ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders of Government
Obligations Fund, a portfolio of Money Market Obligations Trust, which covers
the 12-month period from August 1, 1998 through July 31, 1999. The report begins
with an investment review by the fund's portfolio manager on the short-term
government market. Following the investment review are the fund's portfolio of
investments and its 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 $6.6-billion
portfolio was invested in short-term U.S. government obligations (46.5%) and
repurchase agreements fully collateralized by U.S. government securities
(54.0%).
Over the 12-month reporting period, dividends paid to shareholders of the fund's
Institutional Shares and Institutional Service Shares each totaled $0.05 per
share. On the last day of the reporting period, the 30-day net yields for
Institutional Shares and Institutional Service Shares were 4.84% and 4.59%,
respectively, while the 7-day net yields were 4.92% and 4.67%, respectively. 2
Thank you for your confidence in the daily earning power of this high-quality
cash investment. Your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
September 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
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.
The reporting period opened at the height of the economic crises in Asia, Latin
America, and Russia, and amid rumors of the troubles at Long Term Capital
Management. In spite of considerable signs of strength in the domestic economy,
these developments introduced vulnerability into our own domestic equity market,
resulting in a dramatic flight to quality to the U.S. treasury market. Prompt,
assertive action by the Federal Reserve Board (the "Fed") in the form of three,
25 basis point easing steps over September, October, and November 1998 relaxed
the credit and liquidity strains evident in the financial markets. As a result,
the economy entered 1999 with considerable momentum in the midst of relative
market stability.
Relentless consumer spending and a robust housing market drove growth of 3.7%,
6.0%, and 4.3% in the third and fourth quarters of 1998 and the first quarter of
1999, respectively. The market's attention returned to economic fundamentals, as
this pace clearly exceeded measures of the non- inflationary potential of the
economy. Although overall signs of inflation remained benign, interest rates
rose across the yield curve as expectations built that the Fed would need to
tighten monetary policy to preempt pressures down the road. By the time of Fed
Chairman Greenspan's testimony before the Joint Economic Committee later in
June, where he hinted that it may be appropriate for the Fed to take back some
of the liquidity that had been infused into the market in the fourth quarter of
1998, market expectations reflected the inevitable near-term tightening with
more to follow. As a result, when the Fed opted to tighten by 25 basis points on
June 30, 1999 but announced a neutral inter-meeting policy stance, the market
took this as a sign that additional tightenings may not be forthcoming. This
relief was short-lived, however, as Chairman Greenspan indicated in his Humphrey
Hawkins testimony before Congress later in July that the Fed was prepared to
continue to act preemptively against the threat of inflation. The reporting
period closed amid belief that the Fed would likely tighten incrementally again
at the August 24, 1999 Federal Open Market Committee meeting.
1 This rating is obtained after S&P evaluates a number of factors, including
credit quality, market price exposure and management. S&P monitors the portfolio
weekly for developments that could cause changes in the ratings. Ratings are
subject to change, and do not remove market risks.
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. Ratings are subject to change, and do not
remove market risks.
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. Ratings are subject to change,
and do not remove market risks.
Movements in short-term interest rates reflected the pronounced shifts in market
sentiment over the reporting period. The one-year agency discount note, for
example, began last August at 5.5%, then plummeted to a low of 4.4% by
mid-October, as investors flocked to U.S. treasuries as a safe haven from the
turbulence in other markets. As the monetary policy easings by the Fed calmed
the markets and the economy returned to center stage, the yield climbed to end
the reporting period to nearly 5.6%.
The fund was generally managed within a 40 to 50 day dollar-weighted average
maturity target range over the reporting period, moving within the range
according to relative value opportunities. In the fourth quarter of 1998,
however, the fund's dollar-weighted average maturity temporarily drifted as low
as 30 days, as the massive inflows to the U.S. treasury and agency markets drove
yields on these securities to extremely expensive levels. When market calm
returned, the fund moved back to within its target range. The fund's purchases
emphasized agency securities and repurchase agreements, as the treasury sector
remained well-bid over the reporting period. We added to the fund's agency
floating rate position to increase the portfolio's responsiveness to interest
rate changes. The fund had a barbelled structure, with a significant position in
short-term repurchase agreements and floating rate securities combined with
purchases of treasury and agency securities maturing in 6 to 13 months.
Looking forward to the end of the year, we expect that the Fed's need to tighten
further will depend on economic statistics and inflationary indications in the
upcoming weeks, as well as the degree of concern over potential Y2K disruptions
of the financial markets.
Shareholder Meeting Results
A Special Meeting of Shareholders of Government Obligations Fund, was held on
June 24, 1999. On April 26, 1999, the record date for shareholders voting at the
meeting, there were 5,882,610,366 total outstanding shares. The following items
were considered by shareholders and the results of their voting were as follows:
AGENDA ITEM 1
Election of Trustees: 1
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
John F. Cunningham 2,976,638,415 45,201,241
Charles F. Mansfield, Jr. 2,976,344,166 45,495,490
John S. Walsh 2,976,662,392 45,177,264
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D.,
Peter E. Madden, John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts.
AGENDA ITEM 2
Ratification of the selection of Arthur Andersen LLP as the trust's independent
auditors:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,977,829,407 7,458,166 36,552,082
AGENDA ITEM 3
To make changes to the fund's fundamental investment policies:
(a) To amend the fund's fundamental investment policy regarding diversification:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,859,069,908 68,404,909 94,364,839
(b) To amend the fund's fundamental investment policy regarding borrowing money
and issuing senior securities:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,866,996,764 68,611,063 86,231,829
(c) To amend the fund's fundamental investment policy regarding investing in
real estate:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,824,320,977 111,655,926 85,862,753
(d) To amend the fund's fundamental investment policy regarding investing in
commodities:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,872,276,796 58,421,414 91,141,446
(e) To amend the fund's fundamental investment policy regarding underwriting
securities:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,890,495,401 44,554,883 86,789,372
(f) To amend the fund's fundamental investment policy regarding lending assets:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,840,998,708 93,914,773 86,926,175
(g) To amend the fund's fundamental investment policy regarding concentration of
the fund's investments in the securities of companies in the same industry:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,873,941,727 61,338,380 86,559,549
(h) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding pledging assets:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,852,890,020 82,635,172 86,314,464
(i) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding buying securities on margin:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,835,088,163 100,713,749 86,037,744
AGENDA ITEM 4
To eliminate the fund's fundamental investment policy regarding selling
securities short:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
2,792,518,628 91,707,153 137,613,875
Portfolio of Investments
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM OBLIGATIONS-
46.5%
$ 40,500,000 Federal Farm Credit Bank
Notes, 5.400%, 7/3/2000 $ 40,443,626
582,000,000 1 Federal Home Loan Bank,
Floating Rate Notes,
4.775% - 5.120%,
8/2/1999 - 9/1/1999 581,909,188
337,650,000 Federal Home Loan Bank
Notes, 4.790% - 5.415%,
1/14/2000 - 6/14/2000 337,490,029
404,847,000 2 Federal Home Loan Mortgage
Corp. Discount Notes,
4.700% - 5.220%,
8/5/1999 - 6/15/2000 398,541,920
44,000,000 Federal Home Loan Mortgage
Corp. Note, 5.544%,
8/13/1999 43,999,219
438,000,000 1 Federal Home Loan Mortgage
Corp., Floating Rate
Notes, 4.800% - 4.990%,
8/17/1999 - 8/23/1999 437,903,350
419,000,000 2 Federal National Mortgage
Association, Discount
Notes, 4.610% - 5.250%,
8/11/1999 - 6/22/2000 412,960,550
251,000,000 1 Federal National Mortgage
Association, Floating Rate
Notes, 4.785% - 4.993%,
8/10/1999 - 9/23/1999 250,887,346
194,000,000 Federal National Mortgage
Association Notes, 4.780%
- 5.520%,
8/9/1999 - 5/5/2000 193,918,292
183,427,000 1 Housing and Urban
Development, Floating Rate
Note, 5.549%, 8/1/1999 183,427,000
13,000,000 Student Loan Marketing
Association Note, 4.930%,
2/8/2000 13,000,000
171,000,000 1 Student Loan Marketing
Association, Floating Rate
Notes,
5.313% - 5.413%, 8/3/1999 170,951,000
TOTAL SHORT-TERM
OBLIGATIONS 3,065,431,520
REPURCHASE AGREEMENTS-
54.0% 3
300,000,000 ABN AMRO Chicago Corp.,
5.130%, dated 7/30/1999,
due 8/2/1999 300,000,000
300,000,000 Bank of America, 5.130%,
dated 7/30/1999, due
8/2/1999 300,000,000
300,000,000 Bear, Stearns and Co.,
5.130%, dated 7/30/1999,
due 8/2/1999 300,000,000
55,000,000 4 Deutsche Bank AG, 5.030%,
dated 7/14/1999, due
8/16/1999 55,000,000
74,000,000 Deutsche Bank AG, 5.080%,
dated 7/30/1999, due
8/2/1999 74,000,000
800,000,000 Deutsche Bank AG, 5.100%,
dated 7/30/1999, due
8/2/1999 800,000,000
223,000,000 4 Goldman Sachs Group, LP,
5.020%, dated 7/23/1999,
due 8/25/1999 223,000,000
100,000,000 Goldman Sachs Group, LP,
5.130%, dated 7/30/1999,
due 8/2/1999 100,000,000
190,000,000 Greenwich Capital Markets,
Inc., 5.130%, dated
7/30/1999, due 8/2/1999 190,000,000
170,000,000 4 Lehman Brothers, Inc.,
5.020%, dated 7/23/1999,
due 8/25/1999 170,000,000
138,000,000 4 Morgan Stanley Group,
Inc., 4.810%, dated
5/10/1999, due 8/9/1999 138,000,000
130,000,000 Morgan Stanley Group,
Inc., 5.100%, dated
7/30/1999, due 8/2/1999 130,000,000
275,000,000 Paribas Corp., 5.130%,
dated 7/30/1999, due
8/2/1999 275,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
continued 3
$ 250,000,000 Salomon Smith Barney,
Inc., 5.125%, dated
7/30/1999, due 8/2/1999 $ 250,000,000
25,000,000 Warburg Dillon Reed LLC,
5.030%, dated 7/30/1999,
due 8/2/1999 25,000,000
225,000,000 Warburg Dillon Reed LLC,
5.130%, dated 7/30/1999,
due 8/2/1999 225,000,000
TOTAL REPURCHASE
AGREEMENTS 3,555,000,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 6,620,431,520
</TABLE>
1 Floating rate note with current rate and next reset date shown.
2 Each issue shows the rate of discount at the time of the 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
($6,585,834,967) at July 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JULY 31, 1999
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 3,555,000,000
Investments in securities 3,065,431,520
Total investments in
securities, at amortized
cost and value $ 6,620,431,520
Cash 127,890
Income receivable 25,470,939
Receivable for investments
sold 18,573,000
Receivable for shares sold 1,436,479
TOTAL ASSETS 6,666,039,828
LIABILITIES:
Payable for investments
purchased 63,114,500
Payable for shares
redeemed 823,752
Income distribution
payable 15,720,735
Accrued expenses 545,874
TOTAL LIABILITIES 80,204,861
Net assets for
6,585,834,967 shares
outstanding $ 6,585,834,967
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$4,498,580,850 /
4,498,580,850 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$2,087,254,117 /
2,087,254,117 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
YEAR ENDED JULY 31, 1999
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 322,710,191
EXPENSES:
Investment advisory fee $ 12,594,895
Administrative personnel
and services fee 4,748,275
Custodian fees 405,245
Transfer and dividend
disbursing agent fees and
expenses 162,517
Directors'/Trustees' fees 49,468
Auditing fees 13,111
Legal fees 31,524
Portfolio accounting fees 457,247
Shareholder services fee-
Institutional Shares 11,305,721
Shareholder services fee-
Institutional Service
Shares 4,433,875
Share registration costs 52,326
Printing and postage 41,681
Insurance premiums 16,696
Miscellaneous 47,144
TOTAL EXPENSES 34,359,725
WAIVERS:
Waiver of investment
advisory fee $ (5,748,147)
Waiver of shareholder
services fee-Institutional
Shares (11,305,721)
TOTAL WAIVERS (17,053,868)
Net expenses 17,305,857
Net investment income $ 305,404,334
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
OPERATIONS:
Net investment income $ 305,404,334 $ 252,269,299
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (222,751,323) (185,207,877)
Institutional Service
Shares (82,653,011) (67,061,422)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (305,404,334) (252,269,299)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 51,401,497,598 35,342,645,977
Net asset value of shares
issued to shareholders in
payment of distributions
declared 97,236,668 76,651,916
Cost of shares redeemed (50,292,422,340) (34,270, 035,225)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 1,206,311,926 1,149,262,668
Change in net assets 1,206,311,926 1,149,262,668
NET ASSETS:
Beginning of period 5,379,523,041 4,230,260,373
End of period $ 6,585,834,967 $ 5,379,523,041
</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>
YEAR ENDED JULY 31 1999 1998 1997 1996
1995
<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 0.05 0.05 0.05 0.05
0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05)
(0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
1.00
TOTAL RETURN 1 5.04% 5.59% 5.43% 5.55%
5.57%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.54% 0.55% 0.55% 0.56%
0.60%
Net investment income 2 4.58% 5.10% 4.97% 5.05%
5.18%
Expenses (after waiver) 0.20% 0.20% 0.20% 0.20%
0.20%
Net investments income (after waiver) 4.92% 5.45% 5.32% 5.41%
5.58%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $4,498,581 $3,707,106 $3,293,392 $2,182,999
$1,926,516
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntarily
waivers had not occurred, the ratios would have been as indicated.
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>
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 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 4.78% 5.33% 5.16% 5.29% 5.31%
RATIOS TO AVERAGE NET ASSETS:
Expenses 3 0.54% 0.55% 0.55% 0.56% 0.60% 4
Net investment income 3 4.58% 5.13% 4.96% 5.03% 5.48% 4
Expenses (after waivers) 0.45% 0.45% 0.45% 0.45% 0.45% 4
Net investment income (after waivers) 4.67% 5.23% 5.06% 5.14% 5.63% 4
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $2,087,254 $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 During the period, certain fees were voluntarily waived. If such voluntarily
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JULY 31, 1999
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 14 portfolios. The financial
statements included herein are only those of Government 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 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.
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 July 31, 1999, capital paid-in aggregated $6,585,834,967.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 36,151,964,653 24,848,661,392
Shares issued to
shareholders in payment of
distributions declared 61,202,566 49,306,799
Shares redeemed (35,421,691,944) (24,484,254,216)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 791,475,275 413,713,975
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 15,249,532,945 10,493,984,585
Shares issued to
shareholders in payment of
distributions declared 36,034,102 27,345,117
Shares redeemed (14,870,730,396) (9,785,781,009)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 414,836,651 735,548,693
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 1,206,311,926 1,149,262,668
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.20% 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 shares 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 (UNAUDITED)
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.
CHANGE OF INDEPENDENT AUDITORS
On May 19, 1999, the Trust's Trustees, upon the recommendation of the Audit
Committee of the Trustees, requested and subsequently accepted the resignation
of Arthur Andersen LLP ("AA") as the Trust's independent auditors. AA's reports
on the Trust's financial statements for the fiscal years ended July 31, 1998 and
July 31, 1999 contained no adverse opinion or disclaimer of opinion nor were
they qualified or modified as to uncertainty, audit scope or accounting
principles. During the Trust's fiscal years ended July 31, 1998 and July 31,
1999, (i) there were no disagreements with AA on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of AA, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports on the financial statements for such years; and (ii)
there were no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Act of 1934, as amended.
The Trust, by action of its Trustees, upon the recommendation of the Audit
Committee of the Trustees, has engaged Deloitte & Touche LLP ("D&T") as the
independent auditors to audit the Trust's financial statements for the fiscal
year ending July 31, 2000. During the Trust's fiscal years ending July 31, 1998
and July 31, 1999, neither the Trust nor anyone on its behalf has consulted D&T
on items which (i) concerned the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Trust's financial statements or (ii)
concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Item 304 of Regulation S-K) of reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Report of Independent Public Accountants
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
GOVERNMENT OBLIGATIONS FUND:
We have audited the accompanying statement of assets and liabilities of
Government Obligations Fund (an investment portfolio of Money Market Obligations
Trust, a Massachusetts business trust), including the portfolio of investments,
as of July 31, 1999, the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for the periods presented. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1999, by correspondence with the custodian and brokers. As to confirmation
replies not received, we carried out alternative auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Government Obligations Fund (an investment portfolio of Money Market Obligations
Trust) as of July 31, 1999, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
September 28, 1999
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
JOHN F. CUNNINGHAM
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
WILLIAM D. DAWSON, III
Chief Investment Officer
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
ANNUAL REPORT
Government Obligations Fund
ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1999
[Graphic]
Federated
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
G00645-05 (9/99)
[Graphic]
ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders of Government
Obligations Tax-Managed Fund, a portfolio of Money Market Obligations Trust,
which covers the 12-month period from August 1, 1998 through July 31, 1999. The
report begins with an investment review by the fund's portfolio manager on the
short-term government market. Following the investment review are the fund's
portfolio of investments and its financial statements.
Government Obligations Tax-Managed Fund helps tax-sensitive investors pursue
daily dividends, a high level of liquidity, and a stable $1.00 net asset value.
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 12-month reporting period, the fund paid double-tax-free dividends
totaling $0.05 per share to shareholders of the fund's Institutional Shares and
Institutional Service Shares. At the end of the reporting period, net assets
reached approximately $2.4 billion.
Thank you for selecting this fund as a convenient way to help your ready cash
earn daily, tax-free income. Your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
September 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
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
Banks, Federal Home Loan Banks, the Tennessee Valley Authority, and normally
maintains 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.
The reporting period opened at the height of the economic crises in Asia, Latin
America, and Russia, and amid rumors of the troubles at Long Term Capital
Management. In spite of considerable signs of strength in the domestic economy,
these developments introduced vulnerability into our own domestic equity market,
causing a dramatic flight to quality to the U.S. treasury market. Prompt,
assertive action by the Federal Reserve Board ( the "Fed") in the form of three,
25 basis point easing steps over September, October, and November of 1998
relaxed the credit and liquidity strains evident in the financial markets. As a
result, the economy entered 1999 with considerable momentum in the midst of
relative market stability.
Relentless consumer spending and a robust housing market drove growth to 3.70%,
6.00%, and 4.30% in the third and fourth quarters of 1998 and the first quarter
of 1999, respectively. The market's attention returned to economic fundamentals,
as this pace clearly exceeded measures of the non- inflationary potential of the
economy. Although overall signs of inflation remained benign, interest rates
rose across the yield curve as expectations built that the Fed would need to
tighten monetary policy to preempt pressures down the road. By the time of
Chairman Greenspan's testimony before the Joint Economic Committee later in
June, where he hinted that it may be appropriate for the Fed to take back some
of the liquidity that had been infused into the market in the fourth quarter of
1998, market expectations reflected the inevitable near-term tightening with
more to follow. As a result, when the Fed opted a tightening of 25 basis points
on June 30th, but announced a neutral intermeeting policy stance, the market
took this as a sign that additional tightenings may not be forthcoming. This
relief was short-lived, however, as Chairman Greenspan indicated in his Humphrey
Hawkins testimony before Congress later in July that the Fed was prepared to
continue to act preemptively against the threat of inflation. The reporting
period closed amid the belief that the Fed would likely tighten incrementally
again at the August 24th Federal Open Market Committee meeting.
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. Ratings are subject to change, and do not remove
market risks.
Movements in short-term interest rates reflected the pronounced shifts in market
sentiment over the reporting period. The one-year agency discount note, for
example, began last August at 5.50%, then plummeted to a low of 4.40% by
mid-October, as investors flocked to U.S. treasuries as a safe haven from the
turbulence in other markets. As the monetary policy easings by the Fed calmed
the markets and the economy returned to center stage, the yield climbed to end
the reporting period at nearly 5.60%.
The fund was generally managed within a 40 to 50 day average maturity target
range over the reporting period, moving within the range according to relative
value opportunities. The fund's purchases emphasized agency securities, as the
U.S. treasury sector remained well-bid over the reporting period. We added to
the fund's agency floating rate position to increase the portfolio's
responsiveness to interest rate changes. The fund's structure was barbelled,
with a significant position in short-term, fixed rate agency securities and
floating rate securities combined with purchases of U.S. treasury and agency
securities maturing in six to 13 months. In the absence of repurchase
agreements, the fund utilized a Student Loan Marketing Association floating rate
masternote agreement and a ladder of short-term agency securities to facilitate
liquidity.
Looking forward, we would expect that the need for the Fed to tighten further by
the end of the year will depend on economic statistics and inflationary
indications in the upcoming weeks, as well as the degree of concern for
potential Y2K disruptions of the financial markets.
Shareholder Meeting Results
A Special Meeting of Shareholders of Government Obligations Tax-Managed Fund was
held on June 24, 1999. On April 26, 1999, the record date for shareholders
voting at the meeting, there were 2,427,248,419 total outstanding shares. The
following items were considered by shareholders and the results of their voting
were as follows:
AGENDA ITEM 1
Election of Trustees: 1
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
<S> <C> <C>
John F. Cunningham 1,233,234,831 2,318,849
Charles F. Mansfield, Jr. 1,233,234,831 2,318,849
John S. Walsh 1,233,234,831 2,318,849
</TABLE>
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D.,
Peter E. Madden, John E. Murray, Jr., J.D., S.J.D., and Marjorie P. Smuts.
