SEMI-ANNUAL REPORT
President's Message
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders of Liquid Cash
Trust, a portfolio of Money Market Obligations Trust. The report covers the
first half of the fund's fiscal year, which is the six-month period from April
1, 1999 through September 30, 1999. It begins with the portfolio manager's
investment review of the economy and its impact on the overnight markets.
Following the investment review are the fund's portfolio holdings and the
financial statements.
Liquid Cash Trust offers depository institutions a quality liquid, overnight
investment. 1 The fund is currently rated Aaa by Moody's Investors Service and
invests exclusively in first tier securities.2 At the close of the reporting
period, the portfolio was invested exclusively in repurchase agreements fully
collateralized by U.S. government and/or agency obligations.
The fund's 7-day net yield on September 30, 1999 was 5.18%. 3 Dividends paid to
shareholders during the six-month reporting period totaled $0.02 per share. At
the end of the reporting period, net assets totaled $316.4 million.
Thank you for selecting this quality fund for your overnight investment needs.
As always, we welcome your questions or comments.
Sincerely,
[Graphic]
J. Christopher Donahue
President
November 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 Money market funds and bond funds rated Aaa by Moody's Investors Service are
judged to be of an investment quality similar to Aaa-rated fixed income
obligations; that is, they are judged to be of the best quality. Ratings are
subject to change and do not remove market risk.
3 Past performance is no guarantee of future results. Yield will vary. Yields
quoted for money market funds most closely reflect the fund's current earnings.
Investment Review
Liquid Cash Trust is a short-term money market fund which pursues stability of
principal and current income and is utilized by depository institutions as an
overnight liquid investment alternative for overall asset management programs.
The fund is rated Aaa by Moody's Investors Service and its investments are
restricted to federal funds ("Fed Funds") sold and repurchase agreements
("repo"). The fund's Aaa rating limits its Fed Funds and repo counterparties to
only the highest credit rated dealer firms and banks and requires proper
diversification daily.
The fund is managed to have a very short average maturity of one to seven days
and invests primarily in Fed Funds and repo on an overnight basis. The fund may
also invest in term repo maturing in up to three months.
Relentless consumer spending and a robust housing market drove growth of 4.30%
in the first quarter of 1999. This came on the heels of a vigorous 6.00% pace of
growth in the fourth quarter of 1998. Such evidence of hearty growth clearly
exceeded measures of the non-inflationary potential of the economy, although
overall signs of inflation remained benign. Against this backdrop, and in spite
of the fact that second quarter growth dropped to 1.80%, interest rates rose
across the yield curve in the first few months of the reporting period as
expectations built that the Federal Reserve Board (the "Fed") would need to
tighten monetary policy to preempt price pressures down the road. As a result,
when the Fed announced a 25 basis point hike in the federal funds target rate
from 4.75% to 5.00% on June 30th, the market already had reflected the
inevitable tightening. Although the market breathed a sigh of relief after the
move when it appeared that additional policy moves might not be forthcoming,
this relief proved to be short-lived. Economic data in the third quarter pointed
to continued robust growth, and combined with hawkish statements from a variety
of Fed officials, interest rates ticked up once more. The Fed confirmed this
expectation with an additional 25 basis point tightening at the August 24th
Federal Open Market Committee meeting ("FOMC") bringing the federal funds target
rate to its current 5.25% level. The reporting period ended on a relatively calm
note, however, with expectations that two policy moves by the Fed would be
sufficient for a time to contain inflationary pressures. The market's perception
was validated when the Fed announced no policy change at its October 5th FOMC
meeting, although it did announce an intermeeting tightening bias at that time.
The fund's yield tracked the changes in monetary policy over the reporting
period. During this time, repo agreements traded closely with rates offered on
Fed Funds and remained a preferred investment because of their collateralized
nature.
