SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Master Trust, which covers the six-month period from December 1, 1998 through
May 31, 1999. Effective April 26, 1999, the Trust became a portfolio of Money
Market Obligations Trust. The report contains commentary by the Trust's
portfolio manager, followed by a complete listing of the Trust's investments on
the last day of the reporting period, and its financial statements.
The Trust pursues competitive daily income, along with daily liquidity and
stability of principal, 1 through a diversified portfolio of money market
securities. At the end of the reporting period, the portfolio was diversified
among commercial paper (43.8%), repurchase agreements (12.3%), variable rate
instruments (23.5%), corporate notes (5.6%), loan participation (9.5%) and
certificates of deposit (5.4%).
Dividends paid monthly to shareholders during the reporting period totaled $0.02
per share. At the end of the reporting period, the Trust's net assets totaled
$404.9 million.
Thank you for selecting Federated Master Trust as a daily cash investment. As
always, we welcome your comments and suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
July 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 Trust.
Investment Review
Federated Master Trust invests in money market instruments maturing in 13 months
or less. The average maturity of these securities, computed on a dollar-weighted
basis, is restricted to 90 days or less. Portfolio securities must be rated in
the highest short-term rating category by one or more of the nationally
recognized statistical rating organizations or be of comparable quality to
securities having such ratings. Typical security types include, but are not
limited to, commercial paper, certificates of deposit, time deposits, variable
rate instruments and repurchase agreements.
Economic growth for the end of 1998 and the first part of 1999 was robust,
despite slowing foreign economies. Fourth quarter 1998 gross domestic product
("GDP") registered 3.90% and first quarter 1999 GDP climbed to 4.50%. Despite
the high growth, inflation remained subdued by all measures. The Consumer Price
Index ("CPI") 1 rose just 2.80% on an annualized basis for the six months ended
May 31, 1999, and the Producer Price Index ("PPI")2 grew at 2.60% during the
same period. The Employment Cost Index3 grew at an annualized 2.00% pace during
the last quarter of 1998 and into the first quarter of 1999.
Thirty-day commercial paper started the period at 5.00% on December 1, 1998, and
then rose as high as 5.51% on December 30, 1998, reflecting year-end technical
pressures. Rates fell back off again in January 1999, with 30-day commercial
paper settling in at the 4.75% federal funds target rate, and ended the
reporting period at 4.86%.
The money market yield curve steepened throughout the reporting period. One
month commercial paper rates declined 14 basis points while six month rates rose
11 basis points reflecting the concern in the market about the strength in the
U.S. domestic consumer and housing markets and the concern that the Federal
Reserve Board (the "Fed") may need to address this strength by raising rates.
The trust's target average maturity range remained in the 45-55 day target range
for the entire reporting period, reflecting a positive position regarding Fed
policy and the money market yield curve. In structuring the trust, there was
continued emphasis placed on positioning 30%-35% of the trust's assets in
variable rate demand notes and accomplishing a modest barbell structure.
During the six months ended May 31, 1999, the net assets of Federated Master
Trust decreased from $465.1 million to $404.9 million while the 7- day net yield
decreased from 4.93% to 4.54%. 4 The effective average maturity of the trust on
May 31, 1999, was 58 days.
1 The CPI is a measure of change in consumer prices, as determined by a monthly
survey of the U.S. Bureau of Labor Statistics.
2 The PPI is a measure of change in wholesale prices, as released monthly by the
U.S. Bureau of Labor Statistics.
3 The Employment Cost Index is an index designed to measure the change in the
cost of labor, free from the influence of employment shifts among occupations
and industries, based on the changes in (1) wages and salaries, and (2) employee
benefits.
4 Performance quoted represents past performance and is not indicative of future
results. Yields will vary. Yields quoted for money market funds most closely
reflect the trust's current earnings.
Last Meeting of Shareholders
A Special Meeting of shareholders of Federated Master Trust was held on March
22, 1999. On January 21, 1999, the record date for shareholder voting at the
meeting, there were 475,899,717 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:
