SEMI-ANNUAL REPORT
President's Message
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Government Cash Reserves, a portfolio of Money Market Obligations Trust, for the
six-month period ended October 31, 1999. The report begins with a brief
commentary by the fund's portfolio manager on the short-term government market,
followed by a complete list of the fund's
investments and its financial statements.
On behalf of investors, the fund pursues current income, a high level of
liquidity, and a stable net asset value of $1.00 per share. 1 It invests
exclusively in a portfolio of securities issued or guaranteed by the U.S.
government or its agencies. Of course, the portfolio itself is not guaranteed.
During the six-month reporting period, dividends paid to shareholders totaled
$15.1 million, which amounted to $0.02 per share. At the end of the reporting
period, fund assets totaled $613.1 million.
Thank you for participating in the daily income opportunities of Automated
Government Cash Reserves as a high-quality cash investment. As always, we
welcome your questions, comments, or suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
December 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
Investment Review
Automated Government Cash Reserves, which is rated AAAm by Standard & Poor's 1
and Aaa by Moody's Investors Service,2 invests in U.S. treasury and certain U.S.
government agency obligations only. Because of the expensive nature of the
short-term treasury market, the fund currently holds agency securities only. The
fund continues to invest in issues of the Student Loan Marketing Association,
Federal Farm Credit Bank, Federal Home Loan Bank, and Tennessee Valley
Authority. The fund does not invest in repurchase agreements and is managed to
provide distributions which are exempt from state and local taxes.
The Federal Reserve Board (the "Fed") voted to tighten monetary policy twice
over the reporting period-at the end of June and in late August-and followed
with a third move in mid-November. The three 25 basis point hikes in the fed
funds target rate brought that rate to its current level of 5.5% and completely
removed the 75 basis points in emergency liquidity that the Fed infused into the
market in the fourth quarter of 1998, at the height of the global economic
crisis. The policy moves came against a backdrop of vigorous economic
growth-with Gross Domestic Product estimated to have grown in the third quarter
at close to 5.0%-combined with remarkably contained inflation.
Movements in short-term interest rates over this period reflected-and often
anticipated-the actions taken by the Fed. The yield on the three-month agency
discount note traded at 4.8% in early May and climbed higher to almost 5.1% by
the time of the first tightening at the end of June. The market then traded in a
relatively narrow range throughout July, until tightening expectations began to
build once again. The yield on this security climbed higher throughout August to
5.3% by the time of the second move, and then repeated the earlier pattern of
trading within a narrow range for a number of weeks. In October, the prospects
for yet another tightening grew once more and the yield on the three-month
discount note resumed its upward climb to end the reporting period at 5.6%.
The fund was managed within a 35 to 45 day average maturity target range over
the reporting period and maximized performance through ongoing relative value
analysis. The fund's portfolio structure is barbelled, which continues to
provide a competitive yield. About one-quarter of the assets of the fund is
invested in U.S. government agency floating rate notes in order to increase the
fund's responsiveness to changes in short-term interest rates. The fund also
uses a floating rate masternote agreement designed to facilitate portfolio
liquidity. This floating rate position, combined with short-term agency discount
notes, comprise the short end of the bar-bell. The fund combines this short
position with treasury and agency securities with longer maturities of 6 to 13
months.
1 This rating is obtained after Standard & Poor's evaluates a number of factors,
including credit quality, market price exposure and management. Standard &
Poor's monitors the portfolio weekly for developments that could cause changes
in the ratings. Ratings are subject to change and do not remove market risks.
2 Money market funds and bond funds rated Aaa by Moody's Investors Service are
judged to be of an investment quality similar to Aaa-rated fixed income
obligations; that is, they are judged to be of the best quality. Ratings are
subject to change and do not remove market risks.
Shareholder Meeting Results
A Special Meeting of Shareholders of Automated Government Cash Reserves was held
on August 11, 1999. On April 30, 1999, the record date for shareholders voting
at the meeting, there were 773,256,178 total outstanding shares. The following
items were considered by shareholders of the fund and the results of their
voting were as follows:
AGENDA ITEM 1
To elect seven Trustees.
