SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Automated
Cash Management Trust, a portfolio of Money Market Obligations Trust. This
report covers the first half of the fund's fiscal year, which is the six-month
period ended January 31, 1999. It begins with an investment review of the
short-term market from the fund's portfolio manager. Following the investment
review are the fund's portfolio of investments and financial statements.
In Automated Cash Management Trust, your ready cash is at work pursuing daily
income, along with a high level of liquidity and a stable net asset value of
$1.00 per share. 1 At the end of the reporting period, the fund's $2.44 billion
in net assets were invested in commercial paper (36.8%), variable rate
instruments (23.3%), repurchase agreements (13.4%), certificates of deposit
(11.0%), short-term notes (8.2%), time deposits (4.5%), and loan participation
securities (2.8%).
Over the six-month reporting period, dividends paid to shareholders of
Institutional Service Shares and Cash II Shares each totaled $0.02 per share. On
the last day of the reporting period, the 30-day net yields for Institutional
Service Shares and Cash II Shares were 4.58% and 4.41%, respectively, while the
7-day net yields were 4.57% and 4.40%, respectively. 2
Thank you for participating in the daily earning power of Automated Cash
Management Trust. As always, we welcome your questions, comments, or
suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 1999
1 An investment in the fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
2 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the fund's current earnings.
Investment Review
Automated Cash Management Trust invests 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 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.
Economic growth during the second half of 1998 resumed its above-average pace
after a brief slowdown in the second quarter. Specifically, third quarter gross
domestic product ("GDP") registered 3.90%, while fourth quarter GDP topped the
year at 5.60%. Despite the high growth, inflation remained subdued by all
measures. The consumer price index rose just 1.60% on an annualized basis for
the six months ended January 31, 1999. For the same time period, the producer
price index increased 1.70%, while the employment cost index grew 3.50%. Despite
the higher number associated with wage and benefit increases, the uptick in
productivity more than outweighed the higher cost base. This
productivity/technology factor has been referred to by Federal Reserve Board
("Fed") Chairman Greenspan in many of his positive discussions on economic
outlook.
Thirty-day commercial paper started the reporting period at 5.56% on July 31,
1998, hovered in the 5.50% range until September 23, 1998, when expectations
began to surface about the Fed lowering rates, and then increased as high as
5.51% during the month of December due to year-end spread pressures. Those
pressures evaporated in January 1999 and the period ended with a 4.81% rate for
30-day commercial paper.
The money market yield curve looked lower but similarly shaped during the
reporting period. One- month and six-month commercial paper rates declined 75
basis points and 77 basis points, respectively, reflecting the accommodative Fed
policy based on concern in the market about the lack of liquidity in the U.S.
credit markets. The Fed responded to this by lowering the federal funds target
rate three times during the period -25 basis points on September 29, 1998, 25
basis points on October 15, 1998, and 25 basis points on November 17, 1998, to
end the reporting period with a 4.75% target rate. The Fed also lowered the
discount rate twice by 25 basis points to 4.75% on October 15, 1998, and by 25
basis points on November 17, 1998, to 4.50%.
The target average maturity range for Automated Cash Management Trust was
lengthened from 40-50 days to 45-55 days on October 1, 1998, reflecting the
Fed's concern about liquidity in the credit markets and the Fed easing scenario.
In structuring the fund, there was continued emphasis placed on positioning
30-35% of the fund's assets in variable rate demand notes and accomplishing a
modest barbell structure.
During the six months ended January 31, 1999, the net assets of Automated Cash
Management Trust increased from $2.438 to $2.444 billion. The effective average
maturity of the Fund on January 31, 1999 was 54 days.
Portfolio of Investments
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-36.8% 1
BANKING-7.1%
$ 30,000,000 Canadian Imperial Holdings, Inc., (Guaranteed by Canadian
Imperial
Bank of Commerce), 4.962% - 4.984%, 2/22/1999 - 3/30/1999 $ 29,865,883
35,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal
de Belgique, Brussles), 4.943% - 5.635%, 2/3/1999 -
2/23/1999 34,936,033
12,644,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank,
Cincinnati Support Agreement), 4.973% - 5.449%, 2/8/1999 -
6/14/1999 12,561,925
22,000,000 Lloyds Bank PLC, London, 5.060%, 2/25/1999 21,927,253
14,000,000 Societe Generale North America, Inc., (Guaranteed by Societe
Generale, Paris), 5.122%, 4/5/1999 13,877,745
10,000,000 UBS Finance (Delaware), Inc., (UBS AG LOC), 4.953%,
3/29/1999 9,924,556
30,000,000 Westpac Banking Corp. Ltd., Sydney, 5.129%, 4/1/1999 29,754,167
20,000,000 Wood Street Funding Corp., 4.889% - 5.423%, 2/1/1999 -
2/19/1999 19,963,475
TOTAL 172,811,037
BROKERAGE-1.0%
24,000,000 Salomon Smith Barney Holdings, Inc., 5.145%, 3/8/1999 23,881,467
FINANCE-AUTOMOTIVE-3.3%
56,000,000 Chrysler Financial Co. LLC, 4.940%, 4/12/1999 55,468,622
25,000,000 Ford Motor Credit Corp., 5.138%, 2/5/1999 24,985,972
TOTAL 80,454,594
FINANCE-COMMERCIAL-13.5%
50,000,000 Asset Securitization Cooperative Corp., 5.156%, 4/16/1999 49,479,944
40,000,000 Beta Finance, Inc., 5.003% - 5.106%, 4/15/1999 - 5/28/1999 39,430,408
10,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.080%, 2/10/1999 9,987,500
70,000,000 General Electric Capital Corp., 5.058% - 5.650%, 2/4/1999 -
3/17/1999 69,832,754
36,000,000 Greenwich Funding Corp., 4.889% - 5.215%, 3/5/1999 -
4/6/1999 35,744,961
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued 1
FINANCE-COMMERCIAL-CONTINUED
$ 35,000,000 PREFCO-Preferred Receivables Funding Co., 5.164% - 5.274%,
2/26/1999 - 3/8/1999 $ 34,866,458
10,000,000 Receivables Capital Corp., 5.468%, 2/4/1999 9,995,500
82,000,000 Sheffield Receivables Corp., 4.902% - 5.499%, 2/22/1999 -
3/23/1999 81,506,925
TOTAL 330,844,450
FINANCE-RETAIL-7.6%
20,000,000 American Express Credit Corp., 5.023%, 4/12/1999 19,809,444
33,000,000 Associates Corp. of North America, 4.867% - 5.401%,
3/9/1999 - 4/19/1999 32,739,782
25,000,000 Associates First Capital B.V., (Guaranteed by Associates
First Capital Corp.), 4.908%, 5/17/1999 24,647,813
45,000,000 Associates First Capital Corp., 4.949% - 5.094%, 4/19/1999 -
5/27/1999 44,451,929
50,000,000 Household Finance Corp., 4.852%, 2/1/1999 50,000,000
13,000,000 Island Finance, Puerto Rico, 5.200%, 2/16/1999 12,972,104
TOTAL 184,621,072
INSURANCE-2.8%
55,000,000 Aspen Funding Corp., 4.852% - 5.110%, 2/1/1999 - 2/22/1999 54,912,150
15,000,000 CXC, Inc., 5.161%, 5/17/1999 14,779,938
TOTAL 69,692,088
MACHINERY, EQUIPMENT, AUTO-1.0%
25,000,000 Eaton Corp., 5.026% - 5.649%, 5/11/1999 - 5/21/1999 24,626,486
TRANSPORTATION-AIR FREIGHT-0.5%
11,925,000 United Parcel Service, 4.983%, 6/4/1999 11,728,615
TOTAL COMMERCIAL PAPER 898,659,809
SHORT-TERM NOTES-8.2%
BANKING-1.4%
25,000,000 Abbey National Treasury Services, PLC, 4.990%, 1/10/2000 24,993,202
10,000,000 SALTS III Cayman Island Corp., (Guaranteed by Bankers Trust
International, PLC), 5.270%, 4/23/1999 10,000,000
TOTAL 34,993,202
FINANCE-AUTOMOTIVE-1.9%
1,833,747 Chase Manhattan Auto Owner Trust 1998-C, Class A-1, 5.588%,
7/9/1999 1,833,660
664,124 Compass Auto Receivables Trust 1998-A, Class A-1, 5.659%,
7/15/1999 664,124
10,337,371 Ford Credit Auto Owner Trust 1998-C, Class A-2, 5.670%,
6/15/1999 10,337,371
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM NOTES-continued
FINANCE-AUTOMOTIVE-CONTINUED
$ 9,000,000 Honda Auto Receivables 1999-1 Owner Trust, Class A-1,
4.974%, 2/15/2000 $ 9,000,000
10,579,010 MMCA Auto Owner Trust 1998-1, Class A-1, 5.621%, 8/16/1999 10,579,010
14,402,229 Premier Auto Trust 1998-5, Class A-1, 5.140%, 7/8/1999 14,399,481
TOTAL 46,813,646
FINANCE-COMMERCIAL-1.8%
5,000,000 2 Beta Finance, Inc., 5.020%, 1/20/2000 5,000,000
5,000,000 2 Beta Finance, Inc., 5.030%, 2/4/2000 5,000,000
20,000,000 2 Beta Finance, Inc., 5.045%, 1/20/2000 20,000,000
15,000,000 2 Beta Finance, Inc., 5.790%, 4/8/1999 14,999,729
TOTAL 44,999,729
FINANCE EQUIPMENT-0.5%
2,910,378 Case Equipment Receivables Trust 1998-B, Class A-1, 5.608%,
9/15/1999 2,910,378
8,044,196 Copelco Capital Funding Trust 1998-A, Class A-1, 5.680%,
8/15/1999 8,044,196
TOTAL 10,954,574
FINANCE-LEASING-1.4%
34,885,493 Green Tree Lease Finance 1998-1, LLC, Class A-1, 5.201%,
1/20/2000 34,885,493
FINANCE-RECREATION-0.4%
10,210,531 Greentree Recreational, Equipment & Consumer Trust 1998-C,
Class A-1, 5.554%, 8/15/1999 10,210,531
INSURANCE-0.8%
19,000,000 WFS Financial 1998-C Owner Trust, Class A-1, (Guaranteed by
FSA), 5.395%, 11/20/1999 19,000,000
TOTAL SHORT-TERM NOTES 201,857,175
CERTIFICATE OF DEPOSIT-11.0%
BANKING-11.0%
30,000,000 Bank of Nova Scotia, Toronto, 5.870%, 4/29/1999 29,995,210
23,000,000 Bankers Trust Co., New York, 5.645% - 5.717%, 2/26/1999 -
5/21/1999 23,000,059
20,000,000 Barclays Bank of Canada, (Guaranteed by Barclays Bank PLC,
London), 5.016%, 1/13/2000 19,994,516
55,000,000 Canadian Imperial Bank of Commerce, 5.030% - 5.800%,
4/1/1999 - 1/27/2000 54,986,226
10,000,000 Commerzbank AG, Frankfurt, 5.066%, 4/6/1999 10,000,173
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
CERTIFICATE OF DEPOSIT-continued
BANKING-CONTINUED
$ 55,000,000 KeyBank, N.A., 5.080%, 4/9/1999 $ 55,000,000
56,000,000 Societe Generale, Paris, 5.690% - 5.900%, 2/26/1999 -
4/28/1999 55,997,130
10,000,000 Svenska Handelsbanken, Stockholm, 5.800%, 4/6/1999 9,999,245
10,000,000 UBS AG, 4.939%, 1/13/2000 10,007,191
TOTAL CERTIFICATE OF DEPOSIT 268,979,750
LOAN PARTICIPATION-2.8%
ELECTRICAL EQUIPMENT-0.5%
13,000,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General
Electric Co.), 5.370%, 5/17/1999 13,000,000
FINANCE - AUTOMOTIVE-1.0%
25,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed
by General Motors Acceptance Corp.), 5.120%, 2/1/1999 25,000,000
FINANCE - EQUIPMENT-1.3%
31,000,000 Pitney Bowes Credit Corp., 5.046%, 2/10/1999 30,961,056
TOTAL LOAN PARTICIPATION 68,961,056
VARIABLE RATE INSTRUMENTS-23.3% 3
BANKING-8.9%
48,000,000 Bankers Trust Co., New York, 4.880%, 2/2/1999 47,988,951
6,000,000 Beverly California Corp., (PNC Bank, N.A. LOC), 4.938%,
2/1/1999 6,000,000
3,900,000 Development Authority of Richmond County, GA, (PNC Bank,
N.A. LOC), 4.938%, 2/1/1999 3,900,000
9,375,000 Hannah Boulevard LP, (Comerica Bank, Detroit, MI LOC),
4.910%, 2/4/1999 9,375,000
8,000,000 K-O-I Warehouse, Inc.; Hamlet Auto Parts, Inc.; Kentucky
Motor Services, Inc.; Mad River Auto Parts, Inc.; Ezzel
Parts Exchange, Inc., Series 1998, (Star Bank, N.A.,
Cincinnati LOC), 4.970%, 2/4/1999 8,000,000
60,000,000 2 Liquid Asset Backed Securities Trust, Series 1996-3,
(Westdeutsche Landesbank Girozentrale Swap Agreement),
5.020%, 2/16/1999 60,000,000
18,766,923 2 Liquid Asset Backed Securities Trust, Series 1997-1,
(Westdeutsche Landesbank Girozentrale Swap Agreement),
5.000%, 2/16/1999 18,766,923
2,000,000 Manatee County, FL, CFI Manufacturing, Inc. Project, Series
1998, (Huntington National Bank, Columbus, OH LOC), 4.910%,
2/4/1999 2,000,000
6,300,000 Massachusetts IFA, (Kendell Square), (PNC Bank, N.A. LOC),
4.830%, 2/4/1999 6,300,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued
BANKING-CONTINUED
$ 20,381,866 2 Rabobank Optional Redemption Trust, Series 1997-101, 5.005%,
4/17/1999 $ 20,381,866
4,000,000 Rollins College, Series 1998, (SunTrust Bank, LIQ), 4.950%,
2/3/1999 4,000,000
22,000,000 Societe Generale, Paris, 4.883%, 2/1/1999 21,992,417
2,666,000 Vista Funding Corp., Series 1996-A, (Bank One, Ohio, N.A.
LOC), 4.910%, 2/4/1999 2,666,000
5,250,000 Wendys of Las Vegas and San Antonio, (Huntington National
Bank, Columbus, OH LOC), 4.910%, 2/4/1999 5,250,000
TOTAL 216,621,157
ELECTRICAL EQUIPMENT-0.9%
2,450,569 Marta Leasing Ltd., (Guaranteed by General Electric Co.),
4.938%, 2/1/1999 2,450,569
20,181,046 Northwest Airlines, Inc., (Guaranteed by General Electric
Co.), 4.938%, 2/1/1999 20,181,046
TOTAL 22,631,615
FINANCE-RETAIL-0.3%
7,000,000 2 Bishop's Gate Residential Mortgage Trust 1998-2, Class A-1,
5.747%, 2/10/1999 7,000,000
INSURANCE-13.2%
122,500,000 General American Life Insurance Co., 5.140%, 2/22/1999 122,500,000
30,000,000 Jackson National Life Insurance Co., 5.289%, 2/1/1999 30,000,000
36,361,251 2 Liquid Asset Backed Securities Trust, Series 1997-3, Senior
Notes, (Guaranteed by AMBAC), 5.254%, 3/28/1999 36,361,251
25,000,000 Monumental Life Insurance Company, 5.250%, 2/1/1999 25,000,000
10,000,000 Security Life of Denver Insurance Co., 5.028%, 4/1/1999 10,000,000
25,000,000 SunAmerica Life Insurance Company, 5.137%, 2/1/1999 25,000,000
30,000,000 Transamerica Occidental Life Insurance Co., 5.209%, 2/1/1999 30,000,000
44,000,000 Travelers Insurance Company, 5.116%, 2/1/1999 44,000,000
TOTAL 322,861,251
TOTAL VARIABLE RATE INSTRUMENTS 569,114,023
TIME DEPOSIT-4.5% 1
BANKING-4.5%
35,000,000 Mellon Bank N.A., Pittsburgh, 4.813%, 2/1/1999 35,000,000
25,000,000 Royal Bank of Canada, Montreal, 4.813%, 2/1/1999 25,000,000
50,000,000 Toronto-Dominion Bank, 4.813%, 2/1/1999 50,000,000
TOTAL TIME DEPOSIT 110,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-13.4% 4
$ 120,000,000 Bear, Stearns and Co., 4.820%, dated 1/29/1999, due 2/1/1999 $ 120,000,000
40,000,000 HSBC Securities, Inc., 4.820%, dated 1/29/1999, due 2/1/1999 40,000,000
50,000,000 Nationsbanc Montgomery Securities, Inc., 4.820%, dated
1/29/1999, due 2/1/1999 50,000,000
30,000,000 Paribas Corp., 4.820%, dated 1/29/1999, due 2/1/1999 30,000,000
67,100,000 Societe Generale Securities Corp., 4.730%, dated 1/29/1999,
due 2/1/1999 67,100,000
20,000,000 Toronto Dominion Securities (USA) Inc., 4.730%, dated
1/29/1999, due 2/1/1999 20,000,000
TOTAL REPURCHASE AGREEMENTS 327,100,000
TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 2,444,671,813
</TABLE>
1 Each issue shows the rate of discount at the time of purchase.
2 Denotes a restricted security which is subject to restrictions on resale under
Federal Securities laws. At January 31, 1999, these securities amounted to
$187,509,769 which represents 7.7% of net assets.
3 Variable rate securities with current rate and next demand date.
4 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,443,594,664) at January 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation
FSA -Financial Security Assurance
IFA -Industrial Finance Authority
LIQ -Liquidity Agreement
LOC -Letter of Credit
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase agreements $ 327,100,000
Investments in securities 2,117,571,813
Total investments, at amortized cost and value $ 2,444,671,813
Income receivable 12,260,258
Receivable for shares sold 102,408
Prepaid expenses 5,414
TOTAL ASSETS 2,457,039,893
LIABILITIES:
Payable for investments purchased 5,000,000
Payable for shares redeemed 9,577
Income distribution payable 7,791,873
Payable to Bank 76,475
Accrued expenses 567,304
TOTAL LIABILITIES 13,445,229
Net assets for 2,443,594,664 shares outstanding $ 2,443,594,664
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER
SHARE:
INSTITUTIONAL SERVICE SHARES:
$1,738,925,846 / 1,738,925,846 shares outstanding $1.00
CASH II SHARES:
$704,668,818 / 704,668,818 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 67,344,380
EXPENSES:
Investment advisory fee $ 6,172,339
Administrative personnel and services fee 930,789
Custodian fees 74,068
Transfer and dividend disbursing agent fees and expenses 430,829
Directors'/Trustees' fees 9,075
Auditing fees 6,554
Legal fees 6,653
Portfolio accounting fees 85,178
Distribution services fee-Cash II Shares 890,557
Shareholder services fee-Institutional Service Shares 2,195,613
Shareholder services fee-Cash II Shares 890,557
Share registration costs 50,915
Printing and postage 64,525
Insurance premiums 118,299
Miscellaneous 20,164
TOTAL EXPENSES 11,946,115
WAIVERS:
Waiver of investment advisory fee $ (3,631,469)
Waiver of distribution services fee-Cash II Shares (309,914)
Waiver of shareholder services fee-Institutional
Service Shares (61,477)
TOTAL WAIVERS (4,002,860)
Net expenses 7,943,255
Net investment income $ 59,401,125
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 59,401,125 $ 116,261,385
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
Institutional Service Shares (42,664,718) (79,466,314)
Cash II Shares (16,736,407) (36,795,071)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS (59,401,125) (116,261,385)
SHARE TRANSACTIONS:
Proceeds from sale of shares 6,027,654,548 12,100,055,296
Net asset value of shares issued to shareholders in
payment of distributions declared 38,524,305 83,205,547
Cost of shares redeemed (6,060,400,238) (11,849,693,675)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 5,778,615 333,567,168
Change in net assets 5,778,615 333,567,168
NET ASSETS:
Beginning of period 2,437,816,049 2,104,248,881
End of period $ 2,443,594,664 $ 2,437,816,049
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS THREE
ENDED MONTHS
(unaudited) ENDED
JANUARY 31, YEAR ENDED JULY 31, JULY 31, YEAR ENDED APRIL 30,
1999 1998 1997 1996 1995 1 1995 1994
<S> <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
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.01 0.05 0.03
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.01) (0.05) (0.03)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.46% 5.25% 5.09% 5.20% 1.42% 4.82% 2.84%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.59% 3 0.59% 0.58% 0.57% 0.57% 3 0.57% 0.57%
Net investment income 4.86% 3 5.13% 4.97% 5.08% 5.60% 3 4.71% 2.80%
Expense waiver/reimbursement 4 0.30% 3 0.30% 0.33% 0.31% 0.40% 3 0.33% 0.07%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,738,926 $1,734,061 $1,378,982 $1,274,419 $1,141,043 $983,099 $975,453
</TABLE>
1 For the period from May 1, 1995 to July 31, 1995, the Fund was reorganized
into Money Market Obligations Trust effective July 30, 1994. The Fund changed
its fiscal year-end from April 30, to July 31, effective October 27, 1994.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Cash II Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR PERIOD
(unaudited) ENDED ENDED
JANUARY 31, JULY 31, JULY 31,
1999 1998 1997 1
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.04)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.38% 5.07% 4.14%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.76% 3 0.76% 0.75% 3
Net investment income 4.70% 3 4.94% 4.84% 3
Expense waiver/reimbursement 4 0.38% 3 0.38% 0.41% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $704,669 $703,755 $725,267
</TABLE>
1 Reflects operations for the period from September 27, 1996 (date of initial
public investment) to July 31, 1997.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of six portfolios. The financial
statements included herein are only those of Automated Cash Management Trust
(the "Fund"). The financial statements of the other portfolios are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held. The investment
objective of the Fund is stability of principal and current income consistent
with the stability of principal.
The Fund offers two classes of shares: Institutional Service Shares and
Cash II Shares.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
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.
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 Fund will not incur any registration costs upon such resales.
Restricted securities are valued at amortized cost in accordance with Rule 2a-7
under the Act.
Additional information on each restricted security held at January 31, 1999 is
as follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION DATE ACQUISITION COST
<S> <C> <C>
Beta Finance, Inc., 5.020% 1/13/1999 $ 5,000,000
Beta Finance, Inc., 5.030% 1/27/1999 5,000,000
Beta Finance, Inc., 5.045% 1/14/1999 20,000,000
Beta Finance, Inc., 5.790% 4/1/1998 14,998,500
Bishop's Gate Residential Mortgage Trust 1998-2,
Class A-1, 5.747% 12/4/1998 7,000,000
Liquid Asset Backed Securities Trust, Series 1997-1, 5.000% 2/19/1997 18,766,923
Liquid Asset Backed Securities Trust, Series 1996-3, 5.020% 8/15/1996 60,000,000
Liquid Asset Backed Securities Trust, Series 1997-3, 5.254% 6/27/1997 36,361,251
Rabobank Optional Redemption Trust, Series 1997-101, 5.005% 4/17/1997 20,381,866
</TABLE>
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. At January 31, 1999, capital paid-in aggregated $2,443,594,664.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES:
Shares sold 4,141,542,931 7,692,911,743
Shares issued to shareholders in payment of distributions
declared 22,237,048 48,454,343
Shares redeemed (4,158,915,237) (7,386,286,934)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE
TRANSACTIONS 4,864,742 355,079,152
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
CASH II SHARES:
Shares sold 1,886,111,617 4,407,143,553
Shares issued to shareholders in payment of distributions
declared 16,287,257 34,751,204
Shares redeemed (1,901,485,001) (4,463,406,741)
NET CHANGE RESULTING FROM CASH II SHARE TRANSACTIONS 913,873 (21,511,984)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 5,778,615 333,567,168
</TABLE>
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 0.50% 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.
DISTRIBUTION SERVICES FEE
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b- 1
under the Act. Under the terms of the Plan, the Fund will compensate Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of the
Fund to finance activities intended to result in the sale of the Fund's Class II
Shares. The Plan provides that the Fund may incur distribution expenses up to
0.25% of the average daily net assets of Cash II Shares, annually, to compensate
FSC. FSC may voluntarily choose to waive any portion of its fee. FSC can modify
or terminate this voluntary waiver at any time at its sole discretion.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC can modify or terminate
this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Fund. The fee paid to FSSC is based on the size, type, and number
of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES
FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the 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.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Management, Adviser to the Fund, merged into
Federated Investment Management Company (formerly, Federated Advisers).
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
WILLIAM J. COPELAND
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
ANTHONY R. BOSCH
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
SEMI-ANNUAL REPORT
[Graphic]
Automated Cash Management Trust
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Automated Cash Management Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N864
Cusip 60934N831
8112802(3/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Government
Obligations Fund, a portfolio of Money Market Obligations Trust. This report
covers the first half of the fund's fiscal year, which is the six-month period
ended January 31, 1999. It begins with an investment review of the short-term
government market from the fund's portfolio manager. Following the investment
review are the fund's portfolio of investments and financial statements.
In Government Obligations Fund, your ready cash is at work pursuing daily
income, along with the additional advantages of daily liquidity and stability of
principal. 1 At the end of the reporting period, the fund's $5.8 billion in net
assets were invested in short-term U.S. government obligations (74.3%) and
repurchase agreements fully collateralized by U.S.
government securities (26.6%).
Over the six-month reporting period, dividends paid to shareholders of
Institutional Shares and Institutional Service Shares totaled $0.03 per share
and $0.02 per share, respectively. On the last day of the reporting period, the
30-day net yields for Institutional Shares and Institutional Service Shares were
4.83% and 4.58%, respectively, while the 7-day net yields were 4.82% and 4.57%,
respectively. 2
Thank you for your confidence in the daily earning power of Government
Obligations Fund. As always, your questions and comments are welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 1999
1 An investment in the fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
2 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the fund's current earnings.
Investment Review
Government Obligations Fund, which is rated AAAm 1 by Standard & Poor's ("S&P"),
Aaa1 by Moody's Investors Service, Inc. ("Moody's"), and AAA1 by Fitch IBCA,
Inc. ("Fitch"), is invested in direct U.S. Treasury and agency obligations and
in repurchase agreements which have these securities as collateral. The fund
continued to emphasize issues of the Federal National Mortgage Association,
Student Loan Marketing Association, Federal Farm Credit Bank System, Federal
Home Loan Bank System, and Federal Home Loan Mortgage Corp., and at times
maintained a small Treasury position for liquidity purposes.