SHARES
VOTED SHARES
AFFIRMATIVELY WITHHELD
Thomas G. Bigley 239,440,136 8,316,773
John T. Conroy, Jr. 239,446,989 8,309,920
Nicholas P. Constantakis 239,508,610 8,248,299
John F. Cunningham 239,508,610 8,248,299
J. Christopher Donahue 239,508,610 8,248,299
Peter E. Madden 239,508,610 8,248,299
Charles F. Mansfield, Jr. 239,508,610 8,248,299
John E. Murray, Jr. 239,508,610 8,248,299
John S. Walsh 239,508,610 8,248,299
The following Trustees of the trust continued their terms as Trustees: John
F. Donahue, Lawrence D. Ellis, M.D. and Majorie P. Smuts.
AGENDA ITEM 2
To ratify the selection of Deloitte & Touche LLP as the trust's independent
auditors:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
241,690,314 177,007 5,889,588
AGENDA ITEM 3
To make changes to the trust's fundamental investment policies:
(a) To approve amending the trust's fundamental investment policy with regard to
diversification of its investments:
SHARED SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,600,480 1,122,829 6,029,333
(b) To approve making non-fundamental, and amending, the trust's fundamental
investment policy regarding maturity of money market instruments:
SHARES SHARED
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,626,793 1,041,530 6,084,319
(c) To approve making non-fundamental the trust's policy prohibiting investment
in securities to exercise control of an issuer:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,391,017 1,201,229 6,160,396
(d) To approve making non-fundamental, and amending, the trust's ability to
invest in the securities of other investment companies:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,531,830 1,120,683 6,100,129
(e) To approve making non-fundamental the trust's policy regarding types of
money market instruments which the trust is permitted to purchase:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,287,315 1,387,298 6,078,030
(f) To approve making non-fundamental the trust's ability to invest in unrated
securities:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
239,867,341 1,765,604 6,119,698
(g) To approve making non-fundamental the trust's policy regarding the
description of bank instruments that the trust may purchase:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,378,362 1,111,479 6,262,801
(h) To approve making non-fundamental the trust's policy regarding the
description of commercial paper that the trust may purchase:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,383,853 1,197,909 6,170,880
(i) To approve making non-fundamental, and amending, the trust's policy
regarding pledging assets to secure permitted borrowings:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,236,708 1,402,904 6,113,031
AGENDA ITEM 4
To eliminate the trust's fundamental investment policy on concentration and to
reserve freedom to concentrate investments in the domestic banking industry:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,148,874 1,577,170 6,026,598
AGENDA ITEM 5
To approve an amendment and restatement to the trust's Declaration of Trust to
require the approval by a "1940 Act" majority of shareholders in the event of
the sale or conveyance of the assets of the trust to another trust or
corporation:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,522,889 1,170,584 6,059,169
AGENDA ITEM 6
To approve a proposed Agreement and Plan of Reorganization between the trust and
Money Market Obligations Trust, on behalf of its series, Federated Master Trust
(the "New Fund"), whereby the New Fund would acquire all of the assets of the
trust in exchange for shares of the New Fund to be distributed pro rata by the
trust to its shareholders in complete liquidation and termination of the trust:
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
240,234,717 1,508,815 6,009,110
Portfolio of Investments
MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
CERTIFICATE OF DEPOSIT-5.4%
BANKING-5.4%
$ 5,000,000 Bank of Montreal, 5.250%,
5/12/2000 $ 4,997,719
10,000,000 Canadian Imperial Bank of
Commerce, 5.030% - 5.340%,
1/27/2000 - 3/3/2000 9,996,503
2,000,000 Svenska Handelsbanken,
Stockholm, 5.180%,
3/20/2000 1,999,536
5,000,000 UBS AG, 4.939% - 5.300%,
1/13/2000 - 3/10/2000 5,001,506
TOTAL CERTIFICATE OF
DEPOSIT 21,995,264
COMMERCIAL PAPER-42.1% 1
BANKING-13.5%
20,000,000 Abbey National N.A. Corp.,
(Guaranteed by Abbey
National Bank PLC,
London), 5.139%,
11/26/1999 19,510,500
12,263,000 Fountain Square Commercial
Funding Corp., (Fifth
Third Bank, Cincinnati
Support Agreement), 4.950%
- 5.076%, 6/1/1999 -
10/4/1999 12,180,586
18,000,000 Greenwich Funding Corp.,
4.847% - 5.119%, 6/1/1999 -
2/1/2000 17,913,103
5,000,000 UBS Finance (Delaware),
Inc., (UBS AG LOC), 5.042%,
12/23/1999 4,861,625
TOTAL 54,465,814
BROKERAGE-8.4%
23,000,000 Morgan Stanley, Dean
Witter & Co., 4.904%,
6/4/1999 22,990,685
11,000,000 Salomon Smith Barney
Holdings, Inc., 4.891%,
6/4/1999 10,995,563
TOTAL 33,986,248
FINANCE - COMMERCIAL-20.2%
13,000,000 Asset Securitization
Cooperative Corp., 4.827%
- 4.913%, 6/3/1999 -
7/15/1999 12,968,045
1,000,000 Beta Finance, Inc.,
4.895%, 7/6/1999 995,338
20,000,000 Falcon Asset
Securitization Corp.,
4.825% - 4.837%, 6/3/1999 -
6/10/1999 19,988,651
16,000,000 General Electric Capital
Corp., 4.832% - 4.970%,
6/2/1999 - 8/9/1999 15,924,871
5,000,000 PREFCO-Preferred
Receivables Funding Co.,
4.827%, 6/3/1999 4,998,667
8,000,000 Receivables Capital Corp.,
4.891%, 7/7/1999 7,961,120
19,000,000 Sheffield Receivables
Corp., 4.852% - 4.907%,
6/16/1999 - 7/15/1999 18,935,821
TOTAL 81,772,513
TOTAL COMMERCIAL PAPER 170,224,575
CORPORATE NOTES-5.6%
FINANCE - COMMERCIAL-5.2%
21,000,000 Beta Finance, Inc., 5.000%
- 5.200%, 1/20/2000 -
5/10/2000 21,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
CORPORATE NOTES-continued
FINANCE - EQUIPMENT-0.4%
$ 969,304 Heller Equipment Asset
Receivables Trust 1999-1,
Class A1, 4.947%,
5/13/2000 $ 969,304
673,565 Newcourt Equipment Trust
Securities 1998-1, Class
A1, 5.007%, 11/20/1999 673,643
TOTAL 1,642,947
INSURANCE-0.0%
226,178 WFS Financial 1998-C Owner
Trust, Class A1, (FSA INS),
5.395%, 11/20/1999 226,178
TOTAL CORPORATE NOTES 22,869,125
LOAN PARTICIPATION-11.2%
BROKERAGE-1.2%
5,000,000 Goldman Sachs Group LP,
4.951%, 6/1/1999 5,000,000