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
Thomas G. Bigley 552,160,863 1,674,122
Nicholas P. Constantakis 552,160,863 1,674,122
John F. Cunningham 552,160,863 1,674,122
J. Christopher Donahue 552,160,863 1,674,122
Charles F. Mansfield, Jr. 552,160,863 1,674,122
John E. Murray, Jr., J.D., S.J.D. 552,160,863 1,674,122
John S. Walsh 552,160,863 1,674,122
</TABLE>
AGENDA ITEM 2
To ratify the selection of Ernst & Young LLP as the fund's independent auditors.
The results of shareholders voting were as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
552,159,503 1,550,879 124,603
</TABLE>
AGENDA ITEM 3
To approve a proposed Agreement and Plan of Reorganization between Federated
Government Trust, on behalf of its portfolio, Automated Government Cash Reserves
(the "Government Fund") and Money Market Obligations Trust, on behalf of its
series, Automated Government Cash Reserves (the "New Government Fund"), whereby
the New Government Fund would acquire all of the assets of the Government Fund
in exchange for shares of the New Government Fund to be distributed pro rata by
the Government Fund to its shareholders in complete liquidation and termination
of the Government Fund.
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
550,443,049 1,585,031 232,417
</TABLE>
Portfolio of Investments
OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
GOVERNMENT AGENCIES-100.4%
$ 22,000,000 1 Federal Farm Credit Bank,
Discount Notes, 5.140%,
11/10/1999 $ 21,971,730
10,000,000 Federal Farm Credit Bank,
Notes, 5.000% - 5.400%,
4/3/2000 - 7/3/2000 9,993,731
300,940,000 1 Federal Home Loan Bank,
Discount Notes, 5.125% -
5.560%, 11/3/1999 -
3/22/2000 298,748,282
64,000,000 2 Federal Home Loan Bank,
Floating Rate Notes,
5.209% - 5.405%,
11/1/1999 - 12/1/1999 63,979,528
39,500,000 Federal Home Loan Bank,
Notes, 4.790% - 6.050%,
1/14/2000 - 10/25/2000 39,486,634
81,000,000 2 Student Loan Marketing
Association, Floating Rate
Notes, 5.225% - 5.895%,
11/2/1999 80,984,134
27,800,000 2 Student Loan Marketing
Association, Floating Rate
Master Note, 5.545%,
11/2/1999 27,800,000
14,000,000 Student Loan Marketing Association, Notes, 4.930% - 6.045%,
11/17/1999 -
11/3/2000 14,001,379
59,000,000 1 Tennessee Valley
Authority, Discount Notes,
5.080% - 5.170%, 11/5/1999
- 11/17/1999 58,915,718
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 615,881,136
</TABLE>
1 Discount rate at time of purchase.
2 Floating rate note with current rate and next reset date shown.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($613,132,479) at October 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $615,881,136
Cash 23,302
Income receivable 1,834,524
TOTAL ASSETS 617,738,962
LIABILITIES:
Payable for investments
purchased $ 1,998,820
Income distribution
payable 2,476,212
Accrued expenses 131,451
TOTAL LIABILITIES 4,606,483
Net assets for 613,132,479
shares outstanding $613,132,479
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$613,132,479 / 613,132,479
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 17,070,717
EXPENSES:
Investment advisory fee $ 1,675,980
Administrative personnel
and services fee 252,738
Custodian fees 21,529
Transfer and dividend
disbursing agent fees and
expenses 13,967
Directors'/Trustees' fees 4,737
Auditing fees 6,286
Legal fees 3,101
Portfolio accounting fees 49,845
Shareholder services fee 837,990
Share registration costs 18,001
Printing and postage 6,449
Insurance premiums 1,421
Miscellaneous 5,028
TOTAL EXPENSES 2,897,072
WAIVERS:
Waiver of investment
advisory fee (904,624)
Net expenses 1,992,448
Net investment income $ 15,078,269
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 15,078,269 $ 37,110,967
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 15,078,269 37,110,967
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (15,078,269) (37,110,967)
CHANGES IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (15,078,269) (37,110,967)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 1,090,289,007 3,335,196,980
Net asset value of shares
issued to shareholders in
payment of
distributions declared 2,411,895 9,242,946
Cost of shares redeemed (1,253,478,116) (3,232,730,282)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (160,777,214) 111,709,644
Change in net assets (160,777,214) 111,709,644
NET ASSETS:
Beginning of period 773,909,693 662,200,049
End of period $ 613,132,479 $ 773,909,693
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(Unaudited)
OCTOBER 31, YEAR ENDED APRIL 30,