Portfolio of Investments
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
100.4% 1
$ 12,000,000 ABN AMRO, Inc., 5.320%,
dated 9/30/1999, due
10/1/1999 $ 12,000,000
12,000,000 Banc One Capital Markets,
5.280%, dated 9/30/1999,
due 10/1/1999 12,000,000
37,000,000 Bank of America, 5.500%,
dated 9/30/1999, due
10/1/1999 37,000,000
12,000,000 Barclays Capital, Inc.,
5.300%, dated 9/30/1999,
due 10/1/1999 12,000,000
12,000,000 Bear, Stearns and Co.,
5.500%, dated 9/30/1999,
due 10/1/1999 12,000,000
12,000,000 CIBC Wood Gundy Securities
Corp., 5.300%, dated
9/30/1999, due 10/1/1999 12,000,000
6,000,000 2 Credit Suisse First
Boston, Inc., 5.280%,
dated 8/31/1999, due
10/1/1999 6,000,000
12,000,000 Deutsche Bank Financial,
Inc., 5.500%, dated
9/30/1999, due 10/1/1999 12,000,000
12,000,000 Donaldson, Lufkin and
Jenrette Securities Corp.,
5.300%, dated 9/30/1999,
due 10/1/1999 12,000,000
12,000,000 First Union Capital
Markets, 5.320%, dated
9/30/1999, due 10/1/1999 12,000,000
12,000,000 Goldman Sachs Group, LP,
5.220%, dated 9/30/1999,
due 10/1/1999 12,000,000
12,000,000 J.P. Morgan & Co., Inc.,
5.300%, dated 9/30/1999,
due 10/1/1999 12,000,000
12,000,000 Morgan Stanley Group,
Inc., 5.350%, dated
9/30/1999, due 10/1/1999 12,000,000
10,000,000 PaineWebber Group, Inc.,
5.450%, dated 9/30/1999,
due 10/1/1999 10,000,000
12,000,000 Paribas Corp., 5.430%,
dated 9/30/1999, due
10/1/1999 12,000,000
12,000,000 Prudential Securities,
Inc., 5.480%, dated
9/30/1999, due 10/1/1999 12,000,000
12,000,000 Scotia McLeod (USA), Inc.,
5.300%, dated 9/30/1999,
due 10/1/1999 12,000,000
12,000,000 Societe Generale
Securities Corp., 5.300%,
dated 9/30/1999, due
10/1/1999 12,000,000
12,000,000 Toronto Dominion
Securities (USA), Inc.,
5.300%, dated 9/30/1999,
due 10/1/1999 12,000,000
60,800,000 Warburg Dillon Reed LLC,
5.310%-5.480%, dated
9/30/1999, due 10/1/1999 60,800,000
12,000,000 Westdeutsche Landesbank
Girozentrale, 5.300%,
dated 9/30/1999, due
10/1/1999 12,000,000
TOTAL REPURCHASE
AGREEMENTS 317,800,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 317,800,000
</TABLE>
1 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.
2 Although final maturity falls beyond seven days, a liquidity feature is
included in each transaction to permit termination of the repurchase agreement
within seven days if the creditworthiness of the issuer is downgraded.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($316,427,031) at September 30, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 317,800,000
Cash 5,588
Income receivable 72,858
Prepaid expenses 3,670
TOTAL ASSETS 317,882,116
LIABILITIES:
Income distribution
payable $ 1,455,085
TOTAL LIABILITIES 1,455,085
Net assets for 316,427,031
shares outstanding $ 316,427,031
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$316,427,031 / 316,427,031
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 9,997,595
EXPENSES:
Investment advisory fee $ 793,506
Administrative personnel
and services fee 149,576
Custodian fees 19,584
Transfer and dividend
disbursing agent fees and
expenses 20,214
Directors'/Trustees' fees 7,107
Auditing fees 6,873
Legal fees 4,463
Portfolio accounting fees 37,753
Share registration costs 9,886
Printing and postage 17,214
Insurance premiums 1,518
Miscellaneous 8,596
TOTAL EXPENSES 1,076,290
WAIVERS:
Waiver of investment
advisory fee (768,840)
Net expenses 307,450
Net investment income $ 9,690,145
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
SEPTEMBER 30, MARCH 31,
1999 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 9,690,145 $ 28,145,191
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (9,690,145) (28,145,191)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 1,829,902,918 4,874,304,605
Net asset value of shares
issued to shareholders in
payment of
distributions declared 5,728,805 20,055,640
Cost of shares redeemed (1,960,372,712) (4,961,987,297)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (124,740,989) (67,627,052)
Change in net assets (124,740,989) (67,627,052)
NET ASSETS:
Beginning of period 441,168,020 508,795,072
End of period $ 316,427,031 $ 441,168,020
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
SEPTEMBER 30, YEAR ENDED MARCH 31,
1999 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.06 0.05 0.06 0.05
LESS DISTRIBUTIONS:
Distributions from
net investment income (0.02) (0.05) (0.06) (0.05) (0.06) (0.05)
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.45% 5.25% 5.59% 5.35% 5.84% 4.88%
RATIOS TO AVERAGE
NET ASSETS:
Expenses 2 0.54% 3 0.52% 0.52% 0.54% 0.54% 0.55%