ELECTRICAL EQUIPMENT-0.8%
3,100,000 Mt. Vernon Phenol Plant
Partnership, (Guaranteed
by General Electric Co.),
5.050%, 5/17/2000 3,100,000
FINANCE - AUTOMOTIVE-2.5%
10,000,000 General Motors Acceptance
Corp., Mortgage of PA,
(Guaranteed by General
Motors Acceptance Corp.),
4.950%, 6/1/1999 10,000,000
INSURANCE-6.7%
20,200,000 Marsh & McLennan Cos.,
Inc., 4.960%, 7/23/1999 20,200,000
7,000,000 Aspen Funding Corp., (MBIA
INS), 4.845%, 6/4/1999 6,997,188
TOTAL 27,197,188
TOTAL LOAN PARTICIPATION 45,297,188
NOTES - VARIABLE-23.5% 3
BANKING-12.9%
10,000,000 Bankers Trust Co., New
York, 4.950%, 6/1/1999 9,999,944
645,000 Dave White Chevrolet,
Inc., Series 1996,
(Huntington National Bank,
Columbus, OH LOC), 4.990%,
6/3/1999 645,000
24,750,138 2 Liquid Asset Backed
Securities Trust, Series
1996-3, (Westdeutsche
Landesbank Girozentrale
Swap Agreement), 4.923%,
6/15/1999 24,750,138
7,224,946 2 Rabobank Optional
Redemption Trust, Series
1997-101, 5.000%,
7/17/1999 7,224,946
8,000,000 Societe Generale, Paris,
4.953%, 6/1/1999 7,998,975
1,485,000 White Brothers Properties,
Series 1996, (Huntington
National Bank, Columbus,
OH LOC), 4.990%, 6/3/1999 1,485,000
TOTAL 52,104,003
FINANCE - RETAIL-0.5%
2,000,000 2 Bishop's Gate Residential
Mortgage Trust 1998-2,
Class A-1, 5.139%,
6/10/1999 2,000,000
INSURANCE-10.1%
2,000,000 GE Life and Annuity
Assurance Co., 5.110%,
9/1/1999 2,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
NOTES - VARIABLE-continued 3
INSURANCE-CONTINUED
$ 10,000,000 General American Life
Insurance Co., 5.120%,
6/21/1999 $ 10,000,000
8,976,793 2 Liquid Asset Backed
Securities Trust, Series
1997-3 Senior Notes,
(Guaranteed by AMBAC
Financial Group, Inc.),
4.970%, 6/28/1999 8,976,793
20,000,000 Monumental Life Insurance
Co., 5.130%, 6/1/1999 20,000,000
TOTAL 40,976,793
TOTAL NOTES - VARIABLE 95,080,796
REPURCHASE AGREEMENTS-
12.3% 4
18,000,000 ABN AMRO, Inc., 4.910%,
dated 5/28/1999, due
6/1/1999 18,000,000
22,000,000 Nationsbanc Montgomery
Securities, Inc., 4.900%,
dated 5/28/1999, due
6/1/1999 22,000,000
10,000,000 Salomon Brothers, Inc.,
4.900%, dated 5/28/1999,
due 6/1/1999 10,000,000
TOTAL REPURCHASE
AGREEMENTS 50,000,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 405,466,948
</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 May 31, 1999, these securities amounted to
$42,951,877 which represents 10.61% of total net assets.
3 Floating rate note with current rate and next reset date shown.
4 The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($404,939,967) at May 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC -American Municipal Bond Assurance Corporation FSA -Financial Security
Assurance INS -Insured LOC -Letter of Credit LP -Limited Partnership MBIA
- -Municipal Bond Investors Assurance PLC -Public Limited Company
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
MAY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 50,000,000
Investments in securities 355,466,948
Total investments in
securities, at amortized
cost and value $ 405,466,948
Income receivable 1,229,047
TOTAL ASSETS 406,695,995
LIABILITIES:
Income distribution
payable 1,649,018
Payable to Bank 94,962
Accrued expenses 12,048
TOTAL LIABILITIES 1,756,028
Net assets for 404,939,967
shares outstanding $ 404,939,967
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$404,939,967 / 404,939,967
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 11,567,888
EXPENSES:
Investment advisory fee $ 907,598
Administrative personnel
and services fee 171,082
Custodian fees 18,514
Transfer and dividend
disbursing agent fees and
expenses 13,744
Directors'/Trustees' fees 7,082
Auditing fees 7,518
Legal fees 4,007
Portfolio accounting fees 41,515
Shareholder services fee 567,249
Share registration costs 16,938
Printing and postage 7,443
Insurance premiums 17,090
Miscellaneous 4,545
TOTAL EXPENSES 1,784,325
WAIVERS:
Waiver of investment
advisory fee $ (292,540)
Waiver of shareholder
services fee (453,799)
TOTAL WAIVERS (746,339)
Net expenses 1,037,986
Net investment income $ 10,529,902
</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
MAY 31, NOVEMBER 30,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income $ 10,529,902 $ 27,388,081
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (10,529,902) (27,388,081)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 1,026,366,501 2,348,710,920
Net asset value of shares
issued to shareholders in
payment of
distributions declared 1,940,060 6,627,670
Cost of shares redeemed (1,088,500,489) (2,384,603,857)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (60,193,928) (29,265,267)
Change in net assets (60,193,928) (29,265,267)
NET ASSETS:
Beginning of period 465,133,895 494,399,162
End of period $ 404,939,967 $ 465,133,895
</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)
MAY 31, YEAR ENDED NOVEMBER 30,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.06 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.06) (0.04)
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN 1 2.34% 5.33% 5.27% 5.18% 5.73% 3.78%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.46% 2 0.45% 0.45% 0.45% 0.46% 0.46%
Net investment income 4.64% 2 5.22% 5.16% 5.04% 5.59% 3.72%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $404,940 $465,134 $494,399 $626,764 $729,144 $773,260
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
MAY 31, 1999 (UNAUDITED)
ORGANIZATION
Federated Master Trust (the "Trust") 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 Trust became a portfolio of the Money
Market Obligations Trust. Money Market Obligations Trust consists of 13
portfolios. The financial statements included herein are only those of the
Trust. 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 Trust is current income consistent with stability of principal.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Trust 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 Trust 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 Trust 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 Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Trust'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 Trust 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 Trust'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.
