------------------------
12,000,000 Orange County, CA, IDA, Weekly VRDNs (Series 1991A)/(The
Lakes)/(Citibank N.A. LOC) A-1 12,000,000
-------------------------------------------------------------
5,000,000 San Francisco, (City and County), CA, Unified School
District, 4.75% TRANs (Series 1994),
8/24/1995 SP-1+ 5,015,272
-------------------------------------------------------------
6,000,000 San Jose, CA, Unified School District, 4.25% TRANs, 7/5/1995 SP-1+ 6,013,403
------------------------------------------------------------- ----------------
Total 129,327,917
------------------------------------------------------------- ----------------
COLORADO--1.8%
-------------------------------------------------------------
9,015,000 Arapahoe County, CO, Improvement Authority, 3.90% Semi-Annual
TOBs (Series B & F)/(Societe Generale, Paris LOC), Optional
Tender 2/28/1995 SP-1+ 9,015,000
-------------------------------------------------------------
8,000,000 Arapahoe County, CO, Improvement Authority, 3.90% Semi-Annual
TOBs (Series F)/(Societe Generale GIC), Optional Tender
2/28/1995 SP-1+ 8,000,000
-------------------------------------------------------------
2,625,000 Denver (City & County), CO, 5.20% Annual TOBs (Blake Street
Compendium)/(Norwest Bank
Minnesota LOC), Optional Tender 12/15/1995 A-1+ 2,625,000
------------------------------------------------------------- ----------------
Total 19,640,000
------------------------------------------------------------- ----------------
CONNECTICUT--2.7%
-------------------------------------------------------------
5,770,000 Connecticut Development Health Care Facilities Weekly VRDNs
(Independence Living, Inc.)/(Credit Commercial de France LOC) VMIG1 5,770,000
-------------------------------------------------------------
</TABLE>
6
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
CONNECTICUT--CONTINUED
-------------------------------------------------------------
$ 24,080,000 Connecticut State Transportation Infrastructure
Authority Weekly VRDNs (Industrial Bank of Japan Ltd. LOC) A-1 $ 24,080,000
------------------------------------------------------------- ----------------
Total 29,850,000
------------------------------------------------------------- ----------------
DELAWARE--0.5%
-------------------------------------------------------------
5,100,000 Delaware Health Facilities Authority, Weekly VRDNs (Series
1985 BTP-19A)/(The Medical Center of Delaware)/(MBIA
Insured)/(Bankers Trust Co. BPA) NR(1) 5,100,000
------------------------------------------------------------- ----------------
DISTRICT OF COLUMBIA--1.6%
-------------------------------------------------------------
7,370,000 District of Columbia Health Facility, Weekly VRDNs (Series
1991)/(Army Distaff Foundation, Inc.)/(Nationsbank of
Maryland N.A. LOC) P-1 7,370,000
-------------------------------------------------------------
10,000,000 District of Columbia, 6.25% TRANs (Series 1995A-4/
(Chemical Bank LOC), 09/30/1995 SP-1 10,086,007
------------------------------------------------------------- ----------------
Total 17,456,007
------------------------------------------------------------- ----------------
FLORIDA--12.2%
-------------------------------------------------------------
4,400,000 Alachua County, FL, HFA, Health Facility Revenue Bonds,
Weekly VRDNs (Series 1991)/(North Florida Retirement
Village)/(Kredietbank N.V. LOC) A-1 4,400,000
-------------------------------------------------------------
3,100,000 Columbia County, FL, Health Facility Authority Weekly VRDNs
(Series 1991)/(Lake Shore
Hospital)/(Sumitomo Bank Ltd. LOC) A-1 3,100,000
-------------------------------------------------------------
3,800,000 Dade County, FL, HFA Multi-Family Adjustable Rate Mortgage
Revenue Bonds, Weekly VRDNs (Series 1985-5)/(Fairgreen
Apartments)/(Trust
Company Bank LOC) A-1+ 3,800,000
-------------------------------------------------------------
1,200,000 Dade County, FL, IDA Weekly VRDNs (Continental Farms,
Inc.)/(Nationsbank of Florida N.A. LOC) P-1 1,200,000
-------------------------------------------------------------
</TABLE>
7
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
FLORIDA--CONTINUED
-------------------------------------------------------------
$ 6,625,000 Eustis Health Facilities Authority, FL, Weekly VRDNs (Series
1985)/(Waterman Medical Center, Inc.)/(Banque Paribas LOC) P-1 $ 6,625,000
-------------------------------------------------------------
4,000,000 Florida HFA Weekly VRDNs (Series 1985A)/
(Parrot's Landing)/(Citibank N.A. LOC) A-1 4,000,000
-------------------------------------------------------------
3,000,000 Florida State Board of Education Capital Outlay, 4.30%
Semi-Annual TOBs (CR 49)/(Series 1989A)/ (Citibank, N.A.
BPA), Optional Tender 7/1/1995 NR(2) 3,000,000
-------------------------------------------------------------
3,920,000 Florida State Board of Education Capital Outlay, 4.30%
Semi-Annual TOBs (CR49D)/(Citibank N.A. BPA), Optional Tender
6/1/1995 NR(2) 3,920,000
-------------------------------------------------------------
1,210,000 Florida State Board of Education Capital Outlay, 4.30%
Semi-Annual TOBs (CR55)/(Series 1989A)/ (Citibank, N.A. BPA),
Optional Tender 7/1/1995 NR(2) 1,210,000
-------------------------------------------------------------
2,000,000 Florida State Board of Education Capital Outlay, Weekly VRDNs
Puttable Tax-Exempt Receipts (Series 10)/(Morgan Guaranty
Trust Co. BPA) VMIG1 2,000,000
-------------------------------------------------------------
5,000,000 Florida Sunshine State Governmental Finance Commission, 4.10%
CP (Morgan Guaranty Trust Co., National Westminster Bank,
PLC, London & Union Bank of Switzerland LOCs), Mandatory
Tender 4/10/1995 VMIG1 5,000,000
-------------------------------------------------------------
15,000,000 Hillsborough County, FL, IDA, PCR, Weekly VRDNs (Series
1994)/(Tampa Electric Company)/ (Citibank, NA BPA) NR(2) 15,000,000
-------------------------------------------------------------
4,705,000 Jacksonville, FL, HFDC, Daily VRDNs (River
Garden)/(Banque Paribas LOC) A-1 4,705,000
-------------------------------------------------------------
15,500,000 Jacksonville, FL, Hospital Revenue Bonds Weekly VRDNs (Series
1989)/(Baptist Medical Center)/(First Union National Bank of
North Carolina LOC) A-1 15,500,000
-------------------------------------------------------------
</TABLE>
8
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
FLORIDA--CONTINUED
-------------------------------------------------------------
$ 4,000,000 Jacksonville, FL, PCR, 4.20% CP (Florida Power & Light Co.
Guaranty)/(Series 1992), Mandatory Tender 2/27/1995 A-1 $ 4,000,000
-------------------------------------------------------------
2,900,000 Key West, FL, Community Redevelopment Authority, Weekly VRDNs
(Pier House Joint Venture)/ (PNC Bank N.A. LOC) P-1 2,900,000
-------------------------------------------------------------
2,860,000 Lee County, FL, IDA, Weekly VRDNs (Series 1985)/ (Christian &
Missionary Alliance Foundation)/
(Banque Paribas LOC) A-1 2,860,000
-------------------------------------------------------------
2,925,000 Lee County, FL, Health Care Facility, Weekly VRDNs (Hope
Hospice)/(Sun Bank N.A. LOC) VMIG1 2,925,000
-------------------------------------------------------------
1,900,000 Manatee County, FL, HFA Multi-Family Mortgage Weekly VRDNs
(Series 1989A)/(Hampton/McGuire L.P.)/(Nationsbank of North
Carolina N.A. LOC) A-1 1,900,000
-------------------------------------------------------------
13,000,000 Mount Dora, FL, Health Facility Authority Weekly VRDNs
(Series 1989)/(Waterman Village)/ (Sumitomo Bank LTD. LOC) A-1 13,000,000
-------------------------------------------------------------
7,030,000 Orange County, FL, HFA, Multi-Family Housing Revenue Bonds,
Weekly VRDNs (Sutton Place Ltd.)/(Nationsbank of Maryland
N.A. LOC) A-1 7,030,000
-------------------------------------------------------------
1,000,000 Pinellas County, FL, HFA, Multi-Family Mortgage Revenue
Weekly VRDNs (Series 1989A)/(McGregor Place)/(Nationsbank of
North Carolina N.A. LOC) A-1 1,000,000
-------------------------------------------------------------
1,000,000 Saint Lucie County, FL, IDR Bonds Weekly VRDNs (Series
1985)/(Savannah Hospital)/(Nationsbank of Georgia N.A. LOC) P-1 1,000,000
-------------------------------------------------------------
4,100,000 Sarasota County, FL, Public Hospital District, 4.20% CP
(Sarasota Memorial Hospital), Mandatory Tender 5/15/1995 A-1 4,100,000
-------------------------------------------------------------
</TABLE>
9
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
FLORIDA--CONTINUED
-------------------------------------------------------------
$ 14,300,000 Sarasota County, FL, Public Hospital District, 4.25% CP
(Sarasota Memorial Hospital), Mandatory Tender 5/16/1995 A-1 $ 14,300,000
-------------------------------------------------------------
1,600,000 Suwannee County, FL, Weekly VRDNs (Series 1989)/(Advent
Christian Village)/(Barnett Bank of Jacksonville LOC) VMIG1 1,600,000
-------------------------------------------------------------
6,175,000 Volusia County, FL, HFA, Weekly VRDNs (Fisherman's
Landing)/(Mellon Bank N.A. LOC) P-1 6,175,000
------------------------------------------------------------- ----------------
Total 136,250,000
------------------------------------------------------------- ----------------
GEORGIA--0.5%
-------------------------------------------------------------
1,600,000 Dekalb County, GA, Weekly VRDNs (Series 1992)/ (American
Cancer Society, GA Division, Inc.)/(Trust Company Bank LOC) P-1 1,600,000
-------------------------------------------------------------
3,395,000 Georgia State HFA, Single Family Mortgage Revenue, 3.95%
Quarterly TOBs (Citibank N.A. BPA), Optional Tender 3/1/95 NR(2) 3,395,000
-------------------------------------------------------------
1,000,000 Rockdale County, GA, Hospital Authority Revenue Anticipation
Certificates, Weekly VRDNs (Series 1994)/(Trust Company Bank
LOC) VMIG1 1,000,000
------------------------------------------------------------- ----------------
Total 5,995,000
------------------------------------------------------------- ----------------
HAWAII--0.6%
-------------------------------------------------------------
6,400,000 Hawaii State Puttable Tax-Exempt Receipts Weekly VRDNs
(Series 31)/(Morgan Guaranty Trust Co. LOC) VMIG1 6,400,000
------------------------------------------------------------- ----------------
ILLINOIS--9.5%
-------------------------------------------------------------
7,500,000 Chicago, IL, O'Hare International Airport, Second Lien
Revenue Bonds, 5.00% Semi-Annual TOBs (Series 1984B)/(Westpac
Banking Corp. LOC), Optional Tender 07/01/1995 A-1 7,500,000
-------------------------------------------------------------
</TABLE>
10
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
<S> <C> <C> <C>
----------------------------------------------------------------------------
ILLINOIS--CONTINUED
-------------------------------------------------------------
$ 3,000,000 Illinois Development Finance Authority, Weekly VRDNs
(Newlywed Food)/(Mellon Bank N.A. LOC) A-1 $ 3,000,000
-------------------------------------------------------------
20,300,000 Illinois Development Finance Authority, Weekly VRDNs (Series
1994)/(Museum of Contemporary Art)/(NBD Bank, N.A., Harris