AGENDA ITEM 2
Ratification of the selection of Arthur Andersen LLP as the trust's independent
auditors:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,229,266,140 995,291 5,292,249
</TABLE>
AGENDA ITEM 3
To make changes to the fund's fundamental investment policies:
(a) To amend the fund's fundamental investment policy regarding diversification:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,187,721,623 29,218,579 18,613,478
</TABLE>
(b) To amend the fund's fundamental investment policy regarding borrowing money
and issuing senior securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,187,707,018 29,230,093 18,616,569
</TABLE>
(c) To amend the fund's fundamental investment policy regarding investing in
real estate:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,204,509,355 15,512,980 15,531,345
</TABLE>
(d) To amend the fund's fundamental investment policy regarding investing in
commodities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,182,046,887 37,970,133 15,536,660
</TABLE>
(e) To amend the fund's fundamental investment policy regarding underwriting
securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,212,955,453 4,013,664 18,584,563
</TABLE>
(f) To amend the fund's fundamental investment policy regarding lending assets:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,212,850,962 7,166,058 15,536,660
</TABLE>
(g) To amend the fund's fundamental investment policy regarding concentration of
the fund's investments in the securities of companies in the same industry:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,185,682,907 34,339,428 15,531,345
</TABLE>
(h) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding pledging assets:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,185,392,973 34,578,887 15,581,820
</TABLE>
(i) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding buying securities on margin:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,185,433,865 34,578,887 15,540,928
</TABLE>
AGENDA ITEM 4
To eliminate the fund's fundamental investment policy regarding selling
securities short:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,173,261,602 43,676,797 18,615,281
</TABLE>
Portfolio of Investments
JULY 31, 1999
<TABLE>
<CAPTION>
PRINICIPAL
VALUE VALUE
<S> <C> <C>
GOVERNMENT AGENCIES-100.9%
$ 35,000,000 Federal Farm Credit Bank,
5.000% - 5.400%, 4/3/2000 -
7/3/2000 $ 34,967,294
114,977,000 1 Federal Farm Credit Bank,
Discount Notes, 4.680% -
5.020%,
8/3/1999 - 8/27/1999 114,781,490
128,000,000 2 Federal Farm Credit Bank,
Floating Rate Notes,
4.944% - 5.050%,
8/1/1999 - 8/24/1999 127,958,236
110,000,000 Federal Home Loan Bank,
4.790% - 5.415%, 1/14/2000
- 6/14/2000 109,948,424
1,129,001,000 1 Federal Home Loan Bank,
Discount Notes, 4.690% -
5.310%,
8/4/1999 - 1/28/2000 1,120,898,452
339,000,000 2 Federal Home Loan Bank,
Floating Rate Notes,
4.775% - 5.193%,
8/6/1999 - 9/1/1999 338,917,318
42,000,000 Student Loan Marketing Association, 4.930% - 5.890%,
8/11/1999 -
2/8/2000 42,043,085
171,000,000 2 Student Loan Marketing
Association, Floating Rate
Notes, 5.005% - 5.413%,
8/3/1999 - 8/10/1999 170,967,006
76,200,000 2 Student Loan Marketing
Association, Master Note,
4.863%, 8/3/1999 76,200,000
282,000,000 2 Tennessee Valley Authority
Discount Notes, 4.890% -
4.950%,
8/9/1999 - 8/25/1999 281,373,613
TOTAL GOVERNMENT AGENCIES 2,418,054,918
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 2,418,054,918
</TABLE>
1 The issue shows the rate of 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
($2,395,967,294) at July 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JULY 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 2,418,054,918
Cash 1,761,837
Income receivable 6,914,951
Deferred organizational
costs 7,239
Other assets 28,175
TOTAL ASSETS 2,426,767,120
LIABILITIES:
Payable for investments
purchased $ 21,989,000
Payable for shares
redeemed 738,269
Income distribution
payable 7,757,974
Accrued expenses 314,583
TOTAL LIABILITIES 30,799,826
Net assets for
2,395,967,294 shares
outstanding $ 2,395,967,294
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$1,066,411,660
/1,066,411,660 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$1,329,555,634
/1,329,555,634 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 112,890,960
EXPENSES:
Investment advisory fee $ 4,442,958
Administrative personnel
and services fee 1,674,995
Custodian fees 123,166
Transfer and dividend
disbursing agent fees and
expenses 97,172
Directors'/Trustees' fees 21,553
Auditing fees 12,780
Legal fees 12,491
Portfolio accounting fees 210,425
Shareholder services fee-
Institutional Shares 2,602,759
Shareholder services fee-
Institutional Service
Shares 2,950,939
Share registration costs 68,143
Printing and postage 30,333
Insurance premiums 5,247
Miscellaneous 29,232
TOTAL EXPENSES 12,282,193
WAIVERS AND
REIMBURSEMENTS:
Waiver of investment
advisory fee $ (2,187,791)
Waiver of shareholder
services fee-Institutional
Shares (2,602,759)
TOTAL WAIVERS (4,790,550)
Net expenses 7,491,643
Net investment income $ 105,399,317
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 105,399,317 $ 75,112,505
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (50,768,000) (40,176,975)
Institutional Service
Shares (54,631,317) (34,935,530)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (105,399,317) (75,112,505)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 9,394,668,858 6,514,205,911
Net asset value of shares
issued to shareholders in
payment of
distributions declared 24,328,475 25,262,402
Cost of shares redeemed (8,806,949,621) (5,687,326,375)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 612,047,712 852,141,938
Change in net assets 612,047,712 852,141,938
NET ASSETS:
Beginning of period 1,783,919,582 931,777,644
End of period $ 2,395,967,294 $ 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>
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 0.05 0.05 0.05 0.05 0.01
LESS DISTRIBUTIONS:
Distributions from
net investment income (0.05) (0.05) (0.05) (0.05) (0.01)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 5.00% 5.49% 5.35% 5.50% 0.94%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 3 0.55% 0.57% 0.58% 0.61% 0.85% 4
Net investment
income 3 4.53% 4.98% 4.88% 4.84% 5.13% 4
Expenses
(after waivers) 0.20% 0.20% 0.20% 0.17% 0.20% 4
Net investment income
(after waivers) 4.88% 5.35% 5.26% 5.28% 5.78% 4
SUPPLEMENTAL DATA:
Net assets, end of
period (000 omitted) $1,066,412 $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 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
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 0.05 0.05 0.05 0.05 0.01
LESS DISTRIBUTIONS:
Distributions from
net investment income (0.05) (0.05) (0.05) (0.05) (0.01)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 4.74% 5.23% 5.09% 5.23% 0.95%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 3 0.55% 0.57% 0.58% 0.61% 0.85% 4
Net investment
income 3 4.53% 4.99% 4.84% 4.81% 5.15% 4
Expense (after
wavier) 0.45% 0.45% 0.45% 0.42% 0.45% 4
Net investment
income (after waivers) 4.63% 5.11% 4.97% 5.00% 5.55% 4
SUPPLEMENTAL DATA:
Net assets, end of
period (000 omitted) $1,329,556 $830,652 $421,095 $322,698 $76,165
</TABLE>
1 Reflects operations for the period 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 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JULY 31, 1999
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 14 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 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 Board of Trustees (the "Trustees") to issue
an unlimited number of full and fractional shares of beneficial interest
(without par value) for each class of shares. At July 31, 1999, capital paid-in
aggregated $2,395,967,294. Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
INSTITUTIONAL SHARES:
<S> <C> <C>
Shares sold 3,078,610,269 2,745,127,545
Shares issued to
shareholders in payment of
distributions declared 8,784,273 17,109,018
Shares redeemed (2,974,250,945) (2,319,651,358)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 113,143,597 442,585,205
<CAPTION>
YEAR ENDED JULY 31 1999 1998
INSTITUTIONAL SERVICE
SHARES:
<S> <C> <C>
Shares sold 6,316,058,589 3,769,078,366
Shares issued to
shareholders in payment of
distributions declared 15,544,202 8,153,384
Shares redeemed (5,832,698,676) (3,367,675,017)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 498,904,115 409,556,733
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 612,047,712 852,141,938
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.20% 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 can
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 their expenses. These expenses have been
deferred and are being amortized over the five-year period following the Fund's
effective date.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000 (UNAUDITED)
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.
CHANGE OF INDEPENDENT AUDITORS
On May 19, 1999, the Trust's Trustees, upon the recommendation of the Audit
Committee of the Trustees, requested and subsequently accepted the resignation
of Arthur Andersen LLP ("AA") as the Trust's independent auditors. AA's reports
on the Trust's financial statements for the fiscal years ended July 31, 1998 and
July 31, 1999 contained no adverse opinion or disclaimer of opinion nor were
they qualified or modified as to uncertainty, audit scope or accounting
principles. During the Trust's fiscal years ended July 31, 1998 and July 31,
1999, (i) there were no disagreements with AA on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of AA, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports on the financial statements for such years; and (ii)
there were no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Act of 1934, as amended.
The Trust, by action of its Trustees, upon the recommendation of the Audit
Committee of the Trustees, has engaged Deloitte & Touche LLP ("D&T") as the
independent auditors to audit the Trust's financial statements for the fiscal
year ending July 31, 2000. During the Trust's fiscal years ended July 31, 1998
and July 31, 1999, neither the Trust nor anyone on its behalf has consulted D&T
on items which (i) concerned the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Trust's financial statements or (ii)
concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Item 304 of Regulation S-K) of reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Report of Independent Public Accountants
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
GOVERNMENT OBLIGATIONS TAX-MANAGED FUND:
We have audited the accompanying statement of assets and liabilities of
Government Obligations Tax-Managed Fund (an investment portfolio of Money Market
Obligations Trust, a Massachusetts business trust), including the portfolio of
investments, as of July 31, 1999, the related statement of operations for the
year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for the periods
presented. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1999, by correspondence with the custodian and brokers. As to confirmation
replies not received, we carried out alternative auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Government Obligations Tax-Managed Fund (an investment portfolio of Money Market
Obligations Trust) as of July 31, 1999, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
September 28, 1999
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
JOHN F. CUNNINGHAM
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
WILLIAM D. DAWSON, III
Chief Investment Officer
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
Government Obligations Tax-Managed Fund
ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1999
ANNUAL REPORT
[Graphic]
Federated
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
G02710-01 (9/99)
[Graphic]
ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders of Prime Obligations
Fund, a portfolio of Money Market Obligations Trust, which covers the 12-month
period from August 1, 1998 through July 31, 1999. The report begins with an
investment review by the fund's portfolio manager on the short-term market.
Following the investment review are the fund's portfolio of investments and its
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 $9.4 billion
portfolio was invested across a wide range of high-quality, short-term money
market securities, including variable rate instruments (31.2%), commercial paper
(23.5%), time deposits (14.6%), certificates of deposit (9.6%), repurchase
agreements (9.1%), short-term notes (7.6%) and loan participation notes (4.2%).
Over the 12-month reporting period, dividends paid to shareholders of the fund's
Institutional Shares and Institutional Service Shares each totaled $0.05 per
share. On the last day of the reporting period, the 30-day net yields for
Institutional Shares and Institutional Service Shares were 4.95% and 4.70%,
respectively, while the 7-day net yields were 5.01% and 4.76%, 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
September 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
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 397 days
or less. The average maturity of these securities, computed on a dollar weighted
basis, will be 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.
Although economic growth in the first half of 1999 was slower than the torrid
pace set in the second half of 1998, it still remained slightly above target.
Gross Domestic Product ("GDP") for the first quarter registered 4.3% while
second quarter GDP abated to 2.3%. The consumer sector remained the dominant
growth engine, although recoveries in the emerging market economies had
positively impacted the manufacturing sector as well as the export sector. The
employment situation in the U.S. continued to add stability to the economy as
the most recent employment report of July reflected an unemployment rate of just
4.3%.
An inflation scare was introduced into the market with the release of the April
1999 producer price index ("PPI"). The PPI increased at an annualized pace of
6.2% followed by the April consumer price index ("CPI") which increased 8.7%.
For the entire reporting period, the CPI increased just 2.1% while the PPI rose
1.5%. Wages provided the third inflationary threat for the reporting period as
the employment cost index registered a mild 3.2% gain over the entire reporting
period and a larger than expected 4.0% annualized gain in the second quarter.
The Federal Reserve Board (the "Fed") chose to act preemptively to quell these
inflationary threats and raised the target rate for federal funds from 4.75% to
5.00% on June 30, 1999. This erased a portion of the three consecutive 25 basis
point rate cuts engineered in the fall of 1998 to quell liquidity fears in the
marketplace. These three consecutive decreases took place in September, October,
and November. The money market had already anticipated the most recent Fed
action, resulting in a much steeper money market yield curve from the middle of
the month of April, 1999. Thirty-day commercial paper started the reporting
period at 5.56% on August 1, 1998, declined as low as 4.80% in mid-January, and
then basically traded steadily up to the 5.11% level through the end of July.
The target dollar-weighted average maturity range for Prime Obligations Fund was
lengthened to 45-55 days from 40-50 days on October 1, 1998, reflecting a
neutral to positive position regarding the money market yield curve. In
structuring the fund, there was continued emphasis placed on positioning 30-35%
of the fund's core assets in variable rate demand notes and accomplishing a
modest barbell structure.
During the 12 months ended July 31, 1999, the net assets of Prime Obligations
Fund increased from 7.4 billion to 9.4 billion while the 7-day net yields
decreased from 5.50% to 5.01% for Institutional Shares and from 5.25% to 4.76%
for Institutional Service Shares. 1 The effective dollar-weighted average
maturity of the fund on July 31, 1999 was 49 days.
1 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.
Last Meeting of Shareholders
A Special Meeting of Shareholders of Prime Obligations Fund was held on June 24,
1999. On April 26, 1999, the record date for shareholders voting at the meeting,
there were 8,661,826,123 total outstanding shares. The following items were
considered by shareholders and the results of their voting were as follows:
AGENDA ITEM 1
Election of Trustees: 1
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
John F. Cunningham 4,973,396,292 13,544,822
Charles F. Mansfield, Jr. 4,973,606,696 13,334,418
John S. Walsh 4,973,668,958 13,272,156
</TABLE>
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D.,
Peter E. Madden, John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts.
AGENDA ITEM 2
Ratification of the selection of Arthur Andersen LLP as the trust's independent
auditors:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,720,940,379 1,618,503 264,382,231
</TABLE>
AGENDA ITEM 3
To make changes to the fund's fundamental investment policies:
(a) To amend the fund's fundamental investment policy regarding diversification:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,583,672,334 83,677,679 319,530,515
</TABLE>
(b) To amend the fund's fundamental investment policy regarding borrowing money
and issuing senior securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,534,091,466 133,319,133 319,530,515
</TABLE>
(c) To amend the fund's fundamental investment policy regarding investing in
real estate:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,581,325,475 87,811,413 317,804,226
</TABLE>
(d) To amend the fund's fundamental investment policy regarding investing in
commodities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,552,047,535 115,154,206 319,739,373
</TABLE>
(e) To amend the fund's fundamental investment policy regarding underwriting
securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,588,873,427 80,225,258 317,842,429
</TABLE>
(f) To amend the fund's fundamental investment policy regarding lending assets:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,595,964,562 72,613,736 318,362,816
</TABLE>
(g) To amend the fund's fundamental investment policy regarding concentration of
the fund's investments in the securities of companies in the same industry:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,534,951,594 114,480,863 337,508,657
</TABLE>
(h) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding pledging assets:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,534,840,919 132,610,156 319,490,039
</TABLE>
(i) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding buying securities on margin:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,551,294,006 116,292,782 319,354,326
</TABLE>
AGENDA ITEM 4
To eliminate certain of the fund's fundamental investment policies:
(a) To remove the fund's fundamental investment policy regarding selling
securities short:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,518,127,658 150,722,998 318,090,458
</TABLE>
(b) To remove the fund's fundamental investment policy regarding investing in
restricted securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
4,583,672,334 83,677,679 319,591,101
</TABLE>
Portfolio of Investments
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
CERTIFICATES OF DEPOSIT-
9.6%
BANKING-9.6%
$ 15,000,000 Bank of Montreal, 5.200%,
5/12/2000 $ 14,994,363
79,000,000 Barclays Bank of Canada,
(Barclays Bank PLC, London
GTD), 4.980% - 5.050%,
1/10/2000 - 1/13/2000 78,987,646
70,000,000 Bayerische Landesbank
Girozentrale, 5.115%,
3/21/2000 69,969,613
110,000,000 Canadian Imperial Bank of
Commerce, 5.010% - 5.270%,
2/7/2000 - 3/3/2000 109,973,247
262,500,000 Commerzbank AG, Frankfurt,
5.160% - 5.240%, 3/9/2000 -
5/15/2000 262,452,410
150,000,000 Rabobank Nederland,
Utrecht, 5.000%, 1/14/2000 150,000,000
111,000,000 Royal Bank of Canada,
Montreal, 4.980%,
1/24/2000 110,979,391
50,000,000 Svenska Handelsbanken,
Stockholm, 5.150%,
3/20/2000 49,990,818
25,000,000 Toronto-Dominion Bank,
5.070%, 1/10/2000 24,995,719
28,000,000 UBS AG, 5.080% - 5.250%,
1/13/2000 - 3/10/2000 28,001,340
TOTAL CERTIFICATES OF
DEPOSIT 900,344,547
COMMERCIAL PAPER-23.5% 1
BANKING-5.3%
20,000,000 Abbey National N.A. Corp.,
(Abbey National Bank PLC,
London GTD), 4.865% -
4.950%, 11/26/1999 -
12/1/1999 19,676,253
145,000,000 Aspen Funding Corp., (MBIA
INS), 5.120% - 5.125%,
8/2/1999 - 8/25/1999 144,864,164
2,805,000 BHS Long Term Care,
(LaSalle National Bank,
Chicago LOC), 5.170%,
9/7/1999 2,790,095
7,065,000 Benedictine Health System,
(LaSalle National Bank,
Chicago LOC),
5.300%, 9/7/1999 7,026,515
44,603,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
Support Agreement), 4.850%
- 5.470%, 8/2/1999 -
1/18/2000 44,368,699
153,343,000 Park Avenue Receivables
Corp., 5.120% - 5.200%,
8/6/1999 - 8/23/1999 153,046,899
119,903,000 Three Rivers Funding
Corp., 5.120%, 8/10/1999 -
8/20/1999 119,634,435
8,000,000 Wood Street Funding Corp.,
4.940%, 8/25/1999 7,973,653
TOTAL 499,380,713
ELECTRIC POWER-0.2%
18,485,000 Southern Electric
Generating Co. (SEGCO),
5.050% - 5.250%,
8/10/1999 - 9/10/1999 18,388,255
FINANCE - AUTOMOTIVE-0.2%
20,000,000 General Motors Acceptance
Corp., 5.250%, 3/6/2000 19,364,167
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMERCIAL PAPER-continued
1
FINANCE - COMMERCIAL-12.7%
$ 58,000,000 Beta Finance, Inc.,
5.000%, 9/9/1999 $ 57,685,833
45,000,000 Corporate Asset Funding
Co., Inc. (CAFCO), 4.930% -
4.970%,
8/2/1999 - 8/5/1999 44,983,456
25,000,000 Falcon Asset
Securitization Corp.,
5.130%, 8/16/1999 24,946,563
64,500,000 GE Capital International
Funding, Inc., (General
Electric Capital Corp.
GTD), 5.290% - 5.310%,
1/24/2000 - 1/26/2000 62,822,067
175,000,000 General Electric Capital
Corp., 5.130%, 8/2/1999 174,975,063
164,387,000 Greenwich Funding Corp.,
4.930% - 5.130%, 8/16/1999
- 2/1/2000 163,387,659
110,000,000 Preferred Receivables
Funding Co. (PREFCO),
4.930% - 4.940%,
8/2/1999 - 8/4/1999 109,972,594
72,810,000 Receivables Capital Corp.,
4.930% - 5.175%, 8/3/1999 -
10/7/1999 72,591,908
289,900,000 Sheffield Receivables
Corp., 4.950% - 5.180%,
8/6/1999 - 9/16/1999 289,117,028
192,742,000 Sigma Finance, Inc.,
5.200% - 5.550%, 10/4/1999
- 2/4/2000 189,539,898
TOTAL 1,190,022,069
FINANCE - RETAIL-3.7%
75,000,000 Associates First Capital
Corp., 5.125% - 5.450%,
8/2/1999 - 1/24/2000 74,326,771
19,900,000 CommoLoCo, (American
General Finance Corp.
GTD), 5.440%, 1/26/2000 19,364,734
125,000,000 New Center Asset Trust,
A1+/P1 Series, 5.130%,
8/2/1999 124,982,188
135,000,000 New Center Asset Trust,
A1/P1 Series, 4.830%,
8/10/1999 - 8/12/1999 134,827,596
TOTAL 353,501,289
INSURANCE-1.4%
83,938,000 CXC, Inc., 5.050% - 5.130%,
8/10/1999 - 9/3/1999 83,687,887
45,000,000 Marsh USA Inc., 5.520%,
1/28/2000 43,758,000
TOTAL 127,445,887
TOTAL COMMERCIAL PAPER 2,208,102,380
SHORT-TERM NOTES-7.6%
BANKING-1.7%
60,000,000 Abbey National Treasury
Services, PLC, 4.990%,
1/10/2000 59,992,294
95,000,000 Abbey National Treasury
Services, PLC, 5.075%,
1/13/2000 94,989,650
TOTAL 154,981,944
FINANCE - AUTOMOTIVE-1.2%
32,000,000 Honda Auto Lease Trust
1999-A, Class A1, 5.445%,
8/15/2000 32,000,000
85,000,000 Toyota Auto Receivables
1999-A Owner Trust, Class
1, 5.365%, 8/11/2000 85,000,000
TOTAL 117,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
SHORT-TERM NOTES-continued
FINANCE - COMMERCIAL-3.4%
$ 322,000,000 Beta Finance, Inc., 5.100%
- 5.700%, 1/18/2000 -
6/28/2000 $ 322,010,438
FINANCE - EQUIPMENT-0.9%
46,000,000 Caterpillar Financial
Asset Trust 1999-A, Class
1, 5.365%, 7/25/2000 46,000,000
32,562,899 Navistar Financial 1999-A
Owner Trust, Class A-1,
5.003%, 6/15/2000 32,557,287
9,990,672 Newcourt Equipment Trust
Securities 1998-2, Class
A-1, 5.195%, 1/15/2000 9,990,672
TOTAL 88,547,959
INSURANCE-0.4%
950,186 Americredit Automobile
Receivables Trust 1998-D,
Class A1, (FSA INS),
5.199%, 11/12/1999 950,186
4,501,121 Americredit Automobile
Receivables Trust 1999-A,
Class A1, (FSA INS),
4.980%, 3/12/2000 4,501,121
15,807,682 Americredit Automobile
Receivables Trust 1999-B,
Class A1, (FSA INS),
4.917%, 6/12/2000 15,807,683
7,148,558 First Sierra Equipment
Contract Trust 1999-1,
Class A1, (MBIA INS),
4.967%, 5/15/2000 7,148,125
5,541,349 WFS Financial 1998-C Owner
Trust, Class A1, (FSA INS),
5.395%, 11/20/1999 5,541,349
TOTAL 33,948,464
TOTAL SHORT-TERM NOTES 716,488,805
LOAN PARTICIPATION-4.2%
BROKERAGE-1.9%
175,000,000 Goldman Sachs Group, Inc.,
5.023%, 8/2/1999 175,000,000
ELECTRICAL EQUIPMENT-0.3%
29,300,000 Mt. Vernon Phenol Plant
Partnership, (General
Electric Co. GTD),
5.050%, 5/17/2000 29,300,000
FINANCE - AUTOMOTIVE-0.7%
62,805,971 General Motors Acceptance
Corp., Mortgage of PA,
(General Motors Acceptance
Corp. GTD), 5.220%,
8/2/1999 62,805,971
FINANCE - EQUIPMENT-1.3%
125,000,000 Pitney Bowes Credit Corp.,
5.180%, 8/10/1999 124,838,125
TOTAL LOAN PARTICIPATION 391,944,096
VARIABLE RATE INSTRUMENTS-
31.2% 4
BANKING-12.9%
8,880,000 4 C's LLC, Series 1998,
(KeyBank, N.A. LOC),
5.250%, 8/5/1999 8,880,000
3,025,000 550 West 14th Place, Series
1999-A, (Harris Trust &
Savings Bank, Chicago
LOC), 5.250%, 8/5/1999 3,025,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 5,390,000 Abbott Foods, Series 1996,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 $ 5,390,000
10,200,000 Active Living of Glenview,
LLC, Series 1998, (Firstar
Bank, Milwaukee LOC),
5.310%, 8/4/1999 10,200,000
5,070,000 Alabama State IDA, Series
1994, Miltope Project,
(Regions Bank, Alabama
LOC), 5.310%, 8/5/1999 5,070,000
6,565,000 Alabama State IDA,
(Wellborn Cabinet, Inc.),
Tax Revenue Bonds,
(AmSouth
Bank N.A. Birmingham LOC),
5.270%, 8/5/1999 6,565,000
2,135,000 Alabama State IDA,
Standard Furniture
Project, Series 1995,
(AmSouth Bank N.A.