RESTRICTED SECURITIES
Restricted securities are securities that may only be resold upon registration
under federal securities laws or in transactions exempt from such registration.
Many restricted securities may be resold in the secondary market in transactions
exempt from registration. In some cases, the restricted securities may be resold
without registration upon exercise of a demand feature. Such restricted
securities may be determined to be liquid under criteria established by the
Trustees. The Trust will not incur any registration costs upon such resales.
Restricted securities are valued at amortized cost in accordance with Rule 2a-7
under the Act.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Trust may engage in when-issued or delayed delivery transactions. The Trust
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 May
31, 1999, capital paid-in aggregated $404,939,967.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOVEMBER 30,
1999 1998
<S> <C> <C>
Shares sold 1,026,366,501 2,348,710,920
Shares issued to
shareholders in payment of
distributions declared 1,940,060 6,627,670
Shares redeemed (1,088,500,489) (2,384,603,857)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (60,193,928) (29,265,267)
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40% of the Trust's average daily net assets. The Adviser will waive, to the
extent of its advisory fee, the amount, if any, by which the Trust's aggregate
annual operating expenses exceed 0.45% of average daily net assets of the Trust.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Trust 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 Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust 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 Trust. 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 Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust'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 Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust'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 Trust'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 Trust.
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
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 trust'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
Federated Master Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
MAY 31, 1999
[Graphic]
Federated
Federated Master Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N740
8070106 (7/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Trust for
Short-Term U.S. Government Securities, which covers the six-month period from
December 1, 1998 through May 31, 1999. Effective April 26, 1999, the Trust
became a portfolio of Money Market Obligations Trust. The report contains
commentary by the Trust's portfolio manager, followed by a complete listing of
the Trust's investments on the last day of the reporting period, and its
financial statements.
The Trust pursues daily income, which may be partially exempt from state and
local taxes, 1 and offers the additional advantages of daily liquidity and
stability of principal.2 The Trust's portfolio consists of U.S. Treasury and
government agency obligations and repurchase agreements backed by these
obligations.
Dividends paid monthly to shareholders over the reporting period totaled $0.02
per share. At the end of the reporting period, the Trust's net assets totaled
$572.4 million.
Thank you for selecting Trust for Short-Term U.S. Government Securities as a
daily cash investment. We welcome your comments and suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
July 15, 1999
1 Shareholders should consult a tax adviser.
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 trust.
Investment Review
Trust for Short-Term U.S. Government Securities invests in U.S. government
agency obligations, such as issues of the Federal National Mortgage Association,
Student Loan Marketing Association, Federal Farm Credit System, Federal Home
Loan Bank System, and Federal Home Loan Mortgage Corp., and may maintain a small
position in U.S. Treasury obligations for liquidity purposes. The trust also
invests in repurchase agreements that have these securities as collateral.
Over the six-month reporting period ended May 31, 1999, the Federal Reserve
Board (the "Fed") did not change monetary policy. The reporting period was
characterized by shifts in market sentiment regarding the direction and
magnitude of the next adjustment in monetary policy. The reporting period opened
in the midst of relative market calm as the 75 basis points in easing steps
taken by the Fed from late September to mid-November 1998 were successful in
relieving the credit and liquidity strains that had gripped the financial
markets. However, lingering concerns over the health of various foreign
economies kept alive expectations for future easing from the Fed. As these
trouble spots remained relatively stable, attention returned to domestic
economic fundamentals. Propelled by relentless consumer demand and a strong
housing sector, gross domestic product expanded at a powerful 6.00% in the
fourth quarter of 1998, and entered 1999 with a considerable head of steam.
Although growth slowed to around 4.00% in the first quarter, this still
energetic pace exceeded what has traditionally been considered the
non-inflationary potential of the economy. Productivity gains kept inflationary
pressures remarkably restrained in the face of this growth. The markets came to
acknowledge, however, that the Fed could not ignore such a robust economic
fundamental picture indefinitely, and fears that a near-term tightening might
occur surfaced by late February. Those anxieties were premature, as the absence
of price pressures provided the Fed with more breathing room for a time. By the
end of the reporting period in May, a near-term tightening to pre-empt inflation
seemed inevitable.
Movements in short-term interest rates reflected the shifting market sentiment.
The yield on the one-year agency discount note traded at 4.90% in early
December, then declined to 4.70% in the weeks that followed as the bias at the
Fed remained toward additional easings. In mid January, short-term interest
rates began to rise gradually as the market's focus returned to the domestic
economy, and the yield on this security rose to 5.10% by late February as near
term tightening fears seized the market. As these concerns subsided, the yield
fell back to 4.90%, then climbed steadily once more throughout May to reach
5.30% by the end of the month.
Recently, the trust's average maturity has been managed within a 40 to 50 day
target range. We moved the average maturity to the upper end of that range in
late February as near-term tightening fears grew. Since that time, the trust's
average maturity has drifted lower as legitimate evidence has mounted that the
Fed may indeed tighten monetary policy at the end of June in a pre-emptive move
against inflationary pressures.