There were two central themes in the short-term government markets over the
reporting period ended January 31, 1999. First, the economy continued to advance
at a robust pace of growth, with gross domestic product expanding in the third
and fourth quarters of 1998 at 3.70% and 6.10%, respectively, and all
indications that this same strength had spilled over into 1999. Although the
manufacturing sector was soft, the housing and retail sectors continued to
propel the economy forward. While this pace of growth is in excess of what has
traditionally been viewed to be the non-inflationary potential of the economy,
inflation nevertheless remained benign, perhaps reflecting advances in
productivity that have enabled growth to be achieved without upward pressure on
prices. Under normal circumstances, however, the growth trajectory of the
economy would have been sufficient to make Federal Reserve Board ("Fed")
officials concerned about the inflationary threat that could result from such
above-trend growth.
Circumstances were not normal, however, as economic crises in countries overseas
and in Latin America were the second, and ultimately more dominant, theme over
the reporting period. In August 1998, the economic troubles in Asia spread to
encompass Russia and then Latin America. As fears that the United States could
not continue to be immune from what had become a global economic crisis weighed
heavily on the U.S. equity market, investors both domestic and abroad fled to
the perceived safety of the U.S. Treasury market. Yields on U.S. Treasury-and to
a lesser extent U.S. government agency-securities plummeted, as investors
shunned credit- sensitive markets in favor of the safe haven of U.S. government
securities, and a credit/liquidity crisis in the U.S. financial markets became
evident. Faced with this scenario, the Fed voted to ease monetary policy by 25
basis points, bringing the federal funds target rate down to 5.25% in late
September, in an attempt to calm investor fears. Market participants viewed this
move to be too tentative, however, and it was not until the Fed took two
additional easing steps in mid-October and November, bringing the federal funds
target rate to 4.75%, that some semblance of calm returned to the markets.
Credit spreads narrowed over this period, albeit not back to levels that
pre-dated the crisis.
1 An AAAm rating is obtained after S&P evaluates a number of factors, including
credit quality, market price exposure, and management. S&P monitors the
portfolio weekly for developments that could cause changes in the ratings. Money
market funds and bond funds rated Aaa by Moody's are judged to be of an
investment quality similar to Aaa-rated fixed income obligations, that is, they
are judged to be of the best quality. Fitch's money market fund ratings are an
assessment of the safety of invested principal and the ability to maintain a
stable market value of the fund's shares. Ratings are based on an evaluation of
several factors, including credit quality, diversification, and maturity of
assets in the portfolio, as well as managed strength and operational
capabilities. Ratings are subject to change, and do not remove market risk.
Movements in short-term government interest rates reflected the turbulent
economic conditions early in the reporting period, and then the relative
tranquillity of the markets once the Fed moves had their desired effect. The
yield on the one-year Treasury bill began the period at 5.40%, but was driven
sharply downward by the onslaught of investors-both domestic and abroad-seeking
a safe haven from the world economic uncertainty and the instability of the U.S.
equity market. The yield on this security reached a low of 3.85% by mid-October.
As the additional easing steps by the Fed calmed investors, the yield on this
security rose moderately to 4.60% by early November, and traded within a range
of 4.40% to 4.60% for the remainder of the reporting period. The yield on the
one-year agency discount note began the reporting period at close to 5.60%, and
while the flight to quality to this market was less pronounced than to U.S.
Treasuries, yields on these securities were also driven downward to a low of
4.40% by mid-October. The market retraced some of this drop back to 4.80% by
mid-November and traded within a relatively narrow range for the rest of the
reporting period.
The fund's average maturity was targeted in a 40 to 50 day range for most of the
reporting period, with the portfolio maximizing value through ongoing relative
value analysis. Agency securities were the dominant investment, as the Treasury
market remained expensive throughout the reporting period. Although expectations
were for the federal funds target rate to be lowered early in the reporting
period, repurchase agreements still remained an attractive investment as yields
on fixed-rate securities were driven well below the federal funds target rate.
We concentrated investments in term repurchase agreements with maturities out to
90 days in instances where that investment was expected to outyield overnight
investments over time. Once liquidity conditions eased in mid-November,
short-term U.S. government agency securities with maturities between one and
three months offered a yield advantage relative to repurchase agreements, and we
shifted portfolio assets into those investments. As a result, although the
fund's average maturity was pretty comparable at the beginning and end of the
reporting period, at just above 40 days, the portfolio composition of the fund
was notably different. The fund's position in repurchase agreements dropped from
62% at the beginning of August 1998 to 26% by the end of January 1999, with most
of those assets shifted into short-term agency securities. With the credit
crisis now past, we would expect the Fed to keep monetary policy unchanged in
upcoming months. Barring a sudden economic collapse in a major trading partner,
the focus of the market is likely to return to the strength of the domestic
economy and its implication for inflation. However, changing economic and market
developments are continuously monitored to best serve our clients attracted to
the short-term U.S.
government market.
Portfolio of Investments
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM OBLIGATIONS-74.3%
$ 29,000,000 Federal Farm Credit Bank Note-0.5%
5.500%, 4/1/1999 $ 28,993,573
14,000,000 1 Federal Farm Credit Bank, Floating Rate Note-0.2%
4.877%, 2/1/1999 13,997,605
161,975,000 Federal Home Loan Bank Notes-2.8%
4.790% - 5.705%, 3/26/1999 - 2/4/2000 161,918,846
567,000,000 1 Federal Home Loan Bank, Floating Rate Notes-9.8%
4.800% - 5.050%, 2/1/1999 - 3/1/1999 566,859,679
80,000,000 Federal Home Loan Mortgage Corp. Notes-1.4%
5.544% - 5.605%, 3/12/1999 - 8/13/1999 79,981,656
693,000,000 2 Federal Home Loan Mortgage Corp., Discount Notes-12.0%
4.650% - 5.090%, 2/1/1999 - 3/15/1999 690,569,380
341,000,000 1 Federal Home Loan Mortgage Corp., Floating Rate Notes-5.9%
4.747% - 5.202%, 2/17/1999 - 2/22/1999 340,881,622
195,000,000 Federal National Mortgage Association Notes-3.4%
4.780% - 5.650%, 2/19/1999 - 11/30/1999 194,940,312
1,341,100,000 2 Federal National Mortgage Association, Discount Notes-22.9%
4.400% - 5.160%, 2/9/1999 - 1/24/2000 1,323,917,044
240,000,000 1 Federal National Mortgage Association, Floating Rate Notes-
4.2%
4.790% - 5.021%, 2/2/1999 - 2/28/1999 239,947,346
514,073,000 1 Housing and Urban Development, Floating Rate Note-8.9%
5.276%, 2/1/1999 514,073,000
22,500,000 Student Loan Marketing Association Note-0.4%
5.580%, 3/11/1999 22,499,500
110,000,000 1 Student Loan Marketing Association, Floating Rate Notes-1.9%
5.062% - 5.162%, 2/2/1999 109,957,202
TOTAL SHORT-TERM OBLIGATIONS 4,288,536,765
REPURCHASE AGREEMENTS-26.6% 3
185,000,000 ABN AMRO, Inc., 4.820%, dated 1/29/1999, due 2/1/1999 185,000,000
180,000,000 Bankers Trust Co., New York, 4.820%, dated 1/29/1999, due
2/1/1999 180,000,000
25,000,000 4 Bankers Trust Co., New York, 4.850%, dated 1/14/1999, due
2/16/1999 25,000,000
60,000,000 Bear, Stearns and Co., 4.820%, dated 1/29/1999, due 2/1/1999 60,000,000
22,650,000 Deutsche Morgan Grenfell, 4.740%, dated 1/29/1999, due
2/1/1999 22,650,000
145,000,000 Goldman Sachs Group, LP, 4.820%, dated 1/29/1999, due
2/1/1999 145,000,000
75,000,000 4 J.P. Morgan & Co., Inc., 4.830%, dated 1/19/1999, due
2/18/1999 75,000,000
255,000,000 Nationsbanc Montgomery Securities, Inc., 4.820%,
dated 1/29/1999, due 2/1/1999 255,000,000
50,000,000 Paribas Corp., 4.820%, dated 1/29/1999, due 2/1/1999 50,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-continued 3
$ 270,000,000 Prudential Securities, Inc., 4.820%, dated 1/29/1999, due
2/1/1999 $ 270,000,000
150,000,000 Salomon Smith Barney, 4.820%, dated 1/29/1999, due 2/1/1999 150,000,000
50,000,000 Warburg Dillon Reed LLC, 4.690%, dated 1/29/1999, due
2/1/1999 50,000,000
70,000,000 4 Warburg Dillon Reed LLC, 5.050%, dated 11/27/1998, due
2/19/1999 70,000,000
TOTAL REPURCHASE AGREEMENTS 1,537,650,000
TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 5,826,186,765
</TABLE>
1 Floating rate note with current rate and next reset date shown.
2 Each issue shows the rate of discount at time of purchase.
3 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
4 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($5,771,847,355) at January 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase agreements $ 1,537,650,000
Investments in securities 4,288,536,765
Total investments in securities, at amortized cost and value $ 5,826,186,765
Cash 6,426,164
Income receivable 23,937,474
TOTAL ASSETS 5,856,550,403
LIABILITIES:
Payable for investments purchased 60,371,326
Income distribution payable 23,837,037
Accrued expenses 494,685
TOTAL LIABILITIES 84,703,048
Net assets for 5,771,847,355 shares outstanding $ 5,771,847,355
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PROCEEDS PER SHARE:
INSTITUTIONAL SHARES:
$4,146,634,283 / 4,146,634,283 shares outstanding $1.00
INSTITUTIONAL SERVICE SHARES:
$1,625,213,072 / 1,625,213,072 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 171,201,347
EXPENSES:
Investment advisory fee $ 6,488,242
Administrative personnel and services fee 2,446,067
Custodian fees 171,938
Transfer and dividend disbursing agent fees and expenses 165,450
Directors'/Trustees' fees 15,896
Auditing fees 6,609
Legal fees 10,860
Portfolio accounting fees 256,286
Shareholder services fee-Institutional Shares 5,943,428
Shareholder services fee-Institutional Service Shares 2,162,851
Share registration costs 32,833
Printing and postage 13,338
Insurance premiums 14,093
Miscellaneous 16,131
TOTAL EXPENSES 17,744,022
WAIVERS:
Waiver of investment advisory fee $ (3,006,760)
Waiver of shareholder services fee-Institutional Shares (5,943,428)
TOTAL WAIVERS (8,950,188)
Net expenses 8,793,834
Net investment income $ 162,407,513
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 162,407,513 $ 252,269,299
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
Institutional Shares (120,585,464) (185,207,877)
Institutional Service Shares (41,822,049) (67,061,422)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS (162,407,513) (252,269,299)
SHARE TRANSACTIONS:
Proceeds from sale of shares 23,282,729,478 35,342,645,977
Net asset value of shares issued to shareholders in payment
of distributions declared 40,977,213 76,651,916
Cost of shares redeemed (22,931,382,377) (34,270,035,225)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 392,324,314 1,149,262,668
Change in net assets 392,324,314 1,149,262,668
NET ASSETS:
Beginning of period 5,379,523,041 4,230,260,373
End of period $ 5,771,847,355 $ 5,379,523,041
</TABLE>
See Notes which are an integral part of the Financial Statement
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.03)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.60% 5.59% 5.43% 5.55% 5.57% 3.41%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 0.20% 3 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income 5.07% 3 5.45% 5.32% 5.41% 5.58% 3.38%
Expense waiver/reimbursement 2 0.34% 3 0.35% 0.35% 0.36% 0.40% 0.15%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $4,146,634 $3,707,106 $3,293,392 $2,182,999 $1,926,516 $763,879
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
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)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 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
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.47% 5.33% 5.16% 5.29% 5.31%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.45% 4 0.45% 0.45% 0.45% 0.45% 4
Net investment income 4.83% 4 5.23% 5.06% 5.14% 5.63% 4
Expense waiver/reimbursement 3 0.09% 4 0.10% 0.10% 0.11% 0.15% 4
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,625,213 $1,672,417 $936,869 $702,274 $339,105
</TABLE>
1 Reflects operations for the period from August 1, 1994 (date of initial public
investment) to July 31, 1995. For the period from the effective date, July 5,
1994 to July 31, 1994, all net investment income was distributed to the Fund's
Adviser.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market 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 six 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 investment
objective of the Fund is to provide current income consistent with stability of
principal.
The Fund offers two classes of shares: Institutional Shares and
Institutional Service Shares.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
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.
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 taxes
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.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. At January 31, 1999, capital paid-in aggregated $5,771,847,355.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 16,994,756,609 24,848,661,392
Shares issued to shareholders in payment of distributions
declared 25,976,214 49,306,799
Shares redeemed (16,581,204,113) (24,484,254,216)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 439,528,710 413,713,975
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES:
Shares sold 6,287,972,869 10,493,984,585
Shares issued to shareholders in payment of distributions
declared 15,000,999 27,345,117
Shares redeemed (6,350,178,264) (9,785,781,009)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (47,204,396) 735,548,693
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 392,324,314 1,149,262,668
</TABLE>
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 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.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Management, Adviser to the Fund, merged
into Federated Investment Management Company (formerly, Federated
Advisers).
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
WILLIAM J. COPELAND
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
ANTHONY R. BOSCH
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
Government Obligations Fund
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Government Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N104
Cusip 60934N807
1022001 (3/99)
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Government
Obligations Tax-Managed Fund, a portfolio of Money Market Obligations Trust.
This report covers the first half of the fund's fiscal year, which is the
six-month period ended January 31, 1999. It begins with an investment review of
the short-term government market from the fund's portfolio manager. Following
the investment review are the fund's portfolio of investments and financial
statements.
Government Obligations Tax-Managed Fund helps tax-sensitive investors pursue
daily dividends, a high level of liquidity, and a stable net asset value of
$1.00 per share. 1 The fund's portfolio of U.S. government securities is managed
so that dividends are exempt from state and local income taxes.2
Over the six-month reporting period, the fund paid double tax-free dividends
totaling $0.03 per share to shareholders of Institutional Shares and $0.02 per
share to shareholders of Institutional Service Shares. At the end of the
reporting period, net assets reached $2.2 billion.
Thank you for selecting this fund as a convenient way to help your ready cash
earn daily, tax-free income. As always, we welcome your questions, comments, or
suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 1999
1 An investment in the fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
2 Income may be subject to the federal alternative minimum tax. Unless otherwise
exempt, shareholders are required to pay federal income tax on dividends.
Investment Review
Government Obligations Tax-Managed Fund, which is rated AAAm 1 by Standard &
Poor's ("S&P") and Aaa1 by Moody's Investors Service, Inc. ("Moody's"), is
invested in U.S. Treasury and U.S. Government agency obligations only. The fund
invests in issues of the Student Loan Marketing Association, Federal Farm Credit
Bank System, Federal Home Loan Bank System, and Tennessee Valley Authority, and
can maintain a small U.S. Treasury position for liquidity purposes. The fund
does not invest in repurchase agreements, and is managed to provide
distributions which may be exempt from state and local taxes.
There were two central themes in the short-term government markets over the
reporting period ended January 31, 1999. First, the economy continued to advance
at a robust pace of growth, with gross domestic product expanding in the third
and fourth quarters of 1998 at 3.70% and 6.10%, respectively, and all
indications that this same strength had spilled over into 1999. Although the
manufacturing sector was soft, the housing and retail sectors continued to
propel the economy forward. While this pace of growth is in excess of what has
traditionally been viewed to be the non-inflationary potential of the economy,
inflation nevertheless remained benign, perhaps reflecting advances in
productivity that have enabled growth to be achieved without upward pressure on
prices. Under normal circumstances, however, the growth trajectory of the
economy would have been sufficient to make Federal Reserve Board ("Fed")
officials concerned about the inflationary threat that could result from such
above-trend growth.
Circumstances were not normal, however, as economic crises in countries overseas
and in Latin America were the second, and ultimately more dominant, theme over
the reporting period. In August 1998, the economic troubles in Asia spread to
encompass Russia and then Latin America. As fears that the United States could
not continue to be immune from what had become a global economic crisis weighed
heavily on the U.S. equity market, investors both domestic and abroad fled to
the perceived safety of the U.S. Treasury market. Yields on U.S. Treasury, and
to a lesser extent U.S. government agency securities plummeted, as investors
shunned credit- sensitive markets in favor of the safe haven of U.S. government
securities, and a credit/liquidity crisis in the U.S. financial markets became
evident. Faced with this scenario, the Fed voted to ease monetary policy by 25
basis points, bringing the federal funds target rate down to 5.25% in late
September in an attempt to calm investor fears. Market participants viewed this
move to be too tentative, however, and it was not until the Fed took two
additional easing steps, in mid-October and November, bringing the federal funds
target rate to 4.75%, that some semblance of calm returned to the markets.
Credit spreads narrowed over this period, albeit not back to levels that
pre-dated the crisis.
1 An AAAm rating is obtained after S&P evaluates a number of factors, including
credit quality, market price exposure and management. S&P monitors the portfolio
weekly for developments that could cause changes in the ratings. Money market
funds and bond funds rated Aaa by Moody's are judged to be of an investment
quality similiar to Aaa-rated fixed income obligations, that is, they are judged
to be of the best quality. These ratings do not remove market risks and are
subject to change.
Movements in short-term government interest rates reflected the turbulent
economic conditions early in the reporting period, and then the relative
tranquillity of the markets once the Fed moves had their desired effect. The
yield on the one-year Treasury bill began the period at 5.40%, but was driven
sharply downward by the onslaught of investors-both domestic and abroad-seeking
a safe haven from the world economic uncertainty and the instability of the U.S.
equity market. The yield on this security reached a low of 3.85% by mid-October.
As the additional easing steps by the Fed calmed investors, the yield on this
security rose moderately to 4.60% by early November, and traded within a range
of 4.40% to 4.60% for the remainder of the reporting period. The yield on the
one-year agency discount note began the reporting period at close to 5.60%, and
while the flight to quality to this market was less pronounced than to U.S.
Treasuries, yields on these securities were also driven downward to a low of
4.40% by mid-October. The market retraced some of this drop back to 4.80% by
mid-November and traded within a relatively narrow range for the rest of the
reporting period.
The fund's average maturity was targeted in a 40- to 50-day range for most of
the reporting period, with the portfolio maximizing value through ongoing
relative value analysis. Agency securities were the dominant investment, as the
U.S. Treasury market remained expensive throughout the reporting period.
Short-term agency securities with maturities between one and three months were
the preferred investment to overnight agency discount notes, and the fund used a
Student Loan Marketing Association agency floating rate masternote agreement to
facilitate liquidity. The fund's structure remained barbelled, and combined
short-term fixed and floating rate agency securities with purchases of longer
securities with 6- to 12- month maturities. At the end of the reporting period,
approximately 27% of the fund was in government agency floating rate notes. With
the credit crisis now past, we would expect the Fed to keep monetary policy
unchanged in upcoming months. Barring a sudden economic collapse in a major
trading partner, the focus of the market is likely to return to the strength of
the domestic economy and it's implication for inflation. However, changing
economic and market developments are continuously monitored to best serve our
clients attracted to the short-term U.S. Government market.
Portfolio of Investments
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
GOVERNMENT AGENCIES-100.7%
$ 73,000,000 Federal Farm Credit Bank Notes, 4.870% - 5.550%, 4/1/1999 -
6/1/1999 $ 73,032,756
196,540,000 1 Federal Farm Credit Bank, Discount Notes, 4.680% - 4.830%,
2/2/1999 - 8/27/1999 194,486,566
105,000,000 2 Federal Farm Credit Bank, Floating Rate Notes, 4.717% -
5.021%,
2/1/1999 - 3/1/1999 104,966,428
54,300,000 Federal Home Loan Bank Notes, 4.790% - 5.705%, 5/5/1999 -
2/4/2000 54,281,269
1,169,214,000 1 Federal Home Loan Bank, Discount Notes, 4.610% - 5.360%,
2/3/1999 - 7/7/1999 1,162,641,628
324,500,000 2 Federal Home Loan Bank, Floating Rate Notes, 4.740% -
5.230%,
2/1/1999 - 3/1/1999 324,403,902
43,000,000 Student Loan Marketing Association Notes, 5.400% - 5.890%,
2/10/1999 - 11/17/1999 43,113,226
149,000,000 2 Student Loan Marketing Association, Floating Rate Notes,
4.750% - 5.162%,
2/1/1999 - 2/2/1999 148,948,075
35,200,000 2 Student Loan Marketing Association, Floating Rate Master
Note,
4.962%, 2/2/1999 35,200,000
91,485,000 1 Tennessee Valley Authority, Discount Notes, 4.680% - 4.740%,
2/18/1999 - 3/9/1999 91,167,741
TOTAL GOVERNMENT AGENCIES 2,232,241,591
TOTAL INVESTMENTS (AT AMORTIZED COST) 3 $ 2,232,241,591
</TABLE>
1 The issue shows the discount rate at time of purchase.
2 Current rate and next reset date shown.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($2,216,038,064) at January 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in securities, at amortized cost and value $ 2,232,241,591
Income receivable 5,638,374
Deferred organizational costs 7,239
Other assets 28,175
TOTAL ASSETS 2,237,915,379
LIABILITIES:
Payable for investments purchased $ 10,988,340
Income distribution payable 8,907,768
Payable to Bank 1,682,737
Accrued expenses 298,470
TOTAL LIABILITIES 21,877,315
Net assets for 2,216,038,064 shares outstanding $ 2,216,038,064
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PROCEEDS PER
SHARE:
INSTITUTIONAL SHARES:
$985,647,188 / 985,647,188 shares outstanding $1.00
INSTITUTIONAL SERVICE SHARES:
$1,230,390,876 / 1,230,390,876 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 53,562,144
EXPENSES:
Investment advisory fee $ 2,033,117
Administrative personnel and services fee 766,485
Custodian fees 43,712
Transfer and dividend disbursing agent fees and expenses 28,341
Directors'/Trustees' fees 6,245
Auditing fees 6,628
Legal fees 4,497
Portfolio accounting fees 108,772
Shareholder services fee-Institutional Shares 1,208,495
Shareholder services fee-Institutional Service Shares 1,332,901
Share registration costs 92,373
Printing and postage 15,704
Insurance premiums 4,214
Miscellaneous 12,971
TOTAL EXPENSES 5,664,455
WAIVERS:
Waiver of investment advisory fee $ (1,045,213)
Waiver of shareholder services fee-Institutional Shares (1,208,495)
TOTAL WAIVERS (2,253,708)
Net expenses 3,410,747
Net investment income $ 50,151,397
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 50,151,397 $ 75,112,505
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
Institutional Shares (24,434,763) (40,176,975)
Institutional Service Shares (25,716,634) (34,935,530)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS (50,151,397) (75,112,505)
SHARE TRANSACTIONS:
Proceeds from sale of shares 4,639,805,339 6,514,205,911
Net asset value of shares issued to shareholders in payment
of distributions declared 10,144,602 25,262,402
Cost of shares redeemed (4,217,831,459) (5,687,326,375)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 432,118,482 852,141,938
Change in net assets 432,118,482 852,141,938
NET ASSETS:
Beginning of period 1,783,919,582 931,777,644
End of period $ 2,216,038,064 $ 1,783,919,582
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.01
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.05) (0.05) (0.05) (0.01)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.58% 5.49% 5.35% 5.50% 0.94%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.20% 3 0.20% 0.20% 0.17% 0.20% 3
Net investment income 5.06% 3 5.35% 5.26% 5.28% 5.78% 3
Expense waiver/reimbursement 4 0.35% 3 0.37% 0.38% 0.44% 0.65% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $985,647 $953,268 $510,683 $199,243 $3,070
</TABLE>
1 Reflects operations for the period from June 2, 1995 (date of initial public
investment) to July 31, 1995.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 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 0.01
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.01)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.45% 5.23% 5.09% 5.23% 0.95%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.45% 3 0.45% 0.45% 0.42% 0.45% 3
Net investment income 4.82% 3 5.11% 4.97% 5.00% 5.55% 3
Expense waiver/reimbursement 4 0.10% 3 0.12% 0.13% 0.19% 0.40% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,230,391 $830,652 $421,095 $322,698 $76,165
</TABLE>
1 Reflects operations for the period from May 30, 1995 (date of initial public
investment) to July 31, 1995.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of six portfolios. The financial
statements included herein are only those of Government Obligations Tax-Managed
Fund (the "Fund"). The financial statements of the other portfolios are
presented separately. The assets of each portfolio are segregated and a
shareholder's interest is limited to the portfolio in which shares are held. The
investment objective of the Fund is to provide current income consistent with
stability of principal 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 provisions for federal taxes
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.
DEFERRED EXPENSES
The cost incurred by the Fund with respect to registration of its shares in its
first fiscal year, excluding the initial expense of registering its shares, have
been deferred and are being amortized using the straight-line method over a
period of five years from the Fund's commencement 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 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, 1999, capital paid-in aggregated $2,216,038,064.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 1,369,188,045 2,745,127,545
Shares issued to shareholders in payment of distributions
declared 5,122,588 17,109,018
Shares redeemed (1,341,931,507) (2,319,651,358)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 32,379,126 442,585,205
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES:
Shares sold 3,270,617,294 3,769,078,366
Shares issued to shareholders in payment of distributions
declared 5,022,014 8,153,384
Shares redeemed (2,875,899,952) (3,367,675,017)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 399,739,356 409,556,733
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 432,118,482 852,141,938
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Administrative Services, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.20% of the Fund's average daily net assets. The Adviser may voluntarily choose
to waive any portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on 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.
ORGANIZATIONAL EXPENSES
Organizational expenses of $26,061 were borne initially by the Adviser. The Fund
has agreed to reimburse the Adviser for its expenses. These expenses have been
deferred and are being amortized over the five-year period following the Fund's
effective date. For the period ended January 31, 1999, the Fund amortized $7,239
of organizational 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.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Administrative Services, Adviser to the
Fund, merged into Federated Investment Management Company (formerly,
Federated Advisers).
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
WILLIAM J. COPELAND
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
ANTHONY R. BOSCH
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
SEMI-ANNUAL REPORT
[Graphic]
Government Obligations Tax-Managed Fund
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Government Obligations Tax-Managed Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N856
Cusip 60934N849
G01611-01 (3/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Prime
Obligations Fund, a portfolio of Money Market Obligations Trust. This report
covers the first half of the fund's fiscal year, which is the six-month period
ended January 31, 1999. It begins with an investment review of the short-term
market from the fund's portfolio manager. Following the investment review are
the fund's portfolio of investments and financial statements.