Net investment
income 2 4.48% 3 4.82% 5.11% 4.88% 5.34% 4.25%
Expenses (after
waivers) 0.15% 3 0.15% 0.15% 0.15% 0.16% 0.16%
Net investment
income (after waivers) 4.87% 3 5.19% 5.48% 5.27% 5.72% 4.64%
SUPPLEMENTAL DATA:
Net assets,
end of period
(000 omitted) $316,427 $441,168 $508,795 $489,363 $595,471 $313,679
</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 waivers had
not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
SEPTEMBER 30, 1999 (UNAUDITED)
ORGANIZATION
Liquid Cash Trust (the "Fund") is registered under the Investment Company Act of
1940, as amended (the "Act"), as an open-end management investment company.
Effective April 26, 1999, the Fund became a portfolio of the Money Market
Obligations Trust (the "Trust"). The Trust consists of 17 portfolios. The
financial statements included herein are only those of the Fund. The financial
statements of the other portfolios are presented separately. The assets of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held. The investment objective of the Fund is
stability of principal and current income consistent with stability of
principal.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund's use of the amortized cost method to value its portfolio securities is
in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Distributions to shareholders are recorded on the ex- dividend
date.
FEDERAL TAXES
It is the Fund's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provision for federal tax is
necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when- issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
September 30, 1999, capital paid-in aggregated $316,427,031.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31,
1999 1999
<S> <C> <C>
Shares sold 1,829,902,918 4,874,304,605
Shares issued to
shareholders in payment of
distributions declared 5,728,805 20,055,640
Shares redeemed (1,960,372,712) (4,961,987,297)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (124,740,989) (67,627,052)
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40% of the Fund's average daily net assets. The Adviser may voluntarily choose
to waive any portion of its fee. The Adviser can modify or terminate this
voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors, Inc. for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. For the
six months ended September 30, 1999, the Fund did not incur a shareholder
services fee.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Fund. The fee paid to FSSC is based on the size, type, and number
of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES
FServ maintains the Fund's accounting records for which it receives a fee. The
fee is based on the level of the Fund's average daily net assets for the period,
plus out-of-pocket expenses.
GENERAL
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
YEAR 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
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
Liquid Cash Trust
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1999
[Graphic]
Federated
Liquid Cash Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N757
8110112 (11/99)
[Graphic]
SEMI-ANNUAL REPORT
[Graphic]
J. CHRISTOPHER DONAHUE
President
Liberty U.S. Government Money Market Trust
President's Message
Dear Shareholder:
Liberty U.S. Government Money Market Trust, a portfolio of Money Market
Obligations Trust, was created in 1980, and I am pleased to present its 19th
Semi-Annual Report. This report covers the first half of the fund's fiscal year
which is the six-month period from April 1, 1999 through September 30, 1999. It
begins with an interview with the fund's portfolio manager, Susan R. Hill, Vice
President of Federated Investment Management Company. Following her discussion
are two additional items of shareholder interest. First is a complete listing of
the fund's holdings, and second is the publication of the fund's financial
statements.
This money market fund keeps your cash pursuing income every day through a
professionally managed portfolio of U.S. government money market securities. In
addition, the fund is managed to keep the value of your principal stable, 1
while giving you daily access to your invested cash. It has accomplished this
goal since its inception.
Dividends paid to shareholders during the six-month period ended September 30,
1999, totaled $0.02 per share for both Class A Shares and Class B Shares. At the
end of the reporting period, the fund's net assets totaled $679 million.