1999 1999 1998 1997 1996
1995
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
1.00
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05
0.05
LESS DISTRIBUTIONS:
Distributions from
net investment income (0.02) (0.05) (0.05) (0.05) (0.05)
(0.05)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
1.00
TOTAL RETURN 1 2.29% 4.75% 5.08% 4.90% 5.24%
4.68%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 2 0.86% 3 0.86% 0.87% 0.88% 0.88%
0.90%
Net investment
income 2 4.23% 3 4.38% 4.69% 4.51% 4.82%
4.38%
Expenses (after
waivers) 0.59% 3 0.59% 0.60% 0.59% 0.58%
0.58%
Net investment
income (after waivers) 4.50% 3 4.65% 4.96% 4.80% 5.12%
4.70%
SUPPLEMENTAL DATA:
Net assets, end of
period (000 omitted) $613,132 $773,910 $662,200 $663,071 $603,136
$603,849
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
OCTOBER 31, 1999 (UNAUDITED)
ORGANIZATION
Effective August 31, 1999, Automated Government Cash Reserves (the "Fund")
became a portfolio of the 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
twenty one portfolios. The financial statements included herein are only those
of the Fund. The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held. The investment
objective of the Fund is current income consistent with stability of principal
and liquidity.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
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 provision for federal tax is
necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
an unlimited number of full and fractional shares of beneficial interest
(without par value). At October 31, 1999, capital paid-in aggregated
$613,132,479.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
Shares sold 1,090,289,007 3,335,196,980
Shares issued to
shareholders in payment of
distributions declared 2,411,895 9,242,946
Shares redeemed (1,253,478,116) (3,232,730,282)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (160,777,214) 111,709,644
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.50% of the Fund's average daily net assets. The adviser may voluntarily choose
to waive any portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors, Inc. for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Fund. The fee paid to FSSC is based on the size, type and number
of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES
FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Automated Government Cash Reserves
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
OCTOBER 31, 1999
[Graphic]
Federated
Automated Government Cash Reserves
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N716
0112708 (12/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Treasury Cash Reserves, a portfolio of Money Market Obligations Trust, for the
six-month period ended October 31, 1999. The report begins with a brief
commentary by the fund's portfolio manager on the short-term government market,
followed by a complete list of the fund's investments and its financial
statements.
On behalf of investors, the fund pursues current income, a high level of
liquidity, and a stable net asset value of $1.00 per share 1-all through a
portfolio of U.S. treasury obligations.
During the six-month reporting period, dividends paid to shareholders totaled
$5.5 million, or $0.02 per share. At the end of the reporting period, net assets
reached $276.5 million.
Thank you for participating in the daily income opportunities of Automated
Treasury Cash Reserves. Your questions, comments, or suggestions are always
welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
December 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
Investment Review
Automated Treasury Cash Reserves, which is rated AAAm by Standard & Poor's 1 and
Aaa by Moody's Investors Service,2 is invested only in direct issues of the U.S.
treasury. The fund was created to meet the needs of tax-sensitive investors in
states that consider income from all repurchase agreements as taxable.
Therefore, the fund's acceptable investments do not include repurchase
agreements.
The Federal Reserve Board (the "Fed") voted to tighten monetary policy twice
over the reporting period-at the end of June and in late August-and followed
with a third move in mid-November. The three 25 basis point hikes in the fed
funds target rate brought that rate to its current level of 5.5% and completely
removed the 75 basis points in emergency liquidity that the Fed infused into the
market in the fourth quarter of 1998, at the height of the global economic
crisis.