Trust & Savings Bank, Northern Trust Co., and LaSalle
National Bank LOCs) A-1+ 20,300,000
-------------------------------------------------------------
7,500,000 Illinois Educational Facilities Authority, 3.60% CP (Field
Museum of Natural History)/(Sanwa Bank LTD., Osaka LOC),
Mandatory Tender 2/8/1995 P-1 7,500,000
-------------------------------------------------------------
35,000,000 Illinois Health Facilities Authority, 3.01% CP (Series
1985B)/(OSF Health Care Systems)/(Swiss Bank Corp. LOC),
Mandatory Tender 2/1/1995 A-1+ 35,000,000
-------------------------------------------------------------
14,940,000 Illinois Health Facilities Authority, 4.25% CP
(Rush-Presbyterian St. Luke's Medical), Mandatory Tender
4/11/1995 A-1+ 14,940,000
-------------------------------------------------------------
18,000,000 Lisle (Village OF), IL, Multi-Family Housing Mortgage Revenue
Bonds, Weekly VRDNs (Series 1985A)/(Four Lakes)/(Chemical
Bank LOC) A-1 18,000,000
------------------------------------------------------------- ----------------
Total 106,240,000
------------------------------------------------------------- ----------------
INDIANA--1.9%
-------------------------------------------------------------
1,245,000 Dale, IN, IDA, Weekly VRDNs (Spencer Industries, Inc.)/(First
National Bank, Louisville LOC) P-1 1,245,000
-------------------------------------------------------------
17,000,000 Indiana Bond Bank Advance Funding Program Notes, VRNs (Series
1995 A-3) SP-1+ 17,000,000
-------------------------------------------------------------
2,760,000 Indiana Health Facilities Finance Authority Weekly VRDNs
(Rehabilitation Center)/(Bank One,
Indianapolis N.A. LOC) A-1 2,760,000
------------------------------------------------------------- ----------------
Total 21,005,000
------------------------------------------------------------- ----------------
</TABLE>
11
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
KANSAS--0.7%
-------------------------------------------------------------
$ 7,400,000 Praire Village, KS, Weekly VRDNs (Series 1993B)/ (Claridge
Court)/(Banque Paribas LOC) A-1 $ 7,400,000
------------------------------------------------------------- ----------------
KENTUCKY--0.1%
-------------------------------------------------------------
1,650,000 Boone County, KY, Weekly VRDNs (Spring Meadow
Associates)/(Huntington National Bank LOC) P-1 1,650,000
------------------------------------------------------------- ----------------
LOUISIANA--2.6%
-------------------------------------------------------------
9,865,000 Louisiana PFA Advance Funding Notes, 4.60% TANs (Series
1994B)/(Orleans Parish School Board), 08/31/1995 SP-1+ 9,886,942
-------------------------------------------------------------
11,000,000 Louisiana PFA Hospital Revenue, 3.45% CP (Our Lady of Lake
Hospital)/(FSA Insured), Mandatory Tender 2/8/1995 A-1 11,000,000
-------------------------------------------------------------
2,000,000 Louisiana PFA Hospital Revenue, 4.50% CP (Our Lady of Lake
Hospital)/(FSA Insured), Mandatory Tender 5/8/1995 A-1 2,000,000
-------------------------------------------------------------
6,300,000 Louisiana PFA, 3.80% CP (Our Lady of Lake Hospital)/(FSA
Insured), Mandatory Tender 2/9/1995 A-1 6,300,000
------------------------------------------------------------- ----------------
Total 29,186,942
------------------------------------------------------------- ----------------
MARYLAND--3.3%
-------------------------------------------------------------
11,820,000 Maryland State Community Development Administration, 3.90%
Semi-Annual TOBs (Series 1987-2), Optional Tender 4/1/1995 NR(2) 11,820,000
-------------------------------------------------------------
10,200,000 Maryland State HEFA Weekly VRDNs (Series 1985B)/(Pooled Loan
Program)/(Sanwa Bank LTD. LOC) VMIG1 10,200,000
-------------------------------------------------------------
4,700,000 Maryland State HEFA Weekly VRDNs, Revenue Bonds (Series
1985A)/(Dai-Ichi Kangyo Bank LTD. LOC) VMIG1 4,700,000
-------------------------------------------------------------
</TABLE>
12
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
MARYLAND--CONTINUED
-------------------------------------------------------------
$ 1,000,000 Montgomery County, MD, EDA, Weekly VRDNs (Howard Hughes
Medical Institute Guaranty) A-1+ $ 1,000,000
-------------------------------------------------------------
3,400,000 Montgomery County, MD, EDA, Weekly VRDNs (U.S. Pharmacopeial
Convention Facility)/(Chemical Bank LOC) VMIG1 3,400,000
-------------------------------------------------------------
6,000,000 Montgomery County, MD, Housing Opportunities Commission, SFM,
4.35% Annual TOBs (Series 1994C), Optional Tender 10/25/1995 VMIG1 6,000,000
------------------------------------------------------------- ----------------
Total 37,120,000
------------------------------------------------------------- ----------------
MASSACHUSETTS--0.4%
-------------------------------------------------------------
4,500,000 Massachusetts, Municipal Wholesale Electric Company Power
Supply System Bonds, Weekly VRDNs (Series 1994C)/(Canadian
Imperial Bank of Commerce LOC) A-1+ 4,500,000
------------------------------------------------------------- ----------------
MICHIGAN--0.2%
-------------------------------------------------------------
2,300,000 Michigan State Hospital Finance Authority Equipment Loan
Program Bonds, Weekly VRDNs (Series A)/(First of America
Bank-Michigan N.A. LOC) VMIG1 2,300,000
------------------------------------------------------------- ----------------
MINNESOTA--8.1%
-------------------------------------------------------------
2,050,000 Anoka, MN, Multi-Family Housing Revenue Bonds Weekly VRDNs
(Walker Plaza)/(First Bank, N.A. LOC) A-1 2,050,000
-------------------------------------------------------------
6,900,000 Bloomington, MN, ISD Pound271, 3.00% TANs (State of Minnesota
Guaranty), 03/08/1995 NR(2) 6,902,427
-------------------------------------------------------------
2,165,000 Dakota County, MN, Housing and Redevelopment Authority,
Multi-Family Rental Housing Revenue Bonds, Weekly VRDNs
(Series 1994B)/(Westwood Ridge Senior Residence)/(First Bank,
N.A. LOC) A-1 2,165,000
-------------------------------------------------------------
</TABLE>
13
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
MINNESOTA--CONTINUED
-------------------------------------------------------------
$ 10,000,000 Minneapolis, MN, Weekly VRDNs (Series 1993)/ (Commercial
Development)/(Market Square Real Estate, Inc.)/(Norwest Bank
of Minnesota LOC) A-1+ $ 10,000,000
-------------------------------------------------------------
6,000,000 Minnesota State Commissioner of Iron Range Resources &
Rehabilitation, Weekly VRDNs (Series 1991)/(Louisiana Pacific
Corp.)/(Wachovia Bank & Trust Co. LOC) P-1 6,000,000
-------------------------------------------------------------
17,400,000 Minnesota State Higher Education Coordinating Board
Supplemental Student Loan Program Weekly VRDNs (Series 1994A) VMIG1 17,400,000
-------------------------------------------------------------
4,300,000 Minnesota State Higher Education Facility Authority Weekly
VRDNs (Carlton College) VMIG1 4,300,000
-------------------------------------------------------------
4,105,000 Minnesota State HFA Single Family Mortgage Bonds, 4.85%
Annual TOBs (Series 1993T)/
(Bayerische Landesbank Girozentrale LOC),
Mandatory Tender 12/14/1995 A-1+ 4,105,000
-------------------------------------------------------------
3,600,000 Minnetonka, MN, Multi-Family Housing Revenue Bonds, Weekly
VRDNs (Cliffs at Ridgedale)/ (Citibank N.A. LOC) A-1 3,600,000
-------------------------------------------------------------
9,000,000 Mounds View, MN, ISD Pound621, 3.00% TANs (Series
1994A)/(State of Minnesota Guaranty), 3/15/1995 NR(2) 9,003,030
-------------------------------------------------------------
16,000,000 Rochester, MN, Health Care Facility Authority Weekly VRDNs
(Mayo Clinic Foundation
Guaranty) VMIG1 16,000,000
-------------------------------------------------------------
800,000 Saint Paul Port Authority, MN, Tax Increment Weekly VRDNs
(Series l991)/(First Bank N.A. LOC) A-1 800,000
-------------------------------------------------------------
4,000,000 Southern Minnesota Municipal Power Agency, 3.50% CP,
Mandatory Tender 2/22/1995 A-1 4,000,000
-------------------------------------------------------------
</TABLE>
14
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
MINNESOTA--CONTINUED
-------------------------------------------------------------
$ 4,200,000 University of Minnesota, 4.50% Semi-Annual TOBs (Series
G)/(Regents of University of Minnesota), Optional Tender
8/1/1995 A-1+ $ 4,200,000
------------------------------------------------------------- ----------------
Total 90,525,457
------------------------------------------------------------- ----------------
MISSISSIPPI--0.2%
-------------------------------------------------------------
1,805,000 Hinds County, MS, Urban Renewal Refunding Weekly VRDNs
(Series 1991)/(North State Street)/ (AmSouth Bank N.A. LOC) VMIG1 1,805,000
------------------------------------------------------------- ----------------
MISSOURI--0.6%
-------------------------------------------------------------
2,000,000 Missouri State HEFA, 4.10% Revenue Bonds (Series B)/(Health
Midwest)/(MBIA Insured), 2/15/1995 NR(1) 2,000,066
-------------------------------------------------------------
4,200,000 Poplar Bluff, MO, IDA Weekly VRDNs (Series 1987)/(Gates
Rubber Co.)/(National Bank of Detroit LOC) A-1+ 4,200,000
------------------------------------------------------------- ----------------
Total 6,200,066
------------------------------------------------------------- ----------------
MONTANA--0.9%
-------------------------------------------------------------
6,500,000 Forsyth, MT, Rosebud County, PCR, 3.80% CP
(Pacificorp)/(Industrial Bank of Japan LTD. LOC), Mandatory
Tender 2/9/1995 A-1 6,500,000
-------------------------------------------------------------
3,300,000 Forsyth, MT, Rosebud County, PCR, Weekly VRDNs (Portland
General Electric Company)/ (Swiss Bank Corporation LOC) A-1+ 3,300,000
------------------------------------------------------------- ----------------
Total 9,800,000
------------------------------------------------------------- ----------------
NEW JERSEY--0.4%
-------------------------------------------------------------
5,000,000 Mercer County, NJ, 5.50% BANs, 9/20/1995 NR(2) 5,018,259
------------------------------------------------------------- ----------------
NEW YORK--5.1%
-------------------------------------------------------------
10,000,000 New York City, NY, 4.50% RANs (Series A),
4/12/1995 SP-1 10,014,875
-------------------------------------------------------------
</TABLE>
15
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
NEW YORK--CONTINUED
-------------------------------------------------------------
$ 10,000,000 New York City, NY, Monthly VRNs (Series B) SP-1 $ 10,000,000
-------------------------------------------------------------
10,000,000 New York State Thruway Authority, 4.14% BANs, 4/14/1995 SP-1 10,000,000
-------------------------------------------------------------
10,000,000 Niagara County, NY, IDA, Solid Waste Disposal Facility
Revenue Bonds, 4.30% Quarterly TOBs (Series 1994A)/(American
Ref-Fuel Company)/ (Browning-Ferris Industries, Inc.