In Prime Obligations Fund, your ready cash is at work pursuing daily income,
along with the additional advantages of daily liquidity and stability of
principal. 1 At the end of the reporting period, the fund's $9.2 billion in net
assets were invested across a wide range of high-quality, short-term money
market securities, including commercial paper (45.5%), variable rate instruments
(19.9%), short-term notes (12.4%), repurchase agreements (10.2%), certificates
of deposit (7.3%), and time deposits (7.2%).
Over the six-month reporting period, dividends paid to shareholders of
Institutional Shares and Institutional Service Shares totaled $0.03 and $0.02
per share, respectively. On the last day of the reporting period, the 30-day net
yields for Institutional Shares and Institutional Service Shares were 4.93% and
4.68%, respectively, while the 7-day net yields were
4.94% and 4.69%, respectively. 2
Thank you for your confidence in the daily earning power of Prime Obligations
Fund. Your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 1999
1 An investment in the fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
2 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the fund's current earnings.
Investment Review
Prime Obligations Fund invests in money market instruments maturing in 13 months
or less. The average maturity of these securities, computed on a dollar-weighted
basis, is restricted to 90 days or less. Portfolio securities must be rated in
the highest short-term rating category by one or more of the nationally
recognized statistical rating organizations or be of comparable quality to
securities having such ratings. Typical security types include, but are not
limited to: commercial paper, certificates of deposit, time deposits, variable
rate instruments and repurchase agreements.
Economic growth during the second half of 1998 resumed its above-average pace
after a brief slowdown in the second quarter. Specifically, third quarter gross
domestic product ("GDP") registered 3.90%, while fourth quarter GDP topped the
year at 5.60%. Despite the high growth, inflation remained subdued by all
measures. The consumer price index rose just 1.60% on an annualized basis for
the six months ending January 31, 1999. For the same time period, the producer
price index increased 1.70%, while the employment cost index grew 3.50%. Despite
the higher number associated with wage and benefit increases, the uptick in
productivity more than outweighed the higher cost base. This
productivity/technology factor has been referred to by Federal Reserve Board
("Fed") Chairman Greenspan in many of his positive discussions on economic
outlook.
Thirty-day commercial paper started the period at 5.56% on July 31, 1998,
hovered in the 5.50% range until September 23 when expectations began to surface
about the Fed lowering rates, and then increased as high as 5.51% during the
month of December due to year-end spread pressures. Those pressures evaporated
in January 1999 and the reporting period ended with a 4.81% rate for 30-day
commercial paper.
The money market yield curve looked lower but similarly shaped during the
reporting period. One-month and six-month commercial paper rates declined 75
basis points and 77 basis points, respectively, reflecting the accommodative Fed
policy based on concern in the market about the lack of liquidity in the U.S.
credit markets. The Fed responded to this by lowering the federal funds target
rate three times during the period- 25 basis points on September 29, 1998, 25
basis points on October 15, 1998, and 25 basis points on November 17, 1998, to
end the reporting period with a 4.75% target rate. The Fed also lowered the
discount rate twice by 25 points to 4.75% on October 15, 1998, and by 25 basis
points on November 17, 1998, to 4.50%.
The target average maturity range for Prime Obligations Fund was lengthened from
40-50 days to 45-55 days on October 1, 1998, reflecting the Fed's concern about
liquidity in the credit markets and the Fed easing scenario. In structuring the
fund, there was continued emphasis placed on positioning 30-35% of the fund's
assets in variable rate demand notes and accomplishing a modest barbell
structure.
During the six months ended January 31, 1999, the net assets of Prime
Obligations Fund increased from $7.4 billion to $9.2 billion. The effective
average maturity of the Fund on January 31, 1999, was 56 days.
Portfolio of Investments
January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
CERTIFICATE OF DEPOSIT-7.3%
BANKING-7.3%
$ 86,000,000 Bankers Trust Co., New York, 5.645% - 5.800%, 2/26/1999 -
4/23/1999 $ 85,996,267
79,000,000 Barclays Bank of Canada, (Guaranteed by Barclays Bank PLC,
London), 5.016% - 5.020%, 1/10/2000 - 1/13/2000 78,973,920
6,000,000 Canadian Imperial Bank of Commerce, 5.800%, 4/1/1999 5,999,443
15,000,000 Commerzbank AG, Frankfurt, 5.066%, 4/6/1999 15,000,260
43,000,000 KeyBank, N.A., 5.080%, 4/9/1999 43,000,000
150,000,000 Rabobank Nederland, Utrecht, 5.000%, 1/4/2000 150,000,000
111,000,000 Royal Bank of Canada, Montreal, 5.020%, 1/24/2000 110,958,197
126,500,000 Societe Generale, Paris, 5.800% - 5.900%, 4/6/1999 -
4/28/1999 126,474,843
15,000,000 Svenska Handelsbanken, Stockholm, 5.800%, 4/6/1999 14,998,867
25,000,000 Toronto-Dominion Bank, 5.020%, 1/10/2000 24,990,936
15,000,000 UBS AG, 4.939%, 1/13/2000 15,010,786
TOTAL CERTIFICATES OF DEPOSIT 671,403,519
COMMERCIAL PAPER-45.5% 1
BANKING-11.9%
24,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National
Bank PLC, London), 5.003%, 5/4/1999 23,700,693
165,000,000 Aspen Funding Corp., (Insured by MBIA INS, Guaranteed by
Deutsche Bank, AG), 4.852% - 5.634%, 2/1/1999 - 2/25/1999 164,700,367
2,970,000 BHS Long Term Care, (Lasalle National Bank, Chicago LOC),
5.397%, 3/8/1999 2,954,610
21,710,000 Benedictine Health System, (Lasalle National Bank, Chicago
LOC), 5.118% - 5.330%, 3/8/1999 21,599,348
380,000,000 Canadian Imperial Holdings, Inc., (Guaranteed by Canadian
Imperial Bank of Commerce), 4.962% - 5.079%, 2/22/1999 -
4/14/1999 377,199,427
30,000,000 Commonwealth Bank of Australia, Sydney, 5.307%, 3/22/1999 29,788,892
131,500,000 Cregem North America, Inc., (Guaranteed by Credit Communal
de Belgique, Brussles), 4.943% - 5.635%, 2/3/1999 -
3/29/1999 131,088,163
43,661,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank,
Cincinnati Support Agreement), 4.979% - 5.350%, 2/1/1999 -
7/19/1999 43,339,027
143,000,000 Societe Generale North America, Inc., (Guaranteed by Societe
Generale, Paris), 5.122% - 5.123%, 4/5/1999 - 4/7/1999 141,732,124
25,000,000 SunTrust Banks, Inc., 5.276%, 3/5/1999 24,884,000
50,000,000 UBS Finance (Delaware), Inc., (UBS AG GTD), 5.035%,
4/16/1999 49,491,250
60,000,000 Westpac Capital Corp., (Guaranteed by Westpac Banking Corp.
Ltd., Sydney), 5.029% - 5.032%, 4/12/1999 - 5/14/1999 59,275,442
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued 1
BANKING-CONTINUED
$ 22,668,000 Wood Street Funding Corp., (PNC Bank, N.A. Support
Agreement), 4.906% - 5.326%, 2/26/1999 - 3/18/1999 $ 22,548,450
TOTAL 1,092,301,793
BROKERAGE-0.3%
30,000,000 Credit Suisse First Boston, Inc., 4.892%, 4/19/1999 29,690,075
ELECTRIC POWER-0.2%
14,325,000 Southern Electric Generating Co. (SEGCO), (Guaranteed by
Alabama Power Co., Guaranteed by Georgia Power Co.), 5.018%,
3/9/1999 14,253,662
FINANCE-AUTOMOTIVE-2.1%
100,000,000 Chrysler Financial Co. LLC, 4.929%, 5/12/1999 98,652,778
100,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed
by General Motors Acceptance Corp.), 5.086%, 4/1/1999 99,176,567
TOTAL 197,829,345
FINANCE-COMMERCIAL-16.6%
77,500,000 Asset Securitization Cooperative Corp., 4.876% - 5.178%,
2/12/1999 - 3/26/1999 76,962,792
212,000,000 Beta Finance, Inc., 4.997% - 5.444%, 2/26/1999 - 5/28/1999 210,041,307
250,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 4.872% - 5.304%,
2/24/1999 - 4/12/1999 248,403,139
41,155,000 Falcon Asset Securitization Corp., 5.321%, 2/25/1999 41,010,958
217,000,000 General Electric Capital Corp., 4.886% - 5.650%, 2/4/1999 -
4/9/1999 216,108,900
253,719,000 Greenwich Funding Corp., 4.889% - 4.890%, 4/6/1999 -
4/15/1999 251,342,566
38,975,000 PREFCO-Preferred Receivables Funding Co., 5.274% - 5.405%,
2/9/1999 - 2/26/1999 38,870,257
45,366,000 Receivables Capital Corp., 5.450% - 5.468%, 2/4/1999 -
2/12/1999 45,303,692
396,000,000 Sheffield Receivables Corp., 4.910% - 5.499%, 2/19/1999 -
3/31/1999 394,409,419
TOTAL 1,522,453,030
FINANCE-RETAIL-7.5%
105,000,000 American Express Credit Corp., 4.888% - 5.023%, 4/12/1999 -
4/13/1999 103,999,729
139,000,000 Associates Corp. of North America, 4.867% - 5.401%, 3/9/1999
- 4/19/1999 138,073,175
205,500,000 Associates First Capital Corp., 4.852% - 5.073%, 2/1/1999 -
5/28/1999 204,048,621
75,000,000 Household Finance Corp., 4.852%, 2/1/1999 75,000,000
38,500,000 Island Finance, Puerto Rico, (Norwest Financial, Inc.,
Support Agreement) 5.219%, 2/25/1999 38,367,817
50,000,000 New Center Asset Trust, A1/P1 Series, 5.630%, 2/12/1999 49,916,278
75,000,000 Norwest Financial, Inc., 4.888%, 4/13/1999 74,285,563
TOTAL 683,691,183
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER-continued 1
INSURANCE-6.5%
$ 265,000,000 CXC, Inc., 4.879% - 5.404%, 2/4/1999 - 5/17/1999 $ 263,185,360
339,000,000 Marsh & McLennan Cos., Inc., 5.112% - 5.650%, 2/22/1999 -
5/24/1999 335,340,818
TOTAL 598,526,178
OIL & OIL FINANCE-0.4%
40,000,000 Chevron Transport Corp., (Guaranteed by Chevron Corp.),
5.080% - 5.091%, 3/12/1999 - 4/9/1999 39,707,850
TOTAL COMMERCIAL PAPER 4,178,453,116
SHORT-TERM NOTES-12.4%
BANKING-3.2%
195,000,000 Abbey National Treasury Services, PLC, 4.990%-5.500%,
1/10/2000 - 2/2/1999 194,962,094
60,000,000 SALTS III Cayman Island Corp., (Guaranteed by Bankers Trust
International, PLC), 5.589%, 3/12/1999 60,000,000
36,000,000 SALTS III Cayman Island Corp., (Guaranteed by Bankers Trust
International, PLC), 5.270%, 4/23/1999 36,000,000
TOTAL 290,962,094
BROKERAGE-2.0%
185,000,000 Goldman Sachs Group, LP, 5.020%, 3/1/1999 185,000,000
ELECTRICAL EQUIPMENT-0.5%
48,800,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General
Electric Co.), 5.370%, 5/17/1999 48,800,000
FINANCE-AUTOMOTIVE-1.6%
5,304,769 Chase Manhattan Auto Owner Trust 1998-C, Class A-1, 5.588%,
7/9/1999 5,304,516
4,538,178 Compass Auto Receivables Trust 1998-A, Class A-1, 5.659%,
7/15/1999 4,538,178
10,337,371 Ford Credit Auto Owner Trust 1998-C, Class A-2, 5.670%,
6/15/1999 10,337,371
68,975,764 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed
by General Motors Acceptance Corp.), 5.120%, 2/1/1999 68,975,764
21,581,181 MMCA Auto Owner Trust 1998-1, Class A-1, 5.621%, 8/16/1999 21,581,180
37,445,794 Premier Auto Trust 1998-5, Class A-1, 5.140%, 7/8/1999 37,438,650
TOTAL 148,175,659
FINANCE-COMMERCIAL-1.7%
50,000,000 2 Beta Finance, Inc., 5.130%, 10/25/1999 50,000,000
25,000,000 2 Beta Finance, Inc., 5.250%, 1/18/2000 25,023,178
20,000,000 2 Beta Finance, Inc., 5.690%, 3/2/1999 20,000,000
60,000,000 2 Beta Finance, Inc., 5.790%, 4/8/1999 59,998,915
TOTAL 155,022,093
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM NOTES-continued
FINANCE-EQUIPMENT-2.0%
$ 5,820,756 Case Equipment Receivables Trust 1998-B, Class A-1, 5.608%,
9/15/1999 $ 5,820,756
46,234,795 Newcourt Equipment Trust Securities 1998-2, Class A-1,
5.195%, 1/15/2000 46,234,795
127,000,000 Pitney Bowes Credit Corp., 5.046%, 2/10/1999 126,840,456
TOTAL 178,896,007
INSURANCE-1.4%
14,216,145 Americredit Automobile Receivables Trust 1998-C, Class A-1,
(Insured by FSA), 5.380%, 9/12/1999 14,216,145
16,568,424 Americredit Automobile Receivables Trust 1998-D, Class A-1,
(Insured by FSA), 5.199%, 11/12/1999 16,568,424
48,000,000 Marsh & McLennan Cos., Inc., 5.254%, 5/24/1999 48,000,000
49,000,000 WFS Financial, Series 1998-C Owner Trust, Class A-1,
(Guaranteed by FSA), 5.395%, 11/20/1999 49,000,000
TOTAL 127,784,569
TOTAL SHORT-TERM NOTES 1,134,640,422
VARIABLE RATE INSTRUMENTS-19.9% 3
BANKING-12.4%
8,880,000 4 C's LLC, Series 1998, (KeyBank, N.A. LOC), 4.910%,
2/4/1999 8,880,000
5,645,000 Abbott Foods, Series 1996, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 5,645,000
10,200,000 Active Living of Glenview, LLC, Series 1998, (Firstar Bank,
Milwaukee LOC), 5.000%, 2/3/1999 10,200,000
5,070,000 Alabama State IDA, Series 1994, Miltope Project, (Regions
Bank, Alabama LOC), 4.970%, 2/4/1999 5,070,000
6,565,000 Alabama State IDA, (Wellborn Cabinet, Inc.), Tax Revenue
Bonds, (Amsouth Bank N.A., Birmingham LOC), 5.000%, 2/4/1999 6,565,000
2,175,000 Alabama State IDA, Standard Furniture Project, Series 1995,
(Amsouth Bank N.A., Birmingham LOC), 5.000%, 2/4/1999 2,175,000
5,630,000 Alexandria Executive Club LP, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 5,630,000
2,905,000 Allegheny County, PA IDA, Series 1999-B, (Bank One, Ohio,
N.A. LOC), 4.910%, 2/4/1999 2,905,000
11,615,000 American Xtal Technology, Inc., Xtal Project, Series 1998,
(U.S. Bank, N.A., Minneapolis LOC), 4.920%, 2/4/1999 11,615,000
8,340,000 Arrow N.A., Inc., (Bank of America NT and SA, San Francisco
LOC), 4.910%, 2/4/1999 8,340,000
7,000,000 Asset Holdings Corp. VII, (U.S. Bank, N.A., Minneapolis
LOC), 4.910%, 2/4/1999 7,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 3,500,000 Asset Holdings V, (Bayerische Hypotheken-und Vereinsbank AG
LOC), 4.910%, 2/4/1999 $ 3,500,000
50,000 Associated Materials, Inc., (KeyBank, N.A. LOC), 4.930%,
2/5/1999 50,000
12,000,000 Association of American Medical Colleges, (Guaranteed by
Chase Manhattan Bank N.A., New York), 4.970%, 2/3/1999 12,000,000
3,000,000 Auth Family, LLC, 1998 Issue, (First National Bank of
Maryland, Baltimore LOC), 5.000%, 2/2/1999 3,000,000
3,800,000 Balboa Investment Group V, Series 1997, (Amsouth Bank N.A.,
Birmingham LOC), 5.000%, 2/4/1999 3,800,000
20,000,000 Barclays Bank PLC, London, 5.120%, 2/17/1999 20,000,000
4,000,000 Bardstown City, KY, (RJ Tower Project), Series 1995,
(Comerica, Inc. LOC), 5.000%, 2/4/1999 4,000,000
8,000,000 Bethesda Country Club, Inc., Series 1997, (First National
Bank of Maryland, Baltimore LOC), 5.000%, 2/2/1999 8,000,000
18,835,000 Beverly Hills Nursing Center, Inc., Medilodge Project,
Series 1996,
(KeyBank, N.A. LOC), 4.960%, 2/4/1999 18,835,000
1,592,790 Bowling Green Manor LP, (Huntington National Bank, Columbus,
OH LOC), 4.910%, 2/4/1999 1,592,790
9,055,000 Brentlinger Enterprises, (Huntington National Bank,
Columbus, OH LOC), 4.960%, 2/4/1999 9,055,000
10,000,000 Capital One Funding Corp., Series 1998-C, (Bank One, Ohio,
N.A. LOC), 4.910%, 2/4/1999 10,000,000
5,332,000 Capital One Funding Corp., Series 1994-A, (Bank One, Ohio,
N.A. LOC), 4.910%, 2/4/1999 5,332,000
13,167,000 Capital One Funding Corp., Series 1994-C, (Bank One, Ohio,
N.A. LOC), 4.910%, 2/4/1999 13,167,000
8,493,000 Capital One Funding Corp., Series 1994-D, (Bank One,
Kentucky LOC), 4.910%, 2/4/1999 8,493,000
365,000 Capital One Funding Corp., Series 1995-A, (Bank One,
Indiana, N.A. LOC), 4.910%, 2/4/1999 365,000
9,555,000 Capital One Funding Corp., Series 1995-B, (Bank One,
Kentucky LOC), 4.910%, 2/4/1999 9,555,000
20,680,000 Capital One Funding Corp., Series 1995-F, (Bank One, Ohio,
N.A. LOC), 4.910%, 2/4/1999 20,680,000
8,600,000 Capital One Funding Corp., Series 1996-H, (Bank One, West
Virginia, N.A. LOC), 4.910%, 2/4/1999 8,600,000
1,065,000 Carpenter, Thomas E., Series 1998, (Huntington National
Bank, Columbus, OH LOC), 4.960%, 2/4/1999 1,065,000
9,000,000 Carport, Inc., Series 1997, (Amsouth Bank N.A., Birmingham
LOC), 5.000%, 2/4/1999 9,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 3,760,000 Cleveland Sportsplex Ltd., (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 $ 3,760,000
5,570,000 Clinton County, NY IDA, Bombardier Project, Series 1998-B,
(Marine Midland Bank N.A., Buffalo, NY LOC), 4.960%,
2/4/1999 5,570,000
8,300,000 Cloquet, MN, Series 1996-B Potlach Corp., (Credit Suisse
First Boston LOC), 5.000%, 2/3/1999 8,300,000
1,022,337 Clyde Manor LP, (Huntington National Bank, Columbus, OH
LOC), 4.910%, 2/4/1999 1,022,337
505,000 Colorado Health Facilities Authority, Development
Disabilities Center Project, Series 1998-F1, (Bank One,
Colorado LOC), 5.010%, 2/4/1999 505,000
1,100,000 Colorado Health Facilities Authority, Development
Disabilities Resource Center, Series 1998-C1, (Bank One,
Colorado LOC), 4.910%, 2/4/1999 1,100,000
3,000,000 Colorado Health Facilities Authority, Goodwill Industries of
Denver Project, Series 1998-G1, (Bank One, Colorado LOC),
4.910%, 2/4/1999 3,000,000
2,780,000 Columbia County, GA Development Authority, Series 1993,
(SunTrust
Banks, Inc. LOC), 4.950%, 2/3/1999 2,780,000
8,000,000 Commercial Contractors, Inc., Series 1998, (First National
Bank of Maryland, Baltimore LOC), 5.000%, 2/2/1999 8,000,000
7,500,000 Communications Corp. of America, Series 1998, (Wachovia Bank
of NC, N.A., Winston-Salem LOC), 4.920%, 2/3/1999 7,500,000
4,800,000 Damascus Company Ltd., Series 1998, (Huntington National
Bank, Columbus, OH LOC), 4.960%, 2/4/1999 4,800,000
9,000,000 David Lipscomb University, Series 1998, (SunTrust Bank,
Nashville LOC), 4.950%, 2/3/1999 9,000,000
8,510,000 Dewberry IV LP, Series 1997, (First National Bank of
Maryland, Baltimore LOC), 5.000%, 2/2/1999 8,510,000
5,490,000 Die-Matic Corp., (Huntington National Bank, Columbus, OH
LOC), 4.960%, 2/4/1999 5,490,000
4,500,000 Double H Plastics, Inc., Series 1998, (First Union National
Bank,
Charlotte, N.C. LOC), 4.950%, 2/3/1999 4,500,000
2,915,000 Douglas County, GA Development Authority, Heritage Bag
Project, Series 1998-B, (Wachovia Bank of NC, N.A., Winston-
Salem LOC), 4.970%, 2/4/1999 2,915,000
3,700,000 Eastwinds Investment, Ltd., (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 3,700,000
5,000,000 Fannin County IDA, Series 1998, Georgia Crown Distributing
Co. Project, (SunTrust Bank, Atlanta LOC), 4.950%, 2/3/1999 5,000,000
25,000,000 First Union National Bank, Charlotte, NC, 5.050%, 2/1/1999 25,000,000
4,690,000 Foothill Development Group, LLC, Series 1998, (U.S. Bank,
N.A., Minneapolis LOC), 4.910%, 2/4/1999 4,690,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 6,095,000 Fort Craig Limited Partnership, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 $ 6,095,000
1,375,000 Frederick County, MD, Thogar, LLC Facility, Series 1998-B,
(First National Bank of Maryland, Baltimore LOC), 5.000%,
2/2/1999 1,375,000
4,000,000 G.M.H. Enterprises, Inc., Series 1995, (National City Bank,
Ohio LOC), 4.920%, 2/4/1999 4,000,000
15,000,000 Galasso Materials, LLC and Galasso Holdings, LLC, Series
1998,
(KeyBank, N.A. LOC), 4.910%, 2/4/1999 15,000,000
2,720,000 Gerken Materials, Inc., Series 1995, (Huntington National
Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 2,720,000
3,620,000 Gerken Materials, Inc., Series 1997, (Huntington National
Bank, Columbus, OH LOC), 4.910%, 2/4/1999 3,620,000
13,330,000 Grand Aire Express, Inc., Series 1997, (National City Bank,
Ohio LOC), 4.920%, 2/4/1999 13,330,000
1,150,000 Great Lakes Brewing Co., (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 1,150,000
2,190,000 Grote Family LP, (Huntington National Bank, Columbus, OH
LOC), 4.910%, 2/4/1999 2,190,000
7,600,000 Gwinnett County, GA, Newell Recycling of Atlanta Series
1998, (Bank One, Texas N.A. LOC), 4.910%, 2/4/1999 7,600,000
5,000,000 Hazlet Manor Associates, Series 1998, (First National Bank
of Maryland, Baltimore LOC), 5.000%, 2/2/1999 5,000,000
3,500,000 Henderson City, KY, Vincent Industrial Plastics, Inc.,
(SunTrust Bank,
Nashville LOC), 4.950%, 2/4/1999 3,500,000
10,560,000 Hunt Club Apartments, Inc., (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 10,560,000
410,000 Illinois Development Finance Authority, Series 1996-B Nimlok
Co., Project, (Bank One, Illinois, N.A. LOC), 5.060%,
2/4/1999 410,000
4,500,000 J.P. Plymouth Properties, LLC, Series 1999, (Michigan
National Bank, Farmington Hills LOC), 5.200%, 2/3/1999 4,500,000
18,510,000 JFK Family Borrowing, LLP, Series 1997, (First National Bank
of Maryland, Baltimore LOC), 4.950%, 2/2/1999 18,510,000
11,080,000 Kendall Health Care Properties, Series 1997, (SunTrust Bank,
Miami LOC), 5.050%, 2/3/1999 11,080,000
5,500,000 Kendall Health Care Properties, Series 1998-A, (SunTrust
Bank, Miami LOC), 5.050%, 2/3/1999 5,500,000
4,180,000 Kings Creek Country Club, Inc., Series 1997, (First Union
National Bank, Charlotte, NC LOC), 5.000%, 2/3/1999 4,180,000
2,400,000 L.H. Kroh, Inc., Series 1998, (First Union National Bank,
Charlotte, NC LOC), 5.000%, 2/3/1999 2,400,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 157,000,000 2 Liquid Asset Backed Securities Trust, Series 1996-3,
(Westdeutsche Landesbank Girozentrale Swap Agreement),
5.020%, 2/16/1999 $ 157,000,000
43,539,263 2 Liquid Asset Backed Securities Trust, Series 1997-1,
(Westdeutsche Landesbank Girozentrale Swap Agreement),
5.000%, 2/16/1999 43,539,262
8,500,000 Mack Industries, Series 1998, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 8,500,000
6,000,000 Maples Industries, Inc., (Regions Bank, Alabama LOC),
4.950%, 2/4/1999 6,000,000
23,000,000 Maryland EDC, Human Genome, Series 1997, (First National
Bank of Maryland, Baltimore LOC), 4.950%, 2/2/1999 23,000,000
1,495,000 McClellan Management, Inc., Genoa Health Care Center
Project, Series 1999, (Fifth Third Bank of Northwestern OH
LOC), 4.970%, 2/4/1999 1,495,000
6,100,000 Medford Convalescent & Nursing Center, Series 1997, (First
National Bank of Maryland, Baltimore LOC), 5.000%, 2/2/1999 6,100,000
3,032,000 Midwest Funding Corp., Series 1991-A, Class A-1, (Bank One,
Ohio, N.A. LOC), 4.910%, 2/4/1999 3,032,000
3,238,000 Midwest Funding Corp., Series 1991-C, (Bank One, Ohio, N.A.
LOC), 4.910%, 2/4/1999 3,238,000
1,428,000 Midwest Funding Corp., Series 1992-B, (Bank One, Ohio, N.A.