Thank you for selecting Liberty U.S. Government Money Market Trust to keep your
ready cash working and accessible.
As always, we welcome your comments and suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
November 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.
[Graphic]
SUSAN R. HILL, CFA
Vice President
Federated Investment Management Company
Investment Review
WHAT IS YOUR ANALYSIS OF THE RISING RATE ENVIRONMENT THAT CHARACTERIZED THE
FIRST HALF OF THE FUND'S FISCAL YEAR?
Relentless consumer spending and a robust housing market drove growth up 4.30%
in the first quarter of 1999. This came on the heels of a vigorous 6.00% pace of
growth in the fourth quarter of 1998. Such evidence of hearty growth clearly
exceeded measures of the non-inflationary potential of the economy, although
overall signs of inflation remained benign. Against this backdrop, and in spite
of the fact that second quarter growth dropped to 1.80%, interest rates rose
across the yield curve in the first few months of the reporting period, as
expectations built that the Federal Reserve Board (the "Fed") would need to
tighten monetary policy to preempt price pressures down the road. As a result,
when the Fed announced a 25 basis point hike in the Fed Funds Target Rate from
4.75% to 5.00% on June 30, 1999, the market already had reflected the inevitable
tightening. Although the move provided relief, when it seemed that additional
policy moves might not be forthcoming, this relief proved to be short-lived.
Economic data in the third quarter of 1999 pointed to continued robust growth,
and, combined with hawkish statements from a variety of Fed officials, interest
rates ticked up once more. The Fed acknowledged this expectation of growth with
an additional 25 basis point tightening-bringing the Fed Funds Target Rate to
its current 5.25% level-at its August 24, 1999, Federal Open Market Committee
("FOMC") meeting. The reporting period ended on a relatively calm note, however,
with expectations that two policy moves by the Fed would be sufficient for a
time to contain inflationary pressures. The market's perception was validated
when the Fed announced no policy change at its October 5, 1999 FOMC meeting,
although it did announce an intermeeting tightening bias at that time.
Movements in the 90-day agency discount note reflected the shifting market
sentiment over the reporting period. Trading around 4.80% at the beginning of
April, this security's yield rose to 5.10% by the time of the first tightening
by the Fed at the end of June. The yield resumed its upward climb by the end of
July, rising to 5.30% by the time of the second move by the Fed in late August,
and ended the period at around that level.
WHAT STRATEGIES GUIDED LIBERTY U.S. GOVERNMENT MONEY MARKET TRUST DURING THE
SIX-MONTH REPORTING PERIOD?
We managed the portfolio within a 40-50 day average maturity range over the
reporting period, maximizing performance through ongoing relative value
analysis. We added to the fund's position in agency floating rate securities in
order to enhance the portfolio's responsiveness to changes in interest rates. We
also reinforced our position in overnight and short-term repurchase agreements.
AS WE MOVE TOWARD THE END OF 1999, EXPECTATIONS ARE MIXED FOR FURTHER
TIGHTENINGS, OR INCREASES IN RATES, BY THE FED. WHAT DO YOU SEE AHEAD FOR
SHORT-TERM RATES?
In spite of the uncertainties surrounding the year 2000 and what the Fed refers
to as the "century date change," we expect the Fed to remain vigilant against
inflation in the fourth quarter of 1999 and take additional tightening moves if
economic conditions warrant it. As a result, there is the potential for another
25 basis point move at the next FOMC meeting in mid- November, although the
outcome for that meeting is likely to be determined by economic
releases-particularly those reflecting the strength of consumer demand and
inflationary pressures-between now and then.
Shareholder Meeting Results
A Special Meeting of Shareholders of Liberty U.S. Government Money Market Trust
was held on June 25, 1999. On April 27, 1999, the record date for shareholders
voting at the meeting, there were 630,812,043 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>
Thomas G. Bigley 390,668,487 9,052,351
John F. Cunningham 390,758,539 8,962,299
Charles F. Mansfield, Jr. 390,732,116 8,988,722
John E. Murray, Jr., S.J.D. 390,793,187 8,927,651
John S. Walsh 390,735,362 8,985,476
</TABLE>
1 The following Trustees continued their terms as Trustees: John F. Donahue,
John T. Conroy, Jr., Nicholas P. Constantakis, J. Christopher Donahue,
Lawrence D. Ellis, M.D., Peter E. Madden and Marjorie P. Smuts.