Guaranty)/(Air Products and Chemicals, Inc. Guaranty),
Mandatory Tender 3/2/1995 A-1 10,000,000
-------------------------------------------------------------
3,500,000 Niagara County, NY, IDA, Weekly VRDNs (Allegheny Ludlum
Corp.)/(PNC Bank N.A. LOC) A-1 3,500,000
-------------------------------------------------------------
14,000,000 Suffolk County, NY, 5.25% TANs (Series I)/ (Westdeutsche
Landesbank Gironzentrale LOC),
8/15/1995 SP-1+ 14,032,784
------------------------------------------------------------- ----------------
Total 57,547,659
------------------------------------------------------------- ----------------
NORTH CAROLINA--2.1%
-------------------------------------------------------------
7,363,469 Charlotte, NC, Weekly VRDNs, Floating Rate Trust Certificate
(Series 1992)/(Credit Suisse Financial Products BPA) P-1 7,363,469
-------------------------------------------------------------
15,000,000 Martin County, NC, IFA, Weekly VRDNs (Series
1993)/(Weyerhaeuser, Inc. Guaranty) A-1 15,000,000
-------------------------------------------------------------
1,100,000 NCNB Pooled Tax-Exempt Trust Weekly VRDNs (Series
1990A)/(NationsBank of North Carolina N.A. LOC) P-1 1,100,000
------------------------------------------------------------- ----------------
Total 23,463,469
------------------------------------------------------------- ----------------
OHIO--7.9%
-------------------------------------------------------------
2,775,000 Akron, OH, Bath & Copley Joint Township Hospital, Weekly
VRDNs (Visiting Nurses)/(National City Bank, Cleveland LOC) A-1 2,775,000
-------------------------------------------------------------
</TABLE>
16
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
OHIO--CONTINUED
-------------------------------------------------------------
$ 2,630,000 Ashland County, OH, Health Care Weekly VRDNs (Brethren Care,
Inc.)/(National City Bank,
Cleveland LOC) P-1 $ 2,630,000
-------------------------------------------------------------
8,850,000 Cincinnati City School District, OH, 5.80% TANs, 12/29/1995 NR(3) 8,880,545
-------------------------------------------------------------
1,100,000 Cuyahoga County, OH, Hospital Authority, Weekly VRDNs (St.
Luke's Hospital)/(First National Bank of Chicago LOC) VMIG1 1,100,000
-------------------------------------------------------------
2,650,000 Cuyahoga County, OH, IDA, Weekly VRDNs (H.P. Parking
Co.)/(Society National Bank LOC) P-1 2,650,000
-------------------------------------------------------------
2,000,000 Dayton, OH, Weekly VRDNs (Series 1993E)/(Emery Air Freight
Corp.)/(Mellon Bank N.A. LOC) VMIG1 2,000,000
-------------------------------------------------------------
7,100,000 Franklin County, OH, Hospital Facility Authority Weekly VRDNs
(Riverside United Methodist
Hospital)/(National City Bank, Cleveland LOC) VMIG1 7,100,000
-------------------------------------------------------------
5,000,000 Franklin County, OH, Weekly VRDNs (Series 1992)/(Rickenbacker
Holdings, Inc.)/(Bank One, Columbus N.A. LOC) P-1 5,000,000
-------------------------------------------------------------
3,550,000 Hamilton County, OH, Health Care System Weekly VRDNs (West
Park Retirement Community, Inc.)/ (Fifth Third Bank LOC) VMIG1 3,550,000
-------------------------------------------------------------
5,000,000 Hamilton County, OH, Hospital Authority Revenue Bonds Weekly
VRDNs (Series 1986A)/(Good Samaritan Hospital Guaranty) A-1 5,000,000
-------------------------------------------------------------
2,500,000 Kettering, OH, IDA Weekly VRDNs (Center-Plex Venture,
Inc.)/(Society National Bank, Cleveland LOC) P-1 2,500,000
-------------------------------------------------------------
2,885,000 Lorain County, OH, Hospital Facilities Revenue Bonds, Weekly
VRDNs (Series 1992A)/(Elyria Methodist Hospital)/(Fifth Third
Bank LOC) P-l 2,885,000
-------------------------------------------------------------
</TABLE>
17
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
OHIO--CONTINUED
-------------------------------------------------------------
$ 325,000 Lucas County, OH, Health Care Improvement Weekly VRDNs
(Sunshine Children's Home)/ (National City Bank, Cleveland
LOC) P-1 $ 325,000
-------------------------------------------------------------
4,300,000 Lucas County, OH, HFA Weekly VRDNs (Riverside
Hospital)/(Huntington National Bank LOC) P-1 4,300,000
-------------------------------------------------------------
2,000,000 Lucas County, OH, Weekly VRDNs (Series 1991)/ (Ohio Citizens
Bank)/(National City Bank,
Cleveland LOC) P-1 2,000,000
-------------------------------------------------------------
2,210,000 Marion County, OH, Hospital Authority, 4.00% Semi-Annual TOBs
(Series l991)/(Banc One, Columbus NA LOC), Optional Tender
5/1/1995 A-1+ 2,210,000
-------------------------------------------------------------
4,750,000 Mayfield Village, OH, IDA, Weekly VRDNs (Beta Campus
Co.)/(Society National Bank LOC) P-1 4,750,000
-------------------------------------------------------------
800,000 Montgomery County, OH, IDA Weekly VRDNs (Center-Plex Venture,
Inc.)/(Society National Bank LOC) P-1 800,000
-------------------------------------------------------------
1,730,000 Montgomery County, OH, IDA Weekly VRDNs (Bethesda Two LTD.
Partnership)/(Huntington National Bank LOC) P-1 1,730,000
-------------------------------------------------------------
4,700,000 Muskingham County, OH, Hospital Facilities Authority Weekly
VRDNs (Bethesda Care
Systems)/(Banc Ohio National Bank LOC) VMIGI 4,700,000
-------------------------------------------------------------
5,000,000 Ohio State Air Quality Development Authority 4.00% CP
(Cincinnati Gas and Electric Co.)/(Morgan Bank (Delaware)
Wilmington LOC), Mandatory Tender 3/9/1995 A-1+ 5,000,000
-------------------------------------------------------------
1,800,000 Ohio State Air Quality Development Authority Weekly VRDNs
(Series 1998A)/(PPG Industries, Inc. Guaranty) P-1 1,800,000
-------------------------------------------------------------
</TABLE>
18
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
OHIO--CONTINUED
-------------------------------------------------------------
$ 5,000,000 Ohio State Water Development Authority, 3.60% CP (Series
A)/(Cleveland Electric Illuminating Co.)/ (FGIC Insured),
Mandatory Tender 2/8/1995 A-1+ $ 5,000,000
-------------------------------------------------------------
6,000,000 Ohio State Water Development Authority Water Refunding &
Improvement Weekly VRDNs (Series PA-56)/(AMBAC Insured) VMIGI 6,000,000
-------------------------------------------------------------
1,900,000 Seneca County, OH, Hospital Facility Weekly VRDNs (St.
Francis Home)/(National City Bank, Cleveland LOC) VMIG1 1,900,000
-------------------------------------------------------------
850,000 Solon, OH, IDA Weekly VRDNs (Solon Industries)/ (Society
National Bank LOC) P-1 850,000
-------------------------------------------------------------
1,100,000 Twinsburg, OH, IDA Weekly VRDNs (Carl
Massara)/(Society National Bank LOC) P-1 1,100,000
------------------------------------------------------------- ----------------
Total 88,535,545
------------------------------------------------------------- ----------------
PENNSYLVANIA--8.0%
-------------------------------------------------------------
5,000,000 Allegheny County, PA, IDA, PCR, 3.45% TOBs (Series
1992A)/(Duquesne Light Power Co.)/(Canadian Imperial Bank of
Commerce LOC), Mandatory Tender 10/17/1995 P-1 5,000,000
-------------------------------------------------------------
2,000,000 Allegheny County, PA, Port Authority, 4.10%,
7/3/1995 MIG1 1,999,340
-------------------------------------------------------------
4,000,000 Beaver County, PA, IDA, PCR Refunding Bonds, 4.50% CP (Series
1994)/(Duquesne Light Power Co.)/(Swiss Bank Corp. LOC)
Mandatory Tender 10/10/1995 A-1+ 4,000,000
-------------------------------------------------------------
20,000,000 Commonwealth of Pennsylvania, 4.75% TANs (Series 1994-1995),
06/30/1995 SP-1+ 20,059,482
-------------------------------------------------------------
6,300,000 Delaware County, PA, PCR, 4.25% CP (Series C)/ (Philadelphia
Electric Company)/(FGIC Insured), Mandatory Tender 5/19/1995 A-1+ 6,300,000
-------------------------------------------------------------
</TABLE>
19
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
-------------------------------------------------------------
$ 4,200,000 Delaware County, PA, Weekly VRDNs (The American
College)/(Provident National Bank LOC) P-1 $ 4,200,000
-------------------------------------------------------------
29,800,000 Erie County, PA, Hospital Authority Weekly VRDNs (St. Vincent
Health System)/(Fuji Bank LTD. LOC) A-1 29,800,000
-------------------------------------------------------------
2,800,000 Montgomery County, PA, IDA Weekly VRDNs (Series 84)/(Wachovia
Bank of North Carolina N.A., Winston-Salem LOC) P-1 2,800,000
-------------------------------------------------------------
5,000,000 Philadelphia, PA, Gas Works Revenue Notes, 4.05% CP (Series
B)/(Canadian Imperial of Commerce LOC), Mandatory Tender
4/10/1995 A-1+ 5,000,000
-------------------------------------------------------------
3,000,000 Philadelphia, PA, IDA Weekly VRDNs (Series 93)/ (Sackett
Development)/(Mellon Bank N.A. LOC) P-1 3,000,000
-------------------------------------------------------------
3,690,000 Pittsburgh, PA, 4.10% UT GO Bonds (Series B)/ (AMBAC
Insured), 9/1/1995 NR(1) 3,692,054
-------------------------------------------------------------
1,800,000 Quakertown, PA, Weekly VRDNs (Hapsco Group)/ (First National
Bank, Chicago LOC) VMIG1 1,800,000
-------------------------------------------------------------
500,000 Sayre, PA, Health Care Facilities Authority Weekly VRDNs (VHA
of Pennsylvania Capital Asset
Program)/(AMBAC Insured) A-1 500,000
-------------------------------------------------------------
2,000,000 Washington County, PA, Weekly VRDNs (Series 1985A)/(Pooled
Equipment Lease)/(Sanwa Bank Ltd. LOC) VMIG1 2,000,000
------------------------------------------------------------- ----------------
Total 90,150,876
------------------------------------------------------------- ----------------
PUERTO RICO--0.5%
-------------------------------------------------------------
5,500,000 Government Development Bank of Puerto Rico Weekly VRDNs
(Credit Suisse and Sumitomo Bank Ltd. LOCs) A-1 5,500,000
------------------------------------------------------------- ----------------
</TABLE>
20
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
SOUTH CAROLINA--0.9%
-------------------------------------------------------------
$ 10,000,000 Greenville, SC, Hospital System Board of Trustees Daily VRDNs
(Series 1993B)/(Greenville, SC,
Hospital Authority) A-1+ $ 10,000,000
------------------------------------------------------------- ----------------
TENNESSEE--1.9%
-------------------------------------------------------------
10,000,000 Chattanooga, TN, HEFA Weekly VRDNs (McCallie School)/(Trust
Company Bank LOC) A-1+ 10,000,000
-------------------------------------------------------------
10,000,000 Clarksville, TN, Public Building Authority, Pooled Finance
Revenue Bonds, Weekly VRDNs (Series 1994)/(Tennessee
Municipal Bond Fund)/
(Nationsbank of Tennessee LOC) A-1 10,000,000
-------------------------------------------------------------
1,000,000 Jackson County, TN, IDB, Daily VRDNs (Series B)/ (Esselte
Co.)/(Morgan Guaranty Trust Co. LOC) A-1+ 1,000,000
------------------------------------------------------------- ----------------
Total 21,000,000
------------------------------------------------------------- ----------------
TEXAS--3.2%
-------------------------------------------------------------
4,600,000 El Paso, TX, HFDC, Daily VRDNs (Providence Memorial
Hospital)/(Fuji Bank Ltd. LOC) VMIG1 4,600,000
-------------------------------------------------------------
8,000,000 Harris County, TX, 4.00% TANs (Series 1994),
02/28/1995 SP-1+ 8,001,961
-------------------------------------------------------------
11,250,000 Harris County, TX, HFDC, 3.90% TOBs (Series B)/ (San Jacinto
Methodist Hospital)/(Morgan Guaranty Trust Co. LOC), Optional
Tender 3/1/1995 VMIG1 11,250,000
-------------------------------------------------------------
1,920,000 North Richland Hills, TX, IDC Weekly VRDNs (Tecnol,
Inc.)/(Nationsbank of North Carolina N.A. LOC) P-1 1,920,000
-------------------------------------------------------------
10,000,000 Texas State, 5.00% TRANs, 8/31/1995 SP-1+ 10,052,441
------------------------------------------------------------- ----------------
Total 35,824,402
------------------------------------------------------------- ----------------
VIRGINIA--1.8%
-------------------------------------------------------------
12,000,000 Arlington County, VA, Weekly VRDNs (Ballston Public
Parking)/(Citibank N.A. LOC) A-1 12,000,000
-------------------------------------------------------------
</TABLE>
21
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
VIRGINIA--CONTINUED
-------------------------------------------------------------
$ 3,080,000 Virginia Beach, VA, Development Authority Weekly VRDNs (GSC
Diamond Associates)/(Sovran Bank N.A. LOC) P-1 $ 3,080,000
-------------------------------------------------------------
5,000,000 Virginia State, HDA, 4.25% Annual TOBs (Series 1993A),
Mandatory Tender 7/12/1995 A-1+ 5,000,000
------------------------------------------------------------- ----------------
Total 20,080,000
------------------------------------------------------------- ----------------
WEST VIRGINIA--0.7%
-------------------------------------------------------------
7,500,000 Marshall County, WV, PCR Weekly VRDNs (Series 1992)/(PPG
Industries, Inc. Guaranty) A-1 7,500,000
------------------------------------------------------------- ----------------
WISCONSIN--1.9%
-------------------------------------------------------------
5,000,000 Hartford, WI, IDA Weekly VRDNs (I.C. Products Co.)/(PNC Bank
N.A. LOC) A-1 5,000,000
-------------------------------------------------------------
1,100,000 Seymour, WI, IDA Weekly VRDNs (Beatrice Cheese, Inc.)/(Bank
of New York LOC) P-1 1,100,000
-------------------------------------------------------------
15,000,000 Wisconsin State, HEFA Weekly VRDNs (St. Luke's Medical
Center)/(Sumitomo Bank Ltd. LOC) A-1 15,000,000
------------------------------------------------------------- ----------------
Total 21,100,000
------------------------------------------------------------- ----------------
WYOMING--0.1%
-------------------------------------------------------------
1,125,000 Natrona County, WY, Hospital Revenue, 5.525% CP (W.W.