LOC), 4.910%, 2/4/1999 1,428,000
2,261,000 Midwest Funding Corp., Series 1992-C, (Bank One, Ohio, N.A.
LOC), 4.910%, 2/4/1999 2,261,000
4,720,000 Miller, James & Deborah, Series 1997, (First National Bank
of Maryland, Baltimore LOC), 5.000%, 2/2/1999 4,720,000
10,900,000 Mississippi Business Finance Corp., Choctaw Foods, Inc.,
(Rabobank Nederland, Utrecht LOC), 4.950%, 2/3/1999 10,900,000
5,800,000 Mississippi Business Finance Corp., Metalloy Project,
(Comerica Bank,
Detroit, MI LOC), 4.810%, 2/4/1999 5,800,000
17,000,000 Mississippi Business Finance Corp., Series 1994, Georgia
Gulf, (Wachovia Bank of NC, N.A., Winston-Salem LOC),
4.890%, 2/3/1999 17,000,000
2,000,000 Mississippi Business Finance Corp., Series 1995, Plantation
Pointe, LP Project, (SunTrust Bank, Atlanta LOC), 4.970%,
2/4/1999 2,000,000
13,365,000 North Oaks Partnership, Series 1998, (Lasalle National Bank,
Chicago LOC), 5.050%, 2/4/1999 13,365,000
2,175,000 Nova University, Inc. Lease Revenue Bonds, Series 1993,
Miami Dolphins Training Facility, (SunTrust Bank, South
Florida LOC), 4.950%, 2/3/1999 2,175,000
5,289,000 Oceana County Freezer Storage, Inc., Series 1998,
(Huntington National Bank, Columbus, OH LOC), 4.910%,
2/4/1999 5,289,000
2,145,000 Orangeburg Convalescent Care Center, Inc., Series 1995-A,
(PNC Bank, N.A. LOC), 4.938%, 2/1/1999 2,145,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 1,920,000 Port Authority of Saint Paul, MN, Bix Fruit Co., Series 1998-
B, (U.S. Bank, N.A., Minneapolis LOC), 5.190%, 2/4/1999 $ 1,920,000
3,350,000 Port Authority of Saint Paul, MN, National Checking Co.
Project, Series 1998-B, (U.S. Bank, N.A., Minneapolis LOC),
5.090%, 2/4/1999 3,350,000
2,500,000 Poseyville, IN, North American Green, Inc., Series 1998-A,
(Harris Trust & Savings Bank, Chicago LOC), 5.050%, 2/4/1999 2,500,000
1,500,000 Poseyville, IN, North American Green, Inc., Series 1998-B,
(Harris Trust & Savings Bank, Chicago LOC), 5.050%, 2/4/1999 1,500,000
9,000,000 Primex Funding Corp., Series 1997-A, (Bank One, Indiana,
N.A. LOC), 4.910%, 2/4/1999 9,000,000
48,209,093 2 Rabobank Optional Redemption Trust, Series 1997-101, 5.005%,
4/15/1999 48,209,093
2,800,000 Roby Company Ltd. Partnership, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 2,800,000
7,020,000 Roby Company Ltd. Partnership, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 7,020,000
9,000,000 Rollins College, Series 1998, 4.950%, 2/3/1999 9,000,000
11,850,000 Rooker, J.W., (Wachovia Bank of NC, N.A., Winston-Salem
LOC), 4.920%, 2/3/1999 11,850,000
2,600,000 San Jose, CA Multifamily Housing Revenue Bonds, Carlton
Plaza of San Jose, Series 1998 A-T, (Commerzbank AG,
Frankfurt LOC), 4.910%, 2/4/1999 2,600,000
100,000 Scranton Times, LP, (PNC Bank, N.A. LOC), 4.938%, 2/1/1999 100,000
33,000,000 Societe Generale, Paris, 4.883%, 2/1/1999 32,988,625
900,000 Solon, OH, Custom Graphics, (Bank One, Ohio, N.A. LOC),
4.910%, 2/4/1999 900,000
2,000,000 Souser Family Ltd. Partnership, Series 1998, (Dauphin
Deposit Bank and Trust LOC), 5.000%, 2/3/1999 2,000,000
6,500,000 Special Care Facilities, Daphne AL, Presbyterian Retirement
Corp.,
Series 1998-B, 4.960%, 2/4/1999 6,500,000
3,195,000 Spitzer Group, Series 1996-A, (Bank One, Ohio, N.A. LOC),
4.910%, 2/4/1999 3,195,000
1,910,000 Spitzer Group, Series 1996-B, (Bank One, Ohio, N.A. LOC),
4.910%, 2/4/1999 1,910,000
14,000,000 Spitzer Group, Series 1998-A, (Bank One, Ohio, N.A. LOC),
4.910%, 2/4/1999 14,000,000
11,583,000 Spitzer Group, Series 1998-B, (Bank One, Ohio, N.A. LOC),
4.910%, 2/4/1999 11,583,000
6,540,000 Springfield Limited, Series A, (UBS AG LOC), 4.910%,
2/4/1999 6,540,000
2,750,000 Stratford Properties, LP, Series 1998, (First National Bank
of Maryland, Baltimore LOC), 5.000%, 2/2/1999 2,750,000
4,715,000 TNT Co., Series 1998, (Huntington National Bank, Columbus,
OH LOC), 4.960%, 2/4/1999 4,715,000
46,815,000 Terry Griffin Gate Partners, Ltd., Series 1995, (Bank One,
Kentucky LOC), 4.910%, 2/3/1999 46,815,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 5,545,000 Van Dyne Crotty Co., Series 1996, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 $ 5,545,000
5,000,000 Van Dyne Crotty Co., Series 1998, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 5,000,000
3,135,000 Van Wyk Enterprises, Inc., Series 1998-A, (Huntington
National Bank, Columbus, OH LOC), 4.910%, 2/4/1999 3,135,000
2,165,000 Van Wyk Enterprises, Inc., Series 1998-B, (Huntington
National Bank, Columbus, OH LOC), 4.910%, 2/4/1999 2,165,000
425,000 Van Wyk Enterprises, Inc., Series 1998-C, (Huntington
National Bank, Columbus, OH LOC), 4.910%, 2/4/1999 425,000
3,575,000 Van Wyk Enterprises, Inc., Series 1998-D, (Huntington
National Bank, Columbus, OH LOC), 4.910%, 2/4/1999 3,575,000
645,000 Van Wyk Enterprises, Inc., Series 1998-E, (Huntington
National Bank, Columbus, OH LOC), 4.910%, 2/4/1999 645,000
815,000 Van Wyk Enterprises, Inc., Series 1998-F, (Huntington
National Bank, Columbus, OH LOC), 4.910%, 2/4/1999 815,000
1,000,000 Van Wyk, Bruce M., Series 1998, (Huntington National Bank,
Columbus, OH LOC), 4.910%, 2/4/1999 1,000,000
2,569,000 Vista Funding Corp., (Bank One, Ohio, N.A. LOC), 4.910%,
2/4/1999 2,569,000
3,891,000 Vista Funding Corp., Series 1994-A, (Fifth Third Bank of
Northwestern, OH LOC), 4.910%, 2/4/1999 3,891,000
1,350,000 Vista Funding Corp., Series 1995-B, (Fifth Third Bank of
Northwestern, OH LOC), 4.910%, 2/4/1999 1,350,000
9,430,000 Vista Funding Corp., Series 1995-D, (Fifth Third Bank of
Northwestern, OH LOC), 4.910%, 2/4/1999 9,430,000
5,912,000 Vista Funding Corp., Series 1995-E, (Bank One, Ohio, N.A.
LOC), 4.910%, 2/4/1999 5,912,000
7,311,000 Vista Funding Corp., Series 1998-B, (Fifth Third Bank of
Northwestern, OH LOC), 4.910%, 2/4/1999 7,311,000
4,530,000 Vulcan, Inc., (Amsouth Bank N.A., Birmingham LOC), 5.000%,
2/4/1999 4,530,000
971,431 Wauseon Manor II LP, (Huntington National Bank, Columbus, OH
LOC), 4.910%, 2/4/1999 971,431
2,840,000 Wexner Heritage House, (Huntington National Bank, Columbus,
OH LOC), 4.910%, 2/4/1999 2,840,000
11,965,000 Whetstone Care Center, LLC, Series 1998, (Fifth Third Bank,
Cincinnati LOC), 4.990%, 2/4/1999 11,965,000
3,000,000 White Bear Lake, MN, City of, Series 1993, (Norwest Bank,
Minnesota, N.A. LOC), 5.220%, 2/4/1999 3,000,000
16,500,000 William Hill Manor, Inc., Series 1998, (First National Bank
of Maryland, Baltimore LOC), 4.950%, 2/2/1999 16,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
VARIABLE RATE INSTRUMENTS-continued 3
BANKING-CONTINUED
$ 9,750,000 Willow Hill Industries, (Huntington National Bank, Columbus,
OH LOC), 4.910%, 2/4/1999 $ 9,750,000
3,425,000 Wood County, OH, IMCO Carbide Tool, Inc. Series 1998,
(Huntington National Bank, Columbus, OH LOC), 4.910%,
2/4/1999 3,425,000
2,250,000 YMCA of Central, OH, (Huntington National Bank, Columbus, OH
LOC), 4.910%, 2/4/1999 2,250,000
TOTAL 1,142,709,538
ELECTRICAL EQUIPMENT-0.5%
48,363,557 Northwest Airlines, Inc., (Guaranteed by General Electric
Co.), 4.938%, 2/1/1999 48,363,557
FINANCE-RETAIL-0.3%
27,300,000 2 Bishop's Gate Residential Mortgage Trust, Series 1998-2,
Class A-1, 5.747%, 2/10/1999 27,300,000
INSURANCE-6.7%
15,000,000 Allstate Life Insurance Co., 5.136%, 1/30/1999 15,000,000
50,000,000 First Allmerica Financial Life Insurance Co., 5.090%,
4/16/1999 50,000,000
86,000,000 Jackson National Life Insurance Co., 5.040%, 2/22/1999 86,000,000
58,600,000 Jackson National Life Insurance Co., 5.186%, 1/30/1999 58,600,000
14,000,000 Jackson National Life Insurance Co., 5.310%, 1/30/1999 14,000,000
62,333,573 2 Liquid Asset Backed Securities Trust, Series 1997-3, Senior
Notes, (Guaranteed by AMBAC), 5.254%, 3/28/1999 62,333,573
35,000,000 Monumental Life Insurance Company, 5.170%, 2/1/1999 35,000,000
32,000,000 Monumental Life Insurance Company, 5.250%, 2/1/1999 32,000,000
75,000,000 Principal Life Insurance Company, 5.410%, 1/30/1999 75,000,000
15,000,000 Security Life of Denver Insurance Co., 5.028%, 1/30/1999 15,000,000
25,000,000 Security Life of Denver Insurance Co., 5.311%, 1/30/1999 25,000,000
10,000,000 SunAmerica Life Insurance Company, 5.137%, 2/1/1999 10,000,000
70,000,000 Transamerica Life Insurance and Annuity Co., 5.136%,
1/30/1999 70,000,000
20,000,000 Transamerica Occidental Life Insurance Co., 5.525%, 3/6/1999 20,000,000
44,000,000 Travelers Insurance Company, 5.116%, 1/30/1999 44,000,000
TOTAL 611,933,573
TOTAL VARIABLE RATE INSTRUMENTS 1,830,306,668
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
TIME DEPOSIT-7.2%
BANKING-7.2%
$ 150,000,000 Chase Manhattan Bank (USA) N.A., Wilmington, 4.813%,
2/1/1999 $ 150,000,000
260,000,000 Deutsche Bank, AG, 4.750% - 4.813%, 2/1/1999 260,000,000
150,000,000 Dresdner Bank AG, Frankfurt, 4.750%, 2/1/1999 150,000,000
72,000,000 Mellon Bank N.A., Pittsburgh, 4.813%, 2/1/1999 72,000,000
25,000,000 Westdeutsche Landesbank Girozentrale, 4.813%, 2/1/1999 25,000,000
TOTAL TIME DEPOSITS 657,000,000
REPURCHASE AGREEMENTS-10.2% 4
116,160,000 Bankers Trust Co., New York, 4.820%, dated 1/29/1999, due
2/1/1999 116,160,000
308,212,000 Bear, Stearns and Co., 4.820%, dated 1/29/1999, due 2/1/1999 308,212,000
57,995,000 HSBC Securities, Inc., 4.820%, dated 1/29/1999, due 2/1/1999 57,995,000
100,395,000 Nationsbanc Montgomery Securities, Inc., 4.820%, dated
1/29/1999, due 2/1/1999 100,395,000
59,895,000 Prudential Securities, Inc., 4.820%, dated 1/29/1999, due
2/1/1999 59,895,000
88,095,000 Societe Generale Securities Corp., 4.730%, dated 1/29/1999,
due 2/1/1999 88,095,000
149,895,000 Toronto Dominion Securities (USA) Inc., 4.730%, dated
1/29/1999, due 2/1/1999 149,895,000
50,000,000 Warburg Dillon Reed LLC, 4.690%, dated 1/29/1999, due
2/1/1999 50,000,000
TOTAL REPURCHASE AGREEMENTS 930,647,000
TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 9,402,450,725
</TABLE>
1 Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
2 Denotes a restricted security which is subject to restrictions on resale under
Federal Securities laws. At January 31, 1999, these securities amounted to
$493,404,021 which represents 5.4% of net assets.
3 Current rate and next reset date shown.
4 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($9,176,246,798) at January 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation EDC -Economic Development
Commission FSA -Financial Security Assurance GTD -Guaranteed IDA -Industrial
Development Authority LOC -Letter of Credit MBIA -Municipal Bond Investors
Assurance SA -Support Agreement
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
January 31, 1999 (Unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase agreements $ 930,647,000
Investments in securities 8,471,803,725
Total investments, at amortized cost and value $ 9,402,450,725
Income receivable 38,226,867
Receivable for shares sold 142,079
Prepaid expenses 43,604
TOTAL ASSETS 9,440,863,275
LIABILITIES:
Payable for investments purchased 10,126,663
Payable for shares redeemed 11,273
Income distribution payable 38,441,017
Payable to Bank 215,025,203
Accrued expenses 1,012,321
TOTAL LIABILITIES 264,616,477
Net assets for 9,176,246,798 shares outstanding $ 9,176,246,798
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$5,458,771,224 / 5,458,771,224 shares outstanding $1.00
INSTITUTIONAL SERVICE SHARES:
$3,717,475,574 / 3,717,475,574 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
Six Months Ended January 31, 1999 (Unaudited)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 240,027,467
EXPENSES:
Investment advisory fee $ 8,906,595
Administrative personnel and services fee 3,357,787
Custodian fees 222,665
Transfer and dividend disbursing agent fees and expenses 178,132
Directors'/Trustees' fees 25,215
Auditing fees 6,664
Legal fees 11,936
Portfolio accounting fees 316,185
Shareholder services fee-Institutional Shares 6,352,125
Shareholder services fee-Institutional Service Shares 4,784,434
Share registration costs 261,872
Printing and postage 49,076
Insurance premiums 334,652
Miscellaneous 22,349
TOTAL EXPENSES 24,829,687
WAIVERS:
Waiver of investment advisory fee $ (4,590,588)
Waiver of shareholder services fee-Institutional Shares (6,352,125)
TOTAL WAIVERS (10,942,713)
Net expenses 13,886,974
Net investment income $ 226,140,493
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited) YEAR ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 226,140,493 $ 385,514,759
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
Institutional Shares (131,144,743) (219,104,923)
Institutional Service Shares (94,995,750) (166,409,836)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS (226,140,493) (385,514,759)
SHARE TRANSACTIONS:
Proceeds from sale of shares 59,934,410,893 81,194,972,477
Net asset value of shares issued to shareholders in payment
of distributions declared 49,510,001 107,652,252
Cost of shares redeemed (58,256,235,523) (79,679,142,681)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 1,727,685,371 1,623,482,048
Change in net assets 1,727,685,371 1,623,482,048
NET ASSETS:
Beginning of period 7,448,561,427 5,825,079,379
End of period $ 9,176,246,798 $ 7,448,561,427
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(For a Share Outstanding throughout each Period)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.06 0.03
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.03) (0.05) (0.05) (0.05) (0.06) (0.03)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.65% 5.64% 5.45% 5.58% 5.65% 3.47%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.20% 2 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income 5.16% 2 5.51% 5.35% 5.43% 5.60% 3.47%
Expense waiver/reimbursement 3 0.35% 2 0.35% 0.36% 0.36% 0.38% 0.14%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $5,458,771 $3,980,339 $3,588,082 $3,032,602 $2,457,797 $1,250,979
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(For a Share Outstanding throughout each Period)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994 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 0.05 0.05 0.05 0.05 0.003
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.003)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.52% 5.37% 5.19% 5.32% 5.38% 0.30%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 0.45% 3 0.45% 0.45% 0.45% 0.45% 0.34% 3
Net investment income 4.96% 3 5.24% 5.11% 5.13% 5.66% 4.68% 3
Expense waiver/reimbursement 4 0.10% 3 0.10% 0.11% 0.11% 0.13% 0.14% 3
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $3,717,476 $3,468,222 $2,236,997 $1,297,019 $500,954 $9,387
</TABLE>
1 Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of six portfolios. The financial
statements included herein are only those of Prime Obligations Fund (the
"Fund"), a diversified portfolio. The financial statements of the other
portfolios are presented separately. The assets of each portfolio are segregated
and a shareholder's interest is limited to the portfolio in which shares are
held. The investment objective of the Fund is to provide current income
consistent with stability of principal.
The Fund offers two classes of shares: Institutional Shares and
Institutional Service Shares.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
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.
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.
At July 31, 1998, the Fund, for federal tax purposes, had a capital loss
carryforward of $3,342, which will reduce the Fund's taxable income arising from
future net realized gain on investments, if any, to the extent permitted by the
Code, and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Fund of any liability for federal
tax. Pursuant to the Code, such capital loss carryforward will expire as
follows:
EXPIRATION YEAR EXPIRATION AMOUNT
2006 $3,342
Additionally, net capital losses of $9,477 attributable to security transactions
incurred after October 31, 1997, are treated as arising on the first day of the
Fund's next taxable year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
RESTRICTED SECURITIES
Restricted securities are securities that may only be resold upon registration
under federal securities laws or in transactions exempt from such registration.
Many restricted securities may be resold in the secondary market in transactions
exempt from registration. In some cases, the restricted securities may be resold
without registration upon exercise of a demand feature. Such restricted
securities may be determined to be liquid under criteria established by the
Trustees. The Fund will not incur any registration costs upon such resales.
Restricted securities are valued at amortized cost in accordance with Rule 2a-7
under the Act.
Additional information on each restricted security held at January 31, 1999 is
as follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION DATE ACQUISITION COST
<S> <C> <C>
Beta Finance, Inc., 5.130% 10/16/1998 $50,000,000
Beta Finance, Inc., 5.250% 1/14/1999 25,024,301
Beta Finance, Inc., 5.690% 2/24/1998 20,000,000
Beta Finance, Inc., 5.790% 4/1/1998 59,994,000
Bishop's Gate Residential Mortgage Trust 1998-2, Class A-1 12/4/1998 27,300,000
Liquid Asset Backed Securities Trust, Series 1996-3 8/15/1996 157,000,000
Liquid Asset Backed Securities Trust, Series 1997-1 2/19/1997 43,539,262
Liquid Asset Backed Securities Trust, Series 1997-3 6/27/1997 62,333,573
Rabobank Optional Redemption Trust, Series 1997-101 4/17/1997 - 4/17/1999 48,209,093
</TABLE>
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. At January 31, 1999, capital paid-in aggregated $9,176,246,798.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 46,288,195,081 55,022,265,485
Shares issued to shareholders
in payment of distributions
declared 30,708,848 69,275,080
Shares redeemed (44,840,471,892) (54,699,283,688)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE TRANSACTIONS 1,478,432,037 392,256,877
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES:
Shares sold 13,646,215,812 26,172,706,992
Shares issued to shareholders
in payment of distributions
declared 18,801,153 38,377,172
Shares redeemed (13,415,763,631) (24,979,858,993)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 249,253,334 1,231,225,171
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 1,727,685,371 1,623,482,048
</TABLE>
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 the Fund's
average daily net assets. The Adviser may voluntary 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.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Management, Adviser to the Fund, merged
into Federated Investment Management Company (formerly, Federated
Advisers).
Directors
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
WILLIAM J. COPELAND
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
ANTHONY R. BOSCH
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
SEMI-ANNUAL REPORT
[Graphic]
Prime Obligations Fund
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Prime Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N203
Cusip 60934N708
1022002 (3/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Tax-Free
Obligations Fund, a portfolio of Money Market Obligations Trust. This report
covers the first half of the fund's fiscal year, which is the six-month period
ended January 31, 1999. It begins with an investment review of the short-term
tax-free market from the fund's portfolio manager. Following the investment
review are the fund's portfolio of municipal bond investments and financial
statements.
In Tax-Free Obligations Fund, your cash is at work pursuing daily income, free
of federal income tax 1-along with the additional advantages of daily liquidity
and stability of principal2-by investing in short-term securities issued by
municipalities across the United States.
Over the six-month reporting period, tax-free dividends paid to shareholders of
Institutional Shares and Institutional Service Shares each totaled $0.02 per
share.
The 30-day net yield for Institutional Shares on the last day of the reporting
period was 3.02%. 3 This is equivalent to taxable yields of 4.37%, 4.71%, and
5.00% for investors in the 31%, 36%, and 39.6% federal tax brackets,
respectively.
The 30-day net yield for Institutional Service Shares on the last day of the
reporting period was 2.77%. 3 This is equivalent to taxable yields of 4.01%,
4.32%, and 4.58% for investors in the 31%, 36%, and 39.6% federal tax brackets,
respectively.
The 7-day net yields on the last day of the reporting period for Institutional
Shares and Institutional Service Shares were 2.81% and
2.56%, respectively. 3
At the end of the period, net assets surpassed the $3.6 billion mark.
Thank you for your confidence in the daily earning power of Tax-Free Obligations
Fund. Your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 1999
1 Income may be subject to the federal alternative minimum tax.
2 An investment in the fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
3 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the fund's current earnings.
Investment Review
Tax-Free Obligations Fund invests in high-quality, short-term, tax-exempt debt
securities and seeks to maintain a stable net asset value of $1.00. The Fund is
rated AAA 1 by Fitch IBCA, Inc. ("Fitch"). For the six-month reporting period,
the Fund's net assets increased from $3.22 billion to $3.67 billion. As of
January 31, 1999, the average maturity of the Fund was 42 days.
There were two central themes in the short-term money markets over the reporting
period ended January 31, 1999. First, the economy continued to grow at a robust
pace, with gross domestic product expanding in the third and fourth quarters of
1998 at 3.70% and 6.10%, respectively, and all indications that this same
strength had spilled over into 1999. Although the manufacturing sector was soft,
the housing and retail sectors continued to propel the economy forward. While
this growth rate is in excess of what has traditionally been viewed to be the
non-inflationary potential of the economy, inflation nevertheless remained
benign, perhaps reflecting advances in productivity that have enabled growth to
be achieved without upward pressure on prices. Under normal circumstances,
however, the growth trajectory of the economy would have been sufficient to make
Federal Reserve Board ("Fed") officials concerned about the inflationary threat
that could result from such above-trend growth.
Circumstances were not normal, however, as economic crises in countries overseas
and in Latin America were the second, and ultimately more dominant, theme over
the reporting period. In August 1998, the economic troubles in Asia spread to
encompass Russia and then Latin America. As fears that the United States could
not continue to be immune from what had become a global economic crisis weighed
heavily on the U.S. equity market, investors both domestic and abroad fled to
the perceived safety of the U.S. Treasury market. Yields on U.S. Treasury
securities were driven sharply downward, as investors shunned credit-sensitive
markets in favor of the safe haven of U.S. Treasuries, and a credit/liquidity
crisis in the U.S. financial markets became evident. Faced with this scenario,
the Fed voted to ease monetary policy by 25 basis points, bringing the federal
funds target rate down to 5.25%, in late September in an attempt to calm
investor fears. Market participants viewed this move to be too tentative,
however, and it was not until the Fed took two additional easing steps in
mid-October and November, bringing the federal funds target rate to 4.75%, that
some semblance of calm returned to the markets. Credit spreads narrowed over
this period, albeit not back to levels that pre-dated the crisis.
1 Fitch's money market fund ratings are an assessment of the safety of invested
principal and the ability to maintain a stable market value of the fund's
shares. Ratings are based on an evaluation of several factors, including credit
quality, diversification, and maturity of assets in the portfolio, as well as
management strength and operational capabilities. This rating, however, is
subject to change and does not remove market risks.
Movements in short-term interest rates reflected the turbulent economic
conditions early in the reporting period, followed by the relative tranquillity
of the markets once the Fed moves had their desired effect. The yield on the
one-year Treasury bill began the reporting period at 5.40%, but was driven
downward by the onslaught of investors-both domestic and abroad-seeking a safe
haven from the world economic uncertainty and the instability of the U.S. equity
market. The yield on this security reached a low of 3.85% by mid-October. As the
additional easing steps by the Fed calmed investors, the yield on this security
rose moderately to 4.60% by early November. Although the Fed took one additional
easing step in mid- November, the yield on this security traded within a
relatively narrow range of 4.40% to 4.60% for the remainder of the reporting
period.
In addition to economic fundamentals, short-term municipal securities were
strongly influenced by technical factors over this period, notably at the end of
the summer note issuance season and at year-end cash flows. Variable rate demand
notes (VRDNs), which comprise more than 50% of the fund's net assets, started
the period in the 3.60% range, but moved sharply higher in September to above
4.00% as supply and demand imbalances occurred. Yields then declined in October
before rising to the 4.00% range in the last months of the year due to
traditional year-end selling pressures. In early January 1999, as participants
looked to reinvest large coupon payments and heavy cash inflows, VRDNs yields
fell sharply and ended the reporting period at rich levels below 3.00%. Over the
six-month reporting period, VRDN yields averaged roughly 67% of taxable rates
making them attractive for investors at the 35% or higher federal tax brackets.
Municipal one-year, fixed-rate note prices rallied along with treasuries but
suffered from a lack of supply as yields fell over the reporting period from
3.60% to 2.90%. In this environment, VRDNs were the preferred investment,
outperforming newly issued fixed-rate notes on an income basis over most of the
reporting period. The average maturity of the fund moved lower over the
reporting period, reflecting this relative value decision and municipal
supply/demand factors. Overall, the average maturity target range for the fund
was 40 to 55 days over the reporting period.