Birmingham LOC), 5.270%,
8/5/1999 2,135,000
5,420,000 Alexandria Executive Club
LP, (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 5,420,000
7,500,000 Aliceville, AL IDB,
Buchanan Hardwood Flooring
Co., Series 1999, (Regions
Bank, Alabama LOC),
5.310%, 8/5/1999 7,500,000
2,890,000 Allegheny County, PA IDA,
Series 1999-B, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 2,890,000
11,220,000 American Xtal Technology,
Inc., Xtal Project, Series
1998, (U.S. Bank, N.A.,
Minneapolis LOC), 5.200%,
8/5/1999 11,220,000
8,080,000 Arrow N.A. Inc., (Bank of
America NT and SA, San
Francisco LOC),
5.270%, 8/5/1999 8,080,000
3,500,000 Asset Holdings V,
(Bayerische Hypotheken-und
Vereinsbank AG LOC),
5.270%, 8/5/1999 3,500,000
12,000,000 Association of American
Medical Colleges, (Chase
Manhattan Bank N.A. New
York GTD), 5.310%,
8/4/1999 12,000,000
3,000,000 Auth Family, LLC, 1998
Issue, (Allfirst LOC),
5.220%, 8/3/1999 3,000,000
3,800,000 Balboa Investment Group V,
Series 1997, (AmSouth
Bank, N.A. Birmingham
LOC), 5.270%, 8/5/1999 3,800,000
4,000,000 Bardstown City, KY, (RJ
Tower Project), Series
1995, (Comerica, Inc.
LOC),
5.230%, 8/5/1999 4,000,000
8,000,000 Bethesda Country Club,
Inc., Series 1997,
(Allfirst LOC), 5.220%,
8/3/1999 8,000,000
18,580,000 Beverly Hills Nursing
Center, Inc., Medilodge
Project Series 1996,
(KeyBank, N.A. LOC),
5.320%, 8/5/1999 18,580,000
1,592,790 Bowling Green Manor LP,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 1,592,790
10,000,000 Brentlinger Real Esate
Co., (Huntington National
Bank, Columbus, OH LOC),
5.320%, 8/5/1999 10,000,000
2,800,000 Broadway Investments,
Inc., Series 1999,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 2,800,000
1,500,000 Burlington, WI Community
Development Authority, Hi
Liter Graphics,
Series 1998-B, (Bank One,
Wisconsin, N.A. LOC),
5.320%, 8/5/1999 1,500,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 9,700,000 Capital One Funding Corp.,
Series 1998-C, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 $ 9,700,000
22,191,000 Capital One Funding Corp.,
Series 1999-B, (Bank One,
Ohio, N.A. LOC),
5.230%, 8/5/1999 22,191,000
2,700,000 Capital One Funding Corp.,
Series 1994-A, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 2,700,000
12,753,000 Capital One Funding Corp.,
Series 1994-C, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 12,753,000
8,383,000 Capital One Funding Corp.,
Series 1994-D, (Bank One,
Kentucky LOC),
5.270%, 8/5/1999 8,383,000
312,000 Capital One Funding Corp.,
Series 1995-A, (Bank One,
Indiana, N.A. LOC),
5.270%, 8/5/1999 312,000
8,993,000 Capital One Funding Corp.,
Series 1995-B, (Bank One,
Kentucky LOC),
5.270%, 8/5/1999 8,993,000
19,762,000 Capital One Funding Corp.,
Series 1995-F, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 19,762,000
8,500,000 Capital One Funding Corp.,
Series 1996-H, (Bank One,
West Virginia, N.A. LOC),
5.270%, 8/5/1999 8,500,000
905,000 Carpenter, Thomas E.,
Series 1998, (Huntington
National Bank, Columbus,
OH LOC), 5.320%, 8/5/1999 905,000
9,000,000 Carport, Inc., Series
1997, (AmSouth Bank, N.A.
Birmingham LOC),
5.270%, 8/5/1999 9,000,000
4,050,000 Cattail Creek Country
Club, Series 1999,
(Allfirst LOC), 5.220%,
8/3/1999 4,050,000
3,760,000 Cleveland Sportsplex Ltd.,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 3,760,000
5,570,000 Clinton County, NY IDA,
Bombardier Project (Series
1998-B), (HSBC Bank USA
LOC), 5.300%, 8/5/1999 5,570,000
5,950,000 Cloquet, MN, Series 1996-B
Potlach Corp, (Credit
Suisse First Boston LOC),
5.300%, 8/4/1999 5,950,000
1,022,337 Clyde Manor LP,
(Huntington National Bank,
Columbus, OH LOC),
5.270%, 8/5/1999 1,022,337
490,000 Colorado Health Facilities
Authority, Development
Disabilities Center
Project, Series 1998-F1,
(Bank One, Colorado LOC),
5.370%, 8/5/1999 490,000
1,070,000 Colorado Health Facilities
Authority, Development
Disabilities Resource
Center, Series 1998-C1,
(Bank One, Colorado LOC),
5.270%, 8/5/1999 1,070,000
2,915,000 Colorado Health Facilities
Authority, Goodwill
Industries of Denver
Project,
Series 1998-G1, (Bank One,
Colorado LOC), 5.270%,
8/5/1999 2,915,000
2,805,000 Columbia County, GA
Development Authority,
Series 1993, (SunTrust
Banks, Inc. LOC), 5.200%,
8/4/1999 2,805,000
8,000,000 Commercial Contractors,
Inc., Series 1998,
(Allfirst LOC), 5.220%,
8/3/1999 8,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 7,500,000 Communications Corp. of
America, Series 1998,
(Wachovia Bank of NC, N.A.,
Winston-Salem LOC),
5.180%, 8/4/1999 $ 7,500,000
2,750,000 Cruiser Properties, LLC,
Series 1999, (Huntington
National Bank, Columbus,
OH LOC), 5.320%, 8/5/1999 2,750,000
4,800,000 Damascus Company Ltd.,
Series 1998, (Huntington
National Bank, Columbus,
OH LOC), 5.320%, 8/5/1999 4,800,000
10,000,000 David Lipscomb University,
Series 1998, (SunTrust
Bank, Nashville LOC),
5.200%, 8/4/1999 10,000,000
18,000,000 Decatur, AL IDB, Bailey-
PVS Oxides Project, Series
1998, (SunTrust Bank,
Central Florida LOC),
5.360%, 8/5/1999 18,000,000
8,510,000 Dewberry IV LP, Series
1997, (Allfirst LOC),
5.220%, 8/3/1999 8,510,000
5,490,000 Die-Matic Corp.,
(Huntington National Bank,
Columbus, OH LOC),
5.320%, 8/5/1999 5,490,000
4,305,000 Double H Plastics, Inc.,
Series 1998, (First Union
National Bank, Charlotte,
NC LOC), 5.200%, 8/4/1999 4,305,000
2,915,000 Douglas County, GA
Development Authority,
Heritage Bag Project,
Series 1998-B, (Wachovia
Bank of NC, N.A., Winston-
Salem LOC), 5.310%,
8/5/1999 2,915,000
3,700,000 Eastwinds Investment,
Ltd., (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 3,700,000
5,000,000 Fannin County IDA, Series
1998, Georgia Crown
Distributing Co. Project,
(SunTrust Bank, Atlanta
LOC), 5.200%, 8/4/1999 5,000,000
25,000,000 First Union National Bank,
Charlotte, NC, 5.370%,
8/2/1999 25,000,000
4,690,000 Foothill Development
Group, LLC, Series 1998,
(U.S. Bank, N.A.,
Minneapolis LOC), 5.270%,
8/5/1999 4,690,000
6,095,000 Fort Craig LP, (Huntington
National Bank, Columbus,
OH LOC), 5.270%, 8/5/1999 6,095,000
1,345,000 Frederick County, MD,
Thogar, LLC Facility,
Series 1998-B, (Allfirst
LOC),
5.220%, 8/3/1999 1,345,000
3,700,000 G.M.H. Enterprises, Inc.,
Series 1995, (National
City Bank, Ohio LOC),
5.190%, 8/5/1999 3,700,000
15,500,000 Galasso Materials, LLC and
Galasso Holdings, LLC,
Series 1998, (KeyBank,
N.A. LOC), 5.250%,
8/5/1999 15,500,000
2,720,000 Gerken Materials, Inc.,
Series 1995, (Huntington
National Bank, Columbus,
OH LOC), 5.270%, 8/5/1999 2,720,000
3,620,000 Gerken Materials, Inc.,
Series 1997, (Huntington
National Bank, Columbus,
OH LOC), 5.270%, 8/5/1999 3,620,000
12,590,000 Grand Aire Express, Inc.,
Series 1997, (National
City Bank, Ohio LOC),
5.160%, 8/5/1999 12,590,000
1,100,000 Great Lakes Brewing Co.,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 1,100,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 2,100,000 Grote Family LP,
(Huntington National Bank,
Columbus, OH LOC),
5.270%, 8/5/1999 $ 2,100,000
7,600,000 Gwinnett County, GA,
Newell Recycling of
Atlanta, Series 1998,
(Bank One,
Texas N.A. LOC), 5.270%,
8/5/1999 7,600,000
5,200,000 Hamilton Farm Bureau
Cooperative, Inc., Series
1999, (Huntington National
Bank, Columbus, OH LOC),
5.320%, 8/5/1999 5,200,000
5,000,000 Hazlet Manor Associates,
Series 1998, (Allfirst
LOC), 5.220%, 8/3/1999 5,000,000
10,560,000 Hunt Club Apartments,
Inc., (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 10,560,000
410,000 Illinois Development
Finance Authority, Series
1996-B, Nimlok Co.,
Project,
(Bank One, Illinois, N.A.
LOC), 5.420%, 8/5/1999 410,000
4,500,000 J.P. Plymouth Properties,
LLC, Series 1999,
(Michigan National Bank,
Farmington Hills LOC),
5.280%, 8/4/1999 4,500,000
5,100,000 J.W. Harris, Series 1999 &
2000, (Fifth Third Bank,
Cincinnati LOC),
5.200%, 8/5/1999 5,100,000
18,560,000 JFK Family Borrowing, LP,
Series 1997, (Allfirst
LOC), 5.170%, 8/3/1999 18,560,000
10,780,000 Kendall Health Care
Properties, Series 1997,
(SunTrust Bank, Miami
LOC),
5.250%, 8/4/1999 10,780,000
5,500,000 Kendall Health Care
Properties, Series 1998-A,
(SunTrust Bank, Miami
LOC), 5.250%, 8/4/1999 5,500,000
4,500,000 Kendall Health Care
Properties, Series 1998-B,
(SunTrust Bank, Miami
LOC), 5.250%, 8/4/1999 4,500,000
4,180,000 Kings Creek Country Club,
Inc., Series 1997, (First
Union National Bank,
Charlotte, NC LOC),
5.250%, 8/4/1999 4,180,000
2,400,000 L.H. Kroh, Inc., Series
1998, (First Union
National Bank, Charlotte,
NC LOC), 5.250%, 8/4/1999 2,400,000
157,000,000 Liquid Asset Backed
Securities Trust, Series
1996-3, Sr. Notes,
(Westdeutsche Landesbank
Girozentrale Swap
Agreement), 5.200%,
8/9/1999 157,000,000
40,652,810 2,3 Liquid Asset Backed
Securities Trust, Series
1997-1, Sr. Notes,
(Westdeutsche Landesbank
Girozentrale Swap
Agreement), 5.180%,
8/19/1999 40,652,810
7,960,000 Mack Industries, Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 7,960,000
6,000,000 Maples Industries, Inc.,
(Regions Bank, Alabama
LOC), 5.460%, 8/5/1999 6,000,000
23,000,000 Maryland Economic
Development Corp., Human
Genome, Series 1997,
(Allfirst LOC), 5.170%,
8/3/1999 23,000,000
4,000,000 McClatchy-Avondale Corp.,
Series 1999, (Allfirst
LOC), 5.220%, 8/3/1999 4,000,000
1,495,000 McClellan Management,
Inc., Genoa Health Care
Center Project, Series
1999, (Fifth Third Bank of
Northwestern OH LOC),
5.310%, 8/5/1999 1,495,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 6,100,000 Medford Convalescent &
Nursing Center, Series
1997, (Allfirst LOC),
5.220%, 8/3/1999 $ 6,100,000
2,934,000 Midwest Funding Corp.,
Series 1991-A, Class A-1,
(Bank One, Ohio, N.A. LOC),
5.270%, 8/5/1999 2,934,000
3,154,000 Midwest Funding Corp.,
Series 1991-C, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 3,154,000
2,642,000 Midwest Funding Corp.,
Series 1992-B, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 2,642,000
2,171,000 Midwest Funding Corp.,
Series 1992-C, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 2,171,000
4,720,000 Miller, James & Deborah,
Series 1997, (Allfirst
LOC), 5.220%, 8/3/1999 4,720,000
10,400,000 Mississippi Business
Finance Corp., Choctaw
Foods,Inc, (Rabobank
Nederland, Utrecht LOC),
5.200%, 8/4/1999 10,400,000
4,630,000 Mississippi Business
Finance Corp., Metalloy
Project, (Comerica Bank,
Detroit, MI LOC), 5.170%,
8/5/1999 4,630,000
17,000,000 Mississippi Business
Finance Corp., Series
1994, Georgia Gulf
Project, (Wachovia Bank of
NC, N.A., Winston-Salem
LOC), 5.180%, 8/4/1999 17,000,000
2,000,000 Mississippi Business
Finance Corp., Series
1995, Plantation Pointe,
LP Project, (SunTrust
Bank, Atlanta LOC),
5.310%, 8/5/1999 2,000,000
13,235,000 North Oaks Partnership,
Series 1998, (LaSalle
National Bank, Chicago
LOC), 5.250%, 8/5/1999 13,235,000
1,800,000 Nova University, Inc.
Lease Revenue Bonds,
Series 1993, Miami
Dolphins Training
Facility, (SunTrust Bank,
South Florida LOC),
5.200%, 8/4/1999 1,800,000
5,099,000 Oceana County Freezer
Storage, Inc., Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 5,099,000
1,200,000 Oceana County Freezer
Storage, Inc., Series
1999, (Huntington National
Bank, Columbus, OH LOC),
5.32%%, 8/5/1999 1,200,000
9,250,000 Ohio Solid Waste Facility,
Bailey-PVS Oxides, LLC,
Series 1998, (KeyBank,
N.A. LOC), 5.250%,
8/5/1999 9,250,000
5,500,000 Old South Country Club,
Inc., Series 1999,
(Allfirst LOC), 5.220%,
8/3/1999 5,500,000
11,500,000 One Renaissance Hamilton,
Inc., Series 1999, (Bank
One, Ohio, N.A. LOC),
5.210%, 8/5/1999 11,500,000
1,980,000 Orangeburg Convalescent
Care Center, Inc., Series
1995-A, (PNC Bank, N.A.
LOC), 5.163%, 8/2/1999 1,980,000
2,070,000 P & P Investment Co., Inc.,
Series 1998, (Fifth Third
Bank, Cincinnati LOC),
5.200%, 8/5/1999 2,070,000
1,880,000 Port Authority of Saint
Paul, MN, Bix Fruit Co.,
Series 1998-B, (U.S. Bank,
N.A., Minneapolis LOC),
5.420%, 8/5/1999 1,880,000
3,350,000 Port Authority of Saint
Paul, MN, National
Checking Co. Project,
Series 1998-B, (U.S. Bank,
N.A., Minneapolis LOC),
5.330%, 8/5/1999 3,350,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 2,500,000 Poseyville, IN, North
American Green, Inc.,
Series 1998-A, (Harris
Trust & Savings Bank,
Chicago LOC), 5.290%,
8/5/1999 $ 2,500,000
1,500,000 Poseyville, IN, North
American Green, Inc.,
Series 1998-B, (Harris
Trust & Savings Bank,
Chicago LOC), 5.290%,
8/5/1999 1,500,000
8,600,000 Primex Funding Corp.,
Series 1997-A, (Bank One,
Indiana, N.A. LOC),
5.270%, 8/5/1999 8,600,000
2,000,000 R.M.D.H. Properties LLC,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 2,000,000
28,966,695 2 Rabobank Optional
Redemption Trust, Series
1997-101, 5.310%,
10/20/1999 28,966,695
2,800,000 Roby Co. LP, (Huntington
National Bank, Columbus,
OH LOC), 5.270%, 8/5/1999 2,800,000
6,780,000 Roby Co. LP, (Huntington
National Bank, Columbus,
OH LOC), 5.270%, 8/5/1999 6,780,000
9,000,000 Rollins College, Series
1998, 5.200%, 8/4/1999 9,000,000
11,850,000 Rooker, J.W., (Wachovia
Bank of NC, N.A., Winston-
Salem LOC),
5.180%, 8/4/1999 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), 5.270%, 8/5/1999 2,600,000
3,376,000 Sawmill Creek Lodge Co.,
Series 1996, (Fifth Third
Bank of Northwestern OH
LOC), 5.200%, 8/5/1999 3,376,000
50,000 Scranton Times, LP, (PNC
Bank, N.A. LOC), 5.163%,
8/2/1999 50,000
33,000,000 Societe Generale, Paris,
5.203%, 8/2/1999 32,999,404
900,000 Solon, OH, Custom
Graphics, (Bank One, Ohio,
N.A. LOC), 5.270%,
8/5/1999 900,000
1,865,000 Souser Family LP, Series
1998, (Dauphin Deposit
Bank and Trust LOC),
5.250%, 8/4/1999 1,865,000
6,500,000 Special Care Facilities,
Daphne, AL, Presbyterian
Retirement Corp., Series
1998-B, 5.200%, 8/5/1999 6,500,000
3,037,000 Spitzer Group, Series
1996-A, (Bank One, Ohio,
N.A. LOC), 5.270%,
8/5/1999 3,037,000
1,882,000 Spitzer Group, Series
1996-B, (Bank One, Ohio,
N.A. LOC), 5.270%,
8/5/1999 1,882,000
14,000,000 Spitzer Group, Series
1998-A, (Bank One, Ohio,
N.A. LOC), 5.270%,
8/5/1999 14,000,000
10,649,000 Spitzer Group, Series
1998-B, (Bank One, Ohio,
N.A. LOC), 5.270%,
8/5/1999 10,649,000
6,150,000 Springfield Limited,
Series A, (UBS AG LOC),
5.270%, 8/5/1999 6,150,000
2,750,000 Stratford Properties, LP,
Series 1998, (Allfirst
LOC), 5.220%, 8/3/1999 2,750,000
4,525,000 TNT Co., Series 1998,
(Huntington National Bank,
Columbus, OH LOC),
5.320%, 8/5/1999 4,525,000
46,585,000 Terry Griffin Gate
Partners, Ltd., Series
1995, (Bank One, Kentucky
LOC), 5.270%, 8/4/1999 46,585,000
5,290,000 Van Dyne Crotty Co., Series
1996, (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 5,290,000
9,290,000 Van Dyne Crotty Co., Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 9,290,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 3,135,000 Van Wyk Enterprises, Inc.,
Series 1998-A, (Huntington
National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 $ 3,135,000
2,165,000 Van Wyk Enterprises, Inc.,
Series 1998-B, (Huntington
National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 2,165,000
425,000 Van Wyk Enterprises, Inc.,
Series 1998-C, (Huntington
National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 425,000
3,575,000 Van Wyk Enterprises, Inc.,
Series 1998-D, (Huntington
National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 3,575,000
645,000 Van Wyk Enterprises, Inc.,
Series 1998-E, (Huntington
National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 645,000
815,000 Van Wyk Enterprises, Inc.,
Series 1998-F, (Huntington
National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 815,000
1,000,000 Van Wyk, Bruce M., Series
1998, (Huntington National
Bank, Columbus, OH LOC),
5.270%, 8/5/1999 1,000,000
2,432,000 Vista Funding Corp., (Bank
One, Ohio, N.A. LOC),
5.270%, 8/5/1999 2,432,000
2,423,000 Vista Funding Corp.,
Series 1994-A, (Fifth
Third Bank of Northwestern
OH LOC), 5.270%, 8/5/1999 2,423,000
1,221,000 Vista Funding Corp.,
Series 1995-B, (Fifth
Third Bank of Northwestern
OH LOC), 5.270%, 8/5/1999 1,221,000
9,225,000 Vista Funding Corp.,
Series 1995-D, (Fifth
Third Bank of Northwestern
OH LOC), 5.270%, 8/5/1999 9,225,000
5,794,000 Vista Funding Corp.,
Series 1995-E, (Bank One,
Ohio, N.A. LOC),
5.270%, 8/5/1999 5,794,000
7,111,000 Vista Funding Corp.,
Series 1998-B, (Fifth
Third Bank of Northwestern
OH LOC), 5.210%, 8/5/1999 7,111,000
4,530,000 Vulcan, Inc., (AmSouth
Bank, N.A. Birmingham
LOC), 5.270%, 8/5/1999 4,530,000
971,431 Wauseon Manor II LP,
(Huntington National Bank,
Columbus, OH LOC),
5.270%, 8/5/1999 971,431
2,840,000 Wexner Heritage House,
(Huntington National Bank,
Columbus, OH LOC), 5.270%,
8/5/1999 2,840,000
13,400,000 Whetstone Care Center,
LLC, Series 1998, (Fifth
Third Bank, Cincinnati
LOC), 5.340%, 8/5/1999 13,400,000
3,000,000 White Bear Lake, MN, Series
1993, (Norwest Bank
Minnesota, N.A. LOC),
5.560%, 8/5/1999 3,000,000
15,000,000 Willacoochee, City of,
Development Authority,
Longboard, Inc. Project,
Series 1997, (Wachovia
Bank of NC, N.A., Winston-
Salem LOC), 5.180%,
8/4/1999 15,000,000
16,235,000 William Hill Manor, Inc.,
Series 1998, (Allfirst
LOC), 5.170%, 8/3/1999 16,235,000
9,645,000 Willow Hill Industries,
(Huntington National Bank,
Columbus, OH LOC),
5.270%, 8/5/1999 9,645,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
BANKING-CONTINUED
$ 9,000,000 Wilsbach Distributors,
Inc., Series 1999,
(Allfirst LOC), 5.250%,
8/4/1999 $ 9,000,000
2,175,000 YMCA of Central, OH,
(Huntington National Bank,
Columbus, OH LOC),
5.270%, 8/5/1999 2,175,000
TOTAL 1,215,629,467
BROKERAGE-2.9%
133,500,000 Morgan Stanley, Dean
Witter & Co., 5.370%,
8/2/1999 133,500,000
133,500,000 Morgan Stanley, Dean
Witter & Co., 5.420%,
8/2/1999 133,500,000
TOTAL 267,000,000
ELECTRICAL EQUIPMENT-0.7%
65,786,454 Northwest Airlines, Inc.,
(General Electric Co.