Last Meeting of Shareholders
A Special Meeting of shareholders of Trust for Short-Term U.S. Government
Securities was held on March 22, 1999. On January 21, 1999, the record date for
shareholder voting at the meeting, there were 612,143,333 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:
<TABLE>
<CAPTION>
WITHHELD
AUTHORITY
FOR TO VOTE
<S> <C> <C>
Thomas G. Bigley 393,557,295 19,258
John T. Conroy, Jr. 393,576,553 0
Nicholas P. Constantakis 393,576,553 0
John F. Cunningham 393,576,553 0
J. Christopher Donahue 393,576,553 0
Peter E. Madden 393,576,553 0
Charles F. Mansfield, Jr. 393,576,553 0
John E. Murray, Jr. 393,576,553 0
John S. Walsh 393,576,553 0
</TABLE>
The following Trustees of the trust continued their terms as Trustees: John
F. Donahue, Lawrence D. Ellis, M.D. and Marjorie P. Smuts.
AGENDA ITEM 2
To ratify the selection of Deloitte & Touche LLP as the trust's independent
auditors:
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
393,144,374 432,179 0
</TABLE>
AGENDA ITEM 3
To make changes to the trust's fundamental investment policies:
(a) To approve making non-fundamental, and amending, the trust's fundamental
investment policy regarding maturity of money market instruments:
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
370,063,444 4,374,291 19,135,275
</TABLE>
(b) To approve amending the trust's fundamental investment policy regarding
pledging securities to permit the trust to pledge assets to secure permitted
borrowings:
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
351,218,748 22,381,022 19,973,241
</TABLE>
AGENDA ITEM 4
To approve a clarifying amendment to the trust's Investment Advisory Agreement
to exclude Rule 12b-1 fees and shareholder service fees from the expense cap:
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
340,251,019 40,717,036 12,608,497
</TABLE>
AGENDA ITEM 5
To approve an amendment and restatement to the trust's Declaration of Trust to
require the approval by a "1940 Act" majority of shareholders in the event of
the sale or conveyance of the assets of the trust to another trust or
corporation:
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
368,495,659 9,961 25,067,390
</TABLE>
AGENDA ITEM 6
To approve a proposed Agreement and Plan of Reorganization between the trust and
Money Market Obligations Trust, on behalf of its series, Trust for Short-Term
U.S. Government Securities (the "New Fund"), whereby the New Fund would acquire
all of the assets of the trust in exchange for shares of the New Fund to be
distributed pro rata by the trust to its shareholders in complete liquidation
and termination of the trust:
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
368,479,390 9,961 25,083,659
</TABLE>
Portfolio of Investments
MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
GOVERNMENT AGENCIES-64.0%
$ 10,400,000 1 Federal Farm Credit System
Discount Notes, 4.700% -
5.280%, 7/7/1999 -
8/16/1999 $ 10,317,699
23,000,000 2 Federal Farm Credit System Floating Rate Notes, 4.700% -
4.780%, 6/1/1999 -
6/17/1999 22,999,747
81,000,000 2 Federal Home Loan Bank
System Floating Rate
Notes, 4.775% - 5.150%,
6/1/1999 - 8/26/1999 80,985,490
31,500,000 Federal Home Loan Bank System Notes, 4.790% - 5.540%, 7/6/1999
-
4/20/2000 31,488,898
85,000,000 1 Federal Home Loan Mortgage
Corp. Discount Notes,
4.700% - 4.800%, 6/10/1999
- 8/10/1999 84,673,974
17,000,000 2 Federal Home Loan Mortgage
Corp. Floating Rate Notes,
4.705% - 4.800%, 6/17/1999
- 8/17/1999 16,990,394
44,595,000 1 Federal National Mortgage
Association Discount
Notes, 4.400% - 4.780%,
6/10/1999 - 1/24/2000 44,263,868
19,000,000 2 Federal National Mortgage
Association Floating Rate
Notes, 4.715% - 4.785%,
6/15/1999 - 8/10/1999 18,990,324
19,500,000 Federal National Mortgage Association Notes, 4.780% - 5.180%,
11/30/1999 -
5/5/2000 19,486,799
33,000,000 2 Student Loan Marketing
Association Floating Rate
Notes, 4.820% - 5.450%,
6/1/1999 - 6/2/1999 32,991,502
3,500,000 Student Loan Marketing
Association Note, 5.583%,
8/11/1999 3,499,727
TOTAL GOVERNMENT AGENCIES 366,688,422
REPURCHASE AGREEMENTS-
36.0% 3
15,000,000 Bankers Trust Co., New
York, 4.900%, dated
5/28/1999, due 6/1/1999 15,000,000
6,000,000 4 Credit Suisse First
Boston, Inc., 4.780%,
dated 4/20/1999, due
7/19/1999 6,000,000
17,000,000 4 Credit Suisse First
Boston, Inc., 4.780%,
dated 4/28/1999, due
7/27/1999 17,000,000
3,800,000 Deutsche Bank Government
Securities, Inc., 4.820%,
dated 5/28/1999, due
6/1/1999 3,800,000
16,000,000 4 Lehman Brothers, Inc.,
4.790%, dated 4/12/1999,
due 7/12/1999 16,000,000
15,000,000 4 Morgan Stanley Group,
Inc., 4.810%, dated
5/10/1999, due 8/9/1999 15,000,000
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENTS-
continued 3
$ 8,000,000 4 Nesbitt Burns, Inc.,
4.790%, dated 4/14/1999,
due 7/13/1999 $ 8,000,000
105,000,000 PaineWebber Group, Inc.,
4.900%, dated 5/28/1999,
due 6/1/1999 105,000,000
20,000,000 Prudential Securities,
Inc., 4.920%, dated
5/28/1999, due 6/1/1999 20,000,000
TOTAL REPURCHASE
AGREEMENTS 205,800,000
TOTAL INVESTMENTS (AT
AMORTIZED COST) 5 $ 572,488,422
</TABLE>
1 The issues show the rate of discount at time of purchase.
2 Denotes variable rate securities which show current rate and next demand date.
3 The repurchase agreements are fully collateralized by U.S. treasury and/or
government 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
($572,433,132) at May 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 205,800,000
Investments in securities 366,688,422
Total investments in
securities, at amortized
cost and value $ 572,488,422
Cash 74,058
Income receivable 2,147,672
Receivable for shares sold 787
TOTAL ASSETS 574,710,939
LIABILITIES:
Income distribution
payable 2,218,515
Accrued expenses 59,292
TOTAL LIABILITIES 2,277,807
Net assets for 572,433,132
shares outstanding 572,433,132
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$572,433,132 / 572,433,132
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 14,751,192
EXPENSES:
Investment advisory fee $ 1,185,724
Administrative personnel
and services fee 223,509
Custodian fees 19,265
Transfer and dividend
disbursing agent fees and
expenses 3,909
Directors'/Trustees' fees 6,985
Auditing fees 7,480
Legal fees 3,241
Portfolio accounting fees 45,938
Shareholder services fee 741,078
Share registration costs 9,922
Printing and postage 5,111
Insurance premiums 2,167
Miscellaneous 4,688
TOTAL EXPENSES 2,259,017
WAIVERS:
Waiver of investment
advisory fee $ (322,293)
Waiver of shareholder
services fee (592,862)
TOTAL WAIVERS (915,155)
Net expenses 1,343,862
Net investment income $ 13,407,330
</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
MAY 31, NOVEMBER 30,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 13,407,330 $ 33,320,259
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (13,407,330) (33,320,259)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 1,029,554,846 2,254,528,698
Net asset value of shares
issued to shareholders in
payment of
distributions declared 2,162,695 4,826,995
Cost of shares redeemed (1,056,969,228) (2,337,658,641)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (25,251,687) (78,302,948)
Change in net assets (25,251,687) (78,302,948)
NET ASSETS:
Beginning of period 597,684,819 675,987,767
End of period $ 572,433,132 $ 597,684,819
</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)
MAY 31, YEAR ENDED NOVEMBER 30,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATION:
Net investment income 0.02 0.05 0.05 0.05 0.06 0.04
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.02) (0.05) (0.05) (0.05) (0.06) (0.04)
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN 1 2.28% 5.20% 5.20% 5.09% 5.63% 3.70%
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.45%2 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income 4.52%2 5.09% 5.07% 4.98% 5.47% 3.55%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted)$572,433 $597,685 $675,988 $844,108 $952,757 $1,184,269
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
MAY 31, 1999 (UNAUDITED)
ORGANIZATION
Trust for Short-Term U.S. Government Securities (the "Trust") 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 Trust
became a portfolio of the Money Market Obligations Trust. Money Market
Obligations Trust consists of 13 portfolios. The financial statements included
herein are only those of the Trust. 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 Trust is high current income consistent
with stability of principal and liquidity.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Trust 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 Trust 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 Trust 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 Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Trust'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 Trust 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 Trust'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 Trust may engage in when-issued or delayed delivery transactions. The Trust
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 May
31, 1999, capital paid-in aggregated $572,433,132. Transactions in shares were
as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOVEMBER 30,
1999 1998
<S> <C> <C>
Shares sold 1,029,554,846 2,254,528,698
Shares issued to
shareholders in payment of
distributions declared 2,162,695 4,826,995
Shares redeemed (1,056,969,228) (2,337,658,641)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (25,251,687) (78,302,948)
</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 Trust's average daily net assets. The Adviser will waive, to the
extent of its advisory fee, the amount, if any, by which the Trust's aggregate
annual operating expenses exceed 0.45% of average daily net assets of the Trust.
ADMINISTRATIVE FEE
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Trust 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 Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust for the period. The fee paid is to obtain 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 Trust. 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 Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust'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 Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust'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 Trust'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 Trust.
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
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 trust'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
Trust for Short-Term U.S. Government Securities
SEMI-ANNUAL REPORT TO SHAREHOLDERS
MAY 31, 1999
[Graphic]
Federated
Trust for Short-Term U.S. Government Securities
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N781
8063001 (7/99)
[Graphic]
SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Trust For
Government Cash Reserves, which covers the six-month period from December 1,
1998 through May 31, 1999. Effective April 26, 1999 the Trust became a portfolio
of Money Market Obligations Trust. The report contains commentary by the Trust's
portfolio manager, followed by a complete listing of the Trust's investments on
the last day of the reporting period, and its financial statements.
The Trust pursues daily income, which may be exempt from state and local taxes,
1 and offers the additional advantages of daily liquidity and stability of
principal.2 The Trust's portfolio consists of U.S. Treasury and government
agency obligations. Because the Trust does not invest in repurchase agreements,
it is suitable for tax-sensitive investors in states that tax the income on
these securities.
Dividends paid monthly to shareholders during the reporting period totaled $0.02
per share. At the end of the reporting period, the Trust's net assets stood at
$462.9 million.
Thank you for selecting Trust for Government Cash Reserves as a daily cash
investment. We welcome your comments and suggestions.
Sincerely,
[Graphic]
J. Christopher Donahue
President
July 15, 1999
1 Shareholders should consult a tax adviser.
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 Trust.
Investment Review
Trust for Government Cash Reserves, which is rated AAAm 1 by Standard & Poor's
("S&P") and Aaa2 by Moody's Investors Services, Inc., invests exclusively in
U.S. Treasury and government agency obligations, such as issues of the Student
Loan Marketing Association, Federal Farm Credit System, Federal Home Loan Bank
System, and Tennessee Valley Authority. The Trust does not invest in repurchase
agreements, and is managed to provide distributions which are exempt from state
and local taxes.