Movements in short-term interest rates over this period reflected both the
actions taken by the Fed and technical supply issues. The yield on the
three-month treasury bill traded at 4.6% in early May and climbed higher to
nearly 5.0% by the time of the second tightening in late August. The maturity of
short-term cash management bills issued by the Treasury Department combined with
a temporary reduction in the auction size of the weekly three-month treasury
bill to drive the yield on this security down to 4.7% in September. Quarter-end
pressures contributed to the decline as well. However, with an increase in the
weekly bill auction and a buildup in expectations for yet another incremental
tightening from the Fed, the yield on this security resumed its upward climb in
October to end the month at 5.1%.
The fund's average maturity generally moved between 45 and 55 days over the
reporting period, varying with the shifts in sentiment and in treasury supply.
We favored treasury notes to treasury bills over the reporting period due to the
expensive nature of the bill market. The fund maximized performance through
ongoing relative value analysis and actively traded portfolio holdings to
achieve that goal.
1 This rating is obtained after Standard & Poor's evaluates a number of factors,
including credit quality, market price exposure and management. Standard &
Poor's monitors the portfolio weekly for developments that could cause changes
in the ratings. Ratings are subject to change and do not remove market risks.
2 Money market funds and bond funds rated Aaa by Moody's Investors Service are
judged to be of an investment quality similar to Aaa-rated fixed income
obligations; that is, they are judged to be of the best quality. Ratings are
subject to change and do not remove market risks.
Shareholder Meeting Results
A Special Meeting of Shareholders of Automated Treasury Cash Reserves was held
on August 11, 1999. On April 30, 1999, the record date for shareholders voting
at the meeting, there were 254,355,362 total outstanding shares. The following
items were considered by shareholders of the fund and the results of their
voting were as follows:
AGENDA ITEM 1
To elect seven Trustees.
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
Thomas G. Bigley 178,482,374 192,567
Nicholas P. Constantakis 178,482,374 192,567
John F. Cunningham 178,482,374 192,567
J. Christopher Donahue 178,482,374 192,567
Charles F. Mansfield, Jr. 178,482,374 192,567
John E. Murray, Jr., J.D., S.J.D. 178,482,374 192,567
John S. Walsh 178,482,374 192,567
</TABLE>
AGENDA ITEM 2
To ratify the selection of Ernst & Young LLP as the fund's independent auditors.
The results of shareholders voting were as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
178,410,046 36 264,859
</TABLE>
AGENDA ITEM 3
To approve a proposed Agreement and Plan of Reorganization between Federated
Government Trust, on behalf of its portfolio, Automated Treasury Cash Reserves
(the "Treasury Fund") and Money Market Obligations Trust, on behalf of its
series, Automated Treasury Cash Reserves (the "New Treasury Fund"), whereby the
New Treasury Fund would acquire all of the assets of the Treasury Fund in
exchange for shares of the New Treasury Fund to be distributed pro rata by the
Treasury Fund to its shareholders in complete liquidation and termination of the
Treasury Fund.