GTD), 5.163%, 8/2/1999 65,786,454
FINANCE - AUTOMOTIVE-2.5%
138,500,000 General Motors Acceptance
Corp., 5.37%, 8/2/1999 138,500,000
100,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(General Motors Acceptance
Corp. GTD), 5.370%,
8/2/1999 99,104,256
TOTAL 237,604,256
FINANCE - COMMERCIAL-1.8%
50,000,000 2 Beta Finance, Inc.,
5.390%, 8/2/1999 50,000,000
120,000,000 Sigma Finance, Inc.,
5.190%, 10/13/1999 120,000,000
TOTAL 170,000,000
FINANCE - RETAIL-0.3%
27,300,000 2 Bishop's Gate Residential
Mortgage Trust 1998-2,
Class A-1, 5.420%,
8/1/1999 27,300,000
INSURANCE-10.1%
38,000,000 Allstate Life Insurance
Co., (16060,16061,16062),
5.075%, 9/1/1999 38,000,000
46,000,000 Allstate Life Insurance
Co., 5.370%, 8/1/1999 46,000,000
128,000,000 Aspen Funding Corp., (MBIA
INS), 5.230%, 8/15/1999 128,000,000
35,500,000 First Allmerica Financial
Life Insurance Co.,
5.140%, 11/3/1999 35,500,000
50,000,000 First Allmerica Financial
Life Insurance Co.,
5.390%, 10/16/1999 50,000,000
40,000,000 GE Life and Annuity
Assurance Co., 5.141%,
9/1/1999 40,000,000
14,000,000 Jackson National Life
Insurance Co., (F 1131-4, F
1132-4), 5.400%,
10/30/1999 14,000,000
86,000,000 Jackson National Life
Insurance Co., 5.120%,
8/23/1999 86,000,000
58,600,000 Jackson National Life
Insurance Co., 5.460%,
10/1/1999 58,600,000
45,926,724 2,3 Liquid Asset Backed
Securities Trust, Series
1997-3, Sr. Notes, (AMBAC
GTD), 5.298%, 9/27/1999 45,926,724
31,649,028 2,3 Liquid Asset Backed
Securities Trust, Series
1998-1, Sr. Notes, (AMBAC
GTD), 5.164%, 8/26/1999 31,649,028
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VARIABLE RATE INSTRUMENTS-
continued 4
INSURANCE-CONTINUED
$ 35,000,000 Monumental Life Insurance
Co., 154 & 155, 5.290%,
8/2/1999 $ 35,000,000
32,000,000 Monumental Life Insurance
Co., 5.390%, 8/2/1999 32,000,000
75,000,000 Principal Life Insurance
Co., 5.200%, 9/1/1999 75,000,000
49,000,000 Protective Life Insurance
Co., 5.145%, 11/2/1999 49,000,000
15,000,000 Security Life of Denver
Insurance Co., 5.371%,
10/28/1999 15,000,000
10,000,000 SunAmerica Life Insurance
Co., 5.280%, 8/2/1999 10,000,000
70,000,000 Transamerica Life
Insurance and Annuity Co.,
5.399%, 10/1/1999 70,000,000
30,000,000 Transamerica Life
Insurance and Annuity Co.,
5.439%, 11/1/1999 30,000,000
20,000,000 Transamerica Occidental
Life Insurance Co.,
5.599%, 10/1/1999 20,000,000
44,000,000 Travelers Insurance
Company, 5.393%, 10/1/1999 44,000,000
TOTAL 953,675,752
TOTAL VARIABLE RATE
INSTRUMENTS 2,936,995,929
TIME DEPOSITS-14.6%
150,000,000 Chase Manhattan Bank (USA)
N.A., Wilmington, 5.125%,
8/2/1999 150,000,000
100,000,000 Deutsche Bank, AG, 5.125%,
8/2/1999 100,000,000
325,000,000 Dresdner Bank AG,
Frankfurt, 5.125%,
8/2/1999 325,000,000
75,000,000 Mellon Bank N.A.,
Pittsburgh, 5.125%,
8/2/1999 75,000,000
150,000,000 Societe Generale, Paris,
5.125%, 8/2/1999 150,000,000
150,000,000 SunTrust Bank, Atlanta,
5.125%, 8/2/1999 150,000,000
300,000,000 UBS AG, 5.063%, 8/2/1999 300,000,000
125,000,000 Westdeutsche Landesbank
Girozentrale, 5.125%,
8/2/1999 125,000,000
TOTAL TIME DEPOSITS 1,375,000,000
REPURCHASE AGREEMENTS-9.1%
5
200,600,000 Bank of America, 5.130%,
dated 7/30/1999, due
8/2/1999 200,600,000
992,000 Bear, Stearns and Co.,
5.130%, dated 7/30/1999,
due 8/2/1999 992,000
97,682,000 Goldman Sachs Group, LP,
5.130%, dated 7/30/1999,
due 8/2/1999 97,682,000
100,000,000 Morgan Stanley Group,
Inc., 5.100%, dated
7/30/1999, due 8/2/1999 100,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-
continued 5
$ 152,500,000 Societe Generale
Securities Corp., 5.070%,
dated 7/30/1999, due
8/2/1999 $ 152,500,000
250,000,000 Toronto Dominion
Securities (USA), Inc.,
5.070%, dated 7/30/1999,
due 8/2/1999 250,000,000
50,000,000 Warburg Dillon Reed LLC,
5.030%, dated 7/30/1999,
due 8/2/1999 50,000,000
TOTAL REPURCHASE
AGREEMENTS 851,774,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 6 $ 9,380,649,757
</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 July 31, 1999, these securities amounted to
$224,495,257 which represents 2.4% of net assets. Included in these amounts,
securities which have been deemed liquid amounted to $118,228,562 which
represents 1.3% of net assets.
3 Denotes a restricted security that has been deemed liquid by criteria approved
by the fund's Board of Trustees.
4 Current rate and next reset date shown.
5 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.
6 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($9,400,957,454) at July 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation FSA -Financial Security
Assurance GTD -Guaranteed IDA -Industrial Development Authority IDB -Industrial
Development Bond INS -Insured LOC -Letter of Credit MBIA -Municipal Bond
Investors Assurance SA -Support Agreement
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JULY 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 9,380,649,757
Income receivable 48,204,680
Receivable for shares sold 4,160,685
TOTAL ASSETS 9,433,015,122
LIABILITIES:
Payable for shares
redeemed $ 2,829,944
Income distribution
payable 24,419,767
Payable to Bank 3,787,037
Accrued expenses 1,020,920
TOTAL LIABILITIES 32,057,668
Net assets for
9,400,957,454 shares
outstanding $ 9,400,957,454
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$5,185,447,721 /
5,185,447,721 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$4,215,509,733 /
4,215,509,733 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 473,907,758
EXPENSES:
Investment advisory fee $ 18,192,962
Administrative personnel
and services fee 6,858,747
Custodian fees 633,010
Transfer and dividend
disbursing agent fees and
expenses 428,822
Directors'/Trustees' fees 54,498
Auditing fees 12,810
Legal fees 58,584
Portfolio accounting fees 643,285
Shareholder services fee-
Institutional Shares 13,391,096
Shareholder services fee-
Institutional Service
Shares 9,353,421
Share registration costs 53,724
Printing and postage 56,187
Insurance premiums 920,445
Miscellaneous 58,459
TOTAL EXPENSES 50,716,050
WAIVERS:
Waiver of investment
advisory fee $ (9,378,326)
Waiver of shareholder
services fee-Institutional
Shares (13,391,096)
TOTAL WAIVERS (22,769,422)
Net expenses 27,946,628
Net investment income $ 445,961,130
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 445,961,130 $ 385,514,759
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (266,999,113) (219,104,923)
Institutional Service
Shares (178,962,017) (166,409,836)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (445,961,130) (385,514,759)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 123,404,105,177 81,194,972,477
Net asset value of shares
issued to shareholders in
payment of distributions
declared 125,920,596 107,652,252
Cost of shares redeemed (121,577,629,746) (79,679,142,681)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 1,952,396,027 1,623,482,048
Change in net assets 1,952,396,027 1,623,482,048
NET ASSETS:
Beginning of period 7,448,561,427 5,825,079,379
End of period $ 9,400,957,454 $ 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>
YEAR ENDED JULY 31 1999 1998 1997 1996 1995
<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 0.05 0.05 0.05 0.05 0.06
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05) (0.06)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 5.14% 5.64% 5.45% 5.58% 5.65%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.55% 0.55% 0.56% 0.56% 0.58%
Net investment income 2 4.64% 5.16% 4.99% 5.07% 5.22%
Expenses (after waivers) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income (after waivers) 4.99% 5.51% 5.35 5.43 5.60%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $5,185,448 $3,980,339 $3,588,082 $3,032,602 $2,457,797
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
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>
YEAR ENDED JULY 31 1999 1998 1997 1996 1995
<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 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 4.88% 5.37% 5.19% 5.32% 5.38%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.55% 0.55% 0.56% 0.56% 0.58%
Net investment income 2 4.67% 5.14% 5.00% 5.02% 5.53%
Expenses (after waivers) 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income (after waivers) 4.77% 5.24% 5.11% 5.13% 5.66%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $4,215,510 $3,468,222 $2,236,997 $1,297,019 $500,954
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JULY 31, 1999
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 14 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.
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 illiquid restricted security held at July 31,
1999 is as follows:
<TABLE>
<CAPTION>
SECURITY ACQUISITION DATE ACQUISITION COST
<S> <C> <C>
Beta Finance, Inc. 10/16/1998 $50,000,000
Bishop's Gate Residential
Mortgage Trust 1998-2,
Class A-1 12/4/1998 27,300,000
Rabobank Optional
Redemption Trust, Series
1997-101 4/17/1997 28,966,695
</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 July 31, 1999, capital paid-in aggregated $9,400,957,454.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 95,897,980,619 55,022,265,485
Shares issued to
shareholders in payment of
distributions declared 77,869,797 69,275,080
Shares redeemed (94,770,741,882) (54,699,283,688)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 1,205,108,534 392,256,877
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 27,506,124,558 26,172,706,992
Shares issued to
shareholders in payment of
distributions declared 48,050,799 38,377,172
Shares redeemed (26,806,887,864) (24,979,858,993)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 747,287,493 1,231,225,171
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 1,952,396,027 1,623,482,048
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.20% 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 (UNAUDITED)
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.
CHANGE OF INDEPENDENT AUDITORS
On May 19, 1999, the Trust's Trustees, upon the recommendation of the Audit
Committee of the Board of Trustees, requested and subsequently accepted the
resignation of Arthur Andersen LLP ("AA") as the Trust's independent auditors.
AA's reports on the Trust's financial statements for the fiscal years ended July
31, 1998 and July 31, 1999 contained no adverse opinion or disclaimer of opinion
nor were they qualified or modified as to uncertainty, audit scope or accounting
principles. During the Trust's fiscal years ended July 31, 1998, and July 31,
1999, (i) there were no disagreements with AA on any matter of accounting
principles or practices, financial statement disclosures or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of AA, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports on the financial statements for such years; and (ii)
there were no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Act of 1934, as amended.
The Trust, by action of its Board of Trustees, upon the recommendation of the
Audit Committee of the Board, has engaged Deloitte & Touche LLP ("D&T") as the
independent auditors to audit the Trust's financial statements for the fiscal
year ending July 31, 2000. During the Trust's fiscal years ended July 31, 1998,
and July 31, 1999, neither the Trust nor anyone on its behalf has consulted D&T
on items which (i) concerned the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Trust's financial statements or (ii)
concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Item 304 of Regulation S-K) of reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Report of Independent Public Accountants
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
PRIME OBLIGATIONS FUND:
We have audited the accompanying statement of assets and liabilities of Prime
Obligations Fund (an investment portfolio of Money Market Obligations Trust, a
Massachusetts business trust), including the portfolio of investments, as of
July 31, 1999, the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based upon our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1999, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Prime
Obligations Fund (an investment portfolio of Money Market Obligations Trust) as
of July 31, 1999, and the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for the periods presented, in conformity with
generally accepted accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
September 28, 1999
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
JOHN F. CUNNINGHAM
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
WILLIAM D. DAWSON, III
Chief Investment Officer
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
ANNUAL REPORT
Prime Obligations Fund
ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1999
[Graphic]
Federated
Prime Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N203
Cusip 60934N708
G00645-06 (9/99)
[Graphic]
ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders of Tax-Free
Obligations Fund, a portfolio of Money Market Obligations Trust, which covers
the 12-month period from August 1, 1998 through July 31, 1999. The report begins
with an investment review by the fund's portfolio manager on the short-term
tax-free market. Following the investment review are the fund's portfolio of
municipal bond investments and its 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 12-month reporting period, tax-free dividends paid to shareholders of
the fund's Institutional Shares and Institutional Service Shares each totaled
$0.03 per share.
The 7-day and 30-day net yields for Institutional Shares on the last day of the
reporting period were 3.00% and 2.92%, respectively. 3 These are equivalent to
taxable yields of 4.35%, 4.69% and 4.97%, respectively, and 4.23%, 4.56% and
4.83%, respectively, for investors in the 31.0%, 36.0% and 39.6% federal tax
brackets.
The 7-day and 30-day net yields for Institutional Service Shares on the last day
of the reporting period were 2.75% and 2.67%, respectively. 3 These are
equivalent to taxable yields of 3.99%, 4.30% and 4.55%, respectively, and 3.87%,
4.17% and 4.42%, respectively, for investors in the 31.0%, 36.0% and 39.6%
federal tax brackets.
At the end of the reporting period, net assets in the fund totaled $3.5 billion.
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
September 15, 1999
1 Income may be subject to the federal alternative minimum tax and state and
local taxes.
2 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
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 per share.
The fund is rated AAA by Fitch IBCA ("Fitch"). 1 During the 12-month reporting
period ended July 31, 1999, the net assets of the fund increased from $3.2
billion to $3.5 billion, while the 7-day net yield for Institutional Shares
decreased from 3.47% to 3.00%.2 The effective average maturity of the fund on
July 31, 1999, was 47 days.
The direction of short-term tax-exempt money market rates is highly influenced
by the actions of the Federal Reserve Board (the "Fed") as well as market
perceptions regarding future actions by the Fed. Presently the Fed is very
concerned that a robust domestic economy and tight labor markets could
eventually lead to inflation. Despite a high number for the consumer price index
("CPI") in April, inflation actually fell in the past year. The CPI, excluding
food and energy, slowed from 2.50% in 1998 to annualized changes of 1.70% during
the first seven months of 1999. Although there were few signs of accelerating
inflation, the Fed chose to act preemptively to quell any inflationary threats
and raised the federal fund target rate from 4.75% to 5.00% on June 30, 1999.
This erased a portion of the three consecutive 25 basis point rate cuts
engineered in the fall of 1998 to quell liquidity fears in the marketplace.
These three consecutive cuts took place in September, October and November. The
money markets had already anticipated the most recent Fed action resulting in a
much steeper money market curve from the month of April 1999. Thirty-day
commercial paper started the reporting period at 5.56% on August 1, 1998,
declined to as low as 4.80% in mid-January and then basically traded steadily up
to the 5.11% level through the end of July.
In addition to the economic fundamentals and Fed policy, short-term municipal
securities were strongly influenced by technical factors over the reporting
period, notably the summer note season, calendar year-end and April income tax
payment season. Variable rate demand notes ("VRDNs"), which comprise more than
50% of the fund's assets, started the reporting period in the 3.50% range,
declined to as low as 2.20% in mid-February, and then rose steadily to 3.60% in
June before retreating back to the 3.20% level to end the reporting period.
The fund's structure was barbelled with a significant position in 7-day VRDNs
combined with purchases of municipal notes of six- to 12-month maturities. For
the near term, the average maturity is targeted in a neutral range between 40-55
days. The fund will continue to maximize performance through ongoing relative
value analysis. Relative value analysis includes the comparison of the richness
or cheapness of municipal securities to one another as well as municipal
securities to taxable instruments, such as treasury securities. This portfolio
should continue to provide a competitive yield over time.
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. Ratings are subject to change
and do not remove market risks.
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. During the 12-month reporting period ended
July 31, 1999, the 7-day net yield of the Institutional Service Shares decreased
from 3.21% to 2.75%.
Shareholder Meeting Results
A Special Meeting of Shareholders of Tax-Free Obligations Fund was held on June
24, 1999. On April 26, 1999, the record date for shareholders voting at the
meeting, there were 3,279,401,519 total outstanding shares. The following items
were considered by shareholders and the results of their voting were as follows:
AGENDA ITEM 1
Election of Trustees: 1
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
John F. Cunningham 1,814,671,223 637,266
Charles F. Mansfield, Jr. 1,814,671,223 637,266
John S. Walsh 1,814,671,223 637,266
</TABLE>
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D.,
Peter E. Madden, John E. Murray, Jr. and Marjorie P. Smuts.
AGENDA ITEM 2
Ratification of the selection of Arthur Andersen LLP as the trust's independent
auditors:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,807,796,690 203,293 7,308,506
</TABLE>
AGENDA ITEM 3
To make changes to the fund's fundamental investment policies:
(a) To amend the fund's fundamental investment policy regarding diversification:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,758,656,111 25,812,420 30,839,958
</TABLE>
(b) To amend the fund's fundamental investment policy regarding borrowing money
and issuing senior securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,726,972,655 57,060,335 31,275,499
</TABLE>
(c) To amend the fund's fundamental investment policy regarding investing in
real estate:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,755,250,540 29,391,799 30,666,150
</TABLE>
(d) To amend the fund's fundamental investment policy regarding investing in
commodities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,726,010,192 58,632,147 30,666,150
</TABLE>
(e) To amend the fund's fundamental investment policy regarding underwriting
securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,757,590,553 26,759,158 30,958,778
</TABLE>
(f) To amend the fund's fundamental investment policy regarding lending assets:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,727,553,456 57,278,470 30,476,563
</TABLE>
(g) To amend the fund's fundamental investment policy regarding concentration of
the fund's investments in the securities of companies in the same industry:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,719,104,358 63,414,378 32,789,753
</TABLE>
(h) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding pledging assets:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,722,887,197 61,636,634 30,784,658
</TABLE>
(i) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding buying securities on margin:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,722,225,046 62,408,609 30,674,834
</TABLE>
AGENDA ITEM 4
To eliminate certain of the fund's fundamental investment policies:
(a) To remove the fund's fundamental investment policy regarding selling
securities short:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,709,124,341 75,375,149 30,808,999
</TABLE>
(b) To remove the fund's fundamental investment policy regarding investing in
restricted securities:
<TABLE>
<CAPTION>
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
<S> <C> <C>
1,719,747,984 64,626,219 30,934,286
</TABLE>
Portfolio of Investments
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
101.0% 1
ALABAMA--4.5%
$ 3,705,000 Alabama HFA, (Series 1995
E) Weekly VRDNs (Royal
Gardens Apartments
Project)/(SouthTrust Bank
of Alabama, Birmingham, AL
LOC) $ 3,705,000
2,570,000 Alabama State Docks
Department, 5.25% Bonds
(MBIA INS), 10/1/1999 2,578,802
4,440,000 Birmingham, AL IDA,
Revenue Refunding Bonds
Weekly VRDNs (S.P. Hotel
Co.)/(AmSouth Bank N.A.,
Birmingham, AL 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, AL
LOC) 3,500,000
7,800,000 Columbia, AL IDB, (Series
1999 C) Daily VRDNs
(Alabama Power Co.) 7,800,000
1,000,000 Decatur, AL IDB, Revenue
Refunding Bonds (Series
1993) Weekly VRDNs
(Allied-Signal, Inc.) 1,000,000
3,300,000 Homewood, AL IDA Weekly
VRDNs (Mountain Brook Inn
(Homewood, AL))/
(SouthTrust Bank of
Alabama, Birmingham LOC) 3,300,000
30,000,000 Hoover, AL Board of
Education, (Series 1999
C), 3.80% BANs, 8/1/2000 30,000,000
4,000,000 Hoover, AL Board of
Education, Warrant
Anticipation Notes (Series
1999), 3.20% BANs,
8/2/1999 4,000,000
30,000,000 Jefferson County, AL,
(Series A), 3.45% Warrants
(Bayerische Landesbank
Girozentrale LOC),
10/1/1999 30,000,000
3,500,000 Jefferson County, AL, GO
Warrants (Series 1996)
Weekly VRDNs (Bayerische
Landesbank Girozentrale
LOC) 3,500,000
1,965,000 Madison, AL IDA, (Series A)
Weekly VRDNs (Executive
Inn)/(AmSouth Bank, N.A.,
Birmingham, AL LOC) 1,965,000
6,520,000 Marshall County, AL,
Special Obligation School
Refunding Warrant (Series
1994) Weekly VRDNs
(Marshall County, AL Board
of Education)/(Regions
Bank, AL LOC) 6,520,000
2,500,000 Mobile, AL IDA Weekly VRDNs
(McRae's Industries,
Inc.)/(Nationsbank, N.A.,
Charlotte, NC LOC) 2,500,000
10,000,000 Mobile, AL IDB, PCR (Series
1993 B) Weekly VRDNs
(Alabama Power Co. GTD) 10,000,000
1,000,000 Mobile, AL IDB, Pollution
Control Refunding Revenue
Bonds, (Series 1992)
Weekly VRDNs (Air Products
& Chemicals, Inc.) 1,000,000
29,000,000 Mobile, AL Port City
Medical Clinic Board,
(Series 1998 A), 3.25% CP
(Mobile, AL Infirmary
Association)/(AMBAC
INS)/(Rabobank Nederland,
Utrecht LIQ), Mandatory
Tender 8/2/1999 29,000,000
11,000,000 Mobile, AL Port City
Medical Clinic Board,
(Series 1998 A), 3.40% CP
(Mobile, AL Infirmary
Association)/(AMBAC
INS)/(Rabobank Nederland,
Utrecht LIQ), Mandatory
Tender 8/10/1999 11,000,000
200,000 Montgomery, AL IDB,
(Series 1988 A) Weekly
VRDNs (Smith
Industries)/(SunTrust
Bank, Atlanta, GA LOC) 200,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
ALABAMA--CONTINUED
$ 430,000 Tuscaloosa, AL IDB,
Revenue Refunding Bonds
(Series 1994) Weekly VRDNs
(Harco, Inc.)/(AmSouth
Bank, N.A., Birmingham, AL
LOC) $ 430,000
3,000,000 Vincent, AL IDB Weekly
VRDNs (Headquarters
Partnership
Project)/(National
Australia Bank, Ltd.,
Melbourne LOC) 3,000,000
TOTAL 159,438,802
ALASKA--0.3%
7,205,000 2 Alaska State Housing
Finance Corp., (PT-202),
3.25% TOBs (Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
3/11/2000 7,205,000
4,185,000 Alaska State Housing
Finance Corp., Variable
Rate Certificates (Series
F) Weekly VRDNs (Bank of
America NT and SA, San
Francisco, CA LIQ) 4,185,000
TOTAL 11,390,000
ARIZONA--1.0%
2,000,000 Apache County, AZ IDA,
(Series 1983 A) Weekly
VRDNs (Tucson Electric
Power Co.)/(Toronto-
Dominion Bank LOC) 2,000,000
1,900,000 Arizona Health Facilities
Authority Weekly VRDNs
(University Physicians,
Inc.)/(Bank One, AZ N.A.