The fund's structure remained barbelled, with a significant position in
seven-day VRDNs combined with purchases of municipal notes with 6- to 12- month
maturities. As the U.S. economy continues to chug along seemingly unaffected by
the countries around it, we would expect monetary policy to remain unchanged in
upcoming months, barring an economic collapse in one of our major trading
counterparts. However, changing economic and market developments are
continuously monitored to best serve our clients attracted to the short-term,
tax-exempt market.
Portfolio of Investments
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-99.1% 1
ALABAMA-2.7%
$ 3,770,000 Alabama HFA, 1995 Series E Weekly VRDNs (Royal Gardens
Apartments Project)/(SouthTrust Bank of Alabama, Birmingham
LOC) $ 3,770,000
2,570,000 Alabama State Docks Department, 5.25% Bonds (MBIA INS),
10/1/1999 2,604,920
7,215,000 Anniston, AL, IDB, (Series 1989-A) Weekly VRDNs (Union
Foundry Co.)/(Amsouth Bank N.A., Birmingham LOC) 7,215,000
4,440,000 Birmingham, AL IDA, Revenue Refunding Bonds Weekly VRDNs
(S.P. Hotel Company)/(Amsouth Bank N.A., Birmingham LOC) 4,440,000
3,500,000 Birmingham, AL Medical Clinic Board, Medical Clinic Revenue
Bonds (Series 1996) Weekly VRDNs (St. Martin's In The
Pines)/(Regions Bank, Alabama LOC) 3,500,000
2,995,000 Birmingham, AL Special Care Facilities Financing Authority,
Capital Improvement Revenue Bonds (Series 1995) Weekly VRDNs
(Methodist Home for the Aging (AL))/(SouthTrust Bank of
Alabama, Birmingham LOC) 2,995,000
3,000,000 Columbia, AL IDB, CDC Municipal Products, Inc. (Series
1997I) Weekly VRDNs (Alabama Power Co.)/(AMBAC INS)/(CDC
Municipal Products, Inc. LIQ) 3,000,000
3,000,000 Decatur, AL IDB, Revenue Refunding Bonds (Series 1993)
Weekly VRDNs (Allied-Signal, Inc.) 3,000,000
3,300,000 Homewood, AL IDA Weekly VRDNs (Mountain Brook Inn (Homewood
AL))/(SouthTrust Bank of Alabama, Birmingham LOC) 3,300,000
4,000,000 Hoover, AL Board of Education, Warrant Anticipation Notes
(Series 1998-A), 3.80% BANs, 2/1/1999 4,000,000
30,000,000 Jefferson County, AL, (Series A), 3.45% Warrants (Bayerische
Landesbank Girozentrale LOC), 10/1/1999 30,000,000
1,000,000 Jefferson County, AL, GO Warrants (Series 1996) Weekly VRDNs
(Bayerische Landesbank Girozentrale LOC) 1,000,000
1,965,000 Madison, AL IDA, (Series A) Weekly VRDNs (Executive
Inn)/(Amsouth Bank N.A., Birmingham LOC) 1,965,000
6,570,000 Marshall County, AL, Special Obligation School Refunding
Warrant (Series 1994) Weekly VRDNs (Marshall County, AL
Board of Education)/(Regions Bank, Alabama LOC) 6,570,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
ALABAMA-CONTINUED
$ 2,500,000 Mobile, AL IDA Weekly VRDNs (McRae's Industries,
Inc.)/(Nationsbank, N.A., Charlotte LOC) $ 2,500,000
500,000 Mobile, AL IDB, PCR (Series 1993A) Weekly VRDNs (Alabama
Power Co.)/(Alabama Power Co. GTD) 500,000
1,000,000 Mobile, AL IDB, Pollution Control Refunding Revenue Bonds,
(Series 1992) Weekly VRDNs (Air Products & Chemicals,
Inc.)/(Air Products & Chemicals, Inc. GTD) 1,000,000
400,000 Montgomery, AL IDB, (Series 1988A) Weekly VRDNs (Smith
Industries)/(SunTrust Bank, Atlanta LOC) 400,000
11,000,000 Montgomery, AL IDB, Pollution Control & Solid Disposal
Revenue, 2.80% CP (General Electric Co.), Mandatory Tender
2/4/1999 11,000,000
580,000 Tuscaloosa, AL IDB, Revenue Refunding Bonds (Series 1994)
Weekly VRDNs (Harco, Inc.)/(Amsouth Bank N.A., Birmingham
LOC) 580,000
4,695,000 Vincent, AL IDB Weekly VRDNs (Headquarters Partnership
Project)/(National Australia Bank, Ltd., Melbourne LOC) 4,695,000
TOTAL 98,034,920
ALASKA-1.0%
14,300,000 Alaska International Airports System, (Series 1998A), 4.36%
BANs, 4/1/1999 14,307,925
7,730,000 Alaska State Housing Finance Corp., PT-37 Daily VRDNs
(Merrill Lynch Capital Services, Inc. LIQ) 7,730,000
4,185,000 Alaska State Housing Finance Corp., General Mortgage Revenue
Bonds (Series F) Weekly VRDNs (Bank of America NT and SA, San
Francisco LIQ) 4,185,000
7,205,000 2 Alaska State Housing Finance Corp., PT-202, 3.70% TOBs
(Bayerische Hypotheken-und Vereinsbank AG LIQ), Optional
Tender 5/20/1999 7,205,000
2,600,000 Valdez, AK Marine Terminal, Revenue Bonds Daily VRDNs (Exxon
Pipeline Co. Project) 2,600,000
TOTAL 36,027,925
ARIZONA-1.5%
1,000,000 Apache County, AZ IDA, 1983 (Series A) Weekly VRDNs (Tucson
Electric Power Co.)/(Toronto-Dominion Bank LOC) 1,000,000
15,000,000 Arizona Agricultural Improvement & Power District, 3.20% CP
(Salt River Project, AZ Agricultural Improvement & Power
District), Mandatory Tender 2/18/1999 15,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
ARIZONA-CONTINUED
$ 3,100,000 Arizona Health Facilities Authority Weekly VRDNs (University
Physicians, Inc.)/(Bank One, Arizona N.A. LOC) $ 3,100,000
5,800,000 Arizona Health Facilities Authority, Pooled Loan Program
Revenue Bonds (Series 1985B) Weekly VRDNs (FGIC INS)/(Chase
Manhattan Bank N.A., New York and Chemical Bank, New York
LIQs) 5,800,000
5,000,000 Chandler, AZ IDA Weekly VRDNs (SMP II Limited
Partnership)/(Bank One, Arizona N.A. LOC) 5,000,000
3,570,000 Gila County, AZ IDA Weekly VRDNs (Cobre Valley
Hospital)/(Bank One, Arizona N.A. LOC) 3,570,000
4,680,000 Glendale, AZ IDA, Variable Rate Senior Living Facilities
Revenue Bonds Weekly VRDNs (Friendship Retirement
Corporation)/(Norwest Bank Minnesota, N.A. LOC) 4,680,000
1,500,000 Maricopa County, AZ Pollution Control Corp., (Series 1984)
Weekly VRDNs (El Paso Electric Co.)/(Barclays Bank PLC,
London LOC) 1,500,000
1,200,000 Phoenix, AZ IDA, (Series 1984) Weekly VRDNs (Del Mar Terrace
Apartments)/(Bank of America NT and SA, San Francisco LOC) 1,200,000
1,700,000 Pima County, AZ IDA Weekly VRDNs (Tucson Electric Power
Co.)/(Toronto-Dominion Bank LOC) 1,700,000
3,650,000 Pinal County, AZ IDA, PCR Bonds Daily VRDNs (Magma Copper
Co.)/(National Westminster Bank, PLC, London LOC) 3,650,000
1,000,000 Scottsdale, AZ IDA Weekly VRDNs (Scottsdale (Memorial
Hospitals))/(AMBAC INS)/(Credit Local de France LIQ) 1,000,000
8,060,000 Tolleson, AZ Municipal Finance Corporation, Revenue
Refunding Bonds (Series 1998) Weekly VRDNs (Citizens
Utilities Co.) 8,060,000
TOTAL 55,260,000
ARKANSAS-0.0%
1,000,000 Sheridan, AR IDA, (Series A) Weekly VRDNs (H.H. Robertson
Co.)/(PNC Bank, N.A. LOC) 1,000,000
CALIFORNIA-7.4%
6,000,000 Acalanes, CA Union High School District, 3.90% TRANs,
6/30/1999 6,004,716
11,000,000 California Community College Financing Authority, Trust
Receipts (Series 1998 FR/RI-A24) Weekly VRDNs (FSA
INS)/(Bank of New York, New York LIQ) 11,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
CALIFORNIA-CONTINUED
$ 82,175,000 California Public Capital Improvements Financing Authority,
Trust Receipts (Series 1996 FR-3) Weekly VRDNs (MBIA
INS)/(Bank of New York, New York LIQ) $ 82,175,000
14,000,000 California State, Floater Certificates (Series 1998-55)
Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal
Funding, Inc. LIQ) 14,000,000
26,000,000 California Statewide Communities Development Authority,
Trust Receipts (Series FR/RI-A23) Weekly VRDNs (FSA INS)/
(Bank of New York, New York LIQ) 26,000,000
25,000,000 Los Angeles County, CA, (Series A), 4.50% TRANs, 6/30/1999 25,081,582
59,800,000 Los Angeles, CA Unified School District, Trust Receipts
(Series FR/RI-A26) Weekly VRDNs (Bank of New York, New York
LIQ) 59,800,000
9,600,000 Northern California Transmission Agency, Trust Receipts
(Series 1998 FR/RI-16) Weekly VRDNs (California-Oregon
Transmission Project)/(MBIA INS)/(Bank of New York, New York
LIQ) 9,600,000
1,000,000 San Diego, CA Area Local Governments, Trust Receipts (Series
FR/RI-A25) Weekly VRDNs (Bank of New York, New York LIQ) 1,000,000
10,000,000 San Francisco, CA City & County Airport Commission, Floater
Certificates (Series 1998-31) Weekly VRDNs (FGIC INS)/
(Bank of America NT and SA, San Francisco LIQ) 10,000,000
7,500,000 San Mateo, CA Union High School District, 3.90% TRANs,
6/30/1999 7,505,895
4,000,000 Santa Barbara County, CA Schools Financing Authority, 4.50%
TRANs, 6/30/1999 4,013,066
9,575,000 Stanislaus County, CA Office of Education, 4.50% TRANs,
7/30/1999 9,613,422
5,000,000 Sunnyvale, CA Elementary School District, 3.90% TRANs,
6/30/1999 5,003,930
TOTAL 270,797,611
COLORADO-1.1%
3,900,000 Colorado Health Facilities Authority, (Series 1998c-1)
Weekly VRDNs (Developmental Disabilities Center)/(Bank One,
Colorado LOC) 3,900,000
2,475,000 Denver (City & County), CO, 3.60% TOBs (Blake Street
Compendium)/(Norwest Bank Minnesota, N.A. LOC), Mandatory
Tender 12/15/1999 2,475,000
14,660,000 Denver (City & County), CO, Merlot (Series 1997E) Weekly
VRDNs (Department of Aviation Airport System)/(MBIA INS)/
(First Union National Bank, Charlotte, N.C. LIQ) 14,660,000
19,000,000 Denver (City & County), CO, Trust Reciepts, Series 1998
(Series FR/RI-13) Weekly VRDNs (MBIA INS)/(Bank of New York,
New York LIQ) 19,000,000
TOTAL 40,035,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
CONNECTICUT-0.5%
$ 8,000,000 Connecticut State HEFA, (Series B) Weekly VRDNs
(Edgehill)/(Paribas, Paris LOC) $ 8,000,000
4,000,000 2 Connecticut State HFA, Variable Rate Certificates (Series
1998S), 3.50% TOBs (Bank of America NT and SA, San Francisco
LIQ), Optional Tender 8/20/1999 4,000,000
6,530,000 Connecticut State Transportation Infrastructure Authority
Weekly VRDNs (Commerzbank AG, Frankfurt LOC) 6,530,000
TOTAL 18,530,000
DISTRICT OF COLUMBIA-1.5%
2,070,000 District of Columbia Housing Finance Agency, Multifamily
Housing, 3.85% TOBs (Chastleton Project)/(Nationsbank, N.A.,
Charlotte LOC), Optional Tender 7/1/1999 2,070,000
8,430,000 District of Columbia, (Series A) Weekly VRDNs (American
University)/(National Westminster Bank, PLC, London LOC) 8,430,000
3,575,000 District of Columbia, Revenue Bonds (Series 1997B) Weekly
VRDNs (Association of American Medical Colleges)/(AMBAC
INS)/(Chase Manhattan Bank N.A., New York LIQ) 3,575,000
39,850,000 District of Columbia, Trust Receipts (Series 1998 FR/RI-A14)
Weekly VRDNs (MBIA INS)/(National Westminster Bank, PLC,
London LIQ) 39,850,000
TOTAL 53,925,000
FLORIDA-8.8%
15,000,000 ABN AMRO MuniTOPS Certificates Trust (Florida Non-AMT) Series
1998-8 Weekly VRDNs (Dade County, FL Water & Sewer
System)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 15,000,000
3,000,000 ABN AMRO MuniTOPS Certificates Trust (Florida Non-AMT)
Series 1998-9 Weekly VRDNs (Florida State Board of Education
Capital Outlay)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam
LIQ) 3,000,000
6,600,000 Broward County, FL HFA, (Series 1997) Weekly VRDNs
(Jacaranda Village Apartments)/(Marine Midland Bank N.A.,
Buffalo, NY LOC) 6,600,000
20,000,000 Collier County, FL School District, 4.00% RANs, 4/30/1999 20,010,202
3,600,000 Dade County, FL IDA, (Series 1985C) Weekly VRDNs (Dolphins
Stadium)/(Societe Generale, Paris LOC) 3,600,000
5,100,000 Dade County, FL IDA, (Series 1985D) Weekly VRDNs (Dolphins
Stadium)/(Societe Generale, Paris LOC) 5,100,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM MUNICIPALS-continued 1
FLORIDA-CONTINUED
$ 9,580,000 Eustis Health Facilities Authority, FL, Health Facilities
Revenue Bonds, (Series 1992) Weekly VRDNs (Florida
Hospital/Waterman, Inc. Project)/(SunTrust Bank, Central
Florida LOC) $ 9,580,000
7,000,000 Florida HFA, Multifamily Housing Revenue Bonds (1985 Series
SS) Weekly VRDNs (Woodlands Apartments)/(Northern Trust Co.,
Chicago, IL LOC) 7,000,000
5,120,000 Florida State Board of Education Administration, (CR55),
(Series 1989A), 3.45% TOBs (Citibank N.A., New York LIQ),
Optional Tender 3/1/1999 5,120,000
34,275,000 Florida State Board of Education Capital Outlay, (Series
1998-32) Weekly VRDNs (Florida State)/(Bank of America NT
and SA, San Francisco LIQ) 34,275,000
20,450,000 Florida State Department of Environmental Protection, Trust
Receipts FR/RI-A18 (Series 1998) Weekly VRDNs (FGIC
INS)/(National Westminster Bank, PLC, London LIQ) 20,450,000
5,400,000 Gulf Breeze, FL, Floating Rate Demand Revenue Bonds (Series
1985 B) Weekly VRDNs (FGIC INS)/(Credit Local de France LIQ) 5,400,000
17,195,000 Gulf Breeze, FL, Variable Rate Demand Revenue Bonds (Series
1995A) Weekly VRDNs (Florida Municipal Bond
Fund)/(Nationsbank, N.A., Charlotte LOC) 17,195,000
2,650,000 Halifax Hospital Medical Center, FL, 4.00% TANs
(Nationsbank, N.A., Charlotte LOC), 4/15/1999 2,651,786
46,200,000 Highlands County, FL Health Facilities, (Series 1996A
Accounts Receivable) Weekly VRDNs (Adventist Health
System)/(CAPMAC Holdings, Inc. INS)/(First National Bank of
Chicago LIQ) 46,200,000
29,800,000 Highlands County, FL Health Facilities, Variable Rate Demand
Revenue Bonds (Series 1996A) Weekly VRDNs (Adventist Health
System)/(SunTrust Bank, Central Florida LOC) 29,800,000
7,000,000 Indian River County, FL Hospital District, (Series 1985)
Weekly VRDNs (KBC Bank N.V., Brussels LOC) 7,000,000
7,570,000 Jacksonville Transportation Authority, PA-146 Weekly VRDNs
(Florida State)/(Merrill Lynch Capital Services, Inc. LIQ) 7,570,000
9,000,000 Jacksonville, FL Electric Authority, Class A Certificates
(Series 1997-2) Weekly VRDNs (Bank of New York, New York LIQ) 9,000,000
10,800,000 Jacksonville, FL, 2.80% CP (Bayerische Landesbank
Girozentrale, Credit Suisse First Boston, Morgan Guaranty
Trust Co., New York and SunTrust Bank, Miami LOCs),
Mandatory Tender 2/1/1999 10,800,000
2,580,000 Lee County, FL IDA, (Series 1985) Weekly VRDNs (Christian &
Missionary Alliance Foundation)/(Paribas, Paris LOC) 2,580,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
FLORIDA-CONTINUED
$ 80,000 Manatee County, FL HFA Weekly VRDNs (Carriage Club)/(Mellon
Bank N.A., Pittsburgh LOC) $ 80,000
6,025,000 Manatee County, FL HFA, Weekly Adjustable/Fixed Rate
Multifamily Housing Revenue Refunding Bonds (1990 Series A)
Weekly VRDNs (Harbour Pointe)/(Marine Midland Bank N.A.,
Buffalo, NY LOC) 6,025,000
4,700,000 Miami, FL Health Facilities Authority, Health Facilities
Revenue Bonds (Series 1992) Weekly VRDNs (Miami Jewish Home
and Hospital for the Aged, Inc.)/(SunTrust Bank, Miami LOC) 4,700,000
5,000,000 Orange County, FL Educational Facilities Authority, (Series
1998) Weekly VRDNs (Rollins College)/(Nationsbank, N.A.,
Charlotte LOC) 5,000,000
5,525,000 Polk County, FL IDA, PCR Refunding Bonds Weekly VRDNs (IMC
Fertilizer, Inc. Project)/(Rabobank Nederland, Utrecht LOC) 5,525,000
3,975,000 Putnam County, FL Development Authority, PCR Bonds (Pooled
Series 1984S) Weekly VRDNs (Seminole Electric Cooperative,
Inc. (FL))/(National Rural Utilities Cooperative Finance
Corp. LOC) 3,975,000
8,150,000 Putnam County, FL Development Authority, PCR Bonds (Series
1984H) Weekly VRDNs (Seminole Electric Cooperative, Inc.
(FL))/(National Rural Utilities Cooperative Finance Corp.
LOC) 8,150,000
7,245,000 St. Lucie County, FL, IDR Bonds (Series 1985) Weekly VRDNs
(Savannahs Hospital)/(Nationsbank, N.A., Charlotte LOC) 7,245,000
7,000,000 Tampa, FL, Occupational License Tax Bonds (Series 1996A)
Weekly VRDNs (FGIC INS)/(FGIC Securities Purchase, Inc. LIQ) 7,000,000
5,835,000 Volusia County, FL HFA Weekly VRDNs (Fisherman's
Landing)/(Mellon Bank N.A., Pittsburgh LOC) 5,835,000
TOTAL 321,466,988
GEORGIA-2.1%
7,500,000 Atlanta, GA, Urban Residential Finance Authority,
Multifamily Rental Housing Revenue Refunding Bonds (Series
1988A) Weekly VRDNs (West Paces Club Towers
Project)/(Societe Generale, Paris LOC) 7,500,000
8,000,000 2 Bibb County, GA, PT-199, 3.70% TOBs (Georgia State
GTD)/(Bayerische Hypotheken-und Vereinsbank AG LIQ),
Optional Tender 5/20/1999 8,000,000
14,600,000 Burke County, GA Development Authority, (8th Series) Daily
VRDNs (Georgia Power Co.) 14,600,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
GEORGIA-CONTINUED
$ 16,000,000 Burke County, GA Development Authority, PCRB's (Series
1998A), 3.05% CP (Oglethorpe Power Corp. Vogtle
Project)/(AMBAC INS)/(Rabobank Nederland, Utrecht LIQ),
Mandatory Tender 2/17/1999 $ 16,000,000
2,000,000 Clayton County, GA Housing Authority, Revenue Refunding
Bonds (Series 1992) Weekly VRDNs (Oxford Townhomes
Project)/(Amsouth Bank N.A., Birmingham LOC) 2,000,000
10,000,000 Clayton County, GA, (Series 1998), 4.25% Bonds, 8/1/1999 10,024,004
1,400,000 De Kalb County, GA Development Authority, (Series 1992)
Weekly VRDNs (American Cancer Society, GA)/(SunTrust Bank,
Atlanta LOC) 1,400,000
12,145,000 Georgia State, (Series 1995C) PA-249 Weekly VRDNs (Merrill
Lynch Capital Services, Inc. LIQ) 12,145,000
6,000,000 Rockdale County, GA Hospital Authority, Revenue Anticipation
Certificates (Series 1994) Weekly VRDNs (Rockdale
Hospital)/(SunTrust Bank, Atlanta LOC) 6,000,000
TOTAL 77,669,004
IDAHO-0.3%
10,000,000 Idaho Health Facilities Authority, (Series 1995), 3.25% CP
(Holy Cross Health System Corp.)/(Morgan Guaranty Trust Co.,
New York LIQ), Mandatory Tender 2/18/1999 10,000,000
ILLINOIS-7.0%
20,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
Series 1998-14 Weekly VRDNs (Cook County, IL)/(FGIC
INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 20,000,000
12,500,000 Chicago, IL Board of Education, Merlots (Series 1997E)
Weekly VRDNs (AMBAC INS)/(First Union National Bank,
Charlotte, NC LIQ) 12,500,000
20,000,000 Chicago, IL Board of Education, Variable Rate Certificates
(Series 1996BB) Weekly VRDNs (MBIA INS)/(Bank of America NT
and SA, San Francisco LIQ) 20,000,000
10,000,000 Chicago, IL Public Building Commission, (Series 1997) Lehman
TR/FR-15 Weekly VRDNs (Chicago, IL Board of Education)/(MBIA
INS)/(Bank of New York, New York LIQ) 10,000,000
3,400,000 Chicago, IL Water Revenue Bonds, Refunding Bonds, 5.00%
Bonds (AMBAC INS), 11/1/1999 3,445,846
2,760,000 Chicago, IL Weekly VRDNs (Canadian Imperial Bank of Commerce
LOC) 2,760,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
ILLINOIS-CONTINUED
$ 9,400,000 Chicago, IL, Floater Certificates (Series 1998-92) Weekly
VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal
Funding, Inc. LIQ) $ 9,400,000
20,000,000 Chicago, IL, MERLOTs (Series 1997 V) Weekly VRDNs (Chicago,
IL Water Revenue Bonds)/(FGIC INS)/(First Union National
Bank, Charlotte, NC LIQ) 20,000,000
20,000,000 2 Chicago, IL, Variable Rate Certificates (Series 1998M),
3.70% TOBs (FGIC INS)/(Bank of America NT and SA, San
Francisco LIQ), Optional Tender 8/4/1999 20,000,000
9,905,000 Chicago, IL, Water Revenue Bonds (PT-129) Weekly VRDNs (FGIC
INS)/(Merrill Lynch Capital Services, Inc. LIQ) 9,905,000
9,940,000 2 Cook County, IL, (Series 1998a) PT-1111, 3.175% TOBs (FGIC
INS)/(Merrill Lynch Capital Services, Inc. LIQ), Mandatory
Tender 5/13/1999 9,940,000
350,000 Darien, IL IDA, (Series 1989C) Weekly VRDNs (KinderCare
Learning Centers, Inc.)/(Toronto-Dominion Bank LOC) 350,000
3,800,000 Galesburg, IL, (Series 1996) Weekly VRDNs (Knox College
Project)/(Lasalle National Bank, Chicago LOC) 3,800,000
170,000 Hopedale Village, IL, (Series 1998) Weekly VRDNs (Hopedale
Medical Foundation)/(Bank One, Illinois, N.A. LOC) 170,000
3,000,000 Illinois Development Finance Authority Weekly VRDNs
(Newlywed Food)/(Mellon Bank N.A., Pittsburgh LOC) 3,000,000
2,600,000 Illinois Development Finance Authority, (Series 1997) Weekly
VRDNs (Ada S. McKinley Community Services, Inc.)/(Harris
Trust & Savings Bank, Chicago LOC) 2,600,000
4,000,000 Illinois Development Finance Authority, Cultural Facilities
Revenue Bonds Weekly VRDNs (Burpee Museum of Natural
History)/(American National Bank, Chicago LOC) 4,000,000
2,500,000 Illinois Educational Facilities Authority, Revenue Bonds
(Series 1995) Weekly VRDNs (Ravinia Festival Association
(IL))/(NBD Bank, Michigan LOC) 2,500,000
21,100,000 Illinois Health Facilities Authority Weekly VRDNs (OSF
Health Care Systems) 21,100,000
15,000,000 Illinois Health Facilities Authority, (Series 1998), 3.70%
TOBs (Evanston Northwestern Healthcare Corp.), Mandatory
Tender 6/1/1999 15,000,000
35,000,000 Illinois Health Facilities Authority, Revenue Bonds (Series
1985B) Weekly VRDNs (OSF Health Care Systems)/(Bank of
America, IL and Rabobank Nederland, Utrecht LIQs) 35,000,000
1,000,000 Illinois Health Facilities Authority, Revolving Fund Pooled
Financing Program (Series 1985F) Weekly VRDNs (NBD Bank,
Michigan LOC) 1,000,000
31,725,000 Metropolitan Pier & Exposition Authority, IL, PT-1079 Weekly
VRDNs (McCormick Place)/(FGIC INS)/(Merrill Lynch Capital
Services, Inc. LIQ) 31,725,000
TOTAL 258,195,846
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
INDIANA-1.3%
$ 665,000 Dale, IN IDA Weekly VRDNs (Spencer Industries)/(National
City Bank, Kentucky LOC) $ 665,000
1,355,000 Indiana Health Facilities Finance Authority Rehabilitation
Center Weekly VRDNs (Crossroads Rehabilitation Center)/(Bank
One, Indiana, N.A. LOC) 1,355,000
19,000,000 Indianapolis, IN Local Public Improvement Bond Bank, (Series
1998G), 3.50% BANs, 8/15/1999 19,049,698
4,485,000 Indianapolis, IN, Variable Rate Demand Economic Development
Revenue Bonds, (Series 1995) Weekly VRDNs (Pleasant Run
Children's Homes, Inc.)/(Fifth Third Bank, Cincinnati LOC) 4,485,000
4,900,000 Lafayette School Corp., IN, (1999 First Series), 3.40% TAWs,
12/31/1999 4,908,636
2,035,000 St. Joseph County, IN, Multi-Mode Variable Rate Economic
Development Revenue Bonds (Series 1998) Weekly VRDNs (South
Bend Heritage Foundation, Inc.)/(KeyBank, N.A. LOC) 2,035,000
14,750,000 Washington Township, IN Metropolitan School District,
Temporary Loan Warrants, 3.35% TANs, 6/30/1999 14,763,295
TOTAL 47,261,629
IOWA-0.9%
32,000,000 Iowa School Corporations, (1998-99 Series A), 4.50% Warrants
(FSA INS), 6/25/1999 32,103,522
KENTUCKY-2.0%
1,110,000 Boone County, KY, Revenue Refunding Bonds Weekly VRDNs
(Spring Meadow Associates)/(Huntington National Bank,
Columbus, OH LOC) 1,110,000
5,800,000 Carrollton & Henderson KY, Public Energy Authority, (Series
A), 4.50% Bonds (FSA INS), 1/1/2000 5,869,670
7,500,000 Jefferson County, KY, Adjustable Rate Industrial Building
Revenue Refunding Bonds (Series 1997) Weekly VRDNs (Kosmos
Cement Co. Partnership)/(Societe Generale, Paris LOC) 7,500,000
25,000,000 Kentucky Asset/Liability Commission, Series A, 4.50% TRANs,
6/25/1999 25,136,458
35,000,000 Owensboro, KY, (Series 1996) Weekly VRDNs (Owensboro Mercy
Health System, Inc. Project)/(Bank of America, IL LOC) 35,000,000
TOTAL 74,616,128
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
LOUISIANA-0.1%
$ 800,000 Calcasieu Parish, LA, IDB, PCR Bonds Weekly VRDNs (Citgo
Petroleum Corp.)/(Westdeutsche Landesbank Girozentrale and
Westdeutsche Landesbank Girozentrale LOCs) $ 800,000
5,000,000 New Orleans, LA, Class A Certificates (Series 1998-1) Weekly
VRDNs (AMBAC INS)/(Bank of New York, New York LIQ) 5,000,000
TOTAL 5,800,000
MARYLAND-3.3%
800,000 Baltimore County, MD, (Series 1992) Weekly VRDNs (Sheppard &
Enoch Pratt Hospital Facility)/(Societe Generale, Paris LOC) 800,000
1,000,000 Baltimore, MD PCR Weekly VRDNs (SCM Plants, Inc.)/(Barclays
Bank PLC, London LOC) 1,000,000
2,000,000 Baltimore, MD, Variable Rate Demand/Fixed Rate Refunding
Bond (1988 Issue) Weekly VRDNs (University West LP)/(First
National Bank of Maryland, Baltimore LOC) 2,000,000
2,150,000 Harford County, MD, (Series 1988) Weekly VRDNs (1001
Partnership Facility)/(First National Bank of Maryland,
Baltimore LOC) 2,150,000
5,580,000 Howard County, MD, (Series 1995) Weekly VRDNs (Bluffs at
Clarys Forest Apartments)/(First National Bank of Maryland,
Baltimore LOC) 5,580,000
200,000 Maryland EDC, Pooled Financing Revenue Bonds, (Series 1995)
Weekly VRDNs (Maryland Municipal Bond Fund)/(Nationsbank,
N.A., Charlotte LOC) 200,000
2,835,000 Maryland EDC, Variable Rate Demand/Fixed Rate Refunding
Revenue Bonds (1997 Issue) Weekly VRDNs (Jenkins Memorial
Nursing Home, Inc. Facility)/(First National Bank of
Maryland, Baltimore LOC) 2,835,000
6,960,000 Maryland Health & Higher Educational Facilities Authority,
(Series 1998A) Weekly VRDNs (Charlestown Community)/(First
Union National Bank, Charlotte, NC LOC) 6,960,000
12,800,000 Maryland Health & Higher Educational Facilities Authority,
Revenue Bonds (Series 1994) Weekly VRDNs (University
Physicians, Inc.)/(First National Bank of Maryland,
Baltimore LOC) 12,800,000
7,200,000 Maryland State Community Development Administration, (PA-
170) Weekly VRDNs (Merrill Lynch Capital Services, Inc. LIQ) 7,200,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
MARYLAND-CONTINUED
$ 23,820,000 2 Maryland State Community Development Administration, (Series
1997), PT-123, 3.10% TOBs (Commerzbank AG, Frankfurt LIQ),
Mandatory Tender 10/7/1999 $ 23,820,000
19,655,000 Maryland State, (Series 1998) PA-256 Weekly VRDNs (Merrill
Lynch Capital Services, Inc. LIQ) 19,655,000
18,590,000 Maryland State, Floater Certificate Series 1998-64 Weekly
VRDNs (Morgan Stanley, Dean Witter Municipal Funding, Inc.