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
130,208,237 36 1,152,094
</TABLE>
Portfolio of Investments
OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
U.S. TREASURY OBLIGATIONS-97.3%
U.S. TREASURY BILLS-41.8% 1
$ 27,000,000 4.450% - 4.874%, 12/2/1999 $ 26,891,901
9,000,000 4.458% - 4.575%, 11/4/1999 8,996,579
28,000,000 4.460% - 4.750%, 11/12/1999 27,960,223
29,000,000 4.470% - 4.770%, 11/18/1999 28,936,998
23,000,000 4.740% - 4.780%, 1/6/2000 22,799,213
TOTAL 115,584,914
U.S. TREASURY NOTES-55.5%
15,000,000 5.375%, 1/31/2000 15,004,414
35,000,000 5.500% - 7.125%, 2/29/2000 35,195,415
60,000,000 5.625% - 7.750%, 11/30/1999 60,117,048
28,000,000 5.875% - 7.875%, 11/15/1999 28,020,054
15,000,000 5.875%, 2/15/2000 15,025,195
TOTAL 153,362,126
TOTAL INVESTMENTS (AT AMORTIZED COST) 2 $ 268,947,040
</TABLE>
1 Each issue shows the rate of discount at the time of purchase.
2 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($276,494,165) at October 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $268,947,040
Cash 556,390
Income receivable 5,508,161
Receivable for investments
sold 63,000,000
Receivable for shares sold 210
TOTAL ASSETS 338,011,801
LIABILITIES:
Payable for investments
purchased $ 60,488,754
Income distribution
payable 984,102
Accrued expenses 44,780
TOTAL LIABILITIES 61,517,636
Net assets for 276,494,165
shares outstanding $276,494,165
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$276,494,165 / 276,494,165
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 6,257,135
EXPENSES:
Investment advisory fee $ 660,356
Administrative personnel
and services fee 99,582
Custodian fees 9,901
Transfer and dividend
disbursing agent fees and
expenses 17,991
Directors'/Trustees' fees 3,636
Auditing fees 6,637
Legal fees 2,108
Portfolio accounting fees 33,403
Shareholder services fee 330,178
Share registration costs 9,589
Printing and postage 6,338
Insurance premiums 1,292
Miscellaneous 5,028
TOTAL EXPENSES 1,186,039
WAIVERS:
Waiver of investment
advisory fee $ (368,392)
Waiver of shareholder
services fee (39,621)
TOTAL WAIVERS (408,013)
Net expenses 778,026
Net investment income $ 5,479,109
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 5,479,109 $ 14,067,427
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 5,479,109 14,067,427
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (5,479,109) (14,067,427)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (5,479,109) (14,067,427)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 429,225,497 1,122,662,472
Net asset value of shares
issued to shareholders in
payment of
distributions declared 1,568,031 4,679,834
Cost of shares redeemed (408,965,393) (1,202,582,539)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 21,828,135 (75,240,233)
Change in net assets 21,828,135 (75,240,233)
NET ASSETS:
Beginning of period 254,666,030 329,906,263
End of period $ 276,494,165 $ 254,666,030
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
OCTOBER 31, YEAR ENDED APRIL 30
1999 1999 1998 1997
1996 1995
<S> <C> <C> <C> <C>
<C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
1.00 $ 1.00
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.02 0.04 0.05 0.05
0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.04) (0.05) (0.05)
(0.05) (0.04)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
1.00 $ 1.00
TOTAL RETURN 1 2.10% 4.40% 4.81% 4.71%
5.04% 4.37%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.90% 3 0.89% 0.89% 0.91%
0.94% 0.88%
Net investment income 2 3.84% 3 4.04% 4.40% 4.29%
4.55% 3.91%
Expenses (after waivers) 0.59% 3 0.59% 0.59% 0.57%
0.57% 0.56%
Net investment income (after waivers) 4.15% 3 4.34% 4.70% 4.63%
4.92% 4.29%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $276,494 $254,666 $329,906 $289,526
$260,688 $167,508
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
OCTOBER 31, 1999 (UNAUDITED)
ORGANIZATION
Effective August 31, 1999, Automated Treasury Cash Reserves (the "Fund") became
a portfolio of the 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 twenty one
portfolios. The financial statements included herein are only those of the Fund.
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held. The investment objective of the Fund
is to provide current income consistent with stability of principal and
liquidity.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
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 provision for federal tax is
necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
an unlimited number of full and fractional shares of beneficial interest
(without par value). At October 31, 1999, capital paid-in aggregated
$276,494,165.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
Shares sold 429,225,497 1,122,662,472
Shares issued to
shareholders in payment of
distributions declared 1,568,031 4,679,834
Shares redeemed (408,965,393) (1,202,582,539)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 21,828,135 (75,240,233)
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose
to waive any portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors, Inc. for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Fund. The fee paid to FSSC is based on the size, type and number
of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES
FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Automated Treasury Cash Reserves
SEMI-ANNUAL REPORT TO SHAREHOLDERS
OCTOBER 31, 1999
[Graphic]
Federated
Automated Treasury Cash Reserves
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N690
2112509 (12/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for U.S. Treasury
Cash Reserves, a portfolio of Money Market Obligations Trust, for the six-month
period ended October 31, 1999. The report begins with a brief commentary by the
fund's portfolio manager on the short-term government market, followed by a
complete list of the fund's investments and its financial statements.