LOC) 1,900,000
5,700,000 Arizona Health Facilities Authority, Pooled Loan Program
Revenue Bonds (Series 1985 B) Weekly VRDNs (FGIC INS)/(Chase
Manhattan Bank N.A., NY
LIQ) 5,700,000
5,000,000 Chandler, AZ IDA Weekly
VRDNs (SMP II LP)/(Bank
One, AZ N.A. LOC) 5,000,000
3,440,000 Gila County, AZ IDA Weekly
VRDNs (Cobre Valley
Hospital)/(Bank One, AZ
N.A. LOC) 3,440,000
3,030,000 Glendale, AZ IDA, Variable
Rate Senior Living
Facilities Revenue Bonds
Weekly VRDNs (Friendship
Retirement Corp.)/(Norwest
Bank, MN, N.A. LOC) 3,030,000
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
3,200,000 Phoenix, AZ IDA, (Series
1984) Weekly VRDNs (Del Mar
Terrace Apartments)/(Bank
of America NT and SA, San
Francisco, CA LOC) 3,200,000
1,700,000 Pima County, AZ IDA Weekly
VRDNs (Tucson Electric
Power Co.)/(Toronto-
Dominion Bank LOC) 1,700,000
7,560,000 Tolleson, AZ Municipal
Finance Corp., Revenue
Refunding Bonds (Series
1998) Weekly VRDNs
(Citizens Utilities Co.) 7,560,000
1,800,000 Yavapai, AZ IDA, (Series
1997 B) Weekly VRDNs
(Yavapai Regional Medical
Center)/(FSA INS)/(Credit
Local de France LIQ) 1,800,000
TOTAL 36,830,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
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--2.8%
885,000 2 California Community College Financing Authority, Trust
Receipts (Series 1998 FR/RI-A24), 3.35% TOBs (FSA INS),
Mandatory Tender 9/30/1999 885,000
77,370,000 California Public Capital
Improvements Financing
Authority, Trust Receipts
(Series 1996 FR-3) Weekly
VRDNs (MBIA INS)/(Bank of
New York, NY LIQ) 77,370,000
3,680,000 2 California Statewide
Communities Development
Authority, Trust Receipts
(Series FR/RI-A23), 3.35%
TOBs (FSA INS)/(Bank of New
York, NY LIQ), Mandatory
Tender 9/30/1999 3,680,000
9,925,000 2 San Diego, CA Area Local
Governments, Trust
Receipts (Series FR/RI-
A25), 3.30% TOBs,
Mandatory Tender 9/30/1999 9,925,000
7,000,000 Stanislaus County, CA
Office of Education, 4.00%
TRANs, 8/1/2000 7,035,001
TOTAL 98,895,001
COLORADO--1.6%
3,785,000 Colorado Health Facilities
Authority, (Series 1998 C-
1) Weekly VRDNs
(Developmental
Disabilities Center)/(Bank
One, CO LOC) 3,785,000
2,475,000 Denver (City & County), CO,
3.60% TOBs (Blake Street
Compendium)/(Norwest Bank
MN, N.A. LOC), Mandatory
Tender 12/15/1999 2,475,000
14,660,000 Denver (City & County), CO,
MERLOTs (Series 1997 E)
Weekly VRDNs (Department
of Aviation Airport
System)/(MBIA INS)/(First
Union National Bank,
Charlotte, NC LIQ) 14,660,000
19,000,000 Denver (City & County), CO,
Trust Reciepts, (Series
1998 FR/RI-13) Weekly
VRDNs (MBIA INS)/(Bank of
New York, NY LIQ) 19,000,000
7,040,000 Denver (City & County), CO,
Airport Authority, Morgan
Stanley Floater
Certificates (Series 1998-
137) Weekly VRDNs (MBIA
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 7,040,000
9,725,000 2 Eagle County School
District No. RE50J, CO,
(PT-1155), 3.30% TOBs
(FGIC INS)/(Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
5/18/2000 9,725,000
TOTAL 56,685,000
CONNECTICUT--2.3%
9,700,000 Connecticut State HEFA,
(Series 1999 U-1) Weekly
VRDNs (Yale University) 9,700,000
59,200,000 Connecticut State HEFA,
(Series 1999 U-2) Weekly
VRDNs (Yale University) 59,200,000
2,000,000 Connecticut State HEFA,
(Series B) Weekly VRDNs
(Edgehill)/(Paribas,
Paris LOC) 2,000,000
4,500,000 Connecticut State HEFA,
(Series H) Weekly VRDNs
(Stamford Hospital)/(MBIA
INS)/(Chase Manhattan
Bank, N.A., NY LIQ) 4,500,000
4,000,000 2 Connecticut State HFA,
Variable Rate Certificates (Series 1998 S), 3.50% TOBs (Bank of
America NT and SA, San Francisco, CA LIQ),
Optional Tender 8/20/1999 4,000,000
TOTAL 79,400,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
DISTRICT OF COLUMBIA--1.2%
$ 2,070,000 District of Columbia
Housing Finance Agency,
Multifamily Housing, 3.50%
TOBs (Chastleton
Project)/(Nationsbank,
N.A., Charlotte, NC LOC),
Optional Tender 7/1/2000 $ 2,070,000
10,090,000 District of Columbia,
(Series 1999) Weekly VRDNs
(Association of American
Medical Colleges)/(AMBAC
INS)/(Nationsbank, N.A.,
Charlotte, NC LIQ) 10,090,000
6,300,000 District of Columbia,
(Series 1999) Weekly VRDNs
(Young Men's Christian
Association of
Metropolitan
Washington)/(Allfirst LOC) 6,300,000
10,835,000 District of Columbia,
(Series 1999 C) Weekly
VRDNs (National Academy of
Sciences)/(AMBAC
INS)/(Nationsbank, N.A.,
Charlotte, NC LIQ) 10,835,000
8,450,000 District of Columbia,
(Series A) Weekly VRDNs
(American
University)/(National
Westminster Bank, PLC,
London LOC) 8,450,000
3,575,000 District of Columbia,
Revenue Bonds (Series 1997
B) Weekly VRDNs
(Association of American
Medical Colleges)/(AMBAC
INS)/(Chase Manhattan
Bank, N.A., NY LIQ) 3,575,000
TOTAL 41,320,000
FLORIDA--8.6%
2,950,000 Brevard County, FL Weekly
VRDNs (Greywater
Investments II
Ltd.)/(Huntington National
Bank, Columbus, OH LOC) 2,950,000
550,000 Brevard County, FL,
(Series 1997) Weekly VRDNs
(Greywater Investments II
Ltd.)/(Huntington National
Bank, Columbus, OH LOC) 550,000
6,600,000 Broward County, FL HFA,
(Series 1997) Weekly VRDNs
(Jacaranda Village
Apartments)/(HSBC Bank USA
LOC) 6,600,000
2,710,000 Broward County, FL Health
Facility Authority,
Revenue Bonds Weekly VRDNs
(John Knox Village of
Florida)/(First Union
National Bank, Charlotte,
NC LOC) 2,710,000
4,163,000 Broward County, FL,
(Series A), 3.45% CP
(Credit Local de France
LIQ), Mandatory Tender
10/12/1999 4,163,000
3,670,000 Dade County, FL IDA Weekly
VRDNs (Futernick
Associates, Inc.)/(First
Union National Bank,
Charlotte, NC LOC) 3,670,000
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
1,400,000 Florida HFA, (Series 1989
E) Weekly VRDNs (Fairmont
Oaks Project)/(Comerica
Bank, Detroit, MI LOC) 1,400,000
7,000,000 Florida HFA, Multifamily
Housing Revenue Bonds
(Series 1985 SS) Weekly
VRDNs (Woodlands
Apartments)/(Northern
Trust Co., Chicago, IL LOC) 7,000,000
5,645,000 Florida Housing Finance
Corp., MERLOTs (Series
1998 B) Weekly VRDNs (MBIA
INS)/(First Union National
Bank, Charlotte, NC LIQ) 5,645,000
5,120,000 Florida State Board of
Education Administration, (CR55), (Series 1989 A), 3.00% TOBs
(Citibank, N.A., NY LIQ), Optional
Tender 9/1/1999 5,120,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
FLORIDA--CONTINUED
$ 5,000,000 Florida State Department
of Environmental
Protection, (Series 1998A
PA-414) Weekly VRDNs (FSA
INS)/(Merrill Lynch
Capital Services, Inc.
LIQ) $ 5,000,000
3,285,000 Fort Lauderdale, FL
Performing Arts Center
Authority Weekly VRDNs
(SunTrust Bank, Central
Florida LOC) 3,285,000
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
5,315,000 Gulf Breeze, FL, Variable
Rate Demand Revenue Bonds
(Series 1995 A) Weekly
VRDNs (Florida Municipal
Bond Fund)/(Nationsbank,
N.A., Charlotte, NC LOC) 5,315,000
46,200,000 Highlands County, FL
Health Facilities, (Series
1996 A) Weekly VRDNs
(Adventist Health
System)/(MBIA INS)/(First
National Bank of Chicago
LIQ) 46,200,000
14,500,000 Highlands County, FL
Health Facilities, (Series
1996 B) Weekly VRDNs
(Adventist Health
System)/(MBIA
INS)/(Canadian Imperial
Bank of Commerce LIQ) 14,500,000
42,920,000 Highlands County, FL
Health Facilities,
Variable Rate Demand
Revenue Bonds (Series 1996
A) Weekly VRDNs (Adventist
Health System)/(SunTrust
Bank, Central Florida LOC) 42,920,000
27,000,000 Highlands County, FL
Health Facilities,
Variable Rate Demand
Revenue Bonds (Series 1997
A) Weekly VRDNs (Adventist
Health System)/(SunTrust
Bank, Central Florida LOC) 27,000,000
1,000,000 Hillsborough County, FL
IDA, (Series 1988) Weekly
VRDNs (Florida Steel
Corp.)/(Nationsbank, N.A.,
Charlotte, NC LOC) 1,000,000
7,570,000 Jacksonville
Transportation Authority,
(PA-146) Weekly VRDNs
(Florida State)/(Merrill
Lynch Capital Services,
Inc. LIQ) 7,570,000
1,800,000 Jacksonville, FL HFDC,
Health Facilities Revenue
Bonds (Series 1996) Weekly
VRDNs (Jacksonville
Faculty Practice
Association
Project)/(Nationsbank,
N.A., Charlotte, NC LOC) 1,800,000
5,555,000 Manatee County, FL HFA Weekly VRDNs (Carriage Club)/(Mellon
Bank N.A.,
Pittsburgh, PA LOC) 5,555,000
6,025,000 Manatee County, FL HFA,
Weekly Adjustable/Fixed
Rate Multifamily Housing
Revenue Refunding Bonds
(Series 1990 A) Weekly
VRDNs (Harbour
Pointe)/(HSBC Bank USA
LOC) 6,025,000
4,400,000 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, FL LOC) 4,400,000
8,000,000 Mount Dora, FL Health
Facility Authority,
(Series 1996 A) Weekly
VRDNs (Waterman Village
(Mount Dora,
Fl))/(Nationsbank, N.A.,
Charlotte, NC LOC) 8,000,000
5,000,000 Orange County, FL
Educational Facilities
Authority, (Series 1998)
Weekly VRDNs (Rollins
College)/(Nationsbank,
N.A., Charlotte, NC LOC) 5,000,000
14,750,000 Palm Beach County, FL Airport System, FR/RI (Series 1999A 30)
Weekly VRDNs (MBIA INS)/(Bank of
New York, NY LIQ) 14,750,000
3,580,000 Pinellas County Industry
Council, FL Weekly VRDNs
(Loulourgas
Properties)/(First Union
National Bank, Charlotte,
NC LOC) 3,580,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
FLORIDA--CONTINUED
$ 1,875,000 Pinellas County Industry
Council, FL,
Variable/Fixed Rate
Development Revenue Bonds
(Series 1997) Weekly VRDNs
(Boyd Industries,
Inc.)/(SouthTrust Bank of
Alabama, Birmingham, AL
LOC) $ 1,875,000
5,525,000 Polk County, FL IDA, PCR
Refunding Bonds Weekly
VRDNs (IMC Fertilizer,
Inc. Project)/(Rabobank
Nederland, Utrecht LOC) 5,525,000
3,875,000 Putnam County, FL
Development Authority, PCR
Bonds (Pooled Series 1984
S) Weekly VRDNs (Seminole
Electric Cooperative, Inc.
(FL))/(National Rural
Utilities Cooperative
Finance Corp. LOC) 3,875,000
7,950,000 Putnam County, FL
Development Authority, PCR
Bonds (Series 1984 H)
Weekly VRDNs (Seminole
Electric Cooperative, Inc.
(FL))/(National Rural
Utilities Cooperative
Finance Corp. LOC) 7,950,000
3,890,000 Sarasota, FL, Educational
Facilities Revenue Bonds
(Series 1996) Weekly VRDNs
(Ringling School of Art and
Design, Inc.)/(SunTrust
Bank, Central Florida LOC) 3,890,000
3,700,000 St. Petersburg, FL HFA
Weekly VRDNs (Florida
Blood Services,
Inc.)/(SouthTrust Bank of
Alabama, Birmingham, AL
LOC) 3,700,000
4,365,000 St. Petersburg, FL HFA,
Refunding Revenue and
Revenue Bonds (Series
1997) Weekly VRDNs
(Manorah Manor)/(SunTrust
Bank, Central Florida LOC) 4,365,000
5,600,000 Titusville, FL,
Multipurpose Revenue
Bonds, Installment 1995 A
Weekly VRDNs (Nationsbank,
N.A., Charlotte, NC LOC) 5,600,000
5,835,000 Volusia County, FL HFA
Weekly VRDNs (Fisherman's
Landing)/(Mellon Bank,
N.A., Pittsburgh, PA LOC) 5,835,000
1,425,000 Volusia County, FL IDA Weekly VRDNs (Crane Cams)/(Deutsche
Bank, AG LOC) 1,425,000
TOTAL 300,728,000
GEORGIA--3.3%
4,760,000 Augusta, GA HFA, (Series
1998) Weekly VRDNs
(Sterling Ridge
Apartments)/ (Amsouth Bank
N.A., Birmingham, AL LOC) 4,760,000
9,995,000 2 Bibb County, GA, (PT-199),
3.30% TOBs (Georgia State
GTD)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ), Optional Tender
5/11/2000 9,995,000
17,000,000 Burke County, GA
Development Authority, PCR
(Series 1998 A), 3.35% CP
(Oglethorpe Power Corp.
Vogtle Project)/(AMBAC
INS)/(Rabobank Nederland,
Utrecht LIQ), Mandatory
Tender 9/8/1999 17,000,000
2,000,000 Clayton County, GA Housing
Authority, Revenue
Refunding Bonds (Series
1992) Weekly VRDNs (Oxford
Townhomes
Project)/(AmSouth Bank,
N.A., Birmingham, AL LOC) 2,000,000
10,000,000 Clayton County, GA,
(Series 1998), 4.25%
Bonds, 8/1/1999 10,000,000
5,000,000 Cobb-Marietta, GA Coliseum
& Exhibit Hall Authority,
Junior Lien Revenue Bonds
(Series 1996 A) Weekly
VRDNs (MBIA INS)/(Canadian
Imperial Bank of Commerce
LIQ) 5,000,000
1,400,000 De Kalb County, GA
Development Authority,
(Series 1992) Weekly VRDNs
(American Cancer Society,
GA)/(SunTrust Bank,
Atlanta, GA LOC) 1,400,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
GEORGIA--CONTINUED
$ 23,000,000 De Kalb County, GA School
District, (Series 1999),
2.875% TANs, 12/30/1999 $ 23,000,000
8,900,000 Fulco, GA Hospital
Authority, (Series 1999)
Weekly VRDNs (Piedmont
Hospital)/(SunTrust Bank,
Atlanta, GA LOC) 8,900,000
4,925,000 2 Gwinnett County, GA Water
and Sewer Authority, (PT-
1169), 3.62% TOBs
(Gwinnett County,
GA)/(Merrill Lynch Capital
Services, Inc. LIQ),
Optional Tender 7/20/2000 4,925,000
5,855,000 Gwinnett County, GA Water
and Sewer Authority,
Floater Certificates
(Series 1998 70) Weekly
VRDNs (Gwinnett County,
GA)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 5,855,000
3,000,000 Marietta, GA Housing
Authority, Multifamily
Housing Revenue Refunding
Bonds (Series 1996) Weekly
VRDNs (Winterset
Apartments
Project)/(Wachovia Bank of
NC, N.A., Winston-Salem,
NC LOC) 3,000,000
15,000,000 Metropolitan Atlanta Rapid
Transit Authority, Floater
Certificates (Series 1998
59) Weekly VRDNs (MBIA
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 15,000,000
6,000,000 Rockdale County, GA
Hospital Authority,
Revenue Anticipation
Certificates (Series 1994)
Weekly VRDNs (Rockdale
Hospital)/(SunTrust Bank,
Atlanta, GA LOC) 6,000,000
TOTAL 116,835,000
IDAHO--0.4%
15,000,000 Idaho Health Facilities
Authority, (Series 1995),
3.30% CP (Holy Cross Health
System Corp.), Mandatory
Tender 9/17/1999 15,000,000
ILLINOIS--10.9%
10,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
(Series 1998-14) Weekly VRDNs (Cook County, IL)/(FGIC INS)/(ABN
AMRO
Bank N.V., Amsterdam LIQ) 10,000,000
11,990,000 Chicago, IL Board of
Education, (PT-268) Weekly
VRDNs (FGIC
INS)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ) 11,990,000
12,500,000 Chicago, IL Board of
Education, MERLOTs (Series
1997 E) Weekly VRDNs (AMBAC
INS)/(First Union National
Bank, Charlotte, NC LIQ) 12,500,000
36,830,000 Chicago, IL Board of
Education, Morgan Stanley
Series 1998 115) Weekly
VRDNs (FGIC INS)/(Morgan
Stanley, Dean Witter
Municipal Funding, Inc.
LIQ) 36,830,000
14,000,000 Chicago, IL Board of Education, Variable Rate Certificates
(Series 1996 BB) Weekly VRDNs (MBIA INS)/(Bank of America NT
and SA, San Francisco,
CA LIQ) 14,000,000
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,
NY LIQ) 10,000,000
3,400,000 Chicago, IL Water Revenue,
Refunding Bonds, 5.00%
Bonds (AMBAC INS),
11/1/1999 3,415,450
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
$ 11,255,000 Chicago, IL, BOCM MTC 40
Weekly VRDNs (FGIC
INS)/(Bank One Capital
Holdings Corp. LIQ) $ 11,255,000
10,000,000 Chicago, IL, BOCM MTC 41
Weekly VRDNs (FGIC
INS)/(Bank One Capital
Holdings Corp. LIQ) 10,000,000
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)/(FGIC INS)/(First
Union National Bank,
Charlotte, NC LIQ) 20,000,000
20,000,000 2 Chicago, IL, Variable Rate
Certificates (Series 1998 M), 3.70% TOBs (FGIC INS)/(Bank of
America NT and SA, San Francisco, CA LIQ), Optional Tender
8/4/1999 20,000,000
9,940,000 2 Cook County, IL, (Series
1998 A) (PT-1111) 3.175%
TOBs (FGIC INS)/(Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
5/11/2000 9,940,000
350,000 Darien, IL IDA, (Series
1989 C) 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, IL
LOC) 3,800,000
160,000 Hopedale Village, IL,
(Series 1998) Weekly VRDNs
(Hopedale Medical
Foundation)/(Bank One, IL,
N.A. LOC) 160,000
3,000,000 Illinois Development
Finance Authority Weekly
VRDNs (Newlywed
Food)/(Mellon Bank N.A.,
Pittsburgh, PA LOC) 3,000,000
2,500,000 Illinois Development
Finance Authority, (Series
1997) Weekly VRDNs
(Ada S. McKinley Community
Services, Inc.)/(Harris
Trust & Savings Bank,
Chicago, IL LOC) 2,500,000
4,000,000 Illinois Development
Finance Authority,
Cultural Facilities
Revenue Bonds Weekly VRDNs
(Burpee Museum of Natural
History)/(American
National Bank, Chicago, IL
LOC) 4,000,000
5,000,000 Illinois Development
Finance Authority, PCR,
(Series 1999) Weekly VRDNs
(Francis W. Parker
School)/(Harris Trust &
Savings Bank, Chicago and
Northern Trust Co.,
Chicago, IL LOCs) 5,000,000
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
17,000,000 Illinois Health Facilities
Authority, (Series 1998 B)
Weekly VRDNs (Rush-
Presbyterian St. Luke's
Medical)/(MBIA INS)/(First
National Bank of
Chicago LIQ) 17,000,000
56,000,000 Illinois Health Facilities
Authority, Revenue Bonds
(Series 1985 B) Weekly
VRDNs (OSF Health Care
Systems) 56,000,000
72,940,000 Illinois Health Facilities
Authority, Revenue
Refunding Bonds (Series
1997 B) Weekly VRDNs
(Advocate Health Care
Network)/(First National
Bank of Chicago, Harris
Trust & Savings Bank,
Chicago and Northern Trust
Co., Chicago, IL LIQs) 72,940,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
ILLINOIS--CONTINUED
$ 1,000,000 Illinois Health Facilities
Authority, Revolving Fund
Pooled Financing Program
(Series 1985 F) Weekly
VRDNs (NBD Bank, MI LOC) $ 1,000,000
8,740,000 2 Lake County, IL Forest
Preserve District, (PT-
1171) 3.70% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
7/22/2000 8,740,000
1,725,000 Metropolitan Pier &
Exposition Authority, IL, (PT-1079) Weekly VRDNs (McCormick
Place)/(FGIC INS)/(Bank of America NT and SA, San Francisco,
CA LIQ) 1,725,000
TOTAL 381,905,450
INDIANA--1.6%
500,000 Dale, IN IDA Weekly VRDNs
(Spencer
Industries)/(National City
Bank, KY LOC) 500,000
8,800,000 Franklin, IN, Economic
Development Revenue Bonds,
(Series 1999) Weekly VRDNs
(Franklin United Methodist
Home, Inc.)/(Firstar Bank,
Milwaukee, WI LOC) 8,800,000
1,355,000 Indiana Health Facilities
Finance Authority
Rehabilitation Center
Weekly VRDNs (Crossroads
Rehabilitation
Center)/(Bank One, IN,
N.A. LOC) 1,355,000
1,900,000 Indiana Municipal Power
Agency, Refunding (Series
B), 5.00% Bonds (MBIA INS),
1/1/2000 1,915,592
19,000,000 Indianapolis, IN Local
Public Improvement Bond
Bank, (Series 1998 G),
3.50% BANs, 8/15/1999 19,003,568
12,075,000 Indianapolis, IN Local
Public Improvement Bond
Bank, (Series B), 4.00%
TANs (Marion County, IN),
1/10/2000 12,114,407
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, OH LOC) 4,485,000
4,900,000 Lafayette School Corp.,
IN, (1999 First Series),
3.40% TAWs, 12/31/1999 4,903,942
1,935,000 Linton, IN, Economic
Development Revenue Bonds,
(Series 1999) Weekly VRDNs
(Franklin-Glenburn Home,
Inc.)/(Firstar Bank,
Milwaukee, WI LOC) 1,935,000
2,025,000 St. Joseph County, IN,
Multimode Variable Rate
Economic Development
Revenue Bonds (Series
1998) Weekly VRDNs (South
Bend Heritage Foundation,
Inc.)/(KeyBank, N.A. LOC) 2,025,000
TOTAL 57,037,509
KANSAS--0.5%
17,900,000 Burlington, KS, (Series 1999 FR/RI-A7) Weekly VRDNs (Kansas Gas
and Electric Co.)/(MBIA INS)/(Bank of New York, NY
LIQ 17,900,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
KENTUCKY--1.5%
$ 950,000 Boone County, KY, Revenue
Refunding Bonds Weekly
VRDNs (Spring Meadow
Associates)/(Huntington
National Bank, Columbus,
OH LOC) $ 950,000
5,800,000 Carrollton & Henderson KY,
Public Energy Authority,
(Series A), 4.50% Bonds
(FSA INS), 1/1/2000 5,831,915
7,500,000 Jefferson County, KY,
Adjustable Rate Industrial
Building Revenue Refunding
Bonds (Series 1997) Weekly
VRDNs (Kosmos Cement Co.
Partnership)/(Societe
Generale, Paris LOC) 7,500,000
4,700,000 Kentucky Economic
Development Finance
Authority, (Series 1999 C)
Daily VRDNs (Baptist
Healthcare System)/(MBIA
INS)/(National City Bank,
OH LIQ) 4,700,000
35,000,000 Owensboro, KY, (Series
1996) Weekly VRDNs
(Owensboro Mercy Health
System, Inc.