Grainger, Inc. Guaranty), Mandatory Tender 6/1/1995 P-1 1,125,000
------------------------------------------------------------- ----------------
OTHER--2.6%
-------------------------------------------------------------
10,000,000 Clipper Tax Exempt Trust, Weekly VRDNs (Series 1993-1)/(State
Street Bank BPA) A-1+ 10,000,000
-------------------------------------------------------------
2,678,900 LaSalle National Bank Bustops Trust Weekly VRDNs (Series
1993A)/(LaSalle National Bank BPA) A-1+ 2,678,900
-------------------------------------------------------------
7,738,435 LaSalle National Bank Leasetops Trust Weekly VRDNs (Series
1994B)/(LaSalle National Bank BPA) A-1+ 7,738,435
-------------------------------------------------------------
</TABLE>
22
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--CONTINUED
----------------------------------------------------------------------------
OTHER--CONTINUED
-------------------------------------------------------------
$ 8,310,000 Merrill Lynch Puttable Floats/Rites Trust, Weekly VRDNs
(Series PP2)/(Merrill Lynch Capital
Services BPA) VMIG1 $ 8,310,000
------------------------------------------------------------- ----------------
Total 28,727,335
------------------------------------------------------------- ----------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 1,148,274,397+
------------------------------------------------------------- ----------------
</TABLE>
+ Also represents cost for federal tax purposes.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
Note: The categories of investments are shown as a percentage of net assets
($1,121,261,556) at January 31, 1995.
The following abbreviations are used throughout this portfolio:
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance
Corporation
BANs Bond Anticipation Notes
BPA Bond Purchase Agreement
CP Commercial Paper
EDA Economic Development Authority
FGIC Financial Guaranty Insurance Co.
FSA Financial Security Assurance
GO General Obligation
HDA Hospital Development Authority
HEFA Health and Education Facilities
Authority
HFA Housing Finance Authority
HFDC Health Facility Development Authority
I DA Industrial Development Authority
I DB Industrial Development Bond
I DC Industrial Development Corporation
I DR Industrial Development Revenue
I FA Industrial Finance Authority
ISD Independent School Distnct
L OCs Letter(s) of Credit
L OC Letter of Credit
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
PFA Public Facility Authority
RANs Revenue Anticipation Notes
SFM Single Family Mortgage
TANs Tax Anticipation Notes
TOBs Tender Option Bonds
TRANs Tax and Revenue Anticipation Notes
UT Unlimited Tax
VHA Veterans Housing Administration
VRDNs Variable Rate Demand Notes
VRNs Variable Rate Notes
</TABLE>
(See Notes which are an integral part of the Financial Statements)
23
TAX-FREE OBLIGATIONS FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
-----------------------------------------------------------------------------------------------
Investments in securities, at amortized cost and value $ 1,148,274,397
-----------------------------------------------------------------------------------------------
Income receivable 7,530,872
-----------------------------------------------------------------------------------------------
Receivable for shares sold 52,762,645
----------------------------------------------------------------------------------------------- ----------------
Total assets 1,208,567,914
-----------------------------------------------------------------------------------------------
LIABILITIES:
-----------------------------------------------------------------------------------------------
Payable for investments purchased $ 28,961,523
--------------------------------------------------------------------------------
Payable for shares redeemed 29,578,497
--------------------------------------------------------------------------------
Income distribution payable 3,000,881
--------------------------------------------------------------------------------
Accrued expenses 45,080
--------------------------------------------------------------------------------
Payable to bank 25,720,377
-------------------------------------------------------------------------------- -------------
Total liabilities 87,306,358
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS for 1,121,281,397 shares outstanding $ 1,121,261,556
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS CONSIST OF:
-----------------------------------------------------------------------------------------------
Paid-in capital $ 1,121,281,396
-----------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (19,840)
----------------------------------------------------------------------------------------------- ----------------
Total Net Assets $ 1,121,261,556
----------------------------------------------------------------------------------------------- ----------------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
-----------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES:
($952,869,710 / 952,889,551 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
INSTITUTIONAL SERVICE SHARES:
($168,391,846 / 168,391,846 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
(See Notes which are an integral part of the Financial Statements)
</TABLE>
24
TAX-FREE OBLIGATIONS FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------------------------
Interest income $ 16,658,928
---------------------------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------------------------
Investment advisory fee $ 947,091
-------------------------------------------------------------------------------------
Administrative personnel and services fee 358,474
-------------------------------------------------------------------------------------
Custodian fees 66,075
-------------------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 19,978
-------------------------------------------------------------------------------------
Trustees' fees 2,330
-------------------------------------------------------------------------------------
Auditing fees 6,682
-------------------------------------------------------------------------------------
Legal fees 3,866
-------------------------------------------------------------------------------------
Portfolio accounting fees 63,936
-------------------------------------------------------------------------------------
Institutional Service Shares--Shareholder services fee 119,592
-------------------------------------------------------------------------------------
Share registration costs 32,073
-------------------------------------------------------------------------------------
Printing and postage 7,412
-------------------------------------------------------------------------------------
Insurance premiums 7,912
-------------------------------------------------------------------------------------
Taxes 22
-------------------------------------------------------------------------------------
Miscellaneous 9,518
------------------------------------------------------------------------------------- ------------
Total expenses 1,644,961
-------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 578,466
------------------------------------------------------------------------------------- ------------
Net expenses 1,066,495
--------------------------------------------------------------------------------------------------- -------------
Net investment income $ 15,592,433
--------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
25
TAX-FREE OBLIGATIONS FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
<S> <C> <C>
---------------------------------------------------------------------------- ----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
----------------------------------------------------------------------------
OPERATIONS--
----------------------------------------------------------------------------
Net investment income $ 15,592,433 $ 16,807,122
----------------------------------------------------------------------------
Net realized gain (loss) on investments ($0 and $19,220 net loss,
respectively, as computed for federal income tax purposes) 0 3,986
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from operations 15,592,433 16,811,108
---------------------------------------------------------------------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
----------------------------------------------------------------------------
Institutional Shares--Distributions from net investment income (14,049,404) (16,783,291)
----------------------------------------------------------------------------
Institutional Service Shares--Distributions from net
investment income (1,543,029) (23,831)
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from distributions to shareholders (15,592,433) (16,807,122)
---------------------------------------------------------------------------- ----------------- -----------------
SHARE TRANSACTIONS--
----------------------------------------------------------------------------
Proceeds from sale of Shares 3,016,928,718 3,346,441,976
----------------------------------------------------------------------------
Net asset value of Shares issued to shareholders in payment
of distributions declared 588,210 460,949
----------------------------------------------------------------------------
Cost of Shares redeemed (2,711,158,423) (2,986,122,657)
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets resulting from share transactions 306,358,505 360,780,268
---------------------------------------------------------------------------- ----------------- -----------------
Change in net assets 306,358,505 360,784,254
----------------------------------------------------------------------------
NET ASSETS:
----------------------------------------------------------------------------
Beginning of period 814,903,051 454,118,797
---------------------------------------------------------------------------- ----------------- -----------------
End of period $ 1,121,261,556 $ 814,903,051
---------------------------------------------------------------------------- ----------------- -----------------
(See Notes which are an integral part of the Financial Statements)
</TABLE>
26
TAX-FREE OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JANUARY 31,
1995 YEAR ENDED JULY 31,
(UNAUDITED) 1994 1993 1992 1991 1990(A)
<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 0.02 0.03 0.04 0.05 0.04
---------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------
Distributions from net investment income (0.02) (0.02) (0.03) (0.04) (0.05) (0.04)
--------------------------------------------- ------ --------- --------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------- ------ --------- --------- --------- --------- -----------
TOTAL RETURN(B) 1.68% 2.45% 2.54% 3.73% 5.13% 3.70%
---------------------------------------------
RATIOS TO AVERAGE NET ASSETS
---------------------------------------------
Expenses 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%(c)
---------------------------------------------
Net investment income 3.30%(c) 2.41% 2.49% 3.58% 4.93% 5.75%(c)
---------------------------------------------
Expense waiver/reimbursement (d) 0.12%(c) 0.15% 0.14% 0.17% 0.26% 0.21%(c)
---------------------------------------------
SUPPLEMENTAL DATA
---------------------------------------------
NET ASSETS, END OF PERIOD (000 OMITTED)
$952,870
$789,755
$454,119
$308,855
$165,669
$145,552
---------------------------------------------
</TABLE>
(a) Reflects operations for the period from December 12, 1989 (date of initial
public investment) to July 31, 1990.
(b) Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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)
27
TAX-FREE OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994(A)
<S> <C> <C>
------------------------------------------------------------------------------- ---------------- ---------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
-------------------------------------------------------------------------------
Net investment income 0.02 0.002
-------------------------------------------------------------------------------
LESS DISTRIBUTIONS
-------------------------------------------------------------------------------
Distributions from net investment income (0.02) (0.002)
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
TOTAL RETURN(B) 1.55% 0.18%
-------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
-------------------------------------------------------------------------------
Expenses 0.45%(c) 0.39%(c)
-------------------------------------------------------------------------------
Net investment income 3.22%(c) 3.04%(c)
-------------------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.12%(c) 0.15%(c)
-------------------------------------------------------------------------------
SUPPLEMENTAL DATA
-------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000 OMITTED) $168,392 $25,148
-------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from July 5, 1994 (date of initial
public offering) to July 31, 1994.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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)
28
TAX-FREE OBLIGATIONS FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) 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 five diversified portfolios. The
financial statements included herein are only those of Tax-Free 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 Fund offers
two classes of shares ("Institutional Shares" and "Institutional Service
Shares").
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
B. 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.
C. 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 taxable income.
Accordingly, no provisions for federal tax are necessary. At January 31,
1995, the Fund for federal tax purposes, had a capital loss carryforward of
$19,840, which will reduce the Fund's taxable income arising from future
net realized gain on investment, 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 in 2001 ($620), and 2002 ($19,220).