AGENDA ITEM 2
To ratify the selection of Arthur Andersen LLP as the fund's independent
auditors:
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
383,254,884 2,037,868 14,428,084
</TABLE>
AGENDA ITEM 3
To approve a proposed Agreement and Plan of Reorganization between the fund and
Money Market Obligations Trust, on behalf of its series, Liberty U.S. Government
Money Market Trust (the "New Fund"), whereby the New Fund would acquire all of
the assets of the fund in exchange for shares of the New Fund to be distributed
pro rata by the fund to its shareholders in complete liquidation and termination
of the fund.
<TABLE>
<CAPTION>
ABSTENTIONS AND
FOR AGAINST BROKER NON-VOTES
<S> <C> <C>
320,916,384 12,852,314 65,952,140
</TABLE>
Portfolio of Investments
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
SHORT-TERM U.S. GOVERNMENT
OBLIGATIONS-50.9%
$ 3,000,000 Federal Farm Credit
System, 5.400%, 7/3/2000 $ 2,996,580
10,000,000 1 Federal Home Loan Bank,
Discount Notes, 5.370%,
2/2/2000 9,815,033
49,000,000 2 Federal Home Loan Bank,
Floating Rate Notes,
5.215% - 5.302%,
10/21/1999 - 5/12/2000 48,994,137
39,800,000 Federal Home Loan Bank,
4.790% - 5.750%, 1/14/2000
- 9/28/2000 39,783,503
62,000,000 1 Federal Home Loan Mortgage
Corp., Discount Notes,
5.110% - 5.530%,
11/17/1999 - 8/4/2000 60,981,375
32,000,000 2 Federal Home Loan Mortgage
Corp., Floating Rate
Notes, 5.186% - 5.320%,
11/17/1999 - 6/22/2000 31,990,147
47,000,000 1 Federal National Mortgage
Association, Discount
Notes, 4.610% - 5.450%,
10/5/1999 - 6/22/2000 46,272,455
37,000,000 2 Federal National Mortgage
Association, Floating Rate
Notes, 5.160% - 5.309%,
11/10/1999 - 12/23/1999 36,987,523
20,000,000 Federal National Mortgage
Association, Notes, 4.780%
- 5.180%,
11/30/1999 - 5/5/2000 19,993,078
48,000,000 2 Student Loan Marketing
Association, Floating Rate
Notes, 5.506% - 5.556%,
11/9/1999 - 8/25/2000 47,987,785
TOTAL SHORT-TERM
U.S. GOVERNMENT
OBLIGATIONS 345,801,616
REPURCHASE AGREEMENTS -
49.2% 3
30,000,000 Bank of America, 5.500%,
dated 9/30/1999, due
10/1/1999 30,000,000
25,000,000 Bear Stearns and Co., Inc.
5.500%, dated 9/30/1999,
due 10/1/1999 25,000,000
11,000,000 Credit Suisse First
Boston, Inc., 5.280%,
dated 8/31/1999, due
10/1/1999 11,000,000
25,000,000 Deutsche Bank Financial,
Inc., 5.500%, dated
9/30/1999, due 10/1/1999 25,000,000
10,000,000 4 Goldman Sachs Group, Inc.,
5.650%, dated 9/20/1999,
due 1/19/2000 10,000,000
19,000,000 4 Goldman Sachs Group, Inc.,
5.650%, dated 9/22/1999,
due 1/21/2000 19,000,000
25,000,000 Morgan Stanley Group,
Inc., 5.350%, dated
9/30/1999, due 10/1/1999 25,000,000
140,000,000 PaineWebber Group, Inc.,
5.450%, dated 9/30/1999,
due 10/1/1999 140,000,000
25,000,000 Paribas Corp., 5.430%,
dated 9/30/1999, due
10/1/1999 25,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
REPURCHASE AGREEMENTS-
continued 3
$ 10,000,000 Prudential Securities,
Inc., 5.480%, dated
9/30/1999, due 10/1/1999 $ 10,000,000
13,800,000 Warburg Dillon Reed LLC,
5.310%, dated 9/30/1999,
due 10/1/1999 13,800,000
TOTAL REPURCHASE
AGREEMENTS 333,800,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 679,601,616