LIQ) 18,590,000
1,819,000 Montgomery County, MD Housing Opportunities Commission,
Variable Rate Housing Revenue Bonds (Series 1998 Issue I)
Weekly VRDNs (Byron House, Inc. Facility)/(First National
Bank of Maryland, Baltimore LOC) 1,819,000
3,000,000 Montgomery County, MD, EDR Weekly VRDNs (Howard Hughes
Medical Center) 3,000,000
12,000,000 Westminster, MD, (Series 1997) Weekly VRDNs (Western
Maryland College, Inc. Facilities)/(First National Bank of
Maryland, Baltimore LOC) 12,000,000
TOTAL 120,409,000
MASSACHUSETTS-2.7%
16,166,000 ABN AMRO MuniTOPS Certificates Trust (Massachusetts Non-AMT)
Series 1998-12 Weekly VRDNs (Massachusetts Water Resources
Authority)/(MBIA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 16,166,000
25,555,916 Clipper Tax-Exempt Trust, (Series A) Weekly VRDNs
(Massachusetts State Lottery Commission)/(AMBAC INS)/(State
Street Bank and Trust Co. LIQ) 25,555,916
4,100,000 Commonwealth of Massachusetts, (1997 Series B) Weekly VRDNs
(Landesbank Hessen-Thueringen, Frankfurt LIQ) 4,100,000
10,000,000 Framingham, MA, 4.00% BANs, 2/5/1999 10,000,368
20,000,000 Holden, MA, 3.75% BANs, 10/1/1999 20,064,180
9,590,000 Massachusetts Turnpike Authority, Refunded-Guaranteed BANs
(Series A), 5.00% Bonds (United States Treasury PRF),
6/1/1999 9,626,558
14,321,000 Massachusetts Turnpike Authority, Variable Rate Certificates
(Series 1997N) Weekly VRDNs (MBIA INS)/(Bank of America NT
and SA, San Francisco LIQ) 14,321,000
TOTAL 99,834,022
MICHIGAN-4.2%
10,500,000 ABN AMRO MuniTOPS Certificates Trust (Michigan Non-AMT)
Series 1998-11 Weekly VRDNs (DeWitt, MI Public Schools)/(FSA
INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 10,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
MICHIGAN-CONTINUED
$ 12,704,000 ABN AMRO MuniTOPS Certificates Trust (Michigan Non-AMT)
Series 1998-13 Weekly VRDNs (Michigan State Trunk
Line)/(MBIA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) $ 12,704,000
4,000,000 Battle Creek, MI Economic Development Corporation, Limited
Obligation Economic Development Revenue Refunding Bonds
(Series 1992) Weekly VRDNs (Michigan Carton & Paperboard
Co.)/(American National Bank, Chicago LOC) 4,000,000
2,100,000 Bruce Township, MI Hospital Finance Authority, Tender
Securities (ARTS) Weekly VRDNs (Sisters of Charity Health
Care System)/(MBIA INS)/(Morgan Guaranty Trust Co., New York
LIQ) 2,100,000
800,000 Detroit, MI Water Supply System, Water Supply System Revenue
and Revenue Refunding Bonds (Series 1993) Weekly VRDNs (FGIC
INS)/(FGIC Securities Purchase, Inc. LIQ) 800,000
1,800,000 Garden City, MI HFA, Hospital Revenue Bonds (Series 1996A)
Weekly VRDNs (Garden City Hospital, Osteopathic)/(National
City Bank, Michigan/Illinois LOC) 1,800,000
1,100,000 Grand Rapids, MI EDR, Floating/Fixed Rate Demand Bonds
(Series 1983-B) Weekly VRDNs (Amway Grand Plaza Hotel
Facilities)/(Old Kent Bank & Trust Co., Grand Rapids LOC) 1,100,000
2,000,000 Grand Rapids, MI Economic Development Corp., Economic
Development Revenue Refunding Bonds (Series 1991-A) Weekly
VRDNs (Amway Hotel Corp.)/(Michigan National Bank,
Farmington Hills LOC) 2,000,000
1,000,000 Grand Rapids, MI Water Supply System, Series 1993 Weekly
VRDNs (FGIC INS)/(Societe Generale, Paris LIQ) 1,000,000
13,825,000 Grand Traverse County, MI Hospital Finance Authority,
Revenue & Refunding Bonds (PT-234) Weekly VRDNs (Munson
Healthcare)/(AMBAC INS)/(Credit Suisse First Boston LIQ) 13,825,000
1,455,000 Ingham County, MI Economic Development Corp., Adjustable
Demand Limited Obligation Revenue Bonds (Series 1995) Weekly
VRDNs (Martin Luther Memorial Home, Inc.)/(Bank One,
Indiana, N.A. LOC) 1,455,000
3,500,000 Kalamazoo, MI Economic Development Corp., 1995 Limited
Obligation Revenue Refunding Bonds Weekly VRDNs (Wyndham
Project, MI)/(National City Bank, Michigan/Illinois LOC) 3,500,000
925,000 Michigan Higher Education Facilities Authority, Variable
Rate Demand Limited Obligation Revenue Bonds (Series 1997)
Weekly VRDNs (Davenport College of Business)/(Old Kent Bank
& Trust Co., Grand Rapids LOC) 925,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
MICHIGAN-CONTINUED
$ 14,465,000 Michigan State Building Authority, (Series 1), 3.30% CP
(Canadian Imperial Bank of Commerce LOC), Mandatory Tender
2/9/1999 $ 14,465,000
1,700,000 Michigan State Hospital Finance Authority, (Series A) Weekly
VRDNs (National City Bank, Michigan/Illinois LOC) 1,700,000
4,000,000 Michigan State Hospital Finance Authority, (Series A) Weekly
VRDNs (OSF Health Care Systems) 4,000,000
19,650,000 Michigan State Hospital Finance Authority, MERLOTs (Series
1997A) Weekly VRDNs (Detroit Medical Center Obligated
Group)/(AMBAC INS)/(First Union National Bank, Charlotte, NC
LIQ) 19,650,000
2,900,000 Michigan State Housing Development Authority, (Series 1991)
Weekly VRDNs (Regency Square Apartments)/(National Australia
Bank, Ltd., Melbourne LOC) 2,900,000
15,000,000 Michigan State Housing Development Authority, MERLOTs
(Series G) Weekly VRDNs (MBIA INS)/(First Union National
Bank, Charlotte, NC LIQ) 15,436,957
8,000,000 Michigan Strategic Fund, Limited Obligation PCR Bonds
(Series 1993) Weekly VRDNs (Allied-Signal, Inc.) 8,000,000
335,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds
(Series 1991) Weekly VRDNs (Martin Luther Memorial Home,
Inc.)/(Bank One, Indiana, N.A., National Australia Bank,
Ltd., Melbourne and National Australia Bank, Ltd., Melbourne
LOCs) 335,000
1,200,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds
(Series 1995) Weekly VRDNs (Wellness Plan Project)/(NBD
Bank, Michigan LOC) 1,200,000
5,995,000 Michigan Strategic Fund, PA-334 (Collateralized Series
1998AA) Weekly VRDNs (Detroit Edison Co.)/(MBIA
INS)/(Merrill Lynch Capital Services, Inc. LIQ) 5,995,000
2,500,000 Michigan Strategic Fund, PT-244 Weekly VRDNs (Detroit Edison
Co.)/(FGIC INS)/(Banque Nationale de Paris LIQ) 2,500,000
2,000,000 Michigan Strategic Fund, Variable Rate Demand Limited
Obligation Revenue Bonds (Series 1997B) Weekly VRDNs (NSF
International)/(National City Bank, Michigan/Illinois LOC) 2,000,000
2,205,000 Oakland County, MI EDC, (Series 1998) Weekly VRDNs (Fox
Manor, Inc.)/(Allied Irish Banks PLC LOC) 2,205,000
7,285,000 Oakland County, MI EDC, (Series 1998) Weekly VRDNs (Lourdes
Assisted Living, Inc.)/(Allied Irish Banks PLC LOC) 7,285,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
MICHIGAN-CONTINUED
$ 2,695,000 Ottawa County, MI Economic Development Corp., Limited
Obligation Revenue Bonds (Series 1995B) Weekly VRDNs (Sunset
Manor, Inc. Project)/(Old Kent Bank & Trust Co., Grand
Rapids LOC) $ 2,695,000
9,000,000 Wayne Westland Community Schools, MI, Floater Certificates
Series 1998-67 Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean
Witter Municipal Funding, Inc. LIQ) 9,000,000
TOTAL 155,075,957
MINNESOTA-2.8%
10,000,000 Becker, MN, PCR (Series 1993-B), 3.05% CP (Northern States
Power Co.), Mandatory Tender 3/11/1999 10,000,000
3,300,000 DDSB Municipal Securities Trusts, Series 1994O Weekly VRDNs
(Richfield, MN ISD 280)/(U.S. Bank, N.A., Minneapolis LIQ) 3,300,000
6,390,000 DDSB Municipal Securities Trusts, Series 1994T Weekly VRDNs
(Osseo, MN ISD 279)/(U.S. Bank, N.A., Minneapolis LIQ) 6,390,000
11,000,000 DDSB Municipal Securities Trusts, Series 1994V Weekly VRDNs
(St. Louis Park Healthsystem, MN)/(Norwest Bank Minnesota,
N.A. LIQ) 11,000,000
7,000,000 East Grand Forks, MN ISD 595, 3.90% Bonds (Minnesota State
GTD), 6/30/1999 7,004,111
4,250,000 MN Municipal Securities Trust, Series 1996F, Floating Rate
Certificates Weekly VRDNs (Lakeville, MN ISD 194)/(Minnesota
State GTD)/(Norwest Bank Minnesota, N.A. LIQ) 4,250,000
11,735,000 Minneapolis CDA, Revenue Refunding Bonds (Series 1995)
Weekly VRDNs (Walker Methodist Health Center, Inc.
Project)/(U.S. Bank, N.A., Minneapolis LOC) 11,735,000
5,500,000 Minneapolis, MN, (Series 1993) Weekly VRDNs (Market Square
Real Estate, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 5,500,000
2,500,000 Minneapolis, MN, Housing Development Revenue Refunding Bonds
(Series 1988) Weekly VRDNs (Symphony Place)/(Citibank N.A.,
New York LOC) 2,500,000
6,000,000 Minneapolis, MN, Variable Rate Housing Revenue Bonds Weekly
VRDNs (One Ten Grant Project)/(U.S. Bank, N.A., Minneapolis
LOC) 6,000,000
1,000,000 Norman County, MN ISD No. 2854, 4.00% Bonds (Minnesota State
GTD), 7/1/1999 1,000,820
15,000,000 Oak Park Heights, MN, Elderly Housing Revenue Bonds (Series
1998B), 4.2625% TOBs (Bayerische Landesbank Girozentrale),
Mandatory Tender 12/1/1999 15,000,000
10,000,000 Rochester, MN Health Care Facility Authority Weekly VRDNs
(Mayo Foundation)/(Rabobank Nederland, Utrecht LIQ) 10,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
MINNESOTA-CONTINUED
$ 4,000,000 Rochester, MN Health Care Facility Authority Weekly VRDNs
(Mayo Foundation)/(Rabobank Nederland, Utrecht LIQ) $ 4,000,000
6,000,000 Rosemount, MN, PCR (Series 1984) Weekly VRDNs (Koch Refining
Co.)/(Koch Industries, Inc. GTD) 6,000,000
100,000 St. Paul, MN Port Authority, (Series 1991) Weekly VRDNs
(West Gate Office)/(U.S. Bank, N.A., Minneapolis LOC) 100,000
TOTAL 103,779,931
MISSISSIPPI-0.1%
1,425,000 Hinds County, MS, (Series 1991) Weekly VRDNs (North State
St. Project)/(Amsouth Bank N.A., Birmingham LOC) 1,425,000
2,465,000 Mississippi State, Series E, 5.00% Bonds, 9/1/1999 2,490,810
TOTAL 3,915,810
MISSOURI-0.6%
17,000,000 Missouri State HEFA, (Series K), 4.25% TRANs (St. Louis, MO
School District), 9/13/1999 17,060,147
4,200,000 Poplar Bluff, MO IDA, (Series 1987) Weekly VRDNs (Gates
Rubber Co.)/(NBD Bank, Michigan LOC) 4,200,000
455,000 Springfield, MO Public Building Corp., Leasehold Revenue
Refunding and Improvement Bonds (Series 1998), 3.70% Bonds
(Springfield-Branson Regional Airport)/(AMBAC INS), 3/1/1999 455,000
TOTAL 21,715,147
MULTI STATE-2.3%
11,858,161 ABN AMRO Chicago Corp. 1997-1 LeaseTOPS Trust Weekly VRDNs
(Lasalle National Bank, Chicago LIQ)/(Lasalle National Bank,
Chicago LOC) 11,858,161
34,864,000 Clipper Tax-Exempt Trust (Non-AMT Multistate), (Series A)
Weekly VRDNs (MBIA INS)/(State Street Bank and Trust Co.
LIQ) 34,864,000
19,081,010 Equity Trust II, (1996 Series) Weekly VRDNs (Republic
National Bank of New York LOC) 19,081,010
19,246,530 PBCC LeaseTOPS Trust (Multistate Non-AMT) Series 1998-2
Weekly VRDNs (AMBAC INS)/(Pitney Bowes Credit Corp. LIQ) 19,246,530
TOTAL 85,049,701
NEVADA-0.2%
7,500,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
Series 1998-1 Weekly VRDNs (Nevada State)/(MBIA INS)/(ABN
AMRO Bank N.V., Amsterdam LIQ) 7,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
NEW JERSEY-2.8%
$ 764,500 Clark Township, NJ, 3.95% BANs, 3/25/1999 $ 764,710
2,000,000 Clark Township, NJ, 3.95% TANs, 3/25/1999 2,000,549
8,000,000 Essex County, NJ Improvement Authority, Project Revenue
Bonds (Series 1995) Weekly VRDNs (Essex County, NJ)/(AMBAC
INS)/(Morgan Guaranty Trust Co., New York LIQ) 8,000,000
9,800,000 New Jersey EDA Weekly VRDNs (Center-For-Aging-Applewood
Estates)/(Fleet National Bank, Springfield, MA LOC) 9,800,000
23,230,000 New Jersey State Transportation Trust Fund Agency, Floater
Certificates (Series 1998-54) Weekly VRDNs (FSA INS)/
(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 23,230,000
13,675,000 New Jersey State, (Series 1998) FR/RI-A34 Trust Receipts
Weekly VRDNs (National Westminster Bank, PLC, London LIQ) 13,675,000
12,295,000 New Jersey State, (Series D) PA-262 Weekly VRDNs (Merrill
Lynch Capital Services, Inc. LIQ) 12,295,000
13,000,000 New Jersey State, PA-265 Weekly VRDNs (Merrill Lynch Capital
Services, Inc. LIQ) 13,000,000
15,300,000 New Jersey State, Trust Receipts (Series 1998 FR/RI-A8)
Weekly VRDNs (Bayerische Hypotheken-und Vereinsbank AG LIQ) 15,300,000
3,500,000 Springfield Township, NJ, 3.80% BANs, 3/5/1999 3,500,443
TOTAL 101,565,702
NEW YORK-8.5%
5,560,000 Albion, NY Central School District, 3.80% BANs, 6/24/1999 5,563,149
7,000,000 Buffalo, NY, 3.75% RANs (Landesbank Hessen-Thueringen,
Frankfurt LOC), 7/27/1999 7,024,953
10,000,000 Long Island Power Authority, (PA-420) Weekly VRDNs (MBIA
INS)/(Merrill Lynch Capital Services, Inc. LIQ) 10,000,000
1,430,000 Metropolitan Transportation Authority, New York, Trust
Receipts (Series 1997 FR/RI-9) Weekly VRDNs (FGIC INS)/(Bank
of New York, New York LIQ) 1,430,000
13,674,000 New York City Municipal Water Finance Authority, Floater
Certificates (Series 1998-5) Weekly VRDNs (Morgan Stanley,
Dean Witter Municipal Funding, Inc. LIQ)/(United States
Treasury PRF) 13,674,000
53,290,000 New York City Municipal Water Finance Authority, Trust
Receipts (Series 1997 FR/RI-6) Weekly VRDNs (MBIA INS)/(Bank
of New York, New York LIQ) 53,290,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
NEW YORK-CONTINUED
$ 7,000,000 New York City Municipal Water Finance Authority, Trust
Receipts, Series 1998 FR/RI-10 Weekly VRDNs (FSA INS)/(Bank
of New York, New York LIQ) $ 7,000,000
16,960,000 New York City Municipal Water Finance Authority, Trust
Receipts, Series 1998 FR/RI-11 Weekly VRDNs (FSA INS)/(Bank
of New York, New York LIQ) 16,960,000
15,000,000 New York City, NY Health and Hospitals Corp., Health System
Bonds, (Series 1997A) Weekly VRDNs (Morgan Guaranty Trust Co.,
New York LOC) 15,000,000
10,000,000 New York City, NY Transitional Finance Authority, PT-1047
Weekly VRDNs (Bank of America NT and SA, San Francisco LIQ) 10,000,000
54,000,000 2 New York City, NY, Trust Receipts (Series 1998 FR/RI A-79),
2.90% TOBs (National Westminster Bank, PLC, London LIQ),
Optional Tender 3/12/1999 54,000,000
11,780,000 2 New York State Dormitory Authority, PT-192, 3.75% TOBs
(Cornell University)/(Banco Santander SA LIQ), Optional
Tender 5/13/1999 11,780,000
7,310,000 New York State Energy Research & Development Authority,
Trust Receipts, Series 1998 FR/RI-9 Weekly VRDNs (Brooklyn
Union Gas Co.)/(MBIA INS)/(Bank of New York, New York LIQ) 7,310,000
9,000,000 New York State Local Government Assistance Corp., (Series E)
Weekly VRDNs (Canadian Imperial Bank of Commerce LOC) 9,000,000
7,200,000 New York State Medical Care Facilities Finance Agency,
(Series 1992 B PT-100) Daily VRDNs (FHA INS)/(Credit Suisse
First Boston LIQ) 7,200,000
4,995,000 2 New York State Mortgage Agency, PT-164, 3.675% TOBs (Banque
Nationale de Paris LIQ), Optional Tender 3/18/1999 4,995,000
30,000,000 Rochester, NY, 3.10% BANs, 10/28/1999 30,042,789
5,000,000 Triborough Bridge & Tunnel Authority, NY, Trust Receipts
(Series 1998 FR/RI-A1) Weekly VRDNs (Bayerische Hypotheken-
und Vereinsbank AG LIQ) 5,000,000
16,100,000 VRDC/IVRC Trust, (Series 1992A) Weekly VRDNs (New York City
Municipal Water Finance Authority)/(MBIA INS)/(Hong Kong &
Shanghai Banking Corp. LIQ) 16,100,000
5,000,000 VRDC/IVRC Trust, (Series 1993B) Weekly VRDNs (Metropolitan
Transportation Authority, New York)/(AMBAC INS)/(Hong Kong &
Shanghai Banking Corp. LIQ) 5,000,000
20,100,000 VRDC/IVRC Trust, (Series 1993G) Weekly VRDNs (St. Lukes
Roosevelt Hospital Center)/(FHA INS)/(Hong Kong & Shanghai
Banking Corp. LIQ) 20,100,000
TOTAL 310,469,891
NORTH CAROLINA-1.2%
9,000,000 Clipper, NC Tax-Exempt Trust Weekly VRDNs (North Carolina
State)/(State Street Bank and Trust Co. LIQ) 9,000,000
15,000,000 Martin County, NC IFA, (Series 1993) Weekly VRDNs
(Weyerhaeuser Co.) 15,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
NORTH CAROLINA-CONTINUED
$ 1,000,000 North Carolina Medical Care Commission, Revenue Bonds
(Series 1993) Weekly VRDNs (Moses H. Cone Memorial) $ 1,000,000
18,345,000 North Carolina State, (Series 1998A) PA-342 Weekly VRDNs
(Merrill Lynch Capital Services, Inc. LIQ) 18,345,000
TOTAL 43,345,000
OHIO-7.0%
8,338,000 ABN AMRO MuniTOPS Certificates Trust (Ohio Non-AMT) Series
1998-18, (Series 1998-18) Weekly VRDNs (Cleveland, OH
Waterworks)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 8,338,000
2,425,000 Ashland County, OH Health Care Weekly VRDNs (Brethren Care,
Inc.)/(National City Bank, Ohio LOC) 2,425,000
28,560,000 Banc One Capital Higher Education Tax-Exempt Income Trust,
(Series 2 Certificates of Ownership) Weekly VRDNs (Bank One,
Kentucky LOC) 28,560,000
7,790,000 Clark County, OH, (Series 1998 Health Facilities) Weekly
VRDNs (Ohio Masonic Home)/(Allied Irish Banks PLC LOC) 7,790,000
2,740,000 Clark County, OH, (Series 1998) Weekly VRDNs (Ohio Masonic
Home)/(Allied Irish Banks PLC LOC) 2,740,000
5,750,000 Clark County, OH, Multifamily Housing Revenue Bonds (Series
1997) Weekly VRDNs (Ohio Masonic Home)/(Huntington National
Bank, Columbus, OH LOC) 5,750,000
5,000,000 Cuyahoga County, OH Hospital Authority, (Series 1998B)
Weekly VRDNs (Cleveland Clinic)/(Chase Manhattan Bank N.A.,
New York LIQ) 5,000,000
2,000,000 Cuyahoga County, OH Hospital Authority, (Series C) Weekly
VRDNs (Cleveland Clinic)/(Bank of America NT and SA, San
Francisco LIQ) 2,000,000
8,500,000 Dublin, OH, Industrial Development Refunding Revenue Bonds
(Series 1997) Weekly VRDNs (Witco Corp.)/(Fleet National
Bank, Springfield, MA LOC) 8,500,000
7,185,000 Franklin County, OH Hospital Facility Authority, (Series
1992) Weekly VRDNs (Wesley Glenn, Inc.)/(Fifth Third Bank,
Cincinnati LOC) 7,185,000
10,000,000 Franklin County, OH Hospital Facility Authority, (Series
1998B) Weekly VRDNs (Doctors OhioHealth Corp.)/(National
City Bank, Ohio LOC) 10,000,000
1,350,000 Franklin County, OH, Health Care Facilities Revenue Bonds
(Series 1994) Weekly VRDNs (Wesley Glenn, Inc.)/(Fifth Third
Bank of Northwestern OH LOC) 1,350,000
8,910,000 Greene County, OH, Various Purpose Limited Tax General
Obligation Certificates of Indebtedness (Series 1998 C),
3.75% BANs, 3/25/1999 8,911,833
1,500,000 Hamilton County, OH Health System Weekly VRDNs (West Park
Community)/(Fifth Third Bank, Cincinnati LOC) 1,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
OHIO-CONTINUED
$ 12,000,000 Hamilton County, OH Hospital Facilities Authority, (Series
1997A) Weekly VRDNs (Health Alliance of Greater Cincinnati)/
(MBIA INS)/(Credit Suisse First Boston LIQ) $ 12,000,000
7,500,000 Henry County, OH, Series 1996 Automatic Feed Project Weekly
VRDNs (Huntington National Bank, Columbus, OH LOC) 7,500,000
215,000 Lucas County, OH, Hospital Improvement Revenue Weekly VRDNs
(Sunshine Children's Home)/(National City Bank, Ohio LOC) 215,000
6,410,000 Mahoning County, OH, Housing Revenue Bonds (Series 1995)
Weekly VRDNs (Copeland Oaks Project)/(Bank One, Ohio, N.A.