D. 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.
29
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
E. 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) for each
class of shares.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED JULY 31,
JANUARY 31, 1995 1994
<S> <C> <C>
INSTITUTIONAL SHARES SHARES SHARES
<CAPTION>
------------------------------------------------------------------------------ ---------------- ----------------
<S> <C> <C>
Shares sold 2,685,543,611 3,312,845,513
------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 488,167 460,949
------------------------------------------------------------------------------
Shares redeemed (2,522,916,683) (2,977,674,630)
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from Institutional Shares transactions 163,115,095 335,631,832
------------------------------------------------------------------------------ ---------------- ----------------
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED JULY 31,
JANUARY 31, 1995 1994*
INSTITUTIONAL SERVICE SHARES SHARES SHARES
------------------------------------------------------------------------------ ---------------- ----------------
<S> <C> <C>
Shares sold 331,385,107 33,596,463
------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 100,043 --
------------------------------------------------------------------------------
Shares redeemed (188,241,740) (8,448,027)
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from Institutional Services Share
transactions 143,243,410 25,148,436
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from Fund Share transactions 306,358,505 360,780,268
------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
*For the period from July 5, 1994 (date of initial public offering) to July 31,
1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .20 of 1% of the Trust's average daily net assets.
30
TAX-FREE OBLIGATIONS FUND
--------------------------------------------------------------------------------
The Adviser may voluntarily choose to waive a portion of its fee and reimburse
certain operating expenses of the Fund. The Adviser can modify or terminate this
voluntary waiver and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. Prior to March 1, 1994, these services were provided at
approximate cost. Effective March 1, 1994, the FAS 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 the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services, the Fund will pay Federated Shareholder
Services up to .25 of 1% of average daily net assets of the Fund for the period.
This fee is to obtain certain personal services for shareholders and to maintain
the shareholder accounts. For the six months ended January 31, 1995,
Institutional Shares did not incur a Shareholder Services Fee.
TRANSFER AGENT--Federated Services Company ("FServ") serves as transfer and
dividend disbursing agent for the Fund. This fee is based on the size, type, and
number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also 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.
INTERFUND TRANSACTIONS--During the six months ended January 31, 1995, the Fund
engaged in purchase and sale transactions with other affiliated funds pursuant
to Rule 17a-7 of the Act amounting to $777,714,209 and $828,605,000,
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 commisions, fees or other renumeration.
GENERAL--Certain of the Officers and Trustees of the Fund are Officers and
Trustees of the above companies.
31
TRUSTEES OFFICERS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. J. Christopher Donahue
William J. Copeland President
J. Christopher Donahue Richard B. Fisher
James E. Dowd Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Vice President and Treasurer
Peter E. Madden John W. McGonigle
Gregor F. Meyer Vice President and Secretary
Wesley W. Posvar David M. Taylor
Marjorie P. Smuts Assistant Treasurer
Jeannette Fisher-Garber
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board, or
any other government agency. Investment in mutual funds involves
investment risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
Supplement to Semi-Annual Report of Tax-Free Obligations Fund dated January 31,
1995
On page 4, please delete the second portfolio entry and replace it with the
following information:
$1,200,000 Montgomery, AL, IDB, Weekly VRDNs (Series
1988A)/(Smith Industries)/(Trust Company Bank
LOC) A-1+ $1,200,000
On page 5, please delete the fourth portfolio entry and replace it with the
following information:
$20,314,852 California State, FB Trust/Floating Rate Trust
Certificate, Weekly VRDNs (Series 10)/(Credit
Suisse Financial Products BPA)/(Bank of America
NT & SA, Banque Nationale de Paris, Bank of
Nova Scotia, Canadian Imperial Bank of Commerce,
Chemical Bank, Citibank N.A., Credit Suisse, Morgan
Guaranty Trust Co., National Westminster Bank,
PLC, London, Societe Generale, Sumitomo Bank Ltd.,
Swiss Bank Corp., Westdeusche Landesbank
Girozentrale & Toronto Dominion Bank LOCs)
MIG1 $20,314,852
On page 6, please delete the fifth portfolio entry and replace it with the
following information:
$9,015,000 Arapahoe County, CO, Improvement Authority,
3.90% Semi-Annual TOBs (Series B & F)/(Societe
Generale, Paris GIC), Optional Tender 2/28/1995
SP-1+ $9,015,000
On page 18, please delete the eighth portfolio entry and replace it with the
following information:
$4,700,000 Muskingham County, OH, Hospital Facilities
Authority Weekly VRDNs (Bethesda Care
Systems)/(National City Bank, Columbus LOC)
VMIG1 $4,700,000
On page 21, please delete the seventh portfolio entry and replace it with the
following information:
$11,250,000 Harris County, TX, HFDC, 3.90% Quarterly TOBs
(Series B)/(San Jacinto Methodist Hospital)
/(Morgan Guaranty Trust Co. LOC), Optional
Tender 3/1/1995
VMIG1 $11,250,000
On page 23, please add the following information to the list of abbreviations:
GIC Guarantee Investment Contract
60934N401
60934N880
G01028-02
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Treasury
Obligations Fund (the "Fund"). The report covers the six-month period ended
January 31, 1995. It begins with the Fund's Investment Review, followed by
Financial Statements which include the Portfolio of Investments. In addition,
separate Financial Highlights tables have been included for both classes of
shares of the Fund ("Institutional Shares" and "Institutional Service Shares").
The Fund pursues current income consistent with stability of principal, through
a diversified portfolio consisting of short-term U.S. Treasury obligations and
in repurchase agreements collateralized by these obligations. In addition, you
have daily access to your money.
During the six-month reporting period, dividends paid to holders of
Institutional Shares totaled $70.5 million, or $0.02 per share. For the same
period, dividends paid to holders of Institutional Service Shares totaled $1.4
million, or $0.02 per share. At the end of the period, net assets stood at $3.3
billion.
Thank you for your confidence in the Fund. As always, your questions and
comments are always welcome.
Sincerely,
J. Christopher Donahue
President
March 15, 1995
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Treasury Obligations Fund (the "Fund"), which is rated AAAm by Standard & Poor's
Ratings Group* and Aaa by Moody's Investors Service, Inc.* is invested in direct
obligations of the U.S. Treasury, either in the form of notes and bills or as
collateral for repurchase agreements. Recently, the Fund has been managed with a
rather conservative average maturity of 30-40 days.
The Federal Reserve Board (the "Fed") continued to tighten monetary policy over
the semi-annual reporting period, raising the Federal Funds target rate 125
basis points from 4.25% to 5.50%. Short-term interest rates led the Fed moves
upward, as the rate on the six month Treasury bill rose from 4.9% to 6.4% over
the reporting period. The 7-day yield for Institutional Shares and Institutional
Service Shares followed suit, rising from 4.10% to 5.46% and from 3.87% to
5.21%, respectively.**
The Fund's average maturity remained in the 30-40 day target range that it
adopted with the onset of the firming in rates by the Fed in February 1994. A
yield advantage continued to exist for investments in repurchase agreements
versus investments in short-term Treasury securities. The Fund combined this
position in repurchase agreements with purchase of securities with longer
maturities of six to twelve months. This portfolio structure continues to pursue
a competitive yield.
Shortly after the end of January, the Fed moved once more, raising the target
rate to its current level of 6%. A year after it began, it appears that the Fed
may be nearing the end of its tightening process, having raised the Federal
Funds rate by 300 basis points. There are signs of slowing in economic growth
and indications that inflation is still being held reasonably in check, and
expectations are that the Fed will be cautious in increasing rates further
before the effects of the policy moves taken so far are known. Additional
tightenings from the Fed cannot be ruled out completely, however. The Fund would
look to reinforce its barbelled structure should market opportunities permit,
and will continue to attempt to maximize performance through ongoing relative
value analysis. However, changing economic and market developments are
continuously monitored to best serve our clients attracted to the short-term
U.S. government market.
*These ratings are obtained after Standard & Poor's and Moody's evaluate a
number of factors, including credit quality, market price exposure, and
management. They monitor the portfolio weekly for developments that could
cause changes in ratings.
**Performance quoted represents past performance and is not indicative of future
results. Yield will vary.
TREASURY OBLIGATIONS FUND
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
SHORT-TERM U.S. TREASURY OBLIGATIONS--25.0%
----------------------------------------------------------------------------------------------
*U.S. TREASURY BILLS--15.6%
------------------------------------------------------------------------------
$ 522,000,000 3.60%-6.50%, 2/9/1995-9/21/1995 $ 513,589,733
------------------------------------------------------------------------------ ----------------
U.S. TREASURY NOTES--9.4%
------------------------------------------------------------------------------
312,000,000 3.875%-8.50%, 2/15/1995-9/30/1995 310,355,734
------------------------------------------------------------------------------ ----------------
TOTAL SHORT-TERM U.S. TREASURY OBLIGATIONS 823,945,467
------------------------------------------------------------------------------ ----------------
(A)REPURCHASE AGREEMENTS--75.2%
----------------------------------------------------------------------------------------------
160,000,000 BT Securities Corp., 5.86%, dated 1/31/1995, due 2/1/1995 160,000,000
------------------------------------------------------------------------------
35,100,000 BZW Securities, Inc., 5.84%, dated 1/31/1995, due 2/1/1995 35,100,000
------------------------------------------------------------------------------
60,000,000 BOT Securities, Inc., 5.90%, dated 1/31/1995, due 2/1/1995 60,000,000
------------------------------------------------------------------------------
155,000,000 Chase Securities, Inc., 5.80%, dated 1/31/1995, due 2/1/1995 155,000,000
------------------------------------------------------------------------------
160,000,000 Chemical Banking Corp., 5.82%, dated 1/31/1995, due 2/1/1995 160,000,000
------------------------------------------------------------------------------
125,000,000 Deutsche Bank Government Securities, Inc., 5.87%, dated
1/31/1995, due 2/1/1995 125,000,000
------------------------------------------------------------------------------
160,000,000 First Chicago Capital Markets, Inc., 5.82%, dated 1/31/1995,
due 2/1/1995 160,000,000
------------------------------------------------------------------------------
185,000,000 Fuji Government Securities, Inc., 5.82%, dated 1/31/1995,
due 2/1/1995 185,000,000
------------------------------------------------------------------------------
125,000,000 Fuji Government Securities, Inc., 5.87%, dated 1/31/1995,
due 2/1/1995 125,000,000
------------------------------------------------------------------------------
60,000,000 **Goldman, Sachs and Co., 5.48%, dated 1/11/1995, due 2/1/1995 60,000,000
------------------------------------------------------------------------------
120,000,000 HSBC Securities, Inc., 5.87%, dated 1/31/1995, due 2/1/1995 120,000,000
------------------------------------------------------------------------------
125,000,000 Harris Government Security, Inc., 5.82%, dated 1/31/1995,
due 2/1/1995 125,000,000
------------------------------------------------------------------------------
35,000,000 Harris Government Security, Inc., 5.87%, dated 1/31/1995,
due 2/1/1995 35,000,000
------------------------------------------------------------------------------
30,000,000 J.P. Morgan & Co., Inc., 5.87%, dated 1/31/1995, due 2/1/1995 30,000,000
------------------------------------------------------------------------------
</TABLE>
TREASURY OBLIGATIONS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
-------------- ------------------------------------------------------------------------------ ----------------
(A)REPURCHASE AGREEMENTS--CONTINUED
----------------------------------------------------------------------------------------------
$ 160,000,000 Lehman Government Securities, Inc., 5.83%, dated 1/31/1995,
due 2/1/1995 $ 160,000,000
------------------------------------------------------------------------------
57,000,000 **Lehman Government Securities, Inc., 6.10%, dated 1/20/1995,
due 4/20/1995 57,000,000
------------------------------------------------------------------------------
57,000,000 **Morgan Stanley and Co., Inc., 5.53%, dated 1/11/1995,
due 2/1/1995 57,000,000
------------------------------------------------------------------------------
60,000,000 **Morgan Stanley and Co., Inc., 6.10%, dated 12/9/1994,
due 3/8/1995 60,000,000
------------------------------------------------------------------------------
160,000,000 Nationsbank of North Carolina N.A., 5.82%, dated 1/31/1995,
due 2/1/1995 160,000,000
------------------------------------------------------------------------------
120,000,000 Nikko Securities, 5.82%, dated 1/31/1995, due 2/1/1995 120,000,000
------------------------------------------------------------------------------
160,000,000 Nomura Securities International, Inc., 5.82%,
dated 1/31/1995, due 2/1/1995 160,000,000
------------------------------------------------------------------------------
50,000,000 State Street Bank and Trust Co., 5.82%,
dated 1/31/1995, due 2/1/1995 50,000,000
------------------------------------------------------------------------------
125,000,000 UBS Securities, Inc., 5.86%, dated 1/31/1995, due 2/1/1995 125,000,000
------------------------------------------------------------------------------ ----------------
TOTAL REPURCHASE AGREEMENTS 2,484,100,000
------------------------------------------------------------------------------ ----------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 3,308,045,467+
------------------------------------------------------------------------------ ----------------
</TABLE>
* Each issue shows the rate of discount at the time of purchase.
** Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase
agreement.
(a) Repurchase aggreements are fully collateralized by U.S. Treasury 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.
Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($3,302,439,506) at January 31, 1995.
(See Notes which are an integral part of the Financial Statements.)
TREASURY OBLIGATIONS FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
-----------------------------------------------------------------------------------------------
Investments in repurchase agreements $ 2,484,100,000
-----------------------------------------------------------------------------
Investments in securities 823,945,467
----------------------------------------------------------------------------- ----------------
Total investments, at amortized cost and value $ 3,308,045,467
-----------------------------------------------------------------------------------------------
Cash 86,335
-----------------------------------------------------------------------------------------------
Income receivable 7,074,059
-----------------------------------------------------------------------------------------------
Receivable for shares sold 11,651
----------------------------------------------------------------------------------------------- ----------------
Total assets 3,315,217,512
-----------------------------------------------------------------------------------------------
LIABILITIES:
-----------------------------------------------------------------------------------------------
Income distribution payable 12,670,386
-----------------------------------------------------------------------------
Accrued expenses 107,620
----------------------------------------------------------------------------- ----------------
Total liabilities 12,778,006
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS for 3,302,439,506 shares outstanding $ 3,302,439,506
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS VALUE, Offering Price and Redemption Proceeds Per Share:
-----------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES:
($3,162,713,207 / 3,162,713,207 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
INSTITUTIONAL SERVICE SHARES:
($139,726,299 / 139,726,299 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
TREASURY OBLIGATIONS FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
---------------------------------------------------------------------------------------------------
Interest $ 74,962,325
---------------------------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------------------------
Investment advisory fee $ 2,931,106
-------------------------------------------------------------------------------------
Administrative personnel and services fee 1,109,424
-------------------------------------------------------------------------------------
Custodian fees 91,917
-------------------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 28,163
-------------------------------------------------------------------------------------
Trustees' fees 12,615
-------------------------------------------------------------------------------------
Auditing fees 6,808
-------------------------------------------------------------------------------------
Legal fees 3,711
-------------------------------------------------------------------------------------
Portfolio accounting fees 107,980
-------------------------------------------------------------------------------------
Institutional Service Shares--Shareholder services fee 73,498
-------------------------------------------------------------------------------------
Share registration costs 124,445
-------------------------------------------------------------------------------------
Printing and postage 5,026
-------------------------------------------------------------------------------------
Insurance premiums 22,324
-------------------------------------------------------------------------------------
Taxes 9,601
-------------------------------------------------------------------------------------
Miscellaneous 1,336
------------------------------------------------------------------------------------- ------------
Total expenses 4,527,954
-------------------------------------------------------------------------------------
Deduct: Waiver of investment advisory fee 1,523,289
------------------------------------------------------------------------------------- ------------
Net expenses 3,004,665
--------------------------------------------------------------------------------------------------- -------------
Net investment income $ 71,957,660
--------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
TREASURY OBLIGATIONS FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1995 YEAR ENDED
(UNAUDITED) JULY 31, 1994
<S> <C> <C>
----------------------------------------------------------------- ------------------ ---------------------------
INCREASE (DECREASE) IN NET ASSETS:
-----------------------------------------------------------------
OPERATIONS--
-----------------------------------------------------------------
Net investment income $ 71,957,660 $ 81,337,110
----------------------------------------------------------------- ------------------ ---------------------------
DISTRIBUTIONS TO SHAREHOLDERS--
-----------------------------------------------------------------
Institutional Shares--Distributions from net
investment income (70,546,003) (81,325,025)
-----------------------------------------------------------------
Institutional Service Shares--Distributions from net investment
income (1,411,657) (12,085)
----------------------------------------------------------------- ------------------ ---------------------------
Change in net assets resulting from distributions to
shareholders (71,957,660) (81,337,110)
----------------------------------------------------------------- ------------------ ---------------------------
SHARE TRANSACTIONS--
-----------------------------------------------------------------
Proceeds from sale of Shares 8,324,154,001 9,791,368,504
-----------------------------------------------------------------
Net asset value of Shares issued to shareholders in payment of
distributions declared 8,706,151 4,797,827
-----------------------------------------------------------------
Cost of Shares redeemed (7,622,283,099) (9,736,785,420)
----------------------------------------------------------------- ------------------ ---------------------------
Change in net assets resulting from share
transactions 710,577,053 59,380,911
----------------------------------------------------------------- ------------------ ---------------------------
Change in net assets 710,577,053 59,380,911
-----------------------------------------------------------------
NET ASSETS:
-----------------------------------------------------------------
Beginning of period 2,591,862,453 2,532,481,542
----------------------------------------------------------------- ------------------ ---------------------------
End of period $ 3,302,439,506 $ 2,591,862,453
----------------------------------------------------------------- ------------------ ---------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31,
1995 YEAR ENDED JULY 31,
(UNAUDITED) 1994 1993 1992 1991 1990(A)
<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 0.03 0.03 0.05 0.07 0.04
-------------------------------------------
LESS DISTRIBUTIONS
-------------------------------------------
Distributions from net investment income (0.02) (0.03) (0.03) (0.05) (0.07) (0.04)
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN (B) 2.48% 3.35% 3.15% 4.61% 7.11% 5.09%
-------------------------------------------
RATIOS TO AVERAGE NET ASSETS
-------------------------------------------
Expenses 0.20(c) 0.20% 0.20% 0.20% 0.20% 0.20%(c)
-------------------------------------------
Net investment income 4.94(c) 3.29% 3.11% 4.49% 6.65% 8.16%(c)
-------------------------------------------
Expense waiver/reimbursement (d) 0.10(c) 0.10% 0.07% 0.08% 0.09% 0.15%(c)
-------------------------------------------
SUPPLEMENTAL DATA
-------------------------------------------
Net assets, end of period (000 omitted) $3,162,713 $2,582,975 $2,532,482 $2,432,037 $1,678,880 $576,048
-------------------------------------------
</TABLE>
(a) Reflects operations for the period from February 23, 1990 (date of initial
public investment) to July 31, 1990.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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)
TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JANUARY 31, YEAR ENDED
1995 JULY 31,
(UNAUDITED) 1994(A)
<S> <C> <C>
---------------------------------------------------------------------------------- --------------- --------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00
----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------------------------------------------------
Net investment income 0.02 0.003
----------------------------------------------------------------------------------
LESS DISTRIBUTIONS
----------------------------------------------------------------------------------
Distributions from net investment income (0.02) (0.003)
---------------------------------------------------------------------------------- ------- --------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
---------------------------------------------------------------------------------- ------- --------------
TOTAL RETURN (B) 2.35% 0.29%
----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
----------------------------------------------------------------------------------
Expenses 0.45%(c) 0.39%(c)
----------------------------------------------------------------------------------
Net investment income 4.80%(c) 4.26%(c)
----------------------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.10%(c) 0.10%(c)
----------------------------------------------------------------------------------
SUPPLEMENTAL DATA
----------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $139,726 $8,887
----------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This volunatry 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)
TREASURY OBLIGATIONS FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) 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 5 diversified portfolios. The
financial statements presented herein present 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
Fund offers 2 classes of shares; Institutional Shares and Institutional Service
Shares.
(2) 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 of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the 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
transaction.
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").
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the 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
provisions for federal tax are necessary.
TREASURY OBLIGATIONS FUND
--------------------------------------------------------------------------------
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.
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) for each
class of shares. At January 31, 1995, capital paid-in aggregated $3,302,439,506.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
INSTITUTIONAL SHARES 1995 1994
<S> <C> <C>
------------------------------------------------------------------------------ ---------------- ----------------
Shares sold 7,830,352,864 9,782,493,254
------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 8,087,800 4,785,818
------------------------------------------------------------------------------
Shares redeemed (7,258,702,651) (9,736,785,420)
------------------------------------------------------------------------------ ---------------- ----------------
Net change resulting from Institutional Shares transactions 579,738,013 50,493,652
------------------------------------------------------------------------------ ---------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
INSTITUTIONAL SERVICE SHARES 1995 1994*
<S> <C> <C>
------------------------------------------------------------------------------------ -------------- ------------
Shares sold 493,801,137 8,875,250
------------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 618,351 12,009
------------------------------------------------------------------------------------
Shares redeemed (363,580,448) --
------------------------------------------------------------------------------------ -------------- ------------
Net change resulting from Institutional Service Shares
transactions 130,839,040 8,887,259
------------------------------------------------------------------------------------ -------------- ------------
Net change resulting from Fund share transactions 710,577,053 59,380,911
------------------------------------------------------------------------------------ -------------- ------------
</TABLE>
*For the period from July 5, 1994 (date of initial public offering) to July 31,
1994.
TREASURY OBLIGATIONS FUND
--------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .20 of 1% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee and reimburse certain operating
expenses of the Fund. The Adviser can modify or terminate this voluntary waiver
and reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with administrative personnel and services. The FAS 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 the
period of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to .25 of
1% of average daily net assets of the Fund for the period. This fee is to obtain
certain services for shareholders and to maintain the shareholder accounts. For
the six months ended January 31, 1995, Institutional Shares did not incur a
Shareholder Services Fee.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund. This fee is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also 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 OFFICERS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. J. Christopher Donahue
William J. Copeland President
J. Christopher Donahue Richard B. Fisher
James E. Dowd Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Vice President and Treasurer
Peter E. Madden John W. McGonigle
Gregor F. Meyer Vice President and Secretary
Wesley W. Posvar David M. Taylor
Marjorie P. Smuts Assistant Treasurer
Jeannette Fisher-Garber
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board, or
any other government agency. Investment in mutual funds involves
investment risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Cash Management Trust (the "Fund") for the nine-month period ended January 31,
1995. The report begins with our Investment Review, which is a brief commentary
on the commercial money market from the Fund's portfolio manager. Following the
Investment Review, you will find Financial Statements containing the Fund's
Portfolio of Investments.
On behalf of investors, the Fund continues to pursue stability of principal and
current income consistent with stability of principal. The Fund has a high level
of liquidity, and attempts to stabilize the value of a share at $1.00. As you
will see in the Portfolio of Investments, it continues to invest primarily in
short-term, high quality money market securities.
During the nine-month reporting period, dividends paid to shareholders totaled
$34.8 million, or $0.03 per share. At the end of the report period, net assets
reached $1.0 billion.
Thank you for your confidence in the Fund. As always, we welcome your questions,
comments, or suggestions.
Sincerely,
J. Christopher Donahue
President
March 15, 1995
INVESTMENT REVIEW
--------------------------------------------------------------------------------
Automated Cash Management Trust (the "Fund") invests in high quality money
market instruments maturing in thirteen 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, 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.
During the reporting period, the Federal Reserve Board (the "Fed") continued its
restrictive interest rate stance. The Fed tightened monetary policy by
increasing the Federal Funds target rate from 3.75% to 5.50% over the period.
Despite the continued low inflationary environment, solid economic growth,
growing employment rolls and capacity constraints would point toward another
increase to the targeted Federal Funds rate early in 1995.
The target average maturity range for the Fund has remained in its current 30-40
day range throughout the reporting time period. This reflects management's
continuing bias that the money market yield curve is fairly steep, and value can
be obtained through both structure as well as by stepping out the curve a bit.
In structuring the Fund, there is continued emphasis placed on positioning 25%
to 30% of the Fund's assets in variable rate demand notes and accomplishing a
modest barbell structure.
Being on the shorter end of the average maturity spectrum has proven to be
helpful over the reporting period. The Fed has raised short-term rates three
times since April 30, 1994. Despite the fact that the Consumer Price Index and
the Producer Price Index indicate moderate inflationary levels, the Fed
continues to fight "inflation expectations".