</TABLE>
1 Discount rate at time of purchase.
2 Floating rate notes with current rate and next reset date shown.
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 if the creditworthiness of the issuer is downgraded.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($678,634,932) at September 30, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 679,601,616
Cash 75,692
Income receivable 1,865,116
Receivable for shares sold 85,081
TOTAL ASSETS 681,627,505
LIABILITIES:
Payable for shares
redeemed $ 443,891
Income distribution
payable 2,243,322
Accrued expenses 305,360
TOTAL LIABILITIES 2,992,573
Net assets for 678,634,932
shares outstanding $ 678,634,932
NET ASSET VALUE, OFFERING
PRICE PER SHARE
CLASS A SHARES:
$594,393,139 / 594,393,139
shares outstanding $1.00
CLASS B SHARES:
$84,241,793 / 84,241,793
shares outstanding $1.00
REDEMPTION PROCEEDS PER
SHARE:
Class A Shares $1.00
Class B Shares: (94.50/100
of $1.00) 1 $0.95
</TABLE>
1 Under certain limited conditions, a "Contingent Deferred Sales Charge" of up
to 5.50% may be imposed. See "What Do Shares Cost?" in the Prospectus.
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 16,710,461
EXPENSES:
Investment advisory fee $ 1,626,733
Administrative personnel
and services fee 256,136
Custodian fees 21,706
Transfer and dividend
disbursing agent fees and
expenses 888,433
Directors'/Trustees' fees 7,916
Auditing fees 7,507
Legal fees 4,952
Portfolio accounting fees 55,894
Distribution services fee-
Class B Shares 244,950
Shareholder services fee-
Class A Shares 741,629
Shareholder services fee-
Class B Shares 81,650
Share registration costs 36,652
Printing and postage 128,642
Insurance premiums 2,071
Miscellaneous 25,675
TOTAL EXPENSES 4,130,546
WAIVER:
Waiver of shareholder
services fee-Class A
Shares (444,978)
Net expenses 3,685,568
Net investment income $ 13,024,893
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
SEPTEMBER 30, MARCH 31,
1999 1999
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 13,024,893 $ 27,483,971
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Class A Shares (11,989,187) (26,094,085)
Class B Shares (1,035,706) (1,389,886)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (13,024,893) (27,483,971)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 1,032,873,417 1,604,775,656
Net asset value of shares
issued to shareholders in
payment of
distributions declared 9,254,837 24,223,986
Cost of shares redeemed (1,013,619,809) (1,609,649,454)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 28,508,445 19,350,188
Change in net assets 28,508,445 19,350,188
NET ASSETS:
Beginning of period 650,126,487 630,776,299
End of period $ 678,634,932 $ 650,126,487
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Class A Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
SEPTEMBER 30, YEAR ENDED MARCH 31,
1999 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.02 0.04 0.05 0.04 0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.02) (0.04) (0.05) (0.04) (0.05) (0.04)
NET ASSET VALUE, END
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.04% 4.40% 4.67% 4.43% 4.89% 3.93%
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2 1.18% 3 1.18% 1.28% 1.35% 1.30% 1.12%
Net investment income 2 3.88% 3 4.15% 4.35% 4.04% 4.58% 3.83%
Expenses (after waivers) 1.03% 3 1.02% 1.06% 1.06% 1.10% 1.12%
Net investment income
(after waivers) 4.03% 3 4.31% 4.57% 4.33% 4.78% 3.83%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $594,393 $598,859 $611,630 $658,731 $697,472 $715,257
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Class B Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
SEPTEMBER 30, YEAR ENDED MARCH 31,
1999 1999 1998 1997 1996 1995 1
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.02 0.03 0.04 0.04 0.04 0.01
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.02) (0.03) (0.04) (0.04) (0.04) (0.01)
NET ASSET VALUE, END
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 2 1.58% 3.45% 3.71% 3.59% 4.04% 1.14%
RATIOS TO AVERAGE NET
ASSETS:
Expenses 3 1.93% 4 1.93% 2.03% 2.10% 2.05% 1.95% 4
Net investment income 3 3.13% 4 3.36% 3.60% 3.35% 3.77% 4.15% 4
Expenses (after waivers) 1.93% 4 1.93% 1.98% 1.87% 1.91% 1.95% 4
Net investment income
(after waivers) 3.13% 4 3.36% 3.65% 3.58% 3.91% 4.15% 4
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $84,242 $51,267 $19,146 $28,337 $9,459 $186
</TABLE>
1 Reflects operations for the period from December 17, 1994 (date of initial
public offering) to March 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
SEPTEMBER 30, 1999 (UNAUDITED)
ORGANIZATION
Liberty U.S. Government Money Market Trust (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company. The Fund offers two classes of shares: Class A
Shares and Class B Shares. Effective July 31, 1999, the Fund became a portfolio
of the Money Market Obligations Trust (the "Trust"). The Trust consists of 17
portfolios. The financial statements included herein are only those of the Fund.