Project)/(Bank of America,
IL LOC) 35,000,000
TOTAL 53,981,915
LOUISIANA--0.5%
800,000 Calcasieu Parish, LA, IDB,
PCR Bonds Weekly VRDNs
(Citgo Petroleum Corp.)/
(Westdeutsche Landesbank
Girozentrale LOC) 800,000
6,000,000 Louisiana PFA, (Series
1985 A) Weekly VRDNs (FGIC
INS)/(Societe Generale,
Paris LIQ) 6,000,000
9,500,000 Louisiana Public
Facilities Authority
Hospital Revenue, FRI/RI
(Series 1999 FR/RI-A31)
Daily VRDNs (Franciscan
Missionaries of Our Lady
Health System)/(FSA
INS)/(Bank of New York, NY
LIQ) 9,500,000
TOTAL 16,300,000
MAINE--0.1%
3,500,000 Biddeford, ME, 3.75% BANs,
6/1/2000 3,512,688
MARYLAND--3.3%
4,200,000 Anne Arundel County, MD,
(Series 1988) Weekly VRDNs
(Oakland Hills LP
Facility)/(Allfirst LOC) 4,200,000
7,000,000 Anne Arundel County, MD,
3.52% TOBs (Baltimore Gas &
Electric Co.), Mandatory
Tender 6/30/2000 7,000,000
2,100,000 Baltimore County, MD Port
Facility Monthly VRDNs
(Occidental Petroleum
Corp.)/(Morgan Guaranty
Trust Co., NY LOC) 2,100,000
800,000 Baltimore County, MD,
(Series 1992) Weekly VRDNs
(Sheppard & Enoch Pratt
Hospital
Facility)/(Societe
Generale, Paris LOC) 800,000
2,800,000 Baltimore, MD PCR Weekly
VRDNs (SCM Plants,
Inc.)/(Barclays Bank PLC,
London LOC) 2,800,000
1,950,000 Baltimore, MD, Variable
Rate Demand/Fixed Rate
Refunding Bond (Series
1988) Weekly VRDNs
(University West
LP)/(Allfirst LOC) 1,950,000
910,000 Elkton, MD, Revenue
Refunding Bonds (Series
1992) Weekly VRDNs
(Highway Service Ventures,
Inc. Facility)/(First
Union National Bank,
Charlotte, NC LOC) 910,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
MARYLAND--CONTINUED
$ 10,000,000 Frederick County, MD,
(Series 1997) Weekly VRDNs
(Homewood at Frederick MD,
Inc. Facility)/(Allfirst
LOC) $ 10,000,000
1,000,000 Frederick County, MD,
(Series 1997 E) Weekly
VRDNs (Buckinghams Choice,
Inc.)/(LaSalle National
Bank, Chicago, IL LOC) 1,000,000
1,500,000 Frederick County, MD,
Revenue Bonds (Series
1995) Weekly VRDNs
(Sheppard Pratt
Residential Treatment
Facility)/(Societe
Generale, Paris LOC) 1,500,000
2,150,000 Harford County, MD,
(Series 1988) Weekly VRDNs
(1001 Partnership
Facility)/(Allfirst LOC) 2,150,000
5,580,000 Howard County, MD, (Series
1995) Weekly VRDNs (Bluffs
at Clarys Forest
Apartments)/(Allfirst LOC) 5,580,000
3,335,000 Howard County, MD, (Series
1999) Weekly VRDNs (Howard
Development Limited
Partnership
Facility)/(Allfirst LOC) 3,335,000
200,000 Maryland Economic
Development Corp., Pooled
Financing Revenue Bonds,
(Series 1995) Weekly VRDNs
(Maryland Municipal Bond
Fund)/(Nationsbank, N.A.,
Charlotte, NC LOC) 200,000
2,835,000 Maryland Economic
Development Corp., Variable Rate Demand/Fixed Rate Refunding
Revenue Bonds (Series 1997) Weekly VRDNs (Jenkins Memorial
Nursing Home, Inc.
Facility)/(Allfirst LOC) 2,835,000
4,960,000 Maryland Health & Higher
Educational Facilities
Authority, (Series 1998 A)
Weekly VRDNs (Charlestown
Community)/(First Union
National Bank, Charlotte,
NC LOC) 4,960,000
12,250,000 Maryland Health & Higher
Educational Facilities
Authority, Revenue Bonds
(Series 1994) Weekly VRDNs
(University Physicians,
Inc.)/(Allfirst LOC) 12,250,000
9,200,000 Maryland Health & Higher
Educational Facilities
Authority, (Series 1997)
Weekly VRDNs (Augsburg
Lutheran Home of MD.,
Inc.)/(Allfirst LOC) 9,200,000
21,985,000 2 Maryland State Community
Development
Administration, (Series
1997) (PT-123), 3.10% TOBs
(Commerzbank AG, Frankfurt
LIQ), Mandatory Tender
10/7/1999 21,985,000
1,740,000 Maryland State IDFA,
(Series 1994) Weekly VRDNs
(Baltimore International
Culinary College
Foundation, Inc.)/(Crestar
Bank of Virginia, Richmond
LOC) 1,740,000
580,000 Maryland State, (Series
1998) (PA-256) Weekly
VRDNs (Merrill Lynch
Capital Services, Inc.
LIQ) 580,000
2,319,000 Montgomery County, MD Housing Opportunities Commission,
Variable Rate Housing Revenue Bonds (Series 1998) Weekly VRDNs
(Byron House, Inc.
Facility)/(Allfirst LOC) 2,319,000
4,000,000 Montgomery County, MD, EDR
Weekly VRDNs (Howard
Hughes Medical Center) 4,000,000
12,000,000 Westminster, MD, (Series
1997) Weekly VRDNs
(Western Maryland College,
Inc. Facilities)/(Allfirst
LOC) 12,000,000
TOTAL 115,394,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
MASSACHUSETTS--2.0%
$ 20,400,000 Commonwealth of
Massachusetts, (Series
1997 B) Weekly VRDNs
(Landesbank Hessen-
Thueringen, Frankfurt LIQ) $ 20,400,000
20,000,000 Holden, MA, 3.75% BANs,
10/1/1999 20,016,178
28,750,000 Massachusetts Bay Transit
Authority, (Series D),
3.10% CP (Commerzbank AG,
Frankfurt and Morgan
Guaranty Trust Co., NY
LIQs), Mandatory Tender
8/2/1999 28,750,000
TOTAL 69,166,178
MICHIGAN--1.8%
2,100,000 Bruce Township, MI
Hospital Finance
Authority, Tender
Securities Weekly VRDNs
(Sisters of Charity Health
Care System)/(MBIA
INS)/(Morgan Guaranty
Trust Co., NY LIQ) 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 1996 A) Weekly
VRDNs (Garden City
Hospital,
Osteopathic)/(National
City Bank, MI/IL LOC) 1,800,000
2,100,000 Grand Rapids, MI EDR,
Floating/Fixed Rate Demand
Bonds (Series 1983 B)
Weekly VRDNs (Amway Grand
Plaza Hotel
Facilities)/(Old Kent Bank
& Trust Co., Grand Rapids
LOC) 2,100,000
2,000,000 Grand Rapids, MI Economic
Development Corp., EDR
Refunding Bonds (Series
1991 A) Weekly VRDNs (Amway
Hotel Corp.)/(Michigan
National Bank, Farmington
Hills, MI LOC) 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
1,430,000 Ingham County, MI Economic
Development Corp., Adjustable Demand LO Revenue Bonds (Series
1995) Weekly VRDNs (Martin Luther Memorial Home, Inc.)/(Bank
One, IN, N.A.
LOC) 1,430,000
3,655,000 Kalamazoo, MI Economic
Development Corp., (Series
1995) LO Revenue Refunding
Bonds Weekly VRDNs
(Wyndham Project,
MI)/(National City Bank,
MI/IL LOC) 3,655,000
840,000 Michigan Higher Education
Facilities Authority,
Variable Rate Demand LO
Revenue Bonds (Series
1997) Weekly VRDNs
(Davenport College of
Business)/(Old Kent Bank &
Trust Co., Grand Rapids, MI
LOC) 840,000
19,465,000 Michigan State Building
Authority, (Series 1),
3.15% CP (Canadian
Imperial Bank of Commerce
LOC), Mandatory Tender
8/5/1999 19,465,000
1,700,000 Michigan State Hospital
Finance Authority, (Series
A) Weekly VRDNs (National
City Bank, MI/IL LOC) 1,700,000
1,500,000 Michigan State Hospital
Finance Authority,
Hospital Equipment Loan
Program Bonds (Series A)
Weekly VRDNs (National
City Bank, MI/IL LOC) 1,500,000
9,650,000 Michigan State Hospital
Finance Authority, MERLOTs
(Series 1997 A) Weekly
VRDNs (Detroit Medical
Center Obligated
Group)/(AMBAC INS)/(First
Union National Bank,
Charlotte, NC LIQ) 9,650,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
MICHIGAN--CONTINUED
$ 11,000,000 Michigan State Housing
Development Authority,
MERLOTs (Series G) Weekly
VRDNs (MBIA INS)/(First
Union National Bank,
Charlotte, NC LIQ) $ 11,298,810
1,200,000 Michigan Strategic Fund,
LO Revenue Bonds (Series
1995) Weekly VRDNs
(Wellness Plan
Project)/(NBD Bank, MI
LOC) 1,200,000
2,500,000 Michigan Strategic Fund,
(PT-244) Weekly VRDNs
(Detroit Edison Co.)/(FGIC
INS)/(Banque Nationale de
Paris LIQ) 2,500,000
TOTAL 63,038,810
MINNESOTA--4.8%
24,000,000 ABN AMRO MuniTOPS
Certificates Trust
(Minnesota Non-AMT)
(Series 1998 6) Weekly
VRDNs (Minneapolis/St.
Paul, MN Airport
Commission)/(AMBAC
INS)/(ABN AMRO Bank N.V.,
Amsterdam LIQ) 24,000,000
4,000,000 Bloomington, MN,
Multifamily Housing Weekly
VRDNs (Crow/Bloomington
Apartments)/(Citibank
N.A., NY LOC) 4,000,000
11,000,000 DDSB Municipal Securities
Trusts, (Series 1994 V)
Weekly VRDNs (St. Louis
Park, MN Health Care
Facilities)/(AMBAC
INS)/(U.S. Bank, N.A.,
Minneapolis, MN LIQ) 11,000,000
4,420,000 Faribault, MN ISD No. 656,
3.25% TANs (Minnesota
State GTD), 3/9/2000 4,426,459
4,530,000 Forest Lake, MN ISD No.
831, (Series 1999 A), 3.65%
TANs (Minnesota State
GTD), 8/1/2000 4,536,515
750,000 MN Municipal Securities
Trust (Series 1996 F),
Floating Rate Certificates
Weekly VRDNs (Lakeville,
MN ISD 194)/(Minnesota
State GTD)/(Norwest Bank,
MN, N.A. LIQ) 750,000
5,500,000 Minneapolis, MN, Housing
Development Revenue
Refunding Bonds (Series
1988) Weekly VRDNs
(Symphony Place)
/(Citibank N.A., NYLOC) 5,500,000
6,000,000 Minneapolis, MN, Variable
Rate Housing Revenue Bonds
Weekly VRDNs (One Ten Grant
Project)/(U.S. Bank, N.A.,
Minneapolis, MN LOC) 6,000,000
10,000,000 Minnesota Public
Facilities Authority,
Morgan Stanley Floater
Certificate (Series 1998
73) Weekly VRDNs (Morgan
Stanley, Dean Witter
Municipal Funding,
Inc. LIQ) 10,000,000
11,000,000 Oak Park Heights, MN,
Elderly Housing Revenue
Bonds (Series 1998 B),
4.2625% TOBs (Bayerische
Landesbank Girozentrale),
Mandatory Tender 12/1/1999 11,000,000
8,500,000 Rochester, MN Health Care
Facility Authority Weekly
VRDNs (Mayo Foundation) 8,500,000
10,500,000 Rochester, MN Health Care
Facility Authority Weekly
VRDNs (Mayo Foundation) 10,500,000
15,000,000 Rosemount, MN, PCR (Series
1984) Weekly VRDNs (Koch
Refining Co.)/(Koch
Industries, Inc. GTD) 15,000,000
1,500,000 Shakopee, MN Hospital
Finance Authority Weekly
VRDNs (St. Francis
Regional Medical
Center)/(Citibank N.A., NY
LOC) 1,500,000
100,000 St. Paul, MN Port
Authority, (Series 1991)
Weekly VRDNs (West Gate
Office)/(U.S. Bank, N.A.,
Minneapolis, MN LOC) 100,000
52,200,000 University of Minnesota,
(Series 1999 A) Weekly
VRDNs 52,200,000
TOTAL 169,012,974
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
MISSISSIPPI--0.7%
$ 1,365,000 Hinds County, MS, (Series
1991) Weekly VRDNs (North
State St. Project)/
(AmSouth Bank N.A.,
Birmingham, AL LOC) $ 1,365,000
19,485,000 Mississippi Gulf Coast
Regional Wastewater
Authority, MERLOTs (Series
1999 C) Daily VRDNs (MBIA
INS)/(First Union National
Bank, Charlotte, NC LIQ) 19,485,000
2,465,000 Mississippi State, (Series
E) 5.00% Bonds, 9/1/1999 2,468,774
TOTAL 23,318,774
MISSOURI--2.4%
5,600,000 Missouri State HEFA,
(Series 1996 A) Daily VRDNs
(Washington University) 5,600,000
58,600,000 Missouri State HEFA,
(Series 1998) Weekly VRDNs
(Stowers Institute for
Medical Research)/(Morgan
Guaranty Trust Co., NY LOC) 58,600,000
17,000,000 Missouri State HEFA,
(Series K), 4.25% TRANs
(St. Louis, MO School
District), 9/13/1999 17,011,546
4,200,000 Poplar Bluff, MO IDA,
(Series 1987) Weekly VRDNs
(Gates Rubber Co.)/(NBD
Bank, MI LOC) 4,200,000
TOTAL 85,411,546
MULTISTATE--2.6% 16,013,328 ABN AMRO Chicago Corp.
(Series 1997-1) LeaseTOPS
Trust Weekly VRDNs
(LaSalle National Bank,
Chicago LIQ)/(LaSalle
National Bank, Chicago, IL
LOC) 16,013,328
34,424,000 Clipper Tax-Exempt Trust
(Non-AMT Multistate),
(Series A) Weekly VRDNs
(State Street LIQ 34,424,000
19,081,010 Equity Trust II, (Series
1996) Weekly VRDNs
(Republic National Bank of
New York LOC) 19,081,010
20,242,591 PBCC LeaseTOPS Trust
(Multistate Non-AMT)
(Series 1998 2) Weekly
VRDNs (AMBAC INS)/(Pitney
Bowes Credit Corp. LIQ) 20,242,591
TOTAL 89,760,929
NEVADA--0.2%
7,500,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
(Series 1998-1) Weekly VRDNs (Nevada State)/(MBIA INS)/(ABN
AMRO Bank N.V.,
Amsterdam LIQ) 7,500,000
NEW JERSEY--0.8%
25,000,000 2 New Jersey State, (CDC
Series 1997 L), 3.50% TOBs
(CDC Municipal Products,
Inc. LIQ), Optional Tender
6/8/2000 25,000,000
3,000,000 New Jersey State, (Series
1998 FR/RI-A34) Trust
Receipts Weekly VRDNs
(Bayerische Hypotheken-und
Vereinsbank AG LIQ) 3,000,000
TOTAL 28,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
NEW MEXICO--0.9%
$ 30,000,000 New Mexico State Highway
Commission, Adjustable
Tender Subordinate Lien
Tax Revenue Highway Bonds
(Series 1996) Weekly VRDNs
(FSA INS)/(Canadian
Imperial Bank of Commerce
LIQ) $ 30,000,000
NEW YORK--3.8%
8,695,000 Long Island Power
Authority, (PA-420) Weekly
VRDNs (MBIA INS)/(Merrill
Lynch Capital Services,
Inc. LIQ) 8,695,000
18,590,000 Long Island Power
Authority, Electric System
Subordinated Revenue Bonds
(Series 1) Weekly VRDNs
(Bayerische Landesbank
Girozentrale and
Westdeutsche Landesbank
Girozentrale LOCs) 18,590,000
1,430,000 Metropolitan
Transportation Authority, NY, Trust Receipts (Series 1997
FR/RI-9) Weekly VRDNs (FGIC INS)/(Bank of New
York, NY LIQ) 1,430,000
10,000,000 Nassau County, NY, (Series
1999 C), 4.25% RANs (Bank
of New York, NY LOC),
3/15/2000 10,039,360
6,750,000 Nassau County, NY, 4.25%
BANs (Fleet National Bank,
Springfield, MA LOC),
5/16/2000 6,784,853
2,590,000 New York City Municipal
Water Finance Authority,
(PT-243) Weekly VRDNs (FSA
INS)/(Bayerische
Hypotheken-und Vereinsbank
AG LIQ) 2,590,000
11,780,000 2 New York State Dormitory
Authority, (PT-192), 3.25%
TOBs (Cornell
University)/(Banco
Santander Central Hispano,
SA LIQ), Optional Tender
5/11/2000 11,780,000
5,100,000 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, NY
LIQ) 5,100,000
9,295,000 New York State Medical Care
Facilities Finance Agency,
(Series 1992 B PT-100)
Daily VRDNs (FHA
INS)/(Credit Suisse First
Boston LIQ) 9,295,000
4,995,000 2 New York State Mortgage
Agency, (PT-164), 3.25%
TOBs (Banque Nationale de
Paris LIQ), Optional
Tender 3/9/2000 4,995,000
14,735,000 2 New York State Thruway
Authority, (PT-1158),
3.25% TOBs (Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
6/8/2000 14,735,000
10,000,000 Syracuse, NY, 4.25% BANs (Fleet National Bank, Springfield, MA
LOC),
6/30/2000 10,058,571
15,500,000 VRDC/IVRC Trust, (Series
1992 A) Weekly VRDNs (NY
City Municipal Water
Finance Authority)/(MBIA
INS)/(Citibank N.A., NY
LIQ) 15,500,000
13,500,000 VRDC/IVRC Trust, (Series
1993 B) Weekly VRDNs
(Metropolitan
Transportation Authority,
NY)/(AMBAC INS)/(Citibank
N.A., NY LIQ) 13,500,000
TOTAL 133,092,784
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
NORTH CAROLINA--1.4%
$ 15,000,000 Martin County, NC IFA,
(Series 1993) Weekly VRDNs
(Weyerhaeuser Co.) $ 15,000,000
1,000,000 North Carolina Medical
Care Commission, Revenue
Bonds (Series 1993) Weekly
VRDNs (Moses H. Cone
Memorial) 1,000,000
13,250,000 North Carolina State,
(Series 1998 A) (PA-342)
Weekly VRDNs (Merrill
Lynch Capital Services,
Inc. LIQ) 13,250,000
6,000,000 North Carolina State,
Floater Certificates
(Series 1998-38) Weekly
VRDNs (Morgan Stanley,
Dean Witter Municipal
Funding, Inc. LIQ) 6,000,000
5,100,000 University of North
Carolina at Chapel Hill,
School of Medicine
Ambulatory Care Clinic
(Series 1990) Weekly VRDNs 5,100,000
9,400,000 Wake County, NC Industrial
Facilities & PCFA, (Series
1990 B) Daily VRDNs
(Carolina Power & Light
Co.)/(Bank of New York, NY
LOC) 9,400,000
TOTAL 49,750,000
OHIO--7.7%
8,338,000 ABN AMRO MuniTOPS Certificates Trust (Ohio Non-AMT), (Series
1998-18) Weekly VRDNs (Cleveland, OH Waterworks)/(FSA INS)/(ABN
AMRO Bank N.V.,
Amsterdam LIQ) 8,338,000
2,365,000 Ashland County, OH Health
Care Weekly VRDNs
(Brethren Care,
Inc.)/(National City Bank,
OH LOC) 2,365,000
8,000,000 Avon Lake, OH, 3.625% BANs,
3/31/2000 8,024,433
21,500,000 Banc One Capital Higher
Education Tax-Exempt
Income Trust, (Series 2)
Certificates of Ownership
Weekly VRDNs (Bank One, KY
LOC) 21,500,000
3,265,000 Butler County, OH, (Series
1999) Weekly VRDNs (Knolls
of Oxford
Project)/(Firstar Bank,
N.A., Cincinnati, OH LOC) 3,265,000
7,790,000 Clark County, OH, Health
Facilities (Series 1998)
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
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
6,955,000 Franklin County, OH
Hospital Facility
Authority, (Series 1992)
Weekly VRDNs (Wesley
Glenn, Inc.)/(Fifth Third
Bank, Cincinnati, OH LOC) 6,955,000
1,290,000 Franklin County, OH,
Health Care Facilities
Revenue Bonds (Series
1994) Weekly VRDNs (Wesley
Glenn, Inc.)/(Fifth Third
Bank of Northwestern OH
LOC) 1,290,000
21,035,000 Greene County, OH, (Series
A), 3.15% BANs, 3/2/2000 21,058,860
17,146,000 Greene County, OH, (Series
C), 3.50% BANs, 6/1/2000 17,187,406
36,000,000 Greene County, OH,
Certificates of
Indebtedness, 3.30% BANs,
5/4/2000 36,052,600
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
OHIO--CONTINUED
$ 190,000 Lucas County, OH, Hospital
Improvement Revenue Weekly
VRDNs (Sunshine Children's
Home)/(National City Bank,
OH LOC) $ 190,000
6,410,000 Mahoning County, OH HFA,
Housing Revenue Bonds
(Series 1995) Weekly VRDNs
(Copeland Oaks
Project)/(Bank One, OH,
N.A. LOC) 6,410,000
435,000 Marion County, OH Hospital
Authority, (Series 1991)
Weekly VRDNs (Marion
County, OH Pooled Hospital
Program)/(Bank One, OH,
N.A. LOC) 435,000
7,400,000 Medina County, OH, (Series
1997) Weekly VRDNs (Plaza
71 Associates
Ltd.)/(Westdeutsche
Landesbank Girozentrale
LOC) 7,400,000
3,045,000 Mentor, OH, Adjustable Rate IDRB's (Series 1997) Weekly VRDNs
(Risch Investments/Roll Kraft, Inc.)/(Bank One, OH, N.A.
LOC) 3,045,000
7,600,000 Montgomery County, OH
Hospital Authority,
Variable Rate Hospital
Facilities Revenue Bonds
(Series 1985 B), 3.25% CP
(Miami (OH) Valley
Hospital)/ (Northern Trust
Co., Chicago, IL LOC),
Mandatory Tender 8/9/1999 7,600,000
650,000 Montgomery County, OH IDA
Weekly VRDNs (Center-Plex Venture)/(KeyBank, N.A.
LOC) 650,000
4,475,000 Montgomery County, OH,
Variable Rate LO Revenue
Bonds (Series 1996) Weekly
VRDNs (Society of St.