During the nine months ended January 31, 1995, the net assets of the Fund
increased from $975.5 million to $1.0 billion while the 7-day yield increased
from 3.20% to 5.41%.* The effective average maturity of the Fund on January 31
was 32 days.
*Performance quoted represents past performance and is not indicative of future
results. Yield will vary.
AUTOMATED CASH MANAGEMENT TRUST
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
------------- ------------------------------------------------------------------------------- ----------------
*COMMERCIAL PAPER--40.1%
----------------------------------------------------------------------------------------------
BANKING--6.8%
-------------------------------------------------------------------------------
$ 12,000,000 Abbey National N.A. Corp. (Guaranteed by Abbey National Bank PLC, London),
6.017%-6.306%, 2/28/1995-5/9/1995 $ 11,866,563
-------------------------------------------------------------------------------
5,000,000 BNP U.S. Finance Corp. (Guaranteed by Banque Nationale de Paris), 5.763%,
4/4/1995 4,951,778
-------------------------------------------------------------------------------
5,000,000 Bank of Nova Scotia, Toronto, 5.869%, 4/25/1995 4,934,292
-------------------------------------------------------------------------------
15,500,000 Commerzbank U.S. Finance, Inc. (Guaranteed by Commerzbank AG, Frankfurt),
6.319%-6.708%, 5/8/1995-7/3/1995 15,156,444
-------------------------------------------------------------------------------
5,000,000 Dresdner US Finance, 6.402%, 5/31/1995 4,897,527
-------------------------------------------------------------------------------
9,000,000 Toronto Dominion Holdings (USA), Inc. (Guaranteed by Toronto-Dominion Bank),
5.203%, 3/8/1995 8,955,638
-------------------------------------------------------------------------------
20,000,000 UBS Finance (Delaware), Inc. (Guaranteed by Union Bank of Switzerland, Zurich),
5.831%, 2/1/1995 20,000,000
------------------------------------------------------------------------------- ----------------
Total 70,762,242
------------------------------------------------------------------------------- ----------------
DIVERSIFIED--1.7%
-------------------------------------------------------------------------------
18,000,000 Rockwell International Corp., 6.818%-6.871%, 6/5/1995-6/15/1995 17,576,687
------------------------------------------------------------------------------- ----------------
FINANCE-COMMERCIAL--10.9%
-------------------------------------------------------------------------------
2,000,000 Alpha Finance Corp., Ltd., 6.047%, 3/6/1995 1,989,092
-------------------------------------------------------------------------------
18,000,000 Asset Securitization Cooperative Corp., 5.639%-5.829%, 2/9/1995-
2/13/1995 17,970,739
-------------------------------------------------------------------------------
33,000,000 Beta Finance, Inc., 5.234%-6.882%, 2/14/1995-7/25/1995 32,620,744
-------------------------------------------------------------------------------
8,000,000 CIESCO, Inc., 5.482%, 3/15/1995 7,950,160
-------------------------------------------------------------------------------
10,000,000 CIT Group Holdings, Inc., 6.310%, 3/20/1995 9,919,056
-------------------------------------------------------------------------------
5,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.132%, 2/2/1995 4,999,306
-------------------------------------------------------------------------------
29,000,000 General Electric Capital Corp., 5.215%-6.513%, 2/8/1995-6/5/1995 28,669,404
-------------------------------------------------------------------------------
10,000,000 Sheffield Receivables Corp., 6.253%-6.269%, 4/27/1995-5/2/1995 9,850,285
------------------------------------------------------------------------------- ----------------
Total 113,968,786
------------------------------------------------------------------------------- ----------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
------------- ------------------------------------------------------------------------------- ----------------
*COMMERCIAL PAPER--CONTINUED
----------------------------------------------------------------------------------------------
FINANCE-RETAIL--12.8%
-------------------------------------------------------------------------------
$ 10,000,000 American General Finance Corp., 5.851%, 2/1/1995 $ 10,000,000
-------------------------------------------------------------------------------
10,000,000 Associates Corp. of North America, 5.831%, 2/1/1995 10,000,000
-------------------------------------------------------------------------------
11,000,000 Ford Credit Receivables Funding, Inc., 5.585%-6.143%,
2/2/1995-3/1/1995 10,975,555
-------------------------------------------------------------------------------
53,000,000 McKenna Triangle National Corp., 5.240%-6.720%,
2/14/1995-6/6/1995 52,374,287
-------------------------------------------------------------------------------
51,000,000 New Center Asset Trust, Al+/Pl Series, 5.254%-6.823%,
2/14/1995-7/21/1995 50,185,812
------------------------------------------------------------------------------- ----------------
Total 133,535,654
------------------------------------------------------------------------------- ----------------
INSURANCE--2.1%
-------------------------------------------------------------------------------
18,802,000 Prospect Street Senior Portfolio, L.P. (Guaranteed by Financial Security
Assurance, Inc.), 5.609%-6.877%, 2/1/1995-6/9/1995 18,624,847
-------------------------------------------------------------------------------
4,000,000 Prudential Funding Corp., 6.030%, 5/11/1995 3,935,650
------------------------------------------------------------------------------- ----------------
Total 22,560,497
------------------------------------------------------------------------------- ----------------
OIL & OIL FINANCE--0.9%
-------------------------------------------------------------------------------
10,000,000 Chevron Transport Corp. (Guaranteed by Chevron Corp.), 6.217%, 4/26/1995 9,857,200
------------------------------------------------------------------------------- ----------------
PHARMACEUTICALS AND HEALTH CARE--3.8%
-------------------------------------------------------------------------------
10,000,000 A.H. Robbins, American Home Subsidiary (Guaranteed by American Home Products
Corp.), 6.417%, 3/27/1995 9,905,500
-------------------------------------------------------------------------------
10,000,000 American Home (Foods), Subsidiary (Guaranteed by American Home Products Corp.),
6.300%-6.942%, 6/12/1995-6/19/1995 9,811,305
-------------------------------------------------------------------------------
15,000,000 American Home Products Corp., 6.399%-6.770%,
4/12/1995-5/22/1995 14,691,564
-------------------------------------------------------------------------------
5,000,000 Sherwood Medical, American Home Subsidiary (Guaranteed by American Home
Products Corp.), 6.461%, 4/11/1995 4,939,146
------------------------------------------------------------------------------- ----------------
Total 39,347,515
------------------------------------------------------------------------------- ----------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
------------- ------------------------------------------------------------------------------- ----------------
*COMMERCIAL PAPER--CONTINUED
----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--0.7%
-------------------------------------------------------------------------------
$ 8,000,000 Ameritech Corp., 5.917%, 4/28/1995 $ 7,890,111
------------------------------------------------------------------------------- ----------------
TRANSPORTATION--0.4%
-------------------------------------------------------------------------------
4,000,000 Norfolk Southern Corp., 5.870%, 2/21/1995 3,987,156
------------------------------------------------------------------------------- ----------------
TOTAL COMMERCIAL PAPER 419,485,848
------------------------------------------------------------------------------- ----------------
SHORT-TERM BONDS--0.9%
----------------------------------------------------------------------------------------------
LEASING--0.9%
-------------------------------------------------------------------------------
8,969,865 Copelco Capital Funding Corp. II Series 1994-A, 6.030%, 10/20/1995 8,969,865
------------------------------------------------------------------------------- ----------------
TOTAL SHORT-TERM BONDS 8,969,865
------------------------------------------------------------------------------- ----------------
**VARIABLE RATE INSTRUMENTS--32.9%
----------------------------------------------------------------------------------------------
BANKING--13.8%
-------------------------------------------------------------------------------
9,000,000 American Seaway Foods, Inc. (Society National Bank, Cleveland, OH LOC), 6.474%,
2/3/1995 9,000,000
-------------------------------------------------------------------------------
10,150,000 Associated Materials, Inc. (Society National Bank, Cleveland, OH LOC), 6.474%
2/3/1995 10,150,000
-------------------------------------------------------------------------------
6,100,000 Beverly California Corp. (PNC Bank, N.A. LOC), 6.304%, 2/6/1995 6,100,000
-------------------------------------------------------------------------------
5,000,000 Kentucky Rural Economic Development Authority (PCI)/(PNC Bank, N.A. LOC),
6.404%, 2/6/1995 5,000,000
-------------------------------------------------------------------------------
10,000,000 Massachusetts Industrial Finance Agency (PNC Bank, N.A. LOC), 6.360%, 2/2/1995 10,000,000
-------------------------------------------------------------------------------
13,850,000 Merit Care, Inc. (PNC Bank, N.A LOC), 6.304%, 2/6/1995 13,850,000
-------------------------------------------------------------------------------
12,000,000 National Funding Corp. 1994-A (American National Bank, Chicago LOC), 6.220%,
2/2/1995 12,000,000
-------------------------------------------------------------------------------
44,000,000 PHH/CFC Leasing, Inc. (Societe Generale, Paris LOC), 6.340%,
2/1/1995 44,000,000
-------------------------------------------------------------------------------
6,700,000 Richmond County, GA, Development Authority (PNC Bank, N.A. LOC), 6.304%,
2/6/1995 6,700,000
-------------------------------------------------------------------------------
20,000,000(a) SMM Trust 1994-B (Guaranteed by Morgan Guaranty Trust Co., NY), 5.892%,
2/13/1995 19,994,010
-------------------------------------------------------------------------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
------------- ------------------------------------------------------------------------------- ----------------
**VARIABLE RATE INSTRUMENTS--CONTINUED
----------------------------------------------------------------------------------------------
BANKING--CONTINUED
-------------------------------------------------------------------------------
$ 8,000,000(a) SMM Trust 1994-H (Guaranteed by Morgan Guaranty Trust Co., NY), 6.034%,
2/22/1995 $ 7,998,289
------------------------------------------------------------------------------- ----------------
Total 144,792,299
------------------------------------------------------------------------------- ----------------
ELECTRICAL EQUIPMENT--4.0%
-------------------------------------------------------------------------------
10,000,000 Compagnie Euralair S.A. (Guaranteed by General Electric Co.), 6.304%, 2/6/1995 10,000,000
-------------------------------------------------------------------------------
5,105,351 Marta Leasing Ltd. (Guaranteed by General Electric Co.) 6.304%,
2/6/1995 5,105,351
-------------------------------------------------------------------------------
26,625,986 Northwest Airlines, Inc. (Guaranteed by General Electric Co.), 6.337%, 2/6/1995 26,625,986
------------------------------------------------------------------------------- ----------------
Total 41,731,337
------------------------------------------------------------------------------- ----------------
FINANCE-AUTOMOTIVE--7.2%
-------------------------------------------------------------------------------
30,000,000 Carco Auto Loan Master Trust, Series 1993-2, 5.791%, 2/15/1995 30,000,000
-------------------------------------------------------------------------------
45,000,000 Money Market Auto Loan Trust, 5.896%, 2/15/1995 45,000,000
------------------------------------------------------------------------------- ----------------
Total 75,000,000
------------------------------------------------------------------------------- ----------------
FINANCE-RETAIL--0.7%
-------------------------------------------------------------------------------
7,650,000 Educaid Student Loan Trust 1994-2 (Guaranteed by AMBAC), 5.810%, 2/15/1995 7,650,000
------------------------------------------------------------------------------- ----------------
INSURANCE--7.2%
-------------------------------------------------------------------------------
25,000,000(a) Peoples Security Life Insurance, 6.290%, 2/1/1995 25,000,000
-------------------------------------------------------------------------------
35,000,000 Sun Life Insurance Co. of America, 6.087%-7.170%, 2/1/1995 35,000,000
-------------------------------------------------------------------------------
15,000,000(a) Travelers Insurance Co., 6.175%, 2/1/1995 15,000,000
------------------------------------------------------------------------------- ----------------
Total 75,000,000
------------------------------------------------------------------------------- ----------------
TOTAL VARIABLE RATE INSTRUMENTS 344,173,636
------------------------------------------------------------------------------- ----------------
</TABLE>
AUTOMATED CASH MANAGEMENT TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
------------- ------------------------------------------------------------------------------- ----------------
***REPURCHASE AGREEMENTS--26.1%
----------------------------------------------------------------------------------------------
$ 50,000,000 Chase Securities, Inc., 5.80%, dated 1/31/1995, due 2/1/1995 $ 50,000,000
-------------------------------------------------------------------------------
50,050,000 Chemical Banking Corp., 5.82%, dated 1/31/1995, due 2/1/1995 50,050,000
-------------------------------------------------------------------------------
50,000,000 First Chicago Capital Markets, Inc., 5.82%, dated 1/31/1995,
due 2/1/1995 50,000,000
-------------------------------------------------------------------------------
40,000,000 Fuji Government Securities, Inc., 5.82%, dated 1/31/1995,
due 2/1/1995 40,000,000
-------------------------------------------------------------------------------
30,000,000 Lehman Government Securities, Inc., 5.83%, dated 1/31/95,
due 2/1/1995 30,000,000
-------------------------------------------------------------------------------
45,000,000 Nationsbank of North Carolina N.A., 5.82%, dated 1/31/1995,
due 2/1/1995 45,000,000
-------------------------------------------------------------------------------
8,200,000 State Street Bank and Trust Co., Boston, MA, 5.82%,
dated 1/31/1995, due 2/1/1995 8,200,000
------------------------------------------------------------------------------- ----------------
TOTAL REPURCHASE AGREEMENTS 273,250,000
------------------------------------------------------------------------------- ----------------
TOTAL INVESTMENTS, AT AMORTIZED COST $ 1,045,879,349+
------------------------------------------------------------------------------- ----------------
</TABLE>
Also represents cost for federal tax purposes.