On behalf of investors, the fund pursues current income, a high level of
liquidity, and a stable net asset value of $1.00 per share 1--all through a
portfolio consisting primarily of U.S. treasury bills and notes.
During the six-month reporting period, dividends paid to shareholders of
Institutional Shares totaled $37.8 million, which amounted to $0.02 per share.
Dividends paid to shareholders of Institutional Service Shares totaled $20.4
million, which amounted to $0.02 per share. Net assets reached the $2.8 billion
level at the end of the reporting period.
Thank you for participating in the daily income opportunities of
U.S. Treasury Cash Reserves. As always, we welcome your questions,
comments, or suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
December 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
Investment Review
U.S. Treasury Cash Reserves, which is rated AAAm by Standard & Poor's 1 and Aaa
by Moody's Investors Service,2 is invested only in direct issues of the U.S.
treasury. The fund was created to meet the needs of tax-sensitive investors in
states that consider income from all repurchase agreements as taxable.
Therefore, the fund's acceptable investments do not include repurchase
agreements.
The Federal Reserve Board (the "Fed") voted to tighten monetary policy twice
over the reporting period--at the end of June and in late August--and followed
with a third move in mid-November. The three 25 basis point hikes in the fed
funds target rate brought that rate to its current level of 5.5% and completely
removed the 75 basis points in emergency liquidity that the Fed infused into the
market in the fourth quarter of 1998, at the height of the global economic
crisis.
Movements in short-term interest rates over this period reflected both the
actions taken by the Fed and technical supply issues. The yield on the
three-month treasury bill traded at 4.6% in early May and climbed higher to
nearly 5.0% by the time of the second tightening in late August. The maturity of
short-term cash management bills issued by the Treasury Department combined with
a temporary reduction in the auction size of the weekly three-month treasury
bill to drive the yield on this security down to 4.7% in September. Quarter-end
pressures contributed to the decline as well. However, with an increase in the
weekly bill auction and a buildup in expectations for yet another incremental
tightening from the Fed, the yield on this security resumed its upward climb in
October to end the month at 5.1%.
The fund's average maturity generally moved between 45 and 55 days over the
reporting period, varying with the shifts in sentiment and in treasury supply.
We favored treasury notes to treasury bills over the reporting period due to the
expensive nature of the bill market. The fund maximized performance through
ongoing relative value analysis and actively traded portfolio holdings to
achieve that goal.
1 This rating is obtained after Standard & Poor's evaluates a number of factors,
including credit quality, market price exposure and management. Standard &
Poor's monitors the portfolio weekly for developments that could cause changes
in the ratings. Ratings are subject to change and do not remove market risks.
2 Money market funds and bond funds rated Aaa by Moody's Investors Service are
judged to be of an investment quality similar to Aaa-rated fixed income
obligations; that is, they are judged to be of the best quality. Ratings are
subject to change and do not remove market risks.
Shareholder Meeting Results
A Special Meeting of Shareholders of U.S. Treasury Cash Reserves was held on
August 11, 1999. On April 30, 1999, the record date for shareholders voting at
the meeting, there were 2,570,031,295 total outstanding shares. The following
items were considered by shareholders of the fund and the results of their
voting were as follows:
AGENDA ITEM 1
To elect seven Trustees.