Over the six-month reporting period ended May 31, 1999, the Federal Reserve
Board (the "Fed") did not change monetary policy. The reporting period was
characterized by shifts in market sentiment regarding the direction and
magnitude of the next adjustment in monetary policy. The reporting period opened
in the midst of relative market calm as the 75 basis points in easing steps
taken by the Fed from late September to mid- November 1998 were successful in
relieving the credit and liquidity strains that had gripped the financial
markets. However, lingering concerns over the health of various foreign
economies kept alive expectations for future easing from the Fed. As these
trouble spots remained relatively stable, attention then returned to domestic
economic fundamentals. Propelled by relentless consumer demand and a strong
housing sector, gross domestic product expanded at a powerful 6.00% in the
fourth quarter of 1998, and entered 1999 with a considerable head of steam.
Although growth slowed to around 4.00% in the first quarter of 1999, this still
energetic pace exceeded what has traditionally been considered the
non-inflationary potential of the economy. Productivity gains kept inflationary
pressures remarkably restrained in the face of this growth. The markets came to
acknowledge, however, that the Fed could not ignore such a robust economic
fundamental picture indefinitely, and fears that a near-term tightening might
occur surfaced by late February. Those anxieties were premature, as the absence
of price pressures provided the Fed with more breathing room for a time. By the
end of the reporting period in May, a near-term tightening to preempt inflation
seemed inevitable.
Movements in short-term interest rates reflected the shifting market sentiment.
The yield on the one-year agency discount note traded at 4.90% in early
December, then declined to 4.70% in the weeks that followed as the bias at the
Fed remained toward additional easings. In mid January, short-term interest
rates began to rise gradually as the market's focus returned to the domestic
economy, and the yield on this security rose to 5.10% by late February as near
term tightening fears seized the market. As these concerns subsided, the yield
fell back to 4.90%, then climbed steadily once more throughout May to reach
5.30% by the end of the month.
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.
2 Money market funds rated Aaa by Moody's Investors Services, Inc. are judged to
be of an investment quality similar to Aaa-rated fixed income obligations, that
is, they are judged to be of the best quality. These ratings do not remove
market risks and are subject to change.
Recently, the trust's average maturity has been managed within a 40 to 50 day
target range. We moved the average maturity to the upper end of that range in
late February as near-term tightening fears grew. Since that time, the trust's
average maturity has drifted lower as legitimate evidence has mounted that the
Fed may indeed tighten monetary policy at the end of June in a preemptive move
against inflationary pressures.
Over the reporting period the trust's portfolio tended to be barbelled in
structure, and continued to pursue a competitive yield. Close to one-third of
the trust was invested in U.S. government agency floating rate notes, including
a master note agreement designed to facilitate portfolio liquidity, which in
addition to short-term agency discount notes, comprised the short-end of the
barbell. The trust combined this short position with Treasury and agency
securities with longer maturities of six to twelve months.
Last Meeting of Shareholders
A Special Meeting of shareholders of Trust for Government Cash Reserves was held
on March 22, 1999. On January 21, 1999, the record date for shareholder voting
at the meeting, there were 531,053,829 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>
SHARES VOTED SHARES
AFFIRMATIVELY WITHHELD
<S> <C> <C>
Thomas G. Bigley 366,288,718 0
John T. Conroy, Jr. 366,288,718 0
John F. Cunningham 366,288,718 0
Peter E. Madden 366,288,718 0
Charles F. Mansfield, Jr. 366,288,718 0
John E. Murray, Jr., J.D., S.J.D. 366,288,718 0
John S. Walsh 366,288,718 0
</TABLE>
1 The following Trustees of the Trust continued their terms as Trustees:
John. F. Donahue, Lawrence D. Ellis, M.D. and Marjorie P. Smuts.
AGENDA ITEM 2
To ratify the selection of Arthur Andersen LLP as the trust's independent
auditors:
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
366,288,718 0 0
</TABLE>
AGENDA ITEM 3
To approve a proposed Agreement and Plan of Reorganization between the trust and
Money Market Obligations Trust, on behalf of its series, Trust for Government
Cash Reserves (the "New Fund"), whereby the New Fund would acquire all of the
assets of the trust in exchange for shares of the New Fund to be distributed pro
rata by the trust to its shareholders in complete liquidation and termination of
the trust:
<TABLE>
<CAPTION>
SHARES VOTED SHARES VOTED SHARES
AFFIRMATIVELY NEGATIVELY ABSTAINING
<S> <C> <C>
366,132,371 0 156,346
</TABLE>
Portfolio of Investments
MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
GOVERNMENT AGENCIES-99.9%
$ 23,500,000 1 Federal Farm Credit System
Discount Notes, 4.580% -
4.750%,
6/1/1999 - 8/27/1999 $ 23,358,057
16,000,000 2 Federal Farm Credit System
Floating Rate Notes,
4.705% - 4.780%, 6/24/1999 15,998,973
10,000,000 Federal Farm Credit System
Notes, 5.000% - 5.550%,
6/1/1999 - 4/3/2000 9,997,048
183,045,000 1 Federal Home Loan Bank
System Discount Notes,
4.653% - 4.800%,
6/16/1999 - 8/13/1999 182,051,621
74,500,000 2 Federal Home Loan Bank
System Floating Rate
Notes, 4.721% - 5.150%,
6/1/1999 - 8/26/1999 74,492,615
22,810,000 Federal Home Loan Bank System Notes, 4.790% - 5.540%,
7/13/1999 -
4/28/2000 22,801,496
35,000,000 2 Student Loan Marketing
Association Floating Rate
Notes, 4.726% - 5.450%,
6/1/1999 - 6/2/1999 34,992,886
18,000,000 2 Student Loan Marketing
Association Floating Rate
Master Note,
4.921%, 6/1/1999 18,000,000
11,000,000 Student Loan Marketing
Association Notes, 4.930%
- 5.890%,
8/11/1999 - 2/8/2000 11,017,786
70,000,000 1 Tennessee Valley Authority
Discount Notes, 4.660% -
4.700%,
6/2/1999 - 6/16/1999 69,918,862
TOTAL GOVERNMENT AGENCIES 462,629,344
TOTAL INVESTMENTS (AT
AMORTIZED COST) 3 $ 462,629,344
</TABLE>
1 The issues show the rate of discount at time of purchase.
2 Denotes variable rate securities which show current rate and next demand date.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($462,942,548) at May 31, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at amortized
cost and value $ 462,629,344
Cash 575,762
Income receivable 1,524,059
TOTAL ASSETS 464,729,165
LIABILITIES:
Income distribution
payable $ 1,762,108
Accrued expenses 24,509
TOTAL LIABILITIES 1,786,617
Net assets for 462,942,548
shares outstanding $ 462,942,548
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$462,942,548 / 462,942,548
shares outstanding $1.00
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 12,929,804
EXPENSES:
Investment advisory fee $ 1,042,837
Administrative personnel
and services fee 196,575
Custodian fees 16,086
Transfer and dividend
disbursing agent fees and
expenses 6,056
Directors'/Trustees' fees 6,625
Auditing fees 6,485
Legal fees 2,689
Portfolio accounting fees 49,158
Shareholder services fee 651,773
Share registration costs 9,076
Printing and postage 3,875
Insurance premiums 1,772
Miscellaneous 6,867
TOTAL EXPENSES 1,999,874
WAIVERS:
Waiver of investment
advisory fee $ (283,335)
Waiver of shareholder
services fee (521,418)
TOTAL WAIVERS (804,753)
Net expenses 1,195,121
Net investment income $ 11,734,683
</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
MAY 31, NOVEMBER 30,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 11,734,683 $ 27,890,235
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (11,734,683) (27,890,235)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 730,750,372 1,501,544,374
Net asset value of shares
issued to shareholders in
payment of
distributions declared 1,376,641 3,374,747
Cost of shares redeemed (804,190,981) (1,532,616,817)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS (72,063,968) (27,697,696)
Change in net assets (72,063,968) (27,697,696)
NET ASSETS:
Beginning of period 535,006,516 562,704,212
End of period $ 462,942,548 $ 535,006,516
</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)
MAY 31, YEAR ENDED NOVEMBER 30,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN 1 2.27% 5.16% 5.15% 5.08% 5.60% 3.74%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.77% 3 0.77% 0.77% 0.78% 0.77% 0.55%
Net investment income 2 4.20% 3 4.75% 4.71% 4.67% 5.13% 3.58%
Expenses (after waivers) 0.46% 3 0.46% 0.46% 0.46% 0.45% 0.45%
Net investment income (after waivers) 4.50% 3 5.06% 5.02% 4.99% 5.45% 3.68%
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $462,943 $535,007 $562,704 $599,550 $739,553 $978,691
</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
MAY 31, 1999 (UNAUDITED)
ORGANIZATION
Trust for Government Cash Reserves (the "Trust") 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 Trust became a
portfolio of the Money Market Obligations Trust. Money Market Obligations Trust
consists of 13 portfolios. The financial statements included herein are only
those of the Trust. 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 Trust is high current income consistent with
stability of principal and liquidity.
SIGNIFICANT ACCOUNTING POLICIES.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS
The Trust 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 Trust'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 Trust may engage in when-issued or delayed delivery transactions. The Trust
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
trade date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
OTHER
Investment transactions are accounted for on the trade date.
SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
an unlimited number of full and fractional shares of beneficial interest
(without par value). At May 31,1999, capital paid-in aggregated $462,942,548.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOVEMBER 30,
1999 1998
<S> <C> <C>
Shares sold 730,750,372 1,501,544,374
Shares issued to
shareholders in payment of
distributions declared 1,376,641 3,374,747
Shares redeemed (804,190,981) (1,532,616,817)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS (72,063,968) (27,697,696)
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40% of the Trust'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 Trust 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 Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust 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 Trust. 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 Trust's accounting records for which it receives a fee. The
fee is based on the level of the Trust'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 Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust'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 Trust.
SUBSEQUENT EVENT
Change of Independent Auditors:
On May 19, 1999, the Trust's Board of Trustees, upon the recommendation of the
Audit Committee of the Board of Trustees, dismissed Arthur Andersen LLP ("AA")
as the Trust's independent auditors. During the six-month reporting period ended
May 31, 1999 (the "Period"): (i) AA did not issue any report on the Trust's
financial statements; (ii) 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 (iii) there were no "reportable events" of the kind described in
Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934,
as amended.
The Trust, by action of its Board of Trustees, engaged Deloitte & Touche LLP
("D&T") as the independent auditors for purposes of auditing the Trust's
financial statements for the fiscal year ending November 30, 1999. During the
Period, neither the Trust, nor anyone on the Trust's behalf has consulted D&T on
items which (i) concerned the application of the 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) or reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
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
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 trust'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
Trust for Government Cash Reserves
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
MAY 31, 1999
[Graphic]
Federated
Trust for Government Cash Reserves
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 60934N773
0062905 (7/99)
[Graphic]