LOC) 6,410,000
505,000 Marion County, OH Hospital Authority, (Series 1991) Weekly
VRDNs (Marion County, OH Pooled Hospital Program)/(Bank One,
Ohio, N.A. LOC) 505,000
7,400,000 Medina County, OH, (Series 1997) Weekly VRDNs (Plaza 71
Associates Ltd.)/(Westdeutsche Landesbank Girozentrale LOC) 7,400,000
3,280,000 Mentor, OH, Adjustable Rate IDRB's (Series 1997) Weekly
VRDNs (Risch Investments/Roll Kraft, Inc.)/(Bank One, Ohio,
N.A. LOC) 3,280,000
9,700,000 Montgomery County, OH Health Facilities Authority, (Series
1998B), 2.85% CP (Miami (OH) Valley Hospital), Mandatory
Tender 2/9/1999 9,700,000
11,000,000 Montgomery County, OH Health Facilities Authority, (Series
1998B), 3.20% CP (Miami (OH) Valley Hospital), Mandatory
Tender 2/9/1999 11,000,000
650,000 Montgomery County, OH IDA Weekly VRDNs (Center-Plex
Venture)/(KeyBank, N.A. LOC) 650,000
4,615,000 Montgomery County, OH, Variable Rate Limited Obligation
Revenue Bonds (Series 1996) Weekly VRDNs (Society of St.
Vincent De Paul)/(National City Bank, Ohio LOC) 4,615,000
3,455,000 Montgomery, OH IDA Weekly VRDNs (Bethesda Two Limited
Partnership)/(Huntington National Bank, Columbus, OH LOC) 3,455,000
8,380,000 New Albany, OH Community Authority, Adjustable Rate Multi-
Purpose Infrastructure Improvement Bonds, (Series A) Weekly
VRDNs (Huntington National Bank, Columbus, OH LOC) 8,380,000
1,000,000 Ohio State Air Quality Development Authority Weekly VRDNs
(Timken Co.)/(Credit Suisse First Boston LOC) 1,000,000
3,800,000 Ohio State Air Quality Development Authority, (Series 1988A)
Weekly VRDNs (PPG Industries, Inc.) 3,800,000
10,000,000 Ohio State Water Development Authority, PCR Refunding Bonds
Weekly VRDNs (General Motors Corp.) 10,000,000
10,000,000 Ohio State Water Development Authority, Pollution Control
Revenue Refunding Bonds (Series 1997) Weekly VRDNs (Philip
Morris Cos., Inc.) 10,000,000
1,500,000 Ohio State, Adjustable Rate Weekly VRDNs (General Motors
Corp.) 1,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
OHIO-CONTINUED
$ 4,840,000 Ohio Water Development Authority, PA-201 Weekly VRDNs (AMBAC
INS)/(Merrill Lynch Capital Services, Inc. LIQ) $ 4,840,000
16,500,000 Ottawa County, OH, 4.00% BANs, 8/6/1999 16,525,897
6,400,000 Rickenbacker, OH Port Authority, (Series 1992) Weekly VRDNs
(Rickenbacker Holdings, Inc.)/(Bank One, Ohio, N.A. LOC) 6,400,000
4,175,000 Ross County, OH, Hospital Facilities Revenue Bonds (Series
1995) Weekly VRDNs (Medical Center Hospital Project)/(Fifth
Third Bank, Cincinnati LOC) 4,175,000
5,200,000 Scioto County, OH Hospital Authority Weekly VRDNs (AMBAC
INS)/(First National Bank of Chicago LIQ) 5,200,000
8,295,000 Summit County, OH, (Series A), 4.50% BANs, 6/3/1999 8,315,018
3,200,000 Toledo, OH, Adjustable Rate City Services Special Assessment
Notes (Services 1997) Weekly VRDNs (Canadian Imperial Bank
of Commerce LOC) 3,200,000
900,000 Twinsburg, OH IDA Weekly VRDNs (Carl J Massara
Project)/(KeyBank, N.A. LOC) 900,000
4,500,000 University of Cincinnati, OH, (Series AK), 3.26% BANs,
12/21/1999 4,508,865
3,000,000 Walnut Hills, OH High School Alumni Foundation, (Series
1998) Weekly VRDNs (Fifth Third Bank, Cincinnati LOC) 3,000,000
TOTAL 258,524,613
OKLAHOMA-2.6%
17,000,000 Oklahoma State Industrial Authority, Flexible Rate Hospital
Revenue Bonds (Series 1990B) Weekly VRDNs (Baptist Medical
Center, OK)/(Morgan Guaranty Trust Co., New York LIQ) 17,000,000
61,000,000 Oklahoma State Industrial Authority, Health System Revenue
Bonds (Series 1995A) Weekly VRDNs (Baptist Medical Center,
OK)/(Morgan Guaranty Trust Co., New York LIQ) 61,000,000
18,640,000 Tulsa, OK International Airport, Variable Rate Certificates
(Series 1997B-2) Weekly VRDNs (MBIA INS)/(Bank of America NT
and SA, San Francisco LIQ) 18,640,000
TOTAL 96,640,000
OREGON-0.6%
10,910,000 Clackamas County, OR HFA, (Series 1984), 4.00% TOBs (Kaiser
Permanente), Optional Tender 4/1/1999 10,910,000
10,000,000 Multnomah County, OR School District, (Series 1998), 4.25%
TRANs, 6/30/1999 10,023,619
TOTAL 20,933,619
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
PENNSYLVANIA-10.9%
$ 20,525,000 2 ABN AMRO MuniTOPS Certificates Trust (Pennsylvania Non-AMT)
Series 1998-28, 3.17% TOBs (Temple University)/(MBIA
INS)/(ABN AMRO Bank N.V., Amsterdam LIQ), Optional Tender
8/4/1999 $ 20,525,000
5,000,000 Allegheny County, PA IDA, Variable Rate Demand Revenue Bonds
(Series 1997-B) Weekly VRDNs (Jewish Community Center)/
(National City, Pennsylvania LOC) 5,000,000
4,250,000 Beaver County, PA IDA, PCR Refunding Bonds (1992 Series-E),
3.05% CP (Toledo Edison Co.)/(Toronto-Dominion Bank LOC),
Mandatory Tender 5/19/1999 4,250,000
5,000,000 Clinton County, PA, IDA Weekly VRDNs (Armstrong World
Industries, Inc.)/(Mellon Bank N.A., Pittsburgh LOC) 5,000,000
50,410,000 Commonwealth of Pennsylvania, Floater Certificate 1998-53
Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter
Municipal Funding, Inc. LIQ) 50,410,000
7,650,000 Commonwealth of Pennsylvania, PA-274 (1st Series of 1997)
Weekly VRDNs (AMBAC INS)/(Merrill Lynch Capital Services,
Inc. LIQ) 7,650,000
5,975,000 Commonwealth of Pennsylvania, Trust Receipts (Series 1998
FR/RI-A9) Weekly VRDNs (MBIA INS)/(Bayerische Hypotheken-und
Vereinsbank AG LIQ) 5,975,000
5,000,000 Cumberland County, PA Municipal Authority, (Series 1994),
3.75% TOBs (United Methodist Homes for the Aging)/(PNC Bank,
N.A. LOC), Optional Tender 6/1/1999 5,000,000
4,000,000 Dallastown Area School District, PA, G.O. Bonds (Series
1998) Weekly VRDNs (FGIC INS)/(FGIC Securities Purchase,
Inc. LIQ) 4,000,000
34,595,000 Dauphin County, PA General Authority, (Education and Health
Loan Program, Series 1997) Weekly VRDNs (AMBAC INS)/(Chase
Manhattan Bank N.A., New York LIQ) 34,595,000
24,000,000 Dauphin County, PA General Authority, (Series A of 1997)
Weekly VRDNs (Allhealth Pooled Financing Program)/(FSA
INS)/(Credit Suisse First Boston LIQ) 24,000,000
3,900,000 Delaware County Authority, PA, Hospital Revenue Bonds
(Series of 1996) Weekly VRDNs (Crozer-Chester Medical
Center)/(KBC Bank N.V., Brussels LOC) 3,900,000
18,500,000 Doylestown Hospital Authority, PA, Doylestown Hospital
Revenue Bonds Weekly VRDNs (AMBAC INS)/(PNC Bank, N.A. LIQ) 18,500,000
3,900,000 East Hempfield Township, PA IDA, (Series 1985) Weekly VRDNs
(Yellow Freight System)/(Wachovia Bank of NC, N.A., Winston-
Salem LOC) 3,900,000
3,500,000 East Hempfield Township, PA IDA, (Series of 1997) Weekly
VRDNs (Mennonite Home)/(Dauphin Deposit Bank and Trust LOC) 3,500,000
8,460,000 Easton Area School District, PA, (Series 1997) Weekly VRDNs
(FGIC INS)/(FGIC Securities Purchase, Inc. LIQ) 8,460,000
7,000,000 Erie County, PA Hospital Authority Weekly VRDNs (St. Vincent
Health System)/(Mellon Bank N.A., Pittsburgh LOC) 7,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
PENNSYLVANIA-CONTINUED
$ 22,940,000 Lancaster County, PA Hospital Authority, Health Center
Revenue Bonds (Series 1996) Weekly VRDNs (Masonic Homes) $ 22,940,000
6,540,000 Montgomery County, PA IDA, Commercial Development Revenue
Bonds (Series 1992) Weekly VRDNs (Hickory Pointe Project)/
(First Union National Bank, Charlotte, NC LOC) 6,540,000
4,800,000 North Lebanon Township, PA, Municipal Authority Mortgage
Bonds Weekly VRDNs (Grace Community, Inc.)/(First Union
National Bank, Charlotte, N.C. LOC) 4,800,000
6,000,000 North Penn Health, Hospital and Education Authority, PA,
Hospital Revenue Bonds (Series 1998) Weekly VRDNs (North
Penn Hospital, PA)/(First Union National Bank, Charlotte, NC
LOC) 6,000,000
2,500,000 Northampton County, PA Higher Education Authority, PA-176
Weekly VRDNs (MBIA INS)/(Merrill Lynch Capital Services,
Inc. LIQ) 2,500,000
16,745,000 Pennsylvania Housing Finance Authority, PT-119A (Series
1997-56C) Weekly VRDNs (Credit Suisse First Boston LIQ) 16,745,000
4,995,000 Pennsylvania State Turnpike Commission, PA-404 Weekly VRDNs
(AMBAC INS)/(Merrill Lynch Capital Services, Inc. LIQ) 4,995,000
6,000,000 Pennsylvania State University, PT-242 Weekly VRDNs
(Bayerische Hypotheken-und Vereinsbank AG LIQ) 6,000,000
20,000,000 Philadelphia, PA Gas Works, (Series C), 3.05% CP (Canadian
Imperial Bank of Commerce LOC), Mandatory Tender 2/17/1999 20,000,000
8,135,000 Philadelphia, PA Gas Works, PT-1045 Weekly VRDNs (FSA
INS)/(Bank of America NT and SA, San Francisco LIQ) 8,135,000
6,870,000 Philadelphia, PA IDA, (Series 93) Weekly VRDNs (Sackett
Development)/(Mellon Bank N.A., Pittsburgh LOC) 6,870,000
3,250,000 Philadelphia, PA IDA, Variable Rate Revenue Bonds (Series
1998) Weekly VRDNs (Philadelphia Academy of Music)/(First
1999) Union National Bank, Charlotte, NC LOC) 3,250,000
2,000,000 Philadelphia, PA Redevelopment Authority, Multi-Family
Revenue Bonds (Series 1985) Weekly VRDNs (Franklin Town
Towers)/(Marine Midland Bank N.A., Buffalo, NY LOC) 2,000,000
22,000,000 Philadelphia, PA School District, (Series B), 4.25% TRANs
(PNC Bank, N.A. LOC), 6/30/1999 22,053,730
23,475,000 Philadelphia, PA Water & Wastewater System, (Series 1997A)
PT-1033 Weekly VRDNs (AMBAC INS)/(Merrill Lynch Capital
Services, Inc. LIQ) 23,475,000
18,000,000 Philadelphia, PA, 4.25% TRANs, 6/30/1999 18,043,546
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
PENNSYLVANIA-CONTINUED
$ 4,540,000 Pittsburgh, PA, (Series 1997C) PT-1108 Weekly VRDNs (AMBAC
INS)/(Merrill Lynch Capital Services, Inc. LIQ) $ 4,540,000
6,205,000 Pittsburgh, PA, SG-71 Weekly VRDNs (FGIC INS)/(Societe
Generale, Paris LIQ) 6,205,000
4,025,000 Washington County, PA Authority Weekly VRDNs (Eye & Ear
Hospital)/(PNC Bank, N.A. LOC) 4,025,000
TOTAL 400,782,276
PUERTO RICO-0.1%
2,760,000 Commonwealth of Puerto Rico, Floater Certificates (Series
1998-87) Weekly VRDNs (MBIA INS)/(Morgan Stanley, Dean
Witter Municipal Funding, Inc. LIQ) 2,760,000
SOUTH CAROLINA-0.4%
2,000,000 Dorchester County, SC School District No. 002, 3.75% TANs,
3/15/1999 2,000,916
8,000,000 Oconee County, SC School District, 4.00% TANs, 2/16/1999 8,001,606
3,250,000 Piedmont Municipal Power Agency, SC, (Series 1998 A-71)
Daily VRDNs (MBIA INS)/(Bank of New York, New York LIQ) 3,250,000
TOTAL 13,252,522
TENNESSEE-1.8%
25,000,000 Chattanooga, TN HEFA Weekly VRDNs (Mccallie
School)/(SunTrust Bank, Atlanta LOC) 25,000,000
2,000,000 Chattanooga, TN HEFA Weekly VRDNs (Sisken
Hospital)/(Nationsbank, N.A., Charlotte LOC) 2,000,000
7,100,000 Chattanooga, TN HEFA Weekly VRDNs (Sisken
Hospital)/(Nationsbank, N.A., Charlotte LOC) 7,100,000
2,000,000 Chattanooga, TN IDB, (Series 1997) Weekly VRDNs (YMCA
Projects)/(SunTrust Bank, Nashville LOC) 2,000,000
3,100,000 Maury County, TN HEFA, (Series 1996E) Weekly VRDNs (Southern
Healthcare Systems, Inc.)/(Bank One, Texas N.A. LOC) 3,100,000
3,775,000 Memphis, TN Center City Revenue Finance Corp., (Series
1996A) Weekly VRDNs (South Bluffs)/(National Bank of
Commerce, Memphis, TN LOC) 3,775,000
2,700,000 Memphis, TN, General Improvement Refunding Bonds, (Series
1995A) Weekly VRDNs (Westdeutsche Landesbank Girozentrale
LOC) 2,700,000
1,700,000 Metropolitan Government Nashville & Davidson County, TN
HEFA, (Series 1996) Weekly VRDNs (Dede Wallace Center
Project)/(SunTrust Bank, Nashville LOC) 1,700,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
TENNESSEE-CONTINUED
$ 4,000,000 Metropolitan Government Nashville & Davidson County, TN
HEFA, Educational Facilities Revenue Bonds (Series 1997)
Weekly VRDNs (Belmont University Project)/(SunTrust Bank,
Nashville LOC) $ 4,000,000
3,000,000 Metropolitan Government Nashville & Davidson County, TN
HEFA, Revenue Bonds (Series 1985A), 3.10% TOBs (Vanderbilt
University), Optional Tender 1/15/2000 3,000,000
3,000,000 Metropolitan Government Nashville & Davidson County, TN
HEFA, Revenue Bonds (Series 1985A), 3.10% TOBs (Vanderbilt
University), Optional Tender 1/15/2000 3,000,000
3,000,000 Metropolitan Government Nashville & Davidson County, TN IDB,
Variable Rate Demand Multifamily Housing Revenue Refunding
Bonds (Series 1995) Weekly VRDNs (Hickory Trace
Apartments)/(National City Bank, Kentucky LOC) 3,000,000
1,000,000 Montgomery Co, TN Public Building Authority, Pooled
Financing Revenue Bonds (Series 1996) Weekly VRDNs
(Montgomery County Loan)/(Nationsbank, N.A., Charlotte LOC) 1,000,000
2,500,000 Sevier County, TN Public Building Authority, Local
Government Public Improvement Bonds, (Series II-G-3) Weekly
VRDNs (Maryville, TN)/(AMBAC INS)/(KBC Bank N.V., Brussels
LIQ) 2,500,000
1,825,000 Washington County, TN IDB, Revenue Refunding Bonds (Series
1996) Weekly VRDNs (Springbrook Properties
Project)/(SunTrust Bank, Nashville LOC) 1,825,000
TOTAL 65,700,000
TEXAS-4.4%
15,000,000 2 ABN AMRO MuniTOPS Certificates Trust (Multi-State Non-AMT)
Series 1998-26, 3.35% TOBs (Grapevine-Colleyville, TX
ISD)/(Texas Permanent School Fund Guarantee Program
GTD)/(ABN AMRO Bank N.V., Amsterdam LIQ), Optional Tender
11/17/1999 15,000,000
12,996,000 2 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
Series 1998-19, 3.10% TOBs (Dallas, TX Waterworks & Sewer
System)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ),
Optional Tender 6/9/1999 12,996,000
8,950,000 Aldine, TX Independent School District, (Series 1997) SGB-29
Weekly VRDNs (Texas Permanent School Fund Guarantee Program
GTD)/(Societe Generale, Paris LIQ) 8,950,000
11,000,000 Board of Regents of The University of Texas, (Series A),
2.85% CP, Mandatory Tender 4/7/1999 11,000,000
3,330,000 Dallas, TX, (Series C), 3.70% TOBs, Optional Tender
6/15/1999 3,330,000
400,000 Grapevine, TX, IDC, SimuFlite Training International Project
(Series 1993) Weekly VRDNs (Southern Air Transport,
Inc.)/(Bank of Montreal LOC) 400,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
TEXAS-CONTINUED
$ 4,400,000 Harris County, TX HFDC, (Series 1994) Daily VRDNs (Methodist
Hospital, Harris County, TX) $ 4,400,000
7,450,000 Harris County, TX HFDC, (Series 1997A) Daily VRDNs (St.