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
Thomas G. Bigley 1,555,535,133 12,118,923
Nicholas P. Constantakis 1,555,535,133 12,118,923
John F. Cunningham 1,555,535,133 12,118,923
J. Christopher Donahue 1,555,535,133 11,268,923
Charles F. Mansfield, Jr. 1,556,396,949 11,257,107
John E. Murray, Jr., J.D., S.J.D. 1,556,396,949 11,257,107
John S. Walsh 1,556,396,949 11,257,107
</TABLE>
AGENDA ITEM 2
To ratify the selection of Ernst & Young LLP as the fund's independent auditors.
The results of shareholders voting were as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
1,557,277,689 1,455,156 8,921,209
</TABLE>
AGENDA ITEM 3
To approve a proposed Agreement and Plan of Reorganization between Federated
Government Trust, on behalf of its portfolio, U.S. Treasury Cash Reserves (the
"Treasury Cash Fund") and Money Market Obligations Trust, on behalf of its
series, U.S. Treasury Cash Reserves (the "New Treasury Cash Fund"), whereby the
New Treasury Cash Fund would acquire all of the assets of the Treasury Cash Fund
in exchange for shares of the New Treasury Cash Fund to be distributed pro rata
by the Treasury Cash Fund to its shareholders in complete liquidation and
termination of the Treasury Cash Fund.
<TABLE>
<CAPTION>
FOR AGAINST ABSTENTIONS
<S> <C> <C>
1,546,997,685 1,676,740 18,050,204
</TABLE>
Portfolio of Investments
OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
U.S. TREASURY OBLIGATIONS--96.2%
U.S. TREASURY BILLS--33.1% 1
$ 119,000,000 4.390% - 4.745%, 11/12/1999 $ 118,833,316
172,000,000 4.400% - 4.740%, 11/4/1999 171,933,889
288,000,000 4.450% - 4.873%, 12/2/1999 286,814,788
91,000,000 4.470% - 4.890%, 11/18/1999 90,801,783
25,000,000 4.530%, 12/9/1999 24,880,458
237,000,000 4.725% - 4.780%, 1/6/2000 234,933,274
TOTAL 928,197,508
U.S. TREASURY NOTES--63.1%
192,000,000 5.375%, 1/31/2000 192,056,094
380,000,000 5.500% - 7.125%, 2/29/2000 381,225,392
670,000,000 5.625% - 7.750%, 11/30/1999 671,329,695
376,255,000 5.875% - 7.875%, 11/15/1999 376,487,030
150,000,000 5.875%, 2/15/2000 150,251,953
TOTAL 1,771,350,164
TOTAL INVESTMENTS (AT AMORTIZED COST) 2 $ 2,699,547,672
</TABLE>
1 Each issue shows the rate of discount at the time of purchase.
2 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,805,172,900) at October 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 2,699,547,672
Cash 620,694
Income receivable 61,657,379
Receivable for investments
sold 677,000,000
TOTAL ASSETS 3,438,825,745
LIABILITIES:
Payable for investments
purchased $ 622,689,235
Income distribution
payable 10,667,731
Accrued expenses 295,879
TOTAL LIABILITIES 633,652,845
Net assets for
2,805,172,900 shares
outstanding $ 2,805,172,900
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
INSTITUTIONAL SHARES:
$1,722,831,379 /
1,722,831,379 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$1,082,341,521 /
1,082,341,521 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED OCTOBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 62,060,176
EXPENSES:
Investment advisory fee $ 5,242,979
Administrative personnel
and services fee 988,301
Custodian fees 68,399
Transfer and dividend
disbursing agent fees and
expenses 26,456
Directors'/Trustees' fees 9,842
Auditing fees 6,713
Legal fees 6,645
Portfolio accounting fees 80,706
Shareholder services fee--
Institutional Shares 2,091,416
Shareholder services fee--
Institutional Service
Shares 1,185,328
Share registration costs 57,438
Printing and postage 13,638
Insurance premiums 3,701
Miscellaneous 11,762
TOTAL EXPENSES 9,793,324
WAIVERS:
Waiver of investment
advisory fee $ (3,832,969)
Waiver of shareholder
services fee--Institutional
Shares (2,091,416)
TOTAL WAIVERS (5,924,385)
Net expenses 3,868,939
Net investment income $ 58,191,237
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 58,191,237 $ 106,094,047
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 58,191,237 106,094,047
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (37,832,616) (70,472,634)
Institutional Service
Shares (20,358,621) (35,621,413)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (58,191,237) (106,094,047)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 4,197,904,294 7,823,041,987
Net asset value of shares
issued to shareholders in
payment of distributions
declared 5,609,384 12,987,955
Cost of shares redeemed (3,969,243,720) (7,193,358,106)