(a) Denotes a restricted security which is 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. At the end of
the period, these securities amounted to $67,992,299 which represents 6.5%
of net assets.
* Each issue shows the rate of discount at the time of purchase.
** Current rate and next reset date shown.
*** Repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio The
investments in repurchase agreements are through participation in joint
accounts with other Federated funds.
Note: The categories of investments are shown as a percentage of net assets
($1,046,617,597) at January 31, 1995.
The following abbreviations are used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation
LOC--Letter of Credit
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
-----------------------------------------------------------------------------------------------
Investments in repurchase agreements $ 273,250,000
-------------------------------------------------------------------------------
Investments in securities 772,629,349
------------------------------------------------------------------------------- --------------
Total investments, at amortized cost and value $ 1,045,879,349
-----------------------------------------------------------------------------------------------
Cash 2,510,682
-----------------------------------------------------------------------------------------------
Income receivable 2,024,844
-----------------------------------------------------------------------------------------------
Receivable for shares sold 36,352,894
----------------------------------------------------------------------------------------------- ----------------
Total assets 1,086,767,769
-----------------------------------------------------------------------------------------------
LIABILITIES:
-----------------------------------------------------------------------------------------------
Payable for shares redeemed 38,061,516
-------------------------------------------------------------------------------
Income distribution payable 1,891,445
-------------------------------------------------------------------------------
Accrued expenses 197,211
------------------------------------------------------------------------------- --------------
Total liabilities 40,150,172
----------------------------------------------------------------------------------------------- ----------------
NET ASSETS for 1,046,617,597 shares outstanding $ 1,046,617,597
----------------------------------------------------------------------------------------------- ----------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
($1,046,617,597 / 1,046,617,597 shares outstanding) $1.00
----------------------------------------------------------------------------------------------- ----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
STATEMENT OF OPERATIONS
PERIOD ENDED JANUARY 31, 1995* (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
------------------------------------------------------------------------------------------------------------------
Interest $ 39,336,608
---------------------------------------------------------------------------------------------------
EXPENSES:
---------------------------------------------------------------------------------------------------
Investment advisory fee $ 3,942,702
-------------------------------------------------------------------------------------
Administrative personnel and services fee 596,925
-------------------------------------------------------------------------------------
Custodian fees 227,907
-------------------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and expenses 133,518
-------------------------------------------------------------------------------------
Trustees' fees 15,036
-------------------------------------------------------------------------------------
Auditing fees 9,567
-------------------------------------------------------------------------------------
Legal fees 21,215
-------------------------------------------------------------------------------------
Portfolio accounting fees 82,253
-------------------------------------------------------------------------------------
Shareholder services fee 1,892,497
-------------------------------------------------------------------------------------
Share registration costs 35,732
-------------------------------------------------------------------------------------
Printing and postage 31,783
-------------------------------------------------------------------------------------
Insurance premiums 29,353
-------------------------------------------------------------------------------------
Taxes 13,848
-------------------------------------------------------------------------------------
Miscellaneous 8,040
------------------------------------------------------------------------------------- ------------
Total expenses 7,040,376
-------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 2,545,682
------------------------------------------------------------------------------------- ------------
Net expenses 4,494,694
--------------------------------------------------------------------------------------------------- -------------
Net investment income $ 34,841,914
--------------------------------------------------------------------------------------------------- -------------
</TABLE>
*Reflects operations for the period from May 1, 1994 to January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
JANUARY 31, YEAR ENDED
1995* APRIL 30,
(UNAUDITED) 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
--------------------------------------------------------------------------
OPERATIONS--
--------------------------------------------------------------------------
Net investment income $ 34,841,914 $ 29,154,607
-------------------------------------------------------------------------- ----------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS--
--------------------------------------------------------------------------
Distributions from net investment income (34,841,914) (29,154,607)
-------------------------------------------------------------------------- ----------------- ------------------
SHARE TRANSACTIONS--
--------------------------------------------------------------------------
Proceeds from sale of Shares 8,097,007,830 10,204,328,063
--------------------------------------------------------------------------
Net asset value of Shares issued to shareholders
in payment of distributions declared 19,490,985 14,864,321
--------------------------------------------------------------------------
Cost of Shares redeemed (8,045,334,105) (10,415,909,478)
-------------------------------------------------------------------------- ----------------- ------------------
Change in net assets resulting from share transactions 71,164,710 (196,717,094)
-------------------------------------------------------------------------- ----------------- ------------------
Change in net assets 71,164,710 (196,717,094)
--------------------------------------------------------------------------
NET ASSETS:
--------------------------------------------------------------------------
Beginning of period 975,452,887 1,172,169,981
-------------------------------------------------------------------------- ----------------- ------------------
End of period $ 1,046,617,597 $ 975,452,887
-------------------------------------------------------------------------- ----------------- ------------------
</TABLE>
*Reflects operations for the period from May 1, 1994 to January 31, 1995.
(See Notes which are an integral part of the Financial Statements)
AUTOMATED CASH MANAGEMENT TRUST
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
JANUARY 31,
1995(A) YEAR ENDED APRIL 30,
(UNAUDITED) 1994 1993 1992 1991 1990 1989 1988 1987
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------
INCOME FROM INVESTMENT
OPERATIONS
------------------------
Net investment income 0.03 0.03 0.03 0.05 0.07 0.08 0.08 0.07 0.06
------------------------
LESS DISTRIBUTIONS
------------------------
Distributions from net
investment income (0.03) (0.03) (0.03) (0.05) (0.07) (0.08) (0.08) (0.07) (0.06)
------------------------ ------ --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------ ------ --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN (B) 3.38% 2.84% 3.11% 5.02% 7.52% 8.69% 8.20% 6.72% 6.00%
------------------------
RATIOS TO AVERAGE NET
ASSETS
------------------------
Expenses 0.57%(c) 0.57% 0.56% 0.56% 0.55% 0.55% 0.55% 0.55% 0.55%
------------------------
Net investment income 4.42%(c) 2.80% 3.07% 4.88% 7.23% 8.32% 7.93% 6.53% 5.82%
------------------------
Expense waiver/
reimbursement (d) 0.32%(c) 0.07% 0.04% 0.03% 0.12% 0.09% 0.10% 0.04% 0.04%
------------------------
SUPPLEMENTAL DATA
------------------------
Net assets, end of
period (000 omitted) $1,046,618 $975,453 $1,172,170 $1,220,212 $1,464,710 $1,164,013 $943,136 $924,558 $867,725
------------------------
<CAPTION>
1986
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00
------------------------
INCOME FROM INVESTMENT
OPERATIONS
------------------------
Net investment income 0.07
------------------------
LESS DISTRIBUTIONS
------------------------
Distributions from net
investment income (0.07)
------------------------ ---------
NET ASSET VALUE,
END OF PERIOD $ 1.00
------------------------ ---------
TOTAL RETURN (B) 7.69%
------------------------
RATIOS TO AVERAGE NET
ASSETS
------------------------
Expenses 0.55%
------------------------
Net investment income 7.43%
------------------------
Expense waiver/
reimbursement (d) 0.06%
------------------------
SUPPLEMENTAL DATA
------------------------
Net assets, end of
period (000 omitted) $764,841
------------------------
</TABLE>
(a) Reflects operations for the period from May 1, 1994 to January 31, 1995.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) 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)
AUTOMATED CASH MANAGEMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
(1) ORGANIZATION
Effective July 30, 1994, Automated Cash Management Trust (the "Fund") was
reorganized into an investment portfolio of Money Market Obligations Trust (the
"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 5 diversified portfolios. The financial statements presented herein
present 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.
(2) 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 of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the 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
transaction.
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.
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.
AUTOMATED CASH MANAGEMENT TRUST
--------------------------------------------------------------------------------
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
provisions for federal tax are 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
Trust will not incur any registration costs upon such resales. Restricted
securities are valued at amortized cost in accordance with Rule 2a-7 under
the Act. Additional information on each restricted security held at January
31, 1995, is as follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION
SECURITY DATE COST
<S> <C> <C>
SMM Trust 1994-B (Guaranteed by Morgan Guaranty Trust Co., NY), 5.892%,
2/13/1995 8/31/1994 $ 19,989,400
-----------------------------------------------------------------------------
SMM Trust 1994-H (Guaranteed by Morgan Guaranty Trust Co., NY), 6.034%,
2/22/1995 12/29/1994 7,995,520
-----------------------------------------------------------------------------
Peoples Security Life Insurance, 6.290%, 2/1/1995 7/11/1994 25,000,000
-----------------------------------------------------------------------------
Travelers Insurance Co., 6.175%, 2/1/1995 2/14/1994 15,000,000
-----------------------------------------------------------------------------
</TABLE>
OTHER--Investment transactions are accounted for on the trade date.
CHANGE IN FISCAL YEAR--The Fund has changed its fiscal year-end from April
30, to July 31, beginning October 27, 1994.
(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 January 31, 1995, capital paid-in aggregated $1,046,617,597.
AUTOMATED CASH MANAGEMENT TRUST
--------------------------------------------------------------------------------
Transactions in Shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED YEAR ENDED
JANUARY 31, APRIL 30,
1995(A) 1994
<S> <C> <C>
Shares sold 8,097,007,830 10,204,328,063
----------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 19,490,985 14,864,321
----------------------------------------------------------------------------
Shares redeemed (8,045,334,105) (10,415,909,478)
---------------------------------------------------------------------------- ---------------- -----------------
Net change resulting from share transactions 71,164,710 (196,717,094)
---------------------------------------------------------------------------- ---------------- -----------------
</TABLE>
(a) Reflects operations for the period from May 1, 1994 to January 31, 1995.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment
adviser, (the "Adviser"), receives for its services an annual investment
advisory fee equal to .50 of 1% of the Fund's average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee and/or
reimburse certain operating expenses of the Fund. The Adviser can modify or
terminate this voluntary waiver and/or reimbursement at any time at its
sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the
Fund with administrative personnel and services. The FAS 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 the period of the Administrative Services Agreement shall
be at least $125,000 per portfolio and $30,000 per each additional class of
shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services
Agreement with Federated Shareholder Services ("FSS"), the Fund will pay
FSS up to .25 of 1% of average daily net assets of the Fund for the period.
This fee is to obtain certain services for shareholders and to maintain the
shareholder accounts.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent
for the Fund. The fee is based on the size, type, and number of accounts
and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also 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 OFFICERS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. J. Christopher Donahue
William J. Copeland President
J. Christopher Donahue Richard B. Fisher
James E. Dowd Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Vice President and Treasurer
Peter E. Madden John W. McGonigle
Gregor F. Meyer Vice President and Secretary
Wesley W. Posvar David M. Taylor
Marjorie P. Smuts Assistant Treasurer
Jeannette Fisher-Garber
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board, or
any other government agency. Investment in mutual funds involves
investment risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