The financial statements of the other portfolios are presented separately. The
assets of each portfolio are segregated and a shareholder's interest is limited
to the portfolio in which shares are held. The investment objective of the Fund
is stability of principal and current income consistent with stability of
principal.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Fund uses the amortized cost method to value its portfolio securities in
accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Distributions to shareholders are recorded on the ex- dividend
date.
FEDERAL TAXES
It is the Fund's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
1999 1999
<S> <C> <C>
CLASS A SHARES:
Shares sold 929,187,509 1,432,718,249
Shares issued to
shareholders in payment of
distributions declared 8,643,803 23,198,290
Shares redeemed (942,297,252) (1,468,687,538)
NET CHANGE RESULTING FROM
CLASS A SHARE
TRANSACTIONS (4,465,940) (12,770,999)
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
1999 1999
<S> <C> <C>
CLASS B SHARES:
Shares sold 103,685,908 172,057,407
Shares issued to
shareholders in payment of
distributions declared 611,034 1,025,696
Shares redeemed (71,322,557) (140,961,916)
NET CHANGE RESULTING FROM
CLASS B SHARE
TRANSACTIONS 32,974,385 32,121,187
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 28,508,445 19,350,188
</TABLE>
At September 30, 1999, capital paid-in aggregated $678,634,932.
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 based on
the average daily net assets of the Fund as follows: 0.50% on the first $500
million, 0.475% on the second $500 million, 0.45% on the third $500 million,
0.425% on the fourth $500 million, and 0.40% over $2 billion.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FServ is based on the level of average aggregate daily net assets of all
funds advised by subsidiaries of Federated Investors, Inc. for the period. The
administrative fee received during the period of the Administrative Services
Agreement shall be at least $125,000 per portfolio and $30,000 per each
additional class of shares.
DISTRIBUTION SERVICES FEE
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act. Under the terms of the Plan, the Fund will compensate Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of the
Fund to finance activities intended to result in the sale of the Fund's Class B
Shares. The Plan provides that the Fund may incur distribution expenses up to
0.75% of the average daily net assets of the Class B Shares annually, to
compensate FSC.
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 Fund are Officers and Directors or
Trustees of the above companies.
YEAR 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
CHANGE OF INDEPENDENT AUDITORS
On May 19, 1999, the Fund'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 Fund's independent auditors. AA's report on
the Fund's financial statements for the fiscal years ended March 31, 1998 and
March 31, 1999, contained no adverse opinion or disclaimer of opinion, nor was
it qualified or modified as to uncertainty, audit scope or accounting
principles. During the Fund's fiscal years ended March 31, 1998 and March 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 report on the financial statements for such period, 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 Fund, 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 Fund's financial statements for the fiscal
year ending March 31, 2000. During the fiscal years ended March 31, 1998 and
March 31, 1999, neither the Fund, nor anyone on the Fund's 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 Fund'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) or reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Directors
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
Officers
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
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
SEMI-ANNUAL REPORT
AS OF SEPTEMBER 30, 1999
Liberty U.S. Government Money Market Trust
Established 1980
19TH SEMI-ANNUAL REPORT
[Graphic]
Federated
Liberty U.S. Government Money Market Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N732
Cusip 60934N724
8110106 (11/99)
[Graphic]