CHANGE IN NET ASSETS
RESULTING FROM
SHARE TRANSACTIONS 234,269,958 642,671,836
Change in net assets 234,269,958 642,671,836
NET ASSETS:
Beginning of period 2,570,902,942 1,928,231,106
End of period $ 2,805,172,900 $ 2,570,902,942
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
OCTOBER 31, YEAR ENDED APRIL 30,
1999 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.30% 4.79% 5.23% 5.10% 5.43% 4.75%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.75% 3 0.75% 0.76% 0.77% 0.79% 0.59%
Net investment income 2 3.98% 3 4.11% 4.55% 4.42% 4.70% 4.46%
Expenses (after waivers) 0.20% 3 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income (after waivers) 4.53% 3 4.66% 5.11% 4.99% 5.29% 4.85%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,722,831 $1,645,762 $1,256,710 $1,131,071 $937,662 $609,233
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
OCTOBER 31, YEAR ENDED APRIL 30,
1999 1999 1998 1997 1996 1995 1
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.04 0.05 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.03)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.17% 4.53% 4.97% 4.84% 5.17% 2.60%
RATIOS TO AVERAGE NET ASSETS:
Expenses 3 0.75% 4 0.75% 0.76% 0.77% 0.79% 0.84% 4
Net investment income 3 3.98% 4 4.11% 4.56% 4.41% 4.63% 4.94% 4
Expenses (after waivers) 0.45% 4 0.45% 0.45% 0.45% 0.45% 0.45% 4
Net investment income (after waivers) 4.28% 4 4.41% 4.87% 4.73% 4.97% 5.33% 4
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,082,342 $925,141 $671,521 $446,344 $227,099 $60,508
</TABLE>
1 Reflects operations for the period from December 15, 1994 (date of initial
public investment) to April 30, 1995.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
OCTOBER 31, 1999 (UNAUDITED)
ORGANIZATION
Effective August 31, 1999, U.S. Treasury Cash Reserves (the "Fund") became a
portfolio of the 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 twenty one
portfolios. The financial statements included herein are only those of the Fund.
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held. The investment objective of the Fund
is to provide current income consistent with stability of principal and
liquidity. The Fund offers two classes of shares: Institutional Shares and
Institutional Service Shares.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
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 provision for federal tax is
necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
an unlimited number of full and fractional shares of beneficial interest
(without par value) for each class of shares. At October 31, 1999, capital
paid-in aggregated $2,805,172,900.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 2,593,757,541 4,865,315,994
Shares issued to
shareholders in payment of
distributions declared 1,943,721 4,130,324
Shares redeemed (2,518,632,106) (4,480,394,099)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 77,069,156 389,052,219
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1999 1999
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 1,604,146,753 2,957,725,993
Shares issued to
shareholders in payment of
distributions declared 3,665,663 8,857,631
Shares redeemed (1,450,611,614) (2,712,964,007)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 157,200,802 253,619,617
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 234,269,958 642,671,836
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40% of the Fund's average daily net assets. The Adviser may voluntarily choose
to waive any portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors, Inc. for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Fund. The fee paid to FSSC is based on the size, type and number
of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES
FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectuses which contains facts
concerning its objective and policies, management fees, expenses, and other
information.
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Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
U.S. Treasury Cash Reserves
SEMI-ANNUAL REPORT TO SHAREHOLDERS
OCTOBER 31, 1999
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Federated
U.S. Treasury Cash Reserves
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N682
Cusip 60934N674
2112510 (12/99)
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