Luke's Episcopal Hospital)/(Morgan Guaranty Trust Co., New
York, Nationsbank, N.A., Charlotte and Toronto-Dominion Bank
LIQs) 7,450,000
7,900,000 Harris County, TX HFDC, Trust Receipts (Series 1997) Weekly
VRDNs (Hermann Hospital)/(MBIA INS)/(Bank of New York, New
York LIQ) 7,900,000
6,000,000 Harris County, TX HFDC, Unit Priced Demand Adjustable
Revenue Bonds (Series 1997B) Daily VRDNs (St. Luke's
Episcopal Hospital)/(Morgan Guaranty Trust Co., New York,
Nationsbank, N.A., Charlotte and Toronto-Dominion Bank LIQs) 6,000,000
19,140,000 Hurst-Euless-Bedford, TX Independent School District, PT-
1050 Weekly VRDNs (Texas Permanent School Fund Guarantee
Program GTD)/(Bank of America NT and SA, San Francisco LIQ) 19,140,000
1,620,000 North Richland Hills, TX IDC Weekly VRDNs (Tecnol,
Inc.)/(Nationsbank, N.A., Charlotte LOC) 1,620,000
17,500,000 Plano ISD, TX, Variable Rate Unlimited Tax School Building
Bonds, (Series 1997), 3.65% TOBs (Texas Permanent School
Fund Guarantee Program GTD)/(UBS AG LIQ), Mandatory Tender
3/3/1999 17,500,000
9,890,000 2 San Antonio, TX Electric & Gas, PT-1110,% TOBs (Merrill
Lynch Capital Services, Inc. LIQ), Mandatory Tender
5/13/1999 9,890,000
4,625,000 Texas Pooled Tax Exempt Trust, Certificates of Participation
(Series 1996) Weekly VRDNs (Bank One, Texas N.A. LOC) 4,625,000
32,485,000 Texas State, PT-1081 Weekly VRDNs (AMBAC INS)/(Bank of
America NT and SA, San Francisco LIQ) 32,485,000
TOTAL 162,686,000
UTAH-0.1%
150,000 Emery County, UT, PCR Refunding Bonds (Series 1994) Daily
VRDNs (Pacificorp)/(AMBAC INS)/(Bank of Nova Scotia, Toronto
LIQ) 150,000
5,000,000 2 Intermountain Power Agency, UT, Trust Receipts (Series A63),
3.50% TOBs (MBIA INS)/(Bank of New York, New York LIQ),
Optional Tender 2/1/1999 5,000,000
TOTAL 5,150,000
VERMONT-0.0%
800,000 Vermont Educational and Health Buildings Financing Agency,
(Series 1995A) Weekly VRDNs (KeyBank, N.A. LOC) 800,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
VIRGINIA-1.2%
$ 21,410,000 ABN AMRO MuniTOPS Certificates Trust (Virginia Non-AMT)
Series 1998-21 Weekly VRDNs (Norfolk, VA Water Revenue)/(FSA
INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) $ 21,410,000
1,900,000 Arlington County, VA Weekly VRDNs (Ballston Public
Parking)/(Citibank N.A., New York LOC) 1,900,000
3,500,000 Fairfax County, VA EDA, (Series 1995) Weekly VRDNs (American
Society of Civil Engineers Foundation, Inc. Project)/(Mellon
Bank NA, Pittsburgh LOC) 3,500,000
8,000,000 Fairfax County, VA IDA, 1998 Trust Receipts FR/RI-A35 Weekly
VRDNs (Fairfax Hospital System)/(National Westminster Bank,
PLC, London LIQ)/(United States Treasury PRF) 8,000,000
9,600,000 York County, VA IDA, (Series 1985), 3.15% CP (Virginia
Electric Power Co.), Mandatory Tender 2/11/1999 9,600,000
TOTAL 44,410,000
WASHINGTON-0.2%
4,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
Series 1998-16 Weekly VRDNs (Port of Seattle, WA)/(MBIA
INS)/(ABN AMRO, Inc. LIQ) 4,000,000
2,200,000 Port of Seattle, WA, IDR Bonds (Series 1985) Weekly VRDNs
(Douglas Management Co. Project)/(Mellon Bank N.A.,
Pittsburgh LOC) 2,200,000
TOTAL 6,200,000
WEST VIRGINIA-0.6%
7,870,000 Cabell County Commission, WV, Life Care Facilities Multi-
Option Revenue Bonds (Series 1995) Weekly VRDNs (Foster
Foundation)/(Huntington National Bank, Columbus, OH LOC) 7,870,000
14,500,000 Marshall County, WV, PCR (Series 1992) Weekly VRDNs (PPG
Industries, Inc.) 14,500,000
TOTAL 22,370,000
WISCONSIN-2.1%
10,975,000 Appleton, WI Area School District, 3.15% TRANs, 9/27/1999 10,975,685
4,800,000 Chippewa Falls WI, USD, 3.27% TRANs, 9/30/1999 4,803,068
14,150,000 Eau Claire, WI Area School Disrict, 3.07% TRANs, 9/27/1999 14,158,920
3,800,000 Greenfield, WI School District, 3.50% TRANs, 9/30/1999 3,800,703
3,250,000 Hancock, WI, Industrial Development Revenue Refunding Bonds
(Series 1996) Weekly VRDNs (Ore-Ida Foods, Inc.)/(Heinz
(H.J.) Co. GTD) 3,250,000
2,500,000 Hortonville, WI School District, 3.50% TRANs, 10/21/1999 2,502,602
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS-continued 1
WISCONSIN-CONTINUED
$ 3,500,000 Menomonee Falls, WI School District, 3.27% TRANs, 8/25/1999 $ 3,500,363
4,800,000 Mequon-Thiensville, WI School District, 3.65% TRANs,
9/23/1999 4,805,932
3,000,000 Oregon, WI School District, 3.60% TRANs, 9/14/1999 3,001,066
3,100,000 Pulaskii, WI Community School District, 3.60% TRANs,
8/31/1999 3,100,335
2,045,000 Wisconsin Health and Educational Facilities Authority Weekly
VRDNs (St. Luke's Medical Center)/(First National Bank of
Chicago and Sumitomo Bank Ltd., Osaka LOCs) 2,045,000
21,590,000 Wisconsin Health and Educational Facilities Authority,
MERLOTs (Series 1997 B) Weekly VRDNs (Sinai Samaritan
Medical Center, Inc.)/(MBIA INS)/(First
Union National Bank, Charlotte, NC LIQ) 21,590,000
TOTAL 77,533,674
WYOMING-0.2%
4,470,000 Douglas, WY, IDR Bonds, 3.45% TOBs (Safeway, Inc.)/(Bankers
Trust Co., New York LOC), Mandatory Tender 2/1/1999 4,470,000
1,125,000 Natrona County, WY, Hospital Revenue, 5.0375% TOBs (Grainger
(W.W.), Inc.), Optional Tender 6/1/1999 1,125,000
TOTAL 5,595,000
TOTAL INVESTMENTS (AT AMORTIZED COST) 3 $ 3,636,721,438
</TABLE>
1 The Fund may only invest in securities rated in one of the two highest
short-term rating categories by nationally recognized statistical rating
organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's
two highest rating categories are determined without regard for sub-categories
and gradations. For example, securities rated SP-1+, SP-1, or SP-2 by Standard &
Poor's, MIG-1 or MIG-2 by Moody's Investors Service, Inc., or F-1+, F-1, or F-2
by Fitch IBCA, Inc. are all considered rated in one of the two highest
short-term rating categories. Securities rated in the highest short-term rating
category (and unrated securities of comparable quality) are identified as First
Tier securities. Securities in the second highest short-term rating category
(and unrated securities of comparable quality) are identified as Second Tier
securities. The Fund follows applicable regulations in determining whether a
security is rated and whether a security is rated by multiple NRSROs in
different rating categories should be identified as a First or Second Tier
security. At January 31, 1999, the portfolio securities were rated as follows:
Tier Rating Based on Total Market Value (Unaudited)
FIRST TIER SECOND TIER
100.00% 0.00%
2 Denotes a restricted security which is subject to restrictions on resale under
Federal Securities laws. At January 31, 1999, these securities amounted to
$207,151,000 which represents 5.6% of net assets.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($3,670,275,279) at January 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation AMT -Alternative Minimum
Tax BANs -Bond Anticipation Notes CAPMAC -Capital Municipal Assurance
Corporation CDA -Community Development Administration CP -Commercial Paper EDA
- -Economic Development Authority EDC -Economic Development Commission EDR
- -Economic Development Revenue FGIC -Financial Guaranty Insurance Company FHA
- -Federal Housing Administration FSA -Financial Security Assurance GO -General
Obligation GTD -Guaranty HEFA -Health and Education Facilities Authority HFA
- -Housing Finance Authority HFDC -Health Facility Development Corporation IDA
- -Industrial Development Authority IDB -Industrial Development Bond IDC
- -Industrial Development Corporation IDR -Industrial Development Revenue IDRB
- -Industrial Development Revenue Bond IFA -Industrial Finance Authority INS
- -Insured ISD -Independent School District LIQ -Liquidity Agreement LOC -Letter
of Credit MBIA -Municipal Bond Investors Assurance
MERLOTS -Municipal Exempt Receipts - Liquidity Optional Tender Series PCR
- -Pollution Control Revenue PRF -Prerefunded RAN -Revenue Anticipation Note SA
- -Support Agreement TAN -Tax Anticipation Note TAW -Tax Anticipation Warrant TOB
- -Tender Option Bond TRAN -Tax and Revenue Anticipation Note UT -Unlimited Tax
VRDN -Variable Rate Demand Note
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Total investments in securities, at amortized cost and value $ 3,636,721,438
Cash 16,458,778
Income receivable 28,950,106
Prepaid expenses 110,018
TOTAL ASSETS 3,682,240,340
LIABILITIES:
Payable for investments purchased $ 2,248,098
Payable for shares redeemed 200,000
Income distribution payable 9,180,445
Accrued expenses 336,518
TOTAL LIABILITIES 11,965,061
Net assets for 3,670,246,586 shares outstanding $ 3,670,275,279
NET ASSETS CONSIST OF:
Paid in capital $ 3,670,246,586
Accumulated net investment loss (6,573)
Accumulated net realized gain on investments 35,266
TOTAL NET ASSETS $ 3,670,275,279
NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PROCEEDS PER
SHARE:
INSTITUTIONAL SHARES:
$2,597,241,293 / 2,597,230,858 shares outstanding $1.00
INSTITUTIONAL SERVICE SHARES:
$1,073,033,986 / 1,073,015,728 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 57,614,562
EXPENSES:
Investment advisory fee $ 3,379,512
Administrative personnel and services fee 1,274,076
Custodian fees 23,952
Transfer and dividend disbursing agent fees and expenses 43,452
Directors'/Trustees' fees 9,642
Auditing fees 6,992
Legal fees 17,886
Portfolio accounting fees 136,391
Shareholder services fee-Institutional Shares 2,933,588
Shareholder services fee-Institutional Service Shares 1,290,802
Share registration costs 167,880
Printing and postage 24,764
Insurance premiums 119,158
Miscellaneous 7,726
TOTAL EXPENSES 9,435,821
WAIVERS:
Waiver of investment advisory fee $ (1,757,546)
Waiver of shareholder services fee-Institutional Shares (2,933,588)
TOTAL WAIVERS (4,691,134)
Net expenses 4,744,687
Net investment income 52,869,875
Net realized loss on investments (4,616)
Change in net assets resulting from operations $ 52,865,259
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 52,869,875 $ 87,408,505
Net realized gain (loss) on investments (4,616) 131,365
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS 52,865,259 87,539,870
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
Institutional Shares (37,575,104) (63,605,236)
Institutional Service Shares (15,294,771) (23,803,270)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS (52,869,875) (87,408,506)
SHARE TRANSACTIONS:
Proceeds from sale of shares 9,420,100,498 16,237,569,274
Net asset value of shares issued to shareholders in payment
of distributions declared 5,605,848 12,646,067
Cost of shares redeemed (8,975,712,635) (15,092,223,527)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 449,993,711 1,157,991,814
Change in net assets 449,989,095 1,158,123,178
NET ASSETS:
Beginning of period 3,220,286,184 2,062,163,006
End of period $ 3,670,275,279 $ 3,220,286,184
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.03 0.03 0.03 0.04 0.02
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.03) (0.03) (0.03) (0.04) (0.02)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 1.63% 3.50% 3.49% 3.55% 3.64% 2.45%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.20% 2 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income 3.20% 2 3.45% 3.43% 3.46% 3.62% 2.41%
Expense waiver/reimbursement 3 0.35% 2 0.35% 0.35% 0.36% 0.39% 0.15%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $2,597,241 $2,279,770 $1,474,180 $1,514,979 $1,295,458 $789,755
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994 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 0.03 0.03 0.03 0.03 0.002
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.03) (0.03) (0.03) (0.03) (0.002)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 1.50% 3.25% 3.24% 3.29% 3.39% 0.18%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 0.45% 3 0.45% 0.45% 0.45% 0.45% 0.39% 3
Net investment income 2.96% 3 3.20% 3.19% 3.22% 3.48% 3.04% 3
Expense waiver/reimbursement 4 0.10% 3 0.10% 0.10% 0.11% 0.14% 0.15% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,073,034 $940,516 $587,983 $406,408 $252,016 $25,148
</TABLE>
1 Reflects operations for the period from July 5, 1994 (date of initial public
investment) to July 31, 1994.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of six 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 investment
objective of the Fund is to provide dividend income exempt from federal regular
income tax consistent with stability of principal.
The Fund offers two classes of shares: Institutional Shares and
Institutional Service Shares.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT 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 provisions for federal tax are
necessary.
At July 31, 1998, the Fund, for federal tax purposes, had a capital loss
carryforward of $17,686, which will reduce the Fund's taxable income arising
from future net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of the distributions to shareholders
which would otherwise be necessary to relieve the Fund of any liability for
federal tax. Pursuant to the Code, such capital loss carryforward will expire in
2005.
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 upon exercise of a demand feature. Such restricted
securities may be determined to be liquid under criteria established by the
Board of Trustees ("Trustees"). The Fund will not incur any registration costs
upon such resales. Restricted securities are valued at amortized cost in
accordance with Rule 2a-7 under the Act.
Additional information on each restricted security held at January 31, 1999 is
as follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION DATE ACQUISITION COST
<S> <C> <C>
ABN AMRO MuniTOPS Certificates Trust, Series 1998-19 12/9/1998 $12,996,000
ABN AMRO MuniTOPS Certificates Trust, Series 1998-26 12/31/1998 15,000,000
ABN AMRO MuniTOPS Certificates Trust, Series 1998-28 12/16/1998 20,525,000
Alaska State Housing Finance Corp., PT-202 6/26/1998 7,210,843
Bibb County, GA, PT-199 6/19/1999 8,000,811
Chicago, IL, Variable Rate Certificates, Series 1998-M 8/5/1998 20,000,000
Connecticut State HFA, Variable Rate Certificates, Series
1998-S 9/17/1998 4,000,000
Cook County, IL, Series 1998-A, PT-1111 12/11/1998 9,940,865
Intermountain Power Agency, UT, Trust Receipts, Series A-63 10/1/1998 5,000,486
Maryland State Community Development, Series 1997, PT-123 12/10/1998 23,986,740
New York City, Trust Receipts, Series 1998 FR/RI A-79 1/5/1999 54,261,715
New York State Dormitory Authority, PT-192 6/5/1998 11,781,210
New York State Mortgage Agency, PT-164 3/25/1998 4,995,503
San Antonio, TX Electric & Gas, PT-1110 12/11/1998 9,890,854
</TABLE>
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses, and revenues reported in
the financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. At January 31, 1999, capital paid-in aggregated $3,670,246,586.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 7,396,158,979 12,763,472,990
Shares issued to shareholders in payment of distributions
declared 4,212,217 8,791,413
Shares redeemed (7,082,897,210) (11,966,763,689)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 317,473,986 805,500,714
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES:
Shares sold 2,023,941,519 3,474,096,284
Shares issued to shareholders in payment of distributions
declared 1,393,631 3,854,654
Shares redeemed (1,892,815,425) (3,125,459,838)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 132,519,725 352,491,100
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 449,993,711 1,157,991,814
</TABLE>
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 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.
INTERFUND TRANSACTIONS
During the period ended January 31, 1999, the Fund engaged in purchase and sale
transactions with funds that have a common investment adviser (or affiliated
investment advisers), common Directors/Trustees, and/or common Officers. These
purchase and sale transactions were made at current market value pursuant to
Rule 17a-7 under the Act amounting to $2,579,378,000 and $2,278,030,000,
respectively.
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.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Management, Adviser to the Fund, merged
into Federated Investment Management Company (formerly, Federated
Advisers).
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
WILLIAM J. COPELAND
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
ANTHONY R. BOSCH
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
Tax-Free Obligations Fund
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Tax-Free Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N401
Cusip 60934N880
0022807 (3/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Treasury
Obligations Fund, a portfolio of Money Market Obligations Trust. This report
covers the first half of the fund's fiscal year, which is the six-month period
ended January 31, 1999. It begins with an investment review of the short-term
Treasury market from the fund's portfolio manager. Following the investment
review are the fund's portfolio of investments and financial statements.
In Treasury Obligations Fund, your ready cash is at work pursuing daily
income-along with the additional advantages of daily liquidity and stability of
principal 1-by investing exclusively in short-term U.S. Treasury obligations and
in repurchase agreements collateralized by these obligations. At the end of the
reporting period, the fund's net assets totaled $11.8 billion.
Over the six-month reporting period, dividends paid to shareholders of
Institutional Shares, Institutional Service Shares and Institutional Capital
Shares totaled $0.03, $0.02, and $0.02 per share, respectively. On the last day
of the reporting period, the 30-day net yields for Institutional Shares,
Institutional Service Shares, and Institutional Capital Shares were 4.65%,
4.40%, and 4.55%, respectively, while the 7-day net yields were 4.70%, 4.45%,
and 4.60%, respectively. 2
Thank you for your confidence in the daily earning power of Treasury Obligations
Fund. As always, your questions and comments are welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
March 15, 1999
1 An investment in the fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the fund.
2 Performance quoted represents past performance and is not indicative of future
results. Yield will vary. Yields quoted for money market funds most closely
reflect the fund's current earnings.
Investment Review
Treasury Obligations Fund, which is rated AAAm 1 by Standard & Poor's ("S&P")
and Aaa1 by Moody's Investors Service, Inc. ("Moody's") is invested in direct
obligations of the U.S. Treasury either in the form of notes and bills or as
collateral for repurchase agreements.
There were two central themes in the short-term government markets over the
reporting period ended January 31, 1999. First, the economy continued to advance
at a robust pace of growth, with gross domestic product expanding in the third
and fourth quarters of 1998 at 3.70% and 6.10%, respectively, and all
indications that this same strength had spilled over into 1999. Although the
manufacturing sector was soft, the housing and retail sectors continued to
propel the economy forward. While this pace of growth is in excess of what has
traditionally been viewed to be the non-inflationary potential of the economy,
inflation nevertheless remained benign, perhaps reflecting advances in
productivity that have enabled growth to be achieved without upward pressure on
prices. Under normal circumstances, however, the growth trajectory of the
economy would have been sufficient to make Federal Reserve Board ("Fed")
officials concerned about the inflationary threat that could result from such
above-trend growth.
Circumstances were not normal, however, as economic crises in countries overseas
and in Latin America were the second, and ultimately more dominant, theme over
the reporting period. In August 1998, the economic troubles in Asia spread to
encompass Russia and then Latin America. As fears that the United States could
not continue to be immune from what had become a global economic crisis weighed
heavily on the U.S. equity market, investors both domestic and abroad fled to
the perceived safety of the U.S. Treasury market. Yields on U.S. Treasury
securities were driven sharply downward, as investors shunned credit-sensitive
markets in favor of the safe haven of U.S. Treasuries, and a credit/liquidity
crisis in the U.S. financial markets became evident. Faced with this scenario,
the Fed voted to ease monetary policy by 25 basis points, bringing the federal
funds target rate down to 5.25% in late September in an attempt to calm investor
fears. Market participants viewed this move to be too tentative, however, and it
was not until the Fed took two additional easing steps in mid-October and
November, bringing the federal funds target rate to 4.75%, that some semblance
of calm returned to the markets. Credit spreads narrowed over this period,
albeit not back to levels that pre-dated the crisis.
One additional factor that influenced movements in rates on U.S. Treasury
securities over this period-and in fact exacerbated the sharp decline in rates
on these instruments in October-was the reduced supply of U.S. Treasury
securities as a result of the vastly improved budget situation. With projections
for the 1999 fiscal year for the U.S. Government for a surplus in the
neighborhood of $100 billion, the paydown of debt by the Treasury over this
period kept the market well-bid.
1 An AAAm rating is obtained after S&P evaluates a number of factors, including
credit quality, market price exposure, and management. S&P monitors the
portfolio weekly for developments that could cause changes in the ratings. Money
market funds and bond funds rated Aaa by Moody's are judged to be of an
investment quality similar to Aaa-rated fixed-income obligations, that is, they
are judged to be of the best quality. These ratings do not remove market risks
and are subject to change.
Movements in short-term interest rates reflected the turbulent economic
conditions early in the reporting period, and then the relative tranquillity of
the markets once the Fed moves had their desired effect. The yield on the
one-year Treasury bill began the reporting period at 5.40%, but was driven
downward by the onslaught of investors-both domestic and abroad-seeking a safe
haven from the world economic uncertainty and the instability of the U.S. equity
market. The yield on this security reached a low of 3.85% by mid-October. As the
additional easing steps by the Fed calmed investors, the yield on this security
rose moderately to 4.60% by early November. Although the Fed took one additional
easing step in mid- November, the yield on this security traded within a
relatively narrow range of 4.40% to 4.60% for the remainder of the reporting
period.
With the flight to quality to U.S. Treasury securities driving yields on these
securities down to extreme levels, repurchase agreements remained a preferred
investment in spite of the easing steps eventually taken by the Fed. The average
maturity for the fund drifted lower as yields dropped below 4%-well below any
expectation for the federal funds target rate. The average maturity for the fund
then extended out again as yields on short-term Treasuries returned to relative
value. Overall, the average maturity target range for the fund was 35 to 45 days
over the reporting period. The fund's structure remained barbelled, with a
significant position in repurchase agreements combined with purchases of
securities with 6- to 12-month maturities. As the U.S. economy continues to chug
along seemingly unaffected by the countries around it, we would expect monetary
policy to remain unchanged in upcoming months, barring an economic collapse in
one of our major trading counterparts. However, changing economic and market
developments are continuously monitored to best serve our clients attracted to
the short-term U.S. Treasury market.
Portfolio of Investments
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM U.S. TREASURY NOTES-17.3%
$ 2,024,250,000 5.625% - 7.750%, 4/30/1999-12/30/1999 $ 2,036,711,049
REPURCHASE AGREEMENTS-83.2% 1
225,000,000 ABN AMRO, Chicago Corp., 4.740%, dated 1/29/1999, due
2/1/1999 225,000,000
582,000,000 Barclays Capital, Inc., 4.740%, dated 1/29/1999, due
2/1/1999 582,000,000
366,000,000 Bear, Stearns and Co., 4.760%, dated 1/29/1999, due 2/1/1999 366,000,000
266,000,000 CIBC Wood Gundy Securities Corp., 4.720%, dated 1/29/1999,
due 2/1/1999 266,000,000
100,000,000 CIBC Wood Gundy Securities Corp., 4.740%, dated 1/29/1999,
due 2/1/1999 100,000,000
400,000,000 2 Credit Suisse First Boston, Inc., 4.740%, dated 11/18/1998,
due 2/17/1999 400,000,000
251,000,000 Credit Suisse First Boston, Inc., 4.750%, dated 1/29/1999,
due 2/1/1999 251,000,000
157,485,000 Deutsche Morgan Grenfell, 4.740%, dated 1/29/1999, due
2/1/1999 157,485,000
576,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 4.730%,
dated 1/29/1999, due 2/1/1999 576,000,000
96,000,000 First Chicago Capital Markets, Inc., 4.720%, dated
1/29/1999, due 2/1/1999 96,000,000
466,000,000 First Union Capital Markets, 4.730%, dated 1/29/1999, due
2/1/1999 466,000,000
113,000,000 2 Goldman Sachs & Co., 4.680%, dated 1/29/1999, due 3/31/1999 113,000,000
376,000,000 2 Goldman Sachs & Co., 4.880%, dated 12/1/1998, due 2/3/1999 376,000,000
266,000,000 Greenwich Capital Markets, Inc., 4.740%, dated 1/29/1999,
due 2/1/1999 266,000,000
133,000,000 2 Lehman Government Securities, Inc., 4.700%, dated 1/21/1999,
due 3/1/1999 133,000,000
300,000,000 Morgan Stanley Group, Inc., 4.600%, dated 1/29/1999, due
2/1/1999 300,000,000
166,000,000 Paribas Corp., 4.750%, dated 1/29/1999, due 2/1/1999 166,000,000
566,000,000 Salomon Smith Barney, Inc., 4.750%, dated 1/29/1999, due
2/1/1999 566,000,000
96,000,000 Scotia Capital Markets, Inc., 4.720%, dated 1/29/1999, due
2/1/1999 96,000,000
416,000,000 Societe Generale Securities Corp., 4.730%, dated 1/29/1999,
due 2/1/1999 416,000,000
487,950,000 Societe Generale, New York, 4.730%, dated 1/29/1999, due
2/1/1999 487,950,000
100,000,000 State Street Bank and Trust Co., 4.720%, dated 1/29/1999,
due 2/1/1999 100,000,000
576,000,000 Toronto Dominion Securities (USA) Inc., 4.730%, dated
1/29/1999, due 2/1/1999 576,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-continued 1
$ 1,475,000,000 Warburg Dillon Reed LLC, 4.740%, dated 1/29/1999, due
2/1/1999 $ 1,475,000,000
167,000,000 2 Warburg Dillon Reed LLC, 4.740%, dated 11/20/1998, due
2/18/1999 167,000,000
1,066,000,000 Westdeutsche Landesbank Girozentrale, 4.730%, dated
1/29/1999, due 2/1/1999 1,066,000,000
TOTAL REPURCHASE AGREEMENTS 9,789,435,000
TOTAL INVESTMENTS (AT AMORTIZED COST) 3 $ 11,826,146,049
</TABLE>
1 The repurchase agreements 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.
2 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($11,765,329,941) at January 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in repurchase agreements $ 9,789,435,000
Investments in securities 2,036,711,049
Total investments, at amortized cost and value $ 11,826,146,049
Cash 12,741
Receivable for investments sold 51,290,264
Income receivable 46,686,960
TOTAL ASSETS 11,924,136,014
LIABILITIES:
Payable for investments purchased 112,345,856
Income distribution payable 44,878,118
Accrued expenses 1,582,099
TOTAL LIABILITIES 158,806,073
Net assets for 11,765,329,941 shares outstanding $ 11,765,329,941
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER
SHARE:
INSTITUTIONAL SHARES:
$6,016,384,966 / 6,016,384,966 shares outstanding $1.00
INSTITUTIONAL SERVICE SHARES:
$5,291,179,205 / 5,291,179,205 shares outstanding $1.00
INSTITUTIONAL CAPITAL SHARES:
$457,765,770 / 457,765,770 shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED JANUARY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 289,219,123
EXPENSES:
Investment advisory fee $ 11,174,696
Administrative personnel and services fee 4,212,860
Custodian fees 257,018
Transfer and dividend disbursing agent fees and expenses 122,156
Directors'/Trustees' fees 32,781
Auditing fees 6,826
Legal fees 20,669
Portfolio accounting fees 385,527
Shareholder services fee-Institutional Shares 7,190,366
Shareholder services fee-Institutional Service Shares 6,433,184
Shareholder services fee-Institutional Capital Shares 344,820
Share registration costs 240,965
Printing and postage 13,610
Insurance premiums 25,392
Miscellaneous 17,644
TOTAL EXPENSES 30,478,514
WAIVERS:
Waiver of investment advisory fee $ (5,090,371)
Waiver of shareholder services fee-Institutional Shares (7,190,366)
Waiver of shareholder services fee-Institutional Capital
Shares (206,892)
TOTAL WAIVERS (12,487,629)
Net expenses 17,990,885
Net investment income $ 271,228,238
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 271,228,238 $ 510,741,482
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
Institutional Shares (142,975,779) (283,582,801)
Institutional Service Shares (121,707,266) (224,897,953)
Institutional Capital Shares (6,545,193) (2,260,728)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO
SHAREHOLDERS (271,228,238) (510,741,482)
SHARE TRANSACTIONS:
Proceeds from sale of shares 34,599,647,835 62,011,458,681
Net asset value of shares issued to shareholders in payment
of distributions declared 53,497,940 122,517,950
Cost of shares redeemed (33,254,817,723) (59,678,173,575)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 1,398,328,052 2,455,803,056
Change in net assets 1,398,328,052 2,455,803,056
NET ASSETS:
Beginning of period 10,367,001,889 7,911,198,833
End of period $ 11,765,329,941 $ 10,367,001,889
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.05 0.03
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.03)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.53% 5.54% 5.36% 5.53% 5.50% 3.35%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 0.20% 2 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income 4.97% 2 5.40% 5.24% 5.37% 5.42% 3.29%
Expense waiver/
reimbursement 3 0.34% 2 0.35% 0.35% 0.36% 0.36% 0.10%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $6,016,385 $5,289,871 $4,814,583 $4,649,870 $3,441,068 $2,582,975
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1996 1995 1994 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 0.05 0.05 0.05 0.05 0.00 3
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.003)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.40% 5.28% 5.10% 5.26% 5.23% 0.29%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 0.45% 3 0.45% 0.45% 0.45% 0.45% 0.39% 3
Net investment income 4.73% 3 5.15% 5.03% 5.12% 5.53% 4.26% 3
Expense waiver/
reimbursement 4 0.09% 3 0.10% 0.10% 0.11% 0.11% 0.10% 3
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $5,291,179 $5,045,428 $3,054,110 $1,516,839 $543,855 $8,887
</TABLE>
1 Reflects operations for the period from July 5, 1994 (date of initial public
investment) to July 31, 1994.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Capital Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
JANUARY 31, YEAR ENDED JULY 31,
1999 1998 1997 1
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.02
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.02)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 2.48% 5.43% 1.58%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.31% 3 0.30% 0.30% 3
Net investment income 4.75% 3 5.30% 5.42% 3
Expense waiver/reimbursement 4 0.24% 3 0.25% 0.25% 3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $457,766 $31,703 $42,505
</TABLE>
1 Reflects operations for the period from April 14, 1997 (date of initial public
investment) to July 31, 1997.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JANUARY 31, 1999 (UNAUDITED)
ORGANIZATION
Money Market Obligations Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act") as an open-end, management
investment company. The Trust consists of six portfolios. The financial
statements included herein are only those of Treasury Obligations Fund (the
"Fund"), a diversified portfolio. The financial statements of the other
portfolios are presented separately. The assets of each portfolio are segregated
and a shareholder's interest is limited to the portfolio in which shares are
held. The investment objective of the Fund is current income consistent with
stability of principal.
The Fund offers three classes of shares: Institutional Shares,
Institutional Service Shares and Institutional Capital Shares.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
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.
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.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 16,740,259,301 29,392,382,133
Shares issued to shareholders in payment of distributions
declared 21,187,465 45,925,317
Shares redeemed (16,034,932,744) (28,963,019,841)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 726,514,022 475,287,609
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES:
Shares sold 15,922,739,800 31,821,116,897
Shares issued to shareholders in payment of distributions
declared 30,994,863 74,615,681
Shares redeemed (15,707,983,585) (29,904,414,631)
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 245,751,078 1,991,317,947
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, JULY 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL CAPITAL SHARES:
Shares sold 1,936,648,734 797,959,651
Shares issued to shareholders in payment of distributions
declared 1,315,612 1,976,952
Shares redeemed (1,511,901,394) (810,739,103)
NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL
SHARE TRANSACTIONS 426,062,952 (10,802,500)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 1,398,328,052 2,455,803,056
</TABLE>
At January 31, 1999, capital paid-in aggregated $11,765,329,941.
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 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.
SUBSEQUENT EVENT
Effective March 31, 1999, Federated Management, Adviser to the Fund, merged
into Federated Investment Management Company (formerly, Federated
Advisers).
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
WILLIAM J. COPELAND
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
ANTHONY R. BOSCH
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
SEMI-ANNUAL REPORT
[Graphic]
Treasury Obligations Fund
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JANUARY 31, 1999
[Graphic]
Treasury Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N500
Cusip 60934N872
Cusip 60934N823
1022004 (3/99)