Vincent De Paul)/(National
City Bank, OH LOC) 4,475,000
3,345,000 Montgomery, OH IDA Weekly
VRDNs (Bethesda Two
LP)/(Huntington National
Bank, Columbus, OH LOC) 3,345,000
7,780,000 New Albany, OH Community
Authority, Adjustable Rate
Multipurpose
Infrastructure Improvement
Bonds, (Series A) Weekly
VRDNs (Huntington National
Bank, Columbus, OH LOC) 7,780,000
1,000,000 Ohio State Air Quality
Development Authority
Weekly VRDNs (Timken
Co.)/(Credit Suisse First
Boston LOC) 1,000,000
3,800,000 Ohio State Air Quality
Development Authority,
(Series 1988 A) Weekly
VRDNs (PPG Industries,
Inc.) 3,800,000
10,000,000 Ohio State Higher
Education Facility,
(Series 1999) Weekly VRDNs
(Higher Education Pooled
Financing 1999
Program)/(Fifth Third
Bank, Cincinnati, OH LOC) 10,000,000
10,000,000 Ohio State Water
Development Authority, PCR
Refunding Bonds Weekly
VRDNs (General Motors
Corp.) 10,000,000
13,000,000 Ohio State Water
Development Authority,
Pollution Control Revenue
Refunding Bonds (Series
1997) Weekly VRDNs (Philip
Morris Cos., Inc.) 13,000,000
16,500,000 Ottawa County, OH, 4.00%
BANs, 8/6/1999 16,500,696
6,400,000 Rickenbacker, OH Port
Authority, (Series 1992)
Weekly VRDNs (Rickenbacker
Holdings, Inc.)/(Bank One,
OH, 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, OH LOC) 4,175,000
2,000,000 Ross County, OH, Hospital
Revenue Bonds Weekly VRDNs
(Adena Health
System)/(Fifth Third Bank,
Cincinnati, OH LOC) 2,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
OHIO--CONTINUED
$ 2,200,000 Scioto County, OH Hospital
Authority Weekly VRDNs
(AMBAC INS)/(First
National Bank of Chicago
LIQ) $ 2,200,000
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 4,503,897
3,000,000 Walnut Hills, OH High
School Alumni Foundation,
(Series 1998) Weekly VRDNs
(Fifth Third Bank,
Cincinnati, OH LOC) 3,000,000
TOTAL 269,625,892
OKLAHOMA--3.6%
15,500,000 Oklahoma State Industrial
Authority, Flexible Rate
Hospital Revenue Bonds
(Series 1990 B) Weekly
VRDNs (Baptist Medical
Center, OK)/(Morgan
Guaranty Trust Co., NY LIQ) 15,500,000
93,500,000 Oklahoma State Industrial
Authority, Health System
Revenue Bonds (Series
1995A) Weekly VRDNs
(Baptist Medical Center,
OK)/(Morgan Guaranty Trust
Co., NY LIQ) 93,500,000
18,640,000 Tulsa, OK International
Airport, Variable Rate Certificates (Series 1997 B-2) Weekly
VRDNs (MBIA INS)/(Bank of America NT and SA, San Francisco,
CA LIQ) 18,640,000
TOTAL 127,640,000
PENNSYLVANIA--8.0%
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
10,000,000 Allegheny County, PA IDA,
(Series B) Weekly VRDNs
(Zoological Society of
Pittsburgh)/(PNC Bank,
N.A. LOC) 10,000,000
4,400,000 Allegheny County, PA IDA,
Commercial Development
Revenue Bonds (Series
1992) Weekly VRDNs (Eleven
Parkway Center
Associates)/(Mellon Bank
N.A., Pittsburgh, PA LOC) 4,400,000
3,000,000 Allegheny County, PA IDA,
Variable Rate Demand
Revenue Bonds (Series 1997
B) Weekly VRDNs (Jewish
Community
Center)/(National City, PA
LOC) 3,000,000
33,390,000 Commonwealth of
Pennsylvania, Floater
Certificate (Series 1998-
53) Weekly VRDNs (FGIC
INS)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 33,390,000
27,000,000 Commonwealth of
Pennsylvania, Trust Series
(Series 1999-3) Weekly
VRDNs (FGIC INS)/(Chase
Manhattan Bank N.A., NY
LIQ) 27,000,000
4,000,000 Dallastown Area School District, PA, GO Bonds (Series 1998)
Weekly VRDNs (FGIC INS)/(FGIC Securities Purchase, Inc.
LIQ) 4,000,000
5,595,000 Dauphin County, PA General Authority, Education and Health Loan
Program, (Series 1997) Weekly VRDNs (AMBAC INS)/(Chase
Manhattan Bank N.A.,
NY LIQ) 5,595,000
4,900,000 Delaware County, PA Authority, Hospital Revenue Bonds (Series
1996) Weekly VRDNs (Crozer-Chester Medical Center)/(KBC Bank
N.V.
LOC) 4,900,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
PENNSYLVANIA--CONTINUED
$ 21,350,000 Delaware Valley, PA
Regional Finance
Authority, Lehman Trust
Receipts (Series FR/RI-
A74) Daily VRDNs (AMBAC
INS)/(Bank of New York, NY
LIQ) $ 21,350,000
18,500,000 Doylestown Hospital
Authority, PA, Doylestown
Hospital Revenue Bonds
Weekly VRDNs (AMBAC
INS)/(PNC Bank, N.A. LIQ) 18,500,000
2,700,000 East Hempfield Township,
PA IDA, (Series 1985) Weekly VRDNs (Yellow Freight
System)/(Wachovia Bank of NC, N.A., Winston-
Salem, NC LOC) 2,700,000
24,800,000 Easton Area School
District, PA, (Series
1997) Weekly VRDNs (FGIC
INS)/(FGIC Securities
Purchase, Inc. LIQ) 24,800,000
10,000,000 Erie County, PA Hospital
Authority Weekly VRDNs
(St. Vincent Health
System)/ (Mellon Bank,
N.A., Pittsburgh, PA LOC) 10,000,000
17,995,000 Lancaster County, PA
Hospital Authority, Health
Center Revenue Bonds
(Series 1996) Weekly VRDNs
(Masonic Homes) 17,995,000
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
3,310,000 Moon Township, PA IDA,
Variable Rate Commercial
Development Revenue Bond
(Series 1995 A) Weekly
VRDNs (One Thorn Run
Center)/(National City, PA
LOC) 3,310,000
3,250,000 Philadelphia, PA IDA,
Variable Rate Revenue
Bonds (Series 1998) Weekly
VRDNs (Philadelphia
Academy of Music)/(First
Union National Bank,
Charlotte, NC LOC) 3,250,000
3,500,000 Philadelphia, PA School
District, (Series B of 1999-2000), 4.00% TRANs (Mellon Bank
N.A., Pittsburgh, PA LOC),
6/30/2000 3,517,021
15,000,000 Philadelphia, PA School
District, (Series C of
1999-2000), 4.00% TRANs
(PNC Bank, N.A. LOC),
6/30/2000 15,072,948
3,210,000 Philadelphia, PA Water &
Wastewater System, (Series
1997 Q) Weekly VRDNs (MBIA
INS)/(CDC Municipal
Products, Inc. LIQ) 3,210,000
25,000,000 Philadelphia, PA, (Series
A of 1999-2000), 4.25%
TRANs, 6/30/2000 25,165,627
7,500,000 Temple University,
University Funding
Obligations, 3.15% BANs,
5/12/2000 7,500,000
4,025,000 Washington County, PA
Authority Weekly VRDNs
(Eye & Ear Hospital)/(PNC
Bank, N.A. LOC) 4,025,000
2,700,000 Washington County, PA
Authority, (Series 1985 A)
Weekly VRDNs (1985-A
Pooled Equipment Lease
Program)/(First Union
National Bank, Charlotte,
NC LOC) 2,700,000
TOTAL 282,445,596
RHODE ISLAND--0.2%
7,540,000 Rhode Island State Health
and Educational Building
Corp., 8.375% Bonds
(Johnson and Wales
University)/(United States
Treasury PRF), 4/1/2000
(Prerefunded @102) 7,942,433
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
SOUTH CAROLINA--1.2%
$ 6,000,000 South Carolina State
Public Service Authority,
3.20% CP (Bank of America
NT and SA, San Francisco,
CA, Bank of Nova Scotia,
Toronto, Commerzbank AG,
Frankfurt and Toronto-
Dominion Bank LIQs),
Mandatory Tender 8/9/1999 $ 6,000,000
7,500,000 South Carolina State
Public Service Authority,
3.35% CP (Bank of America
NT and SA, San Francisco,
CA, Bank of Nova Scotia,
Toronto, Commerzbank AG,
Frankfurt and Toronto-
Dominion Bank LIQs),
Mandatory Tender 9/13/1999 7,500,000
30,000,000 Spartanburg County, SC
School District, (No.7),
3.00% BANs, 2/25/2000 30,009,943
TOTAL 43,509,943
TENNESSEE--2.3%
13,071,000 2 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
(Series 1999-1) 3.35% TOBs (Metropolitan Government Nashville &
Davidson County, TN)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam
LIQ), Optional
Tender 5/3/2000 13,071,000
25,000,000 Chattanooga, TN HEFA
Weekly VRDNs (McCallie
School)/(SunTrust Bank,
Atlanta, GA LOC) 25,000,000
8,000,000 Chattanooga, TN HEFA
Weekly VRDNs (Sisken
Hospital)/(Nationsbank,
N.A., Charlotte, NC LOC) 8,000,000
1,500,000 Chattanooga, TN IDB,
(Series 1997) Weekly VRDNs
(YMCA Projects)/(SunTrust
Bank, Nashville, TN LOC) 1,500,000
2,600,000 Maury County, TN HEFA,
(Series 1996 E) Weekly
VRDNs (Southern Healthcare
Systems, Inc.)/(Bank One,
TX N.A. LOC) 2,600,000
6,775,000 Memphis, TN Center City
Revenue Finance Corp.,
(Series 1996 A) Weekly
VRDNs (South
Bluffs)/(National Bank of
Commerce, Memphis, TN LOC) 6,775,000
1,000,000 Memphis, TN, General
Improvement Refunding
Bonds, (Series 1995 A)
Weekly VRDNs (Westdeutsche
Landesbank Girozentrale
LOC) 1,000,000
2,700,000 Memphis, TN, General
Improvement Refunding
Bonds, (Series 1995 A)
Weekly VRDNs (Westdeutsche
Landesbank Girozentrale
LOC) 2,700,000
1,600,000 Metropolitan Government
Nashville & Davidson
County, TN HEFA, (Series
1996) Weekly VRDNs (Dede
Wallace Center
Project)/(SunTrust Bank,
Nashville, TN LOC) 1,600,000
4,000,000 Metropolitan Government
Nashville & Davidson
County, TN HEFA,
Educational Facilities
Revenue Bonds (Series
1997) Weekly VRDNs
(Belmont University
Project)/(SunTrust Bank,
Nashville, TN LOC) 4,000,000
3,000,000 Metropolitan Government
Nashville & Davidson
County, TN HEFA, Revenue
Bonds (Series 1985 A),
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 1985 A),
3.10% TOBs (Vanderbilt
University), Optional
Tender 1/15/2000 3,000,000
2,900,000 Metropolitan Government
Nashville & Davidson
County, TN IDB, (Series
1995) Weekly VRDNs
(Hickory Trace
Apartments)/(National City
Bank, KY LOC) 2,900,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
TENNESSEE--CONTINUED
$ 1,000,000 Montgomery Co, TN Public
Building Authority, Pooled
Financing Revenue Bonds
(Series 1996) Weekly VRDNs
(Montgomery County
Loan)/(Nationsbank, N.A.,
Charlotte, NC 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. LIQ) 2,500,000
1,645,000 Washington County, TN IDB,
Revenue Refunding Bonds
(Series 1996) Weekly VRDNs
(Springbrook Properties
Project)/(SunTrust Bank,
Nashville, TN LOC) 1,645,000
TOTAL 80,291,000
TEXAS--7.0%
15,000,000 2 ABN AMRO MuniTOPS Certificates Trust (Multistate 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 ABN AMRO MuniTOPS
Certificates Trust
(Multistate Non-AMT)
(Series 1998-19) Weekly
VRDNs (Dallas, TX
Waterworks & Sewer
System)/(FSA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 12,996,000
8,950,000 Aldine, TX ISD, (Series
1997 SGB-29) Weekly VRDNs
(Texas Permanent School
Fund Guarantee Program
GTD)/(Societe Generale,
Paris LIQ) 8,950,000
9,365,000 2 Collin County, TX, PT-
1156, 3.30% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
5/18/2000 9,365,000
5,575,000 2 Conroe, TX ISD, (PT-1168),
3.65% TOBs (Texas
Permanent School Fund
Guarantee Program
GTD)/(Merrill Lynch
Capital Services, Inc.
LIQ), Optional Tender
7/20/2000 5,575,000
400,000 Grapevine, TX, IDC,
SimuFlite Training
International Project
(Series 1993) Weekly VRDNs
(Southern Air Transport,
Inc.)/(Bank of Montreal
LOC) 400,000
38,480,000 Harris County, TX HFDC,
(Series 1997 A) Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Morgan Guaranty
Trust Co., NY,
Nationsbank, N.A.,
Charlotte, NC and Toronto-
Dominion Bank LIQs) 38,480,000
7,900,000 Harris County, TX HFDC,
Trust Receipts (Series
1997) Weekly VRDNs
(Hermann Hospital)/(MBIA
INS)/(Bank of New York, NY
LIQ) 7,900,000
64,490,000 Harris County, TX HFDC,
Unit Priced Demand
Adjustable Revenue Bonds
(Series 1997B) Daily VRDNs
(St. Luke's Episcopal
Hospital)/(Morgan Guaranty
Trust Co., NY,
Nationsbank, N.A.,
Charlotte, NC and Toronto-
Dominion Bank LIQs) 64,490,000
19,435,000 Houston, TX ISD, Morgan
Stanley Floater
Certificates (Series 1998-
133) Weekly VRDNs (Texas
Permanent School Fund
Guarantee Program
GTD)/(Morgan Stanley, Dean
Witter Municipal Funding,
Inc. LIQ) 19,435,000
7,100,000 Houston, TX Water & Sewer
System, FR/RI (Series 1999 A-29) Weekly VRDNs (Bank of New
York, NY LIQ)/(United
States Treasury PRF) 7,100,000
1,520,000 North Richland Hills, TX
IDC Weekly VRDNs (Tecnol,
Inc.)/(Nationsbank, N.A.,
Charlotte, NC LOC) 1,520,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
TEXAS--CONTINUED
$ 11,000,000 San Antonio, TX Electric &
Gas, Municipal Securities
Trust Receipts (Series
1997 SG 101) Weekly VRDNs
(Societe Generale, Paris
LIQ) $ 11,000,000
9,890,000 2 San Antonio, TX Electric &
Gas, (PT-1110), 3.25% TOBs
(Merrill Lynch Capital
Services, Inc. LIQ),
Optional Tender 5/11/2000 9,890,000
4,475,000 TX Pooled Tax Exempt Trust,
Certificates of
Participation (Series
1996) Weekly VRDNs (Bank
One, TX N.A. LOC) 4,475,000
9,000,000 Texas Small Business Industrial Development Corp., (Series
1986) Weekly VRDNs (Texas Public Facilities Capital Access
Program)/(KBC Bank N.V.
LOC) 9,000,000
20,000,000 Texas State, 4.50% TRANs,
8/31/1999 20,016,059
TOTAL 245,592,059
UTAH--0.2%
3,100,000 Emery County, UT, PCR
Refunding Bonds (Series
1994) Daily VRDNs
(Pacificorp)/ (AMBAC
INS)/(Bank of Nova Scotia,
Toronto LIQ) 3,100,000
5,000,000 Intermountain Power
Agency, UT, (Series 1985 F), 3.25% CP (AMBAC INS)/ (Morgan
Guaranty Trust Co., NY LIQ), Mandatory
Tender 9/13/1999 5,000,000
TOTAL 8,100,000
VERMONT--0.0%
800,000 Vermont Educational and
Health Buildings Financing
Agency, (Series 1995 A)
Weekly VRDNs (KeyBank,
N.A. LOC) 800,000
VIRGINIA--0.3%
10,000,000 ABN AMRO MuniTOPS
Certificates Trust
(Virginia Non-AMT) (Series
1998-21) Weekly VRDNs
(Norfolk, VA Water
Revenue)/(FSA INS)/(ABN
AMRO Bank N.V., Amsterdam
LIQ) 10,000,000
1,800,000 Arlington County, VA
Weekly VRDNs (Ballston
Public Parking)/(Citibank
N.A.,
NY LOC) 1,800,000
TOTAL 11,800,000
WASHINGTON--0.3%
4,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT)
(Series 1998-16) Weekly VRDNs (Port of Seattle, WA)/(MBIA
INS)/(ABN AMRO
Bank N.V., Amsterdam LIQ) 4,000,000
2,200,000 Port of Seattle, WA, IDRB
(Series 1985) Weekly VRDNs
(Douglas Management Co.
Project)/(Mellon Bank
N.A., Pittsburgh, PA LOC) 2,200,000
2,930,000 Seattle, WA, Solid Waste
Utility Revenue Bonds,
4.75% Bonds (FSA INS),
8/1/2000 2,964,062
TOTAL 9,164,062
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
WEST VIRGINIA--0.6%
$ 7,550,000 Cabell County Commission,
WV, Life Care Facilities
Multioption Revenue Bonds
(Series 1995) Weekly VRDNs
(Foster
Foundation)/(Huntington
National Bank, Columbus,
OH LOC) $ 7,550,000
14,500,000 Marshall County, WV, PCR
(Series 1992) Weekly VRDNs
(PPG Industries, Inc.) 14,500,000
TOTAL 22,050,000
WISCONSIN--3.7%
10,975,000 Appleton, WI Area School
District, 3.15% TRANs,
9/27/1999 10,975,164
4,800,000 Chippewa Falls WI, USD,
3.27% TRANs, 9/30/1999 4,800,764
14,150,000 Eau Claire, WI Area School
Disrict, 3.07% TRANs,
9/27/1999 14,152,136
3,800,000 Greenfield, WI School
District, 3.50% TRANs,
9/30/1999 3,800,175
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 2,500,804
3,900,000 La Crosse WI, School
District, 3.34% TRANs,
8/31/1999 3,900,117
4,500,000 Luxemburg-Casco WI, School District, 3.60% BANs,
12/15/1999 4,500,000
3,500,000 Menomonee Falls, WI School
District, 3.27% TRANs,
8/25/1999 3,500,043
4,800,000 Mequon-Thiensville, WI School District, 3.65%
TRANs, 9/23/1999 4,801,344
3,000,000 Oregon, WI School
District, 3.60% TRANs,
9/14/1999 3,000,208
3,100,000 Pulaskii, WI Community
School District, 3.60%
TRANs, 8/31/1999 3,100,048
5,000,000 Sparta, WI Area School
District, 3.25% BANs,
3/1/2000 5,000,072
17,990,000 Wisconsin Center District,
(PT-267) Weekly VRDNs (FSA
INS)/(Commerzbank AG,
Frankfurt LIQ) 17,990,000
2,045,000 Wisconsin Health and
Educational Facilities
Authority Weekly VRDNs
(St. Luke's Medical
Center)/(First National
Bank of Chicago LOC) 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
12,000,000 Wisconsin Health and
Educational Facilities
Authority, Revenue Bonds
(Series 1994) Weekly VRDNs
(Felician Health Care,
Inc. Project)/(First
National Bank of Chicago
LOC) 12,000,000
9,030,000 2 Wisconsin State, (PT-
1137), 3.20% TOBs (Merrill
Lynch Capital Services,
Inc. LIQ), Optional Tender
12/9/1999 9,030,000
TOTAL 129,935,875
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM MUNICIPALS--
continued 1
WYOMING--0.1%
$ 2,050,000 Douglas, WY, IDR Bonds,
3.35% TOBs (Safeway,
Inc.)/(Bankers Trust Co.,
NY LOC), Mandatory Tender
12/1/1999 $ 2,050,000
1,125,000 Natrona County, WY,
Hospital Revenue, 5.0375%
TOBs (Grainger (W.W.),
Inc.), Optional Tender
12/1/1999 1,125,000
TOTAL 3,175,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 3,553,677,220
</TABLE>
1 The fund invests in securities rated in the highest short-term rating category
by one or more nationally recognized statistical rating organizations ("NRSROs")
or unrated securities of comparable quality. An NRSRO's highest rating category
is determined without regard for sub- categories and gradations. For example,
securities rated SP-1+ or SP-1 by Standard & Poor's, MIG-1 or VMIG-1 by Moody's
Investors Service, Inc., or F-1+ or F-1 by Fitch IBCA, Inc. are all considered
rated in the highest short-term rating category. Securities rated in the highest
short-term rating category (and unrated securities of comparable quality) are
identified as First Tier securities. The fund follows applicable regulations in
determining whether a security is rated by multiple NRSROs in different rating
categories should be identified as a First Tier security. At July 31, 1999, the
portfolio securities were rated as follows:
Tier Rating Based on Total Market Value (Unaudited)
<TABLE>
<CAPTION>
FIRST TIER Second Tier
<S> <C>
100.0% 0%
</TABLE>
2 Denotes a restricted security which is subject to restrictions on resale under
federal securities laws. These securities have been deemed liquid based upon
criteria approved by the fund's Board of Trustees. At July 31, 1999, these
securities amounted to $249,971,000 which represents 7.1% of net assets.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($3,517,347,262) at July 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC --American Municipal Bond Assurance Corporation AMT --Alternative Minimum
Tax BANs --Bond Anticipation Notes CP --Commercial Paper 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 IDFA --Industrial Development Finance
Authority IDRB --Industrial Development Revenue Bond IFA --Industrial Finance
Authority INS --Insured ISD --Independent School District LIQ --Liquidity
Agreement LO --Limited Obligation LOC --Letter of Credit MBIA --Municipal Bond
Investors Assurance MERLOTs --Municipal Exempt Receipts -- Liquidity Optional
Tender Series PCR --Pollution Control Revenue PCFA --Pollution Control Finance
Authority PFA --Public Facility Authority 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 VRDN --Variable Rate Demand Note
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JULY 31, 1999
<TABLE>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 3,553,677,220
Cash 41,082
Income receivable 21,478,597
TOTAL ASSETS 3,575,196,899
LIABILITIES:
Payable for investments
purchased $ 49,517,581
Income distribution
payable 8,073,431
Accrued expenses 258,625
TOTAL LIABILITIES 57,849,637
Net assets for
3,517,344,252 shares
outstanding $ 3,517,347,262
NET ASSETS CONSIST OF:
Paid in capital $ 3,517,324,839
Undistributed net
investment income 70,408
Accumulated net realized
loss on investments (47,985 )
TOTAL NET ASSETS $ 3,517,347,262
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$2,461,696,849 /
2,461,707,579 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$1,055,650,413 /
1,055,636,673 shares
outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
YEAR ENDED JULY 31, 1999
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 115,236,930
EXPENSES:
Investment advisory fee $ 7,008,989
Administrative personnel
and services fee 2,642,389
Custodian fees 122,266
Transfer and dividend
disbursing agent fees and
expenses 221,520
Directors'/Trustees' fees 19,158
Auditing fees 13,513
Legal fees 61,515
Portfolio accounting fees 285,648
Shareholder services fee--
Institutional Shares 6,193,456
Shareholder services fee--
Institutional Service
Shares 2,567,781
Share registration costs 31,335
Printing and postage 45,887
Insurance premiums 338,639
Miscellaneous 24,353
TOTAL EXPENSES 19,576,449
WAIVERS:
Waiver of investment
advisory fee $ (3,652,002 )
Waiver of shareholder
services fee--Institutional
Shares (6,193,456 )
TOTAL WAIVERS (9,845,458 )
Net expenses 9,730,991
Net investment income 105,505,939
Net realized loss on
investments (30,299 )
Change in net assets
resulting from operations $ 105,475,640
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 105,505,939 $ 87,408,505
Net realized gain (loss) on
investments (30,299 ) 131,365
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 105,475,640 87,539,870
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (76,303,750 ) (63,605,236 )
Institutional Service
Shares (29,202,189 ) (23,803,270 )
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (105,505,939 ) (87,408,506 )
SHARE TRANSACTIONS:
Proceeds from sale of
shares 19,112,974,988 16,237,569,274
Net asset value of shares
issued to shareholders in
payment of distributions
declared 12,430,534 12,646,067
Cost of shares redeemed (18,828,314,145 ) (15,092,223,527 )
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 297,091,377 1,157,991,814
Change in net assets 297,061,078 1,158,123,178
NET ASSETS:
Beginning of period 3,220,286,184 2,062,163,006
End of period (including
undistributed net
investment income of
$70,408 and $(6,573),
respectively) $ 3,517,347,262 $ 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>
YEAR ENDED JULY 31 1999 1998 1997 1996 1995
<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 0.03 0.03 0.03 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03 ) (0.03 ) (0.03 ) (0.03 ) (0.04 )
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 3.14 % 3.50 % 3.49 % 3.55 % 3.64 %
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.55 % 0.55 % 0.55 % 0.56 % 0.59 %
Net investment income 2 2.73 % 3.10 % 3.08 % 3.10 % 3.23 %
Expenses (after waivers) 0.20 % 0.20 % 0.20 % 0.20 % 0.20 %
Net investment income (after waivers) 3.08 % 3.45 % 3.43 % 3.46 % 3.62 %
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $2,461,697 $2,279,770 $1,474,180 $1,514,979 $1,295,458
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
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>
YEAR ENDED JULY 31 1999 1998 1997 1996 1995
<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 0.03 0.03 0.03 0.03
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.03) (0.03) (0.03) (0.03)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.89% 3.25% 3.24% 3.29% 3.39%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.55% 0.55% 0.55% 0.56% 0.59%
Net investment income 2 2.73% 3.10% 3.09% 3.11% 3.34%
Expenses (after waivers) 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income (after waivers) 2.83% 3.20% 3.19% 3.22% 3.48%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $1,055,650 $940,516 $587,983 $406,408 $252,016
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JULY 31, 1999
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 14 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.
Distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to the differing treatment of partnerships. These distributions do
not represent a return of capital for federal income tax purposes. The following
reclassifications have been made to the financial statements:
<TABLE>
<CAPTION>
INCREASE (DECREASE)
UNDISTRIBUTED ACCUMULATED
NET NET REALIZED
INVESTMENT LOSS ON
PAID-IN CAPITAL INCOME INVESTMENTS
<S> <C> <C>
$(19,413) $76,981 $(57,568)
</TABLE>
Net investment income, net realized gains/losses and net assets were not
affected by this reclassification.
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, 1999, the Fund, for federal tax purposes, had a capital loss
carryforward of $43,005, which will reduce the Fund's taxable income arising
from future net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of the distributions to shareholders
which would otherwise be necessary to relieve the Fund of any liability for
federal tax. Pursuant to the Code, such capital loss carryforward will expire as
follows:
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
<S> <C>
2005 $17,686
2007 25,319
</TABLE>
Additionally, net capital losses of $4,980 attributable to security transactions
incurred after October 31, 1998, are treated as arising on August 1, 1999, the
first day of the Fund's next taxable year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
RESTRICTED SECURITIES
Restricted securities are securities that may only be resold upon registration
under federal securities laws or in transactions exempt from such registration.
Many restricted securities may be resold in the secondary market in transactions
exempt from registration. In some cases, the restricted securities may be resold
without registration upon exercise of a demand feature. Such restricted
securities may be determined to be liquid under criteria established by the
Board of Trustees (the "Trustees"). The Fund will not incur any registration
costs upon such resales. Restricted securities are valued at amortized cost in
accordance with Rule 2a-7 under the Act.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on 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 July 31, 1999, capital paid-in aggregated $3,517,344,252.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 15,059,862,985 12,763,472,990
Shares issued to
shareholders in payment of
distributions declared 9,142,522 8,791,413
Shares redeemed (14,887,054,802) (11,966,763,689)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 181,950,705 805,500,714
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 4,053,112,003 3,474,096,284
Shares issued to
shareholders in payment of
distributions declared 3,288,012 3,854,654
Shares redeemed (3,941,259,343) (3,125,459,838)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 115,140,672 352,491,100
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 297,091,377 1,157,991,814
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.20% 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 July 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 $5,459,276,817 and $5,013,360,341,
respectively.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000 (UNAUDITED)
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.
CHANGE OF INDEPENDENT AUDITORS
On May 19, 1999, the Trust's Trustees, upon the recommendation of the Audit
Committee of the Trustees, requested and subsequently accepted the resignation
of Arthur Andersen LLP ("AA") as the Trust's independent auditors. AA's reports
on the Trust's financial statements for the fiscal years ended July 31, 1998 and
July 31, 1999 contained no adverse opinion or disclaimer of opinion nor were
they qualified or modified as to uncertainty, audit scope or accounting
principles. During the trust's fiscal years ended July 31, 1998 and July 31,
1999, (i) there were no disagreements with AA on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of AA, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports on the financial statements for such years; and (ii)
there were no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under Securities Act of 1934, as amended.
The Trust, by action of its Trustees, upon the recommendation of the Audit
Committee of the Trustees has engaged Deloitte & Touche LLP ("D&T") as the
independent auditors to audit the Trust's financial statements for the fiscal
year ending July 31, 2000. During the trust's fiscal years ended July 31, 1998
and July 31, 1999, neither the Trust nor anyone on its behalf has consulted D&T
on items which (i) concerned the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Trust's financial statements or (ii)
concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Item 304 of Regulation S-K) of reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Report of Independent Public Accountants
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
TAX-FREE OBLIGATIONS FUND:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Obligations Fund (an investment portfolio of Money Market Obligations Trust, a
Massachusetts business trust), including the portfolio of investments, as of
July 31, 1999, the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July,
31, 1999, by correspondence with the custodian and brokers. As to confirmation
replies not received, we carried out alternative auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Obliations Fund (an investment portfolio of Money Market Obliations
Trust) as of July 31, 1999, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
September 28, 1999
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
JOHN F. CUNNINGHAM
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
WILLIAM D. DAWSON, III
Chief Investment Officer
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
ANNUAL REPORT
Tax-Free Obligations Fund
ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1999
[Graphic]
Federated
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
G02711-01 (9/99)
[Graphic]
ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders of Treasury
Obligations Fund, a portfolio of Money Market Obligations Trust, which covers
the 12-month period from August 1, 1998 through July 31, 1999. The report begins
with an investment review by the fund's portfolio manager on the short-term
treasury market. Following the investment review are the fund's portfolio of
investments and its 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 approximately $11.0 billion.
Over the 12-month reporting period, the fund paid dividends totaling $0.05 per
share to shareholders of the fund's Institutional Shares, Institutional Service
Shares and Institutional Capital Shares. On the last day of the reporting
period, the 7-day net yields for Institutional Shares, Institutional Service
Shares and Institutional Capital Shares were 4.79%, 4.54% and 4.69%,
respectively, while the 30-day net yields were 4.71%, 4.46% and 4.61%,
respectively. 2
Thank you for your confidence in the daily earning power of Treasury Obligations
Fund. As always, your questions and comments are always welcome.
Sincerely,
[Graphic]
J. Christopher Donahue
President
September 15, 1999
1 An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
money market funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the fund.
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 Services, 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.
The reporting period opened at the height of the economic crises in Asia, Latin
America, and Russia, and amid rumors of the troubles at Long Term Capital
Management. In spite of considerable signs of strength in the domestic economy,
these developments introduced vulnerability into our own domestic equity market,
causing a dramatic flight to quality to the U.S. treasury market. Prompt,
assertive action by the Federal Reserve Board (the "Fed") in the form of three,
25 basis point easing steps over September, October, and November of 1998
relaxed the credit and liquidity strains evident in the financial markets. As a
result, the economy entered 1999 with momentum in the midst of relative market
stability.
Relentless consumer spending and a robust housing market drove growth to 3.70%,
6.00%, and 4.30% in the third and fourth quarters of 1998 and the first quarter
of 1999, respectively. The market's attention returned to economic fundamentals,
as this pace clearly exceeded measures of the non- inflationary potential of the
economy. Although overall signs of inflation remained benign, interest rates
rose across the yield curve as expectations built that the Fed would need to
tighten monetary policy to preempt pressures down the road. By the time of
Chairman Greenspan's testimony before the Joint Economic Committee later in
June, where he hinted that it may be appropriate for the Fed to take back some
of the liquidity that had been infused into the market in the fourth quarter of
1998, market expectations reflected the inevitable near-term tightening with
more to follow. As a result, when the Fed opted a tightening of 25 basis points
on June 30th, but announced a neutral intermeeting policy stance, the market
took this as a sign that additional tightenings may not be forthcoming. This
relief was short-lived, however, as Chairman Greenspan indicated in his Humphrey
Hawkins testimony before Congress later in July that the Fed was prepared to
continue to act preemptively against the threat of inflation. The reporting
period closed amid the belief that the Fed would likely tighten incrementally
again at the August 24th Federal Open Market Committee meeting.
Movements in short-term interest rates reflected the pronounced shifts in market
sentiment over the reporting period. The one-year treasury bill, for example,
began last August at 5.40%, then plummeted to a low of 3.86% by mid-October, as
investors flocked to U.S. treasuries as a safe haven from the turbulence in
other markets. As the monetary policy easings by the Fed calmed the markets and
the economy returned to center stage, the yield climbed to end the reporting
period at nearly 5.20%.
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. Ratings are subject to change, and do not remove
market risks.
The fund was generally managed within a 40 to 50 day average maturity target
range over the reporting period, moving within the range according to relative
value opportunities. In the fourth quarter of 1998, however, the fund's average
maturity temporarily drifted as low as 25 days as the massive inflows to U.S.
treasuries drove yields on these securities to extremely expensive levels. When
market calm returned, we moved the fund back to within our target range. The
fund's purchases emphasized treasury notes and repurchase agreements, as the
treasury bill sector remained well- bid over the reporting period. The fund's
structure was barbelled, with a significant position in short-term repurchase
agreements combined with purchases of treasury securities maturing in six to 13
months.
Looking forward, we would expect that the need for the Fed to tighten further by
the end of the year will depend on economic statistics and inflationary
indications in the upcoming weeks, as well as the degree of concern for
potential Y2K disruptions of financial markets.
Shareholder Meeting Results
A Special Meeting of Shareholders of Treasury Obligations Fund was held on June
24, 1999. On April 26, 1999, the record date for shareholders voting at the
meeting, there were 11,389,795,002 total outstanding shares. The following items
were considered by shareholders and the results of their voting were as follows:
AGENDA ITEM 1
Election of Trustees: 1
WITHHELD
AUTHORITY
NAMES FOR TO VOTE
John F. Cunningham 5,925,546,737 2,958,818
Charles F. Mansfield, Jr. 5,925,700,881 2,804,674
John S. Walsh 5,925,700,881 2,804,674
1 The following Trustees continued their terms as Trustees: John F.
Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D.,
Peter E. Madden, John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts.
AGENDA ITEM 2
Ratification of the selection of Arthur Andersen LLP as the trust's independent
auditors:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,804,552,126 118,150,873 5,802,555
The meeting was adjourned to August 11, 1999 with respect to the following
items. The following items were considered by shareholders and the results of
their voting were as follows:
AGENDA ITEM 3
To make changes to the fund's fundamental investment policies:
(a) To amend the fund's fundamental investment policy regarding diversification:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,607,078,540 139,238,352 182,188,663
(b) To amend the fund's fundamental investment policy regarding borrowing money
and issuing senior securities:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,593,922,927 153,779,497 180,803,131
(c) To amend the fund's fundamental investment policy regarding investing in
real estate:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,649,843,010 119,563,734 159,098,811
(d) To amend the fund's fundamental investment policy regarding investing in
commodities:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,655,818,877 113,951,482 158,735,196
(e) To amend the fund's fundamental investment policy regarding underwriting
securities:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,629,623,379 138,332,689 160,549,487
(f) To amend the fund's fundamental investment policy regarding lending assets:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,652,316,302 114,654,966 161,534,287
(g) To amend the fund's fundamental investment policy regarding concentration of
the fund's investments in the securities of companies in the same industry:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,611,654,227 160,693,949 156,157,379
(h) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding pledging assets:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,597,368,328 1,776,101,027 155,036,200
(i) To amend, and to make non-fundamental, the fund's fundamental investment
policy regarding buying securities on margin:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,622,038,539 151,322,395 155,144,621
AGENDA ITEM 4
To eliminate the fund's fundamental investment policy regarding selling
securities short:
ABSTENTIONS
AND BROKER
FOR AGAINST NON-VOTES
5,617,773,898 154,802,402 155,929,255
Portfolio of Investments
JULY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM U.S. TREASURY
OBLIGATIONS -22.6%
U.S. TREASURY BILLS-0.3% 1
$ 35,500,000 4.470%, 3/30/2000 $ 34,433,284
U.S. TREASURY NOTES-22.3%
1
2,436,500,000 5.375% - 7.750%, 8/31/1999
- 7/31/2000 2,449,139,498
TOTAL SHORT-TERM
U.S. TREASURY OBLIGATIONS 2,483,572,782
REPURCHASE AGREEMENTS-
77.2% 2
545,000,000 ABN AMRO Chicago Corp.,
5.070%, dated 7/30/1999,
due 8/2/1999 545,000,000
95,000,000 Banc One Capital Markets,
5.050%, dated 7/30/1999,
due 8/2/1999 95,000,000
100,000,000 Barclays de Zoete Wedd
Securities, Inc., 5.000%,
dated 7/30/1999,
due 8/2/1999 100,000,000
535,000,000 Barclays de Zoete Wedd
Securities, Inc., 5.080%,
dated 7/30/1999,
due 8/2/1999 535,000,000
145,000,000 Bear, Stearns and Co.,
5.090%, dated 7/30/1999,
due 8/2/1999 145,000,000
275,000,000 CIBC Wood Gundy Securities
Corp., 5.060%, dated
7/30/1999, due 8/2/1999 275,000,000
195,000,000 CIBC Wood Gundy Securities
Corp., 5.080%, dated
7/30/1999, due 8/2/1999 195,000,000
266,000,000 3 Credit Suisse First
Boston, Inc., 4.830%,
dated 6/1/1999, due
8/30/1999 266,000,000
350,000,000 Deutsche Bank Government
Securities, Inc., 5.070%,
dated 7/30/1999,
due 8/2/1999 350,000,000
451,475,000 Deutsche Bank Government
Securities, Inc., 5.080%,
dated 7/30/1999,
due 8/2/1999 451,475,000
535,000,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.060%, dated 7/30/1999,
due 8/2/1999 535,000,000
120,000,000 First Union Capital
Markets, 5.070%, dated
7/30/1999, due 8/2/1999 120,000,000
535,000,000 Goldman Sachs Group, LP,
5.060%, dated 7/30/1999,
due 8/2/1999 535,000,000
173,000,000 3 Merrill Lynch Government
Securities, 4.760%, dated
5/12/1999, due 8/10/1999 173,000,000
132,000,000 3 Merrill Lynch Government
Securities, 4.900%, dated
5/28/1999, due 8/30/1999 132,000,000
341,000,000 3 Morgan Stanley Group,
Inc., 4.960%, dated
7/26/1999, due 8/25/1999 341,000,000
475,000,000 Paribas Corp., 5.080%,
dated 7/30/1999, due
8/2/1999 475,000,000
475,000,000 Salomon Brothers, Inc.,
5.080%, dated 7/30/1999,
due 8/2/1999 475,000,000
475,000,000 Societe Generale
Securities Corp., 5.070%,
dated 7/30/1999, due
8/2/1999 475,000,000
501,165,000 Societe Generale, New
York, 5.060%, dated
7/30/1999, due 8/2/1999 501,165,000
125,000,000 State Street, 5.060%,
dated 7/30/1999, due
8/2/1999 125,000,000
525,000,000 Toronto Dominion Holdings
(USA), Inc., 5.070%, dated
7/30/1999, due 8/2/1999 525,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
continued 2
$ 60,000,000 Warburg Dillon Reed LLC,
4.980%, dated 7/30/1999,
due 8/2/1999 $ 60,000,000
565,000,000 Warburg Dillon Reed LLC,
5.080%, dated 7/30/1999,
due 8/2/1999 565,000,000
475,000,000 Westdeutsche Landesbank
NY, 5.070%, dated
7/30/1999, due 8/2/1999 475,000,000
TOTAL REPURCHASE
AGREEMENTS 8,469,640,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 4 $ 10,953,212,782
</TABLE>
1 Discount rate at time of purchase.
2 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.
3 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days.
4 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($10,974,222,718) at July 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
JULY 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 8,469,640,000
Investments in securities 2,483,572,782
Total investments in
securities, at amortized
cost and value $ 10,953,212,782
Income receivable 58,500,980
Receivable for shares sold 3,097,828
TOTAL ASSETS 11,014,811,590
LIABILITIES:
Payable for shares
redeemed 7,252,487
Income distribution
payable 31,757,253
Payable to Bank 306,808
Accrued expenses 1,272,324
TOTAL LIABILITIES 40,588,872
Net assets for
10,974,222,718 shares
outstanding $ 10,974,222,718
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
$5,477,027,748 /
5,477,027,748 shares
outstanding $1.00
INSTITUTIONAL SERVICE
SHARES:
$5,034,387,608 /
5,034,387,608 shares
outstanding $1.00
INSTITUTIONAL CAPITAL
SHARES:
$462,807,362 / 462,807,362
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 565,056,038
EXPENSES:
Investment advisory fee $ 22,626,298
Administrative personnel
and services fee 8,530,115
Custodian fees 749,319
Transfer and dividend
disbursing agent fees and
expenses 50,316
Directors'/Trustees' fees 67,595
Auditing fees 13,754
Legal fees 38,699
Portfolio accounting fees 769,819
Shareholder services fee-
Institutional Shares 14,438,651
Shareholder services fee-
Institutional Service
Shares 12,980,684
Shareholder services fee-
Institutional Capital
Shares 863,537
Share registration costs 49,931
Printing and postage 39,518
Insurance premiums 28,736
Miscellaneous 55,936
TOTAL EXPENSES 61,302,908
WAIVERS:
Waiver of investment
advisory fee $ (9,896,725)
Waiver of shareholder
services fee-Institutional
Shares (14,438,651)
Waiver of shareholder
services fee-Institutional
Capital Shares (518,122)
TOTAL WAIVERS (24,853,498)
Net expenses 36,449,410
Net investment income $ 528,606,628
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 528,606,628 $ 510,741,482
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (276,806,316) (283,582,801)
Institutional Service
Shares (235,867,234) (224,897,953)
Institutional Capital
Shares (15,933,078) (2,260,728)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (528,606,628) (510,741,482)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 68,176,770,225 62,011,458,681
Net asset value of shares
issued to shareholders in
payment of distributions
declared 126,585,254 122,517,950
Cost of shares redeemed (67,696,134,650) (59,678,173,575)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 607,220,829 2,455,803,056
Change in net assets 607,220,829 2,455,803,056
NET ASSETS:
Beginning of period 10,367,001,889 7,911,198,833
End of period $ 10,974,222,718 $ 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>
YEAR ENDED JULY 31 1999 1998 1997 1996 1995
<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 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 4.91% 5.54% 5.36% 5.53% 5.50%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.54% 0.55% 0.55% 0.56% 0.56%
Net investment income 2 4.45% 5.05% 4.89% 5.01% 5.06%
Expenses (after waivers) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income
(after waivers) 4.79% 5.40% 5.24% 5.37% 5.42%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $5,477,028 $5,289,871 $4,814,583 $4,649,870 $3,441,068
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
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>
YEAR ENDED JULY 31 1999 1998 1997 1996 1995
<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 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.05) (0.05) (0.05)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 4.65% 5.28% 5.10% 5.26% 5.23%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.54% 0.55% 0.55% 0.56% 0.56%
Net investment income 2 4.45% 5.05% 4.93% 5.01% 5.42%
Expenses (after waivers) 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income (after waivers) 4.54% 5.15% 5.03% 5.12% 5.53%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $5,034,388 $5,045,428 $3,054,110 $1,516,839 $543,855
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
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>
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 0.05 0.05 0.02
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) (0.05) (0.02)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 4.81% 5.43% 1.58%
RATIOS TO AVERAGE NET ASSETS:
Expenses 3 0.54% 0.55% 0.55% 4
Net investment income 3 4.37% 5.05% 5.17% 4
Expenses (after waivers) 0.30% 0.30% 0.30% 4
Net investment income (after waivers) 4.61% 5.30% 5.42% 4
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $462,807 $31,703 $42,505
</TABLE>
1 Reflects operations for the period from April 14, 1997 (date of initial public
investment) to July 31, 1997.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
JULY 31, 1999
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 14 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. At July 31, 1999, capital paid-in aggregated $10,974,222,718.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 33,252,567,453 29,392,382,133
Shares issued to
shareholders in payment of
distributions declared 52,447,463 45,925,317
Shares redeemed (33,117,858,112) (28,963,019,841)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 187,156,804 475,287,609
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL SERVICE
SHARES:
Shares sold 32,219,870,036 31,821,116,897
Shares issued to
shareholders in payment of
distributions declared 71,770,419 74,615,681
Shares redeemed (32,302,680,974) (29,904,414,631)
NET CHANGE RESULTING FROM
INSTITUTIONAL SERVICE
SHARE TRANSACTIONS (11,040,519) 1,991,317,947
<CAPTION>
YEAR ENDED JULY 31 1999 1998
<S> <C> <C>
INSTITUTIONAL CAPITAL
SHARES:
Shares sold 2,704,332,736 797,959,651
Shares issued to
shareholders in payment of
distributions declared 2,367,372 1,976,952
Shares redeemed (2,275,595,564) (810,739,103)
NET CHANGE RESULTING FROM
INSTITUTIONAL CAPITAL SHARE
TRANSACTIONS 431,104,544 (10,802,500)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 607,220,829 2,455,803,056
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.20% 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. For the
period ended July 31, 1999, the Institutional Shares did not incur a shareholder
services fee. 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 (UNAUDITED)
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.
CHANGE OF INDEPENDENT AUDITORS
On May 19, 1999, the Trust's Trustees, upon the recommendation of the Audit
Committee of the Trustees, requested and subsequently accepted the resignation
of Arthur Andersen LLP ("AA") as the Trust's independent auditors. AA's reports
on the Trust's financial statements for the fiscal years ended July 31, 1998 and
July 31, 1999 contained no adverse opinion or disclaimer of opinion nor were
they qualified or modified as to uncertainty, audit scope or accounting
principles. During the Trust's fiscal years ended July 31, 1998 and July 31,
1999, (i) there were no disagreements with AA on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of AA, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports on the financial statements for such years; and (ii)
there were no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Act of 1934, as amended.
The Trust, by action of its Trustees, upon the recommendation of the Audit
Committee of the Trustees, has engaged Deloitte & Touche LLP ("D&T") as the
independent auditors to audit the Trust's financial statements for the fiscal
year ending July 31, 2000. During the Trust's fiscal years ended July 31, 1998
and July 31, 1999, neither the Trust nor anyone on its behalf has consulted D&T
on items which (i) concerned the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Trust's financial statements or (ii)
concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Item 304 of Regulation S-K) of reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Independent Auditors' Report
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
TREASURY OBLIGATIONS FUND:
We have audited the accompanying statement of assets and liabilities of Treasury
Obligations Fund (an investment portfolio of Money Market Obligations Trust, a
Massachusetts business trust), including the portfolio of investments as of July
31, 1999, the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at July
31, 1999, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Treasury Obligations Fund (an investment portfolio of Money Market Obligations
Trust) as of July 31, 1999, the results of its operations for the fiscal year
then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
Arthur Andersen LLP
Boston, Masssachusetts
September 28, 1999
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
JOHN F. CUNNINGHAM
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
WILLIAM D. DAWSON, III
Chief Invesment Officer
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
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Federated
World-Class Investment Manager
ANNUAL REPORT
Treasury Obligations Fund
ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1999
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Federated
Treasury Obligations Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N500
Cusip 60934N872
Cusip 60934N823
G00645-07 (9/99)
